Busi 690case Study Projections Npv Compilation Assignmentgrading R ✓ Solved
BUSI 690 CASE STUDY: PROJECTIONS, NPV, COMPILATION ASSIGNMENT GRADING RUBRIC Criteria Levels of Achievement Content 70% 98 Points Advanced (A) Proficient (B) Developing ( < C ) Not present Points Earned Executive Summary (8 points) 7 to 8 points · Provides a clear overview of the paper’s contents. · Contains enough information about the case study. · Captures the purpose and the main recommendation(s) in 1–2 sentences. · Provides key evidence for the major points. · Closes with a brief summary and rationale for the chosen strategy. 6 points · Provides an overview of the paper’s contents. · Contains some information about the case study. · Captures most of the purpose and the main recommendation(s) in 1–2 sentences. · Provides most key evidence for the major points. · Closes with a brief summary that contains some rationale for the chosen strategy.
1 to 5 points · Provides a less than clear overview of the paper’s contents. · Lacking in information about the case study. · Captures some of the purpose and the main recommendation(s) in 1–2 sentences. · Provides some key evidence for the major points. · Brief summary and rationale are lacking in content for the chosen strategy. 0 points No key components were included. Alternative Strategies (10 points) 9 to 10 points Lists two or more alternative strategies (giving advantages and alternatives for each). 8 points Lists 1 or more alternative strategies giving some advantages and alternatives for each. 1 to7 points Lists less than 2 alternative strategies and gives a minimum amount of advantages and alternatives for each.
0 points No key components were included. Pro-Forma Financial Statements (30 points) 27 to 30 points · Includes and analyzes Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years. · Each Pro-Forma year has 2 columns: 1 with strategy and 1 column without strategy. · Includes Pro-Forma ratios for the first year out with deltas contrasting from the most current year’s ratios. 21 to 26 points · Includes and analyzes Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years with minor errors. · Each Pro-Forma year has 2 columns: 1 with strategy and 1 column without strategy, with 2-5 minor errors. · Includes most of the Pro-Forma ratios for the first year out with deltas contrasting from the most current year’s ratios.
1 to 20 points · Includes and analyzes Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years. · Each Pro-Forma year has 2 columns: 1 with strategy and 1 without strategy, there are greater than 6 errors. · Includes some of the Pro-Forma ratios for the first year out with deltas contrasting from the most current year’s ratios. 0 points No key components were included. NPV and Cost Analysis (20 points) 17 to 20 points · Develops an NPV figure/table. · Clearly articulates the cost of the strategy (-cf0). · Clearly articulates the subsequent Pro-Forma cash flows (cf) for the NPV analysis. · Thoroughly analyzes the NPV. 12 to 16 points · Develops an NPV figure/table, some minor errors. · Articulates the cost of the strategy (-cf0). · Articulates the subsequent Pro-Forma cash flows (cf) for the NPV analysis. · Analyzes the NPV.
1 to 11 points · Develops an NPV figure/table, calculation is incorrect or missing key components. · Discusses but does not include details of the cost of the strategy (-cf0). · Discusses the Pro-Forma cash flows (cf) for the NPV, lacks detail and thoughtful analysis. · Discusses the NPV, analysis should be further developed. 0 points No key components were included. Implementation of Strategic Plan (10 points) 9 to 10 points · Includes an actionable timetable agenda for accomplishing the new strategy. · Addresses the key items of who, what, how, and when of the implementation process. 8 points · Includes a timetable agenda, with most details, for accomplishing the new strategy. · Addresses most of the key items of who, what, how, and when of the implementation process.
1 to 7 points · Includes a basic timetable agenda for accomplishing the new strategy, additional details are needed. · Addresses some of the key items of who, what, how, and when of the implementation process. 0 points No key components were included. Recommended Strategies and Objectives (20 points) 18 to 20 points · Thoroughly analyzes the new strategy. · States and discusses the cost to implement the new strategy. · Explains the benefits of the new strategy for long term organizational success. · Outlines the challenges and/or disadvantages of the strategic choice. 16 to 17 points · Analyzes the new strategy. · States and discusses the cost to implement the new strategy, minor details missing. · Explains the benefits of the new strategy for long term organizational success. · Outlines the challenges and/or disadvantages of the strategic choice.
1 to 15 points · Thoroughly analyzes the new strategy. · States and discusses the cost to implement the new strategy, missing details. · Explains the benefits of the new strategy for long term organizational success. · Outlines the challenges and/or disadvantages of the strategic choice. 0 points No key components were included. Structure 30% 42 points Advanced (A) Proficient (B) Developing ( < C ) Not present Grammar/Spelling/ Format/References (42 points) 36 to 42 points Proper spelling and grammar are used. APA format including a cover page, citations and references are correct. Matrices were included and properly labeled.
31 to 35 points Between 1–4 spelling, grammar, format or citation errors are present. Matrices were mostly included but there were a few errors or missing a few data itmes. 1 to 30 points Between 5–9 spelling, grammar, format or citation errors are present. Some matrices were included but there were errors or missing data. 0 points More than 10 spelling, grammar, format, or citation errors are present. Total Points /140 Instructors Comments:
Paper for above instructions
BUSI 690 Case Study: Projections, NPV, Compilation Assignment
Executive Summary
In the contemporary business landscape, effective strategic decision-making is of paramount importance. This paper provides a comprehensive analysis of an organization’s potential strategic initiatives through the employment of financial projections and the Net Present Value (NPV) method. The case study focuses on a leading firm in the technology sector aiming to expand its operations. The purpose is to evaluate the financial implications of different strategic alternatives. Overall, this analysis advocates for pursuing a market penetration strategy, backed by robust financial modeling and projections which indicate favorable outcomes characterized by positive cash flows and a healthy NPV that supports long-term sustainability.
Alternative Strategies
In evaluating strategic alternatives, two prominent strategies, namely market penetration and diversification, emerge as viable options.
1. Market Penetration Strategy:
- Advantages:
- Increases brand recognition and loyalty.
- Potentially higher market share with existing product lines.
- Lower risk compared to entering new markets.
- Disadvantages:
- Market saturation risks may limit growth.
- The competitive landscape is intense and may require significant marketing expenditures.
2. Diversification Strategy:
- Advantages:
- Spreads risk across different sectors or products.
- Potential access to new customer bases and revenue streams.
- Disadvantages:
- Requires significant investment and resources.
- Difficulties in managing different operational segments may arise.
These strategic alternatives need thorough financial scrutiny, including feasibility studies and risk assessments, to determine which will yield the greatest benefit for the firm (Grant, 2021).
Pro Forma Financial Statements
Pro Forma financial statements provide a forward-looking view of financial performance and are crucial tools in strategic planning. This analysis includes the Income Statement (I/S), Balance Sheet (B/S), and Statement of Cash Flows (SCF) for three years, comparing the projected outcomes of both strategies.
Income Statement Projections:
| Year | With Strategy | Without Strategy |
|--------------|---------------|------------------|
| Year 1 | ,200,000 | 0,000 |
| Year 2 | ,500,000 | 0,000 |
| Year 3 | ,800,000 | ,100,000 |
Balance Sheet Projections:
| Year | With Strategy | Without Strategy |
|--------------|---------------|------------------|
| Year 1 |