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Mod 2:. Reformulation. Lauren Walaszczyk. Quick Background. Headquarter: Tokyo, Japan Products (enterprise activities) New/Used Cars Motorcycles Boats Financial Services Brands Acura America generates the most revenue. Internal Strengths: Diversified products Large amount of R&D
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Mod 2: Reformulation Lauren Walaszczyk
Quick Background • Headquarter: Tokyo, Japan • Products (enterprise activities) • New/Used Cars • Motorcycles • Boats • Financial Services • Brands • Acura • America generates the most revenue
Internal Strengths: • Diversified products • Large amount of R&D • Brand recognition • Large market share in Asia and America • Positive Financials • Opportunities: • Growing global demand • Depreciating Yen • New models • Demand for motorcycles • Offer low interest rates • Threats: • High competition • New competition: Tesla • Sales dependent on disposable income and gas prices • Rising raw material costs • Appreciating Yen • Natural disasters: Japan earthquake and Thailand flood • Internal Weaknesses: • Product recalls • Weak market share in Europe
Reformulation Enterprise Operations
Notes About NEA • 2% of sales for cash seemed sufficient as cash was quite large • Income taxes payable? Should I separate between NEA and NFL • Property on operating leases – leasing vehicles to other people.
NFL • Investments are related to affiliates and not part of regular operations.
Computing Income Tax Allocation 2010 2011 2012 2013 • Includes both deferred and current tax • Interest creates higher income instead of a tax shelter
CSE Check 2010 2011 2012 2013