MBA 520 Final Project Guidelines and Rubric

MBA 520 Final Project Guidelines and RubricOverviewBusinesses and other organizations must regularly measure their financial performance and health in order to make operational and strategic decisions affectingthe organization’s future. Management professionals utilize income statements, balance sheets, cash flow statements, and a limitless variety of other reports andtechniques to evaluate an organization. They also work closely with professionals from departments across the organization—including marketing, humanresources, and operations—to ensure that the business runs smoothly and that financial decisions are not made in isolation.For this project, you will use the accounting and finance skills you learned in the course to review the past and current financial performance and health of aglobal, publicly traded company. Based on that analysis, you will create initial financial projections that forecast the company’s performance under differentscenarios and identify internal risks and opportunities in order to begin planning future activities.This assessment addresses the following course outcomes:Assess organizations’ underlying financial performance and health by analyzing relevant financial statements, variances, ratios, and other financialinformationDraw connections between accounting and financial information and the broader organizational context for making integrated business decisionsAssess critical factors driving financial risks and opportunities for informing management prioritiesForecast business performance under different assumptions about inputs and processes using simple financial modelsEvaluate the internal costs and benefits of business opportunities for their impact on budgeting and business decisionsCommunicate financial analyses clearly and coherently for persuading internal stakeholders of the validity of observations and conclusionsPromptImagine you are a newly hired manager at a publicly traded, global corporation of your choosing. (Your instructor must approve your choice. You may also choosea non-publicly traded organization, if your instructor verifies that the organization has sufficient financial information available to complete the project.)You have been asked to review the company’s past and current financial performance and health and make initial financial projections in order to begin planningfor the upcoming year. Your supervisor is particularly interested in a fresh perspective on what your analysis reveals about potential risks and opportunities, aswell as recommendations for next steps. Because you will eventually need to convince internal stakeholders, including senior management, of the feasibility anddesirability of your suggested activities, it is important that you justify your projections and recommendations, explaining how they were informed by existinginformation and modeling different scenarios.Your financial analysis and projection report will include several financial tables, along with a comprehensive narrative describing the organization’s context,financial performance and health, and your analytical approach and conclusions. Your report should be geared toward an executive audience with basicaccounting and finance knowledge and should be well organized, clear, concise, convincing, and free of distracting errors. Note that, in addition to theorganization’s financial statements and website, other authoritative news sources—such as annual reports and external sites like Bloomberg.com—may offerinsights that facilitate analysis or provide information on the organization’s priorities, challenges, and geographic distribution.Specifically, your financial analysis and projection report must include the following critical elements:I.Executive Summary. Clearly and concisely summarize your principal findings, projections, and recommendations with an eye to persuading busy executivesto support your ideas and to read further.II.Approach. Provide your intended audience with a solid, but brief, sense of the parameters of your analysis and who else you would consult in refining itfurther and why. Remember, your goal is to convince readers of the validity of your observations, while recognizing limitations that affect businessdecisions.III.Financial Performance and Health. In this section, you will evaluate the organization’s recent financial performance and current financial health, given itsorganizational context. In particular, you must cover:A. Organizational Context1. What key features of the organization (e.g., major products or services, customers, location, etc.) help set the boundaries for businessdecisions? In other words, what key goods or services does your organization provide, for whom, where, and why?2. How is the company organized and managed (e.g., by product groups, geographic region, function, etc.)? How does that affectaccounting and financial information and subsequent business decisions?B. Recent Financial Performance1. Assess what the organization’s consolidated income statements for the last three years say about its financial performance. Use relevantindicators, graphs, and spreadsheets to support your narrative. (Include all spreadsheets in an appendix.) For example, what do theamounts and year-to-year changes in revenue, operating income, net profit or loss, and Earnings Before Interest, Taxes, Depreciation,and Amortization tell you? Do any items stand out?2. Assess what the organization’s consolidated cash flow statements for the same time period say about its financial performance. Userelevant indicators, graphs, and spreadsheets to support your narrative. For example, what do the amounts and year-to-year changes incash from operating activities, cash from investing, cash from financing, and total cash flow tell you? Do any items stand out?3. Assess the organization’s underlying financial performance. Support your answer with the analysis above and relevant research. Forexample, is recent performance substantially affected by unusual events such as a major acquisition or spin-off? Is the business thrivingor struggling in its industry? How do you know?C. Current Financial Health1. Assess how the organization is capitalized and what that tells you about its financial health. Support your response with relevant graphs,spreadsheets, and indicators such as “cash and cash equivalents,” total debt, shareholders’ equity, current ratio, debt/equity ratio, andDays Sales Outstanding (DSO). For example, does the organization have enough cash for payroll and other bills? Does it have the right mixof debt versus equity (stock)? How do you know?2. Does the organization have the right amount of cash and other resources (e.g., key people, technologies, reputation, physical assets, etc.)to fuel future growth? What does this suggest for business decisions? For example, if it has too much cash, should it pay a large dividend,repurchase its own shares, or reinvest the excess funds?3. Assess the financial value of the company using relevant indicators. What does your assessment imply for future business health andperformance? For example, what is the business’s current market value? What is its price-to-earnings ratio? What do these suggestabout investor perceptions of the business’s future?IV.Success Factors and Risks. Use this section to discuss the factors that may affect current and future performance. Specifically:A. How do the organization’s financial and strategic priorities affect accounting procedures and business decisions? How might that affect businesssuccess? For example, is management growth-oriented or efficiency-oriented? What is the organization’s approach to risk and short- versus longterm planning horizons?B. How might the organization better capitalize on non-financial factors such as market share, reputation, human resources, physical facilities, orpatents? Support your response with relevant research and analysis.C. What are the most significant internal risks to the company’s financial performance? Give evidence to support your response. For example, is thecompany vulnerable to technological changes or cyber-attacks? Loss of high-talent personnel? Production disruptions?V.Projections. Based on what you know about the organization’s financial health and performance, forecast its future performance. In particular, youshould:A. Project the organization’s likely consolidated financial performance for each of the next three years. Support your analysis with an appendixspreadsheet showing actual results for the most recent year, along with your projections and assumptions. Remember, your supervisor isinterested in fresh perspectives, so you should not just replicate existing financial statements, but should add other relevant calculations ordisaggregations to help inform decisions.B. Modify your projections for the coming year to show a best- and worst-case scenario, based on the potential success factors and risks youidentified. As with your initial projections, support your analysis with an appendix spreadsheet, specifying your assumptions and includingrelevant calculations and disaggregations beyond those in existing financial reports.C. Discuss how your assumptions, forecasting methodology, and information gaps affect your projections. Why are your projections appropriate?For example, are they consistent with the organization’s mission and priorities? Aggressive but achievable? How would changing yourassumptions change your projections?VI.Business opportunities. In this section, discuss the incremental impact of a hypothetical, but reasonable, simple new investment project, such as a newproduct or facility or a cost-cutting investment, as an initial step in thinking about the future. Be sure to address the following:A. Based on your knowledge of this organization, what is a likely investment it would consider and why? Be sure to describe the basic features ofthe investment as a foundation for considering its potential financial impact.B. Evaluate the approximate costs and benefits of the investment you identified, explaining how these would affect your spreadsheet projectionsand business decisions. Estimates are sufficient, but should be grounded in common sense and insight into the organization.C. How does the potential investment affect budgeting and related business decisions? For example, does the investment involve significant cashspending this coming year, followed by benefits in the following year? How might that affect short-term and long-term spending priorities? Doesthe benefit outweigh the cost?VII.Recommendations. What should you and your manager do next? Support your recommendations with evidence from your financial analysis. Forexample, should the company pursue the new investment you identified? Implement process changes to decrease risks and/or improve performance?MilestonesMilestone One: Financial Performance and HealthIn Module Three, you will submit your first milestone in which you will evaluate the organization’s recent financial performance and current financial health,given its organizational context. This milestone will be graded with the Milestone One Rubric.Milestone Two: Success Factors, Risk, and ProjectionsIn Module Five, you will discuss factors that may affect current and future performance. You will then forecast future performance, based on what you knowabout the organization’s financial health and performance. This milestone will be graded with the Milestone Two Rubric.Milestone Three: Business OpportunitiesIn Module Seven, you will discuss the incremental impact of a hypothetical, but reasonable, simple new investment project, such as a new product or facility or acost-cutting investment, as an initial step in thinking about the future. This milestone will be graded with the Milestone Three Rubric.Final Submission: Financial Analysis Projection ReportIn Module Nine, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It shouldreflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Product Rubric.DeliverablesMilestone1DeliverableFinancial Performance and HealthModule DueThreeGradingGraded separately; Milestone One RubricFiveGraded separately; Milestone Two Rubric2Success Factors, Risk, and Projections3Business OpportunitiesSevenGraded separately; Milestone Three RubricFinal Submission: Financial AnalysisProjection ReportNineGraded separately; Final Product RubricFinal Product RubricGuidelines for Submission: Your financial analysis and projection report should be approximately 6–8 pages long (excluding title page, spreadsheets and graphs,and references list). It should be double spaced, with 12-point Times New Roman font and one-inch margins, and should use the latest guidelines for APAformatting for references and citations. Please also include your name, course name, and submission date on the title page.Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information,review these instructions.Critical ElementsExecutive SummaryExemplary (100%)Meets “Proficient” criteria, andresponse is especially wellsuited for target audienceProficient (90%)Clearly and conciselysummarizes principal findings,projections, andrecommendations with an eyeto persuading busy executivesto support ideas and readfurtherApproachMeets “Proficient” criteria, andresponse is especially wellsuited for target audienceProvides intended audiencewith a solid, but brief, sense ofparameters of analysis and whoelse would be consulted inrefining itNeeds Improvement (70%)Summarizes principal findings,projections, andrecommendations with an eyeto persuading busy executivesto support ideas and readfurther, but summary islengthy, lacks clarity, omitscritical details, or containsinaccuraciesProvides intended audiencewith a sense of parameters ofanalysis and who else would beconsulted, but response islengthy, lacks clarity, omitscritical details, or containsinaccuraciesNot Evident (0%)Does not summarize principalfindings, projections, andrecommendations with an eyeto persuading busy executivesto support ideas and readfurtherValue5.33Does not provide intendedaudience with a sense ofparameters of analysis and whoelse would be consulted inrefining it5.33Financial: Context:Key FeaturesMeets “Proficient” criteria anddraws particularly insightfulconnections betweenorganization’s financial andnon-financial features andbusiness decisionsDescribes how key features oforganization help setboundaries for businessdecisionsFinancial: Context:OrganizedMeets “Proficient” criteria anddemonstrates especially keeninsight into relationshipsbetween organization’sstructure, how financialinformation is recorded, andimpact on business decisionsAnalyzes how company isorganized and managed andeffect on accounting andfinancial information andsubsequent business decisionsFinancial:Performance:IncomeMeets “Proficient” criteria, andanalysis and supportingevidence are particularly wellsuited to drawing meaningfulconclusions about financialperformanceAssesses what consolidatedincome statements for lastthree years say about financialperformance, supported byrelevant indicators, graphs, andspreadsheetsFinancial:Performance: CashFlowMeets “Proficient” criteria, andanalysis and supportingevidence are particularly wellsuited to drawing meaningfulconclusions about financialperformanceAssesses what consolidatedcash flow statements for thesame time period say aboutfinancial performance,supported by relevantindicators, graphs, andspreadsheetsFinancial:Performance:UnderlyingMeets “Proficient” criteria, andassessment is especiallynuanced and well supported byrelevant analysis and researchAssesses underlying financialperformance, supported byanalysis and relevant researchDescribes how key features oforganization help setboundaries for businessdecisions, but response iscursory, contains inaccuracies,or links to decision making areweak or illogicalAnalyzes how company isorganized and effect onaccounting and financialinformation and decisions, butresponse is cursory, containsinaccuracies, or links betweenorganizational structure,finance, and decision makingare weak or illogicalAssesses what consolidatedincome statements say aboutfinancial performance,supported by indicators,graphs, and spreadsheets, butresponse is cursory, containsinaccuracies, or support is notrelevantAssesses what consolidatedcash flow statements say aboutfinancial performance,supported by indicators,graphs, and spreadsheets, butresponse is cursory or containsinaccuracies or support is notrelevantAssesses underlying financialperformance, supported byanalysis and research, butresponse is cursory, containsgaps in accuracy or logic, or ispoorly supported by analysisand researchDoes not describe how keyfeatures of organization helpset boundaries for businessdecisions5.33Does not analyze how companyis organized and managed andeffect on accounting andfinancial information andsubsequent business decisions5.33Does not assess whatconsolidated incomestatements for last three yearssay about financialperformance, supported byrelevant indicators, graphs, andspreadsheets3.6Does not assess whatconsolidated cash flowstatements for the same timeperiod say about financialperformance, supported byrelevant indicators, graphs, andspreadsheets3.6Does not assess underlyingfinancial performance,supported by analysis andrelevant research3.6Financial: Health:CapitalizedMeets “Proficient” criteria andanalysis and supportingevidence are particularly wellsuited to drawing meaningfulconclusions about financialhealthAssesses how organization iscapitalized and what that saysabout financial health,supported by relevant graphs,spreadsheets, and indicatorsFinancial: Health:GrowthMeets “Proficient” criteria anddemonstrates extraordinaryinsight into the connectionsbetween financial and nonfinancial resources, resourcemanagement strategies, andbusiness decisions related togrowthDetermines whetherorganization has right amountof cash and other resources tofuel future growth and whatthis suggests for businessdecisionsFinancial: Health:Financial ValueMeets “Proficient” criteria, andassessment and supportingevidence are particularly wellsuited to drawing meaningfulconclusions about futurefinancial health andperformanceAssesses financial value ofcompany and what it impliesfor future health andperformance using relevantindicatorsSuccess Factors andRisks: PrioritiesMeets “Proficient” criteria, anddiscussion of how prioritiesinform management decisionsis especially nuancedDetermines how organization’sfinancial and strategic prioritiesaffect accounting proceduresand business decisions and theimplications for businesssuccessAssesses how organization iscapitalized and what that saysabout financial health,supported by graphs,spreadsheets, and indicators,but response is cursory orcontains inaccuracies orsupport is not relevantDetermines whetherorganization has right amountof cash and other resources tofuel future growth and whatthis suggests for businessdecisions, but response iscursory or containsinaccuracies or links betweendifferent types of resourcesand business decisions areweak or illogicalAssesses financial value ofcompany and what it impliesfor future health andperformance using relevantindicators, but assessment iscursory or containsinaccuracies or links to futurehealth and performance areweak or illogicalDetermines how organization’sfinancial and strategic prioritiesaffect accounting proceduresand business decisions and theimplications for businesssuccess, but response iscursory or containsinaccuracies or links betweenpriorities and businessdecisions and procedures areweak or illogicalDoes not assess howorganization is capitalized andwhat that says about financialhealth, supported by relevantgraphs, spreadsheets, andindicators3.6Does not determine whetherorganization has right amountof cash and other resources tofuel future growth and whatthis suggests for businessdecisions5.33Does not assess financial valueof company and what it impliesfor future health andperformance using relevantindicators3.6Does not determine howorganization’s financial andstrategic priorities affectaccounting procedures andbusiness decisions and theimplications for businesssuccess5.33Success Factors andRisks: Non-FinancialFactorsMeets “Proficient” criteria anddemonstrates extraordinaryinsight into the ways in whichnon-monetary factors impactbusiness opportunitiesIdentifies how organizationmight better capitalize on nonfinancial factors, supported byrelevant research and analysisSuccess Factors andRisks: RisksMeets “Proficient” criteria andprovides especially nuancedand well-supported insight intothe internal factors that aremost significant in drivingfinancial riskPinpoints most significantinternal risks to financialperformance, supported byevidenceProjections: LikelyPerformanceMeets “Proficient” criteria, andprojections are especiallynuanced and well-supported byevidence and realisticassumptionsProjects likely consolidatedfinancial performance for nextthree years, supported byspreadsheet showing actualresults for most recent year,projections, and assumptionsProjections: Bestand Worst CaseMeets “Proficient” criteria anddemonstrates especially keeninsight into the range ofpossible financial projections,based on reasonable andrealistic assumptionsModifies projections to showbest- and worst-case scenariosfor coming year based onsuccess factors and risksidentified, supported byspreadsheet with assumptionsand relevant informationbeyond existing financialreportsIdentifies how organizationmight better capitalize on nonfinancial factors, supported byresearch and analysis, butresponse is cursory, containsinaccuracies, or is poorlysupportedPinpoints most significantinternal risks to financialperformance, supported byevidence, but response iscursory, contains gaps inaccuracy or logic, or evidence isweak or irrelevantProjects likely consolidatedfinancial performance for nextthree years, supported byspreadsheet showing actualresults for most recent year,projections, and assumptions,but response containsinaccuracies or faultyassumptions or omits keydetailsModifies projections to showbest- and worst-case scenariosbased on success factors andrisks identified, supported byspreadsheet with assumptionsand additional information, butresponse contains inaccuraciesor faulty assumptions oradditional information includedis not relevantDoes not identify howorganization might bettercapitalize on non-financialfactors, supported by researchand analysis5.33Does not pinpoint mostsignificant internal risks tofinancial performance,supported by evidence5.33Does not project likelyconsolidated financialperformance for next threeyears, supported byspreadsheet showing actualresults for most recent year,projections, and assumptions5.33Does not modify projections toshow best- and worst-casescenarios based on successfactors and risks identified,supported by spreadsheet withassumptions and informationbeyond existing financialreports5.33Projections: DiscussMeets “Proficient” criteria anddemonstrates especially keeninsight into the sensitivity offinancial projections tochanging circumstances andassumptionsDiscusses how assumptions,forecasting methodology, andinformation gaps affectprojections and whyprojections are appropriateBusinessOpportunities: LikelyInvestmentMeets “Proficient” criteria, andinvestment identified isparticularly well-aligned withthe needs, priorities, and goalsof the organizationIdentifies likely investment toconsider and why, describingits basic features as afoundation for consideringpotential financial impactBusinessOpportunities: Costsand BenefitsMeets “Proficient” criteria, andevaluation is based on realisticestimates and is especially wellaligned with decision-makingneedsEvaluates approximate costsand benefits of investmentidentified, explaining howthese would affect spreadsheetprojections and businessdecisionsBusinessOpportunities:ImplicationsMeets “Proficient” criteria, anddiscussion of budgetingimplications is particularlynuanced and well aligned withdeci…