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Stimulation Games
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<b>Capital Budgeting Simulation Game</b></span></p> <p><span class="s1"><b>Name: ________________________</b></span></p> <p><span class="s1">Write a report (about 5 pages) on the following:</span></p> <p><span class="s1"></span> </p> <ol> <li><span class="s1">What types of project did New Heritage have? Characterize them by division and project attributes.</span></li> </ol> <p><span class="s1"></span> </p> <p><span class="s1">New Heritage’s projects could be classified into three categories based on division (production, retail and licensing) and by the project attributes of risk level, lifetime project costs, payback period, NPV, IRR and profitability index. I used these project types and characteristics to group the projects and decide which were the best projects to invest in.</span></p> <p><span class="s1"></span> </p> <ol> <li><span class="s1">Generally which collection of funded project do you expect to be associated with good overall performance?</span></li> </ol> <p><span class="s1"></span> </p> <p><span class="s1">In general, I would expect the licensing projects, especially those with low to medium risk, high net present value , low lifetime project costs and a short payback period, to be associated with good overall performance. This is because licensing projects, based on New Heritage Doll Company’s Financial Snapshot, have historically been the main driver of cash flow and operating profit. In addition, less risky and higher-NPV projects have been empirically proven to be associated with good overall performance.</span></p> <p><span class="s1"></span> </p> <p><span class="s1"></span> </p> <ol> <li><span class="s1">How much is your final APV?<span class="Apple-converted-space"></span></span></li> </ol> <p><span class="s1">My final APV is 611.37.</span></p> <p><span class="s1"></span> </p> <ol> <li><span class="s1">Display your decision history.</span></li> </ol> <p><span class="s1">My decision history is displayed in the table below:</span></p> <table> <tbody> <tr> <td> </td> <td> <p><span class="s2"><b>NPV</b></span></p> </td> <td> <p><span class="s2"><b>IRR</b></span></p> </td> <td> <p><span class="s2"><b>PI</b></span></p> </td> <td> <p><span class="s2"><b>Pay Bk Yrs</b></span></p> </td> <td> <p><span class="s2"><b>Life time Prj. Costs</b></span></p> </td> <td> <p><span class="s2"><b>2014 Prj. Costs</b></span></p> </td> <td> <p><span class="s2"><b>1 Yr. EBITDA</b></span></p> </td> <td> <p><span class="s2"><b>5 Yr. EBITDA</b></span></p> </td> </tr> <tr> <td> <p><span class="s2">Dollhouses with Miniature Dolls</span></p> </td> <td> <p><span class="s2">9.09</span></p> </td> <td> <p><span class="s2">27.06%</span></p> </td> <td> <p><span class="s2">2.65</span></p> </td> <td> <p><span class="s2">7.74</span></p> </td> <td> <p><span class="s2">4.73</span></p> </td> <td> <p><span class="s2">3.43</span></p> </td> <td> <p><span class="s2">-0.80</span></p> </td> <td> <p><span class="s2">5.70</span></p> </td> </tr> <tr> <td> <p><span class="s2">New East Coast Distribution Facility</span></p> </td> <td> <p><span class="s2">6.30</span></p> </td> <td> <p><span class="s2">18.91%</span></p> </td> <td> <p><span class="s2">0.63</span></p> </td> <td> <p><span class="s2">4.92</span></p> </td> <td> <p><span class="s2">16.00</span></p> </td> <td> <p><span class="s2">10.00</span></p> </td> <td> <p><span class="s2">0.00</span></p> </td> <td> <p><span class="s2">1.00</span></p> </td> </tr> <tr> <td> <p><span class="s2">Coupon Promotion/Frequent Shopper Campaign</span></p> </td> <td> <p><span class="s2">6.04</span></p> </td> <td> <p><span class="s2">25.16%</span></p> </td> <td> <p><span claXX="s2">3.66</span></p> </td> <td> <p><span class="XX">X.99</span></p> </td> <td> <p><span XXXXX="s2">5.XX</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> <td> <p><span class="s2">-2.XX</span></p> </td> <td> <p><span class="XX">1.83</span></p> </td> </tr> <tr> <td> <p><span class="s2">Young XXXXXXX XXXX Series</span></p> </td> <td> <p><span class="XX">8.XX</span></p> </td> <td> <p><span class="s2">XX.XX%</span></p> </td> <td> <p><span XXXXX="XX">XX.XX</span></p> </td> <td> <p><span class="XX">2.XX</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span class="s2">0.XX</span></p> </td> <td> <p><span XXXXX="s2">-0.XX</span></p> </td> <td> <p><span XXXXX="XX">2.XX</span></p> </td> </tr> <tr> <td> <p><span class="XX"><b>Cable TV XXXXXXX</b></span></p> </td> <td> <p><span XXXXX="s2">3.52</span></p> </td> <td> <p><span XXXXX="s2">33.XX%</span></p> </td> <td> <p><span class="s2">4.XX</span></p> </td> <td> <p><span class="XX">5.91</span></p> </td> <td> <p><span XXXXX="XX">X.XX</span></p> </td> <td> <p><span XXXXX="s2">X.75</span></p> </td> <td> <p><span class="XX">-X.XX</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> </tr> <tr> <td> <p><span class="s2">Toddler XXXX Accessory Line</span></p> </td> <td> <p><span class="XX">7.XX</span></p> </td> <td> <p><span XXXXX="XX">XX.06%</span></p> </td> <td> <p><span XXXXX="s2">11.XX</span></p> </td> <td> <p><span XXXXX="s2">8.XX</span></p> </td> <td> <p><span XXXXX="XX">3.XX</span></p> </td> <td> <p><span class="XX">0.XX</span></p> </td> <td> <p><span XXXXX="XX">1.XX</span></p> </td> <td> <p><span XXXXX="s2">3.37</span></p> </td> </tr> <tr> <td> <p><span XXXXX="XX">Match my Doll' Clothing XXXX</span></p> </td> <td> <p><span XXXXX="XX">6.XX</span></p> </td> <td> <p><span XXXXX="s2">XX.XX%</span></p> </td> <td> <p><span XXXXX="s2">1.XX</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span class="XX">5.XX</span></p> </td> <td> <p><span class="XX">0.01</span></p> </td> <td> <p><span XXXXX="XX">X.89</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> </tr> <tr> <td> <p><span XXXXX="s2">Dolls XX XXX XXXXX' XXXXXXXXXX</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span XXXXX="XX">19.90%</span></p> </td> <td> <p><span class="XX">X.51</span></p> </td> <td> <p><span XXXXX="XX">X.93</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span XXXXX="XX">X.XX</span></p> </td> <td> <p><span class="s2">1.XX</span></p> </td> <td> <p><span XXXXX="XX">4.XX</span></p> </td> </tr> <tr> <td> <p><span class="XX">Grow With Me' XXXX Line</span></p> </td> <td> <p><span XXXXX="XX">X.XX</span></p> </td> <td> <p><span class="s2">18.52%</span></p> </td> <td> <p><span class="XX">1.04</span></p> </td> <td> <p><span XXXXX="s2">> XX</span></p> </td> <td> <p><span XXXXX="XX">X.XX</span></p> </td> <td> <p><span XXXXX="XX">0.04</span></p> </td> <td> <p><span class="s2">2.XX</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> </tr> <tr> <td> <p><span class="s2">Replace XXXXXXXX XXXXXXXXX at XXXXXXXXXX Facility</span></p> </td> <td> <p><span class="s2">0.06</span></p> </td> <td> <p><span class="XX">38.XX%</span></p> </td> <td> <p><span class="s2">0.87</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> <td> <p><span XXXXX="XX">0.XX</span></p> </td> <td> <p><span class="XX">X.06</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> </tr> <tr> <td> <p><span class="s2">Match XX XXXX' Clothing XXXX, XXXXXXXXX XX Concept</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span class="XX">XX.XX%</span></p> </td> <td> <p><span XXXXX="XX">2.XX</span></p> </td> <td> <p><span class="s2">X.69</span></p> </td> <td> <p><span class="XX">X.87</span></p> </td> <td> <p><span class="s2">0.XX</span></p> </td> <td> <p><span class="XX">1.15</span></p> </td> <td> <p><span XXXXX="s2">X.60</span></p> </td> </tr> <tr> <td> <p><span XXXXX="XX">XXX Supplier Software XXXXXX</span></p> </td> <td> <p><span XXXXX="s2">X.XX</span></p> </td> <td> <p><span class="s2">XX.76%</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> <td> <p><span class="s2">3.XX</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span class="s2">0.XX</span></p> </td> <td> <p><span class="XX">-0.XX</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> </tr> <tr> <td> <p><span XXXXX="XX">XXXXXX XXXX XXX XXXX'</span></p> </td> <td> <p><span class="s2">9.XX</span></p> </td> <td> <p><span class="XX">XX.20%</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span XXXXX="s2">X.86</span></p> </td> <td> <p><span class="s2">7.99</span></p> </td> <td> <p><span XXXXX="s2">0.XX</span></p> </td> <td> <p><span class="s2">X.00</span></p> </td> <td> <p><span class="XX">X.40</span></p> </td> </tr> <tr> <td> <p><span class="XX">XXXXXX XXXXX Expansion in XXXXXXXXX</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span class="XX">XX.65%</span></p> </td> <td> <p><span class="s2">-</span></p> </td> <td> <p><span XXXXX="XX">5.XX</span></p> </td> <td> <p><span class="s2">X.29</span></p> </td> <td> <p><span class="XX">1.25</span></p> </td> <td> <p><span XXXXX="XX">1.01</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> </tr> <tr> <td> <p><span class="s2">Warehouse Facility Consolidation</span></p> </td> <td> <p><span class="s2">2.76</span></p> </td> <td> <p><span XXXXX="XX">XX.26%</span></p> </td> <td> <p><span class="s2">0.XX</span></p> </td> <td> <p><span XXXXX="XX">X.23</span></p> </td> <td> <p><span class="XX">10.50</span></p> </td> <td> <p><span class="XX">0.XX</span></p> </td> <td> <p><span XXXXX="s2">X.75</span></p> </td> <td> <p><span class="XX">3.XX</span></p> </td> </tr> <tr> <td> <p><span XXXXX="s2">Expansion XX XXXX-order XXXXXXX Business to XXXX</span></p> </td> <td> <p><span XXXXX="s2">X.57</span></p> </td> <td> <p><span XXXXX="s2">XX.XX%</span></p> </td> <td> <p><span XXXXX="s2">2.85</span></p> </td> <td> <p><span class="s2">&XX; 10</span></p> </td> <td> <p><span class="s2">2.73</span></p> </td> <td> <p><span XXXXX="s2">X.02</span></p> </td> <td> <p><span class="XX">X.24</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> </tr> <tr> <td> <p><span XXXXX="XX">XXXXXXX XXXX XXXXXXXXX</span></p> </td> <td> <p><span XXXXX="s2">6.XX</span></p> </td> <td> <p><span class="XX">XXX.58%</span></p> </td> <td> <p><span XXXXX="XX">266.50</span></p> </td> <td> <p><span class="XX">X.06</span></p> </td> <td> <p><span XXXXX="XX">X.XX</span></p> </td> <td> <p><span XXXXX="s2">0.XX</span></p> </td> <td> <p><span XXXXX="XX">0.XX</span></p> </td> <td> <p><span XXXXX="XX">X.19</span></p> </td> </tr> <tr> <td> <p><span class="XX">Bookstore Café and XXXXXXX' Club</span></p> </td> <td> <p><span class="XX">X.71</span></p> </td> <td> <p><span class="s2">48.90%</span></p> </td> <td> <p><span XXXXX="XX">13.42</span></p> </td> <td> <p><span class="XX">4.44</span></p> </td> <td> <p><span class="XX">0.XX</span></p> </td> <td> <p><span class="XX">0.XX</span></p> </td> <td> <p><span class="s2">X.78</span></p> </td> <td> <p><span XXXXX="s2">3.62</span></p> </td> </tr> <tr> <td> <p><span XXXXX="s2">New XXXX XXXX/DVD</span></p> </td> <td> <p><span XXXXX="s2">X.XX</span></p> </td> <td> <p><span XXXXX="s2">XXX.61%</span></p> </td> <td> <p><span class="s2">-3.84</span></p> </td> <td> <p><span XXXXX="XX">1.43</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> <td> <p><span XXXXX="XX">0.XX</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> <td> <p><span XXXXX="s2">XX.85</span></p> </td> </tr> <tr> <td> <p><span class="XX">XXXXX XXXX Series</span></p> </td> <td> <p><span class="s2">X.XX</span></p> </td> <td> <p><span class="s2">43.57%</span></p> </td> <td> <p><span class="XX">13.64</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> <td> <p><span class="XX">X.61</span></p> </td> <td> <p><span XXXXX="XX">0.01</span></p> </td> <td> <p><span class="XX">0.XX</span></p> </td> <td> <p><span class="XX">0.99</span></p> </td> </tr> <tr> <td> <p><span XXXXX="s2">† Acquisition XX Children's Magazine</span></p> </td> <td> <p><span XXXXX="s2">24.08</span></p> </td> <td> <p><span XXXXX="s2">18.26%</span></p> </td> <td> <p><span XXXXX="s2">0.95</span></p> </td> <td> <p><span XXXXX="s2">8.03</span></p> </td> <td> <p><span XXXXX="s2">26.25</span></p> </td> <td> <p><span class="XX">0.XX</span></p> </td> <td> <p><span XXXXX="XX">X.38</span></p> </td> <td> <p><span XXXXX="s2">XX.XX</span></p> </td> </tr> <tr> <td> <p><span XXXXX="s2">Toddlers Music XX Series</span></p> </td> <td> <p><span XXXXX="XX">X.97</span></p> </td> <td> <p><span class="s2">104.99</span></p> </td> <td> <p><span class="s2">23.23</span></p> </td> <td> <p><span class="XX">2.09</span></p> </td> <td> <p><span class="s2">1.XX</span></p> </td> <td> <p><span class="s2">X.01</span></p> </td> <td> <p><span class="XX">X.XX</span></p> </td> <td> <p><span XXXXX="s2">X.XX</span></p> </td> </tr> </tbody> </table> <p><span XXXXX="XX"></span> </p> <ol> <li><span XXXXX="s1">XXX do you select the XXXXXXXX XXXX you would XXXX to XXXXXX?<span XXXXX="Apple-converted-space"> </span>XXXX capital XXXXXXXXX decision XXXXXXXX XXX you use?</span></li> </ol> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1">I selected XXX XXXXXXXX XX invest in XXXXX New Heritage XXXX Company’s historical performance, and XXX XXX, XXXX XXXXX, payback period and XXXXXXXXX XXXXXXXX costs of XXXX project. In XXXXX XX XXXXXXXX, I XXXX had a XXXXXXXXXX XXXXXX XXXXXXXXX, XXXXXXX while XXX XXXXXXXXX revenue driver comes from retail (190 million, XXX a vis XXXXXXXXXX’s 125 XXXXXXX XXX Licensing’s XX.X XXXXXXX), XXX strongest cash XXXX and operating XXXXXX driver comes, XX XXX XXXXX XXXX, XXXX licensing (14.12 XXXXXXX XXXX XXXXXXXXX in operating profit in 2009). Licensing XX XXXX an XXXXX-light XXXXXXXX, XXXXX XXXXXXXX the company from having to invest too heavy in assets. In XXXXX XX XXXXXXX XXXXXXXXXX, the budgeting decision XXXXXXXX I used XXX to choose a project XXXXX XXX a XXXX NPV, XXX to medium risk XXXXX (XXXXXXXX I did XXXX several XXXXXXXXXX for choosing XXXXXXXX with a XXXX XXXX XXXXX when I felt XXXX XXX NPV warranted a XXXXXX XXXX level), XXXXXXXXXX XXXXXXX XXXXXX and reasonable projected lifetime XXXXX. I optimized XXXXX XXXXXXXX XXX XXXX round and XXXXX the best XXXXXXXX XXXXXXXX, XXXXXXX in mind the XXXXXX constraint for each round.<span XXXXX="Apple-XXXXXXXXX-space"></span></span></p> <p><span XXXXX="XX"></span> </p> <ol> <li><span class="XX">When two projects are mutually XXXXXXXXX, how XXX you choose XXX project?<span XXXXX="XXXXX-XXXXXXXXX-XXXXX"> </span>What XXXXXXX budgeting decision XXXXXXXX XXX you XXX?</span></li> </ol> <p><span class="XX"></span> </p> <p><span XXXXX="s1">Mutually exclusive XXXXXXXX refer to projects XXXXX XXXXXX both XX XXXXXX, for XXXXXXX of XXXXXXXX, budget XXXXXXXXXX or operational limitations. One example XX this was XXX acquisition XX Children’s Magazine XXX XXX XXXXXXXXXXX of Electronic XXX Manufacturer. XXX New Heritage Doll XXXXXXX’s board XX XXXXXXXXX had XXXXXXXX XXX prospects XXX XXXXXXXXXXXX, XXXXX XXXX to be capital XXXXXXXXX, XXXX risk endeavors, XXX had XXXXXXX XXXX XXX Heritage could XXX successfully execute more than one acquisition XXX year. XX this case, XXX XXXXXXX XXXXXXXXX XXXXXXXX XXXXXXXX I used was XX look XX which acquisition had a XXXXXX XXX present XXXXX (XXX), lower XXXX level and higher XXXXXXXXXXXXX index, XX XXXX as XXXXX XXXXXXX XXX XXXX XXXXXXXXXXXXX XXXX XXX XXXXXXXXX XXXX outlined XX New XXXXXXXX Doll company. XX XXXX case, it XXX clear that the XXXXXXXXXXX of the children’s magazine was the XXXXXXXX choice between XXX two XXXXXXXX exclusive projects.<span class="XXXXX-XXXXXXXXX-XXXXX"></span></span></p> <p><span class="s1"></span> </p> <ol> <li><span class="XX"></span><span class="XX">Do you use a XXXXXXXX to XXXXXXXX your XXXXXXXXXXX?<span class="XXXXX-XXXXXXXXX-XXXXX"> </span>XXXX strategy XXX you use?</span></li> </ol> <p><span class="s1"></span> </p> <p><span class="s1">I used a strategy comprised of XXXXXXXX XXXXX. Foremost, I pursued a diversification strategy XXXXX I tried XX have a mix XX projects of different XXXX levels per XXXXX. This meant XXXX XXXX XXXXX XXXXXXXX a XXX of XXX, medium and XXXX XXXX XXXXXXXX, although XXXX XXXXXXXX XXXX comparable risk XXXXXX XXX XXXXXXXXX NPVs XXXXXXXX, I naturally chose XXX higher NPV alternative. XXXXXXXX, I tried XX choose the XXX 3-X projects XXX XXXXX in order to conserve XXXXXXX XXX future XXXXXX, in XXXX XXXXXXXX XXXX XXXXXX NPVs XXXXXXXX in later rounds. Thirdly, I chose XXXXXXXX XXXXX were expiring soon. Fourthly, I XXXXX XX XXXXX XX licensing XXXXXXX it XXXXXX in XXX XXXX cash flow, net XXXXXX XXX XXXXXXXXX XXXXXX XXXXX XX XXX XXXXXXXX’s XXXXXX statements and XXXXXXX XXXXXX. XXXXXXX, I XXXX with projects with the highest NPV rather XXXX XXXXXXX IRR XX XXX XX the empirically superior XXXXXXX XXXXXXXXXX XXXXXX, given XXXX it accounts XXX different discount XXXXX over XXXX, and shows definitively XXXXXXX a XXXXXXX XX XXXXX XXXXXXXX or value XXXXXXXXXX. On the other XXXX, the simple IRR is XXX XXXXX, XXX does not XXXXXXX XXX uncertain cash flows, or cash flows at XXXXXXXXX XXXXXXXX rates. XX a result, I was able to achieve a XXXXXXXXXXXX XXX at XXX end XX the simulation XXXX.<span XXXXX="XXXXX-XXXXXXXXX-space"></span></span></p> <p><span XXXXX="XX"></span> </p> <ol> <li><span class="XX">Complete the student survey.</span></li> </ol> <p><span XXXXX="XX" <the="" student="" survey="" has="" XXXX="" completed="" XXX="" XXXXXXXX.="">span class="Apple-XXXXXXXXX-XXXXX"&XX;</span></p> <p><span XXXXX="XX"></span> </p> <p><span class="s1"></span> </p> <p><span XXXXX="XX"></span> </p> <p><span class="s1"></span> </p> <p><span class="XX"></span> </p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1"></span> </p> <p><span XXXXX="s1"></span> </p> <p><span class="s1"></span> </p> <p><span class="s1"><b>Appendix: Qualitative Results XX Capital Budgeting Simulation Game.</b></span></p> <p><span XXXXX="XX"><b>XXXX</b></span></p> <p><span XXXXX="XX"><b><span XXXXX="XXXXX-tab-span"> </span>1.<span XXXXX="Apple-tab-span"> </span>XXXXXXXXXX with XXXXXXXXX Dolls </b>XXXX XXXXXXX XXXXXXXX XXXXXXXXXXXX but with somewhat lower margins than expected, XXXXXXXXXXXX to XXXXXX XXXXXXXXXX and XXXXXXXXX costs. </span></p> <p><span XXXXX="XX"><b><span class="Apple-tab-span"> </span>2.<span class="XXXXX-tab-span"> </span>New XXXX XXXXX XXXXXXXXXXXX Facility </b>This facility was XXXXXXXXX and performing XX expected. </span></p> <p><span XXXXX="XX"><b><span XXXXX="Apple-tab-span"> </span>3.<span XXXXX="Apple-tab-span"> </span>Coupon XXXXXXXXX/XXXXXXXX Shopper XXXXXXXX </b>The XXXXXXXX XXX XXXXXXXXX but fell XXXXXXXX short of XXX retail XXXXXXXX's revenue XXXXXXX. </span></p> <p><span XXXXX="s1"><b><span XXXXX="XXXXX-tab-span"> </span>X.<span class="XXXXX-tab-span"> </span>Young XXXXXXX XXXX Series </b>'XXXX XX Girls' XXXXX XXXX an immediate XXXXXXX XXXX the XXXXXXXX XXXXXXXXXXX. Both revenue XXX XXXXXX XXXXXX exceeded XXXXXXXXXXXX. </span></p> <p><span class="s1"><b><span class="Apple-tab-span"> </span>5.<span class="Apple-tab-span"> </span>Cable XX XXXXXXX </b>XXXXXXXX XXXX producing XXX XXXXX TV show XXXX XXXXXXXX XXXXXX than XXXXXXXXXXX, XXX XXXXXXXXXX costs XXXXXXXX XXXXXXXXXXXX, resulting in a XXXXX operating XXXXXX </span></p> <p><span XXXXX="XX"><b>XXXX</b></span></p> <p><span XXXXX="s1"><b><span XXXXX="XXXXX-tab-span"> </span>1.<span XXXXX="XXXXX-tab-span"> </span>Replace XXXXXXXX XXXXXXXXX at Sacramento XXXXXXXX </b>The new machinery XXXXXXXXX XX expected. </span></p> <p><span XXXXX="s1"><b><span class="XXXXX-tab-span"> </span>2.<span class="XXXXX-tab-span"> </span>EDI XXXXXXXX Software System </b>The XXX XXXXXX XXXXXXXXX XXXXXX than expected with regard to SG&X and working capital savings. </span></p> <p><span class="XX"><b><span XXXXX="Apple-tab-span"> </span>X.<span XXXXX="Apple-tab-span"> </span>'Design Your Own Doll' </b>: Project costs in the XXXXX XXXX XXXX XX XXXXXXXX but were XXX XXXXXXXXXX to get XXX assembly XXXXXXXXX and related software working XXXXXXXX. Additional outlays XXX required XX complete the XXXXXXX, and the launch XX accordingly XXXXXXX. </span></p> <p><span class="s1"><b><span XXXXX="XXXXX-tab-span"> </span>4.<span XXXXX="XXXXX-tab-span"> </span>XXXXXXX Doll Community </b>Development costs were XXXXX XXXXX XXXXXX than budgeted, and revenues were XXXXXXXXXXXXX XXXXX, XXX XXX XXXXXXX XXX XXXXXXXXXXXX XXXXXXX to be XXXXXXXXXX. </span></p> <p><span XXXXX="XX"><b><span XXXXX="Apple-tab-span"> </span>X.<span class="Apple-tab-span"> </span>XXXXXXXXX Café XXX Writers' Club </b>Initial revenues XXXX XXX initiative XXXX somewhat XXXXXX than expected, XXX XXXX XXX XXXXXX by XXXXX gross XXXXXXX resulting XXXX a XXXXXXXX XXXXXXXXX product mix XXXX XXXXXXXXXXX. </span></p> <p><span class="XX"><b><span XXXXX="Apple-tab-span"> </span>6.<span class="Apple-tab-span"> </span>Toddlers XXXXX XX Series </b>XXXXXXX revenues XXXX Toddler XXX were XXXXX as XXXXX as XXXXXXXXXXX. </span></p> <p><span class="s1"><b>XXXX</b></span></p> <p><span class="s1"><b><span XXXXX="Apple-tab-span"> </span>1.<span XXXXX="Apple-tab-span"> </span>'Dolls of XXX World' XXXXXXXXXX </b>Development of successful XXXXXXXXXX XXXX longer XXXX XXXXXXXX, which delayed XXXXXX by several XXXXXX XXX XXXXXX NH XX XXXX an XXXXXX XXXXXXX season. XXX XXXXXXXXXX XX still XXXXXXXX XX XXXXXXX. </span></p> <p><span class="s1"><b><span XXXXX="Apple-tab-span"> </span>X.<span class="Apple-tab-span"> </span>'Match XX XXXX' Clothing Line, Expansion XX Concept </b>XXX expanded XXXXXXXX XXXX XXXXXXXXX from XXX strong XXXXXXXXXXX XX XXX initial 'XXXXX My Doll' XXXX and has outperformed projections. </span></p> <p><span XXXXX="XX"><b><span XXXXX="XXXXX-tab-span"> </span>X.<span XXXXX="XXXXX-tab-span"> </span>XXXXXX XXXXX XXXXXXXXX in XXXXXXXXX </b>XXX Northeast XXXXXX XXXXXXXXXX generated more XXXXXXX XXXX expected and XXXX XXXXXXXXXX XXXXX XXXX. </span></p> <p><span class="s1"><b><span XXXXX="XXXXX-tab-span"> </span>4.<span class="XXXXX-tab-span"> </span>Warehouse XXXXXXXX XXXXXXXXXXXXX </b>XXXXXXXXX consolidation generated XXXXXXXX greater XXXXXXX than XXXXXXXXXXX. </span></p> <p><span XXXXX="XX"><b><span class="XXXXX-tab-span"> </span>5.<span XXXXX="XXXXX-tab-span"> </span>XXXXXXXXX XX Mail-order XXXXXXX Business to Asia </b>XXXXXXXXXXXX for concept XXXXXXX XXXX three XXXXX higher XXXX projected. However, revenues XXXX likewise XXXX higher than expected. Local XXXXXXXX XXX XXX XXXXXXX for XXXX XX speed up XXXXXXXXXXX in XXXXX and XXXXX. </span></p> <p><span XXXXX="s1"><b><span class="XXXXX-tab-span"> </span>X.<span XXXXX="XXXXX-tab-span"> </span>Acquisition XX Children's XXXXXXXX </b>The magazine's paid XXXXXXXXXX base XXX XXXX up XXXXXX XXXX XXXXXXXX, XXXXXXX stiff online XXXXXXXXXXX and XXXXXXXXX XXXX performance XX other magazines. XXXXXXXXX XXXXXXXXXXX XX XXXXXXXXXXXX somewhat stronger than expected. </span></p> <p><span class="s1"><b>XXXX</b></span></p> <p><span XXXXX="XX"><b><span XXXXX="Apple-tab-span"> </span>1.<span class="Apple-tab-span"> </span>'Match XX XXXX' XXXXXXXX Line </b>XXX clothing line XXXXXXXXXXXX XXXXXXXXXXXX XXXXX a XXXXXXXXX's daughters XXXX XXXXXXXXXXXX wearing items from XXX XXXX XXXXXXX after XXX XXXXX. Gross margin XXX XXXX higher XXXX XXXXXXXX XXX to lower than anticipated raw-XXXXXXXXX costs. </span></p> <p><span class="s1"><b><span XXXXX="XXXXX-tab-span"> </span>X.<span class="Apple-tab-span"> </span>'Grow XXXX XX' XXXX XXXX </b>XXXXXXXXXX XXXXXXX problems caused XXXXX-XXXX revenues XX XXXX short of expectations by XXXX. XXXX return XXXXX XXX XXXXX XXXXXXXXXX with XXXXXXXXXXXXX a key XXXXXXXXXX XXXXXXXXX XXXXXX SG&A costs significantly. </span></p> <p><span XXXXX="XX"><b><span class="XXXXX-tab-span"> </span>X.<span class="XXXXX-tab-span"> </span>XXXXX Book XXXXXX </b>XXX appearance XX XXX titles in XXXX XXXXXX XX a XXXX show XXXX's recommended summer XXXXXXX list for kids boosted XXXXXXX XXXXXX XXXXX expectations. </span></p> <p><span XXXXX="s1"><b>XXXX</b></span></p> <p><span XXXXX="s1"><b><span XXXXX="XXXXX-tab-span"> </span>1.<span XXXXX="XXXXX-tab-span"> </span>Toddler Doll Accessory Line </b>XXXX XXXX of accessories XXXXXXXXX in line with expectations XXXXXXXXX XXXX XXXXX and costs. </span></p> <p><span class="XX"><b><span class="XXXXX-tab-span"> </span>X.<span XXXXX="Apple-tab-span"> </span>XXX Doll Film/XXX </b>The XXXX XXX released on schedule. XXX marketing campaign XXX XXXX XXXXXXXXXX, XXX DVD XXXXX exceeded those XX XX's previous XXXXX. </span></p> <p><span XXXXX="XX"></span> </p> <p><span XXXXX="XX"></span> </p>">
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