ECON616-1304B-04 Class Applied Managerial Economics Phase 4 DQ and IP Week 4 SWOT Analysis & NPV
ECON616-1304B-04 Class Applied Managerial Economics ECON616-1304B-04 Phase 4 DQ and IP Week 4 Applied Managerial Economics Phase 4, SWOT Analysis & NPV Phase 4 - Task 1 Task Type: Discussion Board Deliverable Length: Primary Task: 600–800 words; Reminder: Initial Discussion Board posts due by Wednesday Students will be expected to post their first initial discussion board posting by Wednesday of each week. Discussion posts will be graded and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time. Primary Task Response: Respond to the following scenario with your thoughts, ideas, and comments. Be substantive and clear, and use research to reinforce your ideas. Now is the time to make a decision about relocating the manufacturing operation to the United States is fast-approaching. AutoEdge, like most companies, uses a strengths, weaknesses, opportunities, and threat (SWOT) analysis to facilitate its decision making. You have just completed your first monthly activity report for the board when Lester calls. "Hi," you say. "I just finished my monthly report for the board. I'll e-mail it to you when we get done talking." "Sounds good," he says. "I'm calling because we need your expertise again for another facet of our investigation into the manufacturing operation. This time, I want you to conduct a detailed SWOT analysis for AutoEdge, and provide a brief summary of your analysis." "I was expecting this," you say. "Some of the research I've done over the past 4 weeks will be useful as I put this analysis together for you." "Yes, I thought you were in a good position to do this work," he says. "Your analysis may be different from other people who have been at the company longer, but your fresh perspective on the components will be helpful in moving the debate forward." "That's a good point," you say. "I'll keep that in mind as I go through the information." Phase 4 - Task 2 Task Type: Individual Project Deliverable Length: Completion of Excel Spreadsheet & 500 words Key Assignment Draft Over lunch, you and Lester meet to discuss your next assignment. "The board of directors has been working on the cost and benefits of various expansion options," he says. "We have developed the numbers for one scenario in this spreadsheet, and we want you to review it," he says handing it to you. "So you're looking for me to use present value analysis to discount the cash flows," you say. "Should I include the calculations for net income, operating cash flows, free cash flows, and the present value cash flows and net present value (NPV) in the spreadsheet?" "Yes," he says. "We want to know if the project has a positive or negative NPV. Also, in 500 words or less, explain the implications for AutoEdge and its shareholders if there is a positive NPV or, conversely, if there is a negative NPV." "This will be interesting," you say. "Good," he says. "Oh, and one more thing. In addition to considering the NPV value, we want to know what kind of economic assumptions you think the board should consider. Articulate the economic and political risks with the strategy, and list options to overcome them. How will this decision affect the share price and the value of the company? In light of all this information, would you support the option for expansion abroad or relocate back to the United States? Include an explanation of your response, as well." "I'll get right on it," you say. Please submit your assignment.