Literature Review on Capital Structure

The ultimate objective of every company is to increase firm’s performance which in fact, associated with firm’s strategic decisions. Decisions regarding choice of leverage are one of the strategic decisions; firms often take this type of decisions to increase their performance.

Corporate Value Chain of Maytag Company

Primary activities

Suppliers

One of the major Suppliers of Maytag is  Honeywell’s Micro switch Division, the company has also made arrangement with large steel supplier that led to a team effort to establish hardness specifications on our cabinet & door steel to improve fabrication. This effort was very successful; company is supplying our entire steel requirement.  Moreover, the strategic alliance has been also taken place between Maytag & suppliers, in order to speed up the application of new technology to new products & process.

Key Success Factors in Video Game Industry

Marketing related

 

In the past the marketing of video game was unsophisticated and advertising lead to word of mouth publicity and sometimes only consistent of adds In leading video games consumer magazine but in 1994, video game marketing was becoming more significant factor which are as:

Muffler Magic Case Solution

Muffler Magic is a fast growing chain of 25 automobile service centers in Nevada established 20 years ago by Ronald Brown. Muffler Magic provide various types of services like oil changes, brake jobs, and engine repair it means all types of services provided from tire to engine repairing etc.

Porter's Five Forces Model of Whirlpool Corporation

Threat of New Entrants

                                                      

Economies of Scale

The trend continued towards dedicated manufacturing facilities combining product line production in fewer large plants to gain economies of scale. All the major home appliances manufacturers were heavily engaged in renovating and building production facilities to gain economies of scale, improve quality, and reduce labor and material costs. So it would be a high barrier for the new entrant.

Important Thesis Topics in Economics

• Are educated mother the answer for alleviated poverty 
• Are the prices of petrol, diesel, Kerosene and CNG co-integrated?
• A study on (any currency): present situation and future prospect
• Auto correlation forecast the future or not?
• A study on impact of law and order condition on major key economic indicators in (any country)

Marketing Research Topics

• A study to find out significant factors considered by students in selection of university for any degree program
• A study on (any country) pharmaceutical industry: Factors affecting the growth and shift in marketing share from multinational to national
• A study on factor effecting companies to change their marketing strategies over the change in product life cycle

Video Game Industry Porter's Five Forces Model

Porter’s five forces model is one of the environmental analyzing tools; which is used to analysis the external environment of a firm. According to the Porter’s five force model, the industry dynamics for each of the two strategic groups were identified to be as follows.

PEST Analysis of Global Home Appliance Industry

Political and Legal Factors 

US Department of Energy (DOE): requires energy conservation improvements for refrigerators and freezers & clothes washers.

Impact: All the industries will have to invest heavily in the Engineering (Process) R&D to keep up with this requirement. This will not only mean rise in cost of manufacturing these appliances but also keep on innovating new ways to save energy and be more competitive in the Appliance Market.

Literature Review Example in Finance

A study was conducted by Arugaslan, Ed and Ajay (2007) to evaluate the risk-adjusted performance of US mutual funds. Study employed a sample of 20 largest US-based mutual funds for the period 1995-2004. Study used Quarterly returns for computing the measures of return and risk. Modigliani and Modigliani (M Square) and Sortino Ratio are used to evaluate the performance. Study identified the performance evaluation over a five-year (2000-2004) and ten-year (1995-2004) investment horizon. The authors concluded that funds with the highest returns faced higher risk due to which funds lose attractiveness.

Drivers of Change in US Major Home Appliances Industry

Industry Consolidation

Home appliance industry of Europe and U.S. had matured, so consolidation is best option for the existing firms. They either acquire the regional players to get economies of scale or merge with the rivalries in order decrease the competition. 

Agency Costs and Capital Structure Review

Ang S. James et al. (2000) used two alternative measures of agency costs. First they take direct agency costs, calculated as the difference in dollar expenses between a firm with a certain ownership and management structure and the no agency cost base case firm. This measure captures excessive expenses including perk consumption. They standardized expenses by annual sales.

Literature Review on Determinants of Capital Structure

Now researcher presents a brief discussion on the factors that may have an effect on the firm's debt-equity choice. Various researchers have taken different variables to test capital structure. According to Titman and Wessels (1988), these factors are tangibility of assets, size, growth opportunities, profitability, non-debt tax shields, earnings volatility, uniqueness, and industry classification. But Harris and Raviv (1991), includes advertising expenditure and Research & development (R&D) expenditure in these factors list.

Taxes and Capital Structure Review of Literature

Hennessy A. Christopher and Toni M. Whited (2005) argued that traditional formulations of the financing decision place the firm at date zero with no cash on hand. Such firms are at the debt versus external equity financing margin, since each dollar of debt replaces a dollar of external equity. The problem with the traditional approach is that corporations do not spend their lives at date zero. Rather, they evolve in a stochastic way, finding themselves at different financing margins over time.

Industry Dominant Traits of US Major Home Appliances

Economies of Scale

All the major home appliance manufacturers were trying to gain economies of scale by renovating and building production facilities in order to improve quality and reduce material costs.

What is Business Finance

Business finance refers to money and credit employed in business. Finance is the base of business. It is required to purchase assets and for the flow of economic activities. It is infact the life blood and nerve centre of commercial and industrial enterprises. Business finance may be defined as the provision of money at the time when it is needed by a business.

Literature Review on Mutual Funds

A study was conducted by Grinblatt and Titman (1989) to examine the superior stock selection abilities of mutual fund managers through which researcher generated abnormal returns. For this purpose a sample of 274 funds was taken from 1974 to1984. Study applied Jensen Measure and compared the abnormal returns of active and passive investment strategies both with and without transaction costs, fees, and expenses. The results showed that the actual returns of these funds do not exhibit abnormal performance indicating that investors cannot take advantage of the superior abilities of these portfolio managers by purchasing shares in the mutual funds.

Key Success Factors of Perrigo Company

Critical success factor (CSF), term was first used in business and data analysis world; it is also known as Key success factor (KSF). Key success factors are the combination of features that are important for a project or company to achieve its objectives or mission and progressing towards the vision. These are critical activities or factors required for ensuring the success of an organization or a company. These critical factors must be needed the continual and special attention of the manager or organization to ensure success and to bring high performance.

Key Success Factors in Home Appliance Industry

Brand Image

Brand image plays an important role in selecting the product. Whenever consumer reached to a retailer he always has brand name in his mind, which is created through experience.

SWOT Analysis of Perrigo Company 2014

Perrigo is a one of the leading multinational healthcare company that manufactures and distributes consumer products, nutritional products, OTC and prescription pharmaceuticals and active pharmaceutical ingredients (API).  The Perrigo is the globes' leading manufacturer and distributor of OTC pharmaceutical items for the store brand market. Its primary manufacturing facilities, network of location and markets are as follows are the United Kingdom (UK), United States, Mexico and the Israel. Here is the SWOT analysis of Perrigo Company.

Supply Chain Management Thesis Topics

• Barriers to implement green supply chain management in manufacturing industries
• Barriers of low radio frequency identification (RFID) implementation in supply chain
• Business to business e-procurement: success factors and challenges to implementation in (any country)
• Critical success factors of quality management in supply chain

Disadvantages of Advertising

A business produces goods for selling them at a profit. In order to stay in the market and earn profit, it does not use one simple tool or instrument for pushing its sales. It unites a set of strategies to grasp profit through customers’ satisfaction. It has been universally accepted that advertising is an important tool of marketing of products.

Competitive Profile Matrix for Coca Cola

The Coca-Cola is the world's largest beverage company, offering consumers almost 500 still and sparkling brands. Coke has the world's largest beverage distribution network; consuming in more than 200 countries enjoys the Coke’s beverages at an average of nearly 1.6 billion servings a day.

SWOT Analysis of Pepsi Company 2014

Pepsi is the world’s second largest beverage and food company based on net revenue. In North America it is first largest Beverage and Food Company by net revenue. PepsiCo is a multinational Corporation, offering manufacturing, distribution and marketing of soft-drinks, beverages, grain-based snack foods and other products.

SWOT Analysis of Coca Cola Company 2014

The Coca-Cola is the world's largest beverage company, offering consumers almost 500 still and sparkling brands. Coke has the world's largest beverage distribution network; consuming in more than 200 countries enjoys the Coke’s beverages at an average of nearly 1.6 billion servings a day.

SPACE Matrix for Pepsico

Pepsi is the world’s second largest beverage and food company based on net revenue. In North America it is first largest beverage and Food Company by net revenue. PepsiCo is a multinational Corporation, offering manufacturing, distribution and marketing of soft-drinks, beverages, grain-based snack foods and other products.

What are Debentures and Their Types

The term "debenture" is derived from the Latin word 'debere' which means to owe a debt. A company may raise part of its capital by obtaining loans. The short term capital is mostly met by the company from the banks in the form of overdrafts and cash credits. The long-terms may be raised by issuing of debentures. Debenture thus is a long-term finance raised by a company through public borrowing.

Optimal Capital Structure Review

Strebulaev A. Ilya (2007) discussed in article that optimal capital structure research based on regularities in the cross section of leverage to discriminate between various theories of financing policy. Researcher use book and market leverage and develop relationship with profitability, book to market and firm size. Changes in market leverage are largely explained by changes in equity value. Past book to market rations help to predict current capital structure. Firms use debt financing conservatively, and leverage of stable and profitable firms appears low. Even if firms have target leverage ratio they slowly moved toward it.

SWOT analysis of Nokia 2015

Strengths                                                  

• Nokia world’s largest producer and manufacturer of cell phones as well as has the largest distribution network around the world.
• It is also known for the Creativity, Innovativeness, durability & reliability.  
• It has very good financial position, higher return on equity (ROE), return on assets (ROA) and net profit margins (NPM)

Porter's Five Forces Model of Global Home Appliance Industry

Home appliance industry is mainly consisting of the following players Whirlpool, Maytag, Electrolux Haier, General Electric (GE) and Bosch-Siemens. All these players produce wide range of quality products. Vikings and Sub-Zero are niche players, each producing one exclusive premium quality product line.

Drivers of Change in Video Game Industry

Drivers of change are basically the change agents that influences in reshaping the industry and varying competitive conditions. They are ways in order to classify the driving force analysis that includes.

Porter's Five Forces Model of Coca Cola

Bargaining Power of Suppliers

Most of the ingredients needed for beverages and snacks are basic commodities such as potatoes, flavor, color, caffeine sugar, packaging etc. So the producers of these commodities have no bargaining power over the pricing for this reason; the suppliers in this industry are weak.

What is Unemployment and Its Causes

Unemployment is a major economic and social problem of our country. It is rural as well as urban. It is very serious and alarming issue and it has given birth to many evils. It is found not only among educated people but there are millions of laborers, peasants and unskilled or half skilled workers who are unemployed today. It demands its immediate remedy because it threatens the peace, prosperity and stability of free world.

The Pecking Order Theory Review

Myres (1984) worked on pecking order theory and suggested that management follows a preference ordering when it comes to financing. First internal financing of investment opportunities is preferred, in part because it avoids the outside scrutiny of suppliers of capital.  Also, there is no flotation costs associated with the use of retained earnings. A target dividend payout ratio is set in keeping with long run investment opportunities.

SWOT Analysis of Walmart

Wal-mart is the world’s largest retailer and also the world’s largest private employer having over 2 million employees. It has more than 8,500 stores in 15 different countries, with 55 different names. It also operates in 50 states of U.S under its own name. According to the Global 500 and Fortune’s 500 lists, Wal-Mart Stores sustain its top position for two consecutive years. And it makes Wal-mart one of the largest company in the world.

Factors Determining the Requirements of Fixed Capital

Fixed capital is the fund which is required for the purchase of those assets that are to be used over and over for a long period. Such assets are land, machinery, building, payment rights, copy rights and other overhead expenses. These expenses are born regardless of the number of units produced. Fixed capital is, thus, the funds which are required not only for the purchase of fixed assets but also non-current assets at the start of business.

Mutual Funds Review of Literature

A study was conducted by Artikis (2002) to analyze the risk adjusted performance of equity mutual funds operating in Greek from 1995-1998. For this purpose daily, weekly and monthly returns were calculated and compared with the GIASE. These funds were ranked on the basis of standard deviation, total risk, and techniques of Treynor (1965), Sharpe (1966), and Jensen. The results showed that coefficient of variations of seven mutual funds were higher than the GIASE whereas the total risk of all the seventeen mutual funds was lower than the GIASE. On the other hand Treynor (1965) index showed values higher than the General Index of the ASE.

Human Resource Management Thesis Topics

• A study on the perceptual between overtime and output
• A study on the effect of locus of control on academic performance of the students at tertiary level
• Awareness of Employees about their actual compensation and its impact on their motivation
• Academic background of managers and their effectiveness: services, roles & contribution

What are Mutual Funds and Their Types

Mutual fund is a trust which pools the savings of group of investors for investment in capital market instruments. Mutual fund is an ideal tool or instrument for individual who want to invest in stocks, debentures and other securities which otherwise is difficult for them to invest.

Importance of Advertising for Business Promotion

Advertising means the publicity of products and services for the purpose of selling them to a larger number of buyers. In past times, the products and services were advertised by the beat of drums. In those days the goods were not produced in such large quantities as today because the buyers were comparatively few in numbers.

Finance Dissertation Topics for MBA

• Active borrower gross loan portfolio Granger causality: An empirical analysis of micro-finance in (any country)
• Analysis of open-end and close-end mutual fund with respect to return, growth and investor preferences
• Are inflation in SAARC countries are co-integrated?

Competitive Profile Matrix for Amazon.com

Amazon.com Inc. is a U. S. based multinational electronic commerce organization. Amazon.com is the globe’s largest online retailer company. It also produces consumer electronics such as e-book reader, Amazon Kindle and is a largest supplier of cloud computing services.

Thesis Topics for Finance

• A comparative study on foreign Islamic banks and local Islamic banks on (any country)
• An investigation (SURE) co-integration between gold and energy prices at (any index)  
• An investigation of SURE between GDP /N and interest rate
• A study of relationship Capital Structure and firm’s performance of pharmaceutical companies listed in KSE

What is Commercial Bank and Its Functions

A bank is a financial institution which deals with money and credit it is organized on a joint stock company system primarily for the earning of profit. Commercial bank accepts deposits from individuals, firms and companies at a lower rate of interest and gives at higher rate of interest to those who need them. The difference between the terms at which it borrows and at which it lends forms the source of its profit.

Porter's Five Forces Model Example

Threat of New Entrants / Entry Barriers

Economies of Scale

The trend continued towards dedicated manufacturing facilities combining product line production in fewer large plants to gain economies of scale. All the major home appliances manufacturers were heavily engaged in renovating and building production facilities to gain economies of scale, improve quality, and reduce labor and material costs. So it would be a high barrier for the new entrant.

PEST Analysis of Beverage Industry

Political/Legal Factors

Food and Drug Administration (FDA) Regulation

All the food products manufacturers and producers are under the control of FDA. For instance, the food and drug administration certifies and tests new ingredients such as high concentration sweeteners prior to they are permitted to be used in beverages and soft drink production.

What is inflation and its causes

Inflation is a process in which there is continuous increase in the general price level and the money is continuously losing its value. In the words of Gardner Ackley, “Inflation may be defined as a persistent and appreciable rise in general level or average of prices”. It may here be noted that rising general level of prices does not mean that prices of all goods are necessarily rising. Even during inflation, the prices of some goods may remain relatively constant and a few others actually falling.