Strategic Cost Management - NMIMS April 2018 Solved Assignments
GET SOLVED ASSIGNMENTS VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at [email protected] YOU MAY CALL US ON - 7506193173 WHATSAPP NUMBER- 9967480770 Internal Assignment Applicable for April 2018 Examination Strategic Cost Management 1. A company is considering a number of prospective project proposals. Although the company has the potential to fund all the projects simultaneously, it does not want to grow too fast and out of control. The company has therefore allocated a total amount of Rs. 1000 crore in the current year for Capital Expenditure. Cost of capital of the company is 10%. The relevant details of the proposed projects are shared below. Project Initial Investment (Rs. Crore) NPV (Rs. Crore) IRR (%) A 300 780 17.5 B 200 -10 9.8 C 250 450 16.7 D 100 140 12.4 E 350 700 12 F 100 60 18 G 400 400 13.8 SAs a specialist in the subject, you have been approached by the Management of the company. Explain with proper reasoning which of the above projects should the company accept to stay within the Rs. 1000 crore budget. 2. A brown goods manufacturer is struggling to regain market share, and does not feature among the top five players in the industry. The past few years have also witnessed high attrition rate among top executives of the company. A newly appointed General Manager has recommended implementation of Business Process Reengineering as the way forward for the company. However, across the Board, there are concerns regarding the success of such an initiative. As a specialist in the area, you are expected to guide the Management through the above. 3 a) A diversified conglomerate is taking a fresh look at the lines of businesses in which it operates. Although it has identified three businesses which are non – core and can be hived off, a segment of the Management is firmly against the concept fearing that outsiders will perceive it as inability of the company to successfully manage those businesses, and consider it as the company’s failure, which can tarnish the image of the Management. As a newly joined expert in the company, briefly explain your viewpoint about the same, and suggest how you will convince the Management in this regard. 3 b) Now that you have convinced the Management regarding utility of the restructuring exercise, prepare a detailed report for the Management highlighting the various forms in which the restructuring can be carried out, along with the associated benefits and pitfalls of each. GET SOLVED ASSIGNMENTS VISIT WWW.SMUSOLVEDASSIGNMENTS.COM Or Mail us at [email protected] YOU MAY CALL US ON - 7506193173 WHATSAPP NUMBER- 9967480770
