THETA

GROUP of 4 students per group. To submit in 7th week.

Format.
In a report form , discussing on the recommendation given from the four question below.
(Not less than 6 pages, 1.5 spacing, Times Roman)
Discussion Questions
Guidelines to your answer

Start with an executive summary

1. Imagine it was 2004, and you were a financial analyst, what would trigger your
concern that THETA was in trouble? Why?
a. Students should try to detect any significant evidence from the financial statement, such as
the operating expenses, cost of sales and see if there is any impairment of assets
b. Look for evidence of no substanial increase in revenue, imbalances of AR and AP
c. What are other red flags that you can identify.

2. You are the turnaround management consultant appointed in 2007. What would be
your strategy for devising a turnaround plan?
What is a turn around plan?
Possible turn around activities
a. Close unprofitable or loss making opertaion (indentify where?)
b. Deregister non core and non viable business
c. Actions taken to look at debt restructure (debt convertible, rescheduling, refinancing)
d. Subsidiary company to seek help from parent company
e. Identify new straegic patners
f. Review the business model Look at Porter 5 forces, PESTLE anlaysis, SWOT analysis,
NBOS

3. In 2009, the management will have to convince the stakeholders of the companys
prospects. Prepare a business plan for THETA.

The business plan should have elements of items below

a. SWOT
b. Market analysis of IT business
c. New Business and Revenue model
d. Specific Business plan (Financial and Marketing Plan, management team)

4. You are an investor and considering THETA for your investment portfolio. How
would you analyze THETA and what are the factors you would consider in making
your decision?
How would you value the performance of the company.
Most of all, you may use financial ratio analysis to value the company (P/E ratio, Dividend yield
method, CAPM, DCF method, EVA, Balance score card , etc that you think is relevant)