Assignment #4 – Business 100
Name:
Background information needed to answer Question #1:
Review the organizational chart below and the different types of
company hierarchies:
Key Learning: Organizational Structures: Tall versus Flat
Hierarchies
A tall hierarchy is a traditional way to organize management.
There are many levels of employment, and a few employees at
each level report up to a manager at the next level. For example,
at Starbucks, baristas report to store managers, and store
managers report to regional managers, and regional managers
report to executives at headquarters. This works really well for
Starbucks! Baristas are carefully and consistently trained and
supervised so that you can count on the same cup of coffee at
any store. Employees who want to advance can work hard and
make their way up the chain to gain more management
responsibilities. Business is efficient and quality is consistent.
On the other hand, some businesses prefer a flat hierarchy.
When Paul and Ari founded Zingerman’s Delicatessen, they
wanted to make sure that every employee felt empowered to
make decisions to improve the customer experience. In their
service-oriented business, Paul and Ari’s employees get their
jobs done in creative and collaborative ways. A flat hierarchy
makes this possible.
Question 1: Organizational Structure
Based on your knowledge of hierarchies, would you say that
this company has a tall hierarchy or a flat hierarchy and why?
· Tall Structure
· Flat Structure
Background information needed to answer Question #2:
Review how this company applies the Human Resources Cycle
by reviewing the following memo:
“Hello, Head of HR here providing you a bit more insight into
our process. I’ve included a flow chart on the high-level process
(see below) but also wanted to provide a more detailed
explanation. Our HR cycle begins with our recruiting
department. We have campus recruiters who attend career fairs
and develop relationships from select universities around the
country. We also do a substantial amount of recruiting through
LinkedIn, targeting professionals further along in their career
with the backgrounds we look for. We then conduct phone
screens with qualified candidates, followed by rigorous in-
person interviews. We hire approximately 10% of the candidates
we interview in-person. Once an employee comes on-board, our
performance management system begins. Employees are
required to write out goals and objectives after their first 30
days on the job. They have regular ongoing conversations with
their direct managers, as well as with assigned mentors,
regarding their performance. On or near their anniversary date,
we conduct a formal performance review. In the review, we
evaluate how the employee performed relative to the goals they
mapped out for themselves, and relative to our expectations.
Based on the result of the performance review, we make
compensation adjustments and promotion decisions. Finally,
when an employee does exit their role, by transitioning to
another role within the company or by terminating their
employment, we conduct formal exit interviews. Hope this
helps. Look forward to your feedback on how we can improve.”
KEY Learning: these are all of the components of the Human
Resources Cycle:
Question #2: Human Resources
What Step of the Human Resources Cycle is missing from what
is described in the memo?
· Recruit
· Employ
· Reward
· Manage
· Develop
· Transition or Exit
Why is the missing step so important?
Background information needed to answer Question #3:
You have been asked to help improve the leadership style of the
team leader in order to meet the team’s performance goals. The
team leader has given you a description of what is most
comfortable in terms of leading others in this memo:
“Hi, I’m writing this email in response to your request for an
overview of my leadership style. First, I think it’s important to
tell you how I got to my role as the General Manager. I started
at the bottom and I’ve worked my way up through the ranks by
being the top performer in every role I’ve had. I’ve worked hard
to get to where I am today, nothing has been given to me, and I
believe everyone reporting to me should have a similar mindset
and work ethic. I’m looking for people who can keep up with
my level of performance; that’s what we need to achieve our
organizational goals. I demand a lot from people. Some might
say I’m difficult to please, but I believe in continually pushing
people to achieve results they previously didn’t think possible.
To do that, my employees must move fast and execute on the
directives I give them. If they can’t, then I need to find others
who can keep up. That may sound harsh, but I view maintaining
a strong performance-based culture as my responsibility as a
leader. Please feel free to contact me with any questions.”
KEY LearningHere are the different leadership styles
Question #3: leadership style
Identify this leader’s leadership style:
· Pacesetting
· Visionary
· Affiliative
· Coaching
· Coercive
· Democratic
Explain why you selected that style. Also, provide 2 benefits
and 2 drawbacks to that leadership style.
Next step: submit your work
1. Save this document to your desktop
· Navigation: select file at the top, save as – select desktop, and
select save
2. Log into your class and select Assignment #4 on the left,
scroll down and select “submit your work”, click browser my
computer, find your file on the desktop, click open, then click
submit.
3. If you have any issues email me or call me.
I will provide you assignment feedback and you can then make
any changes you would like and resubmit for grading.
Congrats on completing assignment #4!
Basic Financial Model - AlteryxFinancial Model
SpreadsheetMBA 640 / Instructor: Dennis MillerAssignment 2-
1, Module TwoXXXXXXXXX, Inc.($
millions)ActualActualActualQ3
YTDForecastCAGRForecastForecastForecast2014% of
Revenue2015% of Revenue2016% of Revenue2017% of
Revenue2017% of Revenue2014 - 20172018% of
Revenue2019% of Revenue2020% of RevenueRevenue$ 37.98$
53.82$ 85.79$ 93.0$ 124.048.36%$ 184.0$ 273.0$
405.0Cost of Revenue$ 8.5322.5%$ 10.5219.5%$
16.0318.7%$ 15.616.7%$ 20.716.7%$ 29.4416%$
40.9515%$ 56.7014%Gross Profit$ 29.45$ 43.30$ 69.76$
77.5$ 103.3$ 154.57$ 232.0$ 348.3Total Operating
Expenses$ 49.66130.8%$ 64.39119.6%$ 92.79108.2%$
93.8100.8%$ 125.1100.8%$ 176.2895.8%$ 248.4391%$
350.3486.5%Operating Profit$ (20.21)$ (21.09)$ (23.03)$
(16.32)$ (21.76)$ (21.7)$ (16.4)$ (2.0)Calculated Profit
Margin-53.2%-39.2%-26.8%-17.5%-17.5%-11.8%-6.0%-
0.5%Key Assumptions:Actual results were taken from
www.marketwatch.com for the years 2014, 2015 and 2016 -
https://www.marketwatch.com/investing/stock/ayx/financialsTh
e estimate for 2017 forecast is based on taking the 9 month
results and extrapolating to 12 months.2014 - 2016 actuals and
2017 forecast were used to compute a compound annual growth
rate ( CAGR) for sales.The forecasted expenses in 2018-2020
perpetuate the conservative expense reduction seen from 2014
through 2017. Improved expenses for 2018, 2019, and 2020 by
5%.The number of years into its IPO and the business is nearly
break-even in terms of operating profit.Per Going-Concern
criteria, preparers of this statement assume that this newly-
public company will continue in business through the periods
forecasted, without concern over liquidity.Per Entity
Assumption criteria, preparers of this statement confirm the
separation of transactions of owners and the reporting of
economic activity.Per the Stable Currency criteria, preparers of
this statement assume that the value of currency (US Dollar)
will remain stable and constant throughout the forecasted
periods outlined in this statement.Conclusions:The company
went public inSolid, steady, incremental growth was reported
prior to IPO, and the company has a solid consumer base,
pointing to forecasted continued growth.The company is
continuing to expand sales at an aggressive rate and shrinking
its cost base to better align with near term breakeven and
eventual profitability.Sources:Source of 2014, 2015, and 2016
Financialshttps://www.marketwatch.com/investing/stock/ayx/fin
ancialsQ3 2017 financials are from the Q3 10Q filing with the
SEC (see URL in citations)Numbers in blue are original inputs;
all other figures are a formulaCitations:Retrieved from
www.marketwatch.com/investing/stock/ayx/financialsFinancials
(n.d.). Retrieved from www.morningstar.comCompound Annual
Growth Rate (n.d.). Retrieved from
www.investopedia.comDeagon, B. (2017). IPO Draws Strong
Interest in Hot Data-Analytics Field. Retrieved from
www.investors.comFinance, Economics and Decision Making
(2017). McGraw-Hill Education.Form 10-Q (2017). Retrieved
from www.sec.gov/archives/edgar/dataKey Assumptions (n.d.).
Retrieved from www.principlesofaccounting.com
Sheet2
Sheet3
MBA 640 Final Project Guidelines and Rubric
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.
The project is divided into three milestones prior to the final
submission, which will be submitted at various points
throughout the course to scaffold learning and
ensure quality final submissions. These milestones will be
submitted in Modules Four, Six, and Seven. The final
submission will occur in Module Nine.
In this assignment, you will demonstrate your mastery of the
following course outcomes:
x Assess the global microeconomic environment for determining
the driving factors that affect business financial decisions
x Develop financial models that project the impact of different
business scenarios on financial performance and business
planning
x Assess decision alternatives by using time value of money
(TVM) and other appropriate financial metrics
x Evaluate the potential impact of internal and external
qualitative factors on business activities for supporting strategic
financial decisions
x Weigh internal and external funding alternatives for carrying
out investment decisions
x Construct persuasive, evidence-based arguments that
incorporate legal and ethical behavior and sound financial
analysis for soliciting external business
funding
Prompt
Imagine you are a manager working at a publicly traded
company. (You will select a company from the list below.) You
have been tasked with preparing an
investment proposal for a large bank loan to finance a major
expansion into another country. Your funding request will
include both narrative text and financial
models designed to clearly explain and justify the investment
proposal, how it will be financed, and its likely impact on the
company. As support, you will show
the proposal’s most likely financial implications and the
consolidated financial projection with and without the project.
You should also consider risks—including
global microeconomic factors outside the company that may
affect the investment’s success in the targeted country—and
describe alternative financial scenarios
should sales exceed or underperform your assumptions.
Your funding request should be well organized, clear, concise,
and free of distracting errors. Because business executives
seldom have perfect or complete
information, you should base your proposal on data from
authoritative sources when possible and make reasonable
assumptions where information is not
available. As in real life, however, you must clearly specify
your assumptions.
To begin, choose one of the following publicly traded
companies. Once you have chosen your company, you will
determine the investment opportunity for which
you are seeking funding as well as the country into which your
company will be expanding:
1. Alteryx
2. L.S. Starrett Company
3. Nordstrom, Inc.
Specifically, the following critical elements must be addressed:
I. Executive Summary: Briefly summarize the key points of
your proposal, giving the loan committee the most essential
information while convincing them
to read further. Remember this is the first, and sometimes the
only, section a selection committee will read in an initial
screening.
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.
https://www.alteryx.com/
http://www.starrett.com/home
http://shop.nordstrom.com/c/about-us?origin=footer
http://shop.nordstrom.com/c/about-us?origin=footer
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 in regards to intellectual property,
regional expertise, suppliers, or organizational structure?
C. Financial impact. This section should discuss the project’s
most likely financial implications and the consolidated financial
projection with and
without the project. Be sure to:
1. Project the incremental, annual, and cumulative cash benefits
and outflows associated with the proposed expansion for the
next seven
to 10 years, using a spreadsheet or other relevant presentation
vehicle to support your narrative. Be sure to justify your
assumptions
and methodology based on sound microeconomic and financial
principles. For example, what assumptions have you made about
demand, price, volume, capital purchase costs, incremental
hiring, and so on?
2. Develop a consolidated financial projection of revenue,
pretax income, and cash flow for the overall business, over that
same number of
years, both with and without the proposed investment. Use a
spreadsheet or other relevant presentation vehicle to support
your
narrative, being sure to describe any relevant assumptions.
IV. Risks: Use this section to discuss any risks that might affect
the success of the project and how you have planned for those
contingencies. In particular:
A. Internal. What are the company’s most significant internal
risks and opportunities related to the project? How might they
affect your financial
estimates and how will you address them? Support your
response with specific examples.
B. External. How will you address significant qualitative risks
outside the company that might affect project success? Give
specific examples. For
example, how might culture or politics in the target country
affect the proposed investment’s financial success? Natural
disasters? How have you
planned for these risks?
C. Microeconomic. Assess the microeconomic factors that might
affect decisions about the proposed investment. Support your
response with
specific examples. For example, how competitive is the market
you will be entering? How elastic is the price for your product
or service?
D. Alternate financial scenarios. Use this section to discuss the
sensitivity of your financial projections to different scenarios.
Be sure to address:
1. How would your projected financial performance change if
sales fall 20% short of or are 20% higher than your base
assumption? What
does your analysis of these two scenarios imply for the
proposed investment? Justify your response.
2. What do the net present value, internal rate of return, and
payback values from your base scenario and the sales variation
scenarios
above imply for the proposed investment? Be sure to explain
how the time value of money affects your calculations and
analysis.
V. Financing: In this section, compare the proposed loan to
alternative financing methods. Specifically:
A. Weigh the pros and cons of raising money using internal
financing mechanisms versus seeking funding through global
capital markets via loans,
commercial paper, bonds, or equity financing. Which might be
viable alternatives should the loan not be approved? Support
your answer with
appropriate research and evidence.
B. Assess the viability of a business combination as a
mechanism for expanding into the new market. Is this a
reasonable option for the company?
Why or why not? Support your answer with appropriate research
and evidence.
VI. Track Record: Use this section to persuade the lender that
you are credit-worthy. You must:
A. Convincingly argue that your organization is on solid
financial footing, and thus at a low risk for default, supporting
your argument recent with
appropriate financial statements, ratios, and other indicators of
financial performance and health.
B. Convincingly argue for your organization’s trustworthiness,
providing credible evidence of legal and ethical financial
behavior. For example, this
might include recent audit results; credit history; absence of
significant lawsuits, recalls, or regulatory judgments; or other
evidence designed to
show that the company holds itself to the highest legal and
ethical standards.
VII. Questions and Answers: End your proposal by constructing
a persuasive, evidence-based question-and-answer section that
addresses additional
financial questions you think the loan committee might ask,
including legal and ethical concerns and why the loan would be
attractive to the bank.
Milestones
Milestone One: Investment Project and Justification (Parts A
and B)
In Module Four, you will submit a draft of Section II
(Investment Project) and Section III (Justification), Parts A and
B only, of the final project. Submit 8-10 pages
of narrative, building on the narrative you began in the Module
Three executive memo short paper. Include references to past
financial results, growth rates, and
other financial ratios as exhibited in the spreadsheet you created
in Module Two, and end with appropriate reference citations.
This milestone is graded with the
Milestone One Rubric.
Milestone Two: Risks
In Module Six, you will submit a draft of Section IV (Risks) of
the final project. Analyze internal and external risks and discuss
how they might affect your financial
estimates and how you might plan for such risks. You will
assess the microeconomic factors that affect decisions about the
proposed investment, and you will
analyze alternative financial scenarios. This milestone is graded
with the Milestone Two Rubric.
Milestone Three: Justification (Part C), Financing, and Track
Record
In Module Seven you will submit a draft of Section III Part C
(Justification), Section V (Financing), and Section VI (Track
Record) of the final project. You will discuss
the project’s most likely financial implications and the
consolidated financial projection with and without the project;
compare the proposed loan to alternative
financing methods by weighing the pros and cons of raising
money internally versus seeking funding through global capital
markets; and assess the viability of a
business combination as a mechanism for expanding into the
new market. You will also use this section to persuade the
lender that your company is credit-
worthy by presenting appropriate financial information and by
providing evidence of your company’s legal and ethical
behavior. This milestone is graded with
the Milestone Three Rubric.
Final Submission: External Capital Funding Proposal
In Module Nine, you will write Section I (Executive Summary)
and Section VII (Questions and Answers) of your final project
and submit your final external capital
funding proposal. It should be a complete, polished artifact
containing all of the critical elements of the final project. It
should reflect the incorporation of
feedback gained throughout the course. This submission will be
graded using the Final Project Rubric (below).
Deliverables
Milestone Deliverable Module Due Grading
One Investment Project and Justification (Parts A and B) Four
Graded separately; Milestone One Rubric
Two Risks Six Graded separately; Milestone Two Rubric
Three Justification (Part C), Financing, and Track Record Seven
Graded separately; Milestone Three Rubric
Final Submission: External Capital Funding Proposal Nine
Graded separately; Final Project Rubric (below)
Final Project Rubric
Guidelines for Submission: Your Investment Funding Proposal
should be approximately 15-20 pages in length (excluding title
page, table of contents,
spreadsheets and other exhibits, and list of references). It
should be double spaced with 12-point Times New Roman font
and one-inch margins. Use APA format
for references and citations.
Instructor Feedback: This activity uses an integrated rubric in
Blackboard. Students can view instructor feedback in the Grade
Center. For more information,
review these instructions.
Critical Elements Exemplary (100%) Proficient (90%) Needs
Improvement (70%) Not Evident (0%) Value
Executive Summary Meets “Proficient” criteria and
response is especially convincing,
engaging, and/or well suited for
target audience
Briefly summarizes the key points
of proposal, giving audience the
most essential information while
convincing them to read further
Summarizes key points of
proposal, but summary is lengthy,
omits essential information,
contains inaccuracies, or does not
induce the audience to read
further
Does not summarize key points of
proposal
2
Investment Project:
Describe
Meets “Proficient” criteria and
provides target audience with an
especially clear and complete
understanding of project and
alternatives for evaluating success
Describes investment project,
providing sufficient detail to give a
firm sense of the parameters of
activity, market need, and relevant
financial metrics for determining
success
Describes investment project, but
description lacks detail, contains
inaccuracies, or omits key
information on parameters,
market need, and relevant
financial metrics for determining
success
Does not describe investment
project, providing sufficient detail
to give a firm sense of the
parameters of activity, market
need, and relevant financial
metrics for determining success
5.33
Investment Project:
Resources
Meets “Proficient” criteria and
response is particularly
comprehensive and well aligned
with needs of expansion project
Specifies resources required,
including amount of loan and
other physical and financial
resources, along with where
resources will come from
Specifies resources required,
including amount of loan
requested, other physical and
financial resources, and where
resources will come from, but
response contains inaccuracies or
omits key details
Does not specify resources
required
5.33
Investment Project:
Time Frame
Meets “Proficient” criteria and
suggested time frame and metrics
are especially appropriate given
diverse alternatives and needs of
specific project
Determines when project will
start, anticipated economic life,
and exit process, justifying choices
with appropriate financial metrics
Determines when project will
start, anticipated economic life,
and exit process, justifying choices
with financial metrics, but
response contains inaccuracies,
omits key details, or financial
metrics are not appropriate
Does not determine when project
will start, anticipated economic
life, and exit process, justifying
choices with financial metrics
5.33
http://snhu-
media.snhu.edu/files/production_documentation/formatting/rubr
ic_feedback_instructions_student.pdf
Justification: Why Now
Meets “Proficient” criteria and
demonstrates especially keen
insight into the range of external
factors that might impact global
business activities and how they
would do so
Evaluates why now is a good time
for this investment in the global
context, citing specific external
factors that might affect business
financial decisions in justifying
response
Evaluates why now is a good time
for this investment in the global
context, citing specific external
factors, but response contains
inaccuracies, omits key details, or
links to business financial
decisions are tenuous
Does not evaluate why now is a
good time for this investment in
the global context, citing specific
external factors that might affect
business financial decisions in
justifying response
5.33
Justification: Strategic
Fit: Priorities
Meets “Proficient” criteria and
response is particularly insightful
and well suited for convincing
target audience to grant funding
request
Persuasively argues how the
investment aligns with the
company’s organizational and
financial priorities, supported by
evidence from company reports
and financial statement analysis
Argues how the investment aligns
with the company’s organizational
and financial priorities, supported
by evidence, but argument is
cursory, illogical, contains
inaccuracies, or is poorly
supported by evidence and sound
financial analysis
Does not argue how the
investment aligns with the
company’s organizational and
financial priorities, supported by
evidence from company reports
and financial statement analysis
4
Justification: Strategic
Fit: Microeconomic
Meets “Proficient” criteria and
demonstrates especially strong
insight into which microeconomic
factors are most relevant in
determining strategic fit
Assesses how the project fits
within the global microeconomic
environment, supported by
evidence
Assesses how the project fits
within the global microeconomic
environment, supported by
evidence, but response is cursory,
poorly supported, contains
inaccuracies, or links between
microeconomic factors and
project are tenuous
Does not assess how the project
fits within the global
microeconomic environment
5.34
Justification: Strategic
Fit: Comparative
Advantage
Meets “Proficient” criteria and
response is especially nuanced
and well-aligned with strategic
needs of project
Evaluates how project builds on
organization’s core competencies
and comparative advantage in
explaining why the project makes
sense strategically
Evaluates how project builds on
organization’s core competencies
and comparative advantage in
explaining why the project makes
sense, but response is cursory,
contains inaccuracies or is only
tangentially related to strategic fit
Does not evaluate how project
builds on organization’s core
competencies and comparative
advantage
5.33
Justification: Financial
Impact: Expansion
Meets “Proficient” criteria and
response demonstrates a nuanced
understanding of the
microeconomic and financial
principles that underlie business
projections
Projects expansion’s incremental,
annual, and cumulative cash
benefits and outflows over
specified time period, using
relevant presentation vehicle to
support narrative and justifying
assumptions and methodology
based on sound microeconomic
and financial principles
Projects cash benefits and
outflows over specified time
period, using relevant
presentation vehicle and justifying
assumptions and methodology,
but response contains
inaccuracies, omits key details, or
is poorly grounded in
microeconomic and financial
principles
Does not project expansion’s
incremental, annual, and
cumulative cash benefits and
outflows over specified time
period
5.33
Justification: Financial
Impact: Consolidated
Meets “Proficient” criteria and
projections demonstrate
especially keen insight into the
short and longer-term financial
impact of the expansion on the
company’s overall performance
Develops consolidated financial
projection for overall business
with and without the proposed
investment over specified time
period, using relevant
presentation vehicle to support
narrative and describing relevant
assumptions
Develops consolidated financial
projection for overall business
with and without the proposed
investment over specified time
period, using relevant
presentation vehicle and
describing assumptions, but
response contains inaccuracies or
omits key details
Does not develop consolidated
financial projection for overall
business with and without the
proposed investment over
specified time period
5.34
Risks: Internal
Meets “Proficient” criteria and
demonstrates especially keen
insight into the links between
internal risks and opportunities,
financial projections, and planning
for business expansion
Projects how company’s most
significant internal risks and
opportunities might affect
financial estimates and how they
will be addressed, supported by
specific examples
Projects how company’s most
significant internal risks and
opportunities might affect
financial estimates and how they
will be addressed, supported by
specific examples, but response
contains inaccuracies, omits key
details, or links between
projections and planning are
tenuous
Does not project how company’s
most significant internal risks and
opportunities might affect
financial estimates and how they
will be addressed
5.33
Risks: External
Meets “Proficient” criteria and
demonstrates particularly keen
insight into how external risks
affect project success and
financial decisions
Evaluates how significant external,
non-financial risks that might
affect project success will be
addressed, giving specific
examples
Evaluates how significant external,
non-financial risks that might
affect project success will be
addressed, giving specific
examples, but response contains
inaccuracies, omits key details, or
examples are not relevant
Does not evaluate how significant
external, non-financial risks that
might affect project success will
be addressed
5.34
Risks: Microeconomic
Meets “Proficient” criteria and
assessment is especially is
especially nuanced and well
aligned with strategic needs of
project
Assesses the microeconomic
factors that might affect decisions
about the proposed investment,
supported by specific examples
Assesses the microeconomic
factors that might affect decisions
about the proposed investment,
supported by specific examples,
but response contains
inaccuracies, omits key details, or
examples are not relevant
Does not assess the
microeconomic factors that might
affect decisions about the
proposed investment
5.33
Risks: Alternate
Financial: Sales Fall
Meets “Proficient” criteria and
discussion of implications for
planning and financial
performance is particularly
nuanced and well supported
Projects how financial
performance would change if
sales fall 20% short of or are 20%
higher than base assumption,
including what analysis of two
scenarios implies for the proposed
investment, justifying response
Projects how financial
performance would change if
sales fall 20% short of or are 20%
higher than base assumption,
including what analysis implies for
the proposed investment, but
response contains inaccuracies,
omits key details, or is poorly
justified
Does not project how financial
performance would change if
sales fall 20% short of or are 20%
higher than base assumption
5.33
Risks: Alternate
Financial: Time Value of
Money
Meets “Proficient” criteria and
demonstrates keen insight into
how diverse scenarios and
financial metrics affect project
projections and subsequent
business decisions
Assesses what net present value,
internal rate of return, and
payback values from base and
sales variation scenarios imply for
the proposed investment,
including how time value of
money affects calculations and
analysis
Assesses what net present value,
internal rate of return, and
payback values from base and
sales variation scenarios imply for
the proposed investment,
including how time value of
money affects calculations and
analysis, but response contains
inaccuracies or omits key details
Does not assess what net present
value, internal rate of return, and
payback values from base and
sales variation scenarios imply for
the proposed investment
5.34
Financing: Global
Capital Markets
Meets “Proficient” criteria and
assessment is particularly
nuanced and relevant to the
specific needs of the expansion
Weighs pros and cons of raising
money using internal financing
versus global capital market
mechanisms, identifying viable
alternatives based on appropriate
research and evidence
Weighs pros and cons of internal
financing versus global capital
market mechanisms, identifying
viable alternatives based on
research and evidence, but
response contains inaccuracies,
omits key details, or research and
evidence are not relevant or
cursory
Does not weigh pros and cons of
raising money using internal
financing versus global capital
market mechanisms
5.34
Financing: Business
Combination
Meets “Proficient” criteria and
assessment is particularly
nuanced and relevant to the
specific needs of the expansion
Assesses the viability of a business
combination as a mechanism for
expanding into the new market,
supported by appropriate
research and evidence
Assesses the viability of a business
combination as a mechanism for
expanding, supported by research
and evidence, but response is
cursory, contains inaccuracies, or
research and evidence are not
appropriate
Does not assess viability of a
business combination as a
mechanism for expanding into the
new market, supported by
research and evidence
5.33
Track Record: Financial
Performance
Meets “Proficient” criteria and
response is particularly insightful
and well suited for convincing
target audience to grant funding
request
Convincingly argues that
organization is on solid financial
footing, supported by appropriate
financial statements, ratios, and
other indicators of financial
performance and health
Argues that organization is on
solid financial footing, supported
by financial statements, ratios,
and other indicators of financial
performance and health, but
argument is cursory, contains
inaccuracies, or supporting
evidence is not credible,
appropriate, or convincing for
lenders
Does not argue that organization
is on solid financial footing
4
Track Record: Legal and
Ethical
Meets “Proficient” criteria and
response is particularly insightful
and well suited for convincing
target audience to grant funding
request
Convincingly argues for
organization’s trustworthiness,
providing credible evidence of
legal and ethical financial behavior
Argues for organization’s
trustworthiness, providing
evidence of legal and ethical
financial behavior, but argument is
cursory, contains inaccuracies, or
evidence is not credible or
convincing to lenders
Does not argue for organization’s
trustworthiness
4
Questions and Answers
Meets “Proficient” criteria and
response is particularly insightful
and well-suited for convincing
target audience to grant funding
request
Constructs persuasive, evidence-
based question and answer
section that addresses additional
financial questions loan
committee might ask, including
legal and ethical concerns and
why the loan would be attractive
to the bank
Constructs question and answer
section that addresses potential
loan committee questions,
including legal and ethical
concerns and why loan would be
attractive to bank, but response
contains inaccuracies, is not
persuasive, or is not well-
grounded in evidence
Does not construct question and
answer section that addresses
additional financial questions loan
committee might ask
4
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and organization
and is presented in a professional
and easy-to-read format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact readability
and articulation of main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
2
Total 100%

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Assignment #4 – Business 100 Name Background information ne.docx

  • 1. Assignment #4 – Business 100 Name: Background information needed to answer Question #1: Review the organizational chart below and the different types of company hierarchies: Key Learning: Organizational Structures: Tall versus Flat Hierarchies A tall hierarchy is a traditional way to organize management. There are many levels of employment, and a few employees at each level report up to a manager at the next level. For example, at Starbucks, baristas report to store managers, and store managers report to regional managers, and regional managers report to executives at headquarters. This works really well for Starbucks! Baristas are carefully and consistently trained and supervised so that you can count on the same cup of coffee at any store. Employees who want to advance can work hard and make their way up the chain to gain more management responsibilities. Business is efficient and quality is consistent. On the other hand, some businesses prefer a flat hierarchy. When Paul and Ari founded Zingerman’s Delicatessen, they wanted to make sure that every employee felt empowered to make decisions to improve the customer experience. In their service-oriented business, Paul and Ari’s employees get their jobs done in creative and collaborative ways. A flat hierarchy makes this possible.
  • 2. Question 1: Organizational Structure Based on your knowledge of hierarchies, would you say that this company has a tall hierarchy or a flat hierarchy and why? · Tall Structure · Flat Structure Background information needed to answer Question #2: Review how this company applies the Human Resources Cycle by reviewing the following memo: “Hello, Head of HR here providing you a bit more insight into our process. I’ve included a flow chart on the high-level process (see below) but also wanted to provide a more detailed explanation. Our HR cycle begins with our recruiting department. We have campus recruiters who attend career fairs and develop relationships from select universities around the country. We also do a substantial amount of recruiting through LinkedIn, targeting professionals further along in their career with the backgrounds we look for. We then conduct phone screens with qualified candidates, followed by rigorous in- person interviews. We hire approximately 10% of the candidates we interview in-person. Once an employee comes on-board, our performance management system begins. Employees are required to write out goals and objectives after their first 30 days on the job. They have regular ongoing conversations with their direct managers, as well as with assigned mentors, regarding their performance. On or near their anniversary date, we conduct a formal performance review. In the review, we evaluate how the employee performed relative to the goals they mapped out for themselves, and relative to our expectations. Based on the result of the performance review, we make
  • 3. compensation adjustments and promotion decisions. Finally, when an employee does exit their role, by transitioning to another role within the company or by terminating their employment, we conduct formal exit interviews. Hope this helps. Look forward to your feedback on how we can improve.” KEY Learning: these are all of the components of the Human Resources Cycle: Question #2: Human Resources What Step of the Human Resources Cycle is missing from what is described in the memo? · Recruit · Employ · Reward · Manage · Develop · Transition or Exit Why is the missing step so important? Background information needed to answer Question #3: You have been asked to help improve the leadership style of the team leader in order to meet the team’s performance goals. The team leader has given you a description of what is most comfortable in terms of leading others in this memo:
  • 4. “Hi, I’m writing this email in response to your request for an overview of my leadership style. First, I think it’s important to tell you how I got to my role as the General Manager. I started at the bottom and I’ve worked my way up through the ranks by being the top performer in every role I’ve had. I’ve worked hard to get to where I am today, nothing has been given to me, and I believe everyone reporting to me should have a similar mindset and work ethic. I’m looking for people who can keep up with my level of performance; that’s what we need to achieve our organizational goals. I demand a lot from people. Some might say I’m difficult to please, but I believe in continually pushing people to achieve results they previously didn’t think possible. To do that, my employees must move fast and execute on the directives I give them. If they can’t, then I need to find others who can keep up. That may sound harsh, but I view maintaining a strong performance-based culture as my responsibility as a leader. Please feel free to contact me with any questions.” KEY LearningHere are the different leadership styles Question #3: leadership style Identify this leader’s leadership style: · Pacesetting · Visionary · Affiliative · Coaching · Coercive · Democratic
  • 5. Explain why you selected that style. Also, provide 2 benefits and 2 drawbacks to that leadership style. Next step: submit your work 1. Save this document to your desktop · Navigation: select file at the top, save as – select desktop, and select save 2. Log into your class and select Assignment #4 on the left, scroll down and select “submit your work”, click browser my computer, find your file on the desktop, click open, then click submit. 3. If you have any issues email me or call me. I will provide you assignment feedback and you can then make any changes you would like and resubmit for grading. Congrats on completing assignment #4! Basic Financial Model - AlteryxFinancial Model SpreadsheetMBA 640 / Instructor: Dennis MillerAssignment 2- 1, Module TwoXXXXXXXXX, Inc.($ millions)ActualActualActualQ3 YTDForecastCAGRForecastForecastForecast2014% of Revenue2015% of Revenue2016% of Revenue2017% of Revenue2017% of Revenue2014 - 20172018% of Revenue2019% of Revenue2020% of RevenueRevenue$ 37.98$ 53.82$ 85.79$ 93.0$ 124.048.36%$ 184.0$ 273.0$ 405.0Cost of Revenue$ 8.5322.5%$ 10.5219.5%$ 16.0318.7%$ 15.616.7%$ 20.716.7%$ 29.4416%$ 40.9515%$ 56.7014%Gross Profit$ 29.45$ 43.30$ 69.76$ 77.5$ 103.3$ 154.57$ 232.0$ 348.3Total Operating Expenses$ 49.66130.8%$ 64.39119.6%$ 92.79108.2%$
  • 6. 93.8100.8%$ 125.1100.8%$ 176.2895.8%$ 248.4391%$ 350.3486.5%Operating Profit$ (20.21)$ (21.09)$ (23.03)$ (16.32)$ (21.76)$ (21.7)$ (16.4)$ (2.0)Calculated Profit Margin-53.2%-39.2%-26.8%-17.5%-17.5%-11.8%-6.0%- 0.5%Key Assumptions:Actual results were taken from www.marketwatch.com for the years 2014, 2015 and 2016 - https://www.marketwatch.com/investing/stock/ayx/financialsTh e estimate for 2017 forecast is based on taking the 9 month results and extrapolating to 12 months.2014 - 2016 actuals and 2017 forecast were used to compute a compound annual growth rate ( CAGR) for sales.The forecasted expenses in 2018-2020 perpetuate the conservative expense reduction seen from 2014 through 2017. Improved expenses for 2018, 2019, and 2020 by 5%.The number of years into its IPO and the business is nearly break-even in terms of operating profit.Per Going-Concern criteria, preparers of this statement assume that this newly- public company will continue in business through the periods forecasted, without concern over liquidity.Per Entity Assumption criteria, preparers of this statement confirm the separation of transactions of owners and the reporting of economic activity.Per the Stable Currency criteria, preparers of this statement assume that the value of currency (US Dollar) will remain stable and constant throughout the forecasted periods outlined in this statement.Conclusions:The company went public inSolid, steady, incremental growth was reported prior to IPO, and the company has a solid consumer base, pointing to forecasted continued growth.The company is continuing to expand sales at an aggressive rate and shrinking its cost base to better align with near term breakeven and eventual profitability.Sources:Source of 2014, 2015, and 2016 Financialshttps://www.marketwatch.com/investing/stock/ayx/fin ancialsQ3 2017 financials are from the Q3 10Q filing with the SEC (see URL in citations)Numbers in blue are original inputs; all other figures are a formulaCitations:Retrieved from www.marketwatch.com/investing/stock/ayx/financialsFinancials (n.d.). Retrieved from www.morningstar.comCompound Annual
  • 7. Growth Rate (n.d.). Retrieved from www.investopedia.comDeagon, B. (2017). IPO Draws Strong Interest in Hot Data-Analytics Field. Retrieved from www.investors.comFinance, Economics and Decision Making (2017). McGraw-Hill Education.Form 10-Q (2017). Retrieved from www.sec.gov/archives/edgar/dataKey Assumptions (n.d.). Retrieved from www.principlesofaccounting.com Sheet2 Sheet3 MBA 640 Final Project Guidelines and Rubric 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.
  • 8. 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. The project is divided into three milestones prior to the final submission, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Four, Six, and Seven. The final submission will occur in Module Nine. In this assignment, you will demonstrate your mastery of the following course outcomes: x Assess the global microeconomic environment for determining the driving factors that affect business financial decisions x Develop financial models that project the impact of different business scenarios on financial performance and business planning x Assess decision alternatives by using time value of money (TVM) and other appropriate financial metrics x Evaluate the potential impact of internal and external qualitative factors on business activities for supporting strategic financial decisions
  • 9. x Weigh internal and external funding alternatives for carrying out investment decisions x Construct persuasive, evidence-based arguments that incorporate legal and ethical behavior and sound financial analysis for soliciting external business funding Prompt Imagine you are a manager working at a publicly traded company. (You will select a company from the list below.) You have been tasked with preparing an investment proposal for a large bank loan to finance a major expansion into another country. Your funding request will include both narrative text and financial models designed to clearly explain and justify the investment proposal, how it will be financed, and its likely impact on the company. As support, you will show the proposal’s most likely financial implications and the consolidated financial projection with and without the project. You should also consider risks—including global microeconomic factors outside the company that may affect the investment’s success in the targeted country—and describe alternative financial scenarios should sales exceed or underperform your assumptions. Your funding request should be well organized, clear, concise, and free of distracting errors. Because business executives seldom have perfect or complete information, you should base your proposal on data from authoritative sources when possible and make reasonable
  • 10. assumptions where information is not available. As in real life, however, you must clearly specify your assumptions. To begin, choose one of the following publicly traded companies. Once you have chosen your company, you will determine the investment opportunity for which you are seeking funding as well as the country into which your company will be expanding: 1. Alteryx 2. L.S. Starrett Company 3. Nordstrom, Inc. Specifically, the following critical elements must be addressed: I. Executive Summary: Briefly summarize the key points of your proposal, giving the loan committee the most essential information while convincing them to read further. Remember this is the first, and sometimes the only, section a selection committee will read in an initial screening. 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,
  • 11. 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
  • 12. company reports and financial statement analysis designed to persuade the lender that the investment is a good strategic fit for your company. https://www.alteryx.com/ http://www.starrett.com/home http://shop.nordstrom.com/c/about-us?origin=footer http://shop.nordstrom.com/c/about-us?origin=footer 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 in regards to intellectual property, regional expertise, suppliers, or organizational structure? C. Financial impact. This section should discuss the project’s most likely financial implications and the consolidated financial projection with and without the project. Be sure to: 1. Project the incremental, annual, and cumulative cash benefits and outflows associated with the proposed expansion for the next seven to 10 years, using a spreadsheet or other relevant presentation vehicle to support your narrative. Be sure to justify your assumptions and methodology based on sound microeconomic and financial
  • 13. principles. For example, what assumptions have you made about demand, price, volume, capital purchase costs, incremental hiring, and so on? 2. Develop a consolidated financial projection of revenue, pretax income, and cash flow for the overall business, over that same number of years, both with and without the proposed investment. Use a spreadsheet or other relevant presentation vehicle to support your narrative, being sure to describe any relevant assumptions. IV. Risks: Use this section to discuss any risks that might affect the success of the project and how you have planned for those contingencies. In particular: A. Internal. What are the company’s most significant internal risks and opportunities related to the project? How might they affect your financial estimates and how will you address them? Support your response with specific examples. B. External. How will you address significant qualitative risks outside the company that might affect project success? Give specific examples. For example, how might culture or politics in the target country affect the proposed investment’s financial success? Natural disasters? How have you planned for these risks? C. Microeconomic. Assess the microeconomic factors that might affect decisions about the proposed investment. Support your response with specific examples. For example, how competitive is the market you will be entering? How elastic is the price for your product
  • 14. or service? D. Alternate financial scenarios. Use this section to discuss the sensitivity of your financial projections to different scenarios. Be sure to address: 1. How would your projected financial performance change if sales fall 20% short of or are 20% higher than your base assumption? What does your analysis of these two scenarios imply for the proposed investment? Justify your response. 2. What do the net present value, internal rate of return, and payback values from your base scenario and the sales variation scenarios above imply for the proposed investment? Be sure to explain how the time value of money affects your calculations and analysis. V. Financing: In this section, compare the proposed loan to alternative financing methods. Specifically: A. Weigh the pros and cons of raising money using internal financing mechanisms versus seeking funding through global capital markets via loans, commercial paper, bonds, or equity financing. Which might be viable alternatives should the loan not be approved? Support your answer with appropriate research and evidence. B. Assess the viability of a business combination as a mechanism for expanding into the new market. Is this a reasonable option for the company? Why or why not? Support your answer with appropriate research and evidence.
  • 15. VI. Track Record: Use this section to persuade the lender that you are credit-worthy. You must: A. Convincingly argue that your organization is on solid financial footing, and thus at a low risk for default, supporting your argument recent with appropriate financial statements, ratios, and other indicators of financial performance and health. B. Convincingly argue for your organization’s trustworthiness, providing credible evidence of legal and ethical financial behavior. For example, this might include recent audit results; credit history; absence of significant lawsuits, recalls, or regulatory judgments; or other evidence designed to show that the company holds itself to the highest legal and ethical standards. VII. Questions and Answers: End your proposal by constructing a persuasive, evidence-based question-and-answer section that addresses additional financial questions you think the loan committee might ask, including legal and ethical concerns and why the loan would be attractive to the bank. Milestones Milestone One: Investment Project and Justification (Parts A
  • 16. and B) In Module Four, you will submit a draft of Section II (Investment Project) and Section III (Justification), Parts A and B only, of the final project. Submit 8-10 pages of narrative, building on the narrative you began in the Module Three executive memo short paper. Include references to past financial results, growth rates, and other financial ratios as exhibited in the spreadsheet you created in Module Two, and end with appropriate reference citations. This milestone is graded with the Milestone One Rubric. Milestone Two: Risks In Module Six, you will submit a draft of Section IV (Risks) of the final project. Analyze internal and external risks and discuss how they might affect your financial estimates and how you might plan for such risks. You will assess the microeconomic factors that affect decisions about the proposed investment, and you will analyze alternative financial scenarios. This milestone is graded with the Milestone Two Rubric. Milestone Three: Justification (Part C), Financing, and Track Record In Module Seven you will submit a draft of Section III Part C (Justification), Section V (Financing), and Section VI (Track Record) of the final project. You will discuss the project’s most likely financial implications and the consolidated financial projection with and without the project; compare the proposed loan to alternative financing methods by weighing the pros and cons of raising money internally versus seeking funding through global capital markets; and assess the viability of a business combination as a mechanism for expanding into the new market. You will also use this section to persuade the lender that your company is credit-
  • 17. worthy by presenting appropriate financial information and by providing evidence of your company’s legal and ethical behavior. This milestone is graded with the Milestone Three Rubric. Final Submission: External Capital Funding Proposal In Module Nine, you will write Section I (Executive Summary) and Section VII (Questions and Answers) of your final project and submit your final external capital funding proposal. It should be a complete, polished artifact containing all of the critical elements of the final project. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded using the Final Project Rubric (below). Deliverables Milestone Deliverable Module Due Grading One Investment Project and Justification (Parts A and B) Four Graded separately; Milestone One Rubric Two Risks Six Graded separately; Milestone Two Rubric Three Justification (Part C), Financing, and Track Record Seven Graded separately; Milestone Three Rubric Final Submission: External Capital Funding Proposal Nine Graded separately; Final Project Rubric (below)
  • 18. Final Project Rubric Guidelines for Submission: Your Investment Funding Proposal should be approximately 15-20 pages in length (excluding title page, table of contents, spreadsheets and other exhibits, and list of references). It should be double spaced with 12-point Times New Roman font and one-inch margins. Use APA format for references and citations. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Value Executive Summary Meets “Proficient” criteria and response is especially convincing, engaging, and/or well suited for target audience Briefly summarizes the key points of proposal, giving audience the most essential information while convincing them to read further Summarizes key points of proposal, but summary is lengthy, omits essential information, contains inaccuracies, or does not
  • 19. induce the audience to read further Does not summarize key points of proposal 2 Investment Project: Describe Meets “Proficient” criteria and provides target audience with an especially clear and complete understanding of project and alternatives for evaluating success Describes investment project, providing sufficient detail to give a firm sense of the parameters of activity, market need, and relevant financial metrics for determining success Describes investment project, but description lacks detail, contains inaccuracies, or omits key information on parameters, market need, and relevant financial metrics for determining success Does not describe investment project, providing sufficient detail to give a firm sense of the
  • 20. parameters of activity, market need, and relevant financial metrics for determining success 5.33 Investment Project: Resources Meets “Proficient” criteria and response is particularly comprehensive and well aligned with needs of expansion project Specifies resources required, including amount of loan and other physical and financial resources, along with where resources will come from Specifies resources required, including amount of loan requested, other physical and financial resources, and where resources will come from, but response contains inaccuracies or omits key details Does not specify resources required 5.33 Investment Project: Time Frame
  • 21. Meets “Proficient” criteria and suggested time frame and metrics are especially appropriate given diverse alternatives and needs of specific project Determines when project will start, anticipated economic life, and exit process, justifying choices with appropriate financial metrics Determines when project will start, anticipated economic life, and exit process, justifying choices with financial metrics, but response contains inaccuracies, omits key details, or financial metrics are not appropriate Does not determine when project will start, anticipated economic life, and exit process, justifying choices with financial metrics 5.33 http://snhu- media.snhu.edu/files/production_documentation/formatting/rubr ic_feedback_instructions_student.pdf Justification: Why Now
  • 22. Meets “Proficient” criteria and demonstrates especially keen insight into the range of external factors that might impact global business activities and how they would do so Evaluates why now is a good time for this investment in the global context, citing specific external factors that might affect business financial decisions in justifying response Evaluates why now is a good time for this investment in the global context, citing specific external factors, but response contains inaccuracies, omits key details, or links to business financial decisions are tenuous Does not evaluate why now is a good time for this investment in the global context, citing specific external factors that might affect business financial decisions in justifying response 5.33 Justification: Strategic Fit: Priorities
  • 23. Meets “Proficient” criteria and response is particularly insightful and well suited for convincing target audience to grant funding request Persuasively argues how the investment aligns with the company’s organizational and financial priorities, supported by evidence from company reports and financial statement analysis Argues how the investment aligns with the company’s organizational and financial priorities, supported by evidence, but argument is cursory, illogical, contains inaccuracies, or is poorly supported by evidence and sound financial analysis Does not argue how the investment aligns with the company’s organizational and financial priorities, supported by evidence from company reports and financial statement analysis 4 Justification: Strategic Fit: Microeconomic Meets “Proficient” criteria and
  • 24. demonstrates especially strong insight into which microeconomic factors are most relevant in determining strategic fit Assesses how the project fits within the global microeconomic environment, supported by evidence Assesses how the project fits within the global microeconomic environment, supported by evidence, but response is cursory, poorly supported, contains inaccuracies, or links between microeconomic factors and project are tenuous Does not assess how the project fits within the global microeconomic environment 5.34 Justification: Strategic Fit: Comparative Advantage Meets “Proficient” criteria and response is especially nuanced and well-aligned with strategic needs of project
  • 25. Evaluates how project builds on organization’s core competencies and comparative advantage in explaining why the project makes sense strategically Evaluates how project builds on organization’s core competencies and comparative advantage in explaining why the project makes sense, but response is cursory, contains inaccuracies or is only tangentially related to strategic fit Does not evaluate how project builds on organization’s core competencies and comparative advantage 5.33 Justification: Financial Impact: Expansion Meets “Proficient” criteria and response demonstrates a nuanced understanding of the microeconomic and financial principles that underlie business projections Projects expansion’s incremental, annual, and cumulative cash benefits and outflows over
  • 26. specified time period, using relevant presentation vehicle to support narrative and justifying assumptions and methodology based on sound microeconomic and financial principles Projects cash benefits and outflows over specified time period, using relevant presentation vehicle and justifying assumptions and methodology, but response contains inaccuracies, omits key details, or is poorly grounded in microeconomic and financial principles Does not project expansion’s incremental, annual, and cumulative cash benefits and outflows over specified time period 5.33 Justification: Financial Impact: Consolidated Meets “Proficient” criteria and projections demonstrate especially keen insight into the
  • 27. short and longer-term financial impact of the expansion on the company’s overall performance Develops consolidated financial projection for overall business with and without the proposed investment over specified time period, using relevant presentation vehicle to support narrative and describing relevant assumptions Develops consolidated financial projection for overall business with and without the proposed investment over specified time period, using relevant presentation vehicle and describing assumptions, but response contains inaccuracies or omits key details Does not develop consolidated financial projection for overall business with and without the proposed investment over specified time period 5.34 Risks: Internal Meets “Proficient” criteria and demonstrates especially keen
  • 28. insight into the links between internal risks and opportunities, financial projections, and planning for business expansion Projects how company’s most significant internal risks and opportunities might affect financial estimates and how they will be addressed, supported by specific examples Projects how company’s most significant internal risks and opportunities might affect financial estimates and how they will be addressed, supported by specific examples, but response contains inaccuracies, omits key details, or links between projections and planning are tenuous Does not project how company’s most significant internal risks and opportunities might affect financial estimates and how they will be addressed 5.33 Risks: External Meets “Proficient” criteria and demonstrates particularly keen
  • 29. insight into how external risks affect project success and financial decisions Evaluates how significant external, non-financial risks that might affect project success will be addressed, giving specific examples Evaluates how significant external, non-financial risks that might affect project success will be addressed, giving specific examples, but response contains inaccuracies, omits key details, or examples are not relevant Does not evaluate how significant external, non-financial risks that might affect project success will be addressed 5.34 Risks: Microeconomic Meets “Proficient” criteria and assessment is especially is especially nuanced and well aligned with strategic needs of project Assesses the microeconomic factors that might affect decisions
  • 30. about the proposed investment, supported by specific examples Assesses the microeconomic factors that might affect decisions about the proposed investment, supported by specific examples, but response contains inaccuracies, omits key details, or examples are not relevant Does not assess the microeconomic factors that might affect decisions about the proposed investment 5.33 Risks: Alternate Financial: Sales Fall Meets “Proficient” criteria and discussion of implications for planning and financial performance is particularly nuanced and well supported Projects how financial performance would change if sales fall 20% short of or are 20% higher than base assumption, including what analysis of two
  • 31. scenarios implies for the proposed investment, justifying response Projects how financial performance would change if sales fall 20% short of or are 20% higher than base assumption, including what analysis implies for the proposed investment, but response contains inaccuracies, omits key details, or is poorly justified Does not project how financial performance would change if sales fall 20% short of or are 20% higher than base assumption 5.33 Risks: Alternate Financial: Time Value of Money Meets “Proficient” criteria and demonstrates keen insight into how diverse scenarios and financial metrics affect project projections and subsequent business decisions Assesses what net present value, internal rate of return, and payback values from base and
  • 32. sales variation scenarios imply for the proposed investment, including how time value of money affects calculations and analysis Assesses what net present value, internal rate of return, and payback values from base and sales variation scenarios imply for the proposed investment, including how time value of money affects calculations and analysis, but response contains inaccuracies or omits key details Does not assess what net present value, internal rate of return, and payback values from base and sales variation scenarios imply for the proposed investment 5.34 Financing: Global Capital Markets Meets “Proficient” criteria and assessment is particularly nuanced and relevant to the specific needs of the expansion Weighs pros and cons of raising money using internal financing
  • 33. versus global capital market mechanisms, identifying viable alternatives based on appropriate research and evidence Weighs pros and cons of internal financing versus global capital market mechanisms, identifying viable alternatives based on research and evidence, but response contains inaccuracies, omits key details, or research and evidence are not relevant or cursory Does not weigh pros and cons of raising money using internal financing versus global capital market mechanisms 5.34 Financing: Business Combination Meets “Proficient” criteria and assessment is particularly nuanced and relevant to the specific needs of the expansion Assesses the viability of a business combination as a mechanism for expanding into the new market, supported by appropriate research and evidence
  • 34. Assesses the viability of a business combination as a mechanism for expanding, supported by research and evidence, but response is cursory, contains inaccuracies, or research and evidence are not appropriate Does not assess viability of a business combination as a mechanism for expanding into the new market, supported by research and evidence 5.33 Track Record: Financial Performance Meets “Proficient” criteria and response is particularly insightful and well suited for convincing target audience to grant funding request Convincingly argues that organization is on solid financial footing, supported by appropriate financial statements, ratios, and other indicators of financial performance and health
  • 35. Argues that organization is on solid financial footing, supported by financial statements, ratios, and other indicators of financial performance and health, but argument is cursory, contains inaccuracies, or supporting evidence is not credible, appropriate, or convincing for lenders Does not argue that organization is on solid financial footing 4 Track Record: Legal and Ethical Meets “Proficient” criteria and response is particularly insightful and well suited for convincing target audience to grant funding request Convincingly argues for organization’s trustworthiness, providing credible evidence of legal and ethical financial behavior Argues for organization’s trustworthiness, providing evidence of legal and ethical financial behavior, but argument is
  • 36. cursory, contains inaccuracies, or evidence is not credible or convincing to lenders Does not argue for organization’s trustworthiness 4 Questions and Answers Meets “Proficient” criteria and response is particularly insightful and well-suited for convincing target audience to grant funding request Constructs persuasive, evidence- based question and answer section that addresses additional financial questions loan committee might ask, including legal and ethical concerns and why the loan would be attractive to the bank Constructs question and answer section that addresses potential loan committee questions, including legal and ethical concerns and why loan would be attractive to bank, but response contains inaccuracies, is not persuasive, or is not well- grounded in evidence
  • 37. Does not construct question and answer section that addresses additional financial questions loan committee might ask 4 Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 2