The Flight Operations Department at the Paragon Corporation Case Solution

Case Solution

The logical examination was poverty-stricken down all around autonomously taken after by a meeting to produce new thoughts. This session incorporated the parts of information that were decisive of honest to goodness concern. A third meeting to produce new thoughts incorporated a segmented CPS set up that mulled over the thought about a Future State and a related Current Situation. So to speak, there were three stages: Objective finding (Identifying challenges), Fact finding (Gathering data through conceptualizing), and Problem finding (Clarifying the issue). These stages were utilized for the introductory two stages before thought period.

Excel Calculations

Questions Covered

1. You are an analyst in Aikens Co., your portfolio manager says  “ I am fascinated by the US’s abundance of natural gas and there are many different ways to play this sector, I want look at two different plays Clean  Energy Fuels Corp. (CLNE) a small cap company in its early stage of development and Apache (APA) an industry behemoth which may be safer but may have less upside. Please advise whether we should invest in either or which firm offers the best long term value opportunity for our fund. 

2. Another portfolio manager approaches you with a request  for a recommendation. I have $100mm to invest and there are two very different firms for you to thoroughly analyze and suggest how I should allocate these funds. You may recommend no allocation to either firm, a specific allocation to each firm or 100 % allocation to one firm.The firms are Polaris Industries (PII)and 3D SystemsCorp (DDD). These firms are not comparables and present very different risk/return profiles, so that after you have clearlyidentified each profile, you must clearly state why you are selecting one over the other if you do . On the other hand if you find neither profile attractive you must clearly define why the risk/return profiles are unacceptable.

3. At this same firm, another portfolio manager assigns you the task of making a recommendation on the drug store industry.  She asks you for a recommendation on investing in either CVS (CVS) or Walgreen’s (WAG).  She asks you to thoroughly analyze the industry, its competitive position versus other retailers such as Wal-Mart and Amazon and after you have a view of the industry dynamics, please decide if either company is better positioned for the next 4 yearsor whether we should avoid this industry segment.