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BUSI 690 Page 1 of 2 CASE STUDY: PROJECTIONS, NPV, COMPILATION…
BUSI 690
Page 1 of 2
CASE STUDY: PROJECTIONS, NPV, COMPILATION ASSIGNMENT INSTRUCTIONS
OVERVIEW- UNDER ARMOUR
Continue working on the individual case study started in Case Study: Matrices Assignment of
Under Armour Corporation. Complete this portion of the case study: Case Study: Projections, NPV,
Compilation Assignment.
A formal, in-depth case study analysis requires you to utilize the entire strategic management
process. Assume your group is a consulting team the ABC Corporation to analyze its
external/internal environment and make strategic recommendations. You must include exhibits
to support your analysis and recommendations.
INSTRUCTIONS
The completed case study must include these components, with portions to be submitted over
several modules as the Case Study: Matrices Assignment, the Case Study: Historical
Financial Analysis Assignment, and the Case Study: Projections, NPV, Compilation
Assignment.
? Cover page (must include the company name, your name, the date of submission, and a
references page; the document must follow current APA guidelines)
? A total of 12 – 15 pages (for all there parts, combined) of narrative text, this does not
include the financial statements, reference pages, or matrices
? Reference page (follow current APA guidelines)
? Historical Financial Statements, Proforma Financial Statements, NPV Calculations and a
Cost Sheet for the strategy in an Excel document
? Matrices, which must be exhibits/attachments in the appendix and not part of the body of
the analysis (The Strategy Club has excellent templates/examples for exhibits and
matrices).
You will use the information completed in Case Study: Matrices, and Case Study: Historical
Financial Analysis as part of your Case Study: Projections, NPV, Compilation Assignment
final document. Be sure to make any corrections to Part One and Part Two based on feedback
given on each of the assignments.
Your Case Study: Projections, NPV, Compilation Assignment paper must include:
1. Executive Summary – this should be no more than one page and provide the reader
with an overview of what will be contained in the following pages. The problem
and strategic solution being recommended should be in this summary. Details for
the choice and implementation and data to support the decision should be contained
in the following sections.
2. Existing mission, objectives, and strategies
3. A new mission statement (include the number of the component in parenthesis
before addressing that component)
4. Analysis of the firm’s existing business model
5. SWOT Analysis
6. TOWS Matrix
7. Competitive forces analysis
BUSI 690
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8. Historical Financial Statements (Income Statement, Balance Sheet, and Statement
of Cash Flows) from the 3 most current years for the firm
9. Historical Ratio Analysis
10. Competitors Ratio Analysis
11. Alternative strategies (giving advantages and disadvantages for each). There should
be at least two alternative strategies identified and discussed.
12. Projected Financial Statements (Income Statement, Balance Sheet and Statement of
Cash Flows) for 3 years into the future. This must be broken down by year into two
(2) columns: 1 column without your strategy and 1 column with your strategy. The
without column should serve as the basis for your with strategy column and only
those financial statement accounts that will be changed, based on your strategy,
should be impacted.
13. Include Projected ratios for the without and with strategy by year. Discuss how
these ratios compare and contrast with the historical findings.
14. Cost Analysis completed on an Excel tab that outlines the cost that will be incurred
to implement the strategy. This information should correspond with the With
Strategy on the Projected Financial Statements, linking of cells to the financial
statements is encouraged.
15. Net Present Value analysis of proposed strategy’s new cash flow – you may also
use Excel to solve for this. From the income statement the change in operating
income between your with and without strategy should serve as your cash inflow
for each year.
NOTE: To construct the first cash flow (cf1) the new revenue from your strategy(s)
must be discounted back to the present value by calculating EBIT (Operating
Income on the Income Statement) and that figure will be your cfn for each year. cf0
(initial cost of your strategy), cf1 (discounted cash flow first year), r (opportunity
cost of capital, the rate of the next best alternative use of cash/debt/equity
resources).
a. ??? = – ??0 + ??1
(1 + ?) 1 + ??2
(1 + ?) 2 + ??3
(1 + ?) 3
… ???
(1 + ?)?
16. Implementation strategy – how and when will the strategy be implemented, this
should outline the who, how, what, and when of the implementation process.
17. Specific recommended strategy and long term objectives
Explain why you chose the strategy, discuss the advantages/benefits to
organizational success and sustainability. Incude a discussion of the challenges or
disadvantages that may arise as a result of the strategic choice.
18. Text must follow this order with current APA level headings for each component.
Place the results of the case study analysis in a Word document include matrices as appendices
and a reference page. Submit a separate Excel document for your Historical financials,
Projections, NPV, and Cost of the strategy.
