MBA FPX 5910 Assessments 2 Capstone Proposal

Student Name

Capella University

MBA-FPX5910 MBA Capstone Experience

Prof. Name:

Date

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arose from an increase in vehicle breakdowns and accidents when inspectors urged the company to renew and replace its outdated and unsafe fleet (Steinmetz, 2020).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 Business Insider, as well as government-based SEC filings and peer-reviewed journal articles from Capella University Library.

Action Plan

Each analytical resource utilized will provide consistent annual breakdowns that will either support or refute the project’s objectives regarding how to reform the company’s revenue losses, with the goal of creating the most effective plan for Hertz to move forward.

To achieve proper data analysis, the following steps will be undertaken:

Examine Hertz Company’s current business plans and designs.
Assess the financial implications of past decisions and transactions.
Identify gaps in procedures and systems while proposing actions to mitigate those gaps.
Develop proposals aimed at improving economic outcomes.
Utilize quantifiable metrics to measure the progress of the proposed recommendations.
Evaluate the level of planning for future developments.

BetterUp Assessment Results and Coaching

The MBA outcomes required for the capstone assignment will be demonstrated through the experiences and insights gained from the program. These attributes will showcase my critical thinking, communication, leadership, and problem-solving skills by thoroughly evaluating Hertz’s situation and proposing coherent, strategically sound recommendations to restore its financial health and enhance consumer safety and satisfaction. The capstone project will highlight my problem-solving abilities by presenting well-researched, evidence-based solutions, including proposals to revise Hertz’s business strategies from alternative perspectives. My capacity to strategically plan and drive change to address issues will enable me to identify effective tactics and recommendations while leveraging coaching and motivational strengths. Simultaneously, I will ensure that business resolutions are achieved comprehensively and educationally. My reasoning and logic will be evident in my recommendations, demonstrating how the proposed strategies align with desired outcomes.

BetterUp Coaching

The utilization of BetterUp coaching is a valuable educational tool that I will employ to seek constructive feedback and practical guidance to enhance my capstone project. Throughout this assignment, leadership coaching will provide me with positive reinforcement and confidence to fulfill the objectives of my paper. Professional coaching is an invaluable resource for leaders aiming to develop their skills. Emerging leaders will be able to identify their strengths as perceived by others, focus on strategies to address weaknesses, and recognize traits that will foster and support their future success.

Conclusion

In summary, this capstone project will showcase the MBA competencies I have acquired by delivering a comprehensive financial and organizational analysis of Hertz Global Holdings, Inc. Additionally, it will produce a strategic plan to implement new policies aimed at improving the safety and satisfaction of the brand’s clients and employees, with the goal of enhancing the company’s financial position. The assessment is scheduled for completion on September 15th and will adhere to all MBA requirements and curriculum competencies. With your approval, I kindly request the opportunity to proceed to the next stage of my capstone project.

References

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-billion-bankruptcy-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-rental-killed-by-covid-19/

Welch, D. (2020). Hertz names new CEO in midst of effort to avoid bankruptcy. Bloomberg. Retrieved from https://www.bloomberg.com/news/articles/2020-05-18/hertz-names-new-ceo-in-midst-of-effort-to-stave-off-bankruptcy