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Thomas Money Scenario

In: Business and Management

Submitted By beckylowman
Words 1524
Pages 7
Thomas Money, Inc. Business Plan
Rebecca Summey-Lowman
University of Phoenix
Fred Bell
April 16, 2012

Thomas Money Business Plan
Challenges are not new to Future Growth Incorporated (FGI). In fact, the company's success is largely attributable to its ability to navigate changing economic conditions over the past 70 years. In 1940, FGI, known then as Thomas Money Inc., began as a consumer finance company, granting small loans for household needs. Within five years, the company expanded its services, offering business and commercial real estate loans, and business acquisition financing. Six years after its inception, the company made a pivotal decision to diversify its core business by branching into equipment financing. A subsidiary, Future Growth, Inc. was established. FCI capitalized on the rapid growth of the construction and forestry after the end of World War II and purchased a manufacturing company. This allowed the company to build, sell, and finance their own brand of building and forestry equipment. To focus on this new business strategy, the company stopped financing other brands of equipment. These tactical business decisions reaped huge financial rewards. The company's profits steadily increased and never had a reduction in the workforce. Stocks soared from $5 to $85.60 with six stock splits from 1975 to 1998.
The Current Economic Condition
The downturn in the economy has caused a 30% drop in new home sales. Economists are predicting additional declines in the construction industry in all segments of the industry except for nursing homes and hospitals. Additionally, several forestry states have encountered flooding, fires, and protest from animal activists. These factors have caused a change in the business climate and the company has seen stocks drop sharply to a present value of $35.
There are currently many domestic and international companies...

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