Business Case Studies & Business Publications

Central Michigan Concrete

Lipson, Marc L.

Case

Central Michigan Concrete

Lipson, Marc L.

F-2155 | Published April 20, 2026 | 7 Pages Case

Collection: Darden School of Business

Add To Cart Buy Now

Product Details

Product Overview
Learning Objectives

In early December of 2025, Brandon Morgan, the new CFO of Central Michigan Concrete (CMC), a wholly owned subsidiary of National Concrete of Canada (National), is preparing a 2026 financial forecast in preparation for a meeting with CMC’s bank and representatives of National. Though CMC has successfully weathered the trials and tribulations of the past five years, and performance has been steady and profitable, the company is now under pressure to achieve three things simultaneously: a tripling of its prior-year dividend, paying down its debt, and making much-needed capital improvements. In preparing a forecast based on case facts and business history, it becomes clear to students that the company cannot achieve all these goals. This forces students to think through priorities and identify alternatives. The case is easily adapted to many levels of student ability and would be appropriate for undergraduate programs, graduate programs, and nondegree executive programs. It has been used at the University of Virginia Darden School of Business in the MBA program core finance course as an introduction to forecasting. There is more than enough material for a regular 90-minute class, and the case can be easily tailored to fit various learning objectives. It has also been used quite effectively in executive education programs.

This case can be used to achieve the following learning objectives: (1) Introduce financial statement forecasts as a tool for understanding a business and quantifying the consequences of choices. (2) Build familiarity with financial forecasting where line items are forecasted based on ratios or standard accounting identities and where debt levels are used to plug any financing shortfall. (3) Generate understanding as to how operating policies, as represented by ratios, drive performance and determine financial needs. (4) Build comfort with establishing priorities for allocating resources between operations and financial obligations.