This paper will address three simulations from the student website; the simulations were “Working Capital Management, Managing International Acquisitions, and Risk Management”.
For these three simulations, this paper will describe the key financial challenges facing the organization(s) in the simulation. In addition, this paper will evaluate and analyze each of the simulations while providing research on a selected Fortune 500 company that faces similar challenges to those identified from the simulations.
A description of the company will include an evaluation of the company’s financial performance, along with a brief discussion of short-term and long-term financial strategies that could improve the company’s financial performance. In addition, consideration will be given to whether a merger or acquisition could positively impact chosen Fortune 500 Company’s strategic outlook, a description of the pros and cons for such a venture, including possible synergies, cost savings, and moral issues will be provided (Syllabus, 2004, p.11).
Most companies merge to add value. Both companies together should have more value than individually. Along with the simulations, this paper will review the Fortune 500 companies of Fannie Mae, Bank of America, and Merrill Lynch and the effects of possible mergers.
Strategic financial management is the process of determining the major goals of an organization and the policies and strategies for managing an organization’s resources to meet the business goals and objectives.
Strategic financial management is essential in the complex and demanding areas of corporate finance in which there is a close interaction between theory and practice in the business environments of today. Working Capital Management Simulation The art of Working Capital Management is much like juggling. A manager handling day-to-day cash of a company has to balance many things that could include, collections, bad debts, disbursements, future revenues, borrowing.