strategic-management

CHAPTER 8 • IMPLEMENTING STRATEGIES: MARKETING, FINANCE/ACCOUNTING, R&D, AND MIS ISSUES 283
Step 2 Compute McDonald’s current ratio, debt-to-equity ratio, and return-on-investment ratio
for 2008 and 2009. How do your 2010 projected ratios compare to the 2008 and 2009
ratios? Why is it important to make this comparison? Use http://finance.yahoo.com to
obtain 2009 financial statements.
Step 3 Bring your projected statements to class, and discuss any problems or questions you
encountered.
Step 4 Compare your projected statements to the statements of other students. What major
differences exist between your analysis and the work of other students?
Assurance of Learning Exercise 8D
Determining the Cash Value of McDonald’s
Purpose
It is simply good business practice to periodically determine the financial worth or cash value
of your company. This exercise gives you practice determining the total worth of a company
using several methods. Use year-end 2008 data as given in the Cohesion Case on pages 31–32.
Instructions
Step 1 Calculate the financial worth of McDonald’s based on four methods: (1) the net worth or
stockholders’ equity, (2) the future value of McDonald’s earnings, (3) the price-earnings
ratio, and (4) the outstanding shares method.
Step 2 In a dollar amount, how much is McDonald’s worth?
Step 3 Compare your analyses and conclusions with those of other students.
Assurance of Learning Exercise 8E
Developing a Product-Positioning Map for My University
Purpose
The purpose of this exercise is to give you practice developing product-positioning maps.
Nonprofit organizations, such as universities, are increasingly using product-positioning
maps to determine effective ways to implement strategies.
Instructions
Step 1 Join with two other people in class to form a group of three.
Step 2 Jointly prepare a product-positioning map that includes your institution and four other
colleges or universities in your state.
Step 3 At the chalkboard, diagram your product-positioning map.
Step 4 Discuss differences among the maps diagrammed on the board.
Assurance of Learning Exercise 8F
Do Banks Require Projected Financial Statements?
Purpose
The purpose of this exercise is to explore the practical importance and use of projected
financial statements in the banking business.
Instructions
Contact two local bankers by phone and seek answers to the questions that follow. Record
the answers you receive, and report your findings to the class.
1. Does your bank require projected financial statements as part of a business loan application?
2. How does your bank use projected financial statements when they are part of a business loan
application?
3. What special advice do you give potential business borrowers in preparing projected financial
statements?