Analysis of Marks Spencers International Strategy The WritePass Journal

Analysis of Marks Spencers International Strategy Introduction Analysis of Marks Spencers International Strategy IntroductionBackground to the Marks SpencerPast issues related to MSCurrent business climateReviewing its current international strategyRecommendations BibliographyRelated Introduction This report looks at the current international strategy adopted by MS, what are the past issues of the company, what steps it took during the time of downfall and how did it overcome its mistakes to bounce back in the global market with its new marketing strategy. The report is a mix of the academic research and the case study materials provided from which the final conclusion can be drawn as to the organization should proceed to internationalization or not during current market situations. Background to the Marks Spencer MS as a business organization came into existence in 1884 when it was just a penny bazaar. Today after 125 glorious years of growth and expansion, the company is the biggest retailer in the UK. Its product ranges from clothing, food products and household accessories etc. It entered the international market by franchising in countries such as Canada, USA, France, Belgium, and Ireland etc. By the end of 19th century, the international market was on the verge of collapse due to improper management by the senior management of the company. Thus the company decided to withdraw its presence from the international market and instead concentrate only on the home market. (MS company history 2011) Past issues related to MS MS first entered the global market by targeting Hong Kong and South Africa by exporting its products to these countries under the brand name of St. Michaels. Eventually it terminated its contract with Do dwells, which in turn proved to be a disaster for the company as problems related to the local retailers and franchise did not allow the company to build a strong base in the Asian market. (Bevan 2001). MS targeted the Canadian market through family tie-ups and was successful in operating 275 stores across the country. By the end of the 80’s it entered the US market through purchasing a retail market chain named King’s supermarket and Brooks brothers. But eventually the North American market did not accept MS as a competitive brand due to lack of clear branding and positioning of its products. It was unable to satisfy the customer’s demand; also a large number of competitors did not give MS a chance to sustain itself in the market. (Sparks 2005). MS did not offshore its productions to a different country due to quality concerns. This lead to increase in the cost of production which in-turn lead to charging higher price from the customers. On the other hand, the customers did not find the product that appealing so as to pay a premium price for its products. Similarly MS entered the European market without any strategy to be adopted and mainly on the belief that its current business techniques would hold good in catering these market as well. It started expanding its operations in a haphazard situation without a rational strategic approach to it.   (Mellahi et al. 2002) Current business climate By 2001 the company withdrew all its overseas operations and started concentrating in the domestic market. It is a good decision that they took, as there were many flaws that would have taken a lot of time to rectify along with huge losses to bear. The global market has currently undergone a recession stage where MS was deeply affected by decreases in profit margins by 11% from the year 2005 to 2007. Only during the year 2009 it had performed a profitable business with 17% and 5% increase in profits and market share respectively. Its time when the company is recovering and finding new opportunities to enter the international market with a planned and structured system to target the global consumer retail market. The company has carefully analyzed its past mistakes and then has structured its plans for the future.   The next three years is to concentrate mainly in restoring its stability in the market by improving the marketing of their products into various segments and classifications. At the same time it will set foundation for the future expansion through mediums such as space grows, improving multi-channel retailing and to built its capability further to become an international company. (Cameron et al. 1988) Reviewing its current international strategy On the basis of the past issues within MS and the steps taken to cater the current business climate, we have seen the changes related to the target market, mode of entry in the new market, benefits to enter new market, rectification of past mistakes and setting clear objectives for internationalization etc. MS has decided to stabilize itself from the recession and build up its market share in the UK for the next three years; simultaneously working on rational international decisions. These measures show that the company is clear about its vision and mission related to its future. The following points discussed below prove to satisfy me to go forward with the current international strategy, as they have understood the demand in the international market and should implement its strategy accordingly. The current major steps taken by the company are: To enter large markets such as India, China and Europe etc where there is already a demand for this brand. Concentration in one particular market and finishing it first and then moving to another area proves better positioning and marketing for the product. MS can change its marketing style from product driven to market driven. This helps the company to understand the regional demand of their products and to cater it accordingly. (J MS results and multi year strategy 2010) Franchising is a great option rather than opening their own store. Choosing the appropriate franchisee will improve market capturing and sales in that particular country. E.g. to cater the Indian market MS has tied up with Reliance group. On the other hand, the franchising schemes cannot be same in all the countries due to political, economic and social factors. This could create operational problem for the company in the long run. (Quinn and Doherty 2000) Concentration on brand positioning and brand awareness is been done so that the market is aware of the different products and brands the company is offering. Thus there will be no confusing in the mind of the customers related to brands. There can be a possible threat of not accepting a product by different markets or there can be a very low demand for the same. Also MS overseas do not keep food items and accessories unlike UK. Thus it creates huge difference in the brand positioning between two or more countries. (Eyring et al. 2011) The company never grasped the advantage of patented USP such as storm ware clothing range in order to distinguish itself from other company. Today they are looking forward for such restructured range. E.g. fusing storm ware technology into jeans, t-shirts etc. (J MS results and multi year strategy 2010) Flagship stores are to be placed in each region along with supporting stores such as smaller outlets and Internet channels so that the customer can feel a heavy presence of this brand in the market. Amazon platform is currently reliable for the company. (J MS results and multi year strategy 2010) It is practically not possible for the company to perform as planned in its international strategy. There would be uncontrollable factors, which may lead to variations from its objective. The degree of variation can also determine the success and failure of the company. Adequate financial back up is needed for research and development in each particular market. Thus the risk is also high which the company is taking, if not successful in sustaining in the new market there would be huge loss for the company. Recommendations The company should offshore its manufacturing units to different geographic regions so they can cater different markets well. This will change the British brand image to global brand image. Example: Apple Inc is an American company, which contains the software made in Hyderabad, India and the product manufacturing is done in Taiwan. Thus it contains a global brand image. Adopt decentralization system in the organization so that delegation of work can be encouraged, thus involving the regional departments to participate in the major decisions to be taken. Example: Toyota involves every subordinate to participate in the decisions to be taken so that they can receive more opinions before taking any decisions. MS in an umbrella company which involves different products such as food, GM clothing and accessories etc, it has to carefully balance the brand image of all these products simultaneously. It will be a challenge to the company to maintain all the demand in all the countries. Therefore the company should segment and position its products to the lowest possible level before entering that particular market i.e. appropriate portfolio management. (Eyring et al. 2011) MS is always special by taking a step forward at maintaining a high quality that reflects its brand image, thus the company can strongly capitalize on this image for future growth. (Bolland presentation 2010) For every market there should be a particular marketing style in order to attract more customers. The marketing can be through different medium such as Internet, radio, television, banners hording etc.   The marketing should be done keeping in mind the culture, traditions and lifestyle of different regions. The company should adopt the characteristics of a multinational company where the revenue generated should be retained in that department instead of transferring it to the home country. The benefit is that the company does not have to manage the foreign exchange from around the world plus these funds can be capitalize for further growth and expansion within that region. Bibliography Marks and Spencer plc. 2011. Company history. Available at: http://corporate.marksandspencer.com/aboutus/ourhistory   [Accessed: 21st Mar 2011]. Bevan, J. 2001. The Rise and Fall of Marks and Spencer. Profile Books, London. Paul Jackson, Leigh Sparks, (2005) Retail internationalization: Marks and Spencer in Hong Kong, International Journal of Retail Distribution Management, Vol. 33 Issue: 10, pp.766 – 783 Mellahi, K, Cameron. et al. 2002. International Review Of Retail, Distribution and Consumer Research. 12(2), pp 191-219. Eyring, M.J. et al. 2011. New Business Models in Emerging Markets. Harvard Business Review. Vol. 89. 2011. Quinn and Doherty. (2000). Burt et al.: Retail internalization and retail failure.(3), 207. _J MS results and multi year strategy_(video recording) 2010,London,UK. BOLLAND, M and STEWART, A. (2010, November 5th). MS Corporate Strategy.   [PowerPoint slides]. Presented at a conference in London, UK. WORD COUNT: 1602

Conflict ‘Romeo and Juliet’ Essays

Conflict ‘Romeo and Juliet’ Essays Conflict ‘Romeo and Juliet’ Essay Conflict ‘Romeo and Juliet’ Essay How of import is the subject of struggle in the drama Romeo and Juliet?Shakespeare’s drama. Romeo and Juliet. is the most celebrated love narrative in English literature. However love isn’t the lone subject that runs through the drama. Shakespeare makes this typical love narrative more dramatic when he pits the love affair in the context of household feuds. battles and deceases. The issue of struggle is every bit cardinal to this drama as the issues of love/honour/betrayal and decease. It should come as no surprise that Shakespeare would include struggles in this drama as otherwise the drama would merely be a dull statement on teenage love. Adding the struggles highlights the tensenesss that the adolescents feel between their fond regards to their ain households and each other. Besides. adding the struggle is of import for dramatic consequence. We see this clearly in Shakespeare’s Romeo and Juliet but besides see it in many modern signifiers of storytelling. such as movie.The movie Slumdog Millionaire’ is another illustration of two star-crossed lovers fighting to be together against their family’s wants. The struggle in the movie is between brothers. but besides with others outside the characters immediate households. The dramatic consequence of the struggle has the audience on the border of their place. willing the brace to get away their awful lives of maltreatment and unrecorded merrily of all time after. Slumdog is Romeo and Juliet for the twenty-first Century. As in Shakespeare’s drama. in Slumdog the audience are told what will go on in the narrative by manner of a prologue The prologue in Romeo and Juliet tells the audience the narrative and the stoping ( the two lovers will repair their household feuds by taking their ain lives )From forth the fatal pubess of these two enemies. A brace of star-crossed lovers take their life. . The prologue is an unusual storytelling device as it reveals the terminal of the narrative at the beginning. But it besides draws the audience is to cognize why the lovers take their ain lives and the audience remains shocked by that event. despite being warned about it. In Bas Learhmann’s movie the audience is surprised when Juliet wakes from her slumber to happen Romeo lying dead following to her. Her reaction of killing herself is a flooring stoping to the movie ( drama ) despite the audience cognizing what is coming. In Shakespeare’s prologue the Chorus describes tw o baronial families in the metropolis of Verona. The houses hold an ancient grudge against each other that remains a beginning of violent and bloody struggle.The audience are told that the households live in Fair Verona and who the chief characters in the drama are. So within a few proceedingss of the drama get downing the audience ( reader ) is primed with adequate information to bring forth an involvement to read on. The first scene comes instantly after the prologue and Shakespeare commences the scene with two Capulet retainers ( Sampson and Gregory ) who talk about the struggle between the two family’s. It is interesting that even though they are retainers ( Slaves ) they say that the family’s feud is their feud: The wrangle is between our Masterss and us their work forcesIt is of import to retrieve that the drama is written at a clip when retainers were obliged to honor their Masterss. and that included puting down their life for their betters’ . The tone o f the conversation between the two retainers replicates the struggle that we hear about in the prologue. Shakspere has established a yarn for the reader to follow here. The force of the struggle is clear when the two retainers talk of what they will make to the Montague adult females one time they defeat the Montague work forces. Brutalizing the adult females of a defeated enemy is something that has happened throughout history. True ; and hence adult females. being the weaker vass.are of all time thrust to the wall: therefore I will forceMontague’s work forces from the wall. and thrust his amahsto the wallThe public bash started by Tybalt is joined by members of both households. including the Montague and Capulet fathers’ . Sing old enemy ( Montague ) Capulet says to his married woman: My blade. I say! Old Montague is come.And boom his blade in malice of me.The street combat and hatred between the Capulets and Montagues is merely one signifier of struggle in Shakespea re’s drama. Shakespeare’s composing about struggle extends to Juliet’s household excessively. In Act 3 Scene 5 Juliet is told by her female parent that she will get married. Juliet’s sadness at this ordered matrimony ( she is told to describe to the church on Thursday ) leads to a struggle with her male parent who calls her a young luggage and disobedient wench’ . The household struggle repeats one faced by some immature adult females whose hubbies are chosen for them. This cultural duty is besides made clear by Juliet’s female parent when she says to Juliet that by the age of 14 ( Juliet’s age at the clip of the drama ) she was already pregnant with Juliet. The tradition of get marrieding misss off immature. and to wealthy older work forces. has mostly been overcome in some communities. nevertheless. in others it still creates tenseness. Sometimes with tragic results.The subject of struggle is of import in this drama because it refle cts the type of societal conditions that existed at the clip that Shakespeare wrote his drama. It is interesting that although our societal conditions have changed. the implicit in subjects and fortunes here could use to our society today. Young. violent. work forces contending over territory/honour and ( like Tybalt ) being killed in the crossfire. Shakespeare’s determination to speak about the unfairness of Juliet’s father’s insisting that she marry. may be a courageous effort to raise the issue of forced matrimony. But. instead. it could besides be seen as a beginning of merriment and gaiety for the Shakespearian audience. Despite some truly hard linguistic communication. Shakespeare’s Romeo and Juliet is a drama that transcends clip in footings of its implicit in subjects. This makes the drama as relevant now as it was when it was first played.

Epidemiology and research methodology Essay Example | Topics and Well Written Essays - 2000 words

Epidemiology and research methodology - Essay Example ctice of premarital and multiple-partners sex is undoubtedly more common in developed countries than in the developing ones due to the society’s visibly permissive attitude towards it (National Research Council, 2005). Consequently, the prevalence of sexually transmitted diseases has also increased. In an annual report of a screening programme by the Department of Health, it has been noted that Chlamydia trachomatis infection has become â€Å"the most commonly diagnosed bacterial sexually transmitted infection in the genitourinary medicine (GUM) clinics in the United Kingdom† (Department of Health [DH], 2004). As a result, the government has formulated several policies through publicly-funded researches with the aim to prevent further spread of the communicable chlamydial infection due to its social and economic negative impacts. In connection, this paper will attempt to determine specific proposed policies and their effectiveness in countering the negative social, health, and economic impact of chlamydial infections with regard to the epidemiologic trends by employing a qualitative research methodology which will specifically discussed later. In the United States, the Centers for Disease Control and Prevention (CDC) has accounted that people with chlamydial infections have recorded the most frequent case reporting for a sexually transmitted disease (CDC, 2010). The first annual report of the National Chlamydia Screening Programme (NCSP) pointed the same trend about chlamydial infections in the United Kingdom which led to its formulation in 2003 (DH, 2004). The NCSP was founded by the Department of Health in England due to the threatening health patterns caused not only by chlamydia but all the sexually transmitted diseases observed in both publicly and privately-funded surveys including those from the World Health Organization (WHO), the national government, as well as some organizations like AVERT (WHO, 2001; â€Å"STD Statistics,† 2010). In the last decade,

Iphone Essay Example | Topics and Well Written Essays - 250 words

Iphone - Essay Example With the latest iphone, they have a personal assistant assigned in the phone that can do functions of the phone with the user voice control. It is durable and has a great physical design which is the reason many are attracted to buy it. The unique design of this product makes it a unisex phone – it looks equally attractive with all. To top it off, apple provides all its amazing services in one product: the ipod music player, amazing camera, and a phone that can have applications customized according to your needs (Amit, 2007). One of the biggest disadvantages that the phone has is affordability. For majority of the population, buying the phone directly from Apple becomes a problem, but they can buy it from telecommunication companies on contracts for a lower amount. Another issue is Apple’s reluctance to introduce Flash in its system, barring the use of this amazing facility in the phone. It does not have a detachable battery that becomes an inconvenience sometimes to the user and no slot for expanding memory if

The stranger commentary Essay Example for Free

The stranger commentary Essay To get to the visiting room I went down a long corridor, then down some stairs and, finally, another corridor. I walked into a very large room brightened by a huge bay window. The room was divided into three sections by two large grates that ran the length of the room. Between the two grates was a space of eight to ten meters, which separated the visitors from the prisoners. I spotted Marie standing at the opposite end of the room with her striped dress and her sun-tanned face. On my side of the room there were about ten prisoners, most of then Arabs. Marie was surrounded by Moorish women and found herself between two visitors: a little, thin-lipped old woman dressed in black and a fat, bare headed woman who was talking at the top of her voice and making lots of gestures. Because of the distance between the grates, the visitors and the prisoners were forced to speak very loud. When I walked in, the sound of the voices echoing off the rooms high, bare walls and the harsh light pouring out of the sky onto the windows and spilling into the room brought on a kind of dizziness. My cell was quieter and darker. It took me a few seconds to adjust. But eventually I could see each face clearly, distinctly in the bright light. I noticed there was a guard sitting at the far end of the passage between the two grates. The lines 73-74 of the book The Stranger written by Albert Camus, it talks about Merusault indifference and his perception towards life. Through the successful use of syntax, imagery and tone, Albert Camus created an atmosphere of indifference while putting the reader in the protagonists shoes. Syntax is a key literary device used throughout the book, especially in lines 73-74. All Merusault narration varies in a way that reflects his attitudes toward the world around him. When describing his social or emotional situations, his sentences are short, precise, and offer minimal detail. For example Most of the Arab prisoners and their families had squatted down facing each other. They werent shouting. In this scene, Marie visits Merusault in the jail and relatives or friends visit other jail mates. Merusault tells only the essentials of what he sees and rarely uses any literary devices. His focus of attention is not on Marie but rather on the environment and surroundings. These meager descriptions display Merusault indifference to society and to the people around him. Like the vigil that he attended earlier in the story, he doesnt feel happy or sad when a person close to him passes away or visits during a time of dismay- hes indifferent. Another example is A little, thin-lipped old woman dressed in black and a fat, bareheaded woman who was talking at the top of her voice and making lots of gestures. This is viewed from a different perspective where his longer descriptive sentences are about others rather than himself. Although he saw Marie, he described the commotion around him and even what the people were wearing rather than detailing commenting about the beauty of Marie or even the way she dressed. This further shows that Merusault attitude towards the world is by far stronger than his attitude towards the people close to him. Imagery is perhaps the second key literary devices used in lines 73-74. By having Merusault narrate the story, it allows the reader to see and feel the way he feels. Furthermore, by describing what he sees enhances our understanding about his character and how he perceives things. For example To get to the visiting room I went down a long corridor, then down some stairs and, finally, another corridor. I walked into a very large room brightened by a huge bay window. In this excerpt, Merusault was told that Marie was there to visit him. On his way down to the visitors room, we can see that he was busy observing the objects around him rather than reminiscing about his past with Marie. This reveals another aspect about his character; he accepts the world as it is because he knows that nothing is dynamic enough to change the world. Seeing Marie would not revert his to-be-execution or world it get him out of jail. Although we may see this a negative aspect of Merusault, it does in a way benefit him. He has proven that he doesnt live a life of illusions but rather a life that is true to him. Another literary device that is powerfully used in this passage is tone. Tone is used in this passage For example My cell was quieter and darker. It took me a few seconds to adjust. But eventually I could see each face clearly, distinctly in the bright light. I noticed there was a guard sitting at the far end of the passage between the two grates. The tone of Merusault in this excerpt is mellow, calm and relaxed. This is rather ironic because someone who has been spending much time with him was there to visit and yet his tone wasnt joyful or anything. He should be exuberant that shes here to visit him but his tone shows otherwise. This reveals more about his character and how hes more or less emotionless. In conclusion, through the use of syntax, imagery and tone, Albert Camus has successfully described the protagonists indifference towards the people and the world.

Teamwork Analysis Essay -- Team Building Papers

Teamwork Analysis Abstract The purpose of this assignment is for each learning team to apply what team members are learning about successful teams to an in-depth analysis of itself. As teams go through development stages, the members learn how people feel about themselves and what the content of the task that is to be accomplished, based on each stage that is achieved. Describe the process your team has used to form, storm, norm, and perform. At this point, where do you believe your team is in the team formation process? Team A was initially formed by our professor, and everyone had their anxieties and questions about the other members. After the team was formed, a Team Charter was developed to gather information about everyone on one document, so we would all know each others strengths, weaknesses, and contact information. We realized that our team was a diverse team, with members scattered in several different time zones, including Africa. We had an initial conference call to check the temperature of everyone, but not everyone could participate in the call. Once everyone agreed to the team charter, it was suggested that each person on the team be a leader for a week, leaving the last week without an actual leader. The plan was to let the last week have everyone work together without a leader, but to draw virtual straws to decide who would post that week’s team assignment. The team members were listed in alphabetical order, which is the same order each person was assigned a week. Team A was successful at reaching the next stage of development, which is storming. The team had some initial problems durin... ... Caouette, M.J. & O’Connor, B.N. (1998). The impact of group support systems on corporate teams’ stages of development. Journal of Organizational Computing and Electronic Commerce, 8(1), 59-60. Chupp, M. (2002). Reaching for Higher Ground in Conflict Resolution. International Journal of Conflict Management. 13(2). Retrieved February 11, 2005, from EBSCOhost database. Horton, T. R. (1992). Delegation and team building: No solo acts please. Management Review, 81 (9), 58. Mckenna, P.J., Meister, D.H. (2002). Playing by the rules. Industrial Management. 44 (5), 8-14. Retrieved February 14, 2005, from EBSCOhost database. McShane, S.L. & VonGlinow, M.A. (2004). Foundation of team dynamics. Organizational Behavior, second edition (pp 238-240). Â ©The McGraw-Hill Companies.

Case 35: Stock Repurchase Program Recommendation

Memo To:Rajat Singh, managing director at Hudson Bancorp From: Date:08/01/2002 Re:Stock Repurchase Program Recommendation The purpose of this memo is to examine whether Deluxe Corporation should increase borrowings to buyback stocks. After considerable analysis of the company’s financial position, we recommend that Deluxe Corp. to borrow up to $1. 023 billion to buy back 34,175 shares. In order to achieve this, Deluxe will need to lower its bond rating from A rating to BBB , which results in a decrease in WACC from 11. 47% to 9. 5%. By doing this, Deluxe ’s WACC is minimized, yet the bond rating is still at investment –grade rating; plus, the firm will have a financial flexibility of $872 million, and an increase in its equity value per share by $35. 34. This memo explains in detail the calculation of the current WACC, the current intrinsic equity value, the unused debt capacity at different ratings, and the recommended WACC as well as the estimated increase in e quity value with respect to the new WACC at the recommended debt borrowing level.Current WACC Based on our calculation, the current WACC is 11. 47% as of August 01, 2002. In this calculation, for the borrowing rate, we use 5. 70% regarding Deluxe’s bond rate A from Exhibit 8. The marginal tax rate is is projected to be 38%. We use 5. 41% for the risk free rate of return with respect to the 20 years U. S Treasury bond. The equity risk premium and beta are given at 6% and . 85, respectively.Since the beginning of 2002, Deluxe had retired all of its long term debt, we calculate the total debt by adding the short-term debt and the long-term debt due within one year to arrive at $151 million; for the total equity, we multiply the number of shares outstanding which is given in the company’s 2001 Financial Summary, by the market adjusted close price per share which we look up in yahoo finance to get to $1,568 million. For the small stock risk premium, we use 1. 73% as Deluxeà ¢â‚¬â„¢s total equity is between $1. 05 billion and $1. 6 billion. Current intrinsic equity valueDeluxe’s intrinsic equity value as of August 1, 2002 using a discounted cash flow analysis and the current WACC of 11. 47% has a premium of $2. 38 over the current market value. We estimate the terminal value growth rate to be at -2%; we make this assumption by taking the average of the industry’s annual decline growth rate between 1% and 3%. The free cash flows for 2002-2006 are taken from the company’s Financial Forecast; and, to calculate the terminal year’s free cash flows, we grow it by -2% and divide it by the difference between the WACC and the long term growth rate.Since August 1st is our evaluation date, there is still 5 months left for 2002, the cash flow to be received for 2002 is calculated by taking the total cash flow times 5/12, and for the remaining years, the cash flow to be received is equal to the total cash flows. And, finally, for the midy ear factor ,we also take same caution that t are 5 months left to receive cash flows, and payments are made semiannually . Thus, our mid-year factor for 2002 is 5 over 24, and (5+6) over 12 for 2003, and for the remaining years we add 1 to the prior year’s midyear factor.Flexibility by rating Our analysis of the flexibility in allowed debt under each bond rating provided us the maximum allowable unused debt for each rating. We calculated this figure by considering both the interest coverage ratio as well as the leverage ratio, and then using the smaller of the two figures. We calculated the maximum allowable debt using the leverage ratio by multiplying the five-year EBITDA average times the required leverage ratio under each credit rating. The lower the credit rating the larger the allowable debt becomes.By choosing the lower of the two calculations, the maximum allowable debt under credit rating AAA is 278. 9 million and ranges up to 2,456. 6 million for bond rating B. In or der to maintain an investment grade rating, Deluxe’s maximum allowable debt would be 1,023. 5 million. Recommended WACC In calculating the WACC for each bond rating, we altered several components for each. First, the borrowing rate increases as the bond rating decreases. These figures were provided in Exhibit 8. Second, we recalculated beta taking into account the changes in the debt/equity capitalization structure using.The re-levered beta was calculated using the levered and unlevered information. Third, as ratings declined their debt/equity ratio increased and altered their weighted cost of debt. Fourth, their equity/debt ratio decreased as their bond rating declined. Our final calculations of the WACC for each bond rating went from 11. 47% at AAA down to 9. 95% at BBB and back up to 11. 02% at a B rating. We recommend using the debt level allowed under the BBB rating since it maintains our status as investment grade bonds and also provides the lowest possible WACC. Estima te increase in equity valueTo determine the number of shares to be repurchased in the upcoming repurchase program, we used the maximum allowable debt under the BBB bond rating and subtracted our current debt to determine the total funds to be used to repurchase shares. In order to determine the number of shares that could be repurchased, we divided the total allowable debt by the current market per share price. This resulted in a recommended repurchase of 34,175 shares. Next, we conducted a free cash flow analysis to determine the intrinsic enterprise value of Deluxe Corporation.This analysis is similar to the one conducted for the Current intrinsic equity value. However, we lowered the WACC to reflect our recommended credit rating. In estimating the total increase in shareholder value from this repurchase program, we took enterprise value minus the maximum allowable debt at the BBB rating. This gave us the equity value of Deluxe Corporation. Then, we divided the equity value by the current outstanding shares net of the repurchase program. This gave us equity per share value of $63. 24. In comparing this to the old equity per share value, we found an increase of 127%.This is a highly favorable move for the shareholders of Deluxe Corporation. Concluding Recommendation We believe Deluxe Corporation should borrow funds in the amount of $872 million for the stock repurchase program. By borrowing these funds, Deluxe Corporation will be able to increase their equity value per share by 127% while still maintaining investment grade status. Deluxe is aiming for a flexible capitalization structure, and by borrowing more debt we believe they can achieve this due to the high cost of equity. If you have any question or concern, please feel free to contact us via emails: