Question: Please answer this question in essay form about heinz in essay form. Again, you will project how your industry / company will look in six
Please answer this question in essay form about heinz in essay form. Again, you will project how your industrycompany will look in six years. With this information, you
will be able to forecast the approximate future value of your company
All companies of any size go through this process, whether explicitly or implicitly, as they need to
make big, longterm resource allocation decisions: Should we invest in this R&D or build a new
factory, refinery, hotels In what geographies? Londonbased Shell Oil has certainly been
planning their massive cracker plant north of the Pittsburgh International Airport, now nearly
complete, for at least a decade
Companies also conduct this type of analysis to determine how valuable the company will be for their
investors and themselves, as most senior executives have a large share of their total compensation
tied to equity performance
Of course, strategic assessment is always difficult, especially when we look this far into the future.
Each team will need to assemble its pointofview based on several wellconsidered assumptions.
One teams focus areas, and therefore assumptions, will be different from anothers
Youll have to decide:
The Macro Environment Consider MegaTrends; Understand projected demographic and economic
forecasts by relevant regions; Understand major psychographic trends by relevant regions; Consider
any other factors you deem relevant
What will society look like in What regional differences are expected?
What will the economy look like in What regional differences are expected?
Your Industry Consider MegaTrends and PESTLEs that will impact your industry; Understand
Porters Five Forces; Use your Assignment work written and data worksheets for insight; Consider
any other factors you deem relevant
What will your industry look like in :
Size and geographic span?
Product and substitute products?
Customers?
Ascendantrecedingnew competitors?
Value migrations
Expected financial performance?
Expected valuations compared to the overall market?
Any other relevant elements?
Your Company Consider MegaTrends and PESTLEs relevant to your company; Use your
Assignment work written and data worksheets; Factor in appropriate learnings from class;
Consider any other factors you deem relevant
What will your company look like in
Size and geographic span?
Products?
Customers?
Expected market share?
Value migrations
Expected financial performance?
Expected valuations compared to the market and other competitors? Large companies
have highly trained staff to determine this. Well use only the crudest eg easiest methods for this effort.
To answer the primary questions what will your industrycompany look like in and what will be the firms value each team will need to build a rudimentary excel model.
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