AFM211 Lecture Notes - Lecture 8: Wells Fargo, Cash Conversion Cycle, Pricewaterhousecoopers
30 May 2018
School
Department
Course
Professor
GEMINI ELECTRONICS
I am Sarah Mclvor, CA, a junior partner of PwC conducing financial review of Gemini Electronics Ltd
(client) for their expansion
• Fiaial eie eas do’t hae to do ay ualitatie aalysis (all about the numbers and
interpreting them)
• If I a Saah ad I a doig fiaial eie of this liet, the I a’t do audit fo this
(ignore the audit in this case). I am a consultant in this case
This is for achieving senior partner!
Company background:
• US Based manufacturer of TVs (core activity)
• Founded in 2002 by Frank Wang- second generation American of Chinese descent
• Venture capitalist took the company public in Dec 2004
Company Goals:
• Want to expand to rival major Korean and Japanese electronic producers
• Expand into South America, Europe and Asia
• Expand product lines e.g. smart phones, e-readers and tablets, MP3, gaming consoles
• Ca uy Motoola’s ell phoe uits, Pal, Taia’s Ae, o ege ith Bose
Business model:
• Business resources
• Technology available to introduce web browsing, email, video phones
• Administrative and sales personnel
• Manufacturing- state of the art and highly automated
• Research facility on the CIT campus, opened in 2009
• Business activities
• R&D, manufacture TVs, source (from Asian contractors), market, sell
• Value proposition
• They are creating a brand in the U.S- for patriotic U.S consumers
• Reputation for excellent quality at an affordable price. Cheaper than Samsung.
• JIT production- sell units at greatly reduced prices
• Small company- more innovative and less prone to bureaucratic delays and infighting
• Highly automated assembly lines and can be quickly changed to produce different models
• Key channels
• JIT
• Big box retailers e.g. Best Buy, Walmart, Target
• Consumers
• End users that will buy these electronics- middle income, average consumers in U.S
• Cost structure
• Distribution savings (transportation and warehousing) to the consumer
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