# Resources for Developing a Financial Plan/Activities

| Unit 6.1-Resources for Developing a Financial Plan | Introduction | A Financial Plan | Presentation and Customization | Risk Assessment and Management | How Do I Qualify? | Summary | Resources | Activities | Assessment Return to Trade Finance Module 6: Financial Plan |

## Activity
### Activity 1: Project

(minimum 4 weeks)
Students should create a financial plan out of the information provided below, as either an individual or a group project. The objective of each financial plan is to seek funding for the penetration into any one to three major new country markets of their choice. The country choices can be determined by the evaluation of five countries (dependent upon the number of members in the group). Select one to three from the five based on preliminary research. Once the country (ies) are chosen, the students will prepare a financial plan to seek funding for the project based on the given details as provided for the activity. Should time permit, the members can present their plan to the other groups.
The following instructions should be given to the members of each group.

#### Instructions

You are to prepare a financial plan for Global Meat Distributors, Inc. (a fictitious company) based on the sections and information provided below. It is important to include all sections in order to have a complete plan.

#### Mission Statement

The mission statement should be written to present the goals and objectives of the company.
Some examples follow: AFLAC - Mission Statement To combine aggressive strategic marketing with quality products and services at competitive prices to provide the best insurance value for consumers.
ALBERTSONS - Mission Statement Guided by relentless focus on our five imperatives, we will constantly strive to implement the critical initiatives required to achieve our vision. In doing this, we will deliver operational excellence in every corner of the Company and meet or exceed our commitments to the many constituencies we serve. All of our long-term strategies and short-term actions will be molded by a set of core values that are shared by each and every associate.
AMERICAN STANDARD COMPANY- Mission Statement American Standard's mission is to "Be the best in the eyes of our customers, employees and shareholders."
AVON - Mission Statement The Global Beauty Leader: We will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty company most women turn to worldwide.
The Women’s Choice for Buying: We will become the destination store for women, offering the convenience of multiple brands and channels, and providing a personal high touch shopping experience that helps create lifelong customer relationships.
The Premier Direct Seller: We will expand our presence in direct selling and lead the reinvention of the channel, offering an entrepreneurial opportunity that delivers superior earnings, recognition, service and support, making it easy and rewarding to be affiliated with Avon and elevating the image of our industry.
The Best Place to Work: We will be known for our leadership edge, through our passion for high standards, our respect for diversity and our commitment to create exceptional opportunities for professional growth so that associates can fulfill their highest potential.
The Largest Women's Foundation: We will be a committed global champion for the health and well-being of women through philanthropic efforts that eliminate breast cancer from the face of the earth, and that empower women to achieve economic independence.
The Most Admired Company: We will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, and be a socially responsible, ethical company that is watched and emulated as a model of success.

#### Executive Overview

The CEO Anthony Masters executive profile which is provided below should be copied into the financial plan. Each member should create an executive profile based on his/her personal education and experience. Do not be concerned that a profile does not meet the needs of the financial plan. This exercise is intended for each member to reflect on his/her personal experience.
Executive Overview for Anthony Masters
Anthony Masters, Chairman
Widely known as an industry leader in the meat distribution industry, Anthony Masters is a Certified Public Accountant holding a master’s degree from Harvard Business School. Prior to starting Global Meat Distributors, Inc., he worked as an auditor for several distributors. Mr. Masters recognized the need for global distribution of beef and started 15 years ago Global Meat Distributors, which now controls 30% of all global distribution of beef from the United States. He has held the position of chairman on the National Meat Distributors board and is involved with several committees advising the President of the United States.
Some titles that each member may take follow:
* Chief Executive Officer
* Chief Operating Officer
* Chief Information Officer
* Chief Financial Officer
* Vice President of Sales and Marketing
* Vice President of Distribution

#### Executive Summary

This summary should be no more than a one page. It should briefly explain what the members evaluated and the outcome of that evaluation. It should support the need for funding and penetration of new markets that are recommended. Include any market segments that were rejected during the evaluation process and reasons why they were rejected. Remember this summary is a compilation of the sections that follow it.

#### Organization Chart

Create an organization chart consistent with the titles utilized in the executive overview section.

#### Product and Market Overview

This section can be developed from the assumptions made in the market analysis and potential section. This section should include facts about the company such as the following:
* All beef is born and raised in the United States.
* All beef is fed natural grains with no hormones or additives.
* All beef is slaughtered in a humane way.
* Domestic distribution is the fastest in the nation.
* The company supplies 30% of all beef distributed in the United States.
* Inclusion of any current overseas markets where there is distribution and the success of market penetration

#### Market Analysis and Potential

Evaluate the potential country(ies) as requested. The analysis should include the following:
* Country demographics that pertain to the distribution of your product, such as ports, roads, railroads and any logistical problems that might be present
* Per capita income that would enable people to buy your product
* Cultural issues that might impact the population’s decision to buy your product (religious, vegetarian, etc.)
* Any marketing issues that may influence the purchase of your product, including the treatment of the animals through the growth and slaughtering process, the way the cattle were raised, the local competition and any product and/or packaging adjustments that may be required.
* Any political issues between the United States and the country in question that would influence your ability to penetrate their markets.
* The ability to convert their currency to US dollars and repatriate your profits
* The ways you intend to distribute the product by contracting with a distributor or through direct sales with your own sales force.

#### Funding Rationale

Here build your case for the funding required to meet the objectives set forth in your market analysis and potential. This section should include all entities from which the company can seek funding: Ex-Im Bank, SBA and insurance programs. Explain the ways to qualify for each.

#### Financial Statements

                      Global Meat Distributors, Inc.
                            Balance Sheet
                         December 31, 20XX
                                                       (000's omitted)
    Current Assets
       Cash..................................................................................................$150,000
       Inventory............................................................................................1,785,000
       Prepaid Income Taxes.............................................................................35,000
       Deposits................................................................................................. 1,500
          Total Current Assets...................................................................$1,971,500
    Current Liabilities
       Accounts Payable................................................................................$800,000
       Note Payable to Bank........................................................................... 400,000
          Total Current Liabilities................................................................$1,200,000
    Long Term Liabilities
       Subordinated Debt................................................................................$150,000
    Stockholders' Equity
       Common Stock........................................................................................$3,000
       Retained Earnings
          Current Year..................................................................................$169,400
          Prior Year....................................................................................... 449,100
          Total Stockholders' Equity...............................................................$621,500
                      Global Meat Distributors, Inc.
                         Income Statement
                         December 31, 20XX
                                                       (000's omitted)
    Sales.......................................................................................................$7,700,000
    Cost of Sales.............................................................................................7,000,000
       Gross Profit.........................................................................................$ 700,000
    Selling and Administrative Expenses.............................................................. 440,000
       Operating Profit......................................................................................$260,000
    Bank Interest.................................................................................................. 36,000
       Pretax Profit..........................................................................................$242,000
    Income Taxes..................................................................................................72,600
       Net Profit...............................................................................................$169,400
The following ratios should be calculated using the information provided on Global Meat Distributors, Inc.:
* Current ratio
* Quick ratio
* Accounts receivable turnover
* Average collection period
* Debt to equity ratio (the subordinated debt listed on the balance sheet is a loan to the company by Anthony Masters and should be removed from the debt section and added to the equity for the calculation of this ratio)
* Return on assets

#### Source Materials

Include in this section all research materials used.

### Activity 2: Internet Research

This is a much shorter activity and can be used in conjunction with the project above or as a separate assignment.
Have each student visit the websites for:
* Ex-Im Bank
* SBA
* One Factoring Company (one the student finds)
* One Private Bank (one each student finds, each selecting a different bank)
Identify the funding available from each organization and the requirements for funding.