MBA FPX 5910 Assessments 2 Capstone Proposal MBA-FPX5910 MBA Capstone Experience

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Capstone Proposal

Introduction

Hertz Global Holdings, Inc. (Hertz) is currently facing unprecedented financial and leadership dysfunction. Poor decisions have placed this industry-leading rental car company in a precarious financial situation. Over the past decade, Hertz has accumulated significant debt and pursued low-cost acquisitions while facing allegations of manipulating financial statements to inflate profits (Whitehouse, 2019). Unfortunately, the COVID-19 pandemic has further exposed the company’s vulnerabilities, leading to a decline in revenue due to reduced customer travel. With ongoing inquiries from the SEC and Federal agencies, along with several pending lawsuits, Hertz risks losing its competitive edge amid backlash from stakeholders, employees, and customer dissatisfaction (Steinmetz, 2020). This capstone project aims to analyze the financial data and legal challenges facing the firm to develop strategies that enhance employee and customer satisfaction, rebuild the company’s credibility, improve its financial condition, and regain its competitive advantage. The project will evaluate the deterioration caused by legal filings against Hertz and their impact on the company’s financial health, reputation, and social responsibility.

Summary

It is believed that numerous management failures and a lack of oversight have contributed to Hertz’s current financial decline. Whitehouse (2019) asserts that the negligence and misconduct of Hertz’s executives have created an inappropriate corporate culture, damaging the company’s reputation, financial standing, and operational success. The scope of this capstone project will reveal how mismanagement and mishandling have transformed a thriving American powerhouse into a company facing financial challenges. It will also explore how these negative behaviors have affected the safety practices and procedures for Hertz’s staff and customers, ultimately harming its public reputation and financial condition. Additionally, this project will delve into Hertz’s financial records, particularly stock market valuations, and review several significant lawsuits that have emerged following the discovery of falsified car maintenance records.

These issues arose from an increase in vehicle breakdowns and accidents when inspectors urged the company to renew and replace its outdated and unsafe fleet (Steinmetz, 2020). The design of the capstone project will include data, methods, and models to assess the financial landscape, competitive advantage, and corporate responsibility by applying PESTEL, Porter’s Five Forces, VUCA, and SWOT analysis techniques. An evaluation of the systems involved, or a Value Chain, in Hertz’s rise and fall will also be part of the project to identify the necessary business systems, strategies, methods, and technologies required to restore the company to a healthy state. Proposed changes will include new strategies, processes, and measures focused on restructuring organizational culture, enhancing management accountability, and adhering to industry ethics.

Discussion of the Proposal

The purpose of this capstone project is to identify the consequences of inadequate organizational preparation and irresponsible management, which have led to decreased customer and employee satisfaction, significant revenue losses, and legal actions against Hertz due to insufficient safety measures. The company has also experienced high turnover in its executive leadership since 2014, with Mark Stone being appointed as the fourth CEO in six years (Welch, 2020). The lack of consistent leadership, policies, and procedures has cost Hertz billions in profits, resulting in frustrated shareholders who have expressed their dissatisfaction with disappointing annual performance (Mohammed, 2020). Hertz’s poor organizational culture and safety concerns have allowed competitors like Enterprise and Avis to gain market share and competitive advantages. A thorough examination of Hertz’s culture, business practices, and structure will reveal opportunities for extensive reforms and improvements.

Strategy and Scope

The scope of this assignment is to investigate the adverse financial impacts of Hertz’s stock valuations, the decline in revenue share, and the loss of consumer trust while proposing a favorable strategic plan. Additionally, the project will aim to implement proposals to reduce the company’s substantial multi-billion-dollar debts and reform its policies and procedures. The strategies employed to meet the capstone assessment requirements will include researching Hertz’s financial history through financial and business news websites such as Yahoo Finance, Wall Street Journal, Forbes, and