Introduction
Continuous development and expansion are some of the major aspects from the viewpoint of an organization and organizations would get certain apprehension with the help of effective development based strategies in particular. There are a number of companies in the world which are in the favor of expanding their networks in order to increase their product portfolio and financial belongings in particular. The flow of funds is the main thing and an aspect which deem important for an organization while having the preposition of investment. There are certain tools which could be used for the same purpose as it relates to the expansion stance of a company at a new place. The main perspective of this particular assignment is to analyze the expansion of a company with the name of Scuba Business School in other regions. It is required to analyze both the financial and non financial aspect which will work like wonders for the company . The assignment depends on a case study and all of the questions are required to answer comprehensively and accordingly at the same time. The assignment which has been distributed into three different sections, which particularly are introduction, analytical framework and conclusion, let’s now move towards the analytical review.
Analytical Framework
There are four different questions which have to be complete in this particular assignment
Advantages of the Proposed Dive Shop
There are certain advantages that associated with the proposed dive shop as discussed in the case study. According to the case study, the dive shop has qualified individuals in it which has the tendency to check out the things in an effective and well organized manner. The dive shop has the accolade the research the things and value things accordingly and effectively at the same time. According to the case the financial capability of the company is high and effective which will certainly help out the company to value things effectively which will also help the company to expand their network accordingly. The company can enjoy this particular momentum for a long span of time because their workforce is highly efficient and effective which is an effective sign for the company lies in a broad nutshell. Let’s now move towards the disadvantages associated with the proposed Dive Shop.
Disadvantages of Proposed Dive Shop
There are certain disadvantages which specifically associated with the proposed dive shop which have been discussed in the case study associated with the assignment. The main disadvantage of the dive shop is its high cost initiation and association which may derail their morale accordingly. It is advised that the proposed method of the company as far as increasing their financial belongings and structure comes under severe pressure from the externalities and high pressure from the competitors. According to the case study, dive shop doesn’t have a perfect marketing strategy which will certainly get them tense and pressurize in the near future and it will not be effective for the companies in the given economic outlook and scenarios. Let’s now move towards the next question
Income Statement Projection
Income statement is an important element of the financial statement of an organization as it has the financial information related to a company in particular. There are number of information that deem important in an income statement and all of such information is important from the viewpoint of an organization. The information regarding the recognition and formation of revenue and net income are some of the major ones from the viewpoint of a company and it is used for different purposes in particular. Income statement which also known as income summary enables an investor to analyze the stance and ability of an organization to generate economic profit. Mentioned below is the forecasted income stamen of Don Foster for 1997 and 1998.
Sales of the company actually decreased from 1994 to 1996, hence we have take -3.8% for 1997 and 1998, which is an average decrement in each of the year. Cost of Goods sold is 89% of the total sales. In the end the profit of the company increased in the year 1997 and decrease marginally in the year 1998.
Balance Sheet Projection
Cash Flow
Proposal Analysis
We will use two different tools for the same which are Net Present Value (NPV) and Internal Rate of Return (IRR)
The Net Present Value Computation is mentioned below
The IRR computation is mentioned below
Conclusion
Works Cited
Rubinfeld, Arthur. Built for Growth: Expanding Your Business Around the Corner Or Across the Globe. Chicago: Prentice Hall Professional, 2005.
