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Company X Supplier Financial Health Model

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…

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

Intel Collaborative Thesis, Substrate Group 2012

Description

Our thesis project aims to evaluate a major semiconductor company's (The Company) substrate supplier strategy in order to find the ideal number of suppliers that minimizes fixed cost and supplier power. With The Company spending roughly $2.2 billion annually on substrates, supplier strategy has a significant impact on their costs.…

Our thesis project aims to evaluate a major semiconductor company's (The Company) substrate supplier strategy in order to find the ideal number of suppliers that minimizes fixed cost and supplier power. With The Company spending roughly $2.2 billion annually on substrates, supplier strategy has a significant impact on their costs. As a general rule in micro processing, the circuitry of the processor becomes twice as dense every two years. The substrate, being the pathway through which the process or with the motherboard, must become more advanced as well, although the technology does not grow at nearly the same speed. Leading the way in their industry, The Company is at the forefront of technology and produces the world's most advanced processing units. The suppliers The Company purchases from must be innovators in their own respective fields in order to be capable of handling such "bleeding-edge" technology; this requires a supplier to make a commitment to continuously work towards meeting The Company's constantly changing technological requirements. The ultimate goal of this project is to determine the ideal number of substrate suppliers that balances the effects of production costs and buying power to give the company the best overall purchase price.

ContributorsWright, Brian (Author) / Hertzel, Michael (Thesis director) / Simonson, Mark (Committee member) / Shirts, John (Committee member) / Barrett, The Honors College (Contributor)

Created2012-05

A Fortune 100 Technology Company Collaborative Thesis: Third-Party Services \u2014 Optimizing Headcount

Description

The object of the present study is to examine methods in which the company can optimize their costs on third-party suppliers whom oversee other third-party trade labor. The third parties in scope of this study are suspected to overstaff their workforce, thus overcharging the company. We will introduce a complex…

The object of the present study is to examine methods in which the company can optimize their costs on third-party suppliers whom oversee other third-party trade labor. The third parties in scope of this study are suspected to overstaff their workforce, thus overcharging the company. We will introduce a complex spreadsheet model that will propose a proper project staffing level based on key qualitative variables and statistics. Using the model outputs, the Thesis team proposes a headcount solution for the company and problem areas to focus on, going forward. All sources of information come from company proprietary and confidential documents.

ContributorsLoo, Andrew (Co-author) / Brennan, Michael (Co-author) / Sheiner, Alexander (Co-author) / Hertzel, Michael (Thesis director) / Simonson, Mark (Committee member) / Barrett, The Honors College (Contributor) / Department of Information Systems (Contributor) / Department of Finance (Contributor) / Department of Supply Chain Management (Contributor) / WPC Graduate Programs (Contributor) / School of Accountancy (Contributor)

Created2014-05

Company X Collaborative Thesis: Substrate Technology

Description

The purpose of this research project is to develop a recommendation for Company X on the strategies it should use to enter a new market. This was done through the compilation and interpretation of data from the company and the construction of a financial model capable of analyzing our different…

The purpose of this research project is to develop a recommendation for Company X on the strategies it should use to enter a new market. This was done through the compilation and interpretation of data from the company and the construction of a financial model capable of analyzing our different proposed strategies. Company X is a leading producer of silicon chips which seeks to remain one of the leading forces in new technologies. Currently Company X wants to assess the value and risks associated with introducing a new packaging technology (FO-WLP) into their products either by developing the technology in-house or outsourcing production. The first portion of the research consisted mostly of gathering the necessary business acumen to be able to to fully understand our research findings. Market research was conducted to discover what competitors exist and what inputs should be included for the model with help from employees at Company X. The research then proceeded with the identification of three possible strategies and construction of financial models to analyze these options. Using the results from our analysis we were able to develop our recommendation for Company X and lay out the next steps which the Company needs to take before investing in the new technology.

ContributorsRubenzer, Jack (Co-author) / Galaviz, Roberto (Co-author) / Mariani, Stephanie (Co-author) / Mecinas, Freddy (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Mike (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Department of Supply Chain Management (Contributor) / T. Denny Sanford School of Social and Family Dynamics (Contributor) / Barrett, The Honors College (Contributor)

Created2016-12

Collaborative Thesis: Supplier Tool Selection

Description

The goal of this thesis was to provide in depth research into the semiconductor wet-etch market and create a supplier analysis tool that would allow Company X to identify the best supplier partnerships. Several models were used to analyze the wet etch market including Porter's Five Forces and SWOT analyses.…

The goal of this thesis was to provide in depth research into the semiconductor wet-etch market and create a supplier analysis tool that would allow Company X to identify the best supplier partnerships. Several models were used to analyze the wet etch market including Porter's Five Forces and SWOT analyses. These models were used to rate suppliers based on financial indicators, management history, market share, research and developments spend, and investment diversity. This research allowed for the removal of one of the four companies in question due to a discovered conflict of interest. Once the initial research was complete a dynamic excel model was created that would allow Company X to continually compare costs and factors of the supplier's products. Many cost factors were analyzed such as initial capital investment, power and chemical usage, warranty costs, and spares parts usage. Other factors that required comparison across suppliers included wafer throughput, number of layers the tool could process, the number of chambers the tool has, and the amount of space the tool requires. The demand needed for the tool was estimated by Company X in order to determine how each supplier's tool set would handle the required usage. The final feature that was added to the model was the ability to run a sensitivity analysis on each tool set. This allows Company X to quickly and accurately forecast how certain changes to costs or tool capacities would affect total cost of ownership. This could be heavily utilized during Company X's negotiations with suppliers. The initial research as well the model lead to the final recommendation of Supplier A as they had the most cost effective tool given the required demand. However, this recommendation is subject to change as demand fluctuates or if changes can be made during negotiations.

ContributorsSchmitt, Connor (Co-author) / Rickets, Dawson (Co-author) / Castiglione, Maia (Co-author) / Witten, Forrest (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Finance (Contributor) / Department of Economics (Contributor) / Department of Information Systems (Contributor) / Department of Supply Chain Management (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)

Created2016-12

Value Creation: Repositioning into Medical Office

Description

This thesis examines the value creation potential of renovating an existing commercial real estate asset to a medical office. It begins by examining commercial real estate and the medical sector at a high level. It then discusses the various criteria used to select a subject property for renovation. This renovation…

This thesis examines the value creation potential of renovating an existing commercial real estate asset to a medical office. It begins by examining commercial real estate and the medical sector at a high level. It then discusses the various criteria used to select a subject property for renovation. This renovation is then depicted through a modified pitch book that contains a financial model and pro forma.

ContributorsLarrea, Justin (Co-author) / Berger, Nicholas (Co-author) / Peters, Matthew (Co-author) / Simonson, Mark (Thesis director) / Gray, William (Committee member) / Department of Finance (Contributor) / Department of Supply Chain Management (Contributor) / Barrett, The Honors College (Contributor)

Created2021-05

Value Creation: Repositioning into Medical Office

Description

This thesis examines the value creation potential of renovating an existing commercial real estate asset to a medical office. It begins by examining commercial real estate and the medical sector at a high level. It then discusses the various criteria used to select a subject property for renovation. This renovation…

This thesis examines the value creation potential of renovating an existing commercial real estate asset to a medical office. It begins by examining commercial real estate and the medical sector at a high level. It then discusses the various criteria used to select a subject property for renovation. This renovation is then depicted through a modified pitch book that contains a financial model and pro forma.

ContributorsBerger, Nicholas James (Co-author) / Larrea, Justin (Co-author) / Peters, Matthew (Co-author) / Simonson, Mark (Thesis director) / Gray, William (Committee member) / School of Accountancy (Contributor) / Dean, W.P. Carey School of Business (Contributor) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)

Created2021-05

Value Creation: Repositioning into Medical Office

Description

This thesis examines the value creation potential of renovating an existing commercial real estate asset to a medical office. It begins by examining commercial real estate and the medical sector at a high level. It then discusses the various criteria used to select a subject property for renovation. This renovation…

This thesis examines the value creation potential of renovating an existing commercial real estate asset to a medical office. It begins by examining commercial real estate and the medical sector at a high level. It then discusses the various criteria used to select a subject property for renovation. This renovation is then depicted through a modified pitch book that contains a financial model and pro forma.

ContributorsPeters, Matthew Scott (Co-author) / Larrea, Justin (Co-author) / Berger, Nicholas (Co-author) / Simonson, Mark (Thesis director) / Gray, William (Committee member) / Department of Finance (Contributor, Contributor) / Department of Information Systems (Contributor) / Barrett, The Honors College (Contributor)

Created2021-05

Substrate Industry Dynamics and Price Implications

Description

This paper serves as an analysis of the current operational conditions of a real-world company – referred to as “Company X” – with respect to the IC substrate industry. The cost of substrates, a crucial component in the production of Company X’s product, has recently diverged from Company X’s predictions…

This paper serves as an analysis of the current operational conditions of a real-world company – referred to as “Company X” – with respect to the IC substrate industry. The cost of substrates, a crucial component in the production of Company X’s product, has recently diverged from Company X’s predictions and is contributing to declining profitability. This analysis aims to discover the underlying cause for price divergence and recommend potential resolutions to improve the forecast of substrate costs and profitability. The paper is organized as follows: Chapter 1 is an introduction to IC substrates and the industry as a whole, Chapter 2 is a breakdown of the specific factors responsible for substrate prices, and Chapter 3 delivers a final recommendation to Company X and concludes the paper.

ContributorsAggarwal, Bianca (Author) / Guillaume, Riley (Co-author) / O'Loughlin, Connor (Co-author) / Fares, Ari (Co-author) / King, Camden (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Barrett, The Honors College (Contributor) / Department of Finance (Contributor) / Department of Information Systems (Contributor)

Created2023-05

Substrate Industry Dynamics and Price Implications

Description

This paper serves as an analysis of the current operational conditions of a real-world company – referred to as “Company X” – with respect to the IC substrate industry. The cost of substrates, a crucial component in the production of Company X’s product, has recently diverged from Company X’s predictions…

This paper serves as an analysis of the current operational conditions of a real-world company – referred to as “Company X” – with respect to the IC substrate industry. The cost of substrates, a crucial component in the production of Company X’s product, has recently diverged from Company X’s predictions and is contributing to declining profitability. This analysis aims to discover the underlying cause for price divergence and recommend potential resolutions to improve the forecast of substrate costs and profitability. The paper is organized as follows: Chapter 1 is an introduction to IC substrates and the industry as a whole, Chapter 2 is a breakdown of the specific factors responsible for substrate prices, and Chapter 3 delivers a final recommendation to Company X and concludes the paper.

ContributorsFares, Ariya (Ari) (Author) / O’Loughlin, Connor (Co-author) / Guillaume, Riley (Co-author) / Aggarwal, Bianca (Co-author) / King, Camden (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Barrett, The Honors College (Contributor) / Department of Finance (Contributor)

Created2023-05

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