BUSINESS ANALYSIS REPORT
Introduction
After completing the business simulation at a competent level (a score above 0.000 for the cumulative total performance at the end of Q6), you will create a written report, using the attached “Business Analysis Template,” for stockholders and the board of directors to review. Analyze the decisions throughout the simulation and evaluate the current state of the business.
Requirements
Microsoft Files Note:
Write your paper in Microsoft Word (.doc or .docx) unless another Microsoft product, or pdf, is specified in the task directions. Tasks may not be submitted as cloud links, such as links to Google Docs, Google Slides, OneDrive, etc. All supporting documentation, such as screenshots and proof of experience, should be collected in a pdf file and submitted separately from the main file. For more information, please see Computer System and Technology Requirements.
A. Using the attached “Business Analysis Template,” create a written report for the board of directors and stockholders which includes all of the following components:
Reflection on Decision Making
1. Reflect on the relationship between the corporate strategic thrusts selected during the simulation and the business decisions made by your company by doing the following:
a. Choose four of the selected strategic thrusts and identify one specific business decision that was influenced by each thrust, for a total of four distinct business decisions. Explain how each decision was influenced by its corresponding strategic thrust.
Note: The corporate strategic thrusts can be found in the simulation in Q6>Strategic Planning>Goals and Strategy, in the Strategic Thrusts section.
2. Reflect on the positive and negative impacts of your business decisions on your company by doing the following:
a. Explain how two business decisions were beneficial for your company. Include specific examples of benefits that resulted from your decisions.
b. Discuss two business decisions that you would change, why you would make each change, and what you would do differently, including specific details from the simulation.
Note: Support for your reflection may include clearly labeled graphs and other data, including indication of the time period(s). The decisions discussed in part A2 do not need to be the same as the decisions addressed in part A1.
Valuation and Return on Investment (ROI)
3. Discuss your company’s valuation and estimated return on investment (ROI) by doing the following:
a. Calculate your company’s valuation. Include each of the following in your response:
• an explanation of the chosen valuation methodology
• the calculation used to arrive at the valuation
• rationale for any assumption used in your calculation
• the financial data you used in your valuation
Note: Instructions for calculating valuation can be found in the course under “Preparing for Task 2.” Financial data such as the Q6 income statement or balance sheet can be exported from Q7 of the simulation or copy and pasted directly into the “Business Analysis” template.
b. Using the valuation calculated in part A3a, calculate your company’s estimated ROI. Include the calculation used to arrive at your estimate.
c. Explain the implications for investors of the ROI estimated in part A3b.
Overall Financial Performance
4. Analyze the overall financial performance of the business using the financial reports from the simulation by doing the following:
a. Choose one metric from each of the following ratio categories. For each ratio, analyze what the Q6 ratio numbers indicate about the company. Include industry performance measures for each metric.
• liquidity ratios
• activity ratios
• leverage ratios
• profitability ratios
Note: Industry performance measures can be found within the Industry Financial Ratios tab within the simulation. The Q6 ratio numbers are located on the Q7 tab.
b. Provide relevant cash flow activity numbers, including the Q6 totals, and explain what they indicate for the company for each of the following categories:
• cash balances (the top and bottom lines of the cash flow statement)
• cash flow from operating activities
• cash flow from investing activities
• cash flow from financing activities
c. Explain what the cash flow activities provided in part A4b reveal about the overall health of your company.
d. Explain how three decisions that you made and are shown on your conscious scorecard affected the company’s performance.
B. Export the following Q6 reports from the simulation and submit them as attachments:
• the cumulative balance scorecard with an overall positive cumulative total performance score
• the conscious scorecard report
• income statement, balance sheet, and cash flow statement
C. Acknowledge sources, using in-text citations and references, for content that is quoted, paraphrased, or summarized.
D. Demonstrate professional communication in the content and presentation of your submission.