STRATEGIC FINANCIAL ANALYSIS

Strategic Financial Analysis

Instructions

Read the following scenario, then draft a 34 page business memorandum to Linda Hoff, Stanford's CFO.In your memo, codify your findings and interpretations from the horizontal and vertical analyses and the level of alignment in the company's fiscal management and its strategic direction. Include an Excel spreadsheet as an attachment to the memo. In this memo you will:

1. Review the year-over-year variances contained in the audited Stanford balance sheets and income statements for fiscal years 201518 in the Week 5 Assignment Spreadsheet [XLSX]. You'll be expected to pay particular attention to the negative variances (color coded in red) that you believe to be potentially the most impactful to Stanford.
2. Speculate as to the reasons for the negative variances.
3. Examine the common size balance sheets and income statements looking for abnormally low or high ratios based on what you know about the line item and what you observe in the data for the other fiscal years.
4. Look for patterns in the line items over the three-year period and identify any unusual findings that may need to be examined further.
5. Assess the alignment of the organization's fiscal management to the strategic direction of the firm. Fiscal management is based on your horizontal and vertical analyses. The strategic direction is based on the vision, mission, and strategic priorities of Stanford.