Reference no: EM13826335
Genesis Energy’s newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified. A major consideration for Genesis Energy is assessing those short-term and long-term economic factors, which will greatly enhance the company’s ability to successfully transition to a viable international business. Grasping and correctly prioritizing these economic factors, supply and demand, interest rates, inflation, unemployment, and exchange rates are pivotal, thereby requiring expert guidance. Therefore, their first major decision was to hire a respected strategy-consulting firm, Sensible Essentials.
After meeting with the client team, Sensible Essentials concluded that the operations management team would significantly benefit from a more in-depth understanding of the financial environment at Genesis Energy. This understanding needed to encompass not only sales, costs, and profitability forecast under the new strategic plan, but also the way expansion would highlight the need to manage working capital and cash flow in order to try to minimize the need for external financing.
As the lead consultant for Sensible Essentials, do the following:
Describe and evaluate the financial environment at Genesis Energy by using ratio analysis of the company.
Choose one ratio from each of the five categories (liquidity, asset management, debt management, profitability, and market value), and do a 3-year ratio trend analysis. Compare these results to the industry averages. What do the results tell you?
Name three specific options that are available to Genesis Energy for obtaining needed capital.
Identify and explain two ways Genesis Energy can improve its strategy.
Explain what specific macroeconomic factors are likely to affect genesis, i.e., inflation, interest rates, exchange rates etc. Please do a brief country risk assessment and discuss the most likely problems a company like Genesis Energy is likely going to confront when contemplating an international expansion. What would be the least risky avenue for them to get their product/service to the country you have chosen? Which entry mode is the riskiest? Explain.
Write a 3–4-page paper in Word format. Apply APA standards to citation of sources. Then, create a 6–8-slide PowerPoint with Speaker’s notes and references (including research) presenting your findings to the Genesis Energy operations management team.
Scenario of gaming consoles product life cycle
: Scenario Of Gaming Consoles Product Life Cycle
|
Prepare and post the adjusting entries
: Prepare and post the adjusting entries - Prepare a 10-column worksheet for the year ended 30th June, 2014
|
What other external dynamics are impacting labor unions
: What generational aspects (i.e., baby boomers, Generation X, Generation Y) have influenced labor unions and will continue to do so? What other external dynamics are impacting labor unions? For example, how does the global workforce impact union st..
|
Mutually exclusive projects that will not be repeated
: You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.25% for project A and 10.75% for project B. Which project should you accept and why?
|
Evaluate the financial environment at genesis energy
: Genesis Energy’s newly established operations management team decided to seek outside assistance in developing a long-term operating plan that also addresses the financial issues identified. Describe and evaluate the financial environment at Genesis ..
|
Guaranteed investment account with a promised rate
: Bradley Snapp has deposited $6,000 in a guaranteed investment account with a promised rate of 6% compounded annually. He plans to leave it there for 4 full years when he will make a down payment on a car after graduation. How much of a down payment w..
|
Analysis for both semi-annual and continuous compounding
: Mr. Miser, who is 35 years old, has just inherited $11,000 and decides to use the windfall towards his retirement. He places the money in a bank which promises a return of 6% per year until his planned retirement in 30 years. If his funds earn 6% int..
|
Success or failure of a merger
: There are many factors that can influence the success or failure of a merger. Prior to merging with another company, managers should consider operational synergy, economies of scale, financial synergy, company valuation, cash flows, and tax saving..
|
Net present value of project that has initial cash outflow
: What is the net present value of a project that has an initial cash outflow of $12,670 and the following cash inflows? The required return is 11.5%.
|