The Loewen Group Memo To: Ray Loewen From: Dave Bassel cc: Professor Date: Re: SCI offer Dear Ray‚ Thank you for the opportunity to share my analysis with you regarding this most important topic. After giving careful consideration to the SCI offer and analyzing the bid from the view point of all Loewen stakeholders‚ I believe a rejection of the SCI offer is clearly warranted. We need to consider the long-term implications this would have on our stakeholders. Would they be better or worse off
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The Loewen Group Inc. (Abridged) Case Summary After decades’ dramatically expansion‚ the Loewen Group Inc‚ the second largest death care company in North America‚ went downhill abruptly in 1998. Compared with those in 1997‚ its net income decreased from $42.7 million to $599 million in deficit‚ meanwhile‚ its long-term debt due in one year increased by more than 2000%‚ from $43.5 million to $874.1 million‚ and total liabilities exceeded the total assets by $326.8 million (in US dollar). Because
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The Loewen Group Inc. Case Report – Session 3 Group 6 Executive Summary This report provides a qualitative analysis of the Loewen case study‚ starting from the excessive debt policy used in its expansion and ending with huge debt ratios and bankruptcy. The analysis includes the effect of the company’s policy and the financial distress it caused and results of such a financial condition. Method of Analysis: For the analysis we have used the historical financial data of the company‚ the
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Loewen Group Over the last two decades Loewen Group‚ a death care provider‚ had been growing by acquiring small independent funeral homes and cemeteries in densely populated areas but in recent years the company had also acquired several large established funeral chains. Over the last five years alone‚ Loewen had embarked on an aggressive growth strategy which accounted for consolidated revenues’ growth of nearly 30% a year on average from $303 billion to over $1.1 billion. This growth through
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The Loewen Group Case Service Corporation International (SCI) has made an offer to purchase Loewen Group. The offer consists of paying $43 per share in a tax-free transaction. The total number of common shares at year end in 1995 (in thousand) are 48‚168. The cost of purchasing Loewen would be $43 x 48‚168 (in thousand) = $2‚071‚224‚000. The total amount of equity and debt for Loewen Group is approximately $3B. This includes the total non-current liabilities at approximately $1.15B. What
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Paulo Freire In the article “The ‘Banking’ Concept of Education” Freire talks about how education is no longer a pursuit of knowledge and authentic discovery‚ but a system that is used dominate human beings. Freire is a radical educational writer who promotes a classroom where teachers and students are equalized. In the essay‚ Freire criticizes the educational hierarchy and uses the allegory of a bank to describe the modern education system. A bank‚ as we all know‚ stores money‚ or in Freire’s case
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The effects of social class in America James W. Loewen‚ essay “The Land of Opportunity‚” discusses how many times Americans don’t know about social classes and the effects they have on society. Loewen argues that the common American people aren’t given equal opportunity in this day in age. He says that American history books have great influenced what we see about the class system because a great deal of history is often left out. James Loewen begins “The Land of Opportunity” by saying that teenagers
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Hung 1 Jocelyn Hung ENC_1102 Professor Rios 14 May‚ 2013 Introduction: Number Two In “Pedagogy of the Oppressed”‚ Paulo Freire presents two concepts of education‚ banking and problem-posing. Specifically‚ Freire argues that in banking‚ teachers assume students are passive‚ take all control‚ determine what will be learned‚ and “fill” students with pre-selected information. Problem-posing education allows people to develop their human natures fully because it depends on dialogue‚ recognizes
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Opportunities Threat of new entrants: The barriers to entry are high due to high fixed costs‚ lack of history in the local community‚ zoning regulation‚ and "not-in-my-back-yard" protests. Power of suppliers: Funeral consolidators such as Loewen group can put a great deal of pressure on suppliers to reduce prices. Power of buyers: The funeral home is usually the buyers first point of contact‚ therefore the funeral home has first chance at selling all related services and supplies.
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understand. Being able to step back and say “No Josh‚ that’s just glorified nonsense”‚ and then delete or change it is something that I probably wouldn’t have done before and that makes me proud. I want the reader to know that I completely agree with Freire‚ the education system is flawed. I don’t think that majority of teachers and students know it is‚ I think they have just been going with the flow for so long they just sort of except it for what it is. Everyone needs to “The ‘Banking’ Concepts of
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