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COR VAN RAAY AGRIBUSINESS CASE COMPETITIONCase workshop
AGENDA
Discussing a Case
8 Important Steps in Case Presentation
PowerPoint
Presentation Key Points
Figuring Out the Numbers
WHAT IS A CASE?
A real world business issue
Can be any major, strategy or general business
Lots of information General, Accounting or major specific
Critical Thinking
Textbook Knowledge to Use
IMPORTANT STEPS
PROBLEM STATEMENT
Primary Problem May be more than, but choose the most important
Secondary Problem
1-2 sentences
Be clear
Connect the rest of the presentation
ANALYSIS Looking at the big picture
Internal to company
External to environment
3 ways to Analyze SWOT
Porters 5 Forces
PESTLE
SWOT
SWOT
PESTLE
Differences between host and home country
Interaction between countries/states/provinces
PESTLE
PORTER’S 5 FORCES
Analyzes Competitive Positionwithin Industry
ALTERNATIVE SOLUTIONS
Qualitative
Table works well
Show all options
Advantages and Disadvantages Pro/ Cons
Outcome Specific
CRITERIA MATRIX
Quantitative
Backs up decision
Table
Use weighted criteria
Be confident on numbers and explain how
PROVIDING EVIDENCE WITH NUMBERS
Be confident
Be able to defend your numbers Could be based on information provided by company and
industry
Double check the numbers
DECISION
1 choice, 1 slide
Be confident
Everything before should lead to it
Everything after should tell how to achieve the decision
IMPLEMENTATION Usually longest part of presentation
Worth most of mark
Think SMART Specific
Measurable
Achievable
Relevant
Timely
CONTINGENCY PLAN
Plan B If economy…
If government…
If family is concerned…
Do not change your decision
CONCLUSION Summarize main points
Highlight: Decision
Implementation
Push Benefits
Need to sell the idea Strong final ending
POWERPOINT
Keep it simple
Clean and Organized
No grammatical errors
POWERPOINT Large Font:
Titles: 38-48pt Subtitles: 28-36pt Body: 26-34
Color Contrast
Titles are important
12 slide limit
PRESENTATION SKILLS
Remember to use terminology You- referring to company
Us- referring to team presenting
Consulting Firm giving ideas
Smile and acknowledge
PRESENTATION SKILL
Talk to Audience
Glance at slides do not read
Try and not hide
Clothing and Appearance matter
Pay attention to person speaking
Entrance and Exit etiquette
MARKING RUBRIC Will be posted online before competition and emailed
out Content and Implementation most important section Also marked on:
Organization
Presentation Skills
Layout
PowerPoint
Originality
Etc.
UNDERSTANDING THE NUMBERS
STEP 2: CASH/PROFITShow me the MONEY!
SALE PROJECTIONS
MIX OFFERING PROJECTIONS
Unlimited Units
Max 150 Units
Most Profitable
STEP 3: DETERMINING A COMPANIES VALUE TODAY USING PROJECTIONS
Putting those cash/profit projections to use
A STARTING POINT
SIMPLE DISCOUNTED CASH FLOW (DCF)- Use cash flow/profit from previous
projections
- Discount rate (WACC) incorporates the firms cost of equity and debt to determine the average rate based on capital structure (weighted for debt/equity)
- If this is unavailable think about
opportunity costs of similar investment, expected ROI, and internal return, interest rate,
DISCOUNT RATES IMPACT ON DCF
But an important point to understand is that“You can’t compensate for risk by using a high discount rate.”
If 15% was used to discount $1,753, you would only be willing to pay $1,524 in today’s money for $1,753. On the other hand, using a 9% discount rate would give a value of $1,608 for the $1,753.
You can see how using a high discount rate will give a lower valuation than a low discount rate.
NPV FORMULA
SIMPLE NPV
A positive net present value indicates that the projected earnings generated by a project or investment (in present dollars) exceeds the anticipated costs (also in present dollars).
Generally, an investment with a positive NPV will be a profitable one and one with a negative NPV will result in a net loss. This concept is the basis for the Net Present Value Rule, which dictates that the only investments that should be made are those with positive NPV values.
RATIOSSnapshots of a Company
RATIOS
Gross Margin
Revenue-COGS / Revenue
GM represents the proportion of each dollar of revenue that the company retains as gross profit
Profit Margin
Net Income / Revenue
This shows how much the company made in OVERALL profit for every $1 it generates in sales
RATIOS
Return On Investment
Gain From Investment - Cost of Investment/Cost of Investment
A performance measure used to evaluate the efficiency of an investment to compare it against other investments
Return On Equity
Net Income/Shareholder's Equity
This ratio measure's how profitable a company is with the money shareholder's have invested
OTHER REMINDERS
RSVP online if haven’t done so
Mandatory Meeting 8pm Friday November 6- Markin Hall
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