Reference no: EM131627127

Prompt: In Milestone One, you will be making two choices to build your own scenario and start analyzing your scenario.

First, you will select either the CVS or Walgreens organization to be the focus of your Final Project. Next, you will choose one of two hypothetical situations detailed below to build a financial model that takes into account the company data of the company you choose.

First, Choose your company: CVS or Walgreens.

Next, review the two case study scenarios below and choose one hypothetical for the company you chose above.

Scenarios

1. Seeking global success is not a new concept to Fortune 500 companies and fuels the argument that all company activities should serve to maximize the wealth of its shareholders. Penetrating new markets is a path to potentially large-scaled opportunities and increased return on investment (ROI). Evaluating the feasibility of securing a global presence or expanding locally (shoring up your domestic presence) locally is the key capital investment trade-off decision facing the organization. As the chief financial officer (CFO), determine the critical elements that will influence your decision using actual company data as guided by the factors outlined within the Final Project Document.

2. Acquiring the competition is often an option to penetrate untapped markets, increase market share, and realize elevated stock performance. As the CFO, you have identified a clear opportunity to become the dominant leader in retail pharmaceutical sales through the acquisition of your principal competitor. The key capital investment trade-off decision facing the organization is whether your organization should acquire the competitor or expand by building new stores throughout the continental United States. What factors will influence your decision?

Now, construct a 250-to 350-word synopsis that analyzes the scenario addressing the following critical elements.

Specifically, the following critical elements must be addressed:

I. Analysis of Scenario

A. Analyze the overall competitive industry of the firm to determine what variables should go into the model, paying close attention to those issues that can have the largest impact on the firm. Describe why each variable you select is an important driver in this scenario.

B. Analyze the interest rate environment to determine what variables should go into the model, paying particular attention to the effect of current and future rates on the company, especially with regard to securing a line of credit. Describe why each variable you select is an important driver in this scenario.

C. Analyze the overall economy to determine what variables should go into the model, focusing specifically on how the macro-economy may impact this particular company (rather than all companies). Describe why each variable you select is an important driver in this scenario.

D. Discuss the role that variables such as market conditions play in creating financial models that effectively achieve strategic objectives.