MJINI Case Study - 1100 Words

MJINI Case Study (Case Study Sample) Content: Student nameSupervisor nameSubject titleDate.MJINI caseIn 1999, Patrick Walsh and Jeffery Meade founded MJINI-urban youth enterprise; a research company to help sales firms gain insight of the market they were unable to reach. There were other companies providing the same services or services almost similar to what Jeff and Patrick offers. However the two, as both business graduate and young entrepreneurs, not only did they know what to sell, they knew how and where to find it. Little capital, lack of experience and attracting customers were their main challenges.The business venture Patrick and Jeff were investing in, to them, it was an interesting and ideal opportunity for them. This is because; for one, both were graduates of the Babson College. At Babson, they got introductions to a number of business network contacts. Babson also sponsored them to attend business conferences, equipping them with experiences about entrepreneurship. The introduction to business and their passion for entrepreneurship was a driving force in their venture. Secondly, Jeff and Patrick were both young at the time, and they were brought up in communities through which they gained characters that could enable them succeed in their venture. Their age would enable them to relate well to the youth, and their background ensured they would relate well to different cultures. These features made the business opportunity very interesting for the two young entrepreneurs.In addition, the market was very wide. MJINI main targets were the young consumer between the age of 12 and 34. According to one of the market estimates, which the MJINI had, 45.3 consumers, accounting for 890 billion annual spending, were between the age of 12 and 34. Another estimate showed that 70 million consumers spending 300 billion were of age between 14 and 24. The estimates showed that MJINI had a ready market to draw from it.To test the viability of their idea, Jeff and Patrick equipped themselves w ith recent measured estimates that showed how their target market performed. As expected, they learned that the market was heavily dominated by the youth whom they were focusing on. They also did research on their main competitors and from the result; they felt that the market was larger than their competitors would cover. They also found out that the competitors used the traditional and proven method of research. According to Jeff and Patrick, this was a weakness to capitalize on. They thought that being young and able to speak directly to the target consumers would put MJINI in a position to offer better and superior research than their competitors.Jeff and Patrick had gained experience with urban youth market shortly after starting their company; however, they still lacked experience selling their product. Potential customers had to see what MJINI had done before, to figure out whether to buy from them. Lack of experience provided many problems. To overcome these probl...

Financial Accounting Marketing and Operational Issues - 1375 Words

Financial Accounting Marketing and Operational Issues (Research Paper Sample) Content: Name:Course:Date:FINANCIAL, ACCOUNTING, MARKETING AND OPERATIONAL ISSUES FACING AIGAmerican International group has been the leading insurer in the world until February 2005 when its share value started going down drastically. This was caused by a certain AIG member company that oversold a type of unregulated quasi-insurance well known as credit default swaps ("CDSsà ¢Ã¢â€š ¬Ã‚ ) to banks, hedge money, and other monetary institutions. It shows that the company was uninformed about these credit swaps.Unlike the other insurance services vended by the Commercial Insurance Group and other secondary insurers, these quasi-insurance products are not synchronized by national insurance sectors or the centralized government. They made an assumption that a certain credit evasion is not likely to lead in to another default.ÂThis applies only in other forms of insurance that are state regulated and those conducted by the CIG. In this case, they did not consider the fact tha t economic markets are interlocked, and one credit evade tends to cause other defaults. CITATION Dam08 \l 1033 (Arguello, 2008)When the home and credit markets caved in, the owners of mortgage-sponsored securities gained enormous losses calling upon AIG to shell out. As AIGà ¢Ã¢â€š ¬s losses accumulated, its credit ratings plunged and it was obliged to position additional guarantee for its great bonds. AIG was unable to pay its CDS requirements and its security necessities. This was bringing AIG into failure and it was necessary for the Federal Reserveà ¢Ã¢â€š ¬s $ 85 bailout, in 14th September 2008. This in return outlaid a 79.9% fair play ante by the government and there was change of chairperson rapidly.The government wants to force all of AIGà ¢Ã¢â€š ¬s businesses into the MA market in order to get the Federal bailout refund as soon as possible. The big company can be sold within a few months. This will definitely lead to consolidation of its insurance market as a whole. AIGà ¢Ã¢â€š ¬s capitalization is down, stock values are down, credit ratings are down and therefore credit is hard to get. This normally would be a buyerà ¢Ã¢â€š ¬s market, but there are no buyers left. Sovereign wealth funds and private equity are not enough to do sufficient purchasing of the company.AIG is not the first to experience these kinds of problems. Robert S. Rachofsky a financial advisor said that many companies, due to need for capital, the need to avoid downgrades and the need to do transactions like acquisitions end up looking for foreign capital, asset sales and MA transactions. MA transaction which is merging into another company, are not commonly done in U.S because it becomes hard for shareholders to allow them to buy shares in the company they buy to. CITATION Rob08 \t \l 1033 (Lopatin, 2008)The company, for around five years has been producing false financial statements. Securities and Exchange Commission reported that AIG used these statements to paint a good picture to analysts and its investors. After the public knowledge of the companyà ¢Ã¢â€š ¬s state it has now acknowle... Financial Accounting Marketing and Operational Issues - 1375 Words Financial Accounting Marketing and Operational Issues (Research Paper Sample) Content: Name:Course:Date:FINANCIAL, ACCOUNTING, MARKETING AND OPERATIONAL ISSUES FACING AIGAmerican International group has been the leading insurer in the world until February 2005 when its share value started going down drastically. This was caused by a certain AIG member company that oversold a type of unregulated quasi-insurance well known as credit default swaps ("CDSsà ¢Ã¢â€š ¬Ã‚ ) to banks, hedge money, and other monetary institutions. It shows that the company was uninformed about these credit swaps.Unlike the other insurance services vended by the Commercial Insurance Group and other secondary insurers, these quasi-insurance products are not synchronized by national insurance sectors or the centralized government. They made an assumption that a certain credit evasion is not likely to lead in to another default.ÂThis applies only in other forms of insurance that are state regulated and those conducted by the CIG. In this case, they did not consider the fact tha t economic markets are interlocked, and one credit evade tends to cause other defaults. CITATION Dam08 \l 1033 (Arguello, 2008)When the home and credit markets caved in, the owners of mortgage-sponsored securities gained enormous losses calling upon AIG to shell out. As AIGà ¢Ã¢â€š ¬s losses accumulated, its credit ratings plunged and it was obliged to position additional guarantee for its great bonds. AIG was unable to pay its CDS requirements and its security necessities. This was bringing AIG into failure and it was necessary for the Federal Reserveà ¢Ã¢â€š ¬s $ 85 bailout, in 14th September 2008. This in return outlaid a 79.9% fair play ante by the government and there was change of chairperson rapidly.The government wants to force all of AIGà ¢Ã¢â€š ¬s businesses into the MA market in order to get the Federal bailout refund as soon as possible. The big company can be sold within a few months. This will definitely lead to consolidation of its insurance market as a whole. AIGà ¢Ã¢â€š ¬s capitalization is down, stock values are down, credit ratings are down and therefore credit is hard to get. This normally would be a buyerà ¢Ã¢â€š ¬s market, but there are no buyers left. Sovereign wealth funds and private equity are not enough to do sufficient purchasing of the company.AIG is not the first to experience these kinds of problems. Robert S. Rachofsky a financial advisor said that many companies, due to need for capital, the need to avoid downgrades and the need to do transactions like acquisitions end up looking for foreign capital, asset sales and MA transactions. MA transaction which is merging into another company, are not commonly done in U.S because it becomes hard for shareholders to allow them to buy shares in the company they buy to. CITATION Rob08 \t \l 1033 (Lopatin, 2008)The company, for around five years has been producing false financial statements. Securities and Exchange Commission reported that AIG used these statements to paint a good picture to analysts and its investors. After the public knowledge of the companyà ¢Ã¢â€š ¬s state it has now acknowle...