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Introduction

AGGREGATE PLANNING AT GREEN MILLS Case Study is included in the Harvard


Business Review Case Study. Therefore, it is necessary to touch HBR
fundamentals before starting the AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT
GREEN MILLS case analysis.
To write an effective Harvard Business Case Solution, a deep AGGREGATE
PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS 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
AGGREGATE PLANNING AT GREEN MILLS 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.

AGGREGATE PLANNING AT GREEN


MILLS 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 AGGREGATE PLANNING AT
GREEN MILLS, etc. can be used. Porter’s five forces analysis for AGGREGATE
PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS 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.

AGGREGATE PLANNING AT GREEN


MILLS Financial Analysis
The third step of solving the AGGREGATE PLANNING AT GREEN MILLS Case
Study is AGGREGATE PLANNING AT GREEN MILLS Financial Analysis. You can go
about it in a similar way as is done for a finance and accounting case study. For
solving any AGGREGATE PLANNING AT GREEN MILLS case, Financial Analysis is
of extreme importance. You should place extra focus on conducting AGGREGATE
PLANNING AT GREEN MILLS financial analysis as it is an integral part of the
AGGREGATE PLANNING AT GREEN MILLS Case Study Solution. It will help you
evaluate the position of AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE
PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT
GREEN MILLS calculations
 Company’s financial position is evaluated.

Another way how you can do the AGGREGATE PLANNING AT GREEN MILLS
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. AGGREGATE PLANNING AT GREEN MILLS Financial analysis can, therefore,
give you a broader image of the company.

AGGREGATE PLANNING AT GREEN MILLS NPV


AGGREGATE PLANNING AT GREEN MILLS's calculations of ratios only are not
sufficient to gauge the company performance for investment decisions. Instead,
investment appraisal methods should also be considered. AGGREGATE
PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN
MILLS 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 AGGREGATE
PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS NPV will give you
an insight into the value generated if you invest in AGGREGATE PLANNING AT
GREEN MILLS. 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 AGGREGATE PLANNING AT GREEN MILLS’s NPV, you should
also consider other capital budgeting techniques like AGGREGATE PLANNING AT
GREEN MILLS’s IRR to evaluate and fine-tune your investment decisions.

AGGREGATE PLANNING AT GREEN MILLS DCF


Once you are done with calculating the AGGREGATE PLANNING AT GREEN
MILLS NPV for your finance and accounting case study, you can proceed to the
next step, which involves calculating the AGGREGATE PLANNING AT GREEN
MILLS DCF. Discounted cash flow (DCF) is a AGGREGATE PLANNING AT GREEN
MILLS 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 AGGREGATE PLANNING AT GREEN MILLS excel for the
DCF analysis.
To calculate the AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN
MILLS 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

AGGREGATE PLANNING AT GREEN MILLS 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)
AGGREGATE PLANNING AT GREEN MILLS WACC
When making different AGGREGATE PLANNING AT GREEN MILLS's calculations,
AGGREGATE PLANNING AT GREEN MILLS 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. AGGREGATE PLANNING AT GREEN MILLS’s
WACC will indicate the rate the company should earn to pay its capital
suppliers. AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS WACC, the investor will
go ahead with the investment as a positive value would be generated.

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AGGREGATE PLANNING AT GREEN MILLS IRR


After calculating the AGGREGATE PLANNING AT GREEN MILLS WACC, it is
necessary to calculate the AGGREGATE PLANNING AT GREEN MILLS IRR as well,
as WACC alone does not say much about the company’s overall situation.
AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING
AT GREEN MILLS NPV.
There are two ways to calculate the AGGREGATE PLANNING AT GREEN MILLS
IRR.

1. By using a AGGREGATE PLANNING AT GREEN MILLS 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

AGGREGATE PLANNING AT GREEN MILLS IRR impacts your finance case solution
in the following ways:

 If IRR>WACC, accept the alternative


 If IRR<WACC, reject the alternative

AGGREGATE PLANNING AT GREEN


MILLS Excel Spreadsheet
All your AGGREGATE PLANNING AT GREEN MILLS calculations should be done in
a AGGREGATE PLANNING AT GREEN MILLS xls Spreadsheet. A AGGREGATE
PLANNING AT GREEN MILLS excel spreadsheet is the best way to present your
finance case solution. The AGGREGATE PLANNING AT GREEN MILLS Calculations
should be presented in AGGREGATE PLANNING AT GREEN MILLS excel in such a
way that the analysis and results can be distinguished to the viewers. The point
of AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS calculations sheet more
meaningful, you should:

1. Think about the order of the AGGREGATE PLANNING AT GREEN MILLS xls
worksheets in your finance case solution
2. Use more AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS 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

AGGREGATE PLANNING AT GREEN


MILLS Ratio analysis
After you have your AGGREGATE PLANNING AT GREEN MILLS calculations in a
AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS
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.

AGGREGATE PLANNING AT GREEN


MILLS Valuation
AGGREGATE PLANNING AT GREEN MILLS Valuation is a very fundamental
requirement if you want to work out your Harvard Business Case Solution.
AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT
GREEN MILLS 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.
AGGREGATE PLANNING AT GREEN MILLS 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
AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS case
solution, you can rate them on numerous aspects, such as:

 Feasibility
 Suitability
 Flexibility

Implementation
Once you have read the AGGREGATE PLANNING AT GREEN MILLS HBR case
study and have started working your way towards AGGREGATE PLANNING AT
GREEN MILLS Case Solution, you need to be clear about different financial
concepts. Your Mondavi case answers should reflect your understanding of the
AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE
PLANNING AT GREEN MILLS case study solution. It should closely align with the
business structure and the financials as mentioned in the AGGREGATE
PLANNING AT GREEN MILLS case memo.
You can also refer to AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS
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 AGGREGATE PLANNING AT GREEN MILLS 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
AGGREGATE PLANNING AT GREEN MILLS HBR case study argument. Thus, your
action plan should be consistent with the recommendation you are giving to
support your AGGREGATE PLANNING AT GREEN MILLS 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 AGGREGATE PLANNING AT GREEN MILLS Case Answer.

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