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