the Clientele Effect

1.Explain the basic premise of the Clientele Effect. How does this impact the dividend policy implemented by the firm? Your response must be in your own words.

2.If you had started your own business and were contemplating expansion, would you choose to finance your expansion with debt or equity? Justify and defend your choice with sound reasoning. Your answer should be in your own words.

3.When using the Internal Rate of Return method to assess capital projects, what is a common pitfall that might occur if an organization consistently chooses projects with the highest IRR? Your response should be in your own words.

4.What are the five key ways free cash flow is used? How does this relate to an organization s financial plan?

5.If you were the CEO of your organization and were faced with a cash-rich scenario, would you use the cash to issue dividends or buy back stock? What impact would your decision have on earnings per share? Justify and defend your choice with sound reasoning. Your answer should be in your own words.

6.What are the key strengths and weaknesses of the Net Present Value method of assessing capital projects? Your answer should be in your own words.

7.What are the three elements of the Weighted Average Cost of Capital formula? Which of the elements are impacted by taxes? Your answer should be in your own words.

8.How do privately owned firms and small businesses go about estimating their weighted average cost of capital? Your response should be in your own words.

9.What are the three basic steps to creating a set of projected financial statements? Why is this process not as simple as it sounds? Your answer should be in your own words.

10.What is sensitivity analysis and what role does it play in the capital budgeting process? Your answer should be in your own words

potential growth and opportunity

mangement_690

Just in case i have posted the question again. Objectives- Demonstrate the ability to analyze emerging global marketplace for potential growth and opportunity.

Assignment details

Mike, one of the marketing strategists on your team, stops at your office door wanting to talk. “We use fabrics that are made domestically; however, there are issues with using these same fabrics globally. There are laws and regulations that prevent us from shipping these fabrics to other countries. This is a huge concern. One of our primary selling points is the consistency of quality of our product.”

You confirm Mike’s concern, “That’s an excellent point,” you say. “Now you’ve just given yourself and our team more work for the presentation. I’m sure that will come up. One of the board members used to run a textile plant in China.”

Mike nods his head in agreement. “I imagine textiles will not be the only resource concern,” he says.

Consider the following in your response:

Why should resources be a concern in a global strategy?

What resources may be a concern in the country you selected?

How will this impact the decision to move to the country that you selected?

How will this impact your competitive strategy in your global market?

 

manager’s mindset and a leader’s mindset

This week, we look at leadership from the manager’s perspective and explore the differences from looking at leadership from a leader’s perspective.  Managers focus on process, procedure, and implementation of the organization’s purpose.  A manager’s perspective is about getting the job done and keeping stability.  The leader’s mindset is about change and moving workers toward the organization’s vision.  The area of overlap comes in terms of the need to use “soft or people skills” to get their job done.  It is said that a manager motivates while a leader empowers.  In the following five quotes each leader is commenting on the perspective of a manager in an organization as opposed to a leader.

•Define the difference between a manager’s mindset and a leader’s mindset. •Using the readings for the week, reflect and explain the meaning of each quote.  and how each quote relates to a manager’s or leader’s mindset.

“Management is doing things right; leadership is doing the right things.”  – Peter Drucker

“Leadership is working with goals and vision; management is working with objectives.”  – Russell Honore

“When a management with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact.”  – Warren Buffett

“Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them.”  – Paul Hawken

“Management is nothing more than motivating other people.”  – Lee Iacocca