Capital Budgeting: Going Beyond the Numbers

We have finally hit it:  the mother of all corporate finance.  Capital budgeting.  Here is where our hard work has pointed us.  How do we use our analytical tools to make good, sound and solid decisions?

It was not too long ago that someone here in Washington, DC counseled that we should not let a good crisis go to waste.    We can debate the wisdom of the media message and the context in which that advice was given.  However, as your professor, I proffer that as business people coming of age now, you will be all the better for the wear.

It is relatively easy to make capital decisions in times where resources are plentiful.  However, it takes a different discipline and rigor to conduct capital budgeting when resources are constrained.  Charles Alsdorf offers insight into this dynamic. 

Reflect a moment on the "food fight" that Alsdorf references.  What does this mean?  Discuss the notion of balancing financial and strategic benefits in the capital budgeting process.  What can our holistic approach to financial management offer in this process?

Football is Very Big Business.

Welcome back from Spring Break.  I have missed you all, and I have missed our blog.  With all of the drama in the world right now, there is certainly plenty to talk about-- and plenty of very serious things.  But, this week we are going to talk business-- BIG business.

Keep in mind that I am not necessarily a football fan, and I am the first to admit that I am no expert in the game.  But what I can tell you is that I was raised by parents who own a sports bar-- a sports bar near Cleveland, no less.  Football is business.  It means something to the owners, the players, and to the communities that support the sports entertainment industry.

The current labor dispute in the NFL tells us a lot about ourselves and a lot about our culture.  Here are some links to interesting commentary on these things (these links are only suggestions to get you going and familiar with the arguments):

THE FANS:
http://bleacherreport.com/articles/598438-nfl-labor-dispute-the-fans-are-the-real-victim-and-greed-is-the-motive .

THE PLAYERS:  http://fifthdown.blogs.nytimes.com/2011/03/11/n-f-l-lockout-q-a/

THE OWNERS: http://online.wsj.com/article/SB10001424052748704027504576198823607805368.html#project%3DNFL1103%26articleTabs%3Darticle

 http://www.washingtonpost.com/wp-dyn/content/article/2011/02/16/AR2011021603846.html .

THE OTHERS:  http://www.inc.com/articles/201103/what-an-nfl-lockout-would-mean-to-small-business.html .

Regardless of which side of the dispute you favor, much wisdom can be gained by drawing on the lessons that we have learned this semester.  The quantitative analysis is straightforward.  But, tell me:  how can the wisdom inherent in the principles of solidarity, subsidiarity, and respect for life help inform this debate?  And have we learned anything from the Papal economic encyclicals that could prove insightful?

I am interested in your thoughts.