The Financial Activities of MillerCoors Company

Topic

The Financial Activities of MillerCoors Company

Instructions

Select a listed company from any industry and in any country;

You are required to write a report, 2,000 words in length. The report is to be split into two sections, section A and section B. You can split the report however you see fit. The report is to be for the Chief Executive Officer of the company that you have chosen, and its purpose is to inform the management of how the firm has responded to an event.

The second part of the report is to inform the management of the most effective way of the firm entering into/or starting a new business line, new product, new market, etc. by expanding its asset base.

You may place any supporting data or calculations in the Appendices of the report, but the main report writing should have 2,000 words.

SECTION A 

  1. Evaluate the company’s performance and financial situation. You should discuss the company’s performance under any of the following situations which may have occurred recently in the company’s history (10 Years, previous). 

Either;

  1. The economic or political situation. e.g. financial crisis, newly enacted law, government policy, etc. (externally imposed event on the firm).

Or;

  1. A special event. e.g. Merger or corporate restructuring, Management Buy-Out, Loss of Key Personnel, new product or technology developed by the firm, scandal, (attached to the firm, or its industry), etc. (‘Internal’ management decisions enacted by the firm).

The report should address the following aspects of the firm’s decision outcomes, and its responses, in relation to the aspect of financial management. The company’s strategy, governance, sustainability, human rights issues, corporate responsibility, risks and uncertainties, attached to the financial aspects of the firms’ decisions.

SECTION B 

  1. Considering your firm that you have chosen in part a) imaginethat your firm was conducting a finance raising exercise to expand its asset base. The report should detail the risk and benefits of both of the following choices;
    1. Expansion of a line which the firm is already involved to some extent. (Example: Volkswagen selling a new model of car, into a new or existing market).

And;

  1. Expansion into an entirely new area of operation. (Example: Volkswagen introducing Banking Services in Brazil).

The report within section b) should also discuss and assess the likely consequences of choosing any of the methods for financing assets which exist. (Debt, Equity, or Retained Earnings). This discussion should focus on the costs and benefits of financing choices attached to each type of project.

The recommendations of the report are to consider appropriateness of the type of finance to any project type.

Answer preview

The report aims to highlight two activities of MillerCoors Company. First, the report will dwell on the laws that were enacted to curb alcoholic beverages. The company experienced huge losses during that period which saw the company lay off some workers. The report will highlight some of the strategies it implemented during that time. It will primarily dwell on the response that the company had towards the problem. The second part of the report will give a plan of expansion in a company’s line of trade. The company wishes to establish a new plant that manufactures whiskey brand hence the report will explore the relevant financial issues. Also, the report will look at the company’s intention to begin an entirely different business of hotel management. Additionally, the report will look at the various methods of financing assets that will be suitable for the company.

Word count: 2183