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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:
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,
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.
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.
Another way how you can do the Harlan Foundation financial analysis is
through financial modelling. Financial Analysis through financial modelling is
done by:
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.
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:
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 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:
Harlan Foundation IRR impacts your finance case solution in the following
ways:
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:
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:
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.
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