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									                               HARVARD UNIVERSITY
                         FACULTY OF ARTS AND SCIENCES
               BUSINESS PLANNING FOR CLOSELY HELD ENTERPRISES
                              MANAGEMENT E- 5610

Questions for the Kochman Case


   1. What financial problems are posed by KR+H’s operating strategy?

    2. Assuming KR+H can obtain external funds to make the capital expenditures, what
are your cash flow forecasts for the years 1993 through 1998? What is the value of
the business? To facilitate comparisons, please assume sales growth of 10% and
1992 profit margins. Assume that cost savings occur in the year after the
investments. You should also prepare forecasts using assumptions that you think
are appropriate.

    3. Assuming KR+H finances its investments internally, what are your cash flow
forecasts for the years 1993 through 1998? What is the value of the business? Use
the same cases examined in Question 2.

    4. Should KR+H finance capital expenditures internally or should it rely on external
financing? If you recommended external financing, what kind should it use and
how should it obtain it?

Questions for ENDONAV


Adapt EndoNav’s “Six Million Dollar Plan” so that the company can be financed
successfully by angel investors. Consider at least the flowing issues:

   1. Value proposition
         a. What is the company’s central value proposition?
         b. Does the company need to change its investor pitch? How so?
   2. Human Capital
         a. What skills and which individuals must EndoNav keep?
         b. Which people and position should be eliminated from the plan?
         c. How will the revised plan compensate for those people’s absences?
         d. Once EndoNav adjusts its team, how should managers go about creating a
            culture that will help the team succeed?
   3. Benchmarks
         a. What should the company’s key benchmarks be?
         b. How should the company adjust its schedule for those milestones?
   4. Financing
         a. How much money does the company need?
         b. How should it structure that funding?

								
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