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Forest Products: business conclusions, Five Year plan, financial impact

The attached documents define a case study for which a five year business plan must be submitted. Please assist with drawing business conclusions, five year plan recommendations and their financial impact.


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Business Conclusions:

Energy Business:
The overall business prospects for the energy business were attractive. There was an impending shortage of petroleum-based products and the crude price was not expected to fall below the $50 benchmark. That apart Continental had made important forays into the Florida market that was expected to grow quickly and so met the needs of an important and a lucrative segment. Currently, Continental already has made a joint acquisition of exploration and production facilities at the cost more than $400 million. This has increased the company's proven reserves of oil and gas by approximately 50%. In general, the global business prospects were excellent and these could lead to profits in future. There are two investment possibilities for Continental one is in the Florida pipeline and the other is in exploration and production. The latter needs a much larger capital. The business can currently be sold off for $1560 million and this offer is expected to increase to $2000 million in 5-6 years time.

Financial Business:
The mix of insurance business, mortgage business, real estate and casualty insurance provides a wide and profitable base for the business. The business prospects were good because the division had shown good track record with respect to picking up and integrating new businesses, targeting markets and avoiding direct competition with large competitors. There is no controversy about the fact that the future of the financial services business is likely to be good. There is good possibility that Continental could increase its sales by 15%. The prospects in this business were good because the company was small ...

Solution Summary

The 1100 word solution presents a comprehensive response to all the questions asked categorized by energy business, financial business and forest products.