Science TechnologyEssay Preview: Science TechnologyReport this essayA) I feel that STC operates in a competitive environment that has the characteristics of being very volatile. I believe the technology market that they are in is based on consumer spending and demand for new technologies. If consumers dont have the extra capital to spend on new technologies, the manufactures of the new products will slow production, which in turn will mean less of a need for testers and testing software, which will obviously cause a decrease in sales. STC also has competition for market share with the testing of silicon chips and circuit boards. If STC does not stay ahead of the competition with new and lower cost ways of testing electronic equipment they could see their market share decline, which could cause great stress on STCs sales.
B) I feel one of STCs most important operating characteristics is the amount of money that is spent on research and development. STC increased their R&D spending by 32% in 1984. I believe this is due to the competitive market they are in, but I also feel they may be spreading themselves thin in to many markets. What I mean by this is that they are in the market of designing and manufacturing testers and test software, in which they have a 31% market share, but they are also in another competitive market of testing more complex systems (VLSI) which seems to be increasing their overall spending.
2) Some of the financial characteristics of STC resulting from their operating strategy are their increase in selling, general, and administrative expenses. They increased the expenses in this area by $34 million from 1980 to 1984. This is a component of them increasing their sales force in the semiconductor and electronic manufacturing industries throughout Europe, North America, and the Pacific Basin trying to increase their market share and sales growth. Due to the competitive environment and market STC is part of, they have increased R&D expense by 32% between 1980 and 1984. Because of the potential market growth STC increased their number of employees and plant capacity. With all the spending and expanding for future prospects, STC has not seen a dramatic increase, if at all, in cash or net income. The significant jump in cash in 1983 was due to the $66 million raised by the selling of their common stock, but decreased immediately in 1984 to $3 million due in part by the $75 million spent to develop VLSI testers.
A) I do not believe that Mr. Finson has done a good job of financial planning and forecasting. I believe that both Mr. Finson and Mr. Watson see a large probability of growth in the ATE market, but I do not believe they have currently, or in the future, planned for increased competition by other companies. STC continues to expand by increasing its workforce and plant capacity in the anticipation of market growth. Total assets have increased by $106 million between 1980 and 1984, which is in due part by an increase in inventories and net fixed assets. STCs current return on total assets in 1984 is 4.1%; in 1980 it was 7.4% which shows a drop in profitability. STC seems to be bulking up instead of trimming down to be more competitive with the increased competition. Accounts receivables have also increased substantially by $34 million and it is currently 33% of sales. In 1980 STCs turnover on receivables was 100 days; in 1984 it has increased to 117.4
in a 12 month period. Also in 1986 the balance had more than doubled to $14.5 million. STC will likely continue investing in other assets as it prepares to compete in a global market. The combined revenue of STCs and non corporate debt has increased by $3.7 million as the amount of revenue, revenue from revenues and non corporate debt has increased by $3.7 million
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> STC-A is also in a good position to compete by increasing the company’s assets. Although the share of STCs with net assets has improved, the share size has not. This is due to a combination of a recent large tax reform in place and the need to reduce tax, trade and trade regulations. However, this has caused significant costs to the STC, including the fact that STCs are required to make higher returns on capital (and therefore the less money they can spend on inventory) but have not the same level of capital or cash. The combined revenue of STCs with non corporate debt, net of tax and trade taxes has also risen rapidly, which is partially offset by an increase in employee compensation. A recent public company restructuring in 2011 also provided a major boost to STCs and a significant increase in revenue.
Stuart T. Watson is Chairman and CEO of STC Corp. at www.stc-comcast and is co-chairman and CEO of STC Ventures and is also Vice President and CFO at STC Ventures & Partners. He is the co-founder of Cofounder and Chief Investment Officer of STC Ventures, Inc. Mr. Watson is an expert consultant to private equity groups and private equity investment firms, as well as is Board Certified by the U.S. Board of Pensions. T. is the executive director of STC Ventures and the President of STC Ventures. Mr. Watson is co-founder of STC Ventures, Inc., in which he is also President and COO. Mr. Watson was appointed a Distinguished Fellow at the John A. and Catherine O. School of Management. T. is a Fellow of the National Academy of Arts and Sciences.
This notice also describes the status of the St. Louis City Council, which is being advised of the latest developments.
Mr. Watson,
The St. Louis City Council is one of America’s leading authorities in developing the most innovative, productive, and supportive communities, especially in rural areas. As a City Council Member, Dr. Watson has championed the efforts made to spur growth, and has provided advice and support to both local and non-local leaders around the country, which led to the adoption of his work as a Distinguished Fellow at the American Institute of Architects (AIA).
In addition, he has been a Senior Counselor for the AIA’s Board, held a Distinguished Chair and served as a Fellow of the American Institute of Architects’ Board of Trustees at the American Society for the Prevention of Cruelty to Animals (AISBA), and served as Vice Adjutant-At-Large for the American Center for Investigative Journalism and is a Fellow of the American National Capital Commission. Dr. Watson has been nominated by a group of Fortune 500 companies and other recognized institutions as the “Best Man for Mayor” by the United States Council on Education
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Mr. Watson joined the University of Maryland at College Park in 1980 as a faculty member during the post he had formed in 1974, when he joined the University’s Leadership Center for Civic Arts.
Mr. Watson holds a Master’s of Arts degree in Public Administration and is an Honorary Fellow at the Brookings Institution. Dr. Watson served in the Bush Administration for eight years as a director of the United States Public Policy Council. In 2010, he established St. Louis City Hall
as a city-owned and federally supported organization of more than 300 nonprofit and professional service organizations that have served thousands of citizens, at a time when they sought a strong new start in the city and the nation.
Mr. Watson was named Distinguished Professor of Public Affairs in 1980 by the American Board of Directors. He served as the vice president of the University of Missouri at Columbia, in 2002 as a Research Fellow at the American Institute of Architects’ Board at the American Institute for Public Policy, and in 2003 as an Assistant Professor at the University of Minnesota.
He has been the chair of New York’s City Council for 26 years.
Mr. Watson is the Executive Director of the St. Louis Housing and Community Renewal Council and was a recipient
of the American Sociological Association’s National Research Council award for its work in community revitalization.
Dr. Watson’s research emphasizes the importance of helping the most disadvantaged of our communities, to help them prepare and live independently to prosper