MBA-FPX 5910 Assessment 1-1 PDF

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Running head: CAPSTONE PROJECT SUMMARY

Capstone Project Summary Capella University MBA Capstone Experience Capstone Project Summary 2020

Capstone Project Summary

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CAPSTONE PROJECT SUMMARY

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Introduction Hertz is one of the world’s leaders in rental car services. Founded in 1918, by a twentytwo-year-old car salesman, Walther Jacobs, in Chicago, Illinois (Lachapelle, 2017). Jacobs's vision was to create a service where people can borrow a vehicle and enjoy its perks without owning one because of the high expense. Jacobs acquired a small fleet of twelve slightly used Ford Motel T’s and started his small rental business (Lachapelle, 2017). It was the first of its time and within five years of opening, revenue blossomed; Jacobs expanded his operations to the point where his small rental brand was generating revenues that surpassed one million dollars annually. Jacobs sold his company to a wealthy businessman John Hertz in 1923. John Hertz rebranded and renamed Jacobs rental car to Hertz Drive-Ur-Self System until 1961. Today the company is recognized globally as Hertz (Lachapelle, 2017). The company grew and expanded into a global powerhouse within the car rental industry. From 2000 through 2019, the company experience extensive profits and growth. In 2019 according to Bloomberg data, Hertz’s revenues totaled 9.8 billion dollars, a 3% increase compared to 2018 (Steinmetz, 2020). However, the rental car juggernaut has fallen on hard times and with debt and lease obligations exceeding 19 billion dollars, followed by frequent investigations conducted by the United States Securities and Exchange Commission (SEC) and Federal Trade Commission (FTC) previously and presently (Layden, 2020). The company is reeling to keep up with its competitors, pay its debts, and stave off closing its doors.

Statement of Scope I want to focus on how Hertz rent-a-car company went from being at the top of its industry to struggling to fight off the imminent bankruptcy.

CAPSTONE PROJECT SUMMARY Describe Business Problem I Intend to Research By conducting investigative research, I plan to uncover what lead to Hertz Corporation’s financial woes after acquiring its competitor Dollar-Thrifty in 2012 for 2.3 billion dollars (Lachapelle, 2017). Steinmetz (2020) states, former CEO, who oversaw the purchasing, Mark Frissora shared, the company’s goal was to enter the leisure-traveler market, a niche currently dominated by Avis and Enterprise. Using analytical tools such as PESTEL, VUCA, and SWOT analysis, an in-depth systematic and thorough evaluation of Hertz business practices will be performed to understand what internal or external factors contribute to its financial and business performance inconsistencies. The topics that I will focus on will include how Hertz's leadership shaped company decisions and strategies. Secondly, how has the acquisition of Dollar Thrifty benefit the company financially, and was the purchase beneficial for the brand long-term growth? Thirdly, did the company over-extended itself when it entered the leisure-traveler rental car sector of the industry? Fourth, how has rideshare companies like Uber and Lyft impact Hertz business model today? And lastly, how has COVID-19 affected the company and the rental car industry?

Level of Accessibility By obtaining data from several library research tools, that include Business Source Complete and IBISWorld databases, online peer-reviewed E-Books and business journals. In addition to investigating the "who," "what," "when," "where," "why," and "how" of Hertz business model and policies that were implemented form its inception to the present. Also, integrate learning MBA that include setting aside several hours each day to conduct research on

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articles. Critically think and evaluate financial statements and data. And formulate and execute MBA capstone objectives.

Demonstration of Outcomes

MBA Criteria

Demonstrated by:

Apply foundational knowledge and an understanding of business systems, processes, and technology within and across core disciplines.

Using theories and best practices, I will analyze Hertz Corporation's financial conditions, customer service practices, employee satisfaction ratings, and so forth. Performing PESTLE AND SWOT analysis to understand company valuation and shareholder influence on business policies and tactics.

Integrate information across disciplines and from differing perspectives.

The evaluation of company practices will be evaluated, including but not limited to, supply chain analysis, marketing policies, employee culture. Each will be considered, so proper recommendations can be made to improve Hertz Corporation's stakeholder benefits.

Think critically and analytically to provide evidence-based solutions to business challenges and opportunities.

Hertz Corporation's current strategies suggest the company is considering methods to rescue itself from bankruptcy. Reviewing financial statements, legal filings, and industry compliance records will determine if discernible data aligns with the company plan to regain a footing within its industry.

Apply innovative, strategic, and sustainable approaches to business practice and planning.

Hertz Corporation needs a quick assessment in rebuilding its credibility to regain its competitive position. Innovative concepts and tactics will be necessary to guide the company out of its financial plight. Reliable resources and practical suggestions will be given to stimulate the status quo while concurrently identifying assumptions for the brand.

Lead and collaborate in virtual, global, and culturally diverse environments.

Hertz Corporation is a well-known international brand undergoing financial and

CAPSTONE PROJECT SUMMARY

5 restructuring problems within the rental car industry. The suggestions given were created to promote comprehensive reworking to help solve its economic issues and leadership continuity.

Integrate principles of ethics and integrity into business decisions.

Several scandals have surrounded hertz Corporation over the years. The company’s ethics-related to its business methods will be evaluated, including its careful review of its past and current leadership decisions.

Write coherently to support a central idea with correct grammar, usage, and mechanics as expected of a business professional.

Proper, clear, and concise grammar will be used professionally to covey what best practices need Hertz Company to succeed.

Conclusion In conclusion, this capstone assignment will examine Hertz Corporation's current financial and economic position within its industry. Along with its customer service process, business model, employee satisfaction, and organizational structure. Additionally, provide strategic guidance and suggestions on improving and reforming its financial health—avoiding stakeholders from losing faith in the company.

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References Lachapelle, T. (2017). That Troubled Hertz Car Rental Deal. Bloomberg. Retrieved from https://www.bloomberg.com/opinion/articles/2017-05-10/hertz-s-deal-for-dollar-thriftyis-a-lemon-so-far Layden, L. (2020). Can Hertz Survive Another Year? Company Raises Doubts in New Regulatory Filing. The News-Press. Retrieved from https://www.newspress.com/story/money/companies/2020/05/11/can-hertz-survive-another-year-companyraised-doubts-new-regulatory-filing/3111952001/ Mohammed, T. (2020). Hertz is seeking a $1.5 billion Bankruptcy Loan. Business Insider. Retrieved from https://markets.businessinsider.com/news/stocks/hertz-seeks-15-billionbankruptcy-loan-share-sale-blocked-wsj-2020-8-1029543666 Steinmetz, J. (2020). Hertz, Dollar, Thrifty Car Rental killed by COVID-19. eTurboNews. Retrieved from https://www.eturbonews.com/572840/hertz-dollar-thrifty-car-rentalkilled-by-covid-19/...