A. O. Smith Corporation’s

The company’s name is A. O. Smith Corporation’s

1. Identify a decision your firm likely undertook in the last year that was based on (or should have been based on) a relevant cost analysis. You are likely to find some good information in the “Management’s discussion & analysis” section of the 10-K, but feel free to explore other sources. Examples of decisions firms might have made include acquisitions, dropping or retaining low-performance product lines, or restructuring activities. What would be some likely relevant costs and revenues for that decision? List at least three relevant quantitative considerations. What are some costs, at least two, that are likely irrelevant? Discuss at least three qualitative considerations that likely went into the decision.

Include a link to your source for Part 1 in your response.

Aim for a response to Part 1 of around 200 words.

2. Access D&B Hoovers via the UIC libraries (UIC Library Homepage => Databases => “D” => “D&B Hoovers”). Type your company’s name into the “Search for a company” field at the top of the page. BE AWARE THAT THIS SYSTEM HAS A CONCURRENT USER LIMIT OF 26 USERS, AND YOU SHOULD PLAN AHEAD IN CASE THE SYSTEM IS UNAVAILABLE WHEN YOU FIRST LOG IN.

Use the information available to help you sort out whether you believe the company is more likely to use cost-plus or market-based pricing. Cite three facts from D&B Hoovers to support your conclusion. You might find the following areas particularly informative, though not all firms will have all areas populated:

• Company Description
• SWOT analysis (“Strengths, weaknesses, opportunities, threats”)
• Closest Industry Peers
• Financial Health and Ratio Comparisons (particularly longer-window trends)

Aim for a response to Part 2 of around 200 words.