reativity and diversity can lead to outcomes that both maximize profit and enhance social well-being. Business leaders use measurable factors to help determine design and development decisions, â€œgoâ€ or â€œno-goâ€ milestones, financial models, and many â€œwhat ifâ€ scenarios. In this process, the new product or service is considered as part of a system.
You rocked your BMC and received a great response from the experienced project manager (PM). As you read the feedback, you realize that itâ€™s now time to develop the financial component. In the comments, the PM also stated that no matter how good an idea is, to senior management, itâ€™s a â€œno-goâ€ if the new product or service does not produce sales.
In preparation for your funding pitch, which you will submit as your course project in Module Seven, the PM also warns that funding pitches are quick and decisive. Including too much information could overwhelm senior management, cause more questions, and erode the purpose of the funding pitch.
The PMâ€™s directive at this point is for you to develop aÂ 24-month pro formaÂ that demonstrates the potential profitability of the new product or service in an income statement. You will use the Module Six Assignment Template linked in the Guidelines for Submission section to complete this assignment.
You may use the current companyâ€™s income statement to project what can be added to the companyâ€™s profitability. This can be found in the companyâ€™s 10-K. Look to other companies in the marketplace with products or services similar to the one you are proposing as a basis for your projections. Additionally, you may use the companyâ€™s current year numbers and key assumptions based on your analysis of the market to project into the future. Remember, these numbers are purely speculative.
In the template, you will specifically address the following:
- Previous fiscal year: Identify historical information for the previous fiscal year.
- 24-month projections: Speculate projections for 24 months.
- Explanation of assumptions: Explain how you were able to speculate appropriate assumptions.
Guidelines for Submission
Submit the completedÂ Module Six Assignment Template Word DocumentÂ as a Word document. Sources should be cited according to APA style.
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