Final Test MGT657

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(NUR AIN MADIHAH BINTI HARUN) (2020602056) KBA249 5A

QUESTION 1

a)

example four (4) issues that require finance and accounting decisions are Determine
capital structure, develop projected financial statements, perform corporate
valuation, and Analyse financial ratios. First is capital structure. When comparing
capital structures, analysts look at the D/E ratio. Entire liabilities are divided by total
equity to arrive at this number. Incorporating both finance and equity into company
operations is a skill that savvy businesses have mastered. However, businesses
often risk doing so by relying excessively on debt and outside finance.

Second is, Develop projected financial statements. The projected financial


statements, which take into account current trends and expectations, are what
management believes it can use to determine the financial picture as of a future
date. The expected financial statements will consist of an income statement and
balance sheet that are only at the summary level.

Third is, Perform corporate valuation. The process of determining the whole
economic worth of a company and its assets, usually referred to as business
valuation, is called company valuation. To ascertain the present value of an
organisation or department, all facets of a firm are assessed throughout this
procedure. Various purposes, including establishing selling value and tax reporting,
necessitate the valuation process.

Lastly is, Analyse financial ratios. Using data from financial records, such as the
balance sheet and statement of cash flows, financial ratio analysis assesses a
company's financial health. The following financial ratios are employed: profitability,
solvency, efficiency, coverage, market value, and others to analyse these factors for
business owners and typical investors.

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b)

Market segmentation is a marketing term for the process of dividing prospective


consumers into segments or groups that have similar needs and responses to
marketing efforts. By using market segmentation, businesses may reach a range of
client demographics that have diverse perspectives on the whole value of products
and services.

The products, marketing, and advertising that people use on a daily basis
demonstrate market segmentation. The success of automakers depends on their
ability to precisely pinpoint market segments and create products and marketing
plans that appeal to those groups. Cereal producers actively market to three or four
market segments at once, promoting traditional brands that appeal to older
consumers and healthy brands to health-conscious consumers while fostering brand
loyalty among the youngest consumers by connecting their products to, say, popular
children's movie themes.

A sport shoe manufacturer could identify market segments including elite athletes,
regular gym goers, stylish women, and middle-aged men who want quality and
comfort in their shoes. In every case, the manufacturer's understanding of the
marketing needs of each market segment enables it to develop and advertise
products with a high degree of appeal more successfully than it could by attempting
to appeal to a larger audience.

Three (3) major reasons to have market segmentation for a new electric vehicle (EV)
car. a new electric vehicle (EV) automobile with a greater brand image. Management
is forced by segment marketing to think about how it wants to be regarded by
different demographics. Management must decide what message to generate after
the market segment has been defined. These ads are directed at a certain audience;
thus the company's branding and marketing are probably quite purposeful. The
indirect result of this can be improved consumer satisfaction with the business.

The second reason for new electric vehicle (EV) automobile that is better positioned
in the market. Companies have the chance to decide exactly what message they
want to send to the market and their rivals thanks to market segmentation. By
highlighting the unique ways in which the business differs from its rivals, this may
also assist establish product distinction. Instead of using a general marketing

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strategy, management develops a focused image that is more likely to stick in


people's minds.

The third is Greater Brand Loyalty Potential for New Electric Vehicle (EV) Cars. The
chance for customers to establish lasting relationships with businesses grows
because of marketing segmentation. Customers may respond well to a more direct,
personable approach to marketing that encourages a sense of inclusion, community,
and belonging. Additionally, market segmentation raises the likelihood that you will
locate the ideal clients that match your product line and demographics.

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QUESTION 2

a)

Three (3) issues that related to human resources today are management changes,
leadership development, and workforce training and development. First is
management changes. A business's strategies, structure, and internal procedures all
expand as it expands. Some employees find it difficult to adapt to these changes.
During times of transition, a lot of businesses report lower production and morale.
Business owners should concentrate on explaining to everyone the advantages of
the change as a solution. An excellent place to start is with regular employee
meetings. Your staff will be more likely to support the change if they are aware of the
what, why, and when of it.

Second is, leadership development. According to recent research, More than one-
third of companies only do a poor job, at most, of putting leadership development
programmes into practise. In the State of Leadership Development Study conducted
by the Brandon Hall Group, 36% of the companies polled admitted that their
leadership development practises fall short of best practises. The solution is that
your management team requires leadership development to stay enthusiastic and
engaged and to prepare for jobs with greater responsibility in the future. Include it in
the culture. Give them chances each day to apply their abilities. They will be
motivated and can grow their talents if they achieve their goals.

Lastly is, workforce training and development. Another typical HR issue is


underfunding the training and development of lower-level personnel. Finding the
necessary resources might be difficult for some firms. Some of your toughest
employees are those on the front lines, and they might not have time to attend a
training session. Training and development can serve as a remedy without costing a
lot of money or time. Encourage top management and managers to mentor their staff
members. Another option is to offer online training programmes that people may do
at their own leisure. You may have a devoted, effective team if you invest in your
employees.

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b)

There are three different kinds of organisational structures: matrix structures,


divisional structures, and functional structures. for an effective structure an
organisation is divided into departments according to areas of competence when it
has a functional structure. Functional managers or department heads oversee these
divisions, which operate as functional units. Team members in each department
report to department heads, who then report to the top management of the
organisation to let them know how their functional areas are doing. In a functional
organisational structure, departments including those in sales, production, human
resources, information technology, marketing, and law are examples of departments.
These divisions may be categorised into several geographic regions in certain
multinational organisations. In smaller businesses, they could only take up separate
spaces in the same office complex. Starbucks is an illustration of a functional
structure in real life. A vice president oversees each of the company's three
divisions. Department managers who are subordinate to two senior managers assist
the vice president. The majority of the company's staff are lower-level workers in
various departments. As an illustration, some employees work in the coffee
department. These employees are in direct client contact and answer to their
managers. In this manner, everyone is conscious of their obligations. By removing
delays, the business guarantees that clients receive their orders on schedule.

Contrarily, a divisional structure is a sort of organisational structure that divides


corporate operations into groupings such goods or services, consumer groups, and
geographical regions. Large corporations rely on divisional structures and establish
separate divisions to distribute tasks across parent organisations (headquarters) and
their subsidiaries (the branches). An excellent illustration of a divisional
organisational structure is provided by McDonald's Corporation, one of the largest
fast-food chains in the world. The entire company is split up into distinct divisions,
each with its own set of duties. This kind of company structure encourages
autonomy while also allowing organisations to adapt to changing markets and
geographical conditions.

Lastly, there are matrix structures. A matrix-style organisational structure combines


project teams with the traditional departments seen in functional organisations. In a

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matrix system, people work together on groups and initiatives outside of their
respective departments or functions. For instance, a project or task team comprised
of engineers and design specialists as well as professionals knowledgeable in
marketing, finances, human resources, and manufacturing may be established to
develop a new product.

As an illustration, think of Philips. The Dutch corporation Philips, which manufactures


gadgets worldwide, is certainly familiar to us. It is a classic example of a matrix
architecture and was built in the 1970s. After the Second World War, it was the first
organisation to truly adopt a matrix structure. National organisations (NOs) and
product division networks were created (PDs). By creating a coordinating committee,
the network was able to settle disputes in spite of its scale. Philips found that
everyone couldn't handle it because of a lack of accountability. In order to deal with
the recurring issues, the organisation updated its organisational design in the 1990s.
Few powerful PDs who controlled managing earnings and losses internationally were
separated as a result of this restructure.

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QUESTION 3

a)

The ideals, principles, and standards that direct the individual and collective
behaviour of the employees in a company are known as organisational ethics, also
known as business ethics. Corporate ethics are designed to direct and control
activities and business circumstances such that detrimental behaviour is proactively
avoided. In a company, an ethical culture may be developed in four different ways.

Clear expectations for what is acceptable and unacceptable come first. Every
organisation has both explicit and implicit rules and policies that govern how
members are to behave. Everything from appearance to attitudes and conduct with
clients, co-workers, and the public are covered. Even within the same institution,
cultural differences can be quite stark. Numerous cultural expectations and practises
within a company are suggested rather than explicitly stated. A more ethical
business culture starts with clearly defining standards for behaviour among all
employees.

Modelling desired behaviour is the second step (especially from organisational


leaders). Al Bandura, a well-known Stanford psychologist, and others found in their
research that people frequently copy the behaviour of others, particularly of powerful
figures in the workplace. The ideal behaviours that leaders of organisations should
encourage must be shown by them. High-profile executives must uphold the highest
ethical standards if an organisation wants to have them. Most of the time, people's
actions speak louder than their words.

The third tip is to encourage desired behaviours and discourage undesirable ones. It
is sometimes simpler to say than to do, even though this is a very straightforward
reality. When deciding which behaviours to promote and which to discourage,
organisations need to be deliberate and thoughtful. It can help a lot to provide
chances for acknowledgment, prizes, and social rewards for ethically sound actions.
It goes without saying that these incentives or reinforcements need to be carefully
chosen and administered, paying close attention to both the intended and
unintentional effects of their use.

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Focus on Problem Solving and Skill Development is the final step. Institutions can
support the development of ethical decision-making and behavioural abilities as well
as methods for dealing with ethical problems by providing seminars, user-friendly
reference materials, and peer or mentor consultations.

b)

Whistle-blowing channels are now commonplace in corporate environments.


However, some employees are still not comfortable to whistle blow should they find
something incorrect. two (2) ways on how organization can encourage whistle-
blowing activities in organizations are encourage a culture of speaking up and Put in
place defined processes.

First, encourage a culture of speaking up. Transparency must start with a culture that
encourages speaking up, sometimes known as a "whistleblowing culture." The key to
promoting open communication among employees is to let them know that they may
speak with their line managers and other corporate executives about any issues or
problems. Employees should be encouraged to highlight anything of concern they
observe over the course of their workday, in addition to feeling free to discuss any
issues they may have with management. The easiest approach to avoid infractions
turning into significant problems is to report them right away. This need to be viewed
as a successful workplace decision and recognised as such.

Put in place defined processes is the next step. There is a lot of effort to be done to
facilitate whistleblowing, from creating codes of conduct to creating internal reporting
systems. Implementing an internal reporting system is a good place to start. This
approach should safeguard the privacy of the reporting party and any other
individuals they may mention whether they be dependable co-workers or those who
are being accused of misconduct. The organisation must respond to the report by
acknowledging receipt within seven days and providing input on the findings of its
inquiry into the report within three months. The comments may list already taken
corrective action or suggest future courses of action. You should have someone
qualified and impartial in your organisation who can receive reports, look into the
concerns whistle-blower’s make, and interact with them. The General Data
Protection Regulation requires that you secure the names of individuals who report,
therefore you should be aware of the deadline (GDPR).

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QUESTION 4

As strategists facing many challenges in setting strategic management for


organization. for example, first is set poor goals. Strategic goals are typically
important and difficult undertakings that almost always require a large amount of
resources spread across numerous departments and locations to be effective.
Teams that create clear goals will have more clarity on tasks and priorities.

The incapacity to keep track of development comes next. Many firms continue to
track objectives using spreadsheets. It is feasible for this to occur between
management and an employee, but the techniques employed do not make it
straightforward to gather data or promote transparency. And to make matters worse,
its use makes it challenging to supervise the on-going accomplishment of strategic
objectives.

And finally, those unrelated to the plan. People generally want regularity and order,
so we are more inclined to adopt an operational tactical emphasis when our efforts
may produce instantaneous effects. We can change people's behaviour given that
most strategic goals aren't this simple and limited in scope by Aligning professional
and personal objectives is the greatest method to include individuals in strategy
more deeply. For instance, developing new abilities, taking on additional
responsibility, collaborating with other teams and individuals, and working outside
their area on what we refer to as "strategic teams."

Implementing an open, transparent structure across the whole strategy-development


process for your company is crucial. Those at the top of the hierarchy shouldn't have
exclusive authority over strategic management. Everyone in the organisation has to
always have a clear understanding of how the strategy execution is going in order for
it to go as planned. Why we must practise openness and include a plan Keep
everyone on the same page, confirm that your plan is aligned, and boost employee
morale.

Firstly, is Maintain agreement among all parties. Although upper-level management


may have the most influence in defining the fundamentals of a company strategy, the
task of putting it into practise is the responsibility of the whole workforce. Maintaining
open communication throughout the strategic planning process makes sure that

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everyone is aware of their responsibilities at each step and feels involved to the
process.

The second is to confirm that your plan is in line. You can eliminate contradictions
and inconsistencies and guarantee that the strategy is executed without a hitch by
providing everyone in the company with a clear understanding of the plan and their
position in connection to it. A clear plan will guarantee that all the elements are in
sync and that your strategy can be put into action fast and effectively when the time
comes. The smooth implementation of the plan may be facilitated by investing in
business strategy software that promotes collaboration inside your corporation.

Finally, it raises employee morale. Giving employees direct access to the company's
plan and describing their role in the bigger picture never fails to make them feel more
valued. By letting them know how the plan is developing and what measures they
can take to ensure its success, you can hold your team accountable for its success
and demonstrate your faith in them.

in my opinion, an organization should be transparent to become successful


organizations.

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QUESTION 5

Stars, Question Marks, Cash Cows, and Dogs are the names of the four quadrants.
starry region. Stars quadrant comes first. Stars are the companies, divisions, or
products that command the most market share and revenue. Stars are also widely
used to describe monopolies and first-to-market items. Stars, on the other hand, use
up a lot of money due to their rapid growth. As a result, typically speaking, there is
an equal balance of income and expenditure. Stars can ultimately turn into Cash
Cows if they maintain their success until a market's rapid expansion stops. Investing
in stars is a cornerstone of a BCG growth strategy. lingerie, as an illustration. When
there were few options, M&S was recognised as the location to buy women's
underwear. M&S lingerie continues to be the market leader in the UK in a multi-
channel environment, with strong market share growth.

The second quadrant is Cash Cows. A market leader is referred to be a "cash cow" if
its income exceeds its expenses. Cash Cows are companies or goods with a
significant market share but limited growth potential. Cash Cows offer the resources
needed to transform a Question Mark into the market leader, pay dividends to
shareholders, pay for corporate debt servicing, research and development, and
administrative expenditures. To keep productivity at its present level or to passively
"milk" the benefits, businesses are encouraged to invest in cash cows. One
illustration of a Cash Cow is 100-plus. In a developed beverage sector, this product
is offered in 200 different nations. The completed beverages are helped to reach the
market by the bottling partners in various locations. This is how the company
generates a sizeable quantity of income from its final goods. As the business unit is
comparably a solid source of revenue in an established sector, it is advised for a
corporation to maintain a large sales volume.

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Dogs is the third quadrant. Dogs are a unit or product with a small market share and
slow growth rates. They are also referred to as pets occasionally. They usually
achieve financial parity, neither spending nor earning much money. Dogs are
typically seen as cash traps since businesses tie up money in them even though
they seldom generate any revenue. The divestiture of these business divisions is
highly likely. For instance, even when a car line is discontinued, there is still a market
for spare components in the automobile industry. After SAAB stopped operating and
building new vehicles, a huge industry developed that sold SAAB components.

Question Marks quadrant is the last. Though they now hold a small market share,
some business areas offer strong development potential. Although they spend a lot
of money, they yield little in return. A corporation loses money because of question
marks. They might, however, become Stars in a market with significant growth
because of how quickly these business units are expanding. Take food as an
example. The UK now boasts over 400 Simply Food outlets after M&S for years
refused to consider food. M&S Simply Food has a following that shows rapid growth
and a small market share while not being a large supermarket.

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