Italian SME footwear company (Supply Chain and Logistics Management) Assignment

Italian SME footwear company (Supply Chain and Logistics Management) - Assignment Example The firm therefore adapted the use of third-party logistics functions. In the modern business age, the global environment has become very competitive requiring companies to deal with several different sources so as to ensure customer satisfaction as well as their own success. Such competitiveness is what has called for strategic plans such as use of third party logistics providers (Rodrigo 2012: 12).With such an approach, one has to look at both the benefits and disadvantages of the approach. In covering the benefits, it isnecessary to evaluate whether such decisions would be easily assimilated by the company.That is, issues such as product availability, labor force, meeting of customer expectations the third party logistics capabilities would have to be considered, amongst others that may arise in the process.Supply chains do not only involve materials, logistics, ICT and facilities but also include people in charge of operations or people involved in the chain operations. Thus, a m anufacture should always consider â€Å"supplying people† when designing the supply chain. That is, considering the right human expertise in the supply chain. Question 1 In analysis and evaluation of the Baldinini srl strategy, major focus will be on the effect towards the company’s performance. ... ms of inventory management, Baldinini stands a chance of lowering costs associated with storage, moving in and out of their products into the inventory. Most of all, the company is lifted off the burden of tax accumulation generated by increasing value of products included in the inventory. It becomes way affordable and manageable to hire a 3pl provider. In terms of company and customer relationships, the end receivers of Baldinini products fail to realize the company, this works negatively for Baldinini. Question 2 Traditionally, several companies have seen their advantage in competitiveness as a derivative from their product or services that they provide. With time, however this has changed as products and services become replicated by the day (Keifer, 2012).This possesses a greater risk of competing with counterfeits causing companies to shutter in their own market place. Several companies now no longer see their competitive advantage as a result of their products and services but as a result of how they run their businesses (Keifer, 2012). Supply Chain Management (SCM) plays a specific role in meeting customer demands, developing strategies, proper management of inventory, control of production orders and also maximization of customer fulfillment. One fundamental of SCM is the SCM Objectives. Supply chain management aims to meet rising customer demands or increase it in target markets. It also includes optimization of the supply chain with as minimum cost as possible, Nitl (2008).This approach maintains that a company should clearly understand their customer needs and also have a clear view of their market place. By having the objectives figured out, a company already possesses upper hand in the market place.By doing so, a company eliminates unnecessary activities

Real Estate Investment Analysis (data provided) Case Study

Real Estate Investment Analysis (data provided) - Case Study Example Also the rate at of absorption is very high. Meaning if a new investor comes into the market, more tenants are likely to shift to the new property. Finally, most of the occupants are employed, thus paying rent won’t be an issue. Discounted cash flow (DCF) is used in valuing projects, assets or investments by taking into account the time value of money. The concept of time value for money states that a shilling today is worth than a shilling tomorrow. As a result investors would rather get cash now rather than wait. The market is dynamic and factors such as inflation are unpredictable. The appropriate rate of discounting is known. This is not the case as the rate can be determined using methods such as Capital asset pricing model (CAPM) and the weighted average cost of capital (WACC). Secondly, the cash flow forecast was created based on the assumptions made. In the cash flow, projected income is subtracted from expenditure and taxes. The cash flow only considers cash. Depreciation and interest expense is non-cash item thus excluded from the cash flow. Income tax is charged against the taxable income. Therefore, in computing income tax, depreciation and interest were subtracted from the NOI to get the taxable income. Interest is computed using the amortization schedule as 8% on the beginning balance of loan in each year. NPV is an appraisal method that calculates returns on investments by discounting future cash flows and deducting them from the initial cost of the investment (Brigham & Houston 2009, p 338). It is a modern method in capital budgeting and it takes into account the time value for money. It also uses cash flows and not profits in assessing the viability of an investment. Cash flows are forecasted first, initial cost of investment determined and a required rate of return is given. The rate of return is the return that investors expect from their investments. The initial capital outlay is based on the value of assets. The value is 1.5M. This