nbc1 2008, (c) 2008 jay a. smith 1 class 7 university product/service presentations

NBC1 2008, (c) 2008 Jay A. Smith

1

Class 7

University Product/ServicePresentations


2

University Product/Service Development Assignment Create new valuable product or service

Target customer: university members Students, faculty, admin, alumni, and/or researchers, etc.

Individual or Team Based – (1-2 people)

6/17 ( 火）　 10 分　 Presentation & Demonstration English Preferred


3

University Product/ServiceDevelopment Project (10 分間 )

1. Team Members:

2. Company/brand:

3. Customer problem target

4. Competition/Substitutes/Current Solution:

5. New Product/service/process:

6. Value message:

7. Diagram & PROTOTYPE

8. Demonstration


4

Class 8

Finance &AccountingIntroduction


5

Finance Strategy Supports Business

Business,TechnologyEnvironments

Opportunity Social,GovernmentEnvironments

BusinessStrategy

MarketingStrategy

OperationsStrategy• Organization• Human Resource• Production• R&D

FinanceStrategy • Cash Flow• Asset Utilization• Leverage • Make/buy• Lease/own

Do strategies support, fit each other, have flexibility, balance/manage risk?


6

Finance Provides Cash

Cash is good – “the food of business”Nearly everything a business does uses cash

Salaries, building, equipment, supplies, taxes

Insufficient cash leads to bankruptcy “you can’t eat an airplane” (can’t pay debts, etc.)

Too much cash is wasteful should be invested or returned

Cash = Sales or Income may receive cash before or after sale is recorded accounting is on an “accrual” basis (finance is about cash)


7

Sources & Uses of Cash

Sources of CashSales revenue collectionsSales of assets of the companyOutsider financing (financing via stock, loans)

Uses of CashExpenses (salaries, bills, supplies, taxes) Asset costs (plant, equipment, property, inventory)


8

Venture Companies Need Cash

Time

PotentialProfitReward

Money

Losses &Investments


9

Timing – Cash Flow Management

Cash now is better than cash later Collect from customer soonerPay supplier laterConserve cash now (It is always “now”)

Partnering, lease, borrow, trade, buy used, negotiate

Making versus buying?

But don’t be too stingy on key success factors


10

Revenue Models Subscription/Membership

Sports club, magazine, YahooBB, cable, NHK Volume/Unit-based

Restaurant, hair salon, clothing shop, taxi Advertising-based (user doesn’t pay or pays less)

Google, Broadcast TV, Newspapers Transaction Fee

Payment to conduct a transaction (Yahoo Auction, Ebay) Licensing/Syndication/Royalty

Fee to use (or resell) product, service, or mark Snoopy, Hello Kitty, AP, Star Wars, The Beatles, Incredibles Software, Copyrights, Patents, Trademarks, Franchises


11

Yahoo 2004 Revenues

Marketing Services Display Ads

Impressions Clickthroughs

Listings Classifieds

Transactions Auctions Travel, shopping

Fees ISP, broadband Premium mail services

$3.12 billion $4.59 billion

$0.45 billion $0.66 billion

From Form10K Filing with SEC(www.sec.gov or www.yahoo.com)

2004 2005


12

2000 年 Revenues

Died

Elvis Presley $35 million 1977 Charles Schulz $20 million 2000 John Lennon $20 million 1980 Jimi Hendrix $10 million 1970 Marilyn Monroe $4 million 1962 James Dean $3 million 1955

Licensing of image, name, music, artwork …


13

Licensing Revenues 1999 (LIMA)

Property type Estimated licensing revenue(in millions of dollars)

Art (famous images, Getty Images) 130

Character (Entertainment, TV, Movie) 2500

College (college name goods) 180

Fashion (designer label) 830

Music (before iTunes) 105

Non-Profit (Museum, Charities) 30

Sports (Leagues, Individuals) 790

Trademarks/Brands (e.g. Harley Davidson) 900

Publishing 30

Other 25


14

Key Financial Statements(also called Accounting Statements, Statements of Accounts)

Balance Sheet貸借対照表 Picture of

business at one point in time End of Quarter End of Year

“Balance Sheet as of March 31.”

Income Statement損益計算書 Business operations

during a period of time Daily Weekly Monthly Quarterly 　三ヶ月間 / 年四

回 Yearly

“Income Statement for the Year Ending

March 31.”


15

MBA Hand Out – Balance Sheet

Assets Current

Cash & Securities Accounts Receivable Inventory

Long-Term Property Plant Equipment Long-term Securities

Liabilities - Current Accounts Payable Notes Payable Current Long-Term Debt

Liabilities – Long-Term Long-Term Debt Mortgages

Equity Paid-In Capital Retained Earnings


16

Balance Sheet

Assets Debt & Equity

Short TermAssets & Investments

Long TermAssets

Long-term InvestmentAssets

Short TermDebt

Long TermDebt

Equity

BALANCE SHEET EQUITY == MARKET VALUE OF THE COMPANY (VALUATION)

BALANCE SHEET EQUITY = Investments from outside + Retained Earnings (Cumulative profits/losses)

ASSETS = DEBT + EQUITY

• EQUITY = ASSETS – DEBT• DEBT = ASSETS – EQUITY

“LEVERAGE” = DEBT / EQUITY

• Assets: things the company owns• Equity: ownership of the company (stock)• Debt: what the company owes (loans, bonds)


17

MBA Hand Out – Income Statement

Sales (Net Sales = Gross Sales – Returns) Expenses (product costs, indirect costs overhead)

Marketing Research & Development (R&D) (Selling), General & Administrative ((S)G&A) Depreciation (non-cash, usually small for Ventures)

Gross Profit Operating Profit/Income (or Loss) Net Profit/Income (or Loss)


18

　デルコンピュータの財務指標（単位　 100 万ドル）

1992 1993

総売上 Sales 2,013.9 2,873.2

売上原価 Cost of Sales 1,564.0 2,440.4

売上総利益 Gross Profit 449.5 432.8

営業費用 Operating Expenses:

　販売費・一般管理者 SG&A 268.0 422.9

　研究開発者 R&D 42.4 48.9

営業費用合計 Total Operating Expenses

310.3 471.8

営業損益 Operating Income (Loss)

139.1 (39.0)

純利益 Net Income (Loss) 101.6 (35.8)


19

Example: Park24 Times Parking


20

Park24 Co. Ltd.

年間売上

￥４２６億($420 million)

平成１４年１１月１日　－　平成１５年１０月３１日(“fiscal” year)


21

Park24 Comparative Balance Sheet

Current Assets

PP&E

Long-Term Assets

Intangible Assets

Total Assets

Investments

Current Liabilities

Long-Term Liabilities

Shareholder Equity

Retained Earnings

Common StockAdd’l Paid In Cap.Revaluation

AS OF DATE

Cash & equivalents


22

Income Statement (P&L, Profit & Loss Statement)

Net IncomePre-tax Income

Net Sales

Cost of SalesSG&AOperating Profit

Facility Closure Expenses

Time Period

Interest Expense


23

Income Statement (P&L, Profit & Loss Statement)

SUPERIOR SOFT CORP. 2003

Total Sales $4,000,000 100%

Cost of SalesMaterials/ parts $100,000 3%Manufacturing $150,000 4%Commissions $400,000 10%Shipping $80,000 2%Total Cost of Sales $730,000 18%Gross Profit $3,270,000 82%

Operating CostsSalaries $800,000 20%R&D $500,000 13%Rents $100,000 3%Marketing $300,000 8%Other $100,000 3%Total Operating Costs $1,800,000 45%

Operating Profit $1,470,000 37%Non- Operating Costs $50,000 1%Pre- Tax Profit $1,420,000 36%Taxes 426,000 11%Net Income 994,000 25%


24

Compare to Other CompaniesSUPERIOR SOFT CORP. 2003 Microsoft Industry

Total Sales $4,000,000 100%$10,000,000,000 $150,000,000,000

Cost of SalesMaterials/ parts $100,000 3%Manufacturing $150,000 4%Commissions $400,000 10%Shipping $80,000 2%Total Cost of Sales $730,000 18%Gross Profit $3,270,000 82% 90% 80%

Operating CostsSalaries $800,000 20%R&D $500,000 13% 10%Rents $100,000 3%Marketing $300,000 8% 15%Other $100,000 3%Total Operating Costs $1,800,000 45%

Operating Profit $1,470,000 37% 30%Non- Operating Costs $50,000 1%Pre- Tax Profit $1,420,000 36%Taxes 426,000 11%Net Income 994,000 25% 25% 20%


25

Comparative + Percent Based Income Statements

デルコンピュータの財務指標（単位　 100 万ドル）

1991 1992 1993

総売上 (Net Sales) 889.9 2,013.9 2,873.2

売上原価 (Cost of Sales) 607.8 1,564.0 2,440.4

売上総利益 (Gross Profit) 282.2 449.5 432.8

　販売費・一般管理者 (SG&A) 182.2 268.0 422.9

　研究開発者 (R&D) 33.1 42.4 48.9

営業費用合計 (Total Operating Expenses) 215.3 310.3 471.8

営業損益 (Operating Income) 66.9 139.1 -39.0

純利益 (Net Income/Net Profit) 50.9 101.6 -35.8

売上構成比 (% of Net Sales) 100 % 100 % 100%

売上純利益 (Gross Profit) 31.7 22.3 15.1

マーケティングセールス (Marketing & Sales) 20.5 13.3 14.7

研究開発 (R&D) 3.7 2.1 1.7

営業費用合計 (Total Operating Expenses) 24.2 15.4 16.4

営業損益 (Operating Income) 7.5 6.9 -1.3

純利益 (Net Income/Net Profit) 5.7 5.0 -1.3

　


26

Homework

Explore Park 24 Website http://www.park24.co.jp/ (J&E)and Kyocera Websites www.kyocera.com (E) www.kyocera.co.jp (J)

Email the amounts below for both companies to [email protected] :

Net Sales Net Income Cash BalanceFor Fiscal Year Ending October 31,2007 (Park 24)For Fiscal Year Ending March 31, 2008 (Kyocera)

Check website for helpful links http://www.12manage.com/ http://www.studyfinance.com/lessons/finstmt/index.mv

Find a good Japanese language finance/accounting website or book

nbc1 2008, (c) 2008 jay a. smith 1 class 7 university product/service presentations

Documents