MGT660
Week 6 Strategic Plan Part 5: Financials Latest 2017 May
For the Strategic Plan assignment, you will work throughout
the course to create a market entry plan (entrepreneurial), a market expansion
plan for an existing organization, or a mergers and acquisitions plan that
seeks to increase your organization’s competitive advantage.
Complete Part 5 of the Strategic Plan assignment according
to the directions in the Part 5: Financials section of the “Strategic Plan”
resource.
This assignment uses a rubric. Please review the rubric
prior to beginning the assignment to become familiar with the expectations for
successful completion.
Part 5: Financials (Topic 6)
A projected financial statement analysis seeks to forecast
the impact of various implementation decisions. The pro forma financial
statement can be part of the risk analysis of strategic plan. The goal of this
assignment is to ensure your strategic plan is viable financially. In other
words, does it create value for the firm?
Consider the cost structure and revenue streams for your
strategic initiative plan. Research and data collected so far and will likely
change once your product or service is commercialized. Each statement should
address financial components of features, expenses, and sales of your product
or service. It is typical for net income to be negative at this point. Do not
assume that you have sales at this point unless you have sold your product or
service.
Research the following if your plan is entrepreneurial:
Balance sheet
Income statement
Statement of cash flow
Fixed and variable expenses
Startup expenses
Breakeven analysis
Research the following if your plan is a market expansion
plan for an existing organization, or a mergers and acquisitions plan:
Balance sheet
Income statement
Statement of cash flow
Fixed and variable expenses
A projected budget
Breakeven analysis
Complete the “Projected Financial Statement Analysis (Pro
Forma 3-Year Financial Plan)”including the “Questions” tab, “12 Month P&
L” tab, “Year 1” tab, “Year 2 P&L” tab, and “Year 3 P&L” tab.
The first year is monthly and the second and third year are presented
quarterly. Please note the questions in the “Questions” tab may be answered at
different points in completing the Profit and Loss information.
This assignment uses a rubric. Please review the rubric
prior to beginning the assignment to become familiar with the expectations for
successful completion.
