Homework
Johnson & Johnson Company
Mentorship Exchange: Executive Summary
This mentorship exchange provides you with an opportunity to receive one-on-one guidance and support from your instructor/mentor. Each week you will be creating and talking through a draft of the weekly assignment in video format through the Canvas platform.
Draft Creation/Submission
Prior to creating your 2-3 minute video within this exchange be sure to create the draft of your Executive Summary deliverable for this week according to the instructions for that section of the Final Report and submit it to your instructor/mentor by clicking on the button below and uploading it. Once you have finished submitting your draft, return to this page to create and submit your video according to the instructions under the Video Creation/Submission section.
The video will be shorter than previous weeks to mirror the concision expected in your one-page Executive Summary.
This section of the report is important because you will be using it as the first page of your final report. The one-page executive summary provides a high level evaluation of your company's financial health and review of the information in the report, as well as your specific recommendations with regards to the acquisition of the company's stock. Carefully review the information you have included in your drafted section and create your video.
DO NOT READ YOUR DRAFT. Instead, address the bulleted elements below in your video exchange. (It is highly recommended that you create some talking points prior to beginning your video recording in order to ensure that you will meet the time constraints for the video.)
In your 2 to 3 minute video address the following points.
1) Explain your rationale for the elements you provided in your Executive Summary and how they specifically support your recommendation. (30 seconds - 1 minute)
2) Explain how you formulated your recommendation and list the top 3-5 drivers that caused you to come to this conclusion. (45 seconds - 1.5 minutes)
3) Provide a brief reflection on how your skills have grown through the process of working with your mentor and revising the sections of your report throughout this course. (30 seconds - 1 minute)
Project
Corporate Performance Report
In the business world, it is imperative that each person be able to determine and make recommendations regarding the viability of any purchase, as well as justify the claims made to upper management. Whether the purchase is equipment, stock, or another company, the same techniques and skills are called into play.
The Corporate Performance Report will require you to apply pertinent business concepts to the analysis of a chosen company using data from the company's annual report as well as other sources. Using different business concepts and real-world techniques, you will analyze the strengths and weaknesses of the company and write a report for upper management either recommending or not recommending purchase of the company stock. Just as you would in any business situation, you will be required to revise and improve the pieces of your report as you progress and your final product will be something that could be used in the real business world.
Executive Summary (Completed in Week Five)**
1) Create an Executive Summary for your report that can be used as the first page of the final product to provide general information for upper management
a. Provide a synopsis of your findings, including your recommendations and a rationale for whether or not to purchase stock from this company.
Introduction to and Background on the Company (Completed in Week One)**
1) Analyze your chosen company's current business and financial conditions and create a brief introduction to your company that includes the following.
a. The mission of the company
b. A descriptions of the company's current business operation, competitors, financial condition
c. General information that explains why the company interesting to you as an analyst.
Financial Statement Review (Completed in Week Two)**
1) Evaluate the financial performance of your company by creating a complete financial statement review.
a. Review all three accounting statements and compare each of these statements to previous statements for the past three years.
b. Describe any positive or negative trends that emerge from the accounting statement data and comparisons, providing a detailed explanation of the factors that lead to these trends.
c. Assess potential weaknesses in the financial statements for your company.
Market Summary and Value Calculation (Completed in Week Four)**
1) Summarize how your company compares to the overall market based on researched competitive market data.
2) Summarize what 3-5 market analysts are currently saying about the company.
3) Calculate the value of the company's financial assets by completing ratio analyses for the company for the last three fiscal years within the following bulleted categories. Provide a rationale as to whether each ratio is favorable or signals potential trouble for the company justifying your observations with evidence from the data and your findings.
(Note: Your report must include a minimum of 2 ratios from each bulleted category, with a minimum of 10 total analyses. The greater the number of relevant ratio analyses you can provide, the stronger your business case will be to either purchase or not purchase the stock.)
1) Categories for ratio analysis
a. Liquidity
b. Financial leverage
c. Asset management
d. Profitability
e. Market value
Financial Returns and Capital Constraints (Completed in Week Three)**
1) Formulate the expected financial returns and associated risks by completing the following calculations.
a. Calculate the Return on Equity (ROE) using the DuPont system.
b. Calculate the Constant Growth Stock Valuation (CGSV) and compare it to the current stock price.
2) Research your company's industry and evaluate what type(s) of capital constraints your company must consider in order to be competitive in the market. Explain the appropriate financial techniques that would be used in this evaluation.
Format your homework according to the give formatting requirements:
a. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
b. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
c. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.