Question
Case Study: You are the Business Development Manager of Sheffield Limited, a farm nutrient and environmental company located in central Canterbury. Sheffield Limited focuses in
Case Study: You are the Business Development Manager of Sheffield Limited, a farm nutrient and environmental company located in central Canterbury. Sheffield Limited focuses in helping farmers and growers in the South Island of New Zealand to achieve production efficiency and reduce their environmental impacts. The company produces fertilisers, agrochemicals, and other agriculture products that help farmers to improve the fertility of soil, the quality of crops and livestock, and eventually the profitability of farms. The aspirational goals of the project are to learn the various types of financerelated decisions that managers of a company have to make and to understand how finance tools can help managers in making better decisions that will benefit the company.
1. Introduction: Provide a brief and concise introduction of contents of the recommendation report and a highlight of the main recommendations. Outline the coverage.
2. Analysis - Operating Decision: Should Sheffield Limited introduce the 'Sheffield Soil Test Kit'? Explain your answer.
3. Analysis - Investing Decision: Should the capital expenditure proposal to purchase a new machine, Windwhistle model 230E that can double the production capacity of your flagship product, Cropmaster 18 Fertiliser be accepted? Explain your answer. 4. Analysis - Financing Decisions: Which is the better option for financing the new machine - long-term loan from a bank or equity financing from the shareholders? Who should be the preferred supplier for the required chemical needed to produce the Cropmaster 18 Fertiliser? Explain your answer.
5. Analysis - Financial Statement Analysis: What actions could be taken to improve the performance of Sheffield Limited in each of the categories of financial ratios (efficiency ratios, financial stability ratios, and profitability ratios)?
6. Analysis - Overall: What should be the future direction of Sheffield Limited? (Some hints to help you to generate ideas are your thoughts toward those questions: What do you think are the most important factors that a company should consider when deciding its future direction? What strategies do you think a company can use to stay competitive and successful in the future? What do you see as the biggest challenges that a company will face in the next 5-10 years, and how should it respond to them?)
7. Organisation and Conclusion: Organise your recommendation report in a proper manner that ties the introduction, analysis, and conclusion sections nicely. The conclusion section should follows logically from the analysis.
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