discuss the incremental impact of a hypothetical, but reasonable, simple new investment project.

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Business Finance

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  1. Based on your knowledge of this organization, what is a likely investment it would consider and why? Be sure to describe the basic features of the investment as a foundation for considering its potential financial impact.
  2. Evaluate the approximate costs and benefits of the investment you identified, explaining how these would affect your spreadsheet projections and business decisions. Estimates are sufficient, but should be grounded in common sense and insight into the organization.
  3. How does the potential investment affect budgeting and related business decisions? For example, does the investment involve significant cash spending this coming year, followed by benefits in the following year? How might that affect short-term and long-term spending priorities? Does the benefit outweigh the cost?

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MBA 520 Milestone Three Guidelines and Rubric By now you have the knowledge of how to evaluate the equity of Starbuck, analyze the market economy’s behavior, and predict Starbucks future behavior through forecasting. Based on this knowledge, you will identify and describe business opportunities that Starbucks should pursue and explain the benefits/costs of these decisions. Prompt: In this section, discuss the incremental impact of a hypothetical, but reasonable, simple new investment project, such as a new product or facility or a cost-cutting investment, as an initial step in thinking about the future. Be sure to address the following: 1. Based on your knowledge of this organization, what is a likely investment it would consider and why? Be sure to describe the basic features of the investment as a foundation for considering its potential financial impact. 2. Evaluate the approximate costs and benefits of the investment you identified, explaining how these would affect your spreadsheet projections and business decisions. Estimates are sufficient, but should be grounded in common sense and insight into the organization. 3. How does the potential investment affect budgeting and related business decisions? For example, does the investment involve significant cash spending this coming year, followed by benefits in the following year? How might that affect short-term and long-term spending priorities? Does the benefit outweigh the cost? Guidelines for Submission: Your Business Opportunities report should be approximately 2–4 pages long (excluding title page, spreadsheets and graphs, and references list). It should be double spaced, with 12point Times New Roman font and one-inch margins, and should use the latest guidelines for APA formatting for references and citations. Please also include your name, course name, and submission date on the title page. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions. Critical Elements Exemplary (100%) Proficient (90%) Needs Improvement (70%) Not Evident (0%) Identifies likely investment to consider and why, Meets “Proficient” Identifies likely describing its basic criteria, and investment to features as a foundation investment consider and why, for considering potential Business identified is describing its basic financial impact, but Opportunities: particularly wellfeatures as a Likely response is cursory or aligned with the foundation for Investment contains inaccuracies or needs, priorities, considering justification for why and goals of the potential financial investment would be of organization impact interest to organization is weak Meets “Proficient” Evaluates Evaluates approximate Business approximate costs costs and benefits of Opportunities: criteria, and Costs and evaluation is based and benefits of investment identified, Benefits on realistic investment explaining how these Value Does not identify likely investment to consider and why, describing its basic 30 features as a foundation for considering potential financial impact Does not evaluate approximate costs and 30 benefits of investment identified, explaining estimates and is especially well aligned with decision-making needs identified, explaining how these would affect spreadsheet projections and business decisions Meets “Proficient” criteria, and Assesses discussion of implications of budgeting potential Business implications is investment for Opportunities: particularly Implications budgeting and nuanced and well related business aligned with decisions decision-making needs Submission is free of errors related to Submission has no citations, grammar, major errors related Articulation of spelling, syntax, and to citations, Response organization and is grammar, spelling, presented in a syntax, or professional and organization easy-to-read format Earned Total would affect spreadsheet projections and business decisions, but evaluation is cursory or contains gaps in accuracy or logic, or links to business decisions are weak how these would affect spreadsheet projections and business decisions Assesses the implications of potential investment for budgeting and related business decisions, but evaluation is cursory or contains inaccuracies Does not assess implications of potential investment 30 for budgeting and related business decisions Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or 10 organization that prevent understanding of ideas 100%
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Explanation & Answer

Attached.

Running Head: Starbuck’s decision on cost cutting investment

The incremental impact of a hypothetical but reasonable and simple investment project of
Starbuck
Institution Affiliation
Name

1

Running Head: Starbuck’s decision on cost cutting investment

1. The investment Starbucks would consider
I think it would be reasonable for the company to consider cost cutting as it investment decision.
This is because recession has continued to drain the company’s sales away from it coffee chain.
Although, according to the company’s CEO, the investors showed positive remarks of the sales
by sending shares of up to $145 to $14.8 in after-hour trading, the company stocks have fallen 22
cents to $13.98. Howard Schultz, the company’s CEO said on a conference that there is a more
work need to be done to boost the com...


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