Gainesboro machine tools corporation case study

Case Analysis of GAINESBORO MACHINE TOOLS CORPORATION (CON): A New Financial Simulation Model

Introduction Pinnacle Machine Tool Co. This company specializes in manufacturing all kind of machine centres. Problem Statement How is Pinnacle going to avoid its company to fall off the market? Is entering a new market the only solution to defend itself from rival companies to take over the market or company? Don Anglos mentions in the case that the current situation of the Pinnacle shows that it is facing an increasing amount of rivalry with foreign manufacturers. Founded in , the Gainesboro Corporation was originally designed as a manufacturer for various machine parts. As the years went on and technology improved they revamped the company by entering into the new field of computer-aided design and computer-aided manufacturing.

The company is currently facing a tough decision as to what type of dividend to payout which has been inconsistent for numerous years.

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Third, the residual-dividend payout, which states that the firm will only pay when it offers projects that have positive NPV has the potential to build trust with investors, especially with more institutional investors being value-oriented. Gainesboro will only pay dividends with any unused funds from the projects.

If dividend is necessarily paid, how much dividend will be paid to benefit the shareholders most in the long run? Situation Analysis After two massive restructurings, the firm seems to get in a quick track to development. Campbell has to take a close look at how the dividend decision impacts the financial decision and the resultant effects on investment decision and the market values of the entire firm and the equity.

Introduction Gainesboro Machine Tool Corporation has a tradition of strong earnings and predictable growth.

Essay Preview: Gainesboro Machine Tools Case Summary

However since , dividends have started to outgrow earnings. By the first half of , they have not declared dividends yet The stock will climb higher and higher - Allowing you to leisurely watch as your money doubles and triples in a matter of weeks. All you need is an online brokerage account and a live up-to-the minute intraday graph.

However, if you know how to use these simple tools and, you have the ability to focus on the market for approximately one hour each week. Of course, that's enough to live on and then some. It actually takes me more time to drive to Jean Canil Instructions 1. Assignment two can be done in a group of no more than 2 students and it is the responsibility of the group to ensure that each student has contributed equally.

Johnford Machine Tools' (Roundtop Machinery) Corporate Video

The first page of your assignment should specify your name s , student number s and the assignment title. The assignment should be completed in Word format.

Gainesboro Machine Tools Corporation Harvard Case Solution & Analysis

Please show all workings. Late assignments will not be accepted unless arrangements have been made with myself before the due date. In response to the market collapse, a spate of companies had announced plans to buy back stock, some to signal confidence in their companies as well as in the U. Both loans were to be repaid on December 31, Publication Date: December 14, Source: Darden School of Business.

If Larson chooses to pay out dividends, she must also decide on the magnitude of the payout.

gainesboro machine tools corporation dividend alternatives

A subsidiary question is whether the firm should embark on a campaign of corporate-image advertising and change its corporate name to reflect its new outlook. The case serves as an omnibus review of the many practical aspects of the dividend and share buyback decisions, including 1 signaling effects, 2 clientele effects, and 3 finance and investment implications of increasing dividend payout and share repurchase decisions. This case can follow a treatment of the Miller-Modigliani dividend-irrelevance theorem and serves to highlight practical considerations in setting dividend policy.

If you'd like to share this PDF, you can purchase copyright permissions by increasing the quantity. Quantity price applied. Add Copyright Permission. Copyright Permission Qty:. Current Stock:. Buying for your team? In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management. This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

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Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future. Pest analysis is very important and informative.

Essay Preview: Gainesboro Machine Tools Corporation

In this model, five forces have been identified which play an important part in shaping the market and industry. Initially, fast reading without taking notes and underlines should be done. Would it divide into two distinct races that live separately from one another as Wells describes The process of going public generally took from 60 to days. The challenging diagnosis for Gainesboro Machine Tools Corporation and the management of information is needed to be provided.

It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

Gainesboro Machine Tools Essay

To analyze the business objective and its opportunities and threats, following steps should be followed:. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition.


Gainesboro Machine Tools Corporation. SC manufactured of machinery parts including presses,dies and molds Business Analysis--BCG. Gainesboro Machine Tools Corporation. Dividend Payout Policy. Financial model . Model assumptions; Pro-forma financial statements: I/S B/S.

The five forces are discussed below:. Vrio analysis for Gainesboro Machine Tools Corporation case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable.

Case Study : Gainesboro Machine Tools Corporation

Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Rare and valuable resources grant much competitive advantages to the firm.