What is anticipated economic life of the proposed expansion

Assignment Help Business Management

Reference no: EM131388276

Project Milestone One Guidelines

Overview: The final project for this course is the creation of an external capital funding proposal.

Most businesses face a landscape of uncertainty and a never-ending stream of risks and opportunities. Managers must continually project the likely financial impact of decisions, make recommendations, act on those decisions, determine how to pay for them, and evaluate the costs and effectiveness of what has been done. Many decisions are short-term, routine, and operational. Others are longer-term investment decisions that require substantial new resources, such as developing new services, expanding into new geographic markets, or undertaking business combinations or spin-offs. Each requires managers to forecast, plan, and make decisions based on a thorough understanding of both internal and external factors that can affect a company's financial success.

For the summative assessment in this course, you will bring your finance and economics knowledge to bear by preparing an external capital funding proposal for a major international investment at a publicly traded corporation. In order to secure the support of potential financial backers, your proposal will need to lay out what the proposed investment opportunity is, how it fits within the company's broader mission and goals, its financial impact, and the amount being requested and why (including alternative funding mechanisms considered). In addition, it will also need to include information on the organization's context, risk factors, and microeconomic assumptions that could affect the success of the investment.

Prompt: You have already chosen the company you will use for your final project, and you have started a narrative description of your expansion project into another country. In this milestone, you will build on that narrative description providing sufficient detail about the expansion, its costs, and its time frame to give a loan committee a firm sense of the proposed investment. You will also analyze the impact of the investment proposal on your business by explaining why now is the right time for this investment given the global context and by explaining how the investment is a good strategic fit with your company. This milestone addresses all of Section II and Section III (Parts A and B only) of the final project.

Specifically, the following critical elements must be addressed:

II. Investment Project: Use this section to describe the investment for which you are seeking funding, its costs, and time frame. Specifically, you should:

A. Describe the investment project. Be sure to provide sufficient detail to give the loan committee a firm sense of the parameters of the activity, the need for it, and what financial metrics are relevant for determining success. In other words, what do you propose to do, where, what marketplace need will it fill, and how will you measure success?

B. Specify the resources the project will require and where these resources will come from. In addition to noting the amount of the loan you are requesting, you should also consider human resources, facilities, government approvals, intellectual property, access to natural resources, and other resources that might be required to carry out the project.

C. Time frame. When will the project start, what is the anticipated economic life of the proposed expansion, and how will you decide if, when, or how to exit? Justify your choices with appropriate financial metrics.

III. Justification: In this section, you should analyze the impact of the investment proposal on your business. In particular, you should cover:

A. Why is now a good time for this investment given the global context? Justify your response, citing specific external factors such as trade regulations, foreign currency considerations, or trends in foreign direct investment that might affect business financial decisions.

B. Strategic fit. Use this section to discuss why the investment proposal makes sense for your company strategically. Specifically:

1. How does the investment align with the company's organizational and financial priorities? Support your argument with evidence from company reports and financial statement analysis designed to persuade the lender that the investment is a good strategic fit for your company.

2. How does the project fit within the global microeconomic environment? Support your response with evidence. For example, would the expansion tap unmet demand for the company's key products or services or fill a new niche? How do you know?

3. How does the project build on the organization's core competencies and comparative advantage? For example, does the company have a strategic advantage from intellectual property, regional expertise, suppliers, or organizational structure?

Reference no: EM131388276

Questions Cloud

Identify the factors you consider necessary : Identify the factors you consider necessary to increase the likelihood for successful change initiatives to occur in schools that focus on school improvement and enhancing teacher instructional practice.

Deregulating the financial system : What do you think President-Elect Donald Trump’s philosophy of regulating or deregulating the financial system? What do you think will happen to the Dodd-Frank legislation?

What is revealed about human nature : One of the central components of every worldview is the topic of human nature. The topic of human nature asks questions about human value, human flourishing, and human purpose. Within the Christian worldview, the issue of sin and the consequences ..

The market back into equilibrium : Q = A(P-0.10)(I0.2)N where Q is the number of rental units demanded, A is a constant, P is the rental price per month, I is the income of the relevant population, and N is the number of family units in the relevant population. If I and N remain cons..

What is anticipated economic life of the proposed expansion : MBA 640- When will the project start, what is the anticipated economic life of the proposed expansion, and how will you decide if, when, or how to exit? Justify your choices with appropriate financial metrics.

Price level-output level in short run and in the long run : Assume that the economy is initially in equilibrium at potential GDP. Use an AD-AS graph to show the effect of an increase in government purchases on the price level and the output level in the short run and in the long run. Explain what is happening..

Verify the numbers in the second paragraph : By investing the $25,300 at current savings account rates of 3.5% (compounded monthly), Emily could generate interest of $3,796.00 which means she'd be $631.52 better off by investing her money in a savings account.

Explain the importance of behavioural change for josef : Josef presents at the service being aggressive to the staff at reception. He does this every time he arrives. Explain the importance of behavioural change for Josef. Using the Stages of Change model, what type of practices would you consider for use..

What was jesus point in the teaching : Jesus discussed with his disciples what people were saying about him. Jesus asked his disciples directly, "But who do you say that I am?" In this assignment you will have the opportunity to demonstrate your understanding of who Christians claim Je..

User Account

All Pages