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INTRODUCTION

Harlan Foundation was established in the 1953 by the Martin Harlan who was the wealthiest
personin the Minneapolis city. He was the legitimate social worker who associated his life for the
development of the Minneapolis city. He develops the trust for development and this trust
developedvariedservices such as infant clinics, educational centers for special children, family
counseling centers,a program for drug addicts, and rehabilitation center.

Harlan Foundation was also associated with the other social service providers those were recognized
nationally. The Foundationwas operated on the basis of breakeven where there was no profit and no
loss. The revenue of the foundation was coming from income that was earned throughHarlan’s
bequest. The ravens had the major sources such as fees chargedfor clients, Clients contributions,
and grants those were collectedon city, state, and federal level.

For the next year foundation wanted to start two activities for the disable children and these
activities were summer camp and a seminar. The summer camp was only for the disabled children to
ensure their mental growth and seminar was for the managers to help them arranging the social
services.

Camp Harlan was undertaken last year through donation and was consisted on 30 acres area with
the Frontlineon the lake. The camp building capacity in terms of comparing was 60 at one time. The
Foundation planned to occupy this facility with the new summer activity in it for eight weeks. The
foundation also decided to charge a suitable feefor the campers to recover the operating cost
considering that, many of the campers cannotpay these fees and this could be supported from the
donations.

Henry Coolidge, who was the vice president of the foundation’s finance department, he collected
the information about the costing of the camp from the American Camping Association and
hedecided to accommodate only 50 campers in the camp. This made in total campers of 400
campers per week. Henry Coolidge discussed the budget with the vice president of the foundation
Sally Harris.

Sally Harris raised some question regarding the budgets that some of the items were not included in
the budget such as central office of the foundation that would help and lead in organizing the camps
and the financial aspects of the camping cost and revenues, and also about the marketing of the
camping activity.

For the seminar activity, Harlan Foundation was planning to conduct the seminar in the upcoming
fall in which the discussion would be made to the income tax legislation and other regulatory
development that would impact the social services organizations. The seminar was organized
because of the new income tax legislation as itaffects the contribution and donations made in the
social welfare trusts and Harlan was deciding to help those welfare who were working on a small
scale.
PROBLEM STATEMENT

Harlan Foundation was facing the challenge to organize the camping activities and these activities
were provided with the minimal fees and those who cannot afford to pay these fees would be
supported by the donations. To come up with the optimal fees that would be charges there were
three questions that would be answered such as:

What weekly fee should be charged for campers?

Assuming a fee of $100, what is the break-even point of the seminar?

What fee should be charged for the seminar?

EVALUATION

To answer the above mentioned questions the analysis have been made on the given information in
the case study such as:

The total participant of the seminar would be estimated is 30 and the seminar would be conducted
in the local hotel. The charges of the hotel would be $200 as a rent charge and for the meal the hotel
will charge $20 per person this also includes the refreshments any of the seminar attender would
require. There are also the audio visual equipment charges that would be charged by the hotel if
they provide and for that hotel will charge $100.

Harlan Foundation also arranges the instructor for the seminar and there will be two instructors who
would be getting paid about $500 each. The hotel will also charge for the printing and mailing
facilities for the promotional material and that would be charged around $900. The participant of
the seminar would also get the notebook that contains the relevant material related to the seminar
and each of that notebook will cost around $10 and that cost is the preparation cost of the
notebook. The notebook would be further copied and 60 copies would be printed.On the hand,
other incidental charges would also be charged by the hotel and these charges would be paid out of
pocket that would be around $200.

These above mentioned cost would be incorporated in answering the above mentioned three
questions as an input.................

This is just a sample partial case solution. Please place the order on the website to order your own
originally done case solution.

Describes two situations that require different approaches to pricing decisions. Illustrates an
important point about the prices, as well as the measurement of costs: different goals require
different pricing principles and, therefore, the cost of different designs. Situation number one, an
estimate of the total cost. Situation number 2, an estimate of differential costs in order to obtain the
break-even number of units and the number of break-even is not the whole story, the management
was also to consider the maintenance fee and income opportunity. "Hide
Introduction
Harlan Foundation Case Study is included in the Harvard Business Review
Case Study. Therefore, it is necessary to touch HBR fundamentals before
starting the Harlan Foundation case analysis. HBR will help you assess which
piece of information is relevant. Harvard Business review will also help you
solve your case. Thus, HBR fundamentals assist in easily comprehending the
case study description and brainstorming the Harlan Foundation case
analysis. Also, a major benefit of HBR is that it widens your approach. HBR
also brings new ideas into the picture which would help you in your Harlan
Foundation case analysis.
To write an effective Harvard Business Case Solution, a deep Harlan
Foundation case analysis is essential. A proper analysis requires deep
investigative reading. You should have a strong grasp of the concepts
discussed and be able to identify the central problem in the given HBR case
study. It is very important to read the HBR case study thoroughly as at times
identifying the key problem becomes challenging. Thus by underlining every
single detail which you think relevant, you will be quickly able to solve the
HBR case study as is addressed in Harvard Business Case Solution.

Problem Identification
The first step in solving the HBR Case Study is to identify the problem. A
problem can be regarded as a difference between the actual situation and the
desired situation. This means that to identify a problem, you must know
where it is intended to be. To do a Harlan Foundation case study analysis and
a financial analysis, you need to have a clear understanding of where the
problem currently is about the perceived problem.
For effective and efficient problem identification,

 A multi-source and multi-method approach should be adopted.


 The problem identified should be thoroughly reviewed and evaluated
before continuing with the case study solution.
 The problem should be backed by sufficient evidence to make sure a
wrong problem isn't being worked upon.

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Problem identification, if done well, will form a strong foundation for your
Harlan Foundation Case Study. Effective problem identification is clear,
objective, and specific. An ambiguous problem will result in vague solutions
being discovered. It is also well-informed and timely. It should be noted that
the right amount of time should be spent on this part. Spending too much
time will leave lesser time for the rest of the process.

Harlan Foundation Case Analysis


Once you have completed the first step which was problem identification, you
move on to developing a case study answers. This is the second step which
will include evaluation and analysis of the given company. For this step, tools
like SWOT analysis, Porter's five forces analysis for Harlan Foundation, etc.
can be used. Porter’s five forces analysis for Harlan Foundation analyses a
company’s substitutes, buyer and supplier power, rivalry, etc.
To do an effective HBR case study analysis, you need to explore the following
areas:

1. Company history:
The Harlan Foundation case study consists of the history of the company
given at the start. Reading it thoroughly will provide you with an
understanding of the company's aims and objectives. You will keep these in
mind as any Harvard Business Case Solutions you provide will need to be
aligned with these.

2. Company growth trends:


This will help you obtain an understanding of the company's current stage in
the business cycle and will give you an idea of what the scope of the solution
should be.

3. Company culture:
Work culture in a company tells a lot about the workforce itself. You can
understand this by going through the instances involving employees that the
HBR case study provides. This will be helpful in understanding if the
proposed case study solution will be accepted by the workforce and whether
it will consist of the prevailing culture in the company.

Harlan Foundation Financial Analysis


The third step of solving the Harlan Foundation Case Study is Harlan
Foundation Financial Analysis. You can go about it in a similar way as is done
for a finance and accounting case study. For solving any Harlan Foundation
case, Financial Analysis is of extreme importance. You should place extra
focus on conducting Harlan Foundation financial analysis as it is an integral
part of the Harlan Foundation Case Study Solution. It will help you evaluate
the position of Harlan Foundation regarding stability, profitability and liquidity
accurately. On the basis of this, you will be able to recommend an
appropriate plan of action. To conduct a Harlan Foundation financial analysis
in excel,

 Past year financial statements need to be extracted.


 Liquidity and profitability ratios to be calculated from the current
financial statements.
 Ratios are compared with the past year Harlan Foundation calculations
 Company’s financial position is evaluated.

Another way how you can do the Harlan Foundation financial analysis is
through financial modelling. Financial Analysis through financial modelling is
done by:

 Using the current financial statement to produce forecasted financial


statements.
 A set of assumptions are made to grow revenue and expenses.
 Value of the company is derived.

Financial Analysis is critical in many aspects:

 Decision Making and Strategy Devising to achieve targeted goals- to


determine the future course of action.
 Getting credit from suppliers depending on the leverage position-
creditors will be confident to supply on credit if less company debt.
 Influence on Investment Decisions- buying and selling of stock by
investors.

Thus, it is a snapshot of the company and helps analysts assess whether the
company's performance has improved or deteriorated. It also gives an insight
about its expected performance in future- whether it will be going concern or
not. Harlan Foundation Financial analysis can, therefore, give you a broader
image of the company.

Harlan Foundation NPV


Harlan Foundation's calculations of ratios only are not sufficient to gauge the
company performance for investment decisions. Instead, investment
appraisal methods should also be considered. Harlan Foundation NPV
calculation is a very important one as NPV helps determine whether the
investment will lead to a positive value or a negative value. It is the best tool
for decision making.
There are many benefits of using NPV:

 It takes into account the future value of money, thereby giving reliable
results.
 It considers the cost of capital in its calculations.
 It gives the return in dollar terms simplifying decision making.

The formula that you will use to calculate Harlan Foundation NPV will be as
follows:
Present Value of Future Cash Flows minus Initial Investment
Present Value of Future cash flows will be calculated as follows:
PV of CF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n
where CF = cash flows
r = cost of capital
n = total number of years.
Cash flows can be uniform or multiple. You can discount them by Harlan
Foundation WACC as the discount rate to arrive at the present value figure.
You can then use the resulting figure to make your investment decision. The
decision criteria would be as follows:

 If Present Value of Cash Flows is greater than Initial Investment, you


can accept the project.
 If Present Value of Cash Flows is less than Initial Investment, you can
reject the project.

Thus, calculation of Harlan Foundation NPV will give you an insight into the
value generated if you invest in Harlan Foundation. It is a very reliable tool
to assess the feasibility of an investment as it helps determine whether the
cash flows generated will help yield a positive return or not.
However, it would be better if you take various aspects under consideration.
Thus, apart from Harlan Foundation’s NPV, you should also consider other
capital budgeting techniques like Harlan Foundation’s IRR to evaluate and
fine-tune your investment decisions.

Harlan Foundation DCF


Once you are done with calculating the Harlan Foundation NPV for your
finance and accounting case study, you can proceed to the next step, which
involves calculating the Harlan Foundation DCF. Discounted cash flow (DCF)
is a Harlan Foundation valuation method used to estimate the value of an
investment based on its future cash flows. For a better presentation of your
finance case solution, it is recommended to use Harlan Foundation excel for
the DCF analysis.
To calculate the Harlan Foundation DCF analysis, the following steps are
required:

1. Calculate the expected future cash inflows and outflows.


2. Set-off inflows and outflows to obtain the net cash flows.
3. Find the present value of expected future net cash flows using a
discount rate, which is usually the weighted-average cost of capital
(WACC).
4. Evaluate the potential investment:
o If the value calculated through Harlan Foundation DCF is higher
than the current cost of the investment, the opportunity should
be considered
o If the current cost of the investment is higher than the value
calculated through DCF, the opportunity should be rejected

Harlan Foundation DCF can also be calculated using the following formula:
DCF= CF1/(1+r)^1 + CF2/(1+r)^2 + CF3/(1+r)^3 + …CFn/(1+r)^n
In the formula:

 CF= Cash flows


 R= discount rate (WACC)

Harlan Foundation WACC


When making different Harlan Foundation's calculations, Harlan Foundation
WACC calculation is of great significance. WACC calculation is done by the
capital composition of the company. The formula will be as follows:
Weighted Average Cost of Capital = % of Debt * Cost of Debt * (1- tax rate)
+ % of equity * Cost of Equity
You can compute the debt and equity percentage from the balance sheet
figures. For the cost of equity, you can use the CAPM model. Cost of debt is
usually given. However, if it isn't mentioned, you can calculate it through
market weighted average debt. Harlan Foundation’s WACC will indicate the
rate the company should earn to pay its capital suppliers. Harlan Foundation
WACC can be analysed in two ways:

 From the company's perspective, it can be analysed as the cost to be


paid to the capital providers also known as Cost of Capital
 From an investor' perspective, if the expected return on the
investment exceeds Harlan Foundation WACC, the investor will go
ahead with the investment as a positive value would be generated.

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Harlan Foundation IRR


After calculating the Harlan Foundation WACC, it is necessary to calculate the
Harlan Foundation IRR as well, as WACC alone does not say much about the
company’s overall situation. Harlan Foundation IRR will add meaning to the
finance solution that you are working on. The internal rate of return is a tool
used in investment appraisal to calculate the profitability of prospective
investments. IRR calculations are dependent on the same formula as Harlan
Foundation NPV.
There are two ways to calculate the Harlan Foundation IRR.

1. By using a Harlan Foundation Excel Spreadsheet: There are in-built


formulae for calculating IRR.
2. By using trial-and-error: For this, the following formula will be used:

IRR= R + [NPVa / (NPVa - NPVb) x (Rb - Ra)]


In this formula:

 Ra= lower discount rate chosen


 Rb= higher discount rate chosen
 NPVa= NPV at Ra
 NPVb= NPV at Rb

Harlan Foundation IRR impacts your finance case solution in the following
ways:

 If IRR>WACC, accept the alternative


 If IRR<WACC, reject the alternative

Harlan Foundation Excel Spreadsheet


All your Harlan Foundation calculations should be done in a Harlan
Foundation xls Spreadsheet. A Harlan Foundation excel spreadsheet is the
best way to present your finance case solution. The Harlan Foundation
Calculations should be presented in Harlan Foundation excel in such a way
that the analysis and results can be distinguished to the viewers. The point of
Harlan Foundation excel is to present large amounts of data in clear and
consumable ways. Presenting your data is also going to make sure that you
don't have misinterpretations of the data.
To make your Harlan Foundation calculations sheet more meaningful, you
should:

1. Think about the order of the Harlan Foundation xls worksheets in your
finance case solution
2. Use more Harlan Foundation xls worksheets and tables as will divide
the data that you are looking at in sections.
3. Choose clarity overlooks
4. Keep your timeline consistent
5. Organise the information flow
6. Clarify your sources
The following tips and bits should be kept in mind while preparing your
finance case solution in a Harlan Foundation xls spreadsheet:

1. Avoid using fixed numbers in formulae


2. Avoid hiding data
3. Useless and meaningful colours, such as highlighting negative numbers
in red
4. Label column and rows
5. Correct your alignment
6. Keep formulae readable
7. Strategically freeze header column and row

Harlan Foundation Ratio analysis


After you have your Harlan Foundation calculations in a Harlan Foundation
xls spreadsheet, you can move on to the next step which is ratio analysis.
Ratio analysis is an analysis of information in the form of figures contained in
the financial statements of a company. It will help you evaluate various
aspects of a company's operating and financial performance which can be
done in Harlan Foundation Excel.
To conduct a ratio analysis that covers all financial aspects, divide the
analysis as follows:

1. Liquidity Ratios: Liquidity ratios gauge a company's ability to pay off


its short-term debt. These include the current ratio, quick ratio, and
working capital ratio.
2. Solvency ratios: Solvency ratios match a company's debt levels with
its assets, equity, and earnings. These include the debt-equity ratio,
debt-assets ratio, and interest coverage ratio.
3. Profitability Ratios: These show how effectively a company can
generate profits through its operations. Profit margin, return on assets,
return on equity, return on capital employed, and gross margin ratio is
examples of profitability ratios.
4. Efficiency ratios: Efficiency ratios analyse how efficiently a company
uses its assets and liabilities to boost sales and increase profits.
5. Coverage Ratios: These ratios measure a company's ability to make
the interest payments and other obligations associated with its debts.
Examples include times interest earned ratio and debt-service
coverage ratio.
6. Market Prospect Ratios: These include dividend yield, P/E ratio,
earnings per share, and dividend payout ratio.

Harlan Foundation Valuation


Harlan Foundation Valuation is a very fundamental requirement if you want
to work out your Harvard Business Case Solution. Harlan Foundation
Valuation includes a critical analysis of the company's capital structure – the
composition of debt and equity in it, and the fair value of its assets. Common
approaches to Harlan Foundation valuation include

 FCFF
 FCFE
 DDM
 Comparable
o DDM is an appropriate method if dividends are being paid to
shareholders and the dividends paid are in line with the earnings
of the company.
o FCFF is used when the company has a combination of debt and
equity financing.
o FCFE, on the other hand, shows the cash flow available to equity
holders only.

These three methods explained above are very commonly used to calculate
the value of the firm. Investment decisions are undertaken by the value
derived.
Harlan Foundation calculations for projected cash flows and growth rates are
taken under consideration to come up with the value of firm and value of
equity. These figures are used to determine the net worth of the business.
Net worth is a very important concept when solving any finance and
accounting case study as it gives a deep insight into the company's potential
to perform in future.

Alternative Solutions
After doing your case study analysis, you move to the next step, which is
identifying alternative solutions. These will be other possibilities of Harvard
Business case solutions that you can choose from. For this, you must look at
the Harlan Foundation case analysis in different ways and find a new
perspective that you haven't thought of before.
Once you have listed or mapped alternatives, be open to their possibilities.
Work on those that:

 need additional information


 are new solutions
 can be combined or eliminated

After listing possible options, evaluate them without prejudice, and check if
enough resources are available for implementation and if the company
workforce would accept it.
For ease of deciding the best Harlan Foundation case solution, you can rate
them on numerous aspects, such as:

 Feasibility
 Suitability
 Flexibility

Implementation
Once you have read the Harlan Foundation HBR case study and have started
working your way towards Harlan Foundation Case Solution, you need to be
clear about different financial concepts. Your Mondavi case answers should
reflect your understanding of the Harlan Foundation Case Study.
You should be clear about the advantages, disadvantages and method of
each financial analysis technique. Knowing formulas is also very essential or
else you will mess up with your analysis. Therefore, you need to be mindful
of the financial analysis method you are implementing to write your Harlan
Foundation case study solution. It should closely align with the business
structure and the financials as mentioned in the Harlan Foundation case
memo.
You can also refer to Harlan Foundation Harvard case to have a better
understanding and a clearer picture so that you implement the best strategy.
There are a number of benefits if you keep a wide range of financial analysis
tools at your fingertips.

 Your Harlan Foundation HBR Case Solution would be quite accurate


 You will have an option to choose from different methods, thus helping
you choose the best strategy.

Recommendation and Action Plan


Once you have successfully worked out your financial analysis using the most
appropriate method and come up with Harlan Foundation HBR Case Solution,
you need to give the final finishing by adding a recommendation and an
action plan to be followed. The recommendation can be based on the current
financial analysis. When making a recommendation,

 You need to make sure that it is not generic and it will help in
increasing company value
 It is in line with the case study analysis you have conducted
 The Harlan Foundation calculations you have done support what you
are recommending
 It should be clear, concise and free of complexities

Also, adding an action plan for your recommendation further strengthens


your Harlan Foundation HBR case study argument. Thus, your action plan
should be consistent with the recommendation you are giving to support your
Harlan Foundation financial analysis. It is essential to have all these three
things correlated to have a better coherence in your argument presented in
your case study analysis and solution which will be a part of Harlan
Foundation Case Answer.

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