JPMorgan Chase Finance Project

FIN 336 Final Project Guidelines and Rubric

Overview The final project for this course is the creation of a multinational performance report. The report will investigate the motivation behind expanding business internationally, whether revenue-related, cost-related, or a combination of both. You will gain a better understanding of international business and the factors that make multinational business complex (e.g., risk management, ethical and legal compliance). As you work though this project, you will explore how the 2007–2008 financial crisis affected multinational corporations (MNCs), with both additional opportunities and potential risks. The project is divided into two milestones, which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Two and Five. The final product will be submitted in Module Seven. In order to successfully complete this project, you will choose a multinational company from the Final Project Company List document and access the following financial reports:

 Balance sheet

 Income statement

 Statement of cash flows

 Current annual report

 2007–2008 annual report

 Statement of retained earnings In order to access this information, follow the steps in the Mergent Online Instructions document to access the Mergent Online database. Please ensure that you select forms based on the company’s most recent tax submission. The annual report is also available on the U.S. Securities and Exchange Commission website. In this assignment, you will demonstrate your mastery of the following course outcomes:

 FIN-336-01: Analyze the impact of legal and ethical challenges on stakeholders for supporting an organization’s conduct and decision making in global markets

 FIN-336-02: Analyze risks and financial factors associated with multinational corporate expansion for informing strategic financial decisions and mitigating risk

 FIN-336-03: Assess multinational expansion factors for ensuring alignment with corporate strategies based on economic environments and market conditions

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Prompt Develop a report that analyzes one company’s approach to multinational expansion and includes financial factors such as economic environments and market conditions, risk mitigation strategies, and ethical and legal practices. Specifically, the following critical elements must be addressed:

I. Company Overview: Use the company’s website, 10-K report, and financial analysis (for example, ratios) to support responses for this section. A. Describe the company’s background, including its industry and extent of its multinational reach for identifying expansion factors and corporate

strategies. [FIN-336-03]

II. Economic Environments and Market Conditions: Use the 2007-2008 annual report and the most current annual report to support responses for this section.

A. Identify international financial markets in which the company operates, such as stock markets, bond markets, and money markets, for explaining how the company raises capital within these markets. [FIN-336-03]

B. Discuss effects of the global credit crisis on the company’s ability to raise capital required to support its expansion and operations, and provide examples to support your claims. [FIN-336-03]

C. Explain the role of international financial markets and institutions in global environments in evaluating their impact on the company’s risk management strategies. [FIN-336-03]

D. Analyze impacts of exchange rate on the company’s performance for determining if a loss occurred because of fluctuations or devaluations of foreign currencies, providing examples from the past year to support your claims. [FIN-336-03]

E. Assess the impact of the global financial crisis as it relates to transaction, economy, and translation exposures with consideration of liabilities and assets in foreign currencies, and support your assessment with financial information. [FIN-336-03]

III. Risk Mitigation: Examine sources of risk and risk reduction methods available to multinational corporations. Use the 2007–2008 annual report and the

most current annual report to support responses in this section. A. Discuss techniques the company used to hedge foreign exchange exposure such as the use of forwards, futures, options, money markets, or

swap agreements, and support with financial information from the past year. [FIN-336-02] B. Discuss risks and financial factors associated with exchange rates and interest rates for assessing how they inform the company’s financial

management approaches. [FIN-336-02] C. Discuss diversification in the company’s expansion model for examining advantages or disadvantages, and provide examples and financial

information from the past year to support your claims. [FIN-336-02] D. Discuss company strategies before and after the 2007–2008 crisis for determining possible reasons for the company’s current financial

performance, and provide examples to support your claims. [FIN-336-02]

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IV. Ethical and Legal Considerations: Explain how the company is maximizing shareholders’ value while maintaining ethical and legal practices. A. Discuss the company’s ethical and legal management during the 2007–2008 crisis for evaluating its impacts on international investing. [FIN-336-

01] B. Analyze the impact of ethical and legal decisions on internal stakeholders, including shareholders, for identifying strengths and areas of

improvement in international expansion strategies. Provide examples to support your claims. [FIN-336-01] C. Discuss the impact of the company’s ethical and legal decisions on external stakeholders, including the government, culture, and environment

into which the company expanded, for identifying strengths and areas of improvement in expansion strategies. Provide examples to support your claims. [FIN-336-01]

V. Future Risks and Challenges: Based on the company’s financial information and your research, make informed predictions about the company’s future

risks and challenges. A. Discuss financial decisions for informing future approaches to increase the company’s value based on trends in corporate strategies and

financial information. [FIN-336-03] B. Discuss ethical and legal considerations and approaches the company may consider for supporting its value in global markets. [FIN-336-01] C. Discuss risk mitigation strategies the company may use for avoiding potential financial crisis and informing strategic financial decisions. [FIN-

336-02]

Milestones Milestone One: Multinational Company Selection In Module Two, you will submit a company overview based on your selected company as well as specific critical elements from Section II: Economic Environments and Market Conditions and Section IV: Ethical and Legal Considerations. This milestone will be graded with the Milestone One Rubric. Milestone Two: Economic Environments and Risk Mitigation In Module Five, you will submit specific elements of Section II: Economic Environments and Market conditions and Section III: Risk Mitigation. This milestone will be graded with the Milestone Two Rubric. Final Submission: Multinational Performance Report In Module Seven, you will submit your final project. It should be a complete, polished artifact containing all of the critical elements of the final product. It should reflect the incorporation of feedback gained throughout the course. This submission will be graded with the Final Project Rubric. Please note that Section II: Economic Environments and Market Conditions, Section III: Risk Mitigation, and Section IV: Future Risks and Challenges need to be submitted in addition to the revised milestones.

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Final Project Rubric Guidelines for Submission: Your multinational performance report must be 5 to 8 pages in length (plus a cover page and references) and must be written in APA format. Use double spacing, 12-point Times New Roman font, and one-inch margins. Cite references in APA format.

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Company Overview: Company

Background [FIN-336-03]

Meets “Proficient” criteria and description demonstrates sophisticated awareness of expansion factors and company’s corporate strategies

Describes the company’s background, including its industry and extent of its multinational reach for identifying expansion factors and corporate strategies

Describes the company’s background, including its industry and extent of its multinational reach for identifying expansion factors and corporate strategies, but description is cursory or contains inaccuracies

Does not describe the company’s background

4.52

Economic Environments and

Market Conditions: International

Financial Markets [FIN-336-03]

Meets “Proficient” criteria and explanation demonstrates a nuanced understanding of how the company raises capital in identified markets

Identifies international financial markets in which the company operates, such as stock markets, bond markets, and money markets, for explaining how the company raises capital within these markets

Identifies international financial markets in which the company operates for explaining how the company raises capital within those markets, but explanation is cursory, illogical, or missing key elements

Does not identify international financial markets in which the company operates

4.52

Economic Environments and

Market Conditions: Global Credit Crisis

[FIN-336-03]

Meets “Proficient” criteria and examples used illustrate a sophisticated understanding of the effects of the global credit crisis on the company’s ability to raise capital required to support its expansion and operations

Discusses effects of the global credit crisis on the company’s ability to raise capital required to support its expansion and operations, and provides examples to support claims

Discusses effects of the global credit crisis on the company’s ability to raise capital required to support its expansion and operations, but discussion is cursory or contains inaccuracies or examples provided are illogical

Does not discuss effects of the global credit crisis on the company’s ability to raise capital required to support its expansion and operations

4.52

Economic Environments and

Market Conditions: Financial Markets and Institutions

[FIN-336-03]

Meets “Proficient” criteria and explanation demonstrates a nuanced understanding of the role of international financial markets and institutions and their impact on the company’s risk management strategies

Explains the role of international financial markets and institutions in global environments in evaluating their impact on the company’s risk management strategies

Explains the role of international financial markets and institutions in global environments in evaluating their impact on the company’s risk management strategies, but explanation is cursory, illogical, or missing key elements

Does not explain the role of international financial markets and institutions in global environments

4.52

5

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Economic Environments and

Market Conditions: Impacts of

Exchange Rate [FIN-336-03]

Meets “Proficient” criteria and examples provided illustrate a nuanced understanding of the impacts of exchange rate

Analyzes impacts of exchange rate on the company’s performance for determining if a loss occurred because of fluctuations or devaluations of foreign currencies, and provides examples from the past year to support claims

Analyzes impacts of exchange rate on the company’s performance for determining if a loss occurred because of fluctuations or devaluations of foreign currencies, and provides examples from the past year to support claims, but analysis or examples provided are cursory, illogical, missing key elements or contain inaccuracies

Does not analyze impacts of exchange rate on the company’s performance

4.52

Economic Environments and

Market Conditions: Global Financial

Crisis [FIN-336-03]

Meets “Proficient” criteria and supporting financial information demonstrates a sophisticated awareness of the impact of the global financial crisis on transaction, economy, and translation exposures

Assesses the impact of the global financial crisis as it relates to transaction, economy, and translation exposures with consideration of liabilities and assets in foreign currencies, and supports assessment with financial information

Assesses the impact of the global financial crisis as it relates to transaction, economy, and translation exposures with consideration of liabilities and assets in foreign currencies, and supports assessment with financial information, but assessment or supporting information is cursory, illogical, missing key elements or contains inaccuracies

Does not assess the impact of the global financial crisis as it relates to transaction, economy, and translation exposures

4.52

Risk Mitigation: Hedge Foreign

Exchange Exposure [FIN-336-02]

Meets “Proficient” criteria and supporting financial information demonstrates a sophisticated awareness of techniques the company used to hedge foreign exchange exposure

Discusses techniques the company used to hedge foreign exchange exposure such as the use of forwards, futures, options, money markets, or swap agreements, and supports with financial information from the past year

Discusses techniques the company used to hedge foreign exchange exposure such as the use of forwards, futures, options, money markets, or swap agreements, and supports with financial information from the past year, but discussion or supporting information is cursory or illogical or contains inaccuracies

Does not discuss techniques the company used to hedge foreign exchange exposure

6.33

6

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Risk Mitigation: Exchange Rates and

Interest Rates [FIN-336-02]

Meets “Proficient” criteria and the discussion demonstrates sophisticated awareness of how exchange rates and interest rates inform the company’s financial management approaches

Discusses risks and financial factors associated with exchange rates and interest rates for assessing how they inform the company’s financial management approaches

Discusses risks and financial factors associated with exchange rates and interest rates for assessing how they inform the company’s financial management approaches, but discussion is cursory or illogical or contains inaccuracies

Does not discuss risks and financial factors associated with exchange rates and interest rates

6.33

Risk Mitigation: Diversification [FIN-336-02]

Meets “Proficient” criteria and supporting financial information demonstrates a nuanced understanding of diversification in the company’s expansion model

Discusses diversification in the company’s expansion model for examining advantages or disadvantages, and provides examples and financial information from the past year to support claims

Discusses diversification in the company’s expansion model for examining advantages or disadvantages, and provides examples and financial information from the past year to support claims, but discussion or supporting financial information is cursory or illogical or contains inaccuracies

Does not discuss diversification in the company’s expansion model

6.33

Risk Mitigation: Company Strategies

[FIN-336-02]

Meets “Proficient” criteria and articulation of supporting examples demonstrates a complex grasp of how the 2007– 2008 crisis impacted the company

Discusses company strategies before and after the 2007–2008 crisis for determining possible reasons for the company’s current financial performance, and provides examples to support claims

Discusses company strategies before and after the 2007–2008 crisis for determining possible reasons for the company’s current financial performance, and provides examples to support claims, but discussion or supporting examples are cursory or illogical or contain inaccuracies

Does not discuss company strategies before and after the 2007–2008 crisis for determining possible reasons for the company’s current financial performance

6.33

Ethical and Legal Considerations: Ethical and Legal

Management [FIN-336-01]

Meets “Proficient” criteria and response demonstrates a sophisticated understanding of ethical and legal management during the 2007–2008 crisis and its impacts on international investing

Discusses the company’s ethical and legal management during the 2007–2008 crisis for evaluating its impacts on international investing

Discusses the company’s ethical and legal management during the 2007–2008 crisis for evaluating its impacts on international investing, but discussion is cursory, inaccurate, or missing key elements

Does not discuss the company’s ethical and legal management during the 2007–2008 crisis

7.92

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Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Ethical and Legal Considerations:

Impact on Internal Stakeholders [FIN-336-01]

Meets “Proficient” criteria and articulation of supporting examples demonstrates a sophisticated awareness of the impact of ethical and legal decisions on internal stakeholders

Analyzes the impact of ethical and legal decisions on internal stakeholders, including shareholders, for identifying strengths and areas of improvement in international expansion strategies, and provides examples to support claims

Analyzes the impact of ethical and legal decisions on internal stakeholders, including shareholders, for identifying strengths and areas of improvement in international expansion strategies, and provides examples to support claims, but analysis or examples are cursory or illogical

Does not analyze the impact of ethical and legal decisions on internal stakeholders

7.92

Ethical and Legal Considerations:

Impact on External Stakeholders [FIN-336-01]

Meets “Proficient” criteria and articulation of supporting examples demonstrates a sophisticated awareness of the impact of ethical and legal decisions on external stakeholders

Discusses the impact of the company’s ethical and legal decisions on external stakeholders, including the government, culture, and environment into which the company expanded, for identifying strengths and areas of improvement in expansion strategies, and provides examples to support claims

Discusses the impact of the company’s ethical and legal decisions on external stakeholders, including the government, culture, and environment into which the company expanded, for identifying strengths and areas of improvement in expansion strategies, and provides examples to support claims, but response or supporting examples are cursory or illogical

Does not discuss the impact of the company’s ethical and legal decisions on external stakeholders

7.92

Future Risks and Challenges:

Financial Decisions [FIN-336-03]

Meets “Proficient” criteria and response demonstrates a sophisticated awareness of financial decisions based on trends in corporate strategies and financial information

Discusses financial decisions for informing future approaches to increase the company’s value based on trends in corporate strategies and financial information

Discusses financial decisions for informing future approaches to increase the company’s value based on trends in corporate strategies and financial information, but response is cursory or illogical

Does not discuss financial decisions for informing future approaches to increase the company’s value

4.52

Future Risks and Challenges: Ethical

and Legal Considerations

[FIN-336-01]

Meets “Proficient” criteria and response demonstrates a nuanced understanding of ethical and legal considerations that support the company’s value in global markets

Discusses ethical and legal considerations and approaches the company may consider for supporting its value in global markets

Discusses ethical and legal considerations and approaches the company may consider for supporting its value in global markets, but response is cursory or illogical

Does not discuss ethical and legal considerations and approaches the company may consider

7.92

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Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Future Risks and Challenges: Risk

Mitigation Strategies

[FIN-336-02]

Meets “Proficient” criteria and response demonstrates a nuanced understanding of risk mitigation strategies that inform strategic financial decisions

Discusses risk mitigation strategies the company may use for avoiding potential financial crisis and informing strategic financial decisions

Discusses risk mitigation strategies the company may use for avoiding potential financial crisis and informing strategic financial decisions, but response is cursory or illogical

Does not discuss risk mitigation strategies the company may use for avoiding potential financial crisis

6.33

Articulation of Response

Submission has no major errors related to grammar, spelling, syntax, or organization

Submission has few minor errors related to organization, grammar, and style

Submission has several errors related to grammar, spelling, syntax, or organization

Submission has major errors related to grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

5.03

Total 100%