Enterprise Value Map

We evaluated our company’s position in the industry, and found ourselves in an excellent starting position to further develop our products and match them to the industry’s needs. Our market share is adequate and we can advance further with our strategy improve and reposition our products in the coming years. We have underutilized capacity, which we intend to improve, while increasing automation to reduce costs. We have plans to improve our promotion to improve product awareness and with the appropriate product lines we will increase price to improve margins and better align our high-end product image. Our current financial position is optimistic, showing our leverage (Assets/Equity) at 2.0, when our goal is to maintain 1.5-2.0 overall. By utilizing the analysis tools we are learning what elements are driving demand, how to effectively tailor our products through R&D, how best to adjust our marketing and pricing, while lowering input costs, in order to improve margins and to ensure our stakeholders are all satisfied.

II. Business Model and Strategic Plan Part I: Existing Business or New Business Division; Vision, Mission, and Value Proposition ………………………………6

Over the last three years, we have worked tirelessly against a small number of critical objectives that underpin Value Creation: expand gross margins, improve overhead leverage, accelerate asset turns and more effectively allocate capital. As part of this work, we have implemented important changes in our decision-making process and, in turn, how we operate the business and measure its success. The positive impact these initiatives have had on our operating and financial results has been dramatic. As a direct result of our efforts to deliver better ROIC, we have driven significant gains in our financial and operating performance including:

How much value do you expect to be created by operating improvements and capital structure changes envisioned by CD&R?

The third table is to outline some of the activities we might find at each stage of the marketing process; this is brief summary of the importance of the different stages.

To maximize shareholder value through a systematic, disciplined, reliable, ethical, and ongoing process of supply of goods or services.

This book makes it easy to implement the strategies in your company. If you know Steve you know he is the ultimate example of

This analysis delves into the company’s operation management principles to interpret its successful strategies and offer future recommendations.

That relates directly to winning a larger market share. The short-term goal for the company should be to cut coasts and improve the human resource department functions. Which can be done through the above stated suggestions of the improvement of the business.

Applying our knowledge about Economics of Strategy, we know that there are different ways to create additional value:

One of the suggestions was to expand into IT consulting and services. This is one way to increase in revenue from services, increase IT market share, decrease in response time to service calls, and create a number of new accounts. However, this would require implementation of an additional approach to marketing, increased technical expertise of employees, extensive product knowledge management throughout the organization, and service upgrade forecasting. The IT solution would be to track service call history, allow sharing of service and product information among divisions, provide an accounting and billing systems for IT consulting services, and integrate the three databases that are currently servicing business needs, which are D&B, Pivotal, and iMarket.

2.Align the organizational structures of the company by establishing profit centers. Focus the ERP system on worldwide CRM. Adjust the compensation system to reward brand thinking and brand management.

A normal person does not jump out of bed and go to any job they find with the intent to make the company better than it was the day before. There must be a reason, an incentive, to go to work each day to do their best. An Employee Value Proposition (EVP) contains the defined incentives presented to employees that bring them to work each day. Soldiers in the Army are no different.

Our choices led to a constant increase in net income over the three years. Short term debt increase by approximately 100% percent but steadily reduced over the next three years. We were happy with the positive growth of the company and the fact that we were able to pay off most of the initial short term funding required by the increase in working capital requirement. Overall the current situation of the company in 2018 is good, although the total value created is less than 20% of that created in phase 1. From this we learned that the value of the firm can be significantly increased more through a reduction in working capital requirement than through increasing the firm’s sales and net income.

The company has a set of priorities where it focuses its budget on. The company has been doing well financially but it still wants to maintain its financial standing through providing an effective and efficient service with lesser cost and maintained profits. (Rao V S P., Hari Krishna V, (2008): Strategic management)