Discuss Strategy Project - Week 10 deliverables
- Study Group Discussion- Corporate Governance
- Individual Participation
- Strategy Project: Financial Valuation
- Develop a pro forma income statement for this strategy project in its 1st year of operation (Only to the level of EBIT)
- First identify the major cost drivers for this recommended entry strategy
- Consider costs of specific risk mitigations form week 5 and the organizational structure required from week 8, as well as other expenses
- Develop rough estimates for these major cost drivers citing all assumptions underlying the team's estimations
- Then develop rough estimates of revenue potential
- Based on market size and growth numbers from week 4 and considering competition identified in week 6, The team will develop a market share estimate, with supporting rationale and specifying all assumptions
- Costs of the strategic actions will be compared to the potential revenue, to develop an income statement showing EBIT
- Under what assumptions would the team consider this project to be financially viable? Where are the major risk factors? Which factors must be monitored most closely in the Balanced Scorecard in order to limit risk?
- Approx. 5-9 pages
- Post in Team Study Group area "Financial Projections"