Johnson Controls Capital Investments

Assignment 2: Johnson
Controls Capital Investments
Due
Week 9 and worth 450 points

Visit the Website of Johnson
Controls Inc., located at http://www.johnsoncontrols.com, and review its 2012 financial
forecasts. According to the forecasts, Johnson Controls will increase capital
investments to approximately $1.7 billion. More than 70% of the company’s
capital expenditures in 2012 are associated with growth and margin expansion
opportunities.

Write a five to six (5-6) page paper in which you:

1. Suggest a methodology to supplement the traditional methods for evaluating
   the capital investments of Johnson Controls in the emerging markets to reduce
   risk providing a rationale of how risk will be reduced.
2. Assess the potential impact of inflation on planned capital investments in
   China and examine approaches for an accurate evaluation of the investments.
   Suggest how this knowledge may impact management’s decisions.

• Contrast the modifications you would make in evaluating the projects to
  increase internal capacity in North America to evaluating expansion projects in
  the global market and how this information will impact the decisions made
  related to expansion.

1. Examine the benefits of using sensitivity analysis in evaluating the
   projects for Johnson Controls and how this approach can provide a competitive
   advantage for the company.
2. Use at least three (3) quality academic resources in this assignment.
   Note: Wikipedia and other Websites do not quality as academic
   resources.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch
  margins on all sides; citations and references must follow APA or
  school-specific format. Check with your professor for any additional
  instructions.
• Include a cover page containing the title of the assignment, the student’s
  name, the professor’s name, the course title, and the date. The cover page and
  the reference page are not included in the required assignment page
  length.

The specific course learning outcomes associated with this assignment
are:

• Plan and evaluate capital investments.
• Use technology and information resources to research issues in managerial
  accounting.
• Write clearly and concisely about managerial accounting using proper writing
  mechanics.