Today we practiced making a business plan for Burger King and it was a lot more complex then I thought it would be. It made me realize how important it is to target your market when opening a new branch in a foreign company, especially one that already has a big competitor in the same area. This exercise made me realize how crucial it is for businesses to plan out every aspect before asking for money from banks or the government, not only when trying to open a new store but for future endeavours in the company!
Also the discussion was interesting in the respect that Ford decided to ask the government for assistance in their business plan in 2008 because all of their competing companies were going bankrupt. The reason for this cry for help is to secure the company from going into bankruptcy. This article confirmed that Ford did, however, escape bankruptcy and in turn, increased sales by 50%. The company borrowed money at the right time, and used the money to increase cash hoard, with the remaining money used separately among other needs and expenditures. Today, Ford seeks to maximize their production to 8 million cars a year by 2015. Ford now seems to have learned their lesson and have now learned to strategically finance themselves.
