MGT 418 MGT418 Week 5 Team Assignment Matt Grant- A Case Study (Phoenix)
Imagine you are a team of outside investors who have been approached by Matt Grant to invest the $100,000 in financing he seeks for developing eight additional regional publications over the next 5 years, as explained in his Executive Summary.
Resource: Case 1 about Matt Grant on pp. 474–481 in Entrepreneurship: Successfully Launching New Ventures
Write a 1,400- to 1,750- word paper discussing the following:
- Evaluate Matt’s business model. What assumptions has Matt made that appear to be valid? Which assumptions might not be valid?
- What changes in the external and competitive environments could affect Matt’s business model? How likely is it that those changes might occur, and why?
- What risks and rewards might Matt experience if he moved forward with his business plan?
- Evaluate valuate Matt’s decision about forming a corporation. What benefits or challenges would incorporation provide to Matt? Would a sole proprietorship or a partnership be more desirable? Why or why not? Is retaining 55% ownership of the corporation’s stock a positive or a negative aspect of his business model?
- Do Matt’s financial expectations support an investment of $100,000 by your team? Why or why not? Explain what factors you took into consideration in making this determination. Would your team invest the $100,000 in financing? Why or why not, considering the return on investment and level of risk?
Format your report consistent with APA guidelines.