This website uses cookies to ensure you have the best experience. Learn more

Analysis Diamond Chemicals

929 words - 4 pages

Analysis Diamond Chemicals
Introduction
This project belongs in the engineering-efficiency category; therefore, it has to fit at least 3 of 4 performance hurdles, which are 1. Impact on EPS; 2.Payback; 3.Discounted cash flow and 4. Internal rate of return.
In this article, some of those involved explained and described their opinions; however, professional knowledge may have been lacking. Therefore, we will expound and clarify below.

Management Analysis
Capital Expenditure
On the surface, making sure a project measures up to a range of consistent, prescribed criteria in order to be accepted would appear to be a sound business practice. But in our opinion, we think DC only ...view middle of the document...

If adding the budget for transportation cost is ignored, and even if the Merseyside project can add total throughput, the transportation division still cannot transfer the spared throughput due to the throughput is over the ability of the original transferring utility. Therefore, there will be a charge of ₤2millions which will be added to the project.

Impact- Cannibalization& Ramp up period
The issues of two impacts are in two ways. The first one, more efficient plants are likely to cannibalize sales from the Rotterdam plant. The second one, the forecasted rate of return for customers needs to account for a ramp up period before it is possible to reach the 7% additional revenue of the project. Furthermore, the two impacts should be calculated in the project's cash flows for the final evaluation purposes.

Ethical Issue
Tewitt's suggestion of including the EPC product in the Merseyside renovations presents as an ethical issue, although we think developing EPC is an excellent idea for DC due to the company's competitive strength. But the description from Tewitt shows that he is placing his own self-interest above all other stakeholders and "above moral duties that override self-interest" (Van De Ven & Jeurissen, 2005).

Inflation and Capital Budgeting
In our opinion, the concerns of Andrew Gowan- Treasury analyst- regarding interest rate calculations used in Merseyside project evaluations are valuable. Due to Greystock's calculation mix nominal and real rates, he ignores the Fisher Effect. The definition of Fisher effect is the Fisher effect is in a model where inflation is expected to be steady, the nominal interest rate changes one-for-one with the inflation rate. (Wikipedia, Fisher equation *4) DC takes the 10% hurdle rate as an assumption; there is no other description in the case of how the rate was calculated or set, which is necessary for accurately valuating capital...

Other assignments on Analysis Diamond Chemicals

Economy Effect Of Marijuana Essay

277 words - 2 pages Modern American History by Alan Renga 2nd Mid Term! You will be given 3 Short Essay questions and 20 Multiple Choice questions deriving from this list! 80 points total! The 1920s Warren Harding then Calvin Coolidge Tea Pot Dome 1st Red Scare Immigration Restriction, Sacco and Vanzetti Langston Hughes, Marcus Garvey, KKK Prosperity, advertising Prohibition, Al Capone Flappers, Clara Bow, Rudolph Valentino Babe Ruth, Jack Dempsey

The Vc Shakeout Essay

2033 words - 9 pages ECONOMY 26 Luring a big firm to town is not the secret to job growth DEFEND YOUR RESEARCH 30 Are morning people wired for success? VISION STATEMENT 32 The social web’s east-west divide COLUMN 38 Warren Bennis looks back on his surprising path to fame New Thinking, Research in Progress hbr.org New Thinking, Research in Progress hbr.org FIRST The VC Shakeout Venture capital hasn’t worked for a decade and must be radically

Hospitals Paper

6014 words - 25 pages I hope to provide in this paper a comprehensive understanding for what the term “hospital” has become. Hospitals are an extremely complex system that man has created and shaped and reshaped throughout history. My goal in writing and researching this paper will be to provide those who read it a clear understanding on how the hospital system got to where it is today, and to shed some light on the many organizations that affiliate with and

Course Syllabus

2610 words - 11 pages [pic] COURSE SYLLABUS Semester: Fall, Year: 2012  College Mission Statement Richard J. Daley College provides high-quality education which leads to academic success, career development, and personal enrichment that fulfill diverse community needs. Mathematics Department Mission Statement Our mission is to deliver excellent service and to provide learning opportunities by offering a wide range of mathematics courses, which will help our

Management

1477 words - 6 pages Boeing Management Planning Heather Oetzel MGT 330 October 22, 2012 Joe Cheng Abstract Boeing is known as “the world’s leading aerospace company and the largest manufacturer of commercial jetliner and military aircraft combined ("The Boeing Company: About Us", 2012). Every company uses different types of management techniques including how the planning function of management is used. Planning allows organizations to develop how the

Assisted Suicide

1015 words - 5 pages Should physician-assisted suicide be legal? While I believe if one chooses to end his or own life through physician assistance for reasons that they chose, the choice should be up to the individual. Physician-assisted suicide should be at one's discretion. “Assisted Suicide, also called Voluntary Euthanasia, is currently a contentious issue in many countries. Because Euthanasia is legal in a few modern democracies: the Netherlands, Belgium

Tanglewood Case 1

797 words - 4 pages Tanglewood’s staffing strategy requires the organization to make key decisions about the acquisition, deployment, and retention of the organization’s workforce. In order to accomplish this, Tanglewood’s must make thirteen decisions regarding its staffing levels and its staffing quality. One of the first decisions that Tanglewood needs to choose is to acquire or develop talent. Tanglewood should try to develop their current talent because one

Nnnnn

1391 words - 6 pages Есе по въпроса: Кои от всички „действащи” лица могат да се разглеждат като морално отговорни и в какво именно? по казуса Форд „Пинто” Корпоративните злодеяния са нанесли повече вреди на обществото от всички улични престъпления взети заедно. Според данни на ФБР сумата от уличните престъпления възлиза на $3.8 млрд. годишно, а загубите от корпоративните измами между $100 млрд. и $400 млрд. годишно

The Penis

1052 words - 5 pages The short story ”The Penis” is written by Hanif Kureishi. The short story is about a penis, which has been separated from its owner Doug, who we hear from later on. At first though we hear about a guy called Alfie who was “a cutter – a hairdresser – and had to get to work”. He is having breakfast with his wife, when she asks him what he did last night, and if he had a good time last night? Alfie can not remember what he did last night, he then

Managed Care Paper

543 words - 3 pages Managed Care and Case Management Care Marvin Lloyd BSHS/402-Case Management 27 August 2012 Virgil Miller Managed Care are techniques employed to help reduce the cost for providing health benefits and a system for improving organizations quality of care

Media

439 words - 2 pages The life expectancy is lower; so people are not kept alive with drugs for decades in a virtual sleep state. There is less state education; so kids don't have it drilled into them that their only goal in life is to make money, at the cost of 'everything' else. The health care is less; so diseases, usually brought by Westerners, kill many more than they do in countries where drug companies can make a fortune from selling medicines that aren't

Similar Documents

Victoria Chemicals Case Study 1 Victoria Chemicals (A) Mba9005 Ashley James

1935 words - 8 pages Project Risk and Cost Management Case Study Diamond Chemicals PLC (A): The Merseyside Project Group Members: Divya Yadav, Lamia Nafees, Ashwin Chadaga, Deeshanu Sharma Executive Summary This summary report provides an analysis and estimation of capital budgeting proposed that is being proposed to the Senior Management in Diamond Chemicals. The goal of this project was to save energy, improve

Billiard Company In Bangladesh Essay

8063 words - 33 pages rail. * 7 Circular-or diamond-shaped sights are carefully placed at three locations on each rail section. * 8 An apron (also called a blind) section about 4 in (10 cm) wide is cut to match the length of each rail section. This component will cover the ends of the slate and liner, slate frame, and body frame. * 9 Each component is stained, fine sanded, and finished with catalyzed vamish, lacquer, and/or furniture wax. Rubber cushions

Global Business Opportunities Project: Essay

8736 words - 35 pages Starbucks. Business Opportunity Analysis India has been the leading distributor and consumers of tea for over 170 years but that title went to China in 2004 with the rise of competition. There has become less and less demand, but not supply, of Indian teas. With the overabundant supply of tea, Starbucks has an opportunity to team up with local producers to promote and sell those local flavors in Starbucks all over India. One of the most staggering

Mgt216 Essay

714 words - 3 pages The first ethical issue presented in the ethics game simulation was whether to warn consumers about the contaminated product and what information to provide consumers about the contaminant. The second ethical issue was whether to sell a product that does not meet U.S. safety requirements in a foreign market that has lower safety restrictions. G-BioSport was not required to meet prior approval from the Federal Drug Administration before they