做的效果很好一个.pptx

Feasibility of capacity in the case of Starfire SELECTING AT THE CROSSROADSCASEANALYSISBybeliefCONTENTCapacityAnalysisCaseOverviewSummary$FinancialAnalysisStrategicAnalysisPART 1 CASE OVERVIEWCaseOverviewRecently,FHP,Starfireslargestcustomer,submittedaproposaltoadddeliveryroutes.?Should we accept the proposal?Which scenario is the optimal if accept?Financial&Capacity analysis Strategy&Risk analysis$PART 2 FINANCIAL ANALYSISMarginal AnalysisCost-Volume-Profit&DOLCost ConsideringProfitability AnalysisSolvency Analysis Scenario2InvestinginadditionalequipmenttoserveFHPScenario1ServingFHPwiththeexistingcapacityScenario3OutsourcingthenewroutestoindependentcontractorsFinancialAnalysis$Incrementalmiles：3,000miles*52weeks=156,000miles/yrFinancialAnalysis$Revenue,cost and profit analysisContribution margin Breakeven analysisBreakevenpointinmiles=50,000/0.81=61,728(miles)Breakevenpointinweeks=61,728.40/3000=20.58(weeks)Revenue,cost and profit analysisContribution marginBreakeven analysisBreakevenpointinmiles=0/0.76=0 Revenue,cost and profit analysisContribution margin Breakeven analysisBreakevenpointinmiles=20000/0.55=36364(miles)Breakevenpointinweeks=36363.64/3000=12.12(weeks)ScenarioOneIncrementalrevenue335,400Incrementalcosts:216,840Incrementaloperatingincome118,560Contributionmarginpermile0.76Contributionmarginperyear118,560Fixedcosts0ScenarioTwoIncrementalrevenue343,200Incrementalcosts:266,840Incrementaloperatingincome76,360Contributionmarginpermile0.81Contributionmarginperyear126,360Fixedcosts50,000ScenarioThreeIncrementalrevenue343,200Incrementalcosts:277,400Incrementaloperatingincome65,800Contributionmarginpermile0.55Contributionmarginperyear85,800Fixedcosts20,000 Total Per mile PercentRevenue$335,400$2.15100%Less:variable costs 216,840 1.3964.70%Contribution margin 118,560 0.7635.30%Revenue 2.15156,000Cost（V+F）1.39156,000BEP in miles=Fixed costs/CM per mile MarginalAnalysisFinancialAnalysis$-156,00061,72894,27236,364119,636Scenario1Scenario2Scenario3Break-evenPointMaginofSafetyDOL2012=2.895DOL2012+Scenario1=2.835DOL2012+Scenario2=2.869DOL2012+Scenario3=2.867231OperatingRiskDOLmeasurestheoperatingriskHighDOLmeanshighoperatingriskScenario2ranks1thLHMCost-Volume-Profit&DOLAnalysisFinancialAnalysis$TechnicalVC43.23%FuelOilLubricantsTollsParts&SmallToolsDiscretionaryVC25.97%InsuranceHourlyWages-DriversTrailerPoolExpenseCommittedFC23.84%DepreciationSalaries,Benefits(Garage)Salaries,Benefits(Office)PermitsRentalEquipmentAccountingFees,Supplies,ComputerMaintenanceMiscellaneousDiscretionaryFC6.96%InsuranceSecurityBadDebtExpensePayrollTaxesTrytoSaveCostsCostConsideringFinancialAnalysis$14.25%14.09%14.05%13.99%10.05%Scenario1Scenario2Scenario3StarfiresOPMIndustryAverageExpectedOperatingProfitMargin24.49%32.65%21.47%11.39%ROEROAROE&ROAStarfireIndustryAverageFromtheHistogramStarfiresOPM(13.99%)ishigherthanIndustryAverage(10.05%).Starfiresprofitabilityisstrong.Scenario1to3canimproveStarfiresOPM.ROAindicatesStarfiresgoodprofitability.CombiningwithROAandROE,Starfiresdebtproportionislow.Profitable to accept the proposalEasier to borrow debtsProfitabilityAnalysisDebttoAssetRatioFinancialAnalysis$Working capital=250,000Current ratio=2.0Acid-test(or quick)ratio=2.0Cash ratio=0.8 Liquidity AnalysisLong-term Debt&SolvencyAnalysis Debt to asset ratio=12.33%Debt to Equity ratio=14.07%Long-term Debt to Equity ratio=12.40%Fixed asset to equity ratio=1.1074 The debt to asset ratio of Starfire is far lower than the industry average.Starfire has strong debt paying ability,therefore,it can borrow moreSolvencyAnalysis$FinancalSummarySchemeSchemeScenarioOneScenarioTwoScenarioThreeProfitabilityHigh3Middle2Low1RelatedRiskLow3High1Middle2Note633PART 3 CAPACITY ANALYSISDefinitionBasicdataTherequiredcapacityTheremainingcapacityConclusionExpectedcapacityProductivecapacityActualcapacityNormalcapacityTheoreticalcapacityCapacityAnalysisIn ideal circumstances3652454.103890=42,655,436 milesHistorical capacity11,250,000 miles in 2012Maximum output not increasing costsNormal operating conditionsEnsures all routes to be completed.11,250,000+156,000=11,406,000 milesRealized in the year end125,000*（90+2）=11,500,000miles in the end of 2013DefinitionCapacityAnalysis125,00015.6K15.6K250,000ActualcapacityActualcapacitypertruck/perperson11,250,00090=125,000miles1125000085%(3659.47090)=54.1038miles/hSpeedTheoreticalcapacity3652454.103890=42,655,436milesAdditionalcapacity150023657=156,000miles125,000Scenario1Scenario2Scenario2alittlehigherthanNotexpandingRiskMatrixStrategicAnalysisStrategySummarySchemeSchemeScenarioOneScenarioTwoScenarioThreeStrategyMiddle2High3Low1RiskHigh1Low3Middle2Note363PART 5 SUMMARYFinancialCapacityAcceptFHPsproposalWhichmethodExitingCapacityOutsour-cingReinvestmentShort-termDecisionShort-termDecisionLong-termDecisionYESYESNONOConsistentwiththeExpandingstrategyTakeadvantageofthepositiveeffectofDFL,wheneconomyisgrowingMostacceptablerisksSummaryPartsScenarioOneScenarioTwoScenarioThreeFinance633*30%1.80.90.9Capacity132*30%0.30.90.6Strategy363*40%1.22.41.2Total3.34.22.7ComprehensiveSummaryInthelongterm,Scenario2isthebestselection.StarfireneedtoinvestinadditionaltruckstomeettheneedsofFHP.RevenueCostProfit498,300397,500100,800343,200249,90093,300ComparisonofSolutionsABA ATwotrucksRun250,000milesSurpluscapacity94,000milesProvideoutsourcingserviceB BOnetruckRun125,000milesDeficientcapacity31,000milesOutsourcingindependentcontractorsSummaryOption A or B?ShorttermLongtermlJudgewagesconsideringdrivingmileageslEstablishacomprehensivebudgetsystem,focusoncashflowbudgetlImprovethecreditsystemmeasurestodecreasetherateofbaddebtsFinancial improvement:Budget and Control costSummarylSlipseating(arrangeanotherdriver)lTrailerpools(dropandhook)lSalarysystem(hourlywage+mileagewage)lEstablishlongtermcooperativerelationshipswithcustomersCapacityimprovement:EnhanceinternalmanagementRiskmanagement:Avoid,ReduceorMitigatelCustomersatisfactioninvestigationlMonitoringFHPsoperatingsituationlMonitoringcashflowslPayingmoreattentiontoservicequalitylIncreasingpotentialcustomerslService differentiationlAnalysis of future economyFurther Solutions$Thank you for your time!