MBA 640 SNHU Business Investment Funding Proposal

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Business Finance

MBA 640

Southern New Hampshire University

MBA

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MBA 640 Final Project Guidelines and Rubric Overview The final project for this course is the creation of an external capital funding proposal. Most businesses face a landscape of uncertainty and a never-ending stream of risks and opportunities. Managers must continually project the likely financial impact of decisions, make recommendations, act on those decisions, determine how to pay for them, and evaluate the costs and effectiveness of what has been done. Many decisions are short-term, routine, and operational. Others are longer-term investment decisions that require substantial new resources, such as developing new services, expanding into new geographic markets, or undertaking business combinations or spin-offs. Each requires managers to forecast, plan, and make decisions based on a thorough understanding of both internal and external factors that can affect a company’s financial success. For the summative assessment in this course, you will bring your finance and economics knowledge to bear by preparing an external capital funding proposal for a major international investment at a publicly traded corporation. In order to secure the support of potential financial backers, your proposal will need to lay out what the proposed investment opportunity is, how it fits within the company’s broader mission and goals, its financial impact, and the amount being requested and why (including alternative funding mechanisms considered). In addition, it will also need to include information on the organization’s context, risk factors, and microeconomic assumptions that could affect the success of the investment. The project is divided into three milestones prior to the final submission, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Four, Six, and Seven. The final submission will occur in Module Nine. In this assignment, you will demonstrate your mastery of the following course outcomes:       Assess the global microeconomic environment for determining the driving factors that affect business financial decisions Develop financial models that project the impact of different business scenarios on financial performance and business planning Assess decision alternatives by using time value of money (TVM) and other appropriate financial metrics Evaluate the potential impact of internal and external qualitative factors on business activities for supporting strategic financial decisions Weigh internal and external funding alternatives for carrying out investment decisions Construct persuasive, evidence-based arguments that incorporate legal and ethical behavior and sound financial analysis for soliciting external business funding Prompt Imagine you are a manager working at a publicly traded company. (You will select a company from the list below.) You have been tasked with preparing an investment proposal for a large bank loan to finance a major expansion into another country. Your funding request will include both narrative text and financial models designed to clearly explain and justify the investment proposal, how it will be financed, and its likely impact on the company. As support, you will show the proposal’s most likely financial implications and the consolidated financial projection with and without the project. You should also consider risks—including global microeconomic factors outside the company that may affect the investment’s success in the targeted country—and describe alternative financial scenarios should sales exceed or underperform your assumptions. Your funding request should be well organized, clear, concise, and free of distracting errors. Because business executives seldom have perfect or complete information, you should base your proposal on data from authoritative sources when possible and make reasonable assumptions where information is not available. As in real life, however, you must clearly specify your assumptions. To begin, choose one of the following publicly traded companies. Once you have chosen your company, you will determine the investment opportunity for which you are seeking funding as well as the country into which your company will be expanding: 1. Alteryx 2. L.S. Starrett Company 3. Nordstrom, Inc. Specifically, the following critical elements must be addressed: I. Executive Summary: Briefly summarize the key points of your proposal, giving the loan committee the most essential information while convincing them to read further. Remember this is the first, and sometimes the only, section a selection committee will read in an initial screening. II. Investment Project: Use this section to describe the investment for which you are seeking funding, its costs, and time frame. Specifically, you should: A. Describe the investment project. Be sure to provide sufficient detail to give the loan committee a firm sense of the parameters of the activity, the need for it, and what financial metrics are relevant for determining success. In other words, what do you propose to do, where, what marketplace need will it fill, and how will you measure success? B. Specify the resources the project will require and where these resources will come from. In addition to noting the amount of the loan you are requesting, you should also consider human resources, facilities, government approvals, intellectual property, access to natural resources, and other resources that might be required to carry out the project. C. Time frame. When will the project start, what is the anticipated economic life of the proposed expansion, and how will you decide if, when, or how to exit? Justify your choices with appropriate financial metrics. III. Justification: In this section, you should analyze the impact of the investment proposal on your business. In particular, you should cover: A. Why is now a good time for this investment given the global context? Justify your response, citing specific external factors such as trade regulations, foreign currency considerations, or trends in foreign direct investment that might affect business financial decisions. B. Strategic fit. Use this section to discuss why the investment proposal makes sense for your company strategically. Specifically: 1. How does the investment align with the company’s organizational and financial priorities? Support your argument with evidence from company reports and financial statement analysis designed to persuade the lender that the investment is a good strategic fit for your company. 2. How does the project fit within the global microeconomic environment? Support your response with evidence. For example, would the expansion tap unmet demand for the company’s key products or services or fill a new niche? How do you know? 3. How does the project build on the organization’s core competencies and comparative advantage? For example, does the company have a strategic advantage in regards to intellectual property, regional expertise, suppliers, or organizational structure? C. Financial impact. This section should discuss the project’s most likely financial implications and the consolidated financial projection with and without the project. Be sure to: 1. Project the incremental, annual, and cumulative cash benefits and outflows associated with the proposed expansion for the next seven to 10 years, using a spreadsheet or other relevant presentation vehicle to support your narrative. Be sure to justify your assumptions and methodology based on sound microeconomic and financial principles. For example, what assumptions have you made about demand, price, volume, capital purchase costs, incremental hiring, and so on? 2. Develop a consolidated financial projection of revenue, pretax income, and cash flow for the overall business, over that same number of years, both with and without the proposed investment. Use a spreadsheet or other relevant presentation vehicle to support your narrative, being sure to describe any relevant assumptions. IV. Risks: Use this section to discuss any risks that might affect the success of the project and how you have planned for those contingencies. In particular: A. Internal. What are the company’s most significant internal risks and opportunities related to the project? How might they affect your financial estimates and how will you address them? Support your response with specific examples. B. External. How will you address significant qualitative risks outside the company that might affect project success? Give specific examples. For example, how might culture or politics in the target country affect the proposed investment’s financial success? Natural disasters? How have you planned for these risks? C. Microeconomic. Assess the microeconomic factors that might affect decisions about the proposed investment. Support your response with specific examples. For example, how competitive is the market you will be entering? How elastic is the price for your product or service? D. Alternate financial scenarios. Use this section to discuss the sensitivity of your financial projections to different scenarios. Be sure to address: 1. How would your projected financial performance change if sales fall 20% short of or are 20% higher than your base assumption? What does your analysis of these two scenarios imply for the proposed investment? Justify your response. 2. What do the net present value, internal rate of return, and payback values from your base scenario and the sales variation scenarios above imply for the proposed investment? Be sure to explain how the time value of money affects your calculations and analysis. V. Financing: In this section, compare the proposed loan to alternative financing methods. Specifically: A. Weigh the pros and cons of raising money using internal financing mechanisms versus seeking funding through global capital markets via loans, commercial paper, bonds, or equity financing. Which might be viable alternatives should the loan not be approved? Support your answer with appropriate research and evidence. B. Assess the viability of a business combination as a mechanism for expanding into the new market. Is this a reasonable option for the company? Why or why not? Support your answer with appropriate research and evidence. VI. Track Record: Use this section to persuade the lender that you are credit-worthy. You must: A. Convincingly argue that your organization is on solid financial footing, and thus at a low risk for default, supporting your argument recent with appropriate financial statements, ratios, and other indicators of financial performance and health. B. Convincingly argue for your organization’s trustworthiness, providing credible evidence of legal and ethical financial behavior. For example, this might include recent audit results; credit history; absence of significant lawsuits, recalls, or regulatory judgments; or other evidence designed to show that the company holds itself to the highest legal and ethical standards. VII. Questions and Answers: End your proposal by constructing a persuasive, evidence-based question-and-answer section that addresses additional financial questions you think the loan committee might ask, including legal and ethical concerns and why the loan would be attractive to the bank. Milestones Milestone One: Investment Project and Justification (Parts A and B) In Module Four, you will submit a draft of Section II (Investment Project) and Section III (Justification), Parts A and B only, of the final project. Submit 8-10 pages of narrative, building on the narrative you began in the Module Three executive memo short paper. Include references to past financial results, growth rates, and other financial ratios as exhibited in the spreadsheet you created in Module Two, and end with appropriate reference citations. This milestone is graded with the Milestone One Rubric. Milestone Two: Risks In Module Six, you will submit a draft of Section IV (Risks) of the final project. Analyze internal and external risks and discuss how they might affect your financial estimates and how you might plan for such risks. You will assess the microeconomic factors that affect decisions about the proposed investment, and you will analyze alternative financial scenarios. This milestone is graded with the Milestone Two Rubric. Milestone Three: Justification (Part C), Financing, and Track Record In Module Seven you will submit a draft of Section III Part C (Justification), Section V (Financing), and Section VI (Track Record) of the final project. You will discuss the project’s most likely financial implications and the consolidated financial projection with and without the project; compare the proposed loan to alternative financing methods by weighing the pros and cons of raising money internally versus seeking funding through global capital markets; and assess the viability of a business combination as a mechanism for expanding into the new market. You will also use this section to persuade the lender that your company is creditworthy by presenting appropriate financial information and by providing evidence of your company’s legal and ethical behavior. This milestone is graded with the Milestone Three Rubric. Final Submission: External Capital Funding Proposal In Module Nine, you will write Section I (Executive Summary) and Section VII (Questions and Answers) of your final project and submit your final external capital funding proposal. It should be a complete, polished artifact containing all of the critical elements of the final project. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded using the Final Project Rubric (below). Deliverables Milestone Deliverable One Investment Project and Justification (Parts A and B) Two Risks Three Module Due Grading Four Graded separately; Milestone One Rubric Six Graded separately; Milestone Two Rubric Justification (Part C), Financing, and Track Record Seven Graded separately; Milestone Three Rubric Final Submission: External Capital Funding Proposal Nine Graded separately; Final Project Rubric (below) Final Project Rubric Guidelines for Submission: Your Investment Funding Proposal should be approximately 15-20 pages in length (excluding title page, table of contents, spreadsheets and other exhibits, and list of references). It should be double spaced with 12-point Times New Roman font and one-inch margins. Use APA format for references and citations. Critical Elements Executive Summary Exemplary (100%) Meets “Proficient” criteria and response is especially convincing, engaging, and/or well suited for target audience Proficient (90%) Briefly summarizes the key points of proposal, giving audience the most essential information while convincing them to read further Investment Project: Describe Meets “Proficient” criteria and provides target audience with an especially clear and complete understanding of project and alternatives for evaluating success Describes investment project, providing sufficient detail to give a firm sense of the parameters of activity, market need, and relevant financial metrics for determining success Investment Project: Resources Meets “Proficient” criteria and response is particularly comprehensive and well aligned with needs of expansion project Specifies resources required, including amount of loan and other physical and financial resources, along with where resources will come from Investment Project: Time Frame Meets “Proficient” criteria and suggested time frame and metrics are especially appropriate given diverse alternatives and needs of specific project Determines when project will start, anticipated economic life, and exit process, justifying choices with appropriate financial metrics Needs Improvement (70%) Summarizes key points of proposal, but summary is lengthy, omits essential information, contains inaccuracies, or does not induce the audience to read further Describes investment project, but description lacks detail, contains inaccuracies, or omits key information on parameters, market need, and relevant financial metrics for determining success Specifies resources required, including amount of loan requested, other physical and financial resources, and where resources will come from, but response contains inaccuracies or omits key details Determines when project will start, anticipated economic life, and exit process, justifying choices with financial metrics, but response contains inaccuracies, omits key details, or financial metrics are not appropriate Not Evident (0%) Does not summarize key points of proposal Value 2 Does not describe investment project, providing sufficient detail to give a firm sense of the parameters of activity, market need, and relevant financial metrics for determining success 5.33 Does not specify resources required 5.33 Does not determine when project will start, anticipated economic life, and exit process, justifying choices with financial metrics 5.33 Justification: Why Now Meets “Proficient” criteria and demonstrates especially keen insight into the range of external factors that might impact global business activities and how they would do so Evaluates why now is a good time for this investment in the global context, citing specific external factors that might affect business financial decisions in justifying response Justification: Strategic Meets “Proficient” criteria and Fit: Priorities response is particularly insightful and well suited for convincing target audience to grant funding request Persuasively argues how the investment aligns with the company’s organizational and financial priorities, supported by evidence from company reports and financial statement analysis Justification: Strategic Meets “Proficient” criteria and Fit: Microeconomic demonstrates especially strong insight into which microeconomic factors are most relevant in determining strategic fit Assesses how the project fits within the global microeconomic environment, supported by evidence Justification: Strategic Meets “Proficient” criteria and Fit: Comparative response is especially nuanced Advantage and well-aligned with strategic needs of project Evaluates how project builds on organization’s core competencies and comparative advantage in explaining why the project makes sense strategically Justification: Financial Meets “Proficient” criteria and Impact: Expansion response demonstrates a nuanced understanding of the microeconomic and financial principles that underlie business projections Projects expansion’s incremental, annual, and cumulative cash benefits and outflows over specified time period, using relevant presentation vehicle to support narrative and justifying assumptions and methodology based on sound microeconomic and financial principles Evaluates why now is a good time for this investment in the global context, citing specific external factors, but response contains inaccuracies, omits key details, or links to business financial decisions are tenuous Argues how the investment aligns with the company’s organizational and financial priorities, supported by evidence, but argument is cursory, illogical, contains inaccuracies, or is poorly supported by evidence and sound financial analysis Assesses how the project fits within the global microeconomic environment, supported by evidence, but response is cursory, poorly supported, contains inaccuracies, or links between microeconomic factors and project are tenuous Evaluates how project builds on organization’s core competencies and comparative advantage in explaining why the project makes sense, but response is cursory, contains inaccuracies or is only tangentially related to strategic fit Projects cash benefits and outflows over specified time period, using relevant presentation vehicle and justifying assumptions and methodology, but response contains inaccuracies, omits key details, or is poorly grounded in microeconomic and financial principles Does not evaluate why now is a good time for this investment in the global context, citing specific external factors that might affect business financial decisions in justifying response 5.33 Does not argue how the investment aligns with the company’s organizational and financial priorities, supported by evidence from company reports and financial statement analysis 4 Does not assess how the project fits within the global microeconomic environment 5.34 Does not evaluate how project builds on organization’s core competencies and comparative advantage 5.33 Does not project expansion’s incremental, annual, and cumulative cash benefits and outflows over specified time period 5.33 Justification: Financial Meets “Proficient” criteria and Impact: Consolidated projections demonstrate especially keen insight into the short and longer-term financial impact of the expansion on the company’s overall performance Risks: Internal Risks: External Risks: Microeconomic Develops consolidated financial projection for overall business with and without the proposed investment over specified time period, using relevant presentation vehicle to support narrative and describing relevant assumptions Develops consolidated financial projection for overall business with and without the proposed investment over specified time period, using relevant presentation vehicle and describing assumptions, but response contains inaccuracies or omits key details Meets “Proficient” criteria and Projects how company’s most Projects how company’s most demonstrates especially keen significant internal risks and significant internal risks and insight into the links between opportunities might affect opportunities might affect internal risks and opportunities, financial estimates and how they financial estimates and how they financial projections, and planning will be addressed, supported by will be addressed, supported by for business expansion specific examples specific examples, but response contains inaccuracies, omits key details, or links between projections and planning are tenuous Meets “Proficient” criteria and Evaluates how significant external, Evaluates how significant external, demonstrates particularly keen non-financial risks that might non-financial risks that might insight into how external risks affect project success will be affect project success will be affect project success and addressed, giving specific addressed, giving specific financial decisions examples examples, but response contains inaccuracies, omits key details, or examples are not relevant Meets “Proficient” criteria and Assesses the microeconomic Assesses the microeconomic assessment is especially is factors that might affect decisions factors that might affect decisions especially nuanced and well about the proposed investment, about the proposed investment, aligned with strategic needs of supported by specific examples supported by specific examples, project but response contains inaccuracies, omits key details, or examples are not relevant Does not develop consolidated financial projection for overall business with and without the proposed investment over specified time period 5.34 Does not project how company’s most significant internal risks and opportunities might affect financial estimates and how they will be addressed 5.33 Does not evaluate how significant external, non-financial risks that might affect project success will be addressed 5.34 Does not assess the microeconomic factors that might affect decisions about the proposed investment 5.33 Risks: Alternate Financial: Sales Fall Meets “Proficient” criteria and discussion of implications for planning and financial performance is particularly nuanced and well supported Risks: Alternate Meets “Proficient” criteria and Financial: Time Value of demonstrates keen insight into Money how diverse scenarios and financial metrics affect project projections and subsequent business decisions Financing: Global Capital Markets Meets “Proficient” criteria and assessment is particularly nuanced and relevant to the specific needs of the expansion Financing: Business Combination Meets “Proficient” criteria and assessment is particularly nuanced and relevant to the specific needs of the expansion Projects how financial performance would change if sales fall 20% short of or are 20% higher than base assumption, including what analysis of two scenarios implies for the proposed investment, justifying response Projects how financial performance would change if sales fall 20% short of or are 20% higher than base assumption, including what analysis implies for the proposed investment, but response contains inaccuracies, omits key details, or is poorly justified Assesses what net present value, Assesses what net present value, internal rate of return, and internal rate of return, and payback values from base and payback values from base and sales variation scenarios imply for sales variation scenarios imply for the proposed investment, the proposed investment, including how time value of including how time value of money affects calculations and money affects calculations and analysis analysis, but response contains inaccuracies or omits key details Weighs pros and cons of raising Weighs pros and cons of internal money using internal financing financing versus global capital versus global capital market market mechanisms, identifying mechanisms, identifying viable viable alternatives based on alternatives based on appropriate research and evidence, but research and evidence response contains inaccuracies, omits key details, or research and evidence are not relevant or cursory Assesses the viability of a business Assesses the viability of a business combination as a mechanism for combination as a mechanism for expanding into the new market, expanding, supported by research supported by appropriate and evidence, but response is research and evidence cursory, contains inaccuracies, or research and evidence are not appropriate Does not project how financial performance would change if sales fall 20% short of or are 20% higher than base assumption 5.33 Does not assess what net present value, internal rate of return, and payback values from base and sales variation scenarios imply for the proposed investment 5.34 Does not weigh pros and cons of raising money using internal financing versus global capital market mechanisms 5.34 Does not assess viability of a business combination as a mechanism for expanding into the new market, supported by research and evidence 5.33 Track Record: Financial Meets “Proficient” criteria and Performance response is particularly insightful and well suited for convincing target audience to grant funding request Track Record: Legal and Meets “Proficient” criteria and Ethical response is particularly insightful and well suited for convincing target audience to grant funding request Questions and Answers Meets “Proficient” criteria and response is particularly insightful and well-suited for convincing target audience to grant funding request Articulation of Response Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format Convincingly argues that organization is on solid financial footing, supported by appropriate financial statements, ratios, and other indicators of financial performance and health Argues that organization is on solid financial footing, supported by financial statements, ratios, and other indicators of financial performance and health, but argument is cursory, contains inaccuracies, or supporting evidence is not credible, appropriate, or convincing for lenders Convincingly argues for Argues for organization’s organization’s trustworthiness, trustworthiness, providing providing credible evidence of evidence of legal and ethical legal and ethical financial behavior financial behavior, but argument is cursory, contains inaccuracies, or evidence is not credible or convincing to lenders Constructs persuasive, evidence- Constructs question and answer based question and answer section that addresses potential section that addresses additional loan committee questions, financial questions loan including legal and ethical committee might ask, including concerns and why loan would be legal and ethical concerns and attractive to bank, but response why the loan would be attractive contains inaccuracies, is not to the bank persuasive, or is not wellgrounded in evidence Submission has no major errors Submission has major errors related to citations, grammar, related to citations, grammar, spelling, syntax, or organization spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not argue that organization is on solid financial footing 4 Does not argue for organization’s trustworthiness 4 Does not construct question and answer section that addresses additional financial questions loan committee might ask 4 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 2 100%
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Running head: INVESTMENT FUNDING PROPOSAL

Investment Funding Proposal
Kenneth StVincent
Southern New Hampshire University

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INVESTMENT FUNDING PROPOSAL

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Alteryx Company: Expansion into Foreign Countries
Alteryx Company is an organization for computer software that is located in Irvine,
California. The organization's end products get utilized in data analytics and data science
(Edupuganty & Madden, 2019). The organization creates software that makes it possible for
advanced analytics to be accessible to data workers. Being the Company that is popular in
intelligent software and business analytics, the Company is positioned at an advantage primarily
because most companies are racing towards getting software that makes the process of data
analytics smooth for speedier solving of problems. The Company will become even more
popular by exploring more opportunities for growth in other countries across the world.
Executive Summary
Alteryx Company is seeking expansion into one of the fast-growing economies in Africa,
which is Nigeria. From the market research conducted, it is clear that the rate at which Nigeria is
growing in terms of the use of technology presents a unique opportunity for the company to
explore foreign markets and enhance their chance of profitability. The Nigerian current state of
the economy provides an opportunity for Alteryx to introduce its software market to new
markets, with a high chance of being able to achieve even more from the expansion into the
counties neighboring Nigeria is all goes well. With the current changes and developments in
technology, the market research in Nigeria's business environment indicates a rising demand for
the latest software technologies in the business, in an effort to achieve a competitive advantage,
has caused companies to look for software products that stand out in the market, and would
enhance the performance of the companies. Introducing a new company and product would
cause curiosity from the businesses who desperately want something that would enhance their
efficiency in the strive for competitive advantage.

INVESTMENT FUNDING PROPOSAL

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With the high rates of profitability that Alteryx achieved at the end of the 2019 financial
year, it is evident that the company is capable of achieving the success they desire if the required
funding. The financial history indicates that no matter the outcome that may happen from
investing in a foreign country, the company will still be able to repay its loan. The loan
committee should therefore be convinced of the eligibility of Alteryx based on the company's
financial history. The investors could also benefit majorly from the investment if things work out
as planned and it also has nothing to if things go south, which is highly unlikely to happen
because the company has created a clear plan on how to handle the issues that may arise and with
the determination to dominate the Nigerian market based on sufficient research it is highly
unlikely that something like that could happen. With annual revenue of $417.9 Million achieved
at the end of the 2019 financial year, it is evident that the company is more than able to pay back
the investors regardless of the outcomes of the project. This proposal is aimed at getting financial
backing to be able to expand the business to another region. The professional team that is
managing this project is one that is highly skilled and with their eyes set on the goals, there is a
high probability that the expansion projects will be a success in Nigeria. Funding the expansion
is therefore a risk worth taking, as it presents a high chance of success than loss.
Investment Project
Description
The investment project for this organization will be the expansion into other countries
that offer a greater opportunity for profitability (Bamiatzi et al., 2016). The project's expansion,
in this case, would be to Nigeria, which has been established to be the highest economy in Africa
with a GDP that is over 300 billion. The fact that Nigeria is ranked to be the most influential
country in Africa means that establishing a business there and making it a success presents a

INVESTMENT FUNDING PROPOSAL

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further possibility of successful expansion into the countries that are its neighbors. Nigeria
practices a mixed economy, promoting economic contributions in foreign and domestic sectors
(Lawal et al., 2017). The marketplace needs that the investment project meets the demand arising
from the high computer literacy among the youths in Nigeria, which makes them curious to
explore the best technologies emerging in the market. As such, Alteryx is likely to achieve a high
profitability rate from the expansion in Nigeria and the neighboring countries. The success of the
investment project will get measured by the rate at which the youth and other business
organizations will be adopting the use of Alteryx software.
Resources
The various resources required for this project's success include human resources like the
IT personnel that will provide training to the individuals and organizations on how to effectively
use the various software technologies. Financial resources are the most essential to aid the
expansion of the business in Nigeria and the countries neighboring them. The government
permits allowing Alteryx to carry out business in Nigeria would be crucial to enable the smooth
functioning of the Company. Apteryx’s total revenue for the year 2019 was approximately
$417.9 Million for its six locations in the United States (Edupuganty & Madden, 2019). This
means that the approximate earnings from each site were approximately 69.65 million USD.
The loan amount that will be sufficient to aid the expansion of Alteryx into Nigeria, for the
opening of the first three shops, the initial investment will be approximately 1.2 million USD for
each. Therefore, the loan amount required for opening the stores, hiring, and acquiring the
necessary resources is about 50 million USD for the achievement of the returns expected from
the investment project. The initial payments of salaries of the employees will be from the cash

INVESTMENT FUNDING PROPOSAL

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reserves, while the expansion into the countries neighboring Nigeria will be funded by the profits
achieved from the initial stores set up in Nigeria.
Time Frame
The investment project will begin in April of 2020 with the initial opening of one store,
which will be intended to establish the people's willingness, especially the youth in Nigeria, to
adopt the new software that has been placed in the market. The opening of one store will be
meant to introduce Alteryx Company to the technology market in Nigeria. This would be an
excellent opportunity to get potential customers to understand what the software is getting
introduced to. This will be the perfect time to start opening the stores, with the three other stores
gradually opening so that by the time people begin gift shopping for the December Holidays, the
stores will be fully operational, which will significantly enhance the sales of their products and
increasing profitability. The holiday season will be the best time to establish promotions that will
attract a larger customer following, drawing them from the other software providers. During the
holidays, the youth tend to pay more attention to acquiring the latest technologies and devices.
With this age of technology, the youth often tend to want to adopt the latest technologies for the
effective functioning of their affairs. Running promotions will therefore be essential in helping
Alteryx gains a competitive advantage over their competitors in Nigeria, offering similar kinds of
technology.
The success measures for this investment project include the profits and revenue that will
be earned from the stores that have been established. The Company will have to establish
strategies that will influence positive buying behavior among the target population of customers,
who are the youth and the business organizations that are interested in software that enhances the
effectiveness of their processes in the effective running of the businesses, seeking to achieve a

INVESTMENT FUNDING PROPOSAL

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high profitability rate, better than their competitors. Success will be measured by gross profit in
the sense that by knowing the rate of profits that Alteryx is making, they will be able to
determine the discount types that they can offer to their customers to achieve customer
satisfaction and thus, retention of its current customers while using it as a strategy to attract new
customers.
The margin of the profits that get made by the organization during the time that they will
be operating in Nigeria will need to be observed despite the challenges that the Company may
face, affecting the gross profit rate negatively in comparison to the rates in the United States. An
examination of the performance of the competitors in comparison with the performance of
Alteryx in terms of profitability. In deciding whether to exit the Nigerian market or remain in it,
a period of two years will be enough to provide data that is sufficient. If the profits are not
worthwhile or as planned, they can exit the market and come back later with better strategies and
possibly a new product. Within the two years of carrying out its operations in Nigeria, the
organization will have benchmarked their strong competitors to establish what makes them great.
With this information, the organization should have been able to find ways of outperforming the
competitors or at least being at the same level of performance. If the organization's performance
keeps declining, it should exit the market and explore other markets that have the growth
potential.
Justification
Why now
The development in technology has made a significant transformation to the world, with
many companies focusing on identifying the best technologies for use in improving their
operational activities in business on helping solve the problems in business (Bertini & Lee,

INVESTMENT FUNDING PROPOSAL

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2017). This is because with the fact that technology makes it easier for business practices to be
fast and more effective, organizations have significantly changed their modes of operations, and
with the need to achieve a competitive advantage, they are in constant competition to be the first
to get access to the best technologies as soon as they emerge in the market. Technology has
become the center of most operations in businesses, and as such, Alteryx has to find ways of
creating the best software to stay at the top of the game because every Company wants to be the
best in providing software solutions for the betterment of businesses in their operations.
This is the best time to engage in this investment project in Nigeria because of the fastgrowing adoption of technology by both businesses and individuals seeking to achieve the best
operations. Being the nation that is most influential in Africa, investing in it will definitely have
a significant impact on influencing the nations that border it to engage in adopting the
technology that will be introduced by Alteryx. The fact that there is a great opportunity for
expansion into other countries in Africa makes it the best time to introduce the project before
other companies to take advantage of the opportunity to achieve greater profitability. With
computer literacy expected to grow in a significant way, it is the best way to explore the Nigerian
market so that as the numbers keep growing, the curiosity to explore the internet draws potential
customers towards the best technologies. More businesses are also likely to adopt the use of
technology in their business practices as there will be a ready workforce that is computer literate.
This presents a unique opportunity for Alteryx to be able to gain a customer following from
companies that are just adopting the use of technology in their processes in Nigeria and its
neighbors.
The mixed economy of Nigeria also presents a perfect opportunity for Alteryx to explore
an opportunity to maximize its profits while the economy is still friendly. By the end of the 2019

INVESTMENT FUNDING PROPOSAL

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fiscal year, Alteryx had 417.9 Million US dollars (Edupuganty & Madden, 2019). While it is
important for the Company to ensure that that does not get depleted, which can get achieved by
proper management of finances, their financial position makes it possible for them to offset any
potential losses that may occur from taking the risk of making an investment in a country that is
foreign. The market conditions can, in some cases, be unpredictable, and countries tend to be
cautious about making significant new investments in the business. The opportunity that presents
itself in Nigeria with its current technological, economic, and social state is a rare one, and worth
the investment risk. Therefore, it is evident that now is the best time to make an investment in
Nigeria as the current conditions present the best opportunity for growth and expansion of their
business.
Another reason for right now is that by implementing the investment project in Nigeria,
the organization, Alteryx can make foreign investment an incentive for them to continue
conducting their business practices in Nigeria. For a company that is large like Alteryx, opening
their operations in countries in Africa could be a significant accomplishment, adding to their
participation in Corporate Social Responsibility by providing opportunities for the unemployed
population of the Africans in the various states that their operations will be set (Manasakis et al.,
2018). The organization will be able to fulfill its duty to society by contributing to the economic
development of the countries in which they will make their investment as well as the
improvement of the lives of the people in those countries. With this, they can be able to negotiate
for incentives like breaks in taxes, increasing the chances of success for the expansion of their
investment more likely to happen. The current regulations concerning foreign trade in Nigeria
are friendly, and for a big company like Alteryx, there is room for negotiation with the host
country based on the benefits that the business would bring to the country economically.

INVESTMENT FUNDING PROPOSAL

9

Strategic Fit
Concerning the financial and organizational priorities of Alteryx Company, it has a core
competency of ensuring that the analysts for businesses are empowered to be able to answer the
questions that are related to business in a simpler and faster way. The significant developments
in the platform for Alteryx indicate how it is bringing data in an environment that is centralized
to deliver a collaborative and governed for users to access data that is the most relevant that they
need for their analysis (Beth, 2017). Strategically, this proposal for investment makes sense
because the Company will be positioning itself strategically in a market that has a variety of
opportunities and promises to be able to gain popularity on a global scale. This is because the
expansion in Nigeria places the Company at a position whereby the investment has been
established to possibly lead to further growth and expansion when the need arises. In this case,
the expansion into Nigeria and establishing the business there provides an opportunity for the
Company to use Nigeria's influential nature to other countries in Africa to gain more customers
and keep expanding to the other countries, choosing Nigeria as a country in which the investment
project was to be done was a strategic plan created based on the possibilities for profitability that
have been estimated and established through the market research that6 was conducted before
Alteryx Company chose to engage in the investment project.
With the growth in technology and the changes in the operational environment of most
businesses, Alteryx Company was able to realize how their latest technologies can be used across
the world to improve lives and the operations of companies. In Nigeria, the various industries
that exist are the reason for their high GDP and economic growth, attracting a high investment
rate. The companies that exist are often competing in their business practices, with each wanting
to be the leader in the region. By establishing an investment project in Nigeria, Alteryx Company

INVESTMENT FUNDING PROPOSAL

10

will be surrounded by potential clients that all want their practices in business to be better than
the others. As such, the Company will be faced with several choices and opportunities for
business in enhancing ad upgrading the data systems that get used in business practices for the
various companies to increase their performance and achieve the best possible outcomes in their
daily activities.
Financial impact

INVESTMENT FUNDING PROPOSAL

11

The first observation from the cashflow projections is on increased revenues over the
years. The company expects to have its revenues go up over a significant period. The payment
going up may be attributed to the fact that it expects to set up additional storefronts in various
regions. With increased stores, then the company will also experience increased sales volumes.
The other projection made from the cashflow statement points out that the operating expenses
will increase over the seven years, as highlighted below. Due to the increased number of stores,
the company will deem it fit to employ more storekeepers. More workers translate to additional
wages, and salaries vote heads. Additionally, more personnel such as human resources and the
marketing ones will be needed to complete the said projects. The reason for more staff is to
enhance swift service delivery based and ensure company efficiency on a day to day basis.
The other analogy worth considering is that the operating income will increase by 0.01%
in 2022—the rationale is that the company seeks to set up a new storefront. With the additional
stores, the organization is expected to experience significant growth in the year 2022.
Additionally, the trend continues since the company is also expected to grow its operating
income in 2023. The percentage of growth experienced here is higher, at about 5%. It shows the
seriousness with which the expansion plans turn out and how significant this would be.
Therefore, we expect that revenues will grow from 168,954,928.00 in 2021 to 171,311,067.00
in 2022 and then to 174,333,101 in 2023. These increases show the level of significance and
growth rate seen and experienced by the operational efficiencies and projected growth patterns in
the said cash flow statements (Davidson, 2019).
On the other hand, there is an aspect that deals with an expanded growth level regarding
operating expenses. The expenses grow to about 8% per annum due to several reasons. As
explained, with the expanded operations, it is prudent to guarantee an expansion in the operating

INVESTMENT FUNDING PROPOSAL

12

expenses to cover the new store locations' infrastructural developments and come up with
significant ties around the whole performance levels and decision-making attributes for that
matter. In the end, the following idea seeks to guarantee positive impacts that ensure expansion
does not meet deficiencies and inability to cope with the said activities and investigations.
The product's demand will slowly pick up before jumping to significant and record
figures by 2026. So, the jump can be attributed to several things. Also, the slow demand for the
product can be explained in several ways. The slow but steady growth can be linked to the fact
that despite the growth levels, in the beginning, new products don't convince and unable to match
consumer needs. However, with an expanded operating cost such as personnel and marketing,
the demand will go up significantly since the company will have demonstrated its ability to cope
with the challenging aspects of the market operations and articulations. The expanded growth
can be seen when examining the performance in 2026. In 2020, the operating income stood at
165,921,854. This represented a smaller percentage growth, which expanded to 190,008,001 in
2026. It shows that with increased efficiencies, then revenues go up. Also, there is the fact that
the demand is affected by the level of expenditure since, in the service industry, one has to spend
for them to earn a living (O’Farrell, 2019).
The other factor worth emulating and explaining points to the price factor between two
nations of trade. The price differences in fluctuating exchange rates can impact how we source
goods. With a fluctuating cost of sales, the business will face an upsurge in its operational costs.
The explanation points to the increased price and exchange rates differentials. In the end, the
company will spend a lot trying to mend things and make things better. For the business model
understudy, this factor does not influence how we exhibit price exchange differentials. For the

INVESTMENT FUNDING PROPOSAL

13

same reason, the growth rates are still on an upward trend, and that the cost of goods is not
affected, as demonstrated in the model.
Another issue at hand looks at the impacts of the capital purchases on the business
operations. Upon establishment, an initial capital expenditure of around $ 25,000,000 will be
required to kickstart the building of the location and acquisition of fixed assets for operations.
The company needs land and construction that will form the site for the business. Moreover,
there is a need for furniture and equipment which will set up our operations. Eventually, the
organization may also need computers, fixtures, and fittings. Machinery helps set up a plant for
setting the whole operations up and guaranteeing the best choice option for the provided
operational efficiencies.
Apart from the above operational efficiencies, it is crucial to underpin the fact that acute
budgeting forms the basis for the set-up and operating costs benefit analysis. For example, there
is a need to weigh the effects...


Anonymous
Excellent resource! Really helped me get the gist of things.

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