Testing a Strategic Investment Evaluation Tool at Kilgors. A digital-based Simulation Case

Kilgors is a diversified listed multinational organization operating across three major industries: winery, hotels, and media and entertainment. The focus of the case is the capital investment appraisal of strategic investments. Kilgors management is seeking more comprehensive ways to evaluate strategic investments and has developed a new tool—the strategic investment model (the SIM model)—to assist with the evaluation of strategic-type investments. Your role is to spend time at Kilgors through participation in the capital investment review committee meetings and then test the new model using two proposed investments presented at the meeting. The case opens at one of Kilgors’ capital investment review committee meetings. You are welcomed as an invited guest. Three proposals are in the process of being evaluated by the committee members. Each have their own issues and serve to highlight both the financial and nonfinancial aspects of accounting. They seek your advice in selecting one of two competing proposals classified as “strategic” as well as on the adequacy of the new SIM model. Is this new model likely to enhance management decision making? This digital simulation case can be accessed at www.kilgors.com through a student registration process. Your instructor will provide the relevant registration credentials.