Short-Term Rental Property in Comparison to Dividend Stock Using CAPEX Analysis

Discussion Questions
What are the assumptions to use and why for the CAPEX analysis?
What are the evaluation criteria results in scenarios A, B, and C?
What are your retirement income recommendations for Matt and Rosie? What are alternative
options, if any?
What other risks should Matt and Rosie consider?
FINC 495 Contemporary Issues in Finance Practice
Individual Case Study Instructions
Weeks 1-7
INSTRUCTIONS:
For the Weekly Individual Case Study, write a three to four-page (900 to 1,200 word) report and answer the case study questions as indicated by expressing your position. Keep in mind that for the Weekly Individual Case Study you will want to
1. Read and examine the case thoroughly, highlight relevant facts, and underline key problems.
2. Focus your analysis. Identify two to five key problems. ...
3. Uncover potential solutions and/or changes needed. Review course readings, discussions, outside research, and your experience.
4. Select the best solution.
When answering Individual Case Study questions, you can showcase your ability to analyze a situation or business dilemma, identify the important issues, and develop sound conclusions that flow from your analysis.
For this reason, it's important to use a logical framework for breaking down and analyzing the case. Therefore, the following template for analyzing a case study is a useful guide.
Preliminary Work
 Critical reading of the case
o Make notes and highlight the numbers and ideas that could be quoted.
o Provide a general description of the situation and its history.
o Name all the problems you are going to discuss in your report.
o Specify the theory used for the analysis.
o Present the assumptions that emerged during the analysis, if any.
Analysis of the Case
 Executive Summary of the Case
o Describe the purpose of the current case study.
o Provide a summary of the company.
o Briefly introduce the problems and issues found in the case study
o Discuss the theory you will be using in the analysis.
o Present the key findings
 Focusing the Analysis
o Single out as many problems as you can, and briefly mark their underlying issues. Then make a note of those responsible. In the report, you will use two to five of the problems, so you will have a selection to choose from.
o Describe the detected problems in more detail.
o Indicate their link to, and effect on, the general situation.
o Explain why the problems emerged and persist.
Table 1.0 An overview of a Case Analysis
Identify the main research problem
For example, the loss of brand identity is a problem faced by
Starbucks
Analyze the main underlying causes of the existing problem
 When and why did Starbucks lose its brand identity?
 Were there certain changes in the company’s strategy before the problem occurred?
Establish the cause-and-effect relations between the various factors
Starbucks’ brand image – possible sources of influence:
 The inner vision of the company
 Advertising
 The design of the stores
Formulate the best solutions to address the problem
 Paying more attention to advertising campaigns
 Reconsidering the vision and mission statements
 Improving the design of stores
 Findings. This is where you present in more detail the specific problems you discovered in the case study. In this section, you will:
o Present each problem you have singled out.
o Justify your inclusion of each problem by providing supporting evidence from the case study and by discussing relevant theory and what you have learned from your course content.
o Divide the section (and following sections) into subsections, one for each of your selected problems.
 Proposed Solutions
o List realistic and feasible solutions to the problems you outlined, in the order of importance.
o Specify your predicted results of such changes.
o Support your choice with reliable evidence (i.e., textbook readings, the experience of famous companies, and other sources of external research).
 Recommendations. This is the section of your analysis where you make your recommendations based on your research and conclusions. Here you will:
o Decide which solution best fits each of the issues you identified.
o Explain why you chose this solution and how it will effectively solve the problem.
o Be persuasive when you write this section so that you can drive your point home.
o Be sure to bring together theory and what you have learned throughout your course to support your recommendations.
o Define the strategies required to fulfill your proposed solution.
o Indicate the responsible people and the realistic terms for its implementation.
o Recommend the issues for further analysis and supervision.
 Implementation. In this section, you will provide information on how to implement the solutions you have recommended. You will:
o Provide an explanation of what must be done, who should take action, and when the solution should be carried out.
o Where relevant, you should provide an estimate of the cost of implementing the solution, including both the financial investment and the cost in terms of time.
 Conclusions. This is the section in which you summarize each issue or problem and present your argument for each chosen solution. Here you will:
o Present a summary of each problem you have identified.
o Present plausible solutions for each of the problems, keeping in mind that each problem will likely have more than one possible solution.
o Provide the pros and cons of each solution in a way that is practical.