Prepare an analysis of this case using the attached formatting template. Use the following to guide your analysis:
Describe the situation facing Missouri Can Company (MCC) at the time of the case. This should include the major problems facing the company and the decisions that need to be made. You should spend no time on corporate history. You must consider the past, but your analysis and recommendations should be forward looking.
List your specific recommendations for the firm in detail. Analyze and address all four divisions.
Explain why each recommendation was made including the information used and the logic (or analysis) applied to reach your conclusion. As you prepare your analysis, remember that no decision is complete until the financial impact of the decisions is determined.
Don’t forget that no strategic plan is complete without a financial analysis. Their current cost of capital is 10%.
If your recommendation(s) need to be taken in a particular sequence, be sure to indicate the proper sequence and the reasons for that sequence.
The company has a requirement that 40% of the net proceeds from the sale of any capital asset must be used to reduce debt.
Discuss the events or uncertainties that are most likely to cause trouble in the implementation of your recommendations and how you would react to them if they were to occur.
To assist you in applying concepts and principles related to strategic management in a diversified company, please review the PowerPoint presentation below.
