Menu
News
All News
Dungeons & Dragons
Level Up: Advanced 5th Edition
Pathfinder
Starfinder
Warhammer
2d20 System
Year Zero Engine
Industry News
Reviews
Dragon Reflections
Columns
Weekly Digests
Weekly News Digest
Freebies, Sales & Bundles
RPG Print News
RPG Crowdfunding News
Game Content
ENterplanetary DimENsions
Mythological Figures
Opinion
Worlds of Design
Peregrine's Next
RPG Evolution
Other Columns
From the Freelancing Frontline
Monster ENcyclopedia
WotC/TSR Alumni Look Back
4 Hours w/RSD (Ryan Dancey)
The Road to 3E (Jonathan Tweet)
Greenwood's Realms (Ed Greenwood)
Drawmij's TSR (Jim Ward)
Community
Forums & Topics
Forum List
Latest Posts
Forum list
*Dungeons & Dragons
Level Up: Advanced 5th Edition
D&D Older Editions
*TTRPGs General
*Pathfinder & Starfinder
EN Publishing
*Geek Talk & Media
Search forums
Chat/Discord
Resources
Wiki
Pages
Latest activity
Media
New media
New comments
Search media
Downloads
Latest reviews
Search resources
EN Publishing
Store
EN5ider
Adventures in ZEITGEIST
Awfully Cheerful Engine
What's OLD is NEW
Judge Dredd & The Worlds Of 2000AD
War of the Burning Sky
Level Up: Advanced 5E
Events & Releases
Upcoming Events
Private Events
Featured Events
Socials!
Twitch
YouTube
Facebook (EN Publishing)
Facebook (EN World)
Twitter
Instagram
TikTok
Podcast
Features
Top 5 RPGs Compiled Charts 2004-Present
Adventure Game Industry Market Research Summary (RPGs) V1.0
Ryan Dancey: Acquiring TSR
Q&A With Gary Gygax
D&D Rules FAQs
TSR, WotC, & Paizo: A Comparative History
D&D Pronunciation Guide
Million Dollar TTRPG Kickstarters
Tabletop RPG Podcast Hall of Fame
Eric Noah's Unofficial D&D 3rd Edition News
D&D in the Mainstream
D&D & RPG History
About Morrus
Log in
Register
What's new
Search
Search
Search titles only
By:
Forums & Topics
Forum List
Latest Posts
Forum list
*Dungeons & Dragons
Level Up: Advanced 5th Edition
D&D Older Editions
*TTRPGs General
*Pathfinder & Starfinder
EN Publishing
*Geek Talk & Media
Search forums
Chat/Discord
Menu
Log in
Register
Install the app
Install
Community
General Tabletop Discussion
*TTRPGs General
Whither the Ultimatum?
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="kitsune9" data-source="post: 5808892" data-attributes="member: 18507"><p>Actually, this is a very realistic practice in Western corporations. I'm a financial analyst and I put together budgets, projections, and conduct cost-analysis. </p><p></p><p>Every business operation in which a business decision is made carries an opportunity cost. Basically, the business manager has to decide, "If I do X, then what is my opportunity cost for not doing Y?" While this may seem like kind of a dumb question, it's one that is constantly being asked and people like me has to create a number of scenarios. </p><p></p><p>The second part of the business decision is the required rate of return. Business managers in order to keep stockholders happy have to maximize returns on their stock performance for their level of risk. For example if you own Stock A and it's return is 1% that has medium risk or a 1 year CD and it's return is 1% that has safe risk, which would you choose? The CD of course. So Stock A not only needs to turn a profit, but they have to beat comparable investments as well. The required rate of return must be higher than the cost of capital for the company along with any comparable investments (most companies set this at the Treasury rate yields since that is technically the most safest rate you can get).</p><p></p><p>So getting back to Hasbro in which the company deals in billions of revenue. The setting of a $50 mm to $100 mm is more than likely because each product stream needs to 1. be able to exceed their required rate of return and needs to be at least this high in order to contribute toward the net profit, 2. exceed the opportunity cost.</p><p></p><p>So, the point is that I'm stating whether or not 4e turned or did not turn a profit or whether it reached that mark or not, or what the future of D&D will be. What I'm showing is that it is a very valid and reasonable business decision to have a business manager say, "$50 mm or mothballs" because of these factors and other similar circumstances involved. </p><p></p><p>When I dealt with clinical trials, pharmaceautical companies base their decision drug decisions and opportunity costs in the hundreds of millions range. A drug that will bring in $100 mm of profit to a big pharma like Pfizer won't even get made. Hasbro faces similar decisions with their product lines.</p><p></p><p>Happy gaming!</p></blockquote><p></p>
[QUOTE="kitsune9, post: 5808892, member: 18507"] Actually, this is a very realistic practice in Western corporations. I'm a financial analyst and I put together budgets, projections, and conduct cost-analysis. Every business operation in which a business decision is made carries an opportunity cost. Basically, the business manager has to decide, "If I do X, then what is my opportunity cost for not doing Y?" While this may seem like kind of a dumb question, it's one that is constantly being asked and people like me has to create a number of scenarios. The second part of the business decision is the required rate of return. Business managers in order to keep stockholders happy have to maximize returns on their stock performance for their level of risk. For example if you own Stock A and it's return is 1% that has medium risk or a 1 year CD and it's return is 1% that has safe risk, which would you choose? The CD of course. So Stock A not only needs to turn a profit, but they have to beat comparable investments as well. The required rate of return must be higher than the cost of capital for the company along with any comparable investments (most companies set this at the Treasury rate yields since that is technically the most safest rate you can get). So getting back to Hasbro in which the company deals in billions of revenue. The setting of a $50 mm to $100 mm is more than likely because each product stream needs to 1. be able to exceed their required rate of return and needs to be at least this high in order to contribute toward the net profit, 2. exceed the opportunity cost. So, the point is that I'm stating whether or not 4e turned or did not turn a profit or whether it reached that mark or not, or what the future of D&D will be. What I'm showing is that it is a very valid and reasonable business decision to have a business manager say, "$50 mm or mothballs" because of these factors and other similar circumstances involved. When I dealt with clinical trials, pharmaceautical companies base their decision drug decisions and opportunity costs in the hundreds of millions range. A drug that will bring in $100 mm of profit to a big pharma like Pfizer won't even get made. Hasbro faces similar decisions with their product lines. Happy gaming! [/QUOTE]
Insert quotes…
Verification
Post reply
Community
General Tabletop Discussion
*TTRPGs General
Whither the Ultimatum?
Top