Case Analysis on RJR Nabisco Towards a course in Finance – FIN 620: Financial Administration Policies Submitted by Benjamin T. Schultz‚ Gail Olsen & Raj K Bhutani To Dr. Susan E. Moeller Eastern Michigan University‚ Ypsilanti‚ Michigan Table of Contents I Problem Statement 3 II Analysis of Economic and Industry Data 3 II.1 What is LBO? 3 II.2 RJR and Smoking 3 III Analysis of Alternative Solutions 4 III.1 Strengths of KKR: 4 III.2 Weaknesses of KKR 5
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board and gained more influence that Weigl Eventually gained control over the company His lavish spending etc.‚ produced mediocre business results 1981--Nabisco proposed a merger of two companies--1.9 billion deal Everyone thought Nabisco would be in charge (over Johnson) Johnson used his "political talent" to win over the Nabisco chairman Johnson eventually took over the company 1985--another call from RJ Reynolds company (tobacco) Soon merger transpired; 4.9 billion Johnson
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feedback of ValueJam as a basis for new set of corporate values * Palisimo was a true-blue IBMer who started as a salesman‚ he was deeply invested and passionate about the company’s success * Gerstner was an outsider‚ a former CEO of RJR Nabisco and an ex McKinsey consultant * To prove these new values were more than just window dressing Palmisano made changes immediately * He called the director of a major business unit‚ e business and charged her with identifying gaps between
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1. What is the total value of RJR Nabisco under (a) the pre-bid operating strategy? (b) the Management Group’s operating strategy? (c) KKR’s operating strategy? Approach We used the APV approach to value the company under each of the three scenarios. To do so‚ we needed to find the free cash flow‚ debt tax shield‚ and the discount rate‚ which is ra. This rate should be applicable across all three scenarios‚ because it is not dependent on the operations of the company. We then needed to value
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GAINESBORO MACHINE TOOLS CORPORATION CASE STUDY STUDY QUESTIONS FOR THURSDAY 21 AUGUST 2014 This is a fictious case based on real world situations. Although the primary focus is the dividend policy decision the situation of the company has been influenced by its corporate strategy and this case offers the opportunity to also consider the behavioural‚ management‚ and general business issues. The case questions are: As a background to the dividend policy decision briefly evaluate the corporate
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Harvard Business School 9-290-021 Rev. August 7‚ 1995 RJR Nabisco - 1990 In the spring of 1990‚ the firm of Kohlberg Kravis Roberts & Co. (KKR) was in negotiation with lenders regarding the refinancing of a $1.2 billion bridge loan due to be repaid in full by February‚ 1991. The bridge loan was part of the $24 billion financing of KKR’s leveraged buyout of RJR Nabisco in early 1989. Originally‚ KKR had planned to retire the loan with the proceeds of a $1.25 billion public offering of
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African Americans in a negative light Commercials from companies like Nabisco and Goodyear were highly offensive. For example‚ the Nabisco Company had a group of African Americans who were dressed like stereotypical natives‚ with war paint on their faces and bones in their noses. They were dancing around white hostages tied to stakes. The natives were supposed to be cannibals who will devour the white hostages if they were not given Nabisco snacks. A Goodyear commercial was even worse. A white
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Supervalu in 2010. Shurts came to Supervalu with 25 years of consumer packaged goods (CPG) experience. He joined Cadbury Schweppes Americas in 2006 as SVP of IT and was promoted to Global CIO in 2008. Shurts began his career with Nabisco‚ where he worked for 20 years. While at Nabisco‚ he held roles within the financial‚ marketing and sales analysis organizations before moving into the sales and marketing information systems area where he took on roles of increasing responsibility‚ including VP of Sales
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in the New York Stock Exchange that there were 3‚000 chains worldwide. In 1971 Kentucky Fried Chicken merged with Connecticut-based Heublein Inc.‚ a specialty food and alcoholic beverage Corporation. In 1982 R.J Reynolds Industries‚ Inc. (or RJR Nabisco‚ Inc. in the present) merged with Heublein Inc. So‚ Kentucky Fried Chicken was shared of R.J Reynolds Industries‚ Inc. In 1986 Kentucky Fried Chicken was a big change that Soft-Drink giant PepsiCo‚ Inc.‚
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KFC-History at a Glance 9/9/1890 Harland Sanders is born just outside Henryville‚ Indiana. 1900-1924 Harland Sanders holds a variety of jobs including: farm hand‚ streetcar conductor‚ army private in Cuba‚ blacksmith’s helper‚ railyard fireman‚ insurance salesman‚ tire salesman and service station operator for Standard Oil. 1930 In the midst of the depression‚ Harland Sanders opens his first restaurant in the small front room of a gas station in Corbin‚ Kentucky. Sanders serves as station
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