Reference no: EM131253848
Reflecting on the focus and content of this course, what is an important challenge facing the financial management of organizations today, and how would you go about addressing it? Explain.
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.
HowRu, a private card business and its subsidiary, have a 14% share of the greeting card market. The card business is subject to seasonal cycles, with sales being highest during the holiday season. For this assignment, please complete the following:
• What steps can this company take to diversify its portfolio?
• Define diversification and its necessity in risk management.
• Discuss at least 5 steps to diversify the card business.
• Please give at least 6 suggestions of how and where funds can be allocated for new investments.
In 1999, a Seattle man took a popular soft-drink company seriously when one of its commercials made an offer of a Harrier jet, the famous high-tech jump jet used by the U.S. Marines. In a television commercial that aired in 1995, the company jokingly included the Harrier as one of the prizes that could be received with a mere 7 million company points. Although that sounds like a lot of points to get from drinking the soft drink company's products (roughly 190 drinks a day for 100 years), the company also allowed customers to purchase points for 10 cents each.
The man did the math and discovered that the cost of the 7 million points needed for the jet was $700,000. He then put together a business plan, raised the $700,000 from friends and family, and submitted 15 points, the check, and an official order form with a demand for the Harrier jet.
The company wrote back, stating that the Harrier jet in the commercial was simply used to create a humorous and entertaining advertisement. They apologized for any misunderstanding or confusion people may have experienced and enclosed some free product coupons.
The free coupons did not satisfy the man, who then took the soft drink company to court. Finally, a federal judge for the Southern District of New York held that the company was only joking when it implied in its ad that it was giving away fighter jets. The judge noted that because the jets sell for approximately $23 million, no one could have concluded that the commercial actually offered consumers a Harrier jet. Instead, this was a classic example of a deal that was too good to be true.
Write a paper of 4-6 body pages that answers the following questions, including an in-depth explanation of the supporting rationale:
• What are the key legal factors present in the scenario?
• What are the 4 elements of a valid contract? How do they relate to the scenario in question?
• What is the objective theory of contracts?
• How does the objective theory of contracts apply to this case?
• In your own words but based on research and analysis of relevant legal concepts and cases, why do you think the court held that there was not a valid agreement in this scenario? Provide support for your position.
• Are advertisements generally considered offers? Explain.
• How does this case differ from a reward situation in which a unilateral contract is formed upon completion of the requested act?
• What recommendations (at least 2) would you make for a company considering an aggressive marketing campaign with giveaways of high value items? Explain the rationale behind each recommendation.
Your submitted assignment must include a Word document of 4-6 body pages that contains your answers to the questions listed and a reference list of any sources that you used within your paper (cited properly in APA format).
Evaluate the use and applicability of rfid
: From the e-Activity, evaluate the use and applicability of Radio Frequency Identification Devises (RFID) in industry today. Choose a company and provide at least two examples of how these devices can be used to improve productivity in its operatio..
|
A circuitswitching and packet switching network
: Briefly describe the differences between a circuitswitching and packet-switching network. - Identify two organizations that lead in the setting of communications standards.
|
Money supply targeting by the fed
: Suppose that foreigners start holding more U.S. currency. For a given interest rate, Americans don't change their holdings of either currency or checking deposits and the Fed makes no attempt to keep the monetary base constant. Consider the follow..
|
Find each firm’s reaction function
: Let's consider a market in which two firms compete as quantity setters, and the market demand curve is given by Q = 4000 - 40P. Firm 1 has a constant marginal cost equal to MC1 = 20, while Firm 2 has a constant marginal cost equal to MC2 = 40.
|
What steps can this company take to diversify its portfolio
: HowRu, a private card business and its subsidiary, have a 14% share of the greeting card market. The card business is subject to seasonal cycles, with sales being highest during the holiday season. For this assignment, please complete the followin..
|
Currency-deposit ratio and reserve-deposit ratio
: Continue to assume the currency-deposit ratio and reserve-deposit ratio are 0.25. ( don't forget to write down the balance sheet for each of these days for the bank)
|
What is the bertrand equilibrium price in this market
: What is Firm 1's profit-maximizing quantity, given that Firm 2 produces an output of 50 units per year? What is Firm 1's profit-maximizing quantity when Firm 2 produces 20 units per year?
|
Decrease in global demand for our minerals and resources
: If you were the ultimate ruler of Australia, and had control over all standard macroeconomic policy tools, what response if any would you propose if Australia had just entered a recession due to a decrease in global demand for our minerals and res..
|
Naming conventions used to identify internet host computers
: What is the Web? Is it another network like the Internet or a service that runs on the Internet? - What is MILNET? - What is HTML? How does it work?
|