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FIN 665 Final Project

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Product Description<br />

The final project for this course is the creation of an Individual Case Analysis. The<br />

primary objective of this project is for students to understand how to analyze the<br />

capital structure of a company. Students will also improve their understanding of<br />

some basic forms of debt financing and learn to formulate strategies in structuring<br />

debt financing. The case will also expose students to the process of debt rating and<br />

its importance. Because of its international setting, the case provides an excellent<br />

opportunity for students to obtain an understanding of international capital markets<br />

and offshore offerings. Students will apply the case method described in this<br />

document. They will define the problem, build an analysis separating the important<br />

facts from the peripheral data, develop alternative courses of action citing advantages<br />

and disadvantages, and make final recommendations on policies that will maximize<br />

value for the business.<br />

Main Elements<br />

Case Method<br />

The case method is an important tool in educating managers by allowing students to<br />

bring to life conceptual material that is often difficult to understand without<br />

application, and aiding in integrating tools and theories students have learned by<br />

applying them to relevant management decisions.


The cases used in this course are a record of issues and problems actually faced by<br />

business executives, with supporting facts, opinions, and financial data that<br />

decisions were based on. These real-life situations are summarized by case writers<br />

who provide you with all of the relevant information that was available to the decision<br />

makers involved. If the information presented seems incomplete, remember that this<br />

only mirrors the business world reality of decision making with limited information.<br />

Obtaining more information costs time and money, resources that are scarce in most<br />

situations.<br />

Each case, like each management situation, is unique. Since there is no one best<br />

procedure for solving problems or making decisions, there are no right or wrong<br />

answers in case analysis. Each class member will approach the case in a different<br />

manner. However, the following procedure can serve as a rough guide to your<br />

analysis which can be fine-tuned to personal preferences.<br />

Procedure<br />

1. Read the Case. The first step is to get acquainted with the situation. Read<br />

through the case quickly, getting a general feel for what is going on. Who are the main<br />

players? What types of information are available to you? Go back and reread the case<br />

carefully, paying particular attention to case facts, figures, and diagrams. Be careful<br />

to separate symptoms and problems. Case writers will often flag important issues by<br />

italics, headings, or questions at the end of the case.<br />

2. Define the Problem. Put yourself in the place of the decision makers in the case<br />

(managers, investors, debt holders, banks, employees, etc.). What are the critical<br />

issues? Does one problem stand out as primary, with other problems secondary or


contingent upon it? Establish a time dimension to the problems; which problems<br />

demand immediate action, and which are long-term or strategic in nature? What<br />

critical assumptions are being made by the decision makers in the case, and how do<br />

these assumptions influence their chosen strategies? Try to state the problems so as<br />

to identify (a) who must take action, (b) why action must be taken, and (c) when<br />

should action be taken.<br />

3. Build your Analysis. Gather the important facts and concepts in the case, and<br />

discard unimportant or fringe issues and data. Build a theme for your analysis, and<br />

establish the importance of the problems you have identified. Incorporate your<br />

knowledge of cultural impact on the situation, financial analysis, accounting<br />

techniques, marketing methods, economics, and human behavior into your analysis.<br />

Put theory to work in your paper, by using concepts from the readings and module<br />

overviews to analyze the problems and issues and explain why they require<br />

responses by management.<br />

4. Develop Alternatives. Examine the alternative courses of action that are available<br />

to the firm. Make a list of the advantages and disadvantages of each. Don’t use<br />

“straw-man” alternatives (those that are patently unfeasible or undesirable). Develop<br />

a few well-reasoned responses that could solve the problems, and critically evaluate<br />

them.<br />

5. Make a Recommendation. Based on your analysis of alternative courses of<br />

action, choose the best and recommend course of action. Be specific in your<br />

statements. How will your recommendation be implemented? Circle back through the<br />

case to identify possible points of inconsistency between your recommendation and<br />

case facts. What potential problems might crop up? How will internal constituencies<br />

(e.g., management, employees) and external constituencies (e.g., competitors,


stockholders) react, and how will you handle their responses? What assumptions<br />

have you made in developing your recommendation?<br />

Please review Writing and Revising/ Editing the Case Analysis for additional<br />

information on structuring a case analysis.<br />

Deliverable: Case Write-Up<br />

The write-up must include the following items:<br />

●<br />

●<br />

●<br />

●<br />

Title page containing case name and date<br />

Brief summary of the business situation in the case<br />

Identification of problems or issues<br />

Analysis of the problems or issues including the nature of the problems,<br />

causes of the problems, constraints, and related theories (framework for<br />

your analysis)<br />

●<br />

List of alternatives for solving problems, including pros and cons of each<br />

alternative<br />

●<br />

●<br />

●<br />

Your recommended alternative and clear reasoning for you decision<br />

Supporting spreadsheets or charts<br />

References

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