Please complete the Economic Outlook section of Business Valuation Template. See Guideline & Rubic and address each Critical Element
ACC 345 Milestone Three Guidelines and Rubric ACC 345 Milestone Three Guidelines and Rubric Overview: This milestone will help you complete Section IV of the final project. You will analyze your selected company using SWOT, industry, and economic analysis. Discuss any emerging trends in technologies that affect your company. Prompt: Produce a financial statement analysis and valuation report that summarizes the financial health, projected future performance, and estimated value of the publicly traded (S&P 500) company that you selected at the beginning of the course. As an independent financial accounting analyst working for a major trade journal, your report is intended to inform a general audience about the overall financial well-being of the company and how it compares to a major competitor. Your report should cover information of interest to both internal and external stakeholders—summarizing major findings, suggesting ways to improve operational performance, and assessing investment potential. Keep in mind that brief, clear communications are essential in effectively reaching business and media audiences. Specifically, the following critical elements must be addressed: I. Industry and Economic Analysis. This section will focus on evaluating the selected company’s industry, its market structure, competitors, supply and demand, regulations, outlook or forecast, and other relevant factors specific to that industry. The section should also cover macro and microeconomic trends. This considers current monetary policy, GDP growth, the current economic health of the country of origin, and/or the company's global presence, all of which are relevant for valuing a company. A. General economic overview. This will explore trends in economic indicators. It will also cover output of goods and services produced by the domestic and global economy. i. Economic output and consumption. Identify national trends that could impact your chosen company or its industry as a whole based on macroeconomic qualitative data. ii. Current monetary and trade policy. Evaluate upcoming changes to policies or regulations that would impact your selected company or its industry. iii. Explain relationships these policies and regulations would have with the company’s sales or expenses. B. Industry analysis. This piece involves researching the industry in which the target company operates to understand its strengths, weaknesses, opportunities, and threats. It will explore the following issues: i. Supply and demand. Ascertain key supply and demand issues relevant to your company's industry, pinpointing critical issues that could benefit or harm your chosen company's operations. ii. Market share and competitive landscape. Approximate your company's market share within its own industry, and distinguish its strengths and weaknesses from those of its major competitors. iii. Regulation. Evaluate new regulation that is specific to your chosen company's industry, and determine whether it benefits or harms your company. iv. Employment issues. Explain how the labor markets and the constraints that exist impact your company’s operations. v. Industry outlook. Determine how industry trends and relevant emerging technologies impact your chosen company's industry in the future. Rubric Guidelines for Submission: Your milestone should be completed using the Economic Outlook Section of the Business Valuation Report template. Sources should be cited according to APA Style. For the analysis, use and submit the pertinent sections of the Business Valuation Model Excel file. Include a link to the chosen company’s financial information for confirmation purposes. Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value Industry and Economic Analysis: General Economic Overview: Output and Consumption Identifies national trends that could impact the chosen company or its industry as a whole based on macroeconomic qualitative data Identifies national trends that could impact the selected company but does not base findings on macroeconomic qualitative data Does not identify national trends that could impact the chosen company or its industry 12 Industry and Economic Analysis: General Economic Overview: Monetary and Trade Policy Evaluates upcoming changes to policies or regulations that would impact the selected company or its industry Evaluates upcoming changes to policies or regulations, but response contains errors or is inaccurate Does not evaluate upcoming changes to policies or regulations 12 Industry and Economic Analysis: General Overview: Policies and Regulations Explains the relationships the policies and regulations would have with the company’s sales or expenses Explains the relationships the policies and regulations would have with the company’s sales or expenses, but explanation is cursory, contains errors, or is inaccurate Does not explain the relationships the policies and regulations would have with the company’s sales or expenses 12 Industry and Economic Analysis: Industry Analysis: Supply and Demand Ascertains key supply and demand issues relevant to the selected company’s industry and pinpoints critical issues that could benefit or harm the company Ascertains key supply and demand issues relevant to the selected company’s industry but does not pinpoint critical issues that could benefit or harm the company Does not ascertain key supply and demand issues nor pinpoint critical issues that could benefit or harm the company 12 Industry and Economic Analysis: Industry Analysis: Market Share and Competitive Landscape Approximates the selected company’s market share within its own industry and distinguishes its strengths and weaknesses from its major competitors Approximates the selected company’s market share within its own industry but does not distinguish its strengths and weaknesses from its major competitors Does not approximate the selected company’s market share within its own industry nor distinguish its strengths and weaknesses from its major competitors 12 Industry and Economic Analysis: Industry Analysis: Regulation Evaluates new regulation that is specific to the chosen company’s industry and determines whether it benefits or harms the company Evaluates new regulation that is specific to the chosen company's industry but does not determine whether it benefits or harms the company Does not evaluate new regulation that is specific to the chosen company’s industry nor determine whether it benefits or harms the company 12 Industry and Economic Analysis: Industry Analysis: Employment Issues Explains how the labor markets and the constraints that exist impact the selected company's operations Explains how the labor markets and the constraints that exist impact the selected company’s operations, but response contains errors or is illogical Does not explain how the labor markets and constraints that exist impact the selected company’s operations 12 Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value Industry and Economic Analysis: Industry Analysis: Industry Outlook Determines how industry trends and relevant emerging technologies will impact the chosen company’s industry in the future Determines how industry trends and relevant emerging technologies will impact the chosen company's industry in the future, but response contains errors or is illogical Does not determine how industry trends and relevant emerging technologies will impact the chosen company’s industry in the future 12 Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 4 Total 100% ACC 345 Milestone Three Guidelines and Rubric Rubric ACC 345 Business Valuation Report Template Summary Business Valuation Report of Tesla Inc. Tesla Inc. Report Date, 2021 Contents INTRODUCTION3 Nature, Background, and History4 Facilities4 Customers4 Management4 Competition4 Strengths and Weaknesses4 Ownership4 Major Shareholder Transactions4 Business Risks4 FINANCIAL ANALYSIS5 Financial Analysis Overview5 Balance Sheets5 Assets5 Liabilities5 Stockholder’s Equity6 Income Statements6 Normalization Adjustments6 ECONOMIC OUTLOOK7 Industry Analysis7 Industry Overview7 Competitive Landscape7 Products, Operations and Technology7 Sales and Marketing7 Finance and Regulation7 Regional and International Issues7 Labor Trends7 General Economic Analysis7 Interest rates7 GDP7 International and Domestic Trade Policy7 Monetary Policy7 Fiscal Policy7 BUSINESS VALUATION8 Valuation Approaches8 Asset Approach8 Income Approach8 Market Approaches8 Selected Method - Income Approach8 Prospective Analysis8 Discount rate9 Valuation calculation10 DISCOUNTS AND PREMIUMS11 Discount for Lack of Control11 Discount for Lack of Marketability11 FINAL CALCULATION OF VALUE12 SOURCES13 INTRODUCTION Description of the Assignment Guidance: Assume the intended use is for the sale of a minority stake of the company you’re valuing. This should be stated in this section of the report. Standard of Value Guidance: Assume the premise of value is that the business is a “going concern” as opposed to liquidation or other premise. Assume the standard of value is fair market value, as opposed to fair value, investment value, liquidation value or some other standard. This should be stated in this section. Tesla Inc. Brief History/Overview Tesla is an American Electric and Clean Energy based company founded in the year 2003. The