The Stinky Cheese Company Has Determined That in Order to Remain

question 175

Essay

The Stinky Cheese Company has determined that in order to remain competitive they need to make some changes to the organization's culture and become more innovative and entrepreneurial.However, they are concerned that such a change might be difficult for employees who might not want to change.What three factors should the company focus on if they want to achieve a successful change? Give an example of each factor.

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Definitions:

Scenario Analysis

Scenario Analysis is an analytical method used to examine different possible future events or scenarios and their potential impacts on decision outcomes.

Positive Net Present Value

An indicator that an investment is expected to generate more cash than its initial cost, leading to a profitable outcome.

Marginal Tax Rate

The marginal tax rate is the rate at which an additional dollar of income would be taxed, highlighting how much of the next dollar earned will go to taxes.

Financial Break-even Point

The level of earnings before interest and taxes (EBIT) where the company's total revenues equals its total expenses.