CLC – Steps Required for Financial Recommendations
Start Date
Sep 5, 2024, 12:00 AM
Due Date
Sep 11, 2024, 11:59 PM
Points
70
Rubric
View Rubric
Status
Upcoming
Group
Requires Lopeswrite
Assessment Description
This is a Collaborative Learning Community (CLC) assignment.
Throughout this course, you will work in a CLC group on a strategic case analysis project. This project consists of different parts you will complete each week that build on each other.
Go to the Strategy Club website and review the “Sample Strategic Plan for Sanderson Farms” (2020) and “Juniper Networks” (2020) under the student resources section. This sample strategic plan is an example of what your completed strategic case analysis should look like at the end of the course.
Every strategy will have associated costs. Determining how to provide enough necessary capital to adequately cover the projected costs is one of the more critical steps required to keep firms competitive. For each of the following parts, use your CLC group’s Strategic-Planning Template.
Part I: EPS / EBIT Analysis
Prepare an EPS/EBIT Analysis for your CLC group’s company by doing the following:
- Step 1: Refer to and follow the steps given in Chapter 8 of Strategic Management: A Competitive Advantage Approach, Concepts, and Cases to learn how to complete an EPS/EBIT analysis.
- Step 2: Use the data you have compiled about your company throughout the course to assist you.
- Step 3: Determine whether the firm should use all debt, all stock, or a 50-50 combination of debt and stock to finance their market-development strategy.
- Step 4: Use your Strategic-Planning Template to complete the EPS/EBIT tables and chart.
- Step 5: In 50-100 words, provide a summary of the recommendations and implications of the EPS/EBIT analysis.
Part II: Financial Statements
Prepare a projected income statement and balance sheet for the firm by doing the following:
- Step 1: Refer to and follow the steps given in Chapter 8 of Strategic Management: A Competitive Advantage Approach, Concepts, and Cases to learn how to complete financial statements.
- Step 2: Apply current acceptable financing percentages afforded your CLC group’s company according to the Standard and Poor’s or Moody’s rating.
- Step 3: Make any other assumptions necessary for this segment of the project and have them approved by the instructor prior to completing this part of the assignment.
- Step 4: Assume that the firm needs to secure capital to implement the strategy your team proposes to recommend. The instructor will give you an amount if the team does not determine an amount that will accommodate the production of the required reports.
- Step 4: Use the information gathered above to prepare a projected income statement and balance sheet for the firm using your Strategic-Planning Template.
- Step 5: In 50-100 words provide an overview of the analysis for both the income statement and balance sheet.
Part III: Cash Value
Determine the cash value of the company and create a valuation table by doing the following:
- Step 1: Refer to and follow the steps given in Chapter 8 of Strategic Management: A Competitive Advantage Approach, Concepts, and Cases to learn how to determine the cash value of your CLC group’s company.
- Step 2: To construct this element of the project, it will be necessary for the team to make use of the financial information provided initially about the company as well as the information and data that you have discovered as a result of the research and assignments completed thus far in the course.
- Step 3: Calculate the financial worth of the firm based on four approaches: (1) the net worth method, (2) the net income method, (3) the price-earnings ratio method, and (4) the outstanding shares method.
- Step 4: Use your Strategic-Planning Template to complete the company valuation tables.
- Step 5: In 50-100 words, provide an overview of the analysis for how you determined the cash value of the company. Calculate the average of the four methods. State a dollar amount of how much the company is worth.
Part IV: Projected Financial Ratios
Prepare Projected Financial Ratios for your company by doing the following:
- Step 1: Refer to and follow the steps given in Chapter 8 of Strategic Management: A Competitive Advantage Approach, Concepts, and Cases to learn how to prepare projected financial ratios.
- Step 2: If you completed the previous parts of this assignment, the template will generate projected financial ratios after the team converts the firm’s financial statements to the template format and then creates projected financial statements based on recommended strategies.
- Step 3: Compute the projected current ratio, debt-to-equity ratio, and return-on-investment ratio. Use your Strategic-Planning Template to complete the company ratio tables.
- Step 4: In 50-100 words, provide an overview of the analysis for this part. Explain how the projected ratios compare to the prior year ratios? Explain the importance of this comparison.
Part V: Retained Earnings
Create a Retained Earnings Table by doing the following:
- Step 1: Refer to and follow the steps given in Chapter 8 of Strategic Management: A Competitive Advantage Approach, Concepts, and Cases to learn how to complete a retained earnings table.
- Step 2: Use the data you have compiled about your company throughout the course to assist you.
- Step 3: Use your Strategic-Planning Template to complete the company retained earnings table.
- Step 4: In 50-100 words provide an overview of the analysis of the implications of the retained earnings for the firm.
Deliverables
- Part I: Submit the EPS/EPIT Analysis: Tables and Chart.
- Part I: Submit a summary (50-100 words) of your recommendations and analysis for the EPS/EBIT data.
- Part II: Submit the Financial Statements: Income Sheet and Balance Sheet.
- Part II: Submit an overview of the analysis (50-100 words) for both the projected financial statement and balance sheet.
- Part III: Submit the valuation table.
- Part III: Submit the overview of the analysis (50-100 words) of the analysis including the company’s worth. Calculate the average of the four methods. State a dollar amount of how much the company is worth.
- Part IV: Submit the Projects Financial Ratios tables.
- Part IV: Submit the overview of the analysis (50-100 words) for the projected financial statements of the firm.
- Part V: Submit the Retained Earnings Table.
- Part V: Submit the overview of the analysis (50–100 words) for the retained earnings of the selected firm.
- Additionally, summarize (350-750 words) the importance of each of the five parts above in this assignment (Parts I-V). Explain how each of the parts contribute to the firm’s success going forward.
Additional Information for the Deliverable(s)
Submit the Strategic Planning Template with the completed tables and charts as well as a single Word document containing the analyses to the digital classroom.
All analysis in the paper should be substantiated with a minimum of five relevant and credible sources in support of your content. Credible sources need to be relevant to the assessment and can include GCU Library databases, corporate websites and peer-reviewed sources, or those provided in the topic Resources.
While APA style is not required for the body of this assignment, solid academic writing is expected, and in-text citations and references should be presented using APA documentation guidelines, which can be found in the APA Style Guide, located in the Student Success Center.
This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.
You are required to submit this assignment to LopesWrite. A link to the LopesWrite technical support articles is located in Class Resources if you need assistance.
