Business Discussion

Learning Goal: I’m working on a writing discussion question and need an explanation and answer to help me learn.

Part A – Funding Your Plan and ROI(

1) View the video on Project Economics Basics in this week’s EOP videos and then use the Cost-Benefit Analysis Worksheet to calculate ROI, Payback, and IRR for your strategic initiative. The spreadsheet will calculate these items for you, but you will need to input the data from your analysis and forecasts, including:

  • The expected revenue impact for the organization from your plan
  • The costs of launching your plan, including:
    • Acquisition and/or sale of assets
    • Salary expenses including hiring, training or performance bonuses, if applicable
    • Manufacturing, marketing, operations overhead, etc.
  • Ongoing operating expenses that will be tied to the initiative once it is launched
  • Cost savings (if your project is focused on operational improvements)

(2) Review your cost-benefit analysis in the worksheet and briefly answer these questions:

  • How will you fund the startup and ongoing costs for your strategic initiative?
  • How will your plan improve the organization’s financial health relative to its competitors?
  • How does your plan compare to your company’s average (or industry average) profit margins for similar projects or services?
  • Why is your proposed plan superior to other options to strengthen the long-term financial health of the organization?
  • Provide a summary of how you arrived at your investment, revenue, and cost forecasts.

Important: Attach your completed Cost-Benefit Analysis Worksheet with your initial post.

PART B – Your People Plan

Staffing decisions will likely play a critical role in the successful implementation of your strategic plan. Referencing people management practices you have studied in this program and drawing on your own experience, address the following:

  • What changes to team structures and key roles will you need make to execute your strategic initiative? Explain.
  • Will the head count/salary costs be net positive, negative, or neutral? Why?
  • What training and other resources will you require to support the new plan?
  • What is the most critical element of your people plan that you will have to get right for your plan to work? Why?
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