Describe the existing business, including the type of business, industry dynamics, competitive rivalry, ( one to two paragraphs). This is original, data supported analysis.
Create the business case.
- EXPLAIN. PROPOSE why funding is needed for the company. For example: expanding existing operations into a new global market, development of a new product, etc. ( one paragraph). You are making this original choice – what is the “project”?
- Determine the potential sources of funding for the project – discuss three types of funding . Consider self-funding, borrowing, equity, venture capital, etc. ( three paragraphs – one paragraph per funding type, be specific, have specific, realistic, justified, supported analysis) . Also Include in each paragraph:
- Evaluate the requirements of each of the three funding sources you identified.
- Analyze the associated risks of each of the three funding sources.
- Estimate the cost of capital for of the three funding sources under review.. Research current estimated APRs for each of the three sources of funding. Create a table to display this information. ONE TABLE WITHIN THE WORD DOCUMENT
- Select your chosen funding source and justify your decision as why the funding source is the best fit for your project and organization. Have at least three reasons Justifying selection. ( one to two paragraphs)
- Analytical Summary – three paragraphs. Create a summary to highlight key points of benefit and concern of the project and the data in your profit and loss statement. You are making a final case ( financial, strategic, vision, etc) for proceeding with the project, benefit to the overall organization, potential risks, and how the project advances the existing strategic vision of the organization.
In a excel sheet.
Create a profit-and-loss statement for a 3-year period. Project revenue, stating realistic assumptions, such as growth per year, in your projections. Estimate direct costs, including capital, marketing, labor, and supply costs. This analysis is to be original and unique to the project you proposed. The projections must make sense for the proposal and the operating environment.
Use the tools of analysis learned during your MBA. As you read through the instructions – consider yourself a business consultant that is doing the analysis of a potential strategic project for the firm/organization .You kick off with a typical analysis of the organization internal environment ( SWOTT) and external environment ( Porter’s Five e Forces). You then need to complete your analysis of “fit” and provide details to senior leadership to review.
There are TWO deliverables for this assignment – a Word document and an Excel spreadsheet. Please do not combine the two deliverables. Financials should be int an Excel spreadsheet.