Advanced managerial and cost accounting

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Business Finance

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Company Expansion - International

Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The company is currently operating at capacity so additional equipment will be required to complete the expansion. Utilize discounted cash flow techniques in your capital budget proposal. Using the current company financial information as a base for your forecast, create a proposal for the firm to expand its operations. This proposal should incorporate a CVP analysis, balanced scorecard, complete budgeted financial statements (i.e., income statement, balance sheet, and statement of cash flows) with supporting schedules, as well as a discussion of constraint theory and its importance in this decision-making process.

The Paper should be eight to ten pages in length (not including the title page, reference page, and any supporting financial statements).

  • Must be eight to ten double-spaced pages in length (not including the title page, reference page, and any supporting financial statements) and formatted according to APA style as outlined in the Ashford Writing Center.
  • Must include a title page with the following:
    • Title of paper
    • Student’s name
    • Course name and number
    • Instructor’s name
    • Date submitted
  • Must begin with an introductory paragraph that has a succinct thesis statement.
  • Must address the topic of the paper with critical thought.
  • Must end with a conclusion that reaffirms your thesis.
  • Must use at least two scholarly sources from the Ashford University Library, in addition to textbook.
  • Must document all sources in APA style, as outlined in the Ashford Writing Center.
  • Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

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Explanation & Answer

There you go buddy...

Running head: FIRMS EXPANSION INTERNATIONALY

Firms Expansion Internationally
Name
Institution Affiliation
Instructor’s Name
Date Submitted

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FIRMS EXPANSION INTERNATIONALY

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Introduction
Domestic manufacturing operations mean doing production for local use within the
country but not internationally. In this case, the company producing local is the American
Intermodal Container Manufacturing Company also known as (AICM) which does the domestic
manufacturing to ensure that there is an availability of local container which provides better and
safe transport. It makes a 53-foot container, and its location is in North America. Global market
means going international and sales the company’s product there. In this case, the company
started in 2012, and it has not yet done its business internationally (Dehghan, et al. 2014).
In the recent days, the management is willing to take the business internationally in a way
that it wants to start manufacturing the containers globally and increase its production. Container
are the crucial aspect in any country as each and every nation needs to transport products and
services from one region to another hence the firm will be of help. The company is in a position
to produce around 15,000 containers at a once (Hoffman, et al. 2016).
The fact that the business wishes to expand globally it will need to increase its production
and the machine to have the necessary product to fit in the market. It comes as an opportunity to
go globally, and at the same time, it’s a challenge also. The importance of the AICM going
global is that it maintains to cost of production hence leading to an increase in profit. Also, it
enables a firm to avoid depending on one market and focus on different potential customer
internationally. It is an important aspect also in ensuring creativity and innovations are of high
class to fit in the competitive market and also by providing quality product are in the market
(Coe, et al. 2014).
Discounted Cash Flow Techniques in Capital Budget Proposal

FIRMS EXPANSION INTERNATIONALY

3

The capital budget proposal can be said to be the decision which a company makes to
know if the project is worth taking. The issue of buying new machinery like in this case AICM
will need to purchase the new machine for the expansion of production if it is worthy. It shows if
the project is long term, the good return should result from the firm as a result of development. In
this case, there is the minimum expected return which should be higher that what the company
was receiving in domestic operation (Coe, et al. 2014).
By utilizing the discounted cash flow in the capital budgeting, it will assist in making the
decision about the future and ensure that the proper strategies are in place. In this case, the
capital budgeting will involve some process to be in use in the...


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