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This Is A Urgent Matter I Paid Some One Already They Failed Me I Go
This paper requires an analysis of your decisions during each phase (1-3) of the SNC simulation and how these decisions influenced the final outcomes, including Sales, EBIT, Net Income, Free Cash Flow, and Total Firm Value. You need to provide a summary of your decisions and the rationale behind them, explain their effects on SNC's working capital, and discuss the general impacts associated with limited access to financing. Additionally, scholarly references should be included to support your positions, alongside course textbook and simulation materials.
Paper For Above instruction
In analyzing the strategic decisions made during each phase of the SNC simulation, it is essential to understand that each decision was driven by a combination of market conditions, internal company assessments, and financial constraints. Throughout Phase 1, initial decisions focused on building a foundational market presence while managing costs and establishing operational efficiency. I prioritized investments in marketing and R&D to enhance product differentiation, aiming to capture a larger customer base despite limited initial financial flexibility. This approach gradually improved brand recognition, which positively affected sales growth, as reflected in the increased revenue metrics by the end of the phase.
During Phase 2, my decisions centered on expanding capacity and improving operational efficiency while managing working capital carefully. Recognizing the importance of maintaining liquidity, I opted for conservative financing strategies, balancing debt and equity to fund expansion while avoiding over-leverage, which could impair the company's creditworthiness. This balanced approach was chosen to sustain ongoing investments, such as equipment upgrades and process improvements, which contributed to better EBIT and Net Income figures by reducing costs and increasing margin quality. These decisions directly impacted SNC's working capital by ensuring sufficient liquidity to meet short-term obligations without compromising long-term growth opportunities.
In Phase 3, the focus shifted toward optimizing product mix, pricing strategies, and further capacity utilization. Given the limited access to external financing, I relied heavily on internal cash flows, reinvesting retained earnings to finance operational needs. This limited access to external capital, although constraining aggressive expansion, promoted disciplined cash flow management. Consequently, SNC’s Free Cash Flow improved as operational efficiencies increased, and cash was generated internally. The strategic decision to keep leverage manageable prevented debt-related risks, and as a result, SNC’s Total Firm Value experienced growth driven by stable cash flows and profitability improvements, reflected in elevated valuation metrics.
Overall, these decisions collectively influenced SNC’s financial health and market position. Increased sales with strategic product positioning contributed positively to EBIT and Net Income. Efficient working capital management ensured liquidity was maintained, supporting ongoing operations without unnecessary financial strain. Limited access to external financing led to a more disciplined approach to investment, promoting sustainable growth and avoiding over-leverage risks, which can cause financial distress during economic downturns. Scholarly literature supports these approaches; for instance, Myers (2001) emphasizes the importance of balancing debt and equity to optimize firm value, while Damodaran (2010) highlights the significance of cash flow management under capital constraints.
In conclusion, my strategic decisions during each phase of the SNC simulation significantly impacted key financial metrics and overall firm valuation. By focusing on operational efficiency, cautious financial management, and market-oriented decisions, SNC was able to improve profitability, cash flow, and value despite limited financing options. Future strategies could involve exploring alternative financing sources and technological innovations to further enhance competitiveness.
References
- Damodaran, A. (2010). Applied Corporate Finance. Wiley Finance.
- Myers, S. C. (2001). Capital structure. Journal of Economic Perspectives, 15(2), 81-102.
- Ross, S. A., Westerfield, R. W., & Jaffe, J. (2013). Corporate Finance. McGraw-Hill Education.
- Brigham, E. F., & Ehrhardt, M. C. (2013). Financial Management: Theory & Practice. Cengage Learning.
- Gitman, L. J., & Zutter, C. J. (2015). Principles of Managerial Finance. Pearson.
- Higgins, R. C. (2012). Analysis for Financial Management. McGraw-Hill Education.
- Frank, M. Z., & Goyal, V. K. (2003). Testing the pecking order theory of capital structure. Journal of Financial Economics, 67(2), 217-248.
- Barberis, N., & Thaler, R. (2003). A survey of behavioral finance. Handbook of the Economics of Finance, 1, 105-181.
- Modigliani, F., & Miller, M. H. (1958). The cost of capital, corporation finance and the theory of investment. The American Economic Review, 48(3), 261-297.
- Higgins, R. C. (2012). Analysis for Financial Management. McGraw-Hill Education.