Step 4: Discuss Risk and Returns

DIALOGUE WITH FRANK MARINARA

As McCormick decides whether they will invest in an additional factory to keep up with demand, the company remains uncertain if the investment will yield worthwhile returns. That is where they need us to provide them with a risk and return evaluation, Frank says. Risk is the financial liability a company takes in a given investment in consideration of a potential return on the investment.

MEET AND DISCUSS

Frank has asked you to meet with your colleagues and discuss how risk and returns will influence McCormicks investment decision. Complete the following tasks:

• Discuss whether McCormick & Company should invest in building a new factory in Largo, Maryland. Give credit to any sources you use to support your statements.
• Discuss how understanding risk and returns will impact this decision. Give credit to any sources you use to support your statements.
• Later in the week, after you are back in your office, you have a follow-up discussion with your MCS colleagues in an effort to summarize the key lessons from your discussion on risk and returns at the meeting. Respond to your colleagues' original discussion posts and give credit to any sources you use to support your statements.

submit one original posting of at least 250 words in the Risk and Returns . Consult the MBA discussion guidelines for assistance.

When you have finished Step 4, proceed to Step 5, where you will review your recent findings in a report to management.