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The Stinky Cheese Company Has Determined That in Order to Remain

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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.


Definitions:

Firm Value

The total value of a company, considering all sources of capital including debt and equity.

Required Return

The minimum expected return on an investment needed by an investor, factoring in the risk associated with the investment.

Initial Cash Outflow

Initial cash outflow refers to the amount of money a business or investor must spend upfront to initiate a project, investment, or acquisition.

Cash Inflows

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

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