MAPM8.160 - Brief summary of recent (last 3-4 years) financial and operating performance comparative analysis including a table of comparisons

Overview

This is the second assessment in the MAPM8.160 Strategic Financial Management course. You are asked to prepare a strategic report on a company that you select to critically analyse the capital structure, risk management and portfolio structure of a New Zealand organization and perform a valuation using appropriate methods. The outcome of the strategic report is to present recommended actions to improve the value of the targeted company. This assessment draws mainly on the theories and content found in Modules 5-7 in your course. Please read carefully all the information provided in this document including the marking rubric.

Task Instructions

You are to select a publicly listed company from either New Zealand, Australia, United Kingdom, or the USA and your company selection must be approved by your facilitator who will determine suitability. All information used should be publicly available information from company websites, public databases and online news and analysis reports. The target audience for the report is the CEO and board of the selected company. The aim of the report is to provide an indepth analysis of strategic financial issues and opportunities facing the company and recommend actions to improve company value. Specifically, the report must include the following sections:

1. Company Introduction/Background

a. Overview of operations, ownership structure, operating divisions, products/services and other important information

b. Brief summary of recent (last 3-4 years) financial and operating performance comparative analysis including a table of comparisons

2. Portfolio Structure Review

a. Critically evaluate the organization`s current portfolio of businesses and activities in terms of their strategic fit and value

b. Critically evaluate any opportunities to make changes to existing or future business units or activities based on strategic fit and value (consider mergers, acquisitions, divestitures and restructuring)

c. Recommend a Strategic Portfolio strategy for the next 3-5 years

3. Capital Structure Review 

a. Critically evaluate strengths and weaknesses of the current capital structure

b. Critically evaluate the fit between capital structure and the strategy and operations of the company

c. Recommend 2-3 specific actions to improve performance over the next 2 years 4.

4. Risk Management Revie

a. Critically evaluate key areas of risk for the organization including strategic, operational and treasury/liquidity risks

b. Recommend 2-3 specific actions to manage or change the overall risk exposure of the company over the next 2 years

5. Valuation Review 

a. Calculate the value of the company using three valuation approaches - DCF, net assets and multiples. Support your valuation with evidence of your methodology, data sources and calculations.

b. Critically Analyse and discuss your results of your valuations

c. Critically assess the impact on the company valuation of at least 3 valuation drivers over the next 3-5 years

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