Mini Case – Executive Fruit

Essay by Nabil MohiadeenUniversity, Bachelor'sB, May 2007

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Mini Case - Executive Fruit

The purpose of this paper is to present and discuss financial planning tactics that the management team at Executive Fruit should consider in order to accomplish their growth plans for the company. Initially the paper will present methods for developing the company's financial plan, which include projections and forecasts. Later the paper will discuss financing options, both the types of financing available as well as the amount of financing to be evaluated. Finally, a detailed discussion highlighting the impacts of potential interest rate fluctuations, an exploration of alternative capital structures, and the possibility of outsourcing will be presented.

Financial Planning and Forecasting

George Hedderwick is working to develop a financial plan for the Executive Fruit by forecasting the projections for 2005, 2006 and 2007. The best method that George would need to follow in order to make the right financial and investment decisions is the financial planning method.

This method will require George to analyze and project for financial planning, balance sheets, income statements, budgets and other sources of cash. The financial planning method objective is to establish goals and standards to measure the plan performance and will be a part of the business' plan. The financial goals will relate to the business decisions as this interacts with financing decisions. For George, the early financial planning will help Executive Fruit to analyze and have a better response in case of any changes in the business decisions. Therefore, the steps that George can take to complete the financial planning will include analyzing the finance and investment decisions, setting short term and long term goals and coming up with a plan on how to achieve these goals.

Using the planning models will definitely assist in this process and will make it easier for...