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Pages:
1 page/≈275 words
Sources:
3 Sources
Style:
APA
Subject:
Business & Marketing
Type:
Essay
Language:
English (U.S.)
Document:
MS Word
Date:
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Topic:

Recommendations of the Investment Committee of a Health Care Equipment Manufacturer

Essay Instructions:

In this assignment, you will take on the role of a senior member of the finance team assigned to lead the investment committee of a health care equipment manufacturer. Your team is evaluating a “make-versus-buy” decision that has the potential to improve the company’s competitiveness, but which requires a significant capital investment in new equipment.
create a brief memo of 1-2 pages to the CEO outlining your
committee’s recommendations. You may organize the memo as you see fit, but it must include the following:
• A clear opening statement of your recommendation for or against the project.
• A brief synopsis of the processes and factors that led to your recommendations.
o What information did you gather, and how did you get it?
o From whom did you seek input, and why?
• A summary of the strategic benefits and risks in pursuing (or not pursuing) this project, including:
o Highlights of the main data points that support your position
o Acknowledgement of the data points that oppose your argument
o Identification of open/unresolved items
• An identification of the scenario that, from a purely financial perspective, represents the most accurate estimate of the anticipated results and your rationale as to why.
• An identification of non-financial elements that need to be considered for the recommended scenario.
• Any assumptions in project economics can have a significant impact on the result. Identify 3 financial elements/assumptions in your analysis that would make this project financially unattractive. Be as transparent and candid with your BOD as possible. What would have to be true for this to be a bad investment?
• A summary restating your recommendation and key action items.

Essay Sample Content Preview:

Cost-Benefit Analysis
Student’s Name
Institutional Affiliation
Course Number and Name
Instructor Name
Due Date
Cost-Benefit Analysis
MEMO
To: Chief Executive Officer
From: [Insert Your Name]
Date: 7th June 2022
Re: Recommendations of the Investment Committee of a Health Care equipment Manufacturer
The above subject matter duly refers.
The committee has comprehensively analyzed the potential advantages and demerits of the proposed project of purchasing or manufacturing the required equipment. Based on the evaluation findings, the members of my team have unanimously proposed that we should adopt the purchase approach. Noticeably, several processes and factors influenced the committee’s decision. First, we assessed whether buying the equipment would be cheaper than providing or producing it internally. Research evidence suggests that if the cost of buying is lower than in-house manufacturing, the reasonable decision is to outsource (Taschner & Charifzadeh, 2016). Second, we considered the aspects of vertical integration, especially concerning our company’s ability to streamline the operations for the internal production of the equipment. Since we have not specialized in manufacturing the equipment, it would be difficult for our company to attain the competitive edge, efficiency, and economies of scale enjoyed by suppliers of such products (Gandellini ...
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