MBA670Project3AnalysisQuestions11.docx

MBA 670 Project 3

[Note: In the DuPont equation, ROE is equal to profit margin multiplied by asset turnover multiplied by financial leverage. Under DuPont analysis, return on equity is equal to the profit margin multiplied by asset turnover multiplied by financial leverage.]

7. Did you need an emergency loan in any of the four rounds? If so, why? If you did not need an emergency loan in any of the four rounds, explain the decisions that you made to ensure that your company would not need an emergency loan to survive.

8. Explain your capacity decisions, including whether or not to use a second shift in each round. Compare the available plant capacity in each round (first and second shift) versus the number of units produced. Was there idle capacity in any round? Is it possible that you could you have used capacity more efficiently while increasing your plant utilization? Explain why or why not.

9. See Section 5 (Finance) of the Round 4 report. How did your revenue grow over the four rounds? Why? How did your net income grow over the four rounds? Why? How did your share price/market cap grow over the four rounds? Why?

10. Did your team’s decisions in Rounds 1–4 always align with the chosen strategy? If you found yourself deviating from your strategy, explain why. In hindsight, what decisions would you have made differently? Explain.