Chestnut Foods Case 14

Individual case analyses are equivalent to preparing an executive summary of the problem. The following format is REQUIRED:

I.Title Page

2. Recommendation – Short Version (3 sentences at most)

A solution must be recommended and supported by rational arguments. It is important to be able to articulate why a certain solution is recommended and to be able to defend it.There is usually not one correct solution to these case problems. But, there are incorrect solutions. For example, solutions that violate economic principles, or are inconsistent with financial theory, or are based on inconsistent assumptions, or violate ethical or legal standards are not acceptable solutions.Solutions not supported by data are not acceptable solutions.

3.Statement Problem – Do not repeat case – just state the problem to be solved.

This statement should briefly outline the problem presented in the case. Case details do not need to be repeated.The student should assume that the instructor has read the case. It is analogous to writing a report for a supervisor.

4. Analysis of Problem –

This statement should briefly outline the problem presented in the case. Case details do not need to be repeated.The student should assume that the instructor has read the case. It is analogous to writing a report for a supervisor. DO NOT OUTLINE PROCEDURES.

This section of the case analysis is where alternative solutions are explored. Pros and cons of different solutions should be presented. Application of theoretical models will be done in this section. Quantitative analysis should be done in exhibits and tables and referenced in this section.

5. Pros/Cons Alternative solutions.

*Exhibits/Tables/Charts – Attached. Must be labeled and organized with the paper. For example, Exhibit 1 has to be the first exhibit discussed in the paper. You would never start with Exhibit 4 for example.

**Important things to mention:

Why use divisional hurdle rates (figure 14.4)

Agree with Claire, Why?

Sell instrument, Why?