You work for a company that manufactures products and provides service for those products. Your director has asked that you mentor an intern for the summer. The first task is to help the intern understand what financial reporting models are used and why.
The company is considering outsourcing the service entity of the business. You have been asked to help with determining the short- and long-term plan. To make a sound business decision, what process will you go through that will result in a positive impact to the organization? Is the company financially capable of sustaining itself only as a manufacturing company? What kind of financial data is needed to make an informed decision to outsource or not? What is the relevance of the data?
The company is going to expand its manufacturing so a new line of products can be built. Outsourcing the service operations will enable the company to save money and use those funds toward the new manufacturing project. However, the company will need an additional $20 million. You are on the financial team to identify financing opportunities.
Step 2: Write a paper that addresses the questions/prompts below. Include a clear introduction, discussion and conclusion. It is highly recommended that you use these questions/prompts as level 1 subheadings in your essay.
– Your company is considering outsourcing its service operations. To make a sound business decision, what process will you go through that will result in a positive impact to the organization? What financial models will you use?
– What kind of financial data is needed to make an informed decision to outsource or not?
– What is the relevance of the data?
– What financing options would you recommend for the needed $20 million?
