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

Northern Aero Data (Clv) Case Analysis

928 words - 4 pages

Question 1
1) The lifetime value of a typical customer in each segment when the discount rate is 15%.
* Exhibit 1 shows that the customer lifetime value for each segment with a 15% discount rate.
* The lifetime value of a typical customer in the platinum( top 20%) segment is worth $3496.
* The lifetime value of a typical customer in the platinum( low 80%) segment is worth $2394.
* The lifetime value of a typical customer in the gold ( top 20%) segment is worth $1415.
* The lifetime value of a typical customer in the gold ( low 80%) segment is worth $769.
* The lifetime value of a typical customer in the Silver( top 20%) segment is worth $406.
* The ...view middle of the document...

* The lifetime value of a typical customer in the gold ( low 80%) segment is worth $500.
* The lifetime value of a typical customer in the Silver( top 20%) segment is worth $248.
* The lifetime value of a typical customer in the Sliver( low 80%) segment is worth $86.
* The lifetime value of a typical customer in the inactive customers segment is worth $23.
* The lifetime value of a typical customer in the low customers segment is worth $0.
*
* If the existing customers were to be economically valued, as an asset of the company, how much would they be worth?
* The economic value of the existing customers can be calculated by multiplying the customer lifetime value of each segment by the segment’s size and then summing the value of all segments.
* Total value, in today’s dollars, of the existing customer database will be $9,415,807. ( Shown in the Exhibit 4)
*
* What key differences does it make? Please explain.
* In the Exhibit 5, I use the 20-period projection and calculate the difference.
* When the discount rate increases from 15% to 40%, the company faces a 37.3% drop in its total value. The loss will be $5,609,132. the largest difference rate comes from the silver segment. Firstly, the silver segment has the most significant amount of customers. The requirement of being a silver customer is small ( fly with the Northern Aero at least one time). Secondly, each year some of the customers will degrade from the platinum or gold segment to the silver segment. Due to the largest number of customers in the silver segment, the company will encounter the huge loss when it adjust the discount rate from 15% to 40%.
* Based on the data in the Exhibit 5, we could find that the most loyalty customers come from the platinum segment. If the company wants to increase its total value, it probably should utilize its limited budget to keep customers in the Silver segment,...

Other assignments on Northern Aero Data (Clv) Case Analysis

Ffff Essay

4622 words - 19 pages viii. Size = 13, then middle = 6 ix. Size = 4, then middle = 2 110. Compare target with MIDDLE index highlighted 111. Redefine (reset) Left or Right sections of the list (if not target), repeat cliii. Best case? 112. Target that you’re searching for is the first element cliv. Average case? clv. Worst case? 113. Target that you’re searching

Ge Wind Strategy Case Study

4576 words - 19 pages manufacturing and related services like installation, operation and maintenance (O&M). 2) The data for value chain analysis is based onshore wind power on European Wind industry. GE Wind is a branch of GE Energy, a subsidiary of General Electric. The company manufactures sells wind turbines and wind service solutions to the global market (Wikipedia, 2013). In 2012, GE Wind was a number 1 largest wind turbine manufacture in the world. “Today’s

Qume 380

296 words - 2 pages Dolan Jiang Case 19 Questions: Looking at these two articles and other supporting material, discuss how Target's failure in Canada can be described as an Information Systems problem. Give examples, and suggest how better solutions might have helped. I think that Target’s failure in Canada describing as an Information Systems problem is the lack of data collection (Research), data process (Analysis), and decision making according to the

Workshop On Proposal Development

1046 words - 5 pages few plenaries. In this workshop, however, group work will take up most of the time. The presentations will be concentrated in the first week, which will be devoted to data analysis. The second week will be fully reserved for report writing, with only two presentations to guide you. Toward the end of that week an important plenary is planned in which each group will present a summary of its main findings and recommendations. A selected group

Paper

403 words - 2 pages ethical concerns. (1) Computing power double every 18 months. (2) Data storage cost rapidly declining (3) Data analysis advance (4) Networking advances and the Internet (1)Because of doubling of computer power every 18 months, many people becoming dependent on computer system and as a result poor data quality and system error are increasing dramatically day by day. (2)Latest data storage technique and rapidly declining data storage costs

Big Data

1070 words - 5 pages streaming music etc.) or in professional environments (cloud data centers in various corporate operations). This case study takes a brief look into how Volvo took advantage of this technology to create value. Also, related issues with how data and information is utilized in this company are discussed as well. Integrating cloud infrastructure Understanding cloud technology is important to understand its implementation and integration for business needs

Internationalization Of Cemex

5899 words - 24 pages southern country or in a northern one, and to underline the differences and similarities of HR management in a south-south, south-north and north-south perspective, taking CEMEX as a case-study. Cultural differences and business practices When considering entering foreign markets, southern MNEs have to consider how cultural differences could affect their business strategies, much the same way northern MNEs do, and this is also true for the

Indian Economy

414 words - 2 pages Applications of Operations Research planning, routing, scheduling, forecasting, process analysis and decision analysis. OR is also contributing greatly to healthcare services such as surgical and bed scheduling, portering operations, emergency transport, accident trend analysis and treatment optimization. In the service sector, OR techniques have been found especially helpful when dealing with variability in service delivery such as call

Thesis

4522 words - 19 pages decision criterion. The best decision for George is to invest in common stock. e. Pete Metarko is a risk seeker. He should invest in common stock. f. Julia Day can eliminate the preferred stock alternative and still offer alternatives to risk seekers (common stock) and risk avoiders (doing nothing or investing in corporate bonds). 2. North–South Airline, Ch. 4, page 145 Northern Airline Data Airframe Cost Engine Cost Average Age

Big Data Analytics

7653 words - 31 pages the right metadata. Much data today is not natively in structured format; for example, tweets and blogs are weakly structured pieces of text, while images and video are structured for storage and display, but not for semantic content and search: transforming such content into a structured format for later analysis is a major challenge. The value of data explodes when it can be linked with other data, thus data integration is a major creator of

Hospital Records Keeping

1299 words - 6 pages . Simultaneously updates changes made to any data, item in the entire data base. 3. It is faster than manual system The goal of any system development is to develop and implement the system cost effectively; user-friendly and most suited to the user’s analysis is the heart of the process. This function of Hospital Management Information System deals with registering the new Patient either for OPD or IPD and giving unique Identification

Similar Documents

Aero Motors Case Study

1049 words - 5 pages market at a much faster pace. Finally, simply sharing the risk is a reward because it would minimize possible losses. In reference to the risks, the largest risk associated with partnering is the control that Aero Motors would have to relinquish as is the case with partnerships. Following this approach will also deter Aero Motor’s ability to establish themselves in the North American market as was mentioned by the VP of Marketing, Kathy Lee. Ms

Customer Portfolio Essay

3226 words - 13 pages growth, enhanced customer profitability acrossing the entire customer base. It is offered differentiated value propositions to different segments of customers.The basic disciplines for customer portfolio management are named as market segmentation, sales forecasting, activity – based costing, customer life – time value estimation or data – mining. 2.1.1 Customer Lifetime Value (CLV) In these above disciplines, the compatible and

Aero Design Essay

1828 words - 8 pages ) Executive Summary This report encompasses the design and manufacturing processes, conducted by the MILITARY INSTITUTE OF SCIENCE & TECHONOLOGY (MIST), DHAKA, where team ‘Hub & Blade’ is destined for their design report entry in the 1ST NATIONAL AERO-DESIGN COMPETITION & EXHIBITION . The theme of the competition is to design an aircraft. The goal of this competition is that the design will be in such a way that can fly with the

Northern Trust Valuation Essay

4795 words - 20 pages Northern Trust has evolved into what it is now known as today. For the analysis in this report only the relevant merger/divestiture activity of the last several years will be discussed. 1.4.1 Recent History (data here-in Sec. 1.4.1 taken from Mergent Database) • On May 15, 2000, Co. acquired Dublin-based Ulster Bank Investment Services for approximately $12,700,000. • On Jan. 31, 2003, Co. announced the closing of its acquisition