Questions and Problems Module 4
1. Gary Fisher owns five successful health clubs. He believes that he can put a health club in a new community that currently has no such facility. His research indicates that communities such as this can support two health clubs. (Note: for each answer I want a well written, well thought out answer that conveys depth of understanding of the concept).
a. What type of information should Gary gather when selecting a specific site for his health club? (10 points)
b. What is a forecasting model and should Gary use one? (10 points)
c. If so, what type of forecasting model should Gary use to determine the new location for a health club and why? (10 points)
2. Give one example of a qualitative forecast model (make sure you explain a different model than the one you used in question 1) and a quantitative forecast model and explain when and how you would use that model instead of another model. (20 points)
3. What is the difference between mean and mean absolute deviation and which one would you use? Please incorporate into your discussion how you would deal with negative numbers? (10 points)
4. Using the financial statements for a public corporation:
a. Develop a basic pro forma income statement and balance sheet for this company. Feel free to use the templates available at www.score.org. (20 points)
Please make sure that you detail what methodology you used to arrive at your numbers. Keep in mind that while a pro forma is a guess; it is most definitely an educated guess.
I want to see that you have reasoning behind your numbers. That reasoning could be for what you expect may happen (Apple is going to release the next Iphone, but because of the trade issues with China you expect costs to go up, etc. etc), or it can be based on what has happened in the past. I don’t care how you approach it, but I need you to document your methodology.
b. What did you discover about the company in doing the pro forma; please do a SWOT analysis on your pro forma? (20 points)
Please take note of the point value for the questions. For instance, if the point value is 20 points, please make sure to give me a more detailed and in depth answer than you would for a 10 point question.