Develop your new business venture and group roles 

Project overview:
The purpose of the group course project is to report on a possible new business venture and to use your managerial accounting thought to provide evidence/support for your decision. 

In groups of 3-4 peers, develop an idea for a new business venture. The business venture should be realistic and of interest to the group. To provide support for the development of the new business idea, your group will assess the business environment, provide an evaluation of the product’s cost strategy. Your group presents a financial performance overview for the first 3 years of operation, and evaluate the profitability of this investment.

Project Objectives:

· Perform an external analysis of the industry, competition, and potential consumers.

· Analyze the strengths, weaknesses, opportunities, and threats (SWOT analysis) of the proposed business venture.

· Develop and present a unit price and cost analysis on product offerings.

· Budget three years of financial statements, including 1st year monthly cash budget, 3-year income statement, and balance sheet.

The Specific Requirements:

1. Perform an industry size-up. What are the strengths, weaknesses, threats, and opportunities of your business venture compared to the competition in the industry? (Use SWOT analysis).

2. Prepare a per unit Product Cost Analysis, identifying variable and fixed costs, using Contribution Margin. Discuss the cost method chosen for your business.

3. Prepare three years of projected income statements and balance sheets, and a monthly cash budget for year 1. The projections need to be reasonable. For a guide, use the 

Sample Final Project Financial Statement (Excel File).

4. Include discussion of these specific managerial concepts in your final paper as they relate to your business venture:

1. Cost Classifications (fixed vs. variable, product or period)

2. Contribution Margin

3. Cost of Goods Manufactured

4. Financial Ratio Analysis (Activity, Liquidity, Solvency, and Profitability)

5. Performance Measurement using Return of Investment and Residual Income

5. Would you launch the new business venture based on the analysis performed? Why or why not? Support your final recommendation.

Blackboard Requirements:

There are no formal discussions in this course, however, you are required to communicate in your group discussion area within Blackboard on a regular and weekly basis. Your participation in the group discussion is mandatory and part of your participation grade during the intersession weeks. The group discussion board is how I will assess overall group progress and individual contributions to the group course project. I expect the following areas to be discussed. One group member should submit your deliverable for the group each week.

At the end of Intersession weeks 1, 3 and 6, one member of your group should submit your deliverable assignment for the group. Each deliverable assignment is worth 20 points and should be 4-6 pages in length (excluding the title page, references section, and appendix section if applicable). Make sure to include a title page and references section with each weekly deliverable. Use New Times Roman, 12-size font with one-inch margins. Incorporate proper APA style. Note: Your group should discuss your progress each week in the group discussion board, even if there is no deliverable due in a particular intersession week. This counts towards your participation credit.

Summary of Project Components

· Intersession 1: Deliverable #1- Develop your new business venture and group roles. This must be approved by me before you can continue to Deliverable #2. (20 points possible)

· Intersession 3: Deliverable #2- Prepare a brief SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) of your approved business venture. Calculate a Product Cost Analysis (per unit), identifying variable and fixed costs, showing Contribution Margin. Discuss the cost method chosen for your business. (20 points possible) 

· Intersession 6: Deliverable #3- Create a three-year company budgeted income statement, balance sheet and 1st year’s monthly cash flow projection. Include ROI and selected Financial Ratios useful in determining profitability of your business venture. (20 points possible)

· Intersession Group Project Discussion (140 points possible)

· Final Group Project Written Analysis (300 points possible)

· Group Project Presentation (80 points possible)

Points Possible for Final Group Project: 580