Question

Locate the financial information for a company that has only domestic manufacturing operations. Assume management desires to expand into the global market with its current products. The company is currently operating at capacity so additional equipment will be required to complete the expansion. Utilize discounted cash flow techniques in your capital budget proposal. Using the current company financial information as a base for your forecast, create a proposal for the firm to expand its operations. This proposal should incorporate a CVP analysis, balanced scorecard, complete budgeted financial statements (i.e., income statement, balance sheet, and statement of cash flows) with supporting schedules, as well as a discussion of constraint theory and its importance in this decision-making process.

Country is Eurpore (London).

Answer 1

of business practitioners and theorists have postulated that one way for a company to increase its return is by increasing its market share, and studies appear to have confirmed this relationship. But the authors of this article refuse to accept the blanket inference that “more” is necessarily always going to mean “better.” A large market share, they point out, can spell more trouble as well as more profit for a company; a given project promising higher returns than others will surely entail greater risks as well. Given this direct link between profit and risk, it behooves companies to manage their market shares with the same diligence as they would manage any other facet of their businesses. This concept of managing market shares leads to some intriguing possibilities. Although most companies can profit by attempting to increase their market shares, some may conclude that they are at (or possibly beyond) the point at which expected costs and risks outweigh expected gains. The authors suggest various strategies that these companies might consider in attempting to manage their market shares.

Capturing a dominant share of a market is likely to mean enjoying the highest profits of any of the companies serving that market.1 It can also mean winning the leadership, power, and glory that go with such dominance.