Category: Business

How an organization gains a competitive advantage

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Demonstrate your mastery of the following competencies:
Determine how an organization gains a competitive advantage
Determine organizational risk and growth opportunities in order to develop a strategic plan
Defend business decisions in support of an organization’s strategic plan
Scenario
It’s the moment of truth: your opportunity to demonstrate why your new product or service is worth funding. You have done the research and know that the funding you seek can be a game changer for the company. Not only will it produce revenue and profitability, but more importantly, it will strategically set the company apart from its competition.
You just have to convince senior management.
In preparation, you have created a checklist for yourself to use in compiling information that includes research, feasibility of the idea via the BMC, scope of project (timeline included), project risk mitigation, DEI, CSR, and 24-month pro forma.
You know that anything can happen in a funding pitch. With this in mind, you are prepared to answer questions that encompass all aspects of the project.
Directions
Create a pitch for funding. In this pitch, you will have to convince senior management to greenlight the new product or service. Aspects of the pitch that must be addressed:
Value proposition: Describe the company’s current value proposition in the market.
Describe the selected company’s main product or service.
Discuss the company’s overall strategic plan.
Competitive advantage: Describe the competitive advantage the company will gain by funding the project.
Describe how you discovered an opportunity to do something better than your competitors.
Determine how the new product or service shifts the value proposition of the company.
Risks and opportunities: Establish the risks and growth opportunities of the company.
Determine if the new product or service could disrupt the current industry.
Identify the risks associated with the development of this new product or service.
Growth opportunities: Describe the areas of potential growth for the company.
Identify the growth opportunities within the company.
Explain how the competitive advantage allows for growth.
Distinguish as a new product or innovation: Distinguish the new product/service as an innovation or improvement on an existing product/service.
Determine if the product or service fits within the capabilities of the company.
Note: a company’s SWOT analysis or 10-K is an indicator of whether the new product or service could be feasible.
Explain how the new product or service adds to the portfolio of the company.
Target segment: Describe the targeted segment.
Identify the target customer.
Explain your blue ocean strategy.
Note: The new market is identified here.
Speculate sales: Speculate on the projected sales.
Justify your product or service by the numbers; discuss your projected revenue gain.
Note: it MUST have an ROI that justifies the project for investors and/or senior management.
Explain the risks associated with projected sales.
Speculate profitability: Speculate on the profitability of your proposed product or service.
Determine if the project is profitable.
Note: In this pitch for funding, senior management has to know that the project, based on market research, is speculated to be profitable. Use the company’s current income statement to project how the company’s profitability will be affected. Look to other companies in the marketplace with products or services similar to the one you are proposing as a basis for your projections. Note: these numbers are purely speculative.
Determine the impact on the functional areas of the business (accounting, marketing, sales, and so on).
CSR plan: Outline the plan to service the community or customers that purchase the product or service.
Discuss how the idea demonstrates corporate social responsibility (CSR).
Identify what the company has invested in as it relates to the communities they serve.
Discuss how a good CSR plan helps the company gain competitive advantage.
DEI plan: Summarize how the project will include a variety of perspectives to get a better unique value proposition.
Determine if the company has a corporate culture built on DEI.
Discuss how the project’s DEI plan fits into the company’s overall strategic plan.

 

 

Factors that commonly lead to the success or failure of a project

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Analyze and reflect on factors that commonly lead to the success or failure of a project
Scenario
You have reached the end of Release One of the XYZ Business Workflow project, and your team has faced some challenges during the development process.

One software tester and one developer from your team resigned. You found replacements for both of them. But, the new developer had to be trained by one of your other team members. This affected the team’s productivity.

Also, during one of your status meetings with the client stakeholders, their product owner requested a change in a feature that was almost complete. They were also very resistant to give any additional time for the first release. As a result, you had to add extra hours to your development time.

To accommodate these changes, your team worked extra hours and even some weekends to complete the project. Finally, you managed to deliver the first release according to schedule.

Although the release goes fairly smoothly, after a few days, the customer reports that their users are facing some issues with the software. They also have a list of changes and two new features they would like to see in the software before your final rollout in Release Two.

Directions
Analysis and Recommendations
Your executive team has asked you to prepare a report summarizing your analysis of the first release of the XYZ Business Workflow software and recommendations for how you think Release Two of the project should be planned.

Think about the project charter, the initial project plan you created in Project One, and the challenges the project team has faced so far. What steps did you take to manage these challenges? In retrospect, can you think of some other strategies you could have used during project planning and/or risk mitigation for better results? Specifically, your report should include the following:

Reflect on the project so far and provide your analysis of what went well and what could have been better.
Outline what you think were the successes and failures of the project.
Identify major challenges your team faced in completing this project and describe how you handled them.
List some alternate strategies you could have used during project planning and/or during risk mitigation for better results.
Based on your experience with Release One, provide some recommendations for managing the second release of the XYZ Business Workflow software, including the methodology, change management, and quality control strategies.
Use information from the scenario, Project One and Project Two, and make reasonable assumptions as you complete these tasks. Be sure to explain your assumptions.

 

Factors that commonly lead to the success or failure of a project

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Analyze and reflect on factors that commonly lead to the success or failure of a project
Scenario
You have reached the end of Release One of the XYZ Business Workflow project, and your team has faced some challenges during the development process.

One software tester and one developer from your team resigned. You found replacements for both of them. But, the new developer had to be trained by one of your other team members. This affected the team’s productivity.

Also, during one of your status meetings with the client stakeholders, their product owner requested a change in a feature that was almost complete. They were also very resistant to give any additional time for the first release. As a result, you had to add extra hours to your development time.

To accommodate these changes, your team worked extra hours and even some weekends to complete the project. Finally, you managed to deliver the first release according to schedule.

Although the release goes fairly smoothly, after a few days, the customer reports that their users are facing some issues with the software. They also have a list of changes and two new features they would like to see in the software before your final rollout in Release Two.

Directions
Analysis and Recommendations
Your executive team has asked you to prepare a report summarizing your analysis of the first release of the XYZ Business Workflow software and recommendations for how you think Release Two of the project should be planned.

Think about the project charter, the initial project plan you created in Project One, and the challenges the project team has faced so far. What steps did you take to manage these challenges? In retrospect, can you think of some other strategies you could have used during project planning and/or risk mitigation for better results? Specifically, your report should include the following:

Reflect on the project so far and provide your analysis of what went well and what could have been better.
Outline what you think were the successes and failures of the project.
Identify major challenges your team faced in completing this project and describe how you handled them.
List some alternate strategies you could have used during project planning and/or during risk mitigation for better results.
Based on your experience with Release One, provide some recommendations for managing the second release of the XYZ Business Workflow software, including the methodology, change management, and quality control strategies.
Use information from the scenario, Project One and Project Two, and make reasonable assumptions as you complete these tasks. Be sure to explain your assumptions.

 

Portfolio returns on shareholder value

Posted on | by Brian Leakey

This discussion addresses the following Module Outcomes:

Evaluate expected portfolio returns on shareholder value. (CO4)
Evaluate systemic risk by applying a Beta coefficient. (CO4)
Evaluate firm and project value using a weighted average cost of capital (WACC). (CO2, CO3, CO4)
Proterra was founded by Dale Hill in 2004 with a vision to design and manufacture world-leading, advanced technology heavy-duty vehicles powered solely by clean domestic fuels. After launching a first successful fleet of alternative fuel buses in the 1990s, Proterra focused on developing the ‘bus of tomorrow.’ Proterra Inc. also designs and manufactures heavy-duty vehicles including EcoRide, a battery electric and zero-emissions bus, and Proterra Catalyst, an electric transit vehicle. The company manufactures a TerraFlex Energy System that enables customers to select amount and type of energy storage to meet specific route requirements, plus TerraVolt fast-charge batteries, TerraVolt extended range batteries, an on-route charge station and in-depot charging services. It offers financing solutions, route simulation analysis, battery lifecycle management, and standard warranty services (Proterra, 2015). It serves customers throughout the United States. The company is privately owned, but is in the process of becoming a public corporation. With this expectation, the firm’s chief executive officer (CEO) has asked for determination of which of two companies appears to be a better peer to compare itself against, New Flyer Industries, Inc. (a Toronto-based firm), or Tesla. Tesla Motor Vehicles designs, develops, manufactures, and sells high-performance fully electric vehicles and stationary energy storage units similar to certain Proterra products. Tesla Motors has subsidiaries in North America, Europe and Asia, with the primary purpose of these subsidiaries being to market, manufacture, sell and/or service their vehicles (Tesla Motors, 2016). New Flyer was founded in 1930, and is now the largest transit bus and motorcoach manufacturer and parts distributor in North America with fabrication, manufacturing, distribution and service centers in Canada and the United States. It is North America’s heavy-duty transit bus leader and offers clean diesel, natural gas, diesel-electric hybrid, electric-trolley and battery-electric. Information regarding Tesla and New Flyer is given here, for your use in comparing these firms.

Tesla versus New Flyer
Significance
Measure
TSLA
NFI
Total Market Value of all outstanding shares.
Market capitalization
33.63B
1.831B
Number of outstanding shares currently held by all shareholders.
Outstanding shares of stock
147.28M
59.742M
A Beta coefficient indicates the systemic risk that an asset has relative to an average asset. A risk-free asset has a Beta of zero.
Beta
1.28
0.16
The return the firm must earn on its existing assets to maintain the value of its stock, and the required return on any investments by the firm that have essentially the same risks as existing operations.
WACC
9.03%
8.34
PE ratio divided by expected future earnings growth (after multiplying the growth rate by 100).
PEG Ratio
18.47
0.5
A measure of profit per dollar of assets.
ROA
-7.04%
6.26%
A measure of how the stockholders fared during the year.
ROE
-113.20%
13.21%
A measure of how much investors are willing to pay per dollar of current earnings. Higher PEs are often taken to mean the firm has significant prospects for future growth.
P/E Ratio
-29.17
25.3
Ratio of Net income to sales.
Profit Margin
-23.91%
-3.83%
Discussion Prompt:

In this discussion, assume that you are the finance manager for Proterra and you have been asked to provide an analysis of the following issues, as the firm develops benchmarks for its cost of capital (WACC) estimates. The firm’s CEO has instructed you to use the pure play approach to estimate its WACC cost of capital, and has chosen Tesla Motors (ticker symbol TSLA) and New Flyer (ticker symbol NYI.TO) as possible representative peers (Korosec, 2015). You will deliver your analysis in the form of a memo, or formal communication addressed to the firm’s CEO. In this discussion, you are to present this memo in which you:
Tasks:
Using the information provided here and speaking of Finance Director of Proterra, brief the firm’s CEO, analyzing:
Analyze the relative applicability or inapplicability of utilizing these firms as peers to evaluate Proterra’s likely cost of capital, given what you know about Proterra, Tesla and New Flyer, and the lessons of Capital Market History.
Analyze problems in using an SML approach in determining Proterra’s cost of capital.
Post two additional replies to classmates, offering critical analyses and comments relating to their determinations and evaluations of Proterra’s utilization of Tesla as a peer, and problems in the overall approach of evaluating cost of capital using a WACC. Please cite sources of additional research examine areas where you do and do not believe that your classmates’ statements make optimal use of assigned readings, or could otherwise include additional considerations.

Portfolio returns on shareholder value

Posted on | by Brian Leakey

This discussion addresses the following Module Outcomes:

Evaluate expected portfolio returns on shareholder value. (CO4)
Evaluate systemic risk by applying a Beta coefficient. (CO4)
Evaluate firm and project value using a weighted average cost of capital (WACC). (CO2, CO3, CO4)
Proterra was founded by Dale Hill in 2004 with a vision to design and manufacture world-leading, advanced technology heavy-duty vehicles powered solely by clean domestic fuels. After launching a first successful fleet of alternative fuel buses in the 1990s, Proterra focused on developing the ‘bus of tomorrow.’ Proterra Inc. also designs and manufactures heavy-duty vehicles including EcoRide, a battery electric and zero-emissions bus, and Proterra Catalyst, an electric transit vehicle. The company manufactures a TerraFlex Energy System that enables customers to select amount and type of energy storage to meet specific route requirements, plus TerraVolt fast-charge batteries, TerraVolt extended range batteries, an on-route charge station and in-depot charging services. It offers financing solutions, route simulation analysis, battery lifecycle management, and standard warranty services (Proterra, 2015). It serves customers throughout the United States. The company is privately owned, but is in the process of becoming a public corporation. With this expectation, the firm’s chief executive officer (CEO) has asked for determination of which of two companies appears to be a better peer to compare itself against, New Flyer Industries, Inc. (a Toronto-based firm), or Tesla. Tesla Motor Vehicles designs, develops, manufactures, and sells high-performance fully electric vehicles and stationary energy storage units similar to certain Proterra products. Tesla Motors has subsidiaries in North America, Europe and Asia, with the primary purpose of these subsidiaries being to market, manufacture, sell and/or service their vehicles (Tesla Motors, 2016). New Flyer was founded in 1930, and is now the largest transit bus and motorcoach manufacturer and parts distributor in North America with fabrication, manufacturing, distribution and service centers in Canada and the United States. It is North America’s heavy-duty transit bus leader and offers clean diesel, natural gas, diesel-electric hybrid, electric-trolley and battery-electric. Information regarding Tesla and New Flyer is given here, for your use in comparing these firms.

Tesla versus New Flyer
Significance
Measure
TSLA
NFI
Total Market Value of all outstanding shares.
Market capitalization
33.63B
1.831B
Number of outstanding shares currently held by all shareholders.
Outstanding shares of stock
147.28M
59.742M
A Beta coefficient indicates the systemic risk that an asset has relative to an average asset. A risk-free asset has a Beta of zero.
Beta
1.28
0.16
The return the firm must earn on its existing assets to maintain the value of its stock, and the required return on any investments by the firm that have essentially the same risks as existing operations.
WACC
9.03%
8.34
PE ratio divided by expected future earnings growth (after multiplying the growth rate by 100).
PEG Ratio
18.47
0.5
A measure of profit per dollar of assets.
ROA
-7.04%
6.26%
A measure of how the stockholders fared during the year.
ROE
-113.20%
13.21%
A measure of how much investors are willing to pay per dollar of current earnings. Higher PEs are often taken to mean the firm has significant prospects for future growth.
P/E Ratio
-29.17
25.3
Ratio of Net income to sales.
Profit Margin
-23.91%
-3.83%
Discussion Prompt:

In this discussion, assume that you are the finance manager for Proterra and you have been asked to provide an analysis of the following issues, as the firm develops benchmarks for its cost of capital (WACC) estimates. The firm’s CEO has instructed you to use the pure play approach to estimate its WACC cost of capital, and has chosen Tesla Motors (ticker symbol TSLA) and New Flyer (ticker symbol NYI.TO) as possible representative peers (Korosec, 2015). You will deliver your analysis in the form of a memo, or formal communication addressed to the firm’s CEO. In this discussion, you are to present this memo in which you:
Tasks:
Using the information provided here and speaking of Finance Director of Proterra, brief the firm’s CEO, analyzing:
Analyze the relative applicability or inapplicability of utilizing these firms as peers to evaluate Proterra’s likely cost of capital, given what you know about Proterra, Tesla and New Flyer, and the lessons of Capital Market History.
Analyze problems in using an SML approach in determining Proterra’s cost of capital.
Post two additional replies to classmates, offering critical analyses and comments relating to their determinations and evaluations of Proterra’s utilization of Tesla as a peer, and problems in the overall approach of evaluating cost of capital using a WACC. Please cite sources of additional research examine areas where you do and do not believe that your classmates’ statements make optimal use of assigned readings, or could otherwise include additional considerations.

Forecasted values

Posted on | by Brian Leakey

As Business Operations Manager at Ashley Regional Medical Center, prepare and attach to the relevant discussion board area a narrated PowerPoint presentation of no more than 8 slides using concepts introduced in this Module to update the Medical Center’s Technology Adoption Board regarding the reliability of NPV estimates. Your presentation must:

Evaluate the possibility that forecasted values could differ from the initial NPV estimate, explaining the assumptions and conceptual rationale behind the analyses that you have used to diminish the possibility of error in our estimates, including sensitivity and scenario analyses.
Present additional insights to risk associated with project returns that capital market history can offer regarding risk and return associated with this project.

Forecasted values

Posted on | by Brian Leakey

As Business Operations Manager at Ashley Regional Medical Center, prepare and attach to the relevant discussion board area a narrated PowerPoint presentation of no more than 8 slides using concepts introduced in this Module to update the Medical Center’s Technology Adoption Board regarding the reliability of NPV estimates. Your presentation must:

Evaluate the possibility that forecasted values could differ from the initial NPV estimate, explaining the assumptions and conceptual rationale behind the analyses that you have used to diminish the possibility of error in our estimates, including sensitivity and scenario analyses.
Present additional insights to risk associated with project returns that capital market history can offer regarding risk and return associated with this project.

Challenges in the Business Environment

Posted on | by Brian Leakey

Overview
Changing, or even stating, a company’s values can be a long and arduous process, but it often pales in comparison to the effort it takes to make sure they are honored, implemented and projected. In this assignment, you evaluate how well your chosen company from the first assignment has done in “walking the talk” and responding to a social issue.
Preparation
Review your chosen company’s mission and values statements as well as other sources that provide insight into the company’s values with regard to social responsibility. Pick two of their primary values and research how the company manifests those values. Simple examples might be the commitment to workplace diversity or ecological sustainability.
Instructions
Create a 3–5-minute (approximately 6–8 slides) PowerPoint presentation that evaluates how well the company embodies its issue-related values. Your presentation should contain detailed speaker’s notes that flesh out and support main points, ideas, or conclusions and have supporting citations.
Summarize your chosen company’s Supplier Responsibility information.
In your own words, explain how each aspect of your Supplier Code of Conduct is committed to ethical business practices and social responsibility.
Discuss your company’s stance on each of the following areas:
Empowering Workers.
Labor and Human Rights.
Health and Safety.
The Environment.
Accountability.
Identify the key ways that your company’s Code of Conduct has changed since last year.
Examine the manner in which your company’s Supplier Code of Conduct helps the organization operate as a socially responsible organization.