Case 22-4 Enager Industries‚ Inc Case Background Enager Industries‚ Inc. was a relatively young company whom manufactured and produced products/services within three divisions- Consumer Products‚ Industrial Products and Professional Services. Consumer Products‚ the oldest among the three divisions in Enager‚ designed‚ manufactured and marketed a line of houseware items. Industrial Products built one –of –a– kind machine tools to customer specifications. Professional Services‚ the newest among
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CASE ENAGER INDUSTRIES 1.0 Performance Measurement In today’s advanced and rapidly changing manufacturing environment‚ operational performance measures are taking on ever-greater importance. It is due to the influences of worldwide competition‚ just-in-time inventory management‚ and an emphasis on product quality and customer service. A multidimensional conceptualization of organizational performance related predominately to stakeholders‚ heterogeneous product market circumstances‚ and time.
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CASE CONTEXT: Enager Industries‚ Inc. was a relatively young company‚ which had grown rapidly to its 1993 sales level of over $222 million. (See Exhibits 1 and 2 for financial data for 1992 & 1993). The company has three divisions which were treated as independent companies because of their differing nature of activities. The corporate office of Enager consists only of few managers and staff. The function of the corporate unit is to coordinate the activities of the three divisions. One aspect
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Enager Industries‚ Inc. Accounting Consultant’s Report · Introduction Enager Industries‚ Inc. was a relatively young company that consisted of three divisions with distinct services and products. At the urging of CFO Henry Hubbard‚ Enager’s president‚ Carl Randall‚ had decided to begin treating each division as an investment center‚ so as to be able to relate each division’s profit to the assets the division used to generate it profits. · Analysis However‚ several issues
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However‚ the EVA is unfavorable under 15% return. Hubbard also states that a company like Enager should have a 12% return on EBIT. With this being said‚ McNeil’s proposal demonstrates a return of 13% (ROA = EBIT/Assets = $390‚000/$3‚000‚000)‚ and a favorable EVA will be provided under this return figure. If cost of capital can be had for under 13%‚ then McNeil’s proposal is a money maker for the Enager. In this case‚ McNeil’s proposal should not have been rejected. Additionally‚ an important goal of
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IntroductionEnager Industries Ltd (Enager) was a relatively young company whom manufactured and produced products/services within three divisions- Consumer Products‚ Industrial Products and Professional Services. Consumer Products‚ the oldest among the three divisions in Enager‚ designed‚ manufactured and marketed a line of houseware items. Industrial Products built one -of -a- kind machine tools to customer specifications. Professional Services‚ the newest among the three‚ provided several kinds
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Company Bio Enager Industries Inc. is a young company whose growth was profound up to 1993 when it amassed sales over $222 Million. This company is comprised of three main divisions that are all considered to be independent from one another. The first and oldest division of the company is the Consumer Products Division which designs‚ manufactures‚ and markets a variety of kitchenware. The Industrial Products Division focuses its efforts on creating machinery that is uniquely and specifically designed
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Jessica Ho 11-6-12 ACG 6425 Case 22-4 – Enager Industries‚ Inc. 1. McNeil’s project was rejected because it only provides a 13% return and does not meet the minimum return of 15% mandated by Henry Hubbard. Although the project does create some increase in earning per share‚ it does not provide the required return to keep up with the interest rates the corporation had been paying on the recent borrowings. 2. Randall and Hubbard seem to have disregarded that each of the divisions
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agerGroup # 7: Enager Industries Inc. FBTNW LLP – Management Consultants FATHIMA BILAL TARIQ NAVEED WAHEED FOLLOW BUSINESS TEACHER NELSON WAWERU Enager Industries Inc By: Tariq Mehmood Waheed Faizi Naveed Khalid Bilal Khanani Fathima Mohamed Background • • 3 Divisions: Consumer products (primarily for kitchen)‚ industrial products (one of a kind tools to customer specification‚ professional services (consulting services) consumer products - oldest • • professional services
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Case 11-4 Enager Industries‚ Inc. 1. Why was McNeil’s new product proposal rejected? Should it have been? Explain. |ROA CALCULATION FOR EACH NEW PRODUCT | | |Product A |Product B |Product C | |Unit Sales |100‚000 |75‚000
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