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- Creators: Department of Finance
Description
Company X is one of the world's largest manufacturer of semiconductors. The company relies on various suppliers in the U.S. and around the globe for its manufacturing process. The financial health of these suppliers is vital to the continuation of Company X's business without any material interruption. Therefore, it is in Company X's interest to monitor its supplier's financial performance. Company X has a supplier financial health model currently in use. Having been developed prior to watershed events like the Great Recession, the current model may not reflect the significant changes in the economic environment due to these events. Company X wants to know if there is a more accurate model for evaluating supplier health that better indicates business risk. The scope of this project will be limited to a sample of 24 suppliers representative of Company X's supplier base that are public companies. While Company X's suppliers consist of both private and public companies, the used of exclusively public companies ensures that we will have sufficient and appropriate data for the necessary analysis. The goal of this project is to discover if there is a more accurate model for evaluating the financial health of publicly traded suppliers that better indicates business risk. Analyzing this problem will require a comprehensive understanding of various financial health models available and their components. The team will study best practice and academia. This comprehension will allow us to customize a model by incorporating metrics that allows greater accuracy in evaluating supplier financial health in accordance with Company X's values.
ContributorsLi, Tong (Co-author) / Gonzalez, Alexandra (Co-author) / Park, Zoon Beom (Co-author) / Vogelsang, Meridith (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Mike (Committee member) / Department of Finance (Contributor) / Department of Information Systems (Contributor) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
In A Comparative Analysis of Indoor and Greenhouse Cannabis Cultivation Systems, the two most common systems for commercial cannabis cultivation are compared using an operational and capital expenditure model combined with a collection of relevant industry sources to ascertain conclusions about the two systems' relative competitiveness. The cannabis industry is one of the fastest growing nascent industries in the United States, and, as it evolves into a mature market, it will require more sophisticated considerations of resource deployment in order to maximize efficiency and maintain competitive advantage. Through drawing on leading assumptions by industry experts, we constructed a model of each system to demonstrate the dynamics of typical capital deployment and cost flow in each system. The systems are remarkably similar in many respects, with notable reductions in construction costs, electrical costs, and debt servicing for greenhouses. Although the differences are somewhat particular, they make up a large portion of the total costs and capital expenditures, causing a marked separation between the two systems in their attractiveness to operators. Besides financial efficiency, we examined quality control, security, and historical norms as relevant considerations for cannabis decision makers, using industry sources to reach conclusions about the validity of each of these concerns as a reason for resistance to implementation of greenhouse systems. In our opinion, these points of contention will become less pertinent with the technological and legislative changes surrounding market maturation. When taking into account the total mix of information, we conclude that the greenhouse system is positioned to become the preeminent method of production for future commercial cannabis cultivators.
ContributorsShouse, Corbin (Co-author) / Nichols, Nathaniel (Co-author) / Swenson, Dan (Thesis director) / Cassidy, Nancy (Committee member) / Feltham, Joe (Committee member) / School of Accountancy (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
Having studied at Arizona State University and the W.P. Carey School of Business through approximately 7 semesters of undergraduate business coursework, I, along with my classmates, have learned an incredible amount of knowledge critical for success in a career in business administration. We have been provided the resources and tools necessary to excel in full time business careers, implement new ideas, and innovate and improve preexisting business networks as driven, motivated business intellectuals. Additionally, having worked in four diverse business internships throughout my undergraduate career, I have come to understand the importance of understanding and studying law and contracts as they relate to business. In all of those internships, I worked extensively with a variety of contracts and agreements, all serving critical purposes within each individual line of business. Within supply chain management studies and jobs, I found contracts to be of utmost importance for students to understand prior to entering a full time job or internship. Students study a wide variety of topics during their education within the Supply Chain Management department at Arizona State University. In procurement and purchasing classes specifically, students cover topics from supplier negotiation strategies to sourcing and sustainability. These topics engage students of all backgrounds and offer exceptional knowledge and insight for those seeking a full time job within supply chain management. What is interestingly so often excluded from such lectures is discussion with regards to the contracts and laws pertinent to purchasing and supply management success. As most procurement and sourcing professionals know, contracts are the basis for all agreements that a company and supplier may engage in. A critical component within the careers of supply managers, contract law provides the foundation for any agreement. Thus, the necessity for a discussion on how to best integrate purchasing and contract law into undergraduate supply chain management education, including depicting the material that should be covered, is permitted. In my Honors Thesis, I have decided to create an informative lecture and outline that can be readily understood by undergraduate students in supply chain management courses, at the benefit of professors and lecturers who wish to utilize and incorporate the material in their classroom. The content consists of information recommended by industry professionals, relevant real-life procurement and contract law examples and scenarios, and universal and common law relevant to contracts and purchasing agreements within the workplace. All of these topics are meant to prepare students for careers and internships within supply chain management, and are topics I have found lack current discussion at the university level. Additionally, as a part of my Honors Thesis, I was given the opportunity to provide a cohesive lecture and present the topics herein in SCM 355 Purchasing classes. This was an opportunity to present to students topics that I feel are currently underrepresented in college courses, and that are beneficial for business students to learn and fully understand. Topics discussed in this interactive lecture and slideshow extracted information from the lecture template.
ContributorsPakula, Jacqueline Rose (Author) / Gilmore, Bruce (Thesis director) / Guy, Shannon (Committee member) / Department of Finance (Contributor) / Department of Supply Chain Management (Contributor) / Barrett, The Honors College (Contributor)
Created2017-12
Description
This research project examines the craft brewing industry and its position in the North American market. Specifically, this research will highlight the most important aspects of the product market, cost structure, market trends, as well as an assessment of the viability of several modes of entry. The data and analysis provided indicates that the industry is promising and poised to grow in comparison to many other sectors within the alcoholic beverages industry, as demand for differentiated craft beer products is relatively strong. The continued existence of craft brewing would not be made possible without the devotion and dedication of individuals simply interested in brewing recipes at home. Although the process of brewing remains relatively traditional, the paper will discuss the possibilities to diversify as a successful craft brewing brand due to consumers' willingness and curiosity to try new beverages. Production details and supply chain processes will be discussed to fully understand the fruitful beginnings of a local brewer to a large scale company that distributes nationwide. Nonetheless, prominent risks include extensive regulatory hurdles ranging from local to federal levels and threats from significant established competitors. These competitors and their business activities will be heavily discussed as it pertains to the question of whether entering the market is a smart business decision. The purpose of this research is to provide potential business owners and investors the strength and knowledge to engage in the craft brewing industry. In essence, the business decision to participate in the craft brewing industry is met with encouragement from an avid consumer base, collaboration with competitors, and an undying passion to brew quality beer for consumption.
ContributorsKnapp, Kurt (Co-author) / Wu, Katherine (Co-author) / Nguyen, Kelley (Co-author) / Budolfson, Arthur (Thesis director) / Bhattacharya, Anand (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Department of Supply Chain Management (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / School of Accountancy (Contributor) / Hugh Downs School of Human Communication (Contributor) / Barrett, The Honors College (Contributor)
Created2016-12
Description
For decades, firms and individuals have utilized written documents to aid in the negotiation of, and completion of, business transactions. One such document is known as a "letter of intent." A letter of intent is often in the form of a letter that serves to evidence preliminary discussions and aid in negotiations between parties. They are generally intended to be "non-binding," meaning neither party will be bound by terms or conditions set forth in the letter of intent unless formal documents are later prepared and executed by the parties. Letters of intent take myriad forms and names, such as "memorandum of understanding," "proposal letter," and "letter of interest." They have been used in many areas of business, including finance, real estate, and supply chain management. Parties often choose to use a letter of intent for varied benefits it may provide, memorializing preliminary discussions, establishing a timeline for negotiations, seeing whether there are any "deal breakers" among terms being proposed, confirming that a party is serious about a deal, or putting moral pressure on the other party to continue negotiations. However, letters of intent carry with them a significant level of risk, which raises the question of whether or not they should be used at all. Many of the risks associated with the use of a letter of intent stems from the potential for a court to find that a letter of intent constitutes a binding agreement, or creates a duty of the parties to continue negotiations in good faith. Parties to a letter of intent may later disagree as to whether they intended all of the terms, or a particular provision, to be legally binding and enforceable, resulting in legal action. Even if a court finds that a letter of intent does not constitute a binding contract, a party may be able to recover damages under a number of legal theories, such as breach of a duty to negotiate in good faith or promissory estoppel. The use of letters of intent is therefore risky, and ultimately, the risks may outweigh the benefits of utilizing letters of intent. This thesis studies the types, uses, benefits, and risks associated with the use of letters of intent, including an examination of statutes and cases that have been applied by courts in disputes surrounding their use. Ways to mitigate the risks of use are also examined including simple practices such as not signing a letter of intent and using a separate document for any terms which must be binding, such as a "no shop" clause. A proposed legislative solution is also discussed that would prevent letters of intent not explicitly intended to be binding and meeting statutory requirements from being enforced in court, thereby substantially reducing the risks associated with the use of letters of intent.
ContributorsGilman, Alexander James (Author) / Birnbaum, Gary (Thesis director) / Stein, Luke (Committee member) / Claus, Scot (Committee member) / Department of Finance (Contributor) / W. P. Carey School of Business (Contributor) / Sandra Day O'Connor College of Law (Contributor) / Department of Supply Chain Management (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
The competitive nature of business requires managers to consistently work towards eliminating unnecessary costs and improving financial management. Worldwide, fraud remains a pervasive and expensive problem for businesses. Fraud involving misappropriation of assets (commonly referred to as embezzlement) and fraudulent financial reporting cost organizations trillions of dollars worldwide. To better understand the most effective ways of combating misappropriation and to a lesser extent, fraudulent financial reporting, this paper evaluates research and reports the results of expert interviews with accountants, forensic experts, and security specialists.
ContributorsMurnane, George (Author) / Munshi, Perseus (Thesis director) / Pany, Kurt (Committee member) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
I was interested to see if there were any statistically significant differences in political ideology between Master's of Accountancy students (MACC) and Master's of Taxation students (MTax) at Arizona State University. I hypothesized that the MACC students would tend to be more liberal or less conservative than the MTax students, while the MTax students would tend to be more conservative or less liberal than the MACC students. Scholars have found ways that conservatives and liberals differ, including differences in personality traits of conscientiousness and openness, as well as the types of careers they are drawn to. Scholars have also performed personality tests on accountants, accounting students, and accounting faculty to show how they differ. I distributed a voluntary online survey to students to discern their political beliefs. Most of the questions I asked did not reveal any statistically significant differences between students from the two programs, but the questions that did reveal some statistically significant differences showed that MACC students were more likely to be liberal or less conservative on certain issues, while the opposite was true for the MTax students. The statistically significant differences tended to appear for questions related to social policy rather than economic policy. This finding supports previous studies that show how social policy tends to be more divisive than economic policy.
ContributorsAnderson, Brett Patrick (Author) / Lewis, Paul (Thesis director) / Lowe, D. Jordan (Committee member) / Department of Finance (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2015-12
Description
The PPP Loan Program was created by the CARES Act and carried out by the Small Business Administration (SBA) to provide support to small businesses in maintaining their payroll during the Coronavirus pandemic. This program was approved for $350 billion, but this amount was expanded by an additional $320 billion to meet the demand by struggling businesses, since initial funding was exhausted under two weeks.<br/><br/>Significant controversy surrounds the program. In December 2020, the Department of Justice reported 90 individuals were charged for fraudulent use of funds, totaling $250 million. The loans, which were intended for small business, were actually approved for 450 public companies. Furthermore, the methods of approval are<br/>shrouded in mystery. In an effort to be transparent, the SBA has released information about loan recipients. Conveniently, the SBA has released information of all recipients. Detailed information was released for 661,218 recipients who have received a PPP loan in excess of $150,000. These recipients are the central point of this research.<br/><br/>This research sought to answer two primary questions: how did the SBA determine which loans, and therefore which industries are approved, and did the industries most affected by the pandemic receive the most in PPP loans, as intended by Congress? It was determined that, generally, PPP Loans were approved on the basis of employment percentages relative to the individual state. Furthermore, in general, the loans approved were approved fairly, with respect to the size of the industry. The loans, when adjusted for GDP and Employment factors, yielded a clear ranking that prioritized vulnerable industries first.<br/><br/>However, significant questions remain. The effectiveness of the PPP has been hindered by unclear incentives and negative outcomes, characterized by a government program that has essentially been rushed into service. Furthermore, limitations of available data to regress and compare the SBA's approved loans are not representative of small business.
ContributorsMaglanoc, Julian (Author) / Kenchington, David (Thesis director) / Cassidy, Nancy (Committee member) / Department of Finance (Contributor) / Dean, W.P. Carey School of Business (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
Music streaming services have affected the music industry from both a financial and legal standpoint. Their current business model affects stakeholders such as artists, users, and investors. These services have been scrutinized recently for their imperfect royalty distribution model. Covid-19 has made these discussions even more relevant as touring income has come to a halt for musicians and the live entertainment industry. <br/>Under the current per-stream model, it is becoming exceedingly hard for artists to make a living off of streams. This forces artists to tour heavily as well as cut corners to create what is essentially “disposable art”. Rapidly releasing multiple projects a year has become the norm for many modern artists. This paper will examine the licensing framework, royalty payout issues, and propose a solution.
ContributorsKoudssi, Zakaria Corley (Author) / Sadusky, Brian (Thesis director) / Koretz, Lora (Committee member) / Dean, W.P. Carey School of Business (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
The goal of this study was to explore the relationship between locus of control and the influence of an unethical authority figure. This research is a preliminary, exploratory study given research design limits. It was hypothesized that subjects oriented towards internal locus of control are better able to resist pressure from an unethical authority figure. Subjects oriented towards the powerful others and chance orientations were hypothesized to be less able to resist pressure from an unethical authority figure. The results found that the presence of an unethical authority figure had little to no influence on self-perceived unethical decision-making; the difference in unethical behavior between cases with an authority figure present and without one present was not statistically significant. Further, no support was found for the hypotheses as no statistically significant relationship between locus of control orientations and the difference between the control case and test case was found (R2 = 0.02, model P-value > 0.05). Further analysis confirmed the results of Detert et al. (2008), finding no relationship between survey subjects’ locus of control orientations and unethical decision-making. Additional analysis indicates a relationship between unethical decision-making and gender (B = -5.14, P = 0.03, P < 0.05), providing some interesting avenues for future research.
ContributorsAmorosi, Kaitlin (Author) / Samuelson, Melissa (Thesis director) / Orpurt, Steven (Committee member) / Department of Finance (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2020-05