Once the strategic plan is implemented into the development of the organization, a financial plan can be developed to gain capital for organizational growth. A financial problem, which can be encountered by an organization when implementing a strategic plan, is the lack of capital to put the plans in motion. If the organization does not have the financial ability to back its strategic plan, both plans will not be successful. DQ#2: What information is needed to prepare a cash budget? What is the relationship between an operating and a cash budget?
A portfolio analysis help a company with making decisions on what products that they must considered to be the main focused and which one they should get rid of. The portfolio analysis raises the issue of cash flow availability for use in expansion and growth for products in the organization. The BCG Matrix and the portfolio analysis would benefit a company to see where they stand with their products and where they should put more focus on to bring that particular product up in the market. Even though there are products that are doing well for the organization they can also become problems. The economy is going through some tough times now and it could be hard to keep the stars the stars and the cash cow the cash cows (Portfolio Analysis,
These manufacturing methods can be replicated by other businesses in the countries and improve their ability to manufacture goods. This improved ability to manufacture within the country and should lead to an increase in the GDP of the country. This will improve the trade and relations between the country and many others. Also in some cases these MNC's will invest in the infrastructure of the country. This will improve the trading process for not only the company, but also the rest of the country.
Having at their side another company advertising and selling their products will provide the opportunity to expand their market. In addition, this decision will provide clear information to the shareholders of the company’s intentions to grow and of its economic stability within the market. On other hand, merging with another company will definitely attract more customers and will increase their sales. These strategies will help in the company’s position before the globalization and will minimize the risks when important financial decisions are
Company G has prided itself on cultivating relationships with it's suppliers built on honesty, confidence, and allegiance in order to facilitate profits for both parties. However, as popularity may grow for the product so too may the market and suppliers might consider increasing costs, in which case a fixed contract would be discussed. Threat from Substitutes – If the Little Wonder does prosper their may be threats from substitutes from larger companies that are able to produce a similar product on an increased scale thereby reducing it's price and making it difficult for Company G to compete. SWOT Analysis A SWOT analysis has been done for Company G and the outcome is clearly positive. The details of that evaluation: STRENGTHS Dedication from management, employees, and suppliers 1.
The ability to tap into the global labor market will make the company more competitive by being able to offer competitive prices on products due to lower overhead cost associated with the offset in the labor cost. Attracting employees to join the company is the better option unless there is a management position that requires exceptional talent to fill the position. Relocation of prospective employees can be costly to the company and there is no guarantee that they will be long term employees of the company. With the company's plans for expansion I would recommend overstaffing. This will allow the company to stock pile talent for future
It can also help us to win over new customers or even create customer loyalty from current customers. We currently have sufficient marketing strategies to increase loyalty and profitability of consumers. However, the organization can create more strategies to have long lasting success. According to "How to Develop Marketing Strategy" (2013), “A carefully planned marketing strategy provides continuous benefits to a company”
To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product. This will increase its marketability and popularity at a reduced cost while increasing scope through synergism. The more stores KFF acquires, the greater its market power over suppliers and other smaller specialty grocery stores. This increase in marketing power will bolster bargaining power, which will help control cost, increase its output capability, and increase Kudler’s chance to reach
The reason organisation needs to control their costs properly would be that it would end up saving money on expenses and increase its revenue. This will help the company to increase its revenues and this would allow the company to invest more money if required. For example, the business should control its costs so that it saves money and by having the right amount of stock the business can then have the full benefits of selling those stocks and receiving cash which could be used for other areas of the business. In a business organisation, a budget represents an estimate of future costs and
To increase its scale and scope, KFF will expand geographicaly first through acquiring similar stores so as to sell more of the same product. This will increase its marketability and popularity at a reduced cost while increasing scope through synergism. The more stores KFF acquires, the greater its market power over suppliers and other smaller specialty grocery stores. This increase in marketing power will bolster bargaining power, which will help control cost, increase its output capability, and increase Kudler’s chance to reach