Evidence-base financial decisions

An 8-10 slide presentation to your staff describing your analysis, linking what tools you utilized and why you chose those tools. You will use data to support your evidence-base financial decisions. You will also explain your recommendations to maximize stakeholder value, translating those to tactical outcomes to be implemented by your staff.

Introduction

This assessment builds on your prior work in Assessments 1 and 2. It is a presentation to your staff describing you analysis, linking what tools you utilized and why you chose those tools. You will use data to support your evidence-base financial decisions. You will also explain your recommendations to maximize stakeholder value, translating those to tactical outcomes to be implemented by your staff.

  • Apply the theories, models, and practices of finance to the financial management of an organization.
  • Analyze financing strategies to maximize stakeholder value.
  • Apply financial analyses to business planning and decision making.
  • Use data to support evidence-based financial decisions.

Scenario

The senior leadership has approved your recommendations to move forward. You are now tasked with operationalizing your recommendations. Meeting with your staff, you will translate recommendations to strategies and corresponding tactical objectives. You will explain how you used financial analysis to develop these recommendations, discussing the financial tools you will use to monitor implementation progress.

Your Role

You are one of the high-performing financial analyst managers at ABC Healthcare Corporation and are under consideration for a promotion to Director of Operations.

Requirements

Follow these steps to complete this presentation:

  • You are presenting to your staff a summary of the reports presented to senior leadership (Assessments 1 and 2).
  • Start by presenting the overall current financial condition of the company as presented to senior leadership (one to two slides).
  • Provide an overview of your analysis, linking what tools (financial statements, ratios, industry trends, capital structure) you utilized and why you chose these tools (two slides).
  • Link the data used to support your evidence-based financial decisions, providing justification for the recommendations (two slides).
  • State the recommendations focused on maximizing stakeholder value into strategies newly adopted by the company, i.e., expansion to a new geographical market, the development of a new dividend policy, changes in capital expenditures, reduction of workforce (one slide).
  • Translate those strategies to tactical objectives to be implemented by your staff, noting evidenced-based academic citations (one to two slides).
  • Discuss what financial tools you will use to monitor the progress of these tactics (one slide).

Deliverable Format

  • Be sure to use a bullet format in your slides but also include detailed narrative supported by relevant literature citations in the notes section.
  • Ensure written communication is free of errors that detract from the overall message and quality.
  • Use at least three scholarly resources.
  • Length: 8–10 content slides in addition to title and reference slides.
  • Use 12 point, Times New Roman.

Using Financial Information

Using Financial Information

You and a business partner are considering the purchase of a firm that has been in business for five years.  Your associate does not have any financial accounting expertise, but recognizes that financial information is central to every organization.  Recently, this associate, who is not familiar with financial statements, asks you a series of questions.  In your own words respond to the following questions that are being asked by your business partner.

  • How does a balance sheet differ from an income statement?
  • What does the term ‘owners’ equity’ mean?
  • What is the difference between fixed assets and total assets?
  • What is the difference between long-term liabilities and current liabilities?
  • How would you describe the difference between a statement of cash flow and an income statement?
  • What can be used to identify a business’ financial strengths and weaknesses?
  • Why should we be concerned with all these financial processes when we can get an accounting firm to handle this stuff while we focus on daily business operations?

This assignment submission must be at least 3-pages, not including APA cover page or references page using the APA Manual 7th ed. Make sure references are formatted correctly not leaving out any information from sources.

MBA Business Plan component

Purpose

MBA Business Plan component

Context

One of the most important elements in a business plan is the market analysis. A market analysis is a qualitative and quantitative assessment of a market. It includes data collection and estimation in reference to the market size and value, characteristics of the intended customer base, in-depth evaluation of the competition, barriers to entry, and the regulatory environment. An accurate and detailed market analysis allows entrepreneurs to determine whether the market is sufficiently large to build a sustainable, profitable business. 

In this assignment, you will complete a market analysis for your proposed organization and create a report that can be included within a business plan.

Instructions

Write a 525-word report that includes the following sections:

  • Section 1: Business overview, mission, and vision
  • Section 2: A Market analysis that includes the following components:
  • Market overview/needs analysis
  • Target market
  • Competitive analysis
  • Value proposition
  • Section 3: Recommendation

Use the attached Market Analysis Research document for details on what to include in each section.

Cite references to support your assignment.

Format your citations according to APA guidelines.

(Barilla Pasta) brand

write a paper answering the questions established in this brief about (Barilla Pasta) brand

1. Define the different target groups/audiences of your brand [10%], and identify its real-life media strategy to reach all of them differentiating between Paid, Owned, and Earned media [25%].

2. Your brand is launching a new product/service (of your choice) in your country/market. Please develop the media plan for 2021 considering the following:

o Define the target groups/audiences (demographics and psychographics) for the particular product/service chosen. [10%]

o Select the Media Mix (taking into account the media landscape of your country) and briefly explain the rationale behind your selection. [10%]

o Explain how you would distribute your media Budget. Create a pie chart showing allocated percentages per media (based on your Media Mix). [10%]

o Define the seasoning and timing of your strategy (when would you place ads?). [10%]

3. Perform secondary research online to identify a negative reputation issue related to your brand, and evaluate how it was affected by it [25%].

Globalization and Information Research 

Purpose 

This assignment is intended to give you an opportunity to strengthen your skills in gathering and analyzing business-related information. It provides a deeper understanding of how companies can look at globalization as part of their strategic and operational plans. The assignment has two parts: one focused on information research and analysis, and the other is on applied analytics.

Resources: 

·  Microsoft Excel®

·  “How Netflix Expanded to 190 Countries in 7 Years” from Harvard Business Review

·  Call Center Waiting Time– The file is attached 

Part 1: Globalization and Information Research

Context: Companies that perform well in their country of origin usually consider expanding operations in new international markets. Deciding where, how, and when to expand is not an easy task, though.

Many issues need to be considered before crafting an expansion strategy and investing significant resources to this end, including:

·  the level of demand to be expected for the company’s products/services

·  presence of local competitors

·  the regulatory, economic, demographic, and political environments

Carefully researching and analyzing these and other factors can help mitigate the inherent risk associated with an overseas expansion strategy, thus increasing the likelihood of success.

As a data analyst in your company’s business development department, you’ve been tasked with the responsibility of recommending countries for international expansion. You’ll write a report to the company’s executive team with your research, analysis, and recommendations.

Instructions: 

Write a 525-word summary covering the following items:

·  According to the article listed above, what were the most important strategic moves that propelled Netflix’s successful international expansion?

·  The article mentions investments in big data and analytics as one of the elements accompanying the second phase of overseas expansion. Why was this investment important? What type of information did Netflix derive from the data collected?

·  According to the article, what is exponential globalization?

·  Not all international expansion strategies are a resounding success, however. Research an article or video that discusses an instance in which an American company’s expansion efforts in another country failed. According to the article/video you selected, what were the main reasons for this failure? Do you agree with this assessment?

·  Explain some of the reasons why certain companies’ expansion plans have failed in the past.

Part 2: Hypothesis testing 

Context: Your organization is evaluating the quality of its call center operations. One of the most important metrics in a call center is Time in Queue (TiQ), which is the time a customer has to wait before he/she is serviced by a Customer Service Representative (CSR). If a customer has to wait for too long, he/she is more likely to get discouraged and hang up. Furthermore, customers who have to wait too long in the queue typically report a negative overall experience with the call. You’ve conducted an exhaustive literature review and found that the average TiQ in your industry is 2.5 minutes (150 seconds).

Another important metric is Service Time (ST), also known as Handle Time, which is the time a CSR spends servicing the customer. CSR’s with more experience and deeper knowledge tend to resolve customer calls faster. Companies can improve average ST by providing more training to their CSR’s or even by channeling calls according to area of expertise. Last month your company had an average ST of approximately 3.5 minutes (210 seconds). In an effort to improve this metric, the company has implemented a new protocol that channels calls to CSR’s based on area of expertise. The new protocol (PE) is being tested side-by-side with the traditional (PT) protocol.

Instructions:

Access the Call Center Waiting Time file. Each row in the database corresponds to a different call. The column variables are as follows:

·  ProtocolType: indicates protocol type, either PT or PE

·  QueueTime: Time in Queue, in seconds

·  ServiceTime: Service Time, in seconds

·  Perform a test of hypothesis to determine whether the average TiQ is lower than the industry standard of 2.5 minutes (150 seconds). Use a significance level of α=0.05.

·  Evaluate if the company should allocate more resources to improve its average TiQ.

·  Perform a test of hypothesis to determine whether the average ST with service protocol PE is lower than with the PT protocol. Use a significance level of α=0.05.

·  Assess if the new protocol served its purpose. (Hint: this should be a test of means for 2 independent groups.)

·  Submit your calculations and a 175-word summary of your conclusions.

Amazon (AMZN)

Amazon (AMZN) from Dec. 2018- Dec. 2020

Corporation and Competitor Comparison: Stock Price, PE ratio and earnings per share trend analysis with each compared to their competitors and the market (2-page written text min).  A three-year trend analysis minimum.  Provide values for your assigned corporation and at least two key market competitors.  Provide a written analysis including comparison to the same two key market competitors.

Capital Structure Assessment

i.   (Debt to Equity Ratio) including any significant changes in the firm’s capital structure over the last three to five years.

ii.  Evaluation of the firm’s current Beta (trend not required).

iii.  Calculate the weighted average cost of capital (WACC) using both the Security Market Line Approach and the Dividend Growth Model Approach.  Compare the WACC for each approach, discussing the advantages and disadvantages of each approach.

Cash Flow Assessment:Review of the firm’s statement of cash flows for the last three to five years, including an assessment of the firm’s free cash flow over the last three to five years.

Conclusion with Analysts’ Recommendations:

i.  Your own closing summary of the firm’s financial health in relation to the overall economy and within its industry.

ii.  Your own review of current analyst recommendations as a guide

Amazon Prime Video

BUSI520_Module_7_Week_7_MMIP_Questions1These questions must be answered for Amazon Prime Video

Q1. Explain the elements of your promotional mix. (Ch. 13)

Q2. Explain whether you use a push or pull promotional strategy, or a combination of both. (Ch.13)

Q3. Discuss your use of digital, mobile, or social media marketing. (Ch.13)

Q4. Discuss the elements of your advertising message. (Ch. 14)

Q5. Explain your use of sales promotion, public relations, live events, publicity, or personal selling.

(Ch. 14)

EXERCISES

EXERCISES

Question 1 (20 points)

Suppose there are two bonds you are considering:

Bond A

Bond B

Maturity (years)

15

25

Annual Coupon rate (%)

6

4

Par Value

1000

1000

a. If both bonds had a required rate of return of 5%, what would the bonds’ prices be?

b. Re-calculate the prices of the bonds if the required return falls to 7%.  Could you explain why the price increases or decreases given this change in required return?

Question 2 (20 points)

Calculate the NAV (Net asset value) of the following fund, assuming 500 shares are outstanding. Calculate the percentage change in the NAV of the fund if stock C climbs to $50.7.

Stock

Shares owned

price

A

1,500

$6.75

B

4,000

$45.30

C

2,000

$32.04

Cash

n.a.

$3,508

a) Will the NAV increase or decrease? Why?

b) Calculated your return on your investment given the change in NAV

Question 3 (20 points)

Suppose the Swiss Franc is currently traded at CHF 0.89/$. The British Pound is traded at GBP 0.79/$. Ignoring transaction costs:

a. Determine the CHF/GBP exchange rate consistent with these direct quotations.

b. Suppose the CHF/GBP cross rate in the market was at CHF 1.05/GBP. Is there any arbitrage opportunity?

Question 4 (30 points)

Consider the following three stocks:

• Stock A is expected to provide a dividend of $50 a share forever

• Stock B is expected to pay a dividend of $8 next year. Thereafter, dividend growth is expected to be 2% a year forever.

• Stock C is expected to pay a dividend of $15 next year. Thereafter, dividend growth is expected to be 12% a year for 4 years (until year 5) and zero thereafter.

a. If the market capitalization rate for each stock is 8%, which stock is the most valuable?

b. What happens if the capitalization rate drops to 6%? Explain

c. Assume EPS for stock A is 4, Stock B 9, and Stock C 15. Calculate the P/E ratio for each. Briefly explain what the different values mean to you.

Question 5 (10 points)

Word limit: 500 words.

Imagine that you have 100 000 EUR for medium-term investments. Which asset classes you would choose? (Specify share of each asset class).

How would you manage the risk of your investment protfolio? (Be concrete)

Would you pick some individual securities or would you invest in broad market portfolios? Why? If you decided to invest in some individual securities, explain how would you choose securities to your portfolio?

Prepare a cash forecast

1. Prepare a cash forecast considering the following:

Direct sales paid 30 days

Sales to distributors 50% cash, 25% after 30 days, 25% after 60 days.

Local suppliers paid 60 days, import suppliers paid 30 days.

Personnel cost (Direct personnel cost + Indirect personnel cost +Sales department + Administration) and taxes, are paid at the end of the month.

Commissions from sales agent (5%) are paid after receiving full amount from the customers (Direct customers and distributors).

Starting cash January 1st is 5.000€

At the end of December, the company has a loan of 20.000€. The company pays interest every month, based on an annual interest of 6%, (0.5% per month), calculated in base of the loan balance of the previous month.

Their credit facility has a maximum amount of 300.000€

The company wants to hold a minimum cash balance of 20.000€

Prepare a cash planning.

The company issued Bonds 5 years ago, and they have to pay 500.000€ by June 30th.

Will they be able to pay in time?

What is the final cash balance by June 30th.?

(65 points)

2.

You are requested to find deviations between actual and budget for all income statement accounts.

Show deviations in % over budget.(5 points)

Show all Income statement lines as  percentage of Sales.(5 points)

Explain the deviation in sales, and split it between volume variance and price variance.(15 points)

Show income statement per unit for both Budget and actual. (5 points)

Give an explanation for the deviations of the company.(5 points).

Excel spreadsheet

The purpose of this assignment is to conduct internal and external research to determine previously attempted solutions and potential solutions that could be implemented to solve identified problem.

For this assignment, you will need to create an Excel spreadsheet that summarizes the data collection you have completed. The spreadsheet should indicate the date on which particular data were collected, the source of the data collected, the type of data (qualitative or quantitative), and a one or two sentence summary of the data findings. Name the Excel spreadsheet as follows: lastname.firstname.datacollection.xlsx

Please note that as part of the research process, taking the initiative to speak with management and then requesting and reviewing business metrics and operations reports will allow you to find the data you need for the project while also showing your employer that you can be proactive and use critical thinking to solve problems within the organization.

Part 1:

The first step in data collection is to conduct research. You are looking for specific, measurable data (statistics and numbers) related how the problem is affecting the organization. This information should be recorded in the form of a chart or graph that presents the data so key decision makers can see the “cost” of failing to address the problem. Use the Topic Materials for assistance with creating Excel graphs and charts that can be used to illustrate your findings.

Part 2:

Next, conduct additional research to learn what has already been done to address this problem within the organization. Ask questions and interview individuals who assisted with the implementation of previous solutions used to address the problem. Prior to meeting with individuals, develop a list of questions about previous solutions. Consider factors such as customer importance, efficiency, quality, employee satisfaction, and cost effectiveness. You will want to make sure you ask questions that allow you to gather measurable data and include information about how successful previous solution options were in addressing each of the problems. When you have completed your research, the findings should be summarized using at least one chart or graph that represents the data you have collected. Use the Topic Materials for assistance with creating Excel graphs and charts that can be used to illustrate your findings.

Part 3:

The last step in determining potential solutions is to conduct external research. Using Internet and industry resources, research ways that other companies have addressed this issue or one very similar to it. Look for specific information related to the customer response, efficiency, quality, employee satisfaction, and cost effectiveness of solutions others have implemented. Find at least five potential solutions you can consider for solving the problem you have identified. Your goal in conducting this research is to find practical examples and measurable data related to how other companies and related industries have resolved the same problem or one very similar to it. When you have completed your research, the findings should be summarized using at least one chart or graph that represents the data you have collected. Use the Topic Materials for assistance with creating Excel graphs and charts that can be used to illustrate your findings.

The data collection Excel spreadsheet and the three data summary charts/graphs you have created from the research you have conducted should be submitted to your instructor.

The three charts/graphs you create will be used again in your Business Proposal Presentation in Topic 7 and the Final Business Proposal you will submit in Topic 8.

General Requirements:

While APA style is not required for the body of this assignment, solid academic writing is expected, and documentation of sources should be presented using APA formatting guidelines, which can be found in the APA Style Guide, located in the Student Success Center.