Management strategy performance
Professional Assignment 1 – CLO 3
Review:
Two Contemporary Companies’ Use of Crowdsourcing: Threadless and Challenge Post on Page 77 Answer:
1. Why is Threadless so successful?
2. What competitive advantages do they have over comparable design firms using traditional strategies for product design?
3. What is the logic of crowdsourcing and why has it caught on in so many areas and for so many applications?
4. What are some potential traps and limitations of crowdsourcing efforts?
5. Identify at least two other businesses, or business functions, that you think could achieve breakthrough gains via the use of crowdsourcing.
Document your citations throughout the text of a 4 – 6 page paper; APA is the accepted format for all Westcliff University classes. Your papers must include an introduction and a clear thesis, several body paragraphs, and a conclusion. Top papers demonstrate a solid understanding of the material and critical thinking.
Discussion Question 1 – Applied Concepts (AC) – Week/Course Learning Outcomes
Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the week/course and lecture concepts to one of the following scenarios:
As applied to your current professional career
As applied to enhancing, improving, or advancing your current professional career
As applied to a management, leadership, or any decision-making position
As applied to a current or future entrepreneurial endeavor
OR
Using your textbook, LIRN-based research, and the Internet, apply the learning outcomes for the week/course and lecture concepts to a business organization that exhibits and demonstrates these concepts. You should develop a summary of the organization’s strategy and how they use these concepts to compete.
This is a learning and application exercise designed to give you an opportunity to apply concepts learned in a pragmatic and meaningful way that will enable you to gain valuable and relevant knowledge in an effort to augment your skill set and enhance your professional careers.
NYSE Market
s-
(Returns-Mean)
2
Feb-
1
6
9,559.53
10,207.37
10,436.92
10,441.00
10,489.76
10,785.51
10,764.75
10,721.74
10,721.85
10,481.89
10,838.46
11,056.90
11,222.96
11,512.39
11,492.85
11,536.08
11,761.70
11,967.67
11,875.69
12,209.16
12,209.16
12,341.01
12,627.80
13,367.96
12,652.55
12,452.06
12,515.36
12,527.14
12,504.25
12,963.28
13,016.89
13,082.52
12,208.06
12,208.06
12,457.55
11,374.39
12,299.03
12,644.81
12,696.88
13,060.65
12,264.49
13,049.71
13,049.71
13,066.60
12,736.88
13,004.74
13,171.81
13,231.18
13,545.21
13,913.03
13,913.03
13,614.10
Walmart
Market Return | MKT-MKT MEAN | CO-CO MEAN | Product | |||||||||||||||||||
Feb-16 | 65.91 | 68.20 | 62.35 | 66.34 | 60.17 | 263,102,700 | (2,501.47) | COVARIANCE | 480.99 | |||||||||||||
66.65 | 69.19 | 64.88 | 68.49 | 62.12 | 203,107,900 | (1,853.63) | 1.13 | (2,086.32) | company beta | 0.0000032564 | ||||||||||||
68.02 | 70.08 | 66.36 | 66.87 | 61.10 | 141,253,600 | (1.62) | (1,624.08) | (2.64) | 4,294.82 | Risk | 4% | |||||||||||
66.62 | 71.38 | 62.72 | 70.78 | 64.67 | 232,976,200 | 3.91 | (1,620.00) | (4,674.55) | Risk Premium | 8% | ||||||||||||
7 | 0.50 | 73.19 | 70.15 | 73.02 | 67.21 | 185,919,600 | 2.24 | (1,571.24) | 1.22 | (1,90 | 9.89 | Expected Return | 4.0000260 | 5% | ||||||||
73.13 | 74.35 | 72.42 | 7 | 2.97 | 67.16 | 137,723,500 | (0.05) | (1,275.49) | (1.07) | 1,370.47 | company variance | 147,706,746.83 | ||||||||||
72.81 | 75.19 | 70.89 | 71.44 | 65.75 | 212,460,000 | (1.53) | (1,296.25) | (2.55) | 3,311.23 | Standard Deviation | 12,153.47 | |||||||||||
70.30 | 72.12 | 66.83 | 176,983,900 | 0.68 | (1,339.26) | (0.34) | 461.33 | |||||||||||||||
7 | 1.83 | 72.57 | 67.07 | 70.02 | 64.89 | 170,716,200 | (2.10) | (1,579.11) | (3.12) | 4,933.89 | ||||||||||||
69.98 | 7 | 2.09 | 68.12 | 70.43 | 65.27 | 210,370,600 | (1,222.54) | (0.61) | 751.21 | |||||||||||||
70.25 | 72.48 | 68.83 | 69.12 | 64.05 | 162,527,500 | (1.31) | (1,004.10) | (2.33) | 2,34 | 4.03 | ||||||||||||
69.24 | 69.63 | 65.28 | 66.74 | 62.29 | 181,828,000 | (2.38) | (838.04) | ( | 3.40 | 2,853.08 | ||||||||||||
66.46 | 72.80 | 66.04 | 70.93 | 66.20 | 207,967,400 | (548.61) | (1,736.64) | |||||||||||||||
70.97 | 7 | 2.56 | 69.33 | 7 | 2.08 | 67.27 | 191,103,100 | 1.15 | (56 | 8.15 | (71.32) | |||||||||||
75.77 | 75.18 | 70.68 | 127,527,200 | 3.10 | (524.92) | (1,089.49) | ||||||||||||||||
75.09 | 79.44 | 7 | 4.96 | 78.60 | 73.90 | 182,345,800 | (462.97) | 2.40 | (1,109.06) | |||||||||||||
78.64 | 80.47 | 7 | 3.29 | 71.63 | 247,520,700 | (2.92) | (2 | 99.30 | (3.94) | 1,180.57 | ||||||||||||
80.34 | 79.99 | 75.71 | 143,448,100 | 4.31 | (93.33) | (306.64) | ||||||||||||||||
80.25 | 81.99 | 77.50 | 78.07 | 73.89 | 203,652,700 | (1.92) | (18 | 5.31 | (2.94) | 545.64 | ||||||||||||
78.31 | 81.12 | 77.73 | 78.14 | 7 | 4.42 | 161,153,600 | 0.07 | 148.16 | (0.95) | (141.42) | ||||||||||||
77.90 | 89.11 | 87.31 | 83.15 | 198,775,100 | 9.17 | 280.01 | 2,280.84 | |||||||||||||||
100.13 | 87.00 | 97.23 | 92.60 | 222,703,100 | 9.92 | 566.80 | 8.90 | 5,042.00 | ||||||||||||||
97.61 | 99.91 | 96.14 | 98.75 | 94.05 | 166,774,100 | 1.52 | 747.84 | 370.58 | ||||||||||||||
109.98 | 98.52 | 106.60 | 102.06 | 169,694,600 | 7.85 | 1,306.96 | 8,920.70 | |||||||||||||||
105.96 | 106.56 | 90.00 | 90.01 | 86.18 | 307,532,700 | (16.59) | 5 | 9 | 1.55 | (17.61) | (10,419.85) | |||||||||||
90.17 | 90.50 | 85.28 | 88.97 | 85.18 | 256,003,000 | (1.04) | 391.06 | (2.06) | (807.33) | |||||||||||||
88.00 | 89.66 | 84.84 | 88.46 | 85.20 | 163,581,800 | (0.51) | 454.36 | (697.20) | ||||||||||||||
87.67 | 88.10 | 8 | 1.78 | 82.54 | 79.50 | 248,483,300 | (5.92) | 466.14 | (6.94) | (3,237.10) | ||||||||||||
83.04 | 87.49 | 82.37 | 85.65 | 83.01 | 185,619,400 | 3.11 | 443.25 | 924.41 | ||||||||||||||
83.40 | 89.23 | 86.48 | 117,596,900 | 3.58 | 902.28 | 2,305.81 | ||||||||||||||||
88.86 | 100.21 | 87.62 | 95.86 | 92.91 | 205,659,500 | 955.89 | 5,358.27 | |||||||||||||||
95.80 | 97.66 | 93.69 | 93.91 | 127,212,500 | (1.95) | 1,021.52 | (2.97) | (3,038.48) | ||||||||||||||
102.60 | 92.89 | 100.28 | 97.76 | 216,421,000 | 6.37 | 147.06 | 786.12 | |||||||||||||||
99.96 | 106.21 | 93.31 | 97.65 | 95.19 | 191,936,600 | (2.63) | 396.55 | (3.65) | (1,449.18) | |||||||||||||
99.59 | 85.78 | 93.15 | 9 | 0.81 | 186,311,800 | (4.50) | (686.61) | (5.52) | 3,793.15 | |||||||||||||
91.64 | 99.35 | 95.83 | 93.93 | 160,739,700 | 2.68 | 238.03 | 1.66 | 394.07 | ||||||||||||||
95.92 | 104.18 | 93.11 | 98.99 | 97.02 | 166,799,500 | 3.16 | 583.81 | 2.14 | 1,246.74 | |||||||||||||
99.47 | 100.49 | 95.00 | 9 | 7.53 | 95.59 | 141,147,100 | (1.46) | 635.88 | (2.48) | (1,579.82) | ||||||||||||
104.15 | 96.79 | 102.84 | 101.34 | 110,606,900 | 999.65 | 4,284.03 | ||||||||||||||||
102.77 | 103.96 | 98.85 | 101.44 | 155,764,900 | (1.40) | 203.49 | (2.42) | (493.36) | ||||||||||||||
101.63 | 112.22 | 101.40 | 110.49 | 109.46 | 121,524,400 | 9.05 | 98 | 8.71 | 7,934.93 | |||||||||||||
111.30 | 115.49 | 109.63 | 110.38 | 109.35 | 91,288,100 | (0.11) | 1,005.60 | (1.13) | (1,140.82) | |||||||||||||
110.32 | 115.38 | 104.84 | 114.26 | 113.19 | 157,310,800 | 3.88 | 675.88 | 2.86 | 1,930.00 | |||||||||||||
113.68 | 119.86 | 113.49 | 118.68 | 118.15 | 105,362,500 | 943.74 | 3,204.50 | |||||||||||||||
118.85 | 120.71 | 114.58 | 117.26 | 116.74 | 96,406,900 | (1.42) | 1,110.81 | (2.44) | (2,715.34) | |||||||||||||
117.92 | 125.38 | 117.08 | 119.09 | 118.56 | 116,620,200 | 1,484.21 | 1,195.57 | |||||||||||||||
119.15 | 122.12 | 117.42 | 118.84 | 118.31 | 98,422,700 | (0.25) | 1,852.03 | (1.27) | (2,360.35) | |||||||||||||
118.86 | 119.89 | 112.68 | 114.49 | 127,907,500 | (4.35) | 1,553.10 | (5.37) | (8,347.09) | ||||||||||||||
1.02 | 12,061.00 | SUM | 22,606.74 |
IBM
Company Return | |||||||||||||
124.40 | 134.92 | 116.90 | 131.03 | 108.74 | 106,715,800 | 36.94 | |||||||
132.24 | 153.10 | 132.03 | 151.45 | 126.97 | 105,746,700 | 20.42 | 20.15 | (37,350.23) | 0.0000002501 | ||||
150.51 | 153.52 | 142.61 | 145.94 | 122.35 | 94,482,500 | (5.51) | (5.78) | 9,387.52 | |||||
146.56 | 153.81 | 142.90 | 153.74 | 128.89 | 75,249,000 | (12,198.25) | |||||||
153.00 | 155.48 | 142.50 | 151.78 | 129.71 | 76,973,700 | (1.96) | (2.23) | 3,504.21 | 4.0000020 | 0% | |||
163.60 | 149.92 | 160.62 | 137.26 | 69,425,000 | 8.57 | (10,930.67) | |||||||
160.65 | 164.95 | 157.85 | 158.88 | 135.77 | 69,706,500 | (1.74) | (2.01) | 2,605.72 | |||||
158.32 | 165.00 | 153.21 | 158.85 | 136.92 | 69,937,000 | (0.03) | (0.30) | 402.06 | |||||
158.06 | 15 | 8.53 | 147.79 | 153.69 | 132.47 | 78,327,200 | (5.16) | (5.43) | 8,574.91 | ||||
15 | 3.50 | 164.66 | 151.00 | 162.22 | 139.83 | 76,338,800 | 8.26 | (10,097.91) | |||||
161.95 | 169.95 | 158.30 | 165.99 | 144.37 | 69,470,400 | 3.77 | (3,514.14) | ||||||
167.00 | 179.25 | 165.34 | 174.52 | 151.79 | 88,764,500 | (6,922.02) | |||||||
175.00 | 182.79 | 172.89 | 179.82 | 156.40 | 59,820,600 | 5.30 | (2,759.39) | ||||||
180.48 | 182.55 | 172.09 | 174.14 | 152.66 | 79,477,000 | (5.68) | (568.15) | (5.95) | 3,380.61 | ||||
173.82 | 176.33 | 159.60 | 160.29 | 140.52 | 100,052,300 | (13.85) | (14.12) | 7,411.97 | |||||
160.05 | 160.42 | 149.79 | 152.63 | 133.80 | 103,329,100 | (7.66) | (7.93) | 3,671.44 | |||||
152.80 | 157.20 | 150.80 | 153.83 | 136.17 | 83,977,000 | 1.20 | (299.30) | (278.28) | |||||
153.58 | 156.03 | 143.64 | 144.67 | 128.06 | 93,293,500 | (9.16) | (9.43) | 880.11 | |||||
145.00 | 145.67 | 139.13 | 143.03 | 126.61 | 80,246,500 | (1.64) | (185.31) | (1.91) | 353.98 | ||||
142.98 | 147.42 | 141.64 | 145.08 | 129.78 | 78,296,700 | 263.70 | |||||||
145.35 | 162.51 | 145.21 | 154.06 | 137.82 | 125,345,600 | 2,438.83 | |||||||
154.10 | 154.90 | 146.21 | 149.12 | 133.40 | 135,079,900 | (4.94) | (5.21) | (2,953.15) | |||||
154.40 | 151.49 | 153.42 | 138.62 | 88,788,100 | 4.30 | 3,013.64 | |||||||
154.50 | 171.13 | 153.54 | 163.70 | 147.90 | 145,086,400 | 10.28 | 10.01 | 13,082.40 | |||||
163.19 | 164.13 | 144.40 | 155.83 | 140.79 | 102,364,900 | (7.87) | 591.55 | (8.14) | (4,815.35) | ||||
155.53 | 162.11 | 148.54 | 153.43 | 139.99 | 94,316,900 | (2.40) | (2.67) | (1,044.22) | |||||
153.34 | 162.00 | 144.11 | 144.96 | 132.26 | 122,745,300 | (8.47) | (8.74) | (3,971.21) | |||||
144.65 | 146.20 | 139.90 | 141.31 | 128.93 | 88,812,900 | (3.92) | (1,827.37) | ||||||
142.43 | 147.52 | 137.45 | 139.70 | 128.88 | 89,801,400 | (1.61) | (1.88) | (833.41) | |||||
138.28 | 150.54 | 138.20 | 144.93 | 133.70 | 94,954,000 | 5.23 | 4,475.12 | ||||||
144.76 | 147.93 | 142.00 | 146.48 | 135.13 | 79,195,100 | 1.28 | 1,223.34 | ||||||
145.98 | 153.35 | 144.81 | 151.21 | 141.00 | 95,867,900 | 4.46 | 4,555.78 | ||||||
151.71 | 154.36 | 114.09 | 115.43 | 107.64 | 198,093,000 | (35.78) | (36.05) | (5,301.56) | |||||
115.50 | 125.06 | 114.54 | 124.27 | 115.88 | 141,718,900 | 3,398.35 | |||||||
125.67 | 126.59 | 105.94 | 113.67 | 107.35 | 115,604,100 | (10.60) | (10.87) | 7,463.59 | |||||
112.01 | 135.41 | 111.69 | 134.42 | 126.94 | 120,387,100 | 20.75 | 20.48 | 4,874.83 | |||||
134.97 | 140.49 | 132.12 | 138.13 | 13 | 0.45 | 68,461,200 | 3.71 | 3.44 | 2,008.19 | ||||
139.31 | 142.12 | 133.58 | 141.10 | 134.80 | 74,687,300 | 2.70 | 1,716.74 | ||||||
141.51 | 145.39 | 136.26 | 14 | 0.27 | 134.01 | 80,197,500 | (0.83) | (1.10) | (1,099.83) | ||||
140.55 | 141.81 | 126.85 | 126.99 | 121.32 | 75,536,400 | (13.28) | (13.55) | (2,757.35) | |||||
127.10 | 140.15 | 127.06 | 137.90 | 133.31 | 61,341,600 | 10.91 | 988.71 | 10.64 | 10,519.67 | ||||
139.60 | 151.94 | 148.24 | 143.31 | 80,164,100 | 10.34 | 10.07 | 10,126.19 | ||||||
148.90 | 152.95 | 128.83 | 135.53 | 131.02 | 96,062,300 | (12.71) | (12.98) | (8,773.08) | |||||
134.85 | 146.57 | 133.33 | 145.42 | 142.24 | 61,812,000 | 9.62 | 9,078.59 | ||||||
145.59 | 147.35 | 130.90 | 133.73 | 130.80 | 91,419,500 | (11.69) | (11.96) | (13,285.53) | |||||
134.50 | 139.14 | 132.75 | 134.45 | 131.51 | 64,772,300 | 0.72 | 667.58 | ||||||
136.42 | 130.69 | 134.04 | 132.65 | 71,853,900 | (0.41) | (0.68) | (1,259.78) | ||||||
135.00 | 145.79 | 133.20 | 143.73 | 113,249,700 | 9.69 | 9.42 | 14,629.88 | ||||||
1,736.21 |
Portfolio
Corr(Walmart,IBM) | 0.0974297686 | |||||||
0.040000261 | 100% | 0.040000020 | 12153.46645 | |||||
1% | 9 | 9% | 0.0400000224126 | 12032.54558 | ||||
12153.4664530678 | 2% | 98% | 0.0400000248177 | 11912.87717 | ||||
3% | 9 | 7% | 0.0400000272227 | 11794.49932 | ||||
9 | 6% | 0.0400000296278 | 11677.45129 | |||||
95% | 0.0400000320328 | 11561.77347 | ||||||
94% | 0.0400000344379 | 11447.50741 | ||||||
93% | 0.0400000368430 | 11334.69578 | ||||||
92% | 0.0400000392480 | 11223.38245 | ||||||
91% | 0.0400000416531 | 11113.61245 | ||||||
10% | 90% | 0.0400000440581 | 11005.43195 | |||||
11% | 89% | 0.0400000464632 | 10898.88828 | |||||
12% | 88% | 0.0400000488682 | 10794.02992 | |||||
13% | 87% | 0.0400000512733 | 10690.90645 | |||||
14% | 86% | 0.0400000536784 | 10589.56856 | |||||
15% | 85% | 0.0400000560834 | 10490.06799 | |||||
16% | 84% | 0.0400000584885 | 10392.45752 | |||||
17% | 83% | 0.0400000608935 | 10296.79090 | |||||
18% | 82% | 0.0400000632986 | 10203.12282 | |||||
19% | 81% | 0.0400000657036 | 10111.50880 | |||||
20% | 80% | 0.0400000681087 | 10022.00518 | |||||
21% | 79% | 0.0400000705137 | 9934.66901 | |||||
22% | 78% | 0.0400000729188 | 9849.55793 | |||||
23% | 77% | 0.0400000753239 | 9766.73011 | |||||
24% | 76% | 0.0400000777289 | 9686.24414 | |||||
25% | 75% | 0.0400000801340 | 9608.15887 | |||||
26% | 74% | 0.0400000825390 | 9532.53328 | |||||
27% | 73% | 0.0400000849441 | 9459.42637 | |||||
28% | 72% | 0.0400000873491 | 9388.89698 | |||||
29% | 71% | 0.0400000897542 | 9321.00362 | |||||
30% | 70% | 0.0400000921593 | 9255.80430 | |||||
31% | 69% | 0.0400000945643 | 9193.35633 | |||||
32% | 68% | 0.0400000969694 | 9133.71615 | |||||
33% | 67% | 0.0400000993744 | 9076.93910 | |||||
34% | 66% | 0.0400001017795 | 9023.07924 | |||||
35% | 65% | 0.0400001041845 | 8972.18909 | |||||
36% | 64% | 0.0400001065896 | 8924.31947 | |||||
37% | 63% | 0.0400001089946 | 8879.51922 | |||||
38% | 62% | 0.0400001113997 | 8837.83502 | |||||
39% | 61% | 0.0400001138048 | 8799.31115 | |||||
40% | 60% | 0.0400001162098 | 8763.98930 | |||||
41% | 59% | 0.0400001186149 | 8731.90831 | |||||
42% | 58% | 0.0400001210199 | 8703.10403 | |||||
43% | 57% | 0.0400001234250 | 8677.60909 | |||||
44% | 56% | 0.0400001258300 | 8655.45273 | |||||
45% | 55% | 0.0400001282351 | 8636.66065 | |||||
46% | 54% | 0.0400001306402 | 8621.25484 | |||||
47% | 53% | 0.0400001330452 | 8609.25349 | |||||
Mean | 48% | 52% | 0.0400001354503 | 8600.67084 | ||||
49% | 51% | 0.0400001378553 | 8595.51713 | |||||
50% | 0.0400001402604 | 8593.79855 | ||||||
0.0400001426654 | ||||||||
0.0400001450705 | ||||||||
0.0400001474755 | ||||||||
0.0400001498806 | ||||||||
0.0400001522857 | ||||||||
0.0400001546907 | ||||||||
0.0400001570958 | ||||||||
0.0400001595008 | ||||||||
0.0400001619059 | ||||||||
0.0400001643109 | ||||||||
0.0400001667160 | ||||||||
0.0400001691211 | ||||||||
0.0400001715261 | ||||||||
0.0400001739312 | ||||||||
0.0400001763362 | ||||||||
0.0400001787413 | ||||||||
0.0400001811463 | ||||||||
0.0400001835514 | ||||||||
0.0400001859564 | ||||||||
0.0400001883615 | ||||||||
0.0400001907666 | ||||||||
0.0400001931716 | ||||||||
0.0400001955767 | ||||||||
0.0400001979817 | ||||||||
0.0400002003868 | ||||||||
0.0400002027918 | ||||||||
0.0400002051969 | ||||||||
0.0400002076020 | ||||||||
0.0400002100070 | ||||||||
0.0400002124121 | ||||||||
0.0400002148171 | ||||||||
0.0400002172222 | ||||||||
0.0400002196272 | ||||||||
0.0400002220323 | ||||||||
0.0400002244373 | ||||||||
0.0400002268424 | ||||||||
0.0400002292475 | ||||||||
0.0400002316525 | ||||||||
0.0400002340576 | ||||||||
0.0400002364626 | ||||||||
0.0400002388677 | ||||||||
0.0400002412727 | ||||||||
0.0400002436778 | ||||||||
0.0400002460828 | ||||||||
0.0400002484879 | ||||||||
96% | 0.0400002508930 | |||||||
97% | 0.0400002532980 | |||||||
0.0400002557031 | ||||||||
99% | 0.0400002581081 | |||||||
0.0400002605132 |
1
Running Head:
ASSIGNMENT
2
ASSIGNMENT
BUS 710 Finance for Managers
Professional
Assignment
1 – CLO 1
Antony V A
Professor: Dr. Kevin Grant
Westcliff University
February 9, 2020
Assignment
Investors use the closing price of stocks as a benchmark for determining and tracking the performance of a company over time (Lawrence, Ryans, Sun, & Laptev, 2016). The firms chosen for analysis are IBM and Walmart and the time period considered in our assignment is 4 years. The data used for the analysis is from Yahoo Finance (YHOO). The results from IBM after analysis:
COVARIANCE
36.94
company beta
2.50095E-07
Risk-Free Rate
4%
Risk Premium
8%
Expected Return
4.00000200%
company variance
147,706,746.83
Standard Deviation
12,153.47
On the other hand, the data from Walmart after analysis of the past 4 years was as follows:
COVARIANCE
480.99
company beta
3.25641E-06
Risk-Free Rate
4%
Risk Premium
8%
Expected Return
4.00002605%
company variance
147,706,746.83
Standard Deviation
12,153.47
The calculations and formulas are as shown in the attached excel workbook.
References
Lawrence, A., Ryans, J., Sun, E., & Laptev, N. (2016). Yahoo Finance search and earnings announcements. Available at SSRN 2804353.
C:\Users\ENVY
x360\Desktop\
Yahoo x