Thursday, June 18, 2020
Further Market Consolidation And M&A Activities By Local Players - 1375 Words
Further Market Consolidation And M&A Activities By Local Players (Coursework Sample) Content: Question-AnswerStudents NameInstitutional AffiliationQuestion #1The Company, See Beyond Co., has three main strategic options to help it acquire market leadership position. These are consulting strategies, solutions and operations. In the field of consulting, the business supports the clients by providing strategies and operations in corporate and private banking, retail banking, investment banking and asset management. These are all areas where the firm has earned field excellence through its operations, IT governance, risk management, post-merger solutions and even in accounting and reporting compliance. This strategic point of operation for the firm has been increasing in operational size and revenue from 2% in 2007 to 35% in 2012. Clearly, it is forming an integral part of the firms overall success.The solutions strategic point involves consulting, asset management, finance management, project management data and warehouse IT platforms. The company achieves these goals through offering support to their clients in the areas such as reconciliation, decision support and credit management. In the revenue and operation size relevance, this strategic point has experienced tremendous growth. It started off with 98% in 2007 being the main competitive strategy. Its operational size reduced but revenues remained the same. When compared with the other two strategic points, this one developed over the years with minimal expansion to settle at 42% in 2011 and 2012.The third category is the operations. This is a strategic point for the company and involves change management support, archiving, document management, BTO and even enterprise content management. Another aspect of this strategy point has been the BPO dematerialization mail room. Specifically, the company has been having success in offering banking, insurance and utilities to their clients. The revenue and operational size of this strategy took shape in 2008 stating off at 54% and went on to red uce as more money was required to sustain it and the firm was not in a position to meet all the financial needs. Therefore, by the end of 2012, the strategic point was at 23%. At the end of the year, the solution strategic point had the biggest operational size and revenue collection followed by consulting and finally operations.Question #2The company needs to consider rejuvenating its operation and solutions strategies. This is because they have both been on a downward trend and constant performance respectively. When these two perform as expected and continue to rise in revenue and operational sizes, the company will be in a position to have a redefined and revigorated new business design. In other words, the new business design should be centered on improving these two strategic points to ensure that the company achieves a high revenue base to cover all its endeavors and investment and to achieve globalization objectives.With a revenue of 36 as per the ratings devised by the comp any the solutions strategy has not performed as expected. This revenue base has an EBITDA of 3,5 with its main operations being the ICY solutions and system integration. The company needs to ensure that thee ratings increase by expanding its revenue base. The operations that are currently driving the revenues in this sector being the ICY solutions and system integration. These operations should be redesigned and improved to ensure that they continue to generate more revenue. This way, the EBITDA will increase once the revenue base increases. It will ensure that despite poor performances in the industry, the company will remain afloat financially and be in a position to perform as expected. It is essential to have a diversifies source of revenue because it will help the firm to acquire financial stability. The downward trends and the constant performances have been the course of the overall poor performance by the company. Thus, the new design should be based on this idea.Further, th e company should consider engaging in new operations to boost its operation strategic point. Currently, this category has a revenue base of 19 which is a downward trend and an EBITDA rating of 1,0 which is also a decline. The main operations here are document handling, archiving, and customer care. In this area, the company should include more activities to increase the EBITDA from 1,0 to around 4,5.Question #3During transition, the company can undertake several activities to make it possible for the management to move through the challenges that will arise when the new business design is implemented. These activities would act as buffers to be used by the management to ensure that the firm is in a place to compete while undergoing these changes. These activities include forming a committee to oversee the transition from a management point of view and forming a sib-department in the human resource department to cater for the needs of the workers. These two committees will work on be half of the management so that when the central authority of the management is compromised, these teams will work to ensure that what needs to be done is done.In the managerial committee, there will be several department heads to ensure that the signatures and decision-making authority of the management is still in use even when some of the managers may not be there. Their main role will be to take their concerns and contracts that need to signatures to the manager that is free. The manager may not have the expertise to understand the items brought to them which is why the member of the managerial committee will explain everything to them and offer their suggestions. The individual member of the actual management team will choose the best alternative from the managerial expertise or offer their own suggestions for the department head and member of the acting managerial committee to decide.In the human resource sub-department, the members will be responsible for listening to the conc erns of the workers especially regarding the implementations of change. These concerns will be responded to by the sub-department or communicated to a free member of the managerial team for guidance. If none of the managers is accessible, this team will be in charge and will therefore take the necessary actions. This way, none of the activities that are meant to be done will be left unattended to as change is being implemented.Question #4 * Further market consolidation and MA activities by local players
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