can you help with individual case analysis 2

Running head: INDIVIDUAL CASE ANALYSIS 2 1

INDIVIDUAL CASE ANALYSIS 2 8

Individual Case Analysis 2

Student Name

Course and Section Numbers

Liberty University

Date

Individual Case Analysis 2

Case Analysis of TJX Companies, Inc. (2015)

Instructions: Provide a response to Case 9: The TJX Companies, Inc. (2015) (p. 437)—answer the question at the bottom of text page 445(last paragraph). Develop projected financial statements that support your recommendations and strategies, including a narrative that explains your assumptions presented in these statements

TIPS:

· Write your responses as if you are preparing the analysis for the chief executive officer (CEO) of TJX Companies, Inc. (2015). You should convince the CEO to implement your recommendations by providing compelling rationale demonstrated through sound judgment based upon credible sources and appropriate data.

· Use the information and data in the TJX Companies, Inc. (2015) case in the textbook.

· Also, refer to Chapter 7 and Chapter 8 in order to successfully complete this assignment.

· Cite your sources: Remember to cite your opinion, with proper APA in-text and reference citations.

·
Double space your answer to each question and your reference citations. The projected financial statements can be single spaced.

1. How aggressively should TJX expand globally, and where, and when, to maximize the value of the company for shareholders?

2. Develop the projected financial statements that fully assess and evaluate the impact of your proposed strategy. Include (a) a full balance sheet; (2) an income statement; and (3) EPS/EBIT analysis.

Financial Plan Narrative

In this section discuss the assumptions using the tips for projecting the financial statements in below as a general guide. This narrative will be presented with your projected financial statements.

TIPS:

· Describe your financial plan

· What types of strategies are you proposing in number 1, above?

· To implement these strategies, how will financial statements as of February 1, 2015 change?

· Discuss changes to the balance sheet, income statement, and EPS/EBIT analysis that are included in your projected financial statements.

· How will balance sheet items (assets, liabilities, equity be used and/or change during the period in which these strategies are implemented?

· What income statement items (revenues, cost of goods sold, expenses, net income) change during this implementation period?

· How will earnings, taxes, and stock be affected? Discuss the EPS/EBIT analysis.

· How many years will the strategies require to achieve the desired results? David and David (2017) found most strategies require three to five years from the time strategies are implemented for desired objectives to be achieved.

· Your financial plan and projected financial statements should be include each year of the implementation period until the desired objectives are anticipated to be achieved.

Projected Financial Statements

Use the TJX Companies, Inc. (2015) financial statements as of February 1, 2015 (p. 441) to project future years of your implementation.

Tips:

· You may use the downloadable template provided on the strategyclub.com website

· Enter the financial data on Worksheet Part II

· Use TJX Companies, Inc. (2015) financial statements as of February 1, 2015 (p. 441)

· Financial ratios: You may need to calculate ratios to project financial data for future years.

· Balance sheet

· How will your recommended strategies be funding? Cash, debt, shareholders’ dividends?

· How will assets, liabilities, and shareholders’ equity be affected by your strategies?

· Income Statement

· How will your recommended strategies affect revenue? Will revenues decrease initially? When will revenues increase?

· What expenses are involved to implement your recommended strategies? When will these costs be incurred? When will these costs decrease or no longer be required?

· EPS/EBIT Analysis

· How will your strategies affect EPS?

· Will shares be used to finance the implementation of the proposed strategies?

· How will a decline or increase in revenue affect EPS?

· How will earnings be affected?

· What will be the effect on taxes?

·
Do not increase all financial statement categories by the same amount or percentage. This is not reasonable.

· See Chapter 8, pages 255-262), for information about how to project financial statements and the Chapter 8 PowerPoint slides.

· Use the resources in the Collaboration and Community Center forum of the Discussion Board regarding projecting financial statements.

Projected Balance Sheet

Tip: Balance Sheet (see Exhibit 6, page 441) including assets (e.g., cash and cash equivalents, accounts receivable, inventories, other current assets, property, plant & equipment, goodwill & intangibles, other assets); liabilities (e.g., accounts payable, other current liabilities, long-term debt, other liabilities); and equity (e.g., common stock, retained earnings, other equity, paid in capital).

Fill out the appropriate columns for the number of years that are needed for your recommendations to be implemented.

Actual February 1, 2015

Projected February 1, 2016

Projected February 1, 2017

Projected February 1, 2018

Projected February 1, 2019

Projected February 1, 2020

Assets

Cash and cash equivalents

$2,494

Accounts receivable

283

Inventories

3,218

Other current assets

720

Total current assets

6,715

Property, plant & equipment

3,868

Goodwill & intangibles

310

Other assets

235

Total assets

11,128

Liabilities

Accounts payable

2,008

Other current liabilities

1,922

Total current liabilities

3,930

Long-term debt

1,624

Other liabilities

1,310

Total liabilities

6,864

Common stock

685

Retained earnings

4,134

Other equity

(554)

Paid in capital

—

Total equity

4,264

Total liabilities & equity

11,128

Projected Income Statement

Tip: Income Statement (Exhibit 5, page 441) revenue (e.g., revenue, cost of sale) and expenses (e.g., operating expenses, EBIT, interest, EBT, tax, net income).

Fill out the appropriate columns for the number of years that are needed for your recommendations to be implemented.

Projected Income Statement

Actual February 1, 2015

Projected February 1, 2016

Projected February 1, 2017

Projected February 1, 2018

Projected February 1, 2019

Projected February 1, 2020

Revenues

$29,078

Cost of sales

20,777

Operating expenses

4,712

EBIT

3,589

Interest

40

EBT

3,549

Tax

1,334

Net income

2,215

Projected EPS/EBIT analysis

Tip: Use the data from the projected balance sheet and projected income statements to perform the EPS/EBIT analysis.

—-Insert projected EPS/EBIT Analysis here—

 

Common Stock Financing

Debt Financing

Stock

 

Recession

Normal

Boom

Recession

Normal

Boom

Recession

Normal

Boom

EBIT

$0

$0

$0

$0

$0

$0

$0

$0

$0

Interest

0

0

0

0

0

0

0

0

0

EBT

0

0

0

0

0

0

0

0

0

Taxes

0

0

0

0

0

0

0

0

0

EAT

0

0

0

0

0

0

0

0

0

# Shares

0

0

0

0

0

0

0

0

0

EPS

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

$0.00

Here are some entries you may want to consider:

· EBIT Normal:  $3,589 million (Assumption: from February 1, 2015 Income Statement)

· EBIT Recession: $3,100 million (Assumption: earnings lower during recession)

· EBIT Boom: $4,200 million (Assumption: earnings higher during boom)

· Interest rate: 3.5% (Prime interest rate)

· Tax rate: 38% (Assumption: Tax  / EBIT both figures from February 1, 2015 Income Statement) 

· Percent Equity Used to Finance: 70% (Assumption: Beginning point of analysis; Any combination of equity/debt financing can be used)

· Percent Debt Used to Finance: 30% (Assumption: Beginning point of analysis

 

References

TIPS:
All sources that are cited in the text are included in this section. Reference citations are double spaced, with no extra return between the section heading, References, and each citation. The first line for each citation begins at the left margin and subsequent lines are indented. When using Word, the format command for Paragraph, Indentation, Special: Hanging, 0.5” and double spacing is Spacing: Before: 0 After: 0, Line Spacing: Double. An example citation and the proper APA citation for the textbook and Liberty University’s Honor Code is included above.

David, F. R., & David, F. R. (2017). Strategic management: A competitive advantage approach, concepts and cases (16th ed.). Boston, MA: Pearson. ISBN: 9780134167848.

As the group decides how to approach the group case analysis, you may want to have different timelines for submitting the analysis so that the alternative strategies and recommendations will be based on the analysis and then the action/timetable agenda, financial ratios, and projected financial statements will be based upon the recommendations.

When conducting the case analysis, ask yourself how would the CEO react to the recommendations. Is the rationale well developed with sources cited and data so that the recommendations are well-developed, logical, and credible?

Please also refer to Part 6, “How to prepare and present a case analysis” in textbook.  Specifically, “Preparing a written case analysis” on pages 362-363 and “Tips for successful case analysis” on pages 365-367 provide useful information and direction for completing your group’s case analysis.

Remember to use APA style throughout your paper

The organization of your paper should follow APA style (see Assignment/Paper Template in the Collaboration and Community Center thread of the Discussion Board forum and the Liberty University Online Writing Center APA resources).

Remember to use proper APA style that includes a running heading, proper cover page, page numbers, citations for all information obtained or influenced by others, and references that conform to APA format.

When using Word, place your heading and page number in a header so it will repeat on every page. Also, select “Different First Page” so that “Running head: ” appears only on your cover page. Times New Roman 12 point is the preferred font style.

Please remember when using APA style to double space throughout your paper, with no extra line spacing between the headings or paragraphs, or reference citations. When using Word, use the Paragraph format command: Spacing Before: 0 After: 0 Line Spacing: Double. All material used for this assignment must be properly attributed.

Plagiarism

· Omitting quotation marks or other conventional markings around material quoted from any printed source (including digital material)

· Directly quoting or paraphrasing a specific passage from a specific source without properly referencing the source (Liberty University, 2011, July, p. 1)