Executive Summary In a desire to increase the company’s working capital for the company’s future financial investment in a plant modernization and expansion program‚ Beauregard Textile Company increased the price of its Triaxx-30 product to bring its profit margins up to that of their other products. In a sequential-move game theory Calhoun & Pritchard‚ Beauregard’s primary rival‚ did not raise its price even though its costs were assumed to be similar. As a result‚ Beauregard’s unit sales dropped
Premium Variable cost
Beauregard Textile Company Eugenio J. Miravete Relevant Market Infomation • Duopoly in the market of Triaxx-30: – Beauregard Textile Company (BTC). – Calhoun & Pritchard Inc. (CPI). • Pricing is final for each quarter (commitment) and normally BTC announce her price first. • BTC recently raised the price of T-30 from $3 to $4 to align this markup to other fabrics in her product line. • CPI held his price at $3. • CPI and BTC have similar costs. • CPI is in a tight financial situation. •
Premium Cost Costs Marginal cost
Economic Memo 3 Beauregard Textile Company Case 1) If Beauregard Textile Company dropped its price on T-30 from $4/yard to $3/yard‚ its profitability will increase‚ assuming Calhoun & Pritchard maintains its current pricing at $3/yard. The relevant costs for this analysis are Direct Labor‚ Material‚ Material Spoilage‚ and Direct Department expense. Other expenses are sunk costs and have been allocated to T 30 costs in the case data.. Some of these have been done by following accounting rules
Premium Cost Costs Aggregate demand
Beauregard Textile Company: When in 1990 Calloway and Clarence Beal raised the price of the Triaxx-30 was to reflect the same increase in the costs. This is good example of our global economic situation. Costs are rising therefore also the price at which products or services are sold have to keep up. A second purpose was to make money and the rights amount of funds for a long-term plan of expansion. What the firm did mainly wrong was they predicted a decrease in demand for the T-30 fabric
Premium Price Competition Pricing
Introduction Aurora Textile Company having over 100 years history has been producing cotton and synthetic/cotton blend yarns to textile industry consisting of U.S. and the international market. The majority of the company’s revenue came from the domestic market and revenue sources for Aurora consist of the hosiery market accounting for 0.43‚ the knitted-outwear market accounting for 0.35‚ the wovens market accounting for 0.13‚ and industrial and specialty products accounting for remaining 0.09
Premium International trade Cotton North American Free Trade Agreement
PART I Review & study of the past and present situations of the company Brief Historical Review 1901 John F. Queeny founds the original Monsanto. He used capital from a soft drink company to start Monsanto. 1920 Monsanto expanded into basic industrial chemicals like sulfuric acid. 1940 It became a leading manufacturer of plastics‚ including polystyrene‚ and synthetic fibers. 1970 Monsanto is the leading producer of Agent Orange for US Military operations in Vietnam. 1973 Monsanto began manufacturing
Premium Roundup
General Beauregard was a great general for the Confederacy. He was called the hero of Fort Sumter because he protected the fort when the Union was attacking the fort. General Beauregard also had a satisfying life. He went to one of the best colleges ever. If I was General Beauregard’s parents I would be very proud of him. General Beauregard had an exceptional early life. He was born on May 28th‚ 1818 in Saint Bernard‚ Louisiana. His parents were Hélène Judith de Reggio and Jacques Toutant-Beauregard
Premium United States American Civil War President of the United States
| | Type | Public (NSE‚ BSE) | Industry | Textiles | Founded | 1931 | Headquarters | Ahmedabad | Key people | Sanjay Lalbhai (CEO &MD) Arvind N. Lalbhai | Products | Denim‚ Knits‚ Khakhis | Revenue | Rs. 23.45 Billion | Net income | Loss Rs. 480 Million | Employees | 26000 | Website | www.arvindmills.com | Arvind Mills‚ the flagship company of the Lalbhai Group‚ is one of India’s leading composite manufacturer of textiles. Its headquarters is in Ahmedabad‚ Gujarat‚ India
Premium BSE Sensex Aditya Birla Group
Case 20: Aurora Textile Company Summary: In early 2003‚ Michael‚ CFO of Aurora Textile Company‚ is deciding whether or not to install a new machine called Zinser 351 in order to save the declined sales and increase its competitive force. In deciding whether or not to invest Zinser 351‚ it is important to get the NPV and the payback period. To get the NPV and the payback period‚ we firstly need to forecast the future cash flows that the new machine will generate. We found the ten-year NPV to be
Premium Cash flow Free cash flow Net present value
Case 20: Aurora Textile Company GROUP QUESTIONS Learning Objectives: 1. The basics of incremental-cash-flow analysis: identifying the cash flows relevant to a capital-investment decision 2. The construction of a side-by-side discounted-cash-flow analysis for a replacement decision 3. How to adapt the NPV decision rule to a troubled industry 4. The recognition that a reduced investment horizon is a significant consequence of financial distress 5. The importance of sensitivity analysis
Premium Investment