...forces at work there. PESTLE stands for political, economical, socio-cultural, technological, legal and ecological factors. There are different opinions in literature about the inclusion of legal and ecological factors. Their importance doubtlessly differs from industry to industry. In case such factors are of high relevance to an industry, they should be analyzed separately. In industries that are less influenced by legal and ecological factors, they could be allocated to the other categories, e.g. legislation as a political factor or ecological awareness as a socio-cultural factor. In any case it is important to include only external factors which an organization cannot influence by itself. The following chart shows some examples for typical content of a PEST. These examples are not comprehensive; they should be modified according of the actual subject of analysis. Political Legislation (current and pending) Laws relating to the industry Tax laws Regulation of transfer for capital and labour Stability of the political system Membership in free trade areas Economical Development of relevant economic indicators Business cycles Unemployment Availability of relevant resources Key industries, industrial clusters Industry structures Socio-Cultural Population and demographics Distribution of income Mobility Level of education Customer behaviour Savings rates Preferences for...
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...management strategy © 2011 Innovation and Business Industry Skills Council Ltd Page 1 of 17 Assessment Task 2 BSBINN601B Manage organisational change Submission details Candidate’s name Phone no. Assessor’s name Phone no. Assessment site Assessment date/s Time/s The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor. Submit this document with any required evidence attached. See specifications below for details. © 2011 Innovation and Business Industry Skills Council Ltd Page 2 of 17 Assessment Task 2 BSBINN601B Manage organisational change Performance objective The candidate will demonstrate the skills and knowledge required to develop a change management strategy. © 2011 Innovation and Business Industry Skills Council Ltd Page 3 of 17 Assessment Task 2 BSBINN601B Manage organisational change Assessment description Using the scenario information supplied, the candidate will undertake a cost-benefit analysis for high-priority change requirements, undertake a risk analysis, identify barriers, and develop mitigation strategies. The candidate will develop a change management project plan, assign resources and develop a reporting process. The candidate will then present their analysis and project plan to management for approval. © 2011 Innovation and Business Industry Skills Council Ltd Page 4 of 17 Assessment...
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...be known about the new venture’s distinctive nature. a. Although the executive summary appears at the beginning of the business plan, it should be created after the plan is finished. Only then can an accurate overview of the plan be written. b. An executive summary shouldn’t exceed two single-spaced pages. The cleanest format for an executive summary is to provide an overview of the business plan on a section-by-section basis. 3. Industry Analysis. This section should begin by describing the industry the new business will enter in terms of its size, growth rate, and sales projections. It is important to focus strictly on the business’s industry and not its industry and target market...
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...After in-depth financial analyses and qualitative considerations, we recommend CPPIB-Private Board proceed with the competitive auction of Swedish Tower Company (STC), a Swedish owner of television and mobile telecommunication towers. In particular, we identified a leveraged buyout capital structure to be suitable given STC’s proven earning growth and strong market position, along with significant opportunity for cost reduction. We conducted financial valuation using market comparison method. The purchase price is between 2,653 million and 3,243 million. The IRR of the project is 28% when exiting by the end of 5th year. Overall this project will generate steady growth with great upside potential and low company-wide or industry-wide risks. We will dive into the details of analyses in the sections followed. Method and Valuation Drivers Primarily, we used transaction multiple method of valuation. Given the very nature of LBO, these additional drivers need to be carefully considered when valuing equity return: 1. Purchase Price and exit price will directly affect the return generated. Exit price is calculated using exit multiple. A higher exit multiple will increase estimation for selling price and thus the underlying equity value. 2. Leverage Ratio: A higher leverage ratio will lead to higher return upon the sales at the end of 5th year, this is because debt financing is cheaper than equity financing equity. In our valuation, we used a capital structure of 70/30 debt/equity...
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...1. Describe the 3 different Cloud Services available to corporations today? The cloud is in huge transformation in the business industry that increases the compute capacity and networking capacities. The computer industry is growing in an up-to-date fashion and therefore, cloud computation is the latest fashion that is changing rapidly and it is very difficult to understand cloud and its different offers or services in the corporation world. As Andrew McAfee has focused three important services, which cloud provides. These services are divided into three categories such as: 1. Infrastructure as a service: The IAAS is the most basic service and its users are technology companies and use it as a server in the cloud. These tech companies are expert in computing in this IAAS system. They are very expert in using this service, but not well prepared to install or maintain it. 2. Platform as a service: This is another basic service used in the cloud platform, which the companies use to develop the software for its existing customers with customization of its customers. In this service, various programming languages are used to develop a software such as; Java, .NET, Python etc. that help in writing the codes in a small time period and allow the customers to cover transaction. 3. Software as a service: It is most the important service, which is used solely by the cloud itself without using any hardware or software in the data center. It has become successful in salesforce.com...
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...fleet in the first quarter of the 2012 financial year – Will allow increased efficiency and better service so that small to medium package deliveries market share increases by 7.5%. * Implement 1 person/truck policy using automatic lift gates in the first quarter of the 2012 financial year – Will allow expansion of business in the metropolitan area so that small to medium package deliveries market share increases by 7.5%. * Implement Human Resources function in company structure by the first quarter of the 2012 financial year – Will promote development and maintenance of a well-trained, cohesive and well-motivated workforce. Will reduce injuries. Will improve industrial relations. Review (in report) the organisation’s performance against strategic goals. See below for possible content of report? People: * Truck drivers: potential for continuing pay disputes exists; potential for resistance to breaking up of two-man teams. * Management: No implementation of HR function. Processes: * One driver per truck: not yet implemented. * Automatic lift gates: not yet implemented. Technology: * GPS: not yet implemented (testing phase). * PDA: not yet implemented (testing phase). Structure: * HR function: not yet implemented. Identify (in report) two trends and explain how the trends currently or will impact organisational objectives? Possible trends: * Use of GPS and PDAs in industry to track distribution. Courier companies...
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...Five Competitive Forces Analysis in the Insurance Industry RichardSmith Managerial Economics December 6, 2013 Industry Insurance is something that is needed by everyone today. It is used by individuals, business, corporations, etc. to help mitigate or minimize their financial risk. Various types of insurance exist today, from home, health, life, auto, travelers, indemnity, boat, renters, and even pet. Competition between insurance carriers is very stiff. In fact, in the United Kingdom (UK), the competition is so stringent, they have created a Competition Commission (CC), which is designed to ensure healthy competition between insurance companies in the UK for the ultimate benefit of the consumers and the economy ("Competition Commission GOV.UK."01). Many insurance companies have gotten caught up in having an unbalanced pool of insurers because they were not prepared and did not do their homework. The have to be very careful in their underwriting process to ensure they insure the most desirable individuals. Many insurance companies have learned quickly the value in the knowledge and power of information obtained from doing research and the huge financial risk associated with getting stuck with a poor unbalanced pool of insured. Therefore, many insurance companies today are utilizing various tools and setting themselves apart from the competition via the competitive forces in an effort to avoid the financial repercussions associated with not being prepared. That way...
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...Global business drivers: Aligning information technology to global business strategy by B. Ives S. L. Jarvenpaa R. O. Mason The alignment of worldwide computer-based information systems and integrated business strategies is critical to the success of multinational firms in a highly competitive global market. In this paper, information technology (lIT) solutions are explored that drive firms toward making economic decisions based on worldwide distributed knowledge. These solutions focus on a number of entities (or global business drivers) that identify where a firm can benefit most from the management and application of the technology. A variety of approaches for overcoming the barriers and risks of applying this technology are also discussed. n the forefront of the transition of a firm to a globally coordinated and managed organization is information technology. Information technology can drive the change, be harnessed to it, or rise up as a severe impediment. The chief executive of a major corporation has suggested that "globalization is no longer an objective but an imperative, as markets and geographical barriers become increasingly blurred and even irrelevant." 1 This paper explores how the application of information technology to the transition process can result in successful firms in a global market. Information technology (1fT) can drive a firm toward globalization in a number of ways. Using computer and communications technologies, IBM SYSTEMS JOURNAL, VOL 32...
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...for a business model. 3 What Is a Business Model, Really? ‘Business model’ is a widely used but remains a fuzzy concept with no universally accepted definition. Nevertheless, a good business model is essential to every successful enterprise, new or established. It is… A valuable analytical and communications tool Tool for realizing value from technological innovation Our working definition of business model: A representation of (1) what value a new venture proposes to offer to customers, (2) how it proposes to create and deliver it so that customers are willing to pay for it and (3) how the venture proposes to capture part of the value for itself and its partners 4 What A Business Model Is Not A business model is… Not a financial model or spread sheet although it is generally embedded in a business plan and expressed in dollars and...
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...1. What do you think the most important performance measures are for the airline industry? Why? How has Southwest Airlines been doing on these measures? For performance measures of a company whether it manufactures products or provides services, there might be a lot of factors related to financial statements such as sales revenue, annual net income, dividends and so on. However, when it comes to airline industry, the key factors need to be more specific. Since the airline industry is a kind of oligopoly industry, the market share could be one of the most important performance measures. If a company has more market shares than other competitors for a certain period, the company is likely to be more competitive than others in financial aspects such as profits for on-going business and dividends for shareholders, which is the main goal for every single entity in business. Between 1991 and 1993, for example, SWA’s share had increased from 26% to 45% when other competitors were losing theirs. In addition, even until 2013, it has been showing the magnificent performance for 40 years. In addition to customer satisfaction, the most effective factors for SWA’s success in the market seem to the cost-effective cost structure. Actually, compared with other competitors in the market, SWA has the most cost-effective cost structure which can make it have low price policy for the long-term, and the growth of costs is not high: Between 1984 and 1994, over a decade its costs had increased...
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...1(d).Value Chain Analysis: A Way to profit improvement & cost Reduction Learning Objective 1. how to identify the value added activity 2. how to rectify the non –value added activity 3. application in profit planning & cost reduction INTRODUCTION Competitive advantage for a company means not just matching or surpassing their competitors, discovering what the customers want and then profitably satisfying, and even exceeding their expectations. As barriers to inter-regional and international trade are diminishing and as access to goods and services are growing, customers can locate after identification and «the best of what they want, at an acceptable price, wherever it is in the world. Under growing competition and, hence, rising customer expectations, a company's penalty for complacency becomes even greater. A strategic tool to measure the importance of the customer's perceived value is value chain analysis. By enabling companies to determine the strategic advantages and disadvantages of activities and value-creating processes in the market place, value chain analysis becomes essential for assessing competitive advantage. Value analysis or value engineering is one of the most widely used cost reduction techniques. It can be defined as a technique that yields value improvement. It investigates into the economic attributes of value. It attempts to reduce cost through ...
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...Business 2nd Edition. Wiley. p.69 Creativity ideas, concepts & inventions Innovation the process of development and commercialisation Entrepreneurship couples opportunities and resources Innovation Exploit Incremental Explore Radical Kirzner The producer-entrepreneur •Alert and responsive to opportunities that exist •Exploits disorder (gaps) to move the market back to equilibrium Schumpeter The innovator-entrepreneur: •Creates products and processes to disturb market equilibrium •Creates opportunities Innovation & Performance Some ‘stylised facts’ about the relationships between innovation and performance: Relationships between R&D, patents, new products and performance are strongest at the industry level, weakest at the firm level Returns from process innovation are typically four times those from product innovation R&D expenditure stronger than patents in predicting performance Innovation & Performance At firm level, R&D and new products both associated with higher value-added and market to book values Returns from use of new technology higher than from its generation Sources: J. Bessant & J. Tidd (2007) Innovation and...
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...Chevrolet (Chevy) are in the automotive industry and have been in completion for many years start back in 1908, both companies started in the state of Michigan and have been battling it out for profits, market share and hometown bragging rights. Ford was founded in the suburb of Dearborn, Michigan and Chevy was founded in Flint, Michigan. Ford and Chevy both are good-producing sectors, they both manufacture automobiles that are similar but different. They each have a mission statement, Ford’s mission statement “One Team, One Plan, One Goal.” Ford’s mission statement is defined to each part of the statement, One Team meaning people working together as a lean, global enterprise. One Plan meaning aggressively restructure to operate profitably at the current demand and changing model mix, developing new products our customers want and value, finance our plan and improve our balance sheet, and work together as one team. One Goal meaning an exciting viable Ford delivering profitable growth for all. Chevy’s mission statement is an unofficial statement “We win when the customer says we win.” Chevy has an unofficial mission statement but uses more of Five Principles to guide its business, Safety and Quality First, create long-life customers, innovate, deliver long-term investment value and make a positive difference. Both Ford and Chevy are oligopoly competition, being that both companies supplies a large portion of the automotive industry. Being in the oligopolistic market these...
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...describe the purpose of each step Explain the concepts of strategic thinking and analysis Describe the various levels of strategy and the links between them Explain the drivers, challenges and benefits of globalisation Discuss the role of the accountant in the strategy process PRACTICE • • • Have you completed the questions in the Study Guide? Have you completed the Learning Examples in the Student Notes? Have you completed the knowledge check questions from this module? Key revision areas: • The different approaches to strategy: rational, processual, evolutionary, systemic • The levels of corporate strategy and the scope/content of each • The drivers, challenges and benefits of globalisation • Evolution of corporate strategy as a concept – Porter, Mintzberg • Operational effectiveness v. strategic positioning • Developing the strategy – see Focus slide • Ethics in leadership: classical and socioeconomic views Strategy and leadership Approaches to strategy Strategy process • Rational – Ansoff, Chandler, Porter’s five forces • Processual – emergent strategies • Others – evolutionary, systemic • External environment – PESTEL (opportunities; threats) • Internal environment – strategic and operational drivers, people/organisational drivers (strengths; weaknesses) • Evaluating and selecting growth options –...
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...capabilities, structure and management systems and industry environment - Measurement of profitability, Profit most useful measure of firm performance (maximization of profit) - Tools of Financial analysis - Shareholders and stakeholders - Value: - Commerce is creating value - Firm have to know what profit is and how to measure it - Economic profit more reliable measure as accounting profit - Measure of e.p. is EVA, economic value added - Firm must maximize the future net cash flow to maximize its value and mimimize cost of capital - C.f. forecasts are very difficult,estimate future c.f. need make assumption - Important for value maximization is the consistency Real options theory - Two types: growth and flexibility options - Strategic alliances and joint ventures, investment in core products Putting performance analysis into practice - Need to asses current situation - Identify current strategy - Identify sources of unsatisfactory performance - Balanced scorecards -> balancing financial and strategic goals Profits and purpose - Companies that are more focused on making profit are often unsuccessful at achieving their goals - “Profits are important for existence of a company but not the reason for its existence” - Important is to have a dream, to have a joy of creating things - To have a vision for the future and a core ideology (values and principles) are both important for a powerful strategic of a company Chapter 3: Industry Analysis: The fundamentals ...
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