Increasing capital expenditures to increase competitiveness


Discuss Wayne Hurt and The Kroger Company Executive Summary: Introduce the current status of your company (a brief overview of your company's status. Include the good and the bad.

Recommendations & Justifications: You will use the Recommendations below (or make up some of your own) and justify whether the firm should go along with the recommendation.

Concluding thoughts: include what the potential is for your chosen company if they are able to execute your recommendations and the ramifications if they do not.

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As a financial consultant, what recommendations would you propose to current company management based on your findings? This added value content should include conclusions and recommendations for the firm going forward (as if you were a consultant for the firm). Adding value means having detailed conclusions and recommendations. Having detailed RECOMMENDATIONS and being able to JUSTIFY them are VERY IMPORTANT! Typical recommendations and conclusions that you will probably use include:

Should the firm increase capital expenditures to increase competitiveness?
Should the firm increase growth by acquiring other companies for synergies or grow internally?
Should the firm risk increasing their leverage (debt) to increase earnings and return on capital or keep the leverage the same (or even decrease it?)
Should the firm increase/decrease marketing spending?
Should the firm increase/decrease R&D spending?
How should they go about controlling costs including labor, health care, and pension liabilities? (GM and Ford need help in this department).

There are many more recommendations you can offer. (Note: feel free to add more recommendations or change some of the ones above that fit your chosen company. Note that you want a minimum of at least 6 recommendations.) Feel free to be creative. If you make these recommendations, you want to list WHAT the recommendation is and JUSTIFY WHY the firm should embrace it (and how it benefits the firm). You are the chief financial consultant so you have full rein to make any recommendations.

 

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Finance Basics: Increasing capital expenditures to increase competitiveness
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