Project Requirements

I.Case analysis

A.You will work together with your team to analyze a case and prepare and submit your team analysis.

II.Requirements

A.Number of reports

1.Every team will submit one report.

a)Reports are due on Wednesday, April, 25^th via Canvas by 11:59pm.

b)If the report is late, that report will receive a zero grade.

B.Parts of your report

1.Cover page. Each course report will have a cover page.

a)The title of each report.

b)Team number

c)Printed team member names

2.Body of the report

a)Executive Summary

(1)One page, single spaced, 12 point, Times New Roman or Ariel font. Standard Word margins of 1 inch.

(2)Parts

(a)Problem – Two to three lines.

(b)Summarize key findings. Maximum of 6.

(c)Recommendations in narrative, no bullet format. State your recommended course of action and defend this statement This section should be about half of the page.

b)Functional area case analyses

Time line

4/3 Start project, handout project requirements and team assignments.

4/25Turn in report at the same via Canvas.Only one copy per team needs to be turned in by 11:59

5/4Receive graded report feedback.

Honor Code

It is not a violation of the honor code to talk over this case with any of your fellow classmates. Talking does not mean you copying or paraphrasing other teams’ reports or any sections of them. Discussing means that each person in the group discussion must make a relevant contribution to the group discussion.

CASE FORMAT AND GUIDELINES

• Required
  • PROBLEM IDENTIFICATION:
    • State the problems facing the firm at the time the case was written.Weak problem definitions will lead to poor alternatives and inadequate recommendations.Address the key issues:
      • A laundry list of problems will not suffice.
      • Make sure that you have actually defined the problem(s) and not merely identified symptoms.
      • Discriminate between more and less urgent issues.
  • INDUSTRY, COMPETITIVE AND ENVIRONMENTAL ASSESSMENT:
    • Every problem or challenge must be considered in the context of its environment.Identify the driving forces for the company and the industry.While the firm may not be in a position to change environmental factors, it should be sufficiently resourceful in working around these issues.Environmental factors are both:
      • External, the economy, international and domestic competition, government rules and regulations, etc.
      • Internal, union contracts, company traditions, technology requirements, etc.
    • Do not simply reiterate the facts presented in the case.
    • You must present an analysis of what the facts in the case mean or the implications of the facts.For example:
      • Facts from the case:There are four major companies in the industry.All of them have about the same market share.There are relatively low variable costs per unit.
      • Analysis:This will be a very price competitive industry.Most likely one or two companies will try and gain share and since there are few new customers they will have to “steal” customers from another company.They can heavily discount prices since variable costs makeup a small percentage of total unit costs.
  • QUANTITATIVE ANALYSIS:
    • Quantitative analysis should be performed whenever numerical data are present.
    • Examine and compute financial ratios to determine whether NationScape Inc. is an attractive company compared to their competitors.
    • Calculate the appropriate Weighted Average Cost of Capital Lockheed Martin should use when valuing NSI.
    • Using the above calculated WACC and the discounted cash flow (DCF) valuation method determine the appropriate valuation (NPV) for NSI.
    • Using the value that you calculated under DCF, calculate the acquisitions internal rate of return (IRR)
    • Using the value that you calculated under DCF calculate the discounted payback for the project.
    • Using what you know about estimating risk under a subjective distribution calculate the expected net present value and standard deviation of the net present value.Using the scenario manager, create a model that allows you to adjust the WACC for a worst case, base case, and best case (base case should be the values found in questions 4).This should result in three possible values.
    • What would your final offer price be for NSI?
  • RECOMMENDATIONS:
    • Indicate specifically what you recommend.You should not recommend the use of consultants or additional research – you are the consultant and researcher.Recommendations should relate directly to the problem or problems identified and the chosen course of action.Do not combine the recommendations and defense sections of your case analysis.
  • DEFENSE OF POSITION:
    • The defense should include a well-reasoned, factually based set of arguments supporting your recommendations.A numerical listing of points may be helpful.Be persuasive.You must convince your reader that your assessment of the problem(s) is correct and that your recommended course of action offers the most promise of success.Use sound logic based on your prior analysis.
• WRITING QUALITY
  • Overview
    • Although this is not a composition class, business does demand quality writing, not so much in the sense of literary style, but in terms of clarity, understanding, and conciseness.Be careful of the following:
      • Use side and paragraph headings to introduce new sections.
      • Each paragraph should develop a point.
      • Be concise in your writing.
      • Use complete sentences, with exceptions for bullets or lists.
      • Avoid indefinite references.
      • Do not use the first person, singular or plural.
      • The firm is singular.Avoid references to “they”.A company is called “it”.
      • Do not begin sentences with Arabic numbers.
      • The titles of corporate officers are not capitalized.
      • Proofread carefully, with special attention to spelling.
      • Exhibits, like formulas, graphs, and charts, may be incorporated into the text.Otherwise, include them in a separate page following where you discuss them in the text.