1.) Explain âcorporate core competencyâ and how does it factor into a potential growth project? Corporate core competency is the area the firm enjoys its strength and can be comfortable with its profits and sales figures. It is the weapon in the armor for the firm that help it to grow further by tackling competition.
2.) What role would a leader play in a growth initiative and how would the role of a manager differ from that of a leader in the project?
2.) What is the value of internal and external communications during the project?
4.) Why is a value proposition is so critical and what are the 4 elements needed in any value proposition?
5.) How would you organize a team and what teamwork model would you use that would give you the most flexibility to address the dynamic issues that can come up on such a project?
1.) Explain âcorporate core competencyâ and how does it factor into a potential growth project? Corporate core competency is the area the firm enjoys its strength and can be comfortable with its profits and sales figures. It is the weapon in the armor for the firm that help it to grow further by tackling competition.
2.) What role would a leader play in a growth initiative and how would the role of a manager differ from that of a leader in the project?
2.) What is the value of internal and external communications during the project?
4.) Why is a value proposition is so critical and what are the 4 elements needed in any value proposition?
5.) How would you organize a team and what teamwork model would you use that would give you the most flexibility to address the dynamic issues that can come up on such a project?
Related questions
Capital budgeting involves choosing projects that add value to the firm. The net present value (NPV), internal rate of return (IRR) and payback period methods are the most common approaches to project selection. At its core, capital budgeting is measuring an accounting of costs versus benefits. In a way, all business decisions are a series of capital budgeting decisions. Get it wrong, and you can destroy a company.
The capital budgeting tools help financial managers decide on the desirability of the projects. In the real world, however, managers sometimes will make decisions that don't necessarily agree with the decision rules of the payback period, NPV or IRR methods.
For example, consider the two mutually exclusive projects below.
| Investments | Cost | Cash Flow 1 | Cash Flow 2 |
| Project A | $ 50 | $ - | $ 100 |
| Project B | $ 50 | $ 50 | $ 25 |
According to the payback period, project B should be selected. Although both projects cost the same, project B has a payback period of one period, while project A will payback in roughly 1.5 periods.
Assuming the discount rate of 5%, NPV(A) = $41 and NPV(B) = $20.
This example illustrates the limitations of the payback period method. Even though the payback period method points to project B, the NPV method points to project A since it has more than twice the NPV value to that of project B. Yet the manager may choose project A. Why?
It may be that the project stakeholder is requesting a quicker return in cash.
For this discussion, create an example problem where two (or more) methods contradict each other. What would be the "appropriate" choice (which project would you choose)? In what cases would you not choose the "best" choice?
