Action Plan SF003

MASTER OF BUSINESS ADMINISTRATIONCompetency-Based Learning
Action Plan for Achieving/Mastering Competency
Student Name: _____________________________
Competency:
_____________________________
For each learning objective in the rubric scored as 1 or a 0, please complete the table below.
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•
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Once you have developed your reflection and action plan, return the form to your Academic Coach & the SME for
review.
Your SME will review your MBA Action Plan, and either approve it or return for revision. Once this form is approved,
your SME will submit this signed form to the MBA Program Director for review.
If approved by the MBA Program Director, this MBA Action Plan will be forwarded to you and your Coach, which will
permit the competency to be unlocked.
When submitting your revised work, please also upload this form.
Note: You are responsible for completing your SME-approved action plan. The SME’s signature does not automatically ensure that the
competency will be achieved or mastered.
When developing your action plan, please consider the following:
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•
•
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Does your improvement strategy address the SME’s comments fully?
Resources needed (e.g., Walden’s Writing Center, Academic Skills Center).
Questions for your SME to further assist you with Learning Objectives/Rubric scoring criteria.
Questions/Clarification items for the SME.
***If more than one rubric objective is involved, copy cells below and add them to the document*** Each objective not met in the Attempt
Three should be listed in the table below with SME feedback, your reflection on SME feedback, and a list of actions that will help you to
improve your work.
EXAMPLE:
Learning Objective
Learning Objective 1.1 Analyze a workplace for positive attributes that promote a culture of creativity
(Delete this example, including the word EXAMPLE, and type objective number and the description of
the objective for which you scored “1” or “0”. Delete these instructions in parentheses.)
EXAMPLE:
SME Feedback
Two positive attributes were provided for each scenario, but explanations were not given as to why and
how each attribute contributes to the climate for creativity.
(Delete this example, including the word EXAMPLE, and copy SME feedback comments explaining why
you did not achieve this learning objective. Delete these instructions in parentheses.)
EXAMPLE:
Reflection on SME Feedback
In my assessment I listed two positive attributes of creativity found in each scenario, but I did not
explain why and how those attributes encourage creativity in a specific situation. I have no questions at
this time.
(Delete this example, including the word EXAMPLE, and explain how you interpret SME feedback
comment. If you have any questions or need further clarification of SME feedback, list them here.
Delete these instructions in parentheses.)
EXAMPLE:
Steps for improvement
I will add a section in which I will explain why and how my two positive attributes encourage creativity
in each given scenario. I will use academic sources to support my explanations.
(Delete this example, including the word EXAMPLE, and describe specific steps that will help you to
revise your work and ensure that your assessment meets this particular rubric objective. Delete these
instructions in parentheses.)
If you need more space for
another objective that you did not
achieve, delete text in this cell,
then copy the cells above and
paste them here.
SME Recommendation(s):
SME signature:
Date:
Version 2.0
SF003: Sources and Uses of Short-Term Capital
Short Answer Submission Form
Your Name: Shericia Cobia
Your E-mail Address: shericia.cobia1@waldenu.edu
Instructions
This Competency includes a Short-Answer Response Assessment. Write your response to each prompt below in the space provided. The Rubric,
which will be used by the Competency Assessor to evaluate your responses, is beneath the prompts. Carefully review the Rubric rows associated
with each prompt to provide a complete response.
When writing your response, begin typing where it reads “Enter Your Response Here.” Write as much as needed to satisfy the requirements of
the prompt (as defined in the Rubric). Be sure to support your responses with connections to professional sources.
Your Assessment responses require references (in APA style) to support your thinking. You will list your references at the end of this template
where “References” are noted. If you need additional information regarding how to correctly cite, and/or reference sources, please visit the
Walden Writing Center at http://academicguides.waldenu.edu/writingcenter/apa/citations
To learn more about effective paraphrasing strategies, visit the Walden Writing Center at
http://academicguides.waldenu.edu/writingcenter/evidence/paraphrase/effective
©2015 Walden University
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Review the following example item and response for a sample that meets expectations.
Sample Prompt:
Choose a definition of organizational culture, and explain whether you agree or disagree with the definition. Use examples from your
own professional experience to support your response.
Response:
Whitehurst (2016) explained “organizational culture is defined by how people in an organization interact with each other” (para. 2).
While I agree that this is one aspect of organizational culture, the definition does not capture the complex factors that contribute to
organizational culture. When I started my first job after finishing my undergraduate degree in business, I worked for an organization
whose main headquarters were in Dubai. When I traveled to Dubai for the first time, I realized that the culture of the Dubai office was
largely influenced by the society’s culture in Dubai. I found that the organization lacked one cohesive culture and that, depending on
regional locations, each office had its own culture. International organizations often face many challenges in maintaining a cohesive
organizational culture (Watkins, 2013). I found this observation to be true in my experience. For example, the Dubai office seemed to
endow their employees with more allowance for self-direction when compared with our domestic offices. Although people’s
interactions with one another contributed to the organization’s culture, there were other factors like location, management style, and
societal norms that impacted a business culture as well.
References
Watkins, M. D. (2013, May 15). What is organizational culture? And why should we care. Harvard Business Review. Retrieved from
https://hbr.org/2013/05/what-is-organizational-culture
Whitehurst, J. (2016, October 13). Leaders can shape company culture through their behaviors. Harvard Business Review. Retrieved from
https://hbr.org/2016/10/leaders-can-shape-company-culture-through-their-behaviors
Note: References are included at the end of a Short-Answer Assessment but are included here as an example of an accurate APA
reference list.
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1. You are a graduate student who is being considered for an internship on the finance team of a national sporting goods retailer. In your first
interview, you are asked by a recent hire to explain the differences between gross working capital, net working capital, and net operating
working capital and their relationship to the cash conversion cycle. How would you explain these? (3–4 paragraphs)
Your Response
Working capital management is crucial for any company. It is vital to make sure that the current liabilities are kept at a sustainable level.
Keeping more current assets increases the liquidity of a company as opposed to keeping high amounts of current liability. Still, one has to take
note of the three main types of working capital (WC). They include the gross WC, the net, and the operating WC.
The gross working capital refers to the assets the business intends to use for a one-year duration. It is computed as the sum of all the
liquid assets. Some of the assets include the inventory which is purchased with the intentions of being sold (Kenton, 2019). The cash and cash
equivalents comprises of the cash at hand, the cash in the bank and the marketable securities. It also includes the supplies and the account
receivables brought about by the credit sales. Any prepaid expenses are also included in the current assets section.
The net working capital is the difference between the current assets and current liability. The latter refers to obligations to be honored
within a one-year period. They include account payables that entail the amounts owed to the various suppliers. Besides, it also includes the short
term loans repayable within and one-year period (Net Operating Working Capital, n.d.). The accrued expenses are also considered as part of the
current liabilities.
Furthermore, the net operating working capital (NOWC) is calculated as the difference between the current assets which are required in
operations and the liabilities that do not bear interest. The assets considered are the cash, account receivable and inventories while the liabilities
are the account payable and the accrued expenses. In addition, cash is vital for the day to day operations of a business. Cash is not only used to
purchase inventory and pay the multiple expenses but also to achieve the strategic plans of the business (Codjia, 2017). Notably, it is a vital part
of business management in any company. Thus, it is fundamental to make sure a lot of money is not tied up in the inventory and other gross
working capital.
References
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Codjia, M. (2017, November 21). What Is the Relationship Between Working Capital & the Cash Conversion Cycle? Retrieved from
https://smallbusiness.chron.com/relationship-between-working-capital-cash-conversion-cycle-25217.html
Kenton, W. (2019, July 25). Gross Working Capital. Retrieved from https://www.investopedia.com/terms/g/grossworkingcapital.asp
Net Operating Working Capital (n.d.). Retrieved from https://xplaind.com/772531/net-operating-working-capital
Rubric
0
Not Present
1
Needs Improvement
2
Meets Expectations
3
Exceeds Expectations
Sub-Competency 1: Describe basic working capital concepts (gross working capital, net working capital, net operating working capital, cash
conversion cycle).
Learning Objective 1.1:
Describe the
differences between
gross working capital,
net working capital,
and net operating
working capital.
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Description of the
differences is missing.
Description of the
differences is inaccurate
and/or incomplete.
Description of the
differences is accurate and
complete.
Description makes no clear
distinction between gross
working capital and net
working capital.
Description makes a clear
distinction between gross
working capital and net
working capital.
Description makes no clear
distinction between net
working capital and net
operating working capital.
Description makes a clear
distinction between net
working capital and net
operating working capital.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Descriptions include
references to the given
business context, i.e.,
makes use of the facts in
the given scenario.
4
0
Not Present
Learning Objective 1.2: Description of the
Describe the
relationship between gross
relationship between
working capital, net
gross working capital,
working capital, net
net working capital, net operating working capital,
operating working
and the cash conversion
capital, and the cash
cycle is missing.
conversion cycle.
1
Needs Improvement
Description of relationship
is inaccurate and/or
incomplete.
2
Meets Expectations
Description of the
relationship among the
four concepts is accurate
and complete.
3
Exceeds Expectations
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Descriptions include
references to the given
business context, i.e.,
makes use of the facts in
the given scenario.
2. You are the CFO for XYZ Candies, a boutique candy distributor. Your new CEO wants to expand into online sales, but this will require
purchasing an additional $50,000 in inventory from the manufacturer each month over the next year. Write a memo that explains the
various short-term financing options available to your CEO. What are the advantages and disadvantages of each source? What do you
recommend and why? (2–3 paragraphs)
Your Response
The manager may choose multiple short term debt financing. Uptake of overdraft facilities and other short term loans. Such a capital has
a coupon rate that determines the amount of interest payable in any financial year. The financial cost is paid whether and business make a profit
or a loss. However, a high amount of debt increases the default risk and the leverage level of and business.
The promissory has many benefits. They include its simple nature of payment terms and little documentation. However, it has demerits
such as it may not be the best form of financing for complex situations (Promissory notes, n.d.). It may also lead to and borrower hiding
unfavorable conditions.
A commercial paper has many advantages and disadvantages. It is not only an easy and quick effective way of finding working capital but
also cheaper than other bank loans and has and wide maturity period (Commercial paper, n.d.). However, it has to be regulated by strict
guidelines and the credit available at the financial institution may be reduced. It is also only available to profitable firms.
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A line of credit is an agreement between and customer and a financial institution. It sets the maximum loan that one can borrow and set
amount. One has full access to the credit facility provided it is within the borrowing limit. And borrower is also expected to make timely
minimum payments.
Revolving credit is an account on one’s credit report that stipulates the credit limit as determined by the lenders. The lender determines
the charges to be applied within that limit and the amount of monthly payments.
Merits and demerits of short term borrowing
Short term credit usually has lower interest rates as compared to long term ones. Such an amount translates to relatively lower financial
cost. They are also faster to obtain as they have little requirements. The loans are useful in dealing with cash shortages and unexpected
expenses. Lines of credit are flexible and convenient as they enable one to minimize the interest costs (Brigham, 2013). However, the use of
short term loans may be expensive in the long term. And company that may face hard financial conditions may find it hard to renew the credit
limit.
References
Brigham, E. F. (2013). Fundamentals of financial management. Mason, Ohio: South-Western Cengage Learning.
Goodman, R. T. (2018). Promissory Notes: On the Literary Conditions of Debt. Lever Press.
Rubric
Sub-Competency 2: Analyze uses of short-term financing sources: bank loans (promissory notes, lines of credit, revolving credit
agreements) and commercial paper for needed short-term working capital.
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Learning Objective 2.1:
Describe the shortterm financing options
available to finance a
company’s expansion
plans.
Description of the shortterm financing options
available to fund a
company’s expansion is
missing.
Description does not
include discussion of bank
loans (promissory notes,
lines of credit, revolving
credit) and/or commercial
paper.
Analysis of the advantages
and disadvantages of
short-term financing
sources is missing.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Description is complete
and specific to the facts of
the scenario.
Description includes
discussion of other
financing sources beyond
those given.
Analysis does not cite clear
advantages and
disadvantages of each
funding source.
Analysis cites clear
advantages and
disadvantages of each
funding source.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Analysis is not specific to
the facts of the scenario.
Analysis is specific to the
facts of the scenario.
Analysis of advantages and
disadvantages includes
discussion of other
financing sources beyond
those given.
Description is not specific
to the facts of the
scenario.
Learning Objective 2.2:
Analyze the advantages
and disadvantages of
short-term financing
sources.
Description includes
discussion of bank loans
(promissory notes, lines of
credit, revolving credit)
and commercial paper.
3. Cash Conversion Cycle: Do problem 16-4, Parts a–c, on page 568. (Fundamentals of Financial Management, 13th Edition)
Your Response
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Part 1a
Inventory conversion period
Average collection period
Payable deferral period
Cash conversion cycle
75
38
30
83
Part 1c
Annual days
Days of inventory
Inventory Turnover
365
75
4.87
Part 1b
Annual credit sales
Annual days
Average sales per day
Average collection
period
Investment in account
receivable
3421875
360
9505.208
83
788932.3
Reference
Lacoma, T. (2019, February 11). The Average Investment in Accounts Receivable. Retrieved from https://bizfluent.com/info10008982-average-investment-accounts-receivable.html
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Rubric
Sub-Competency 3: Calculate the inventory conversion period, the receivables collection period, and the payables deferral period to
determine the cash conversion cycle.
Learning Objective 3.1:
Calculate the cash
conversion cycle for a
company.
Learning Objective 3.2:
Determine a
company’s investment
in accounts receivable.
Learning Objective 3.3:
Determine a
company’s annual
inventory turnover
ratio.
Calculation of the cash
Calculation is inaccurate
conversion cycle is missing. and/or incomplete.
Determination of a
company’s investment in
accounts receivable is
missing.
Determination of a
company’s annual
inventory turnover ratio is
missing.
Calculation is accurate and
complete.
Calculation is not stated
correctly in terms of how
the cash conversion cycle
is expressed.
Calculation is stated
correctly in terms of how
the cash conversion cycle
is expressed.
Determination of average
sales per day is computed
incorrectly.
Determination of average
sales per day is computed
correctly.
Determination of
company’s investment in
accounts receivable is
inaccurate and/or
incomplete.
Determination of
inventory turnover ratio is
inaccurate and/or
incomplete.
Determination of
company’s investment in
accounts receivable is
accurate and complete.
Determination of
inventory turnover ratio is
accurate and complete.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Calculation includes a
reference to the given
business context.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Determination includes a
reference to the given
business context.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Determination includes a
reference to the given
business context.
4. You are the new finance manager for XYZ Parts, an electronics distributor. Before working at XYZ, you spent several years working for its
close competitor, ABC Electronics. One of your first deliverables to your new CEO is an analysis of the competition from a financial
perspective. As part of your analysis, you decide to compare the cash conversion cycles of the two companies, using the following facts:
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XYZ Parts
Inventory conversion period = 88 days
Average collection period (ACP) = 54 days
Payables deferral period = 30 days
ABC Electronics
Inventory conversion period = 90 days
ACP = 44 days
Payables deferral period = 30 days
Based on this information, how does the cash conversion cycle for XYZ Parts compare with that of ABC Electronics? (2–3 sentences)
Your Response
Part 1a
Inventory conversion period
Average collection period
Payable deferral period
Cash conversion cycle
XYZ
ABC
88
54
30
112
90
44
30
104
XYZ has a cash conversion cycle of 112 days while ABC has a period of 104 days. It is evident that ABC performed better than XYZ.
One may also say that XYZ is more liquid than ABC (Brigham, 2013).
Reference
Brigham, E. F. (2013). Fundamentals of financial management. Mason, Ohio: South-Western Cengage Learning.
©2015 Walden University
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Rubric
Sub-Competency 4: Compare a company’s cash conversion cycle with those of peer companies.
Learning Objective 4.1:
Calculate the cash
conversion cycles for
two companies.
Learning Objective 4.2:
Analyze the cash
conversion cycles of
two companies.
Calculation of the cash
conversion cycles is
missing.
Analysis of the cash
conversion cycles is
missing.
Calculations are inaccurate
and/or incomplete.
Analysis is inaccurate
and/or incomplete.
Calculations are accurate
and complete.
Analysis is accurate and
complete.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Calculations include a
reference to the given
business context.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Analysis includes a
reference to the given
business context.
5. Additional Funds Needed:
a) Do problem 17-1 on page 591. (Fundamentals of Financial Management, 13th Edition)
b) Refer to problem 17-1. The company’s executive team is very concerned about funding growth with new debt, given the existing liabilities.
What strategies might the company consider to reduce its AFN? (1–2 paragraphs)
Your Response
Part a
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Change in sales
Initial sales
Initial assets
Initial current liabilities
New sales
Profit margin
Retention rate
Additional Funds
Needed
1000000
5000000
3000000
500000
6000000
5%
30%
410000
Part b
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The company may reduce the amount of funds needed by increasing the retention level. It is essential for the management to raise the
ratio from 30% to 50%. They may also consider issuing more shares as a way of obtaining more cash. Such a move reduces the overreliance on
cash in the business (Brigham, 2013).
Reference
Brigham, E. F. (2013). Fundamentals of financial management. Mason, Ohio: South-Western Cengage Learning.
Rubric
Sub-Competency 5: Calculate additional funds needed (AFN) to meet projected growth requirements.
Learning Objective 5.1:
Calculate AFN.
Learning Objective 5.2:
Analyze strategies for
reducing a company’s
AFN.
Calculation of AFN is
missing.
Analysis of strategies for
reducing a company’s AFN
is missing.
Calculation does not use
the correct inputs.
Calculation uses the
correct inputs.
Calculation is incorrect.
Calculation is correct.
Analysis does not identify
at least two strategies for
reducing AFN.
Analysis identifies at least
two strategies for reducing
AFN.
Analysis is not specific to
the facts of the scenario.
Analysis is specific to the
facts of the scenario.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Calculation includes a
reference to the given
business context.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Analysis identifies more
than two strategies for
reducing AFN.
6. Cross Rates:
a) Do problem 19-2 on page 672. (Fundamentals of Financial Management, 13th Edition)
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b) Create your own problem. Choose any two currencies and then calculate and explain their current cross rate.
Your Response
Part a
It is evident that the one dollar can be exchanged for three and half shekels. One also requires 104 yens to acquire one dollar. One can find the
cross rate of the yen and the shekels by dividing the number of yen in one dollar by 3.5. This computation results in 29.71 yens for each shekel
(Brigham, 2013).
Part b
An international trader notes that one pound is exchanged for 129.41 yens or 1.33 dollars. What is the exchange cross rate of a dollar to a yen?
It is evident that one pound is equivalent to 129.41 yens or 1.33 dollars. One obtains the exchange rate of the dollar to the Yen by dividing
129.41 by 1.33. This computation results in 97.3 yens for each dollar
Rubric
Sub-Competency 6: Calculate cross rates between any two currencies.
Learning Objective 6.1:
Calculate the cross
rates between two
currencies.
Learning Objective 6.2:
Write and solve an
original cross rate
problem.
Calculation of the cross
rates between two
currencies is missing.
Cross rate problem is
missing.
Calculation does not use
the correct inputs.
Calculation uses the
correct inputs.
Calculation is incorrect.
Calculation is correct.
Cross rate problem does
not use the correct inputs.
Cross rate problem uses
the correct inputs.
Cross rate problem is not
solved correctly.
Cross rate problem is
solved correctly.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Result and relationship
between the two
currencies is interpreted
clearly.
Response demonstrates
the same level of
achievement as “2,” plus
the following:
Result and relationship
between the two
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currencies is interpreted
clearly.
Source of data used is
provided.
Reference
Brigham, E. F. (2013). Fundamentals of financial management. Mason, Ohio: South-Western Cengage Learning.
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