Matching Items (48)
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- All Subjects: Finance
- Creators: Simonson, Mark
Description
The COVID-19 pandemic has and will continue to radically shift the workplace. An increasing percentage of the workforce desires flexible working options and, as such, firms are likely to require less office space going forward. Additionally, the economic downturn caused by the pandemic provides an opportunity for companies to secure favorable rent rates on new lease agreements. This project aims to evaluate and measure Company X’s potential cost savings from terminating current leases and downsizing office space in five selected cities. Along with city-specific real estate market research and forecasts, we employ a four-stage model of Company X’s real estate negotiation process to analyze whether existing lease agreements in these cities should be renewed or terminated.
ContributorsHegardt, Brandon Michael (Co-author) / Saker, Logan (Co-author) / Patterson, Jack (Co-author) / Ries, Sarah (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Finance (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
The COVID-19 pandemic has and will continue to radically shift the workplace. An increasing percentage of the workforce desires flexible working options and, as such, firms are likely to require less office space going forward. Additionally, the economic downturn caused by the pandemic provides an opportunity for companies to secure favorable rent rates on new lease agreements. This project aims to evaluate and measure Company X’s potential cost savings from terminating current leases and downsizing office space in five selected cities. Along with city-specific real estate market research and forecasts, we employ a four-stage model of Company X’s real estate negotiation process to analyze whether existing lease agreements in these cities should be renewed or terminated.
ContributorsRies, Sarah Cristine (Co-author) / Saker, Logan (Co-author) / Hegardt, Brandon (Co-author) / Patterson, Jack (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Finance (Contributor, Contributor) / Barrett, The Honors College (Contributor)
Created2021-05
Description
In order to discover if Company X's current system of local trucking is the most efficient and cost-effective way to move freight between sites in the Western U.S., we will compare the current system to varying alternatives to see if there are potential avenues for Company X to create or implement an improved cost saving freight movement system.
ContributorsPicone, David (Co-author) / Krueger, Brandon (Co-author) / Harrison, Sarah (Co-author) / Way, Noah (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Barrett, The Honors College (Contributor) / Department of Supply Chain Management (Contributor) / Department of Finance (Contributor) / Economics Program in CLAS (Contributor) / School of Accountancy (Contributor) / W. P. Carey School of Business (Contributor) / Sandra Day O'Connor College of Law (Contributor)
Created2015-05
Description
Company X is one of the world's largest semiconductor companies in the world, having a current market capitalization of 177.44 Billion USD, an enterprise value of 173.6 Billion USD, and generated 52.7 billion USD in revenue in fiscal year 2013. Recently, Company X has been looking to expand its Foundry business. The Foundry business in the semiconductor business is the actual process of making the chips. This process can be approached in several different ways by companies who need their chips built. A company, like TSMC, can be considered a pure-play company and only makes chips for other companies. A fabless company, like Apple, creates its own chip design and then allows another company to build them. It also uses other chip designs for its products, but outsources the building to another company. Lastly, the integrated device manufacturing companies like Samsung or Company X both design and build the chip. The foundry industry is a rather novel market for Company X because it owns less than 1 percent of the market. However, the industry itself is rather large, generating a total of 40 billion dollars in revenue annually, with expectations to have increasing year over year growth into the foreseeable future. The industry is fairly concentrated with TSMC being the top competitor, owning roughly 50 percent of the market with Samsung and Global Foundries lagging behind as notable competitors. It is a young industry and there is potential opportunity for companies that want to get into the business. For Company X, it is not only another market to get into, but also an added business segment to supplant their business segments that are forecasted to do poorly in the near future. This thesis will analyze the financial opportunity for Company X in the foundry space. Our final product is a series of P&L's which illustrate our findings. The results of our analysis were presented and defended in front of a panel of Company X managers and executives.
ContributorsJones, Trevor (Author) / Matiski, Matthew (Co-author) / Green, Alex (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Finance (Contributor) / W. P. Carey School of Business (Contributor) / Barrett, The Honors College (Contributor)
Created2015-05
Description
The purpose of our research was to develop recommendations and/or strategies for Company A's data center group in the context of the server CPU chip industry. We used data collected from the International Data Corporation (IDC) that was provided by our team coaches, and data that is accessible on the internet. As the server CPU industry expands and transitions to cloud computing, Company A's Data Center Group will need to expand their server CPU chip product mix to meet new demands of the cloud industry and to maintain high market share. Company A boasts leading performance with their x86 server chips and 95% market segment share. The cloud industry is dominated by seven companies Company A calls "The Super 7." These seven companies include: Amazon, Google, Microsoft, Facebook, Alibaba, Tencent, and Baidu. In the long run, the growing market share of the Super 7 could give them substantial buying power over Company A, which could lead to discounts and margin compression for Company A's main growth engine. Additionally, in the long-run, the substantial growth of the Super 7 could fuel the development of their own design teams and work towards making their own server chips internally, which would be detrimental to Company A's data center revenue. We first researched the server industry and key terminology relevant to our project. We narrowed our scope by focusing most on the cloud computing aspect of the server industry. We then researched what Company A has already been doing in the context of cloud computing and what they are currently doing to address the problem. Next, using our market analysis, we identified key areas we think Company A's data center group should focus on. Using the information available to us, we developed our strategies and recommendations that we think will help Company A's Data Center Group position themselves well in an extremely fast growing cloud computing industry.
ContributorsJurgenson, Alex (Co-author) / Nguyen, Duy (Co-author) / Kolder, Sean (Co-author) / Wang, Chenxi (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Finance (Contributor) / Department of Management (Contributor) / Department of Information Systems (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / School of Accountancy (Contributor) / WPC Graduate Programs (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
"Improving Life Outcomes for Children in Arizona: Educational Social Impact Bond" is a creative project that is structured as a pitch to the Arizona Department of Education to consider social impact bonds as a way to fund pilot education programs. The pitch begins with a brief overview of the umbrella of impact investing, and then a focus on social impact bonds, an area of impact investing. A profile of Arizona's current educational rankings along with statistics are then presented, highlighting the need for an educational social impact bond to help increase achievement. The pitch then starts to focus particularly on high school drop outs and how by funding early childhood education the chances of a child graduating high school increase. An overview of existing early education social impact bonds that are enacted are then presented, followed by a possible structure for an early education social impact bond in Arizona. An analysis of the possible lifetime cost savings of investing in early childhood education are then presented, that are as a result of decreasing the amount of high school drop outs. Lastly, is a brief side-by-side comparison of the Arizona structure to the precedent social impact bonds.
ContributorsRodriguez, Karina (Author) / Simonson, Mark (Thesis director) / Trujillo, Gary (Committee member) / Department of Finance (Contributor) / School of Accountancy (Contributor) / Barrett, The Honors College (Contributor)
Created2016-05
Description
This thesis is a Mergers and Acquisitions (M&A) Pitchbook for the Boston Beer Company (SAM) to acquire the Craft Brew Alliance (BREW). This thesis includes a background on the beer industry, the craft beer industry, SAM and BREW. As well, the thesis includes an analysis of the reasons for the acquisition, potential risks and downsides, a valuation analysis including all of the potential and realistic synergies, conclusions and a recommendation to SAM to acquire BREW before a larger company does.
ContributorsZulanas, Charles (Author) / Simonson, Mark (Thesis director) / Aragon, George (Committee member) / Barrett, The Honors College (Contributor)
Created2015-05
Description
Semiconductor Manufacturer (Semi) wants to improve the valuation of the extended warranties they purchase for their metrology tools and determine whether or not extended warranties are worth the financial investment. Historically, suppliers have commonly overvalued warranties. For example, there is a 50%-60% profit margin on warranties in the consumer electronics industry. The costs incurred from purchasing extended warranties contribute to millions of dollars each year in tool ownership for Semi. By creating an extended warranty valuation model, our goal is to reduce the total cost of metrology tool ownership. A different perspective on the valuation of extended warranties will lead to an increased bottom line for Semi. Our valuation model will assist in determining warranty purchase pricing and appropriate service levels of maintenance personnel associated with the extended warranties. The model's objective is to compare the statistical expected total cost of buying tool parts on an "as needed" basis with the quoted price of an extended warranty. It will assess the strict financial value of either buying or not buying the extended warranty. Using actual tool part consumption data, the model can quickly evaluate the value of a supplier's warranty offer. In addition, the results from the model can be used as a negotiation tool with the suppliers. However the model will have its limitations. For example, the model will not be able to evaluate whether a metrology supplier relies on extended warranty revenues to fund research and development or whether a supplier has the financial health to remain in business with the loss of extended warranty related revenues. A shift in extended warranty purchasing by Semi could have a profound impact on the number of competitive suppliers in the future, and Semi's managers should take this into account when altering their extended warranty purchasing strategy. Our model can be utilized for three different functions: negotiating with suppliers, simplifying the decision to buy or not buy an extended warranty and influencing managers' purchasing strategies. Changing the service level costs of labor can impact Semi's decision to buy or not the extended warranty due to its effect on the probability of the warranty being a good or bad deal. In addition, the model output can significantly influence a manager's purchasing strategy within the organization by breaking down the cost savings associated with the metrology tools' part failures. In order to improve the accuracy and effectiveness of the financial model, we recommend that Semi collect and assemble the model input data in a different manner. Although it is possible Semi does collect more detailed data, the input data we received needed to be more comprehensive; it should include a list of tool parts with their respective failure dates, along with which supplier is responsible for which tool. Furthermore, Semi should develop a supplier scorecard to account for financial health, which can be factored into the model. This will result in a more precise evaluation on whether or not an extended warranty is worth the financial investment.
ContributorsGordon, Audrey Elizabeth (Co-author) / Barkley, Erin (Co-author) / Brady, Max Jordan (Co-author) / Lin, Jessica (Co-author) / Shieffield, Ethan (Co-author) / Hertzel, Michael (Thesis director) / Simonson, Mark (Committee member) / Schembri, Christopher (Committee member) / Barrett, The Honors College (Contributor) / Department of Finance (Contributor) / Department of Marketing (Contributor)
Created2013-05
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 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
Description
The COVID-19 pandemic has and will continue to radically shift the workplace. An increasing percentage of the workforce desires flexible working options and, as such, firms are likely to require less office space going forward. Additionally, the economic downturn caused by the pandemic provides an opportunity for companies to secure favorable rent rates on new lease agreements. This project aims to evaluate and measure Company X’s potential cost savings from terminating current leases and downsizing office space in five selected cities. Along with city-specific real estate market research and forecasts, we employ a four-stage model of Company X’s real estate negotiation process to analyze whether existing lease agreements in these cities should be renewed or terminated.
ContributorsSaker, Logan (Co-author) / Ries, Sarah (Co-author) / Hegardt, Brandon (Co-author) / Patterson, Jack (Co-author) / Simonson, Mark (Thesis director) / Hertzel, Michael (Committee member) / Department of Finance (Contributor) / School of Mathematical and Statistical Sciences (Contributor) / Barrett, The Honors College (Contributor)
Created2021-05