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Business Proposal - Future Growth Inc

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Business Proposal – Future Growth Inc.

Executive Summary

Background Future Growth Inc. (FGI) is a full-spectrum equipment financing, sales, and manufacturing company that has been in business for 67 years. Their primary product concentration areas are construction and forestry equipment. Originally the company offered only small consumer financing loans for households. The company expanded its product offerings into the commercial financing realm by providing business loans for acquisition, operations, and commercial real estate needs. The company made the decision to add to its product line by offering equipment financing, which began in 1946. The company created a subsidiary called Future Growth Inc. (FGI) for this purpose. After WWII, there was a spike in the demand for construction and forestry equipment because of the post-war housing boom. FGI was in a key strategic business position, possessing a significant portion of the equipment finance market, and made the decision to improve upon their position by purchasing an equipment manufacturing company, which they accomplished in 1951. Because of this single managerial decision, the company was able to grow and be profitable for the next 55 years. The company stock has risen from $5 per share to $85.60 per share. The company has witnessed six stock-splits over the decades, and the current stock price is $35 per share. With the global market downturn beginning in the late 2000s, the once stable and profitable company found itself facing declining revenues, increased competition, environmental catastrophes, and political obstacles. The company was forced to lay off one-third of its labor, and watched its profits decline 30% in a year. Neither of these two events had ever before occurred in the company’s lengthy history.

Objective Recent historical data indicates that FGI’s current managerial…...

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