Fix the the error in unit 5 and the bold writing, please, Ty!

Unit 5 Assignment 2

Capstone Project: III First Half

Post University

BUS 695 Capstone

MBA Concentration: Corporate Innovation

Paul Licon

April 5, 2025

Dr. Wayne Emms

Cover Sheet looks perfect Paul

Statement of Problem or Opportunity

Stratasys Ltd., a leader in 3D printing technology, plays a vital role in driving technological innovation, economic development, and job creation, particularly in developing nations. However, new entrepreneurs often encounter significant obstacles, including insufficient funding, a lack of business acumen, inadequate mentorship, and poor infrastructure (Tennessee Tech University, n.d.) Those are pretty accurate words. Many aspiring business owners struggle with self-doubt and fear of failure, contributing to high startup failure rates, ultimately hindering economic progress, and perpetuating poverty. Establishing a robust support system is essential for the success of new ventures. Promoting Stratasys Ltd.'s 3D printing technology can foster creativity in underserved communities, decrease unemployment, and enhance economic prospects (Minnesota Department of Health, n.d.).

Stratasys Ltd. contributes to economic advancement but faces challenges such as limited funding, skill gaps, and infrastructure deficiencies, particularly in developing regions (Minnesota Department of Health, n.d.). Addressing these challenges could pave the way for innovation, job creation, and poverty reduction. This initiative aims to establish a support network for aspiring business leaders. Nice effort on the Opportunity

Background Overview of the Problem

Stratasys Ltd.

Paul has recognized Stratasys Ltd., a company specializing in 3D printing, as a crucial contributor to long-term economic growth. According to data from the Global Economic Monitor (GEM), small and medium-sized enterprises (SMEs) are responsible for the majority of job creation globally, playing a vital role in supporting GDP growth in both developed and developing nations (Tennessee Tech University, n.d.). However, the failure rate for new startups is alarmingly high, with 90% not surviving beyond their first five years, a statistic that exceeds expectations. Critical challenges such as limited access to funding, low educational standards, and inadequate institutional support exacerbate the difficulties faced in developing economies.

The founders of Stratasys Ltd. encounter significant obstacles in securing funding, as traditional financial institutions categorize them as high-risk ventures That’s a valid point Paul; in addition, Banks are somewhat leary when it comes to lending money in those areas where they do not feel that they completely understand. This perception complicates the process of obtaining loans or attracting investments. Banks tend to be wary of unfamiliar enterprises, and potential investors may withdraw due to high costs and stringent collateral requirements. Additionally, many entrepreneurs lack essential knowledge in business operations, marketing, and financial management (Ebert & Griffin, 2025). The lack of networking opportunities and mentorship further diminishes the business acumen of startups.

In 90% of developing countries, the challenges faced by Stratasys Ltd., a 3D printing company, can be traced back to systemic issues, including insufficient funding, poor infrastructure, and limited entrepreneurial training (Minnesota Department of Health, n.d.). Tackling these obstacles could unleash entrepreneurial potential and foster sustainable development. Your reader now have a good understanding of the issue that you want to solve for

Goals and SMART Objectives for Stratasys Ltd

Stratasys Ltd. is dedicated to improving its financial performance, aiding entrepreneurs, enhancing educational capabilities, upgrading infrastructure, and assessing the impacts of its programs (Ebert & Griffin, 2025).

Each goal is accompanied by specific, measurable, achievable, relevant, and time-bound (SMART) objectives to promote clarity and accountability (Lomax et al., 2012):

• Goal 1:

Enhancement of Financial Performance and Revenue; does the Project make sense?

• • Revenue Growth: Target a 10% increase in revenue from 3D printing services by the conclusion of the fiscal year 2025.

  • Profit Margin Improvement: Aim to boost the gross profit margin by 5% over the next two quarters through production optimization and cost reduction.

  • Customer Satisfaction Enhancement: Strive for a 15% increase in customer satisfaction scores within one year by implementing new feedback mechanisms and improving support services.

  • Cost Reduction: Work towards an 8% decrease in operational costs by the end of the upcoming fiscal year through more efficient operations.

  • Market Share Expansion: Seek to gain an additional 5% market share within two years by introducing new product offerings.

• Goal 2:

Enhancing Access to Entrepreneurial Funding – goes a long way to getting the Project off the ground and then ensuring success

• Initiate a microfinance initiative to provide low-interest loans to 500 employees by December 31, 2025 (Tennessee Tech University, n.d.).

• Establish a seed fund of $1 million with contributions from 10 domestic and international investors by November 30, 2026 (STRATASYS LTD., 2020).

• Develop a crowdfunding platform to raise $500,000 within its inaugural year, concluding on October 31, 2025 (Vipond, 2025).

• Conduct quarterly workshops focused on financial management, targeting at least 200 entrepreneurs each quarter by March 31, 2025 (SAMHSA, n.d.).

• Goal 3:

Expanding Education and Training Opportunities I like the thinking here Paul

• Launch an online academy designed to accommodate 1,000 students by September 30, 2025 (Marchofdimes, n.d.).

• Host ten business boot camps, each training fifty entrepreneurs, by January 31, 2025 (Tennessee Tech University, n.d.).

• Provide mentorship to 200 aspiring entrepreneurs from business leaders starting August 31, 2025 (SAMHSA, n.d.).

• Produce 5,000 guidebooks on successful practices from Stratasys Ltd for distribution between July 1 and July 31, 2025 (Minnesota Department of Health, n.d.).

• Goal 4:

Infrastructure Enhancement – Needs more Description Paul; you need to advise your readers of the full intent of the Goal

• The organization aims to secure $2 million in funding for rural infrastructure by June 30, 2026 (STRATASYS LTD., 2020).

• Establish five co-working spaces in economically disadvantaged regions, providing commercial real estate and connectivity to at least ten business owners by May 31, 2025 (SAMHSA, n.d.).

• By the end of Year 3, the organization will fulfill Objective 3.3, guaranteeing dependable internet and electricity access in ten rural locations by April 30, 2025 (Minnesota Department of Health, n.d.).

• Create a mobile application targeting 10,000 downloads with a free download model, implement an effective App Store Optimization (ASO) strategy, foster an engaged user community, and analyze data for informed decision-making by achieving Objective 3.4 by March 31, 2025 (Minnesota Department of Health, n.d.).

• Expand the network of local business hubs to 15 cities to offer entrepreneurs essential resources, networking opportunities, and support services by January 31, 2026 (University of California, n.d.).

• The organization intends to organize an annual summit for Stratasys Ltd., a 3D printing firm, to attract 500 participants and promote knowledge-sharing and collaborative opportunities by December 31, 2025 (Minnesota Department of Health, n.d.).

• The initiative will establish partnerships with 20 colleges to incorporate Stratasys Ltd.'s 3D printing education into their curricula, targeting an annual enrollment of 5,000 students by November 30, 2025 (Marchofdimes, n.d.).

• Under Objective 4.4, a media campaign will be launched in the first operational year to reach 1 million individuals, highlighting entrepreneurial success stories by October 31, 2025 (Lomax et al., 2012).

Excellent effort on the SMART Objectives

• Goal 5:

Impact Monitoring and Evaluation – again; needs more Description Paul; you need to advise your readers of the full intent of the Goal

• • A new monitoring framework is required to assess the initiative's progress, including its effects during the first year. Quarterly performance assessments will commence in the first quarter, specifically on March 31, 2025 (Minnesota Department of Health, n.d.).

  • The program will implement annual surveys to gauge participant satisfaction and identify area-specific improvement strategies, aiming for an 80% response rate by December 31, 2025 (STRATASYS LTD., 2015).

  • Following Objective 5.3, an annual impact report detailing the economic and social outcomes of Stratasys, Ltd.'s support program for 3D printing will be disseminated to stakeholders and the public by January 31, 2026 (Minnesota Department of Health, n.d.).

  • A feedback platform will enable entrepreneurs to share their insights regarding the program's effectiveness. The initial target is to collect at least 500 responses within the first year by February 28, 2026 (University of California, n.d.).

Financial Planning & Analysis and Performance

Stratasys Ltd., a company specializing in 3D printing, has conducted an extensive survey encompassing revenue projections, cost analyses, sensitivity evaluations, and risk assessments (Alexander, 2018). This study aims to create a documented financial model featuring essential metrics such as Net Present Value, Internal Rate of Return, and Payback Period. It will leverage existing financial data and benchmarking methodologies. This analysis is vital for assessing the economic feasibility of the project and is scheduled for completion by June 2, 2025, which is 10 weeks from the commencement date of March 23 (Alexander, 2018).

What is the Budget for your Project Paul; your readers will want to know the size of the Budget to determine the scope and difficulty

Targeted Return on Investment (ROI)

Stratasys Ltd. is focused on identifying and securing financial resources to achieve a minimum Return on Investment (ROI) of 15% within the initial 18 months of project operations, aiming for this target by September 23, 2026. The ROI percentage will be monitored monthly through the financial model and quarterly performance review reports (Phillips & Phillips, 2005). Stratasys Ltd. will implement cost-control measures and revenue-enhancing strategies informed by market analysis to ensure a robust return on investment. Achieving this ROI target is crucial for the project's financial success and must be accomplished within 18 months following the project's initiation on September 23, 2026 (Phillips & Phillips, 2005). Yes, I would concur

Financial Planning & Analysis and Performance

Stratasys Ltd., a company specializing in 3D printing, has conducted an extensive survey encompassing revenue projections, cost analyses, sensitivity evaluations, and risk assessments (Alexander, 2018). This study aims to create a documented financial model featuring essential metrics such as Net Present Value, Internal Rate of Return, and Payback Period Duly Noted. It will leverage existing financial data and benchmarking methodologies. This analysis is vital for assessing the economic feasibility of the project and is scheduled for completion by June 2, 2025, which is 10 weeks from the commencement date of March 23 (Alexander, 2018).

Targeted Return on Investment (ROI)

Stratasys Ltd. is focused on identifying and securing financial resources to achieve a minimum Return on Investment (ROI) of 15% that would be a pretty impressive ROI within the initial 18 months of project operations, aiming for this target by September 23, 2026. The ROI percentage will be monitored monthly through the financial model and quarterly performance review reports (Phillips & Phillips, 2005). Stratasys Ltd. will implement cost-control measures and revenue-enhancing strategies informed by market analysis to ensure a robust return on investment. Achieving this ROI target is crucial for the project's financial success and must be accomplished within 18 months following the project's initiation on September 23, 2026 (Phillips & Phillips, 2005).

Financial Models, Reports, Data, and Metrics

Stratasys Ltd.

1. Project's Financial Health Appraisal

The financial viability of Stratasys Ltd., a company specializing in 3D printing, has been evaluated to promote fiscal responsibility and sustainability during its initial phase. This assessment emphasizes cost management, revenue generation, and cash flow oversight (Financial Data Modeling: Examples & Tips, n.d.).

• Projected Revenue:

• • • Client Base: Anticipated annual revenue of $250,000 from approximately 50 clients, each contributing $5,000 annually.

    • Pricing Strategy: Pricing is aligned with market trends and economic indicators to maintain competitiveness. Makes sense; you need to make a profit; however, you don’t want to over-charge

• Total Costs:

• • • Annual expenses amount to $160,000, comprising fixed costs of $95,000 and variable costs of $65,000.

• Breakdown of Fixed Costs:

• • • Rent & Utilities: $20,000 per year

    • Salaries: $60,000 per year

    • Insurance: $10,000 per year

    • Depreciation: $5,000 per year

    • Total Fixed Costs: $95,000 per year

• • • Breakdown of Variable Costs:

    • Materials and Supplies: $40,000 per year

• • • Sales Commissions: $15,000 per year

    • Transportation: $10,000 per year

    • Total Variable Costs: $65,000 per year

    • Break-even Analysis:

    • The project must generate a minimum of $128,378 annually to cover its expenses. Duly Noted

    • Calculation of Break-even Points:

    • Break-even Revenue = Fixed Costs / [1 - (Variable Costs / Revenue)] (Financial Data Modeling: Examples & Tips, n.d.).

    • By substituting the relevant values:

    • Break-even Revenue = 95,000 / [1 - (65,000 / 250,000)] = $128,378 (Financial Data Modeling: Examples & Tips, n.d.).

• • • Therefore, the project must achieve at least $128,378 in annual revenue to meet its cost obligations.

A well-organized budget and sound financial management practice ensure the project's sustainability and growth prospects for Stratasys Ltd., a 3D printing enterprise (Financial Data Modeling: Examples & Tips, n.d.).

2. Budget Overview – What is the Budget in Dollars????

A dedicated budget section guarantees the effective allocation of financial resources.

• • • Total Budget: Clearly define the overall budget Statement

    • Budget Distribution

• • • Operational Expenses: Include both fixed and variable expenditures.

    • Growth Investment: Allocate resources for marketing initiatives, technological enhancements, and employee training programs.

    • Monitoring: Compliance with the budget will be assessed through quarterly evaluations and variance analysis, promoting transparency and financial accountability.

1. Assessment and Interpretation of Financial Statements

Income Statement

(Stratasys Ltd. (SSYS) Income Statement - Yahoo Finance, n.d.)

(Projected)

Balance Sheet

(McCareins, 2024)

(Projected)

4. Application of Financial Performance Models

To evaluate financial performance, Paul can utilize the following models:

• • Break-even Analysis: The project achieves break-even at $128,378, with anticipated revenues of $250,000, suggesting that this target is easily within reach (azmicrocredit, 2023).

  • Net Present Value (NPV): This is calculated as the sum from 1 to 5 of [90,000 / (1 + 0.10)] minus the initial investment, which is assumed to be $100,000 (Financial Data Modeling: Examples & Tips, n.d.).

  • Net Present Value (NPV): With a discount rate of 10%, the expected annual cash flows of $90,000 over five years yield an NPV of approximately $241,186, indicating potential future profitability (Samonas, 2015).

  • Return on Investment (ROI): This metric assesses an investment's profitability by considering the initial capital invested (Financial Data Modeling: Examples & Tips, n.d.).

5. Return on Investment (ROI):

• • The ROI is calculated at 90%, based on net profit and initial investment data.

  • ROI = (Net Profit / Investment) × 100 = (90,000 / 100,000) × 100 = 90% (Phillips & Phillips, 2005).

Save for not noting the Budget; excellent effort on the Financials

Conclusion

Stratasys Ltd., a company specializing in 3D printing, has established five primary objectives: enhancing access to funding, developing entrepreneurial skills, improving infrastructure, fostering a supportive environment, and implementing monitoring initiatives (Tennessee Tech University, n.d.). Paul formulates 4-5 SMART objectives for each goal to ensure measurable outcomes, such as initiating microfinance programs and creating training and co-working spaces (Marchofdimes, n.d.). These objectives are designed to assist Stratasys Ltd. in addressing its challenges in emerging markets and cultivating a robust entrepreneurial ecosystem.

References

Alexander, J. (2018). Financial Planning & Analysis and Performance Management. John Wiley & Sons.

azmicrocredit. (2023, March 26). Projected Income Statement - Income statement template. azmicrocredit. https://www.azmicrocredit.org/single-post/projected-income-statement

Cafferky, M., Cafferky, M. E., & Wentworth, J. (2010). Breakeven analysis: The Definitive Guide to Cost-volume-profit Analysis.

Ebert, R. J., & Griffin, R. W. (2025). Business Essentials, 14th.

Financial data modeling: Examples & tips. (n.d.). https://www.solvexia.com/blog/financial-data-modeling

Financial Results FY 2024. (2024, December 31). Stratasys Ltd. https://investors.stratasys.com/financial-information

Lomax, A., Community Indicators Consortium, P., M. L., & St. Clair County Health Department. (2012). Developing goals, objectives, and Community Health Improvement Plans (CHIPS) performance indicators. https://www.naccho.org/uploads/downloadable-resources/NACCHO_GoalsandObjectives_05-09-12Final-Slides.pdf

Marchofdimes. (n.d.). Smart Objectives. https://www.infanthearing.org/coordinator_toolkit/section5/18_smart_objects.pdf

McCareins, M. (2024, August 28). What is a projected balance sheet, and how do you create one? altLINE. https://altline.sobanco.com/projected-balance-sheet/#:~:text=Projected%20Balance%20Sheet%20FAQs&text=A%20projected%20balance%20sheet%20is%20a%20detailed%20financial%20statement%20that,using%20simpler%2C%20less%20detailed%20calculations.

Minnesota Department of Health. (n.d.). Objectives and goals: Write meaningful goals and SMART objectives for the MN Dept. of Health. https://www.health.state.mn.us/communities/practice/resources/phqitoolbox/objectives.html

Phillips, P. P., & Phillips, J. J. (2005). Return on Investment (ROI) basics. ASTD Training Basics.

SAMHSA. (n.d.). Setting goals and developing specific, measurable, achievable, relevant, and time-bound objectives. https://www.samhsa.gov/sites/default/files/nc-smart-goals-fact-sheet.pdf

Samonas, M. (2015). Financial forecasting, analysis, and modeling: A Framework for Long-Term Forecasting. John Wiley & Sons.

STRATASYS LTD. (2015). FORM 20-F. In Annual and Transition Report [Report]. https://www.annualreports.com/HostedData/AnnualReportArchive/s/NASDAQ_SSYS_2014.pdf

STRATASYS LTD. (2020, December 12). UNITED STATES SECURITIES AND EXCHANGE COMMISSION. https://www.sec.gov/Archives/edgar/data/1517396/000121390021012467/stratasys3639044-20f.htm

Stratasys Ltd. (SSYS) Income Statement - Yahoo Finance. (n.d.). Yahoo Finance. https://finance.yahoo.com/quote/SSYS/financials/

Stratasys releases the fourth quarter and full year of 2024 financial results. (2025, March 5). Businesswire. https://www.businesswire.com/news/home/20250305116042/en/Stratasys-Releases-Fourth-Quarter-and-Full-Year-2024-Financial-Results

Tennessee Tech University. (n.d.). Examples of measurable goals and objectives. https://www.tntech.edu/research/pdf/resources/proposaldevelopmentresources/Examples_of_Measurable_Goals_and_Objectives.pdf

Traster, D. (2013). Foundations of Cost Control. Pearson Education.

University of California. (n.d.). Performance Appraisal Planning 2016-2017 SMART Goals: A How to Guide. In Unknown. https://www.ucop.edu/local-human-resources/_files/performance-appraisal/How%20to%20write%20SMART%20Goals%20v2.pdf

Vipond, T. (2025, March 7). Analyzing Financial Statements: Key Metrics and Methods. Corporate Finance Institute. https://corporatefinanceinstitute.com/resources/accounting/analysis-of-financial-statements/