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Prerna Shivach SM A3 (2201920700250) ' With You
Prerna Shivach SM A3 (2201920700250) ' With You
Semester Assignment
A3: Write up submission— Internal Assessment CO2 (10 marks)
a. Give your financial ratio analysis. Highlight especially good and bad ratios. Do not give
definitions of the ratios and do not highlight all the ratios?
PROFITABILITY RATIOS
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Strategic Management (KMBN301)
LIQUIDITY RATIOS
Dividend Payout Ratio (NP) (%) 62.23 79.46 36.92 66.81 0.00
Dividend Payout Ratio (CP) (%) 58.53 71.12 33.81 61.69 0.00
Cash Earnings Retention Ratio (%) 41.47 28.88 66.19 38.31 0.00
VALUATION RATIOS
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b. Show the firm’s organizational chart found or “created based on executive titles.” Identify the
type of chart as well as good and bad aspects?
Managing Directors
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Managing Directors
Collapse
CK
Charu Khosla
COO, Strategic Markets, Governments & Institutions
0
AS
Amit Sudhakar
CFO
0
GA
Gautam Aggarwal
CHRO
0
AA
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Ajit Alexander
Chief Growth Officer
0
JS
Jitendra Sahu
COO, Visa & Consular Business
0
EB
Ekta Bhaskhar
Global Head, Corporate Communications
0
KA
Karan Aggarwal
Executive Director
0
GA
Gaurav Aggarwal
Director
0
DM
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Dharak A. Mehta
Company Secretary & Compliance Officer
0
Teams
Leadership Team
9 members
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Board of Directors
5 members
Good Aspects:
Bad Aspects:
For a more detailed and dynamic representation, you might consider other types of
charts, such as a matrix structure or a network diagram, depending on the complexity
and nature of your organization.
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c. Present your improved/recommended organizational chart. Tell why you feel it is improved over
the existing chart?
In a matrix structure, individuals report to more than one manager, reflecting the cross-
functional and collaborative nature of the organization. This structure allows for better
representation of how different teams and departments work together. Here's a simplified
text representation:
```
CEO
|
-----------------------------------
| | | |
CK (COO) AS (CFO) GA (CHRO) AA (CGO)
| |
EB DA (Company Secretary)
| |
KA (Executive Director)
|
GA (Director)
|
JS (COO, Visa & Consular Business)
```
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2. Clear Reporting Lines: The matrix structure maintains a clear reporting line to the CEO
while allowing for flexibility in reporting to functional heads, emphasizing both hierarchy and
lateral relationships.
3. Captures Functional Roles: This structure allows for the inclusion of each executive's
primary role and function, providing a more comprehensive view of their responsibilities.
4. Enhanced Understanding of Roles: By indicating the specific roles of each executive (e.g.,
COO, CFO, CHRO), the chart provides a clearer understanding of the diverse skill sets within
the leadership team.
5. Dynamic and Adaptable: The matrix structure is more adaptable to changes in the
organization, reflecting the dynamic nature of modern businesses.
While the hierarchical chart is suitable for illustrating reporting lines, the matrix structure
offers a more nuanced view of how individuals collaborate across functions, providing a
better representation of the company's operational dynamics.
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d. Show a market positioning map with firm and competitors. Discuss the map in light of strategies
you envision for firm versus competitors’ strategies?
Let's consider two dimensions that are often used in market positioning: "Innovation" and
"Global Reach."
```
High
|
| BLS International
| (Innovation, Global Reach)
|
|
| FGP Ltd.
| (Competitor 1)
| (Moderate Innovation, Local Reach)
|
| Jayatma Enterprises Ltd.
| (Competitor 2)
| (Low Innovation, Local Reach)
|
-----------------------------------------------> Low
Innovation
```
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Discussion:
1. BLS International:
- Strategy: BLS International positions itself as a leader in innovation with a global reach, as
indicated by its emphasis on "relentless innovation and cutting-edge technology" and a
vision to "empower and enrich the lives of a billion people worldwide."
- Competitive Advantage: BLS International's focus on global impact and innovation gives it a
competitive edge, especially in the tech-enabled specialty services sector.
- Strategy: Jayatma Enterprises is positioned with low innovation and a local reach, indicating
a more traditional and localized approach.
- Competitive Positioning: Jayatma Enterprises might face challenges in innovation and
global expansion compared to both BLS International and FGP Ltd.
Strategic Implications:
- BLS International: Should continue to leverage its global reach and focus on innovation to
maintain its leadership position. Consider partnerships or acquisitions to strengthen global
presence further.
- FGP Ltd.: May explore opportunities to enhance innovation and consider expanding its
reach globally to compete more effectively with BLS International.
- Jayatma Enterprises Ltd.: Should consider investing in innovation and exploring ways to
expand its market reach, especially if there's a desire to compete on a larger scale.
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e. Identify the marketing strategy of the firm in terms of good and bad points versus competitors
and in light of strategies you envision for the firm?
Good Points:
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- Opportunity: BLS International could improve its marketing by clearly communicating the
unique value proposition it offers to clients. Explicitly highlighting the benefits of its global
reach, innovation, and diverse services can enhance its attractiveness.
Envisioned Strategies:
1. Strategic Alliances and Partnerships:
3. Client-Centric Marketing:
- Recommendation: Develop marketing campaigns that emphasize the client-centric
approach, showcasing how BLS International's services simplify and improve the application
and processing experience for end-users.
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f. Show a map locating the firm’s operations. Discuss in light of strategies you envision. Also,
perhaps show a Value Chain Analysis chart?
1. Global Presence: Given BLS International's global reach, its operations are likely spread
across multiple continents and regions. Key hubs may include major cities in Asia, Africa,
Europe, South America, North America, and the Middle East.
2. Strategic Locations: The firm may strategically position its operations in countries where it
has a significant client base or where it can efficiently serve multiple governments and
diplomatic missions.
- Strategic Global Expansion: The location of operations should align with the firm's strategy
of global expansion. Investing in regions with growing demand for visa and consular services
can enhance the company's market presence.
- Efficiency and Accessibility: Locating operations in key cities with high diplomatic activity
ensures proximity to clients and efficient service delivery. This aligns with the company's
mission of providing accessible and seamless solutions worldwide.
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A Value Chain Analysis can help identify the firm's primary and support activities that
contribute to its competitive advantage.
1. Primary Activities:
2. Support Activities:
- Technology Development: Continuous innovation in e-governance, biometric solutions, and
digital services.
- Procurement: Sourcing partnerships for secure document transportation and other
logistics.
- Human Resource Management: Managing a skilled workforce for effective service delivery.
- Firm Infrastructure: Maintaining a global network of offices and digital infrastructure.
- Innovation Focus: The technology development aspect of the value chain aligns with the
company's emphasis on relentless innovation. Continuous improvement in digital services is
crucial for maintaining a competitive edge.
- Global Procurement Strategy: Given the global nature of its services, BLS International may
benefit from a strategic procurement approach to ensure secure and efficient logistics
worldwide.
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g. Show and discuss the firm’s Web site and e-commerce efforts/abilities in terms of good and bad
points?
Let's discuss the BLS International website and its e-commerce efforts/abilities:
Good Points:
1. Clear Navigation:
- Good: The website appears to have clear navigation, making it easy for users to find specific
sections such as About Us, Services, Competencies, and more.
2. Multilingual Support:
- Good: The option to select a language demonstrates an effort to cater to a diverse
audience. This is particularly important for a company that provides global services.
3. Comprehensive Information:
- Good: The website offers comprehensive information about the company, including its
vision, mission, values, leadership team, awards, and services. This transparency is essential
for building trust with potential clients and investors.
4. Responsive Design:
- Good: The mention of selecting a country/region suggests a responsive design that adapts
to the user's location, providing relevant information based on their geographical location.
5. E-commerce Integration:
- Assumed Good: While the information provided does not explicitly mention e-commerce
efforts, the inclusion of services like "Visa Processing Services" and "E-Visas" suggests a
potential for e-commerce integration, which is beneficial for user convenience.
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Strategic Management (KMBN301)
2. Call-to-Action (CTA):
- Opportunity: It would be beneficial to have clear and compelling CTAs throughout the
website, prompting visitors to take specific actions such as applying for services, subscribing
to newsletters, or connecting on social media.
3. Social Proof:
- Opportunity: Incorporating client testimonials or case studies in the "Testimonials" section
can add social proof, building credibility and trust among potential clients.
4. E-commerce Transparency:
5. Visual Appeal:
- Subjective: Without the ability to see the visual elements, it's challenging to assess the
website's overall design. However, a visually appealing and modern design can enhance the
user experience.
Discussion:
- User-Centric Approach:
- The website appears to be focused on providing users with comprehensive information
about the company and its services. A user-centric approach is crucial for engaging visitors
and encouraging them to explore further.
- Global Reach:
- The multilingual support and the ability to select a country/region reflect an understanding
of the company's global audience. This aligns well with the firm's vision of touching the lives
of a billion people globally.
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In conclusion, while the BLS International website demonstrates several positive aspects,
there are opportunities for optimization, particularly in terms of mobile responsiveness, user
engagement, and e-commerce transparency. Regular updates and improvements can ensure
that the website remains aligned with the company's vision and mission.
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To conduct a "value of the firm" analysis based on the provided information, we can look at
various financial and market indicators for BLS International Services Ltd.:
Financial Performance:
1. Stock Performance:
- Positive: The stock has shown positive momentum, with a 2.29% increase on the given
date. It is also 4.50% away from its 52-week high, indicating relative strength.
2. Revenue Growth:
- Positive: The company has shown growth in net sales, as mentioned in the news section.
This indicates positive performance and business expansion.
3. Profitability:
- Positive: The company has reported a consolidated net profit of Rs. 204 crore in the latest
available financials, showcasing profitability.
5. Valuation Metrics:
- Mixed: The P/E ratio is high at 47.67, indicating a relatively higher valuation. Similarly, the
P/B ratio is 11.14, suggesting a premium in the market.
Market Position:
1. Market Capitalization:
- Positive: The market capitalization of Rs. 12,757 crore indicates a sizable presence in the
market.
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2. Analyst Recommendations:
- Positive: The analyst rating is generally positive, with a "Buy" recommendation based on
available data.
Investor Sentiment:
1. Shareholding Pattern:
- Mixed: While promoters have decreased holdings slightly, mutual funds have increased
their holdings. FII/FPI holdings have decreased.
2. Insider Transactions:
- Neutral: Insider transactions, as provided, do not show any alarming trends.
Technical Analysis:
1. Technical Rating:
- Neutral: The technical rating suggests a neutral trend, which means the stock is not
showing clear bullish or bearish signals.
Overall Analysis:
Considering the positive stock performance, revenue growth, and profitability, BLS
International Services Ltd. appears to be in a relatively strong position. However, the high
valuation metrics and mixed investor sentiment suggest that investors should carefully
assess the risk-reward scenario.
Potential Areas for Further Investigation:
1. Debt Levels: Assess the company's debt levels and its ability to manage debt efficiently.
2. Market Positioning: Understand how BLS International compares to its competitors in
terms of market share and positioning.
3. Future Growth Plans: Look for information on the company's future growth plans and
strategies. Investors should conduct a more in-depth analysis and consider future market
trends to make informed investment decisions.
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Strengths:
2. Experience and Expertise: With over 18 years of experience, the company has developed
expertise in handling visa, passport, consular, and other government-related services.
3. Large Workforce: The company boasts a workforce of over 60,000 employees and
associates, contributing to its extensive service network.
4. Diverse Service Offerings: BLS provides a range of services, including visa processing,
passport services, consular services, e-governance, attestation, biometric services, e-visa,
and retail services.
6. ISO Certifications: The company holds various ISO certifications, including ISO 9001:2015,
ISO 27001:2013, ISO 14001:2015, ISO 45001:2018, indicating commitment to quality,
information security, environmental management, and occupational health and safety.
7. Recognitions and Awards: BLS International has received accolades such as being
recognized as the "Best under a Billion Company" by Forbes Asia and featuring among
Fortune India's Next 500 companies.
8. Listed on NSE and BSE: Being publicly listed on the National Stock Exchange (NSE) and the
Bombay Stock Exchange (BSE) adds credibility and transparency.
9. Customer Orientation: The company values customer orientation as one of its core values,
emphasizing a focus on delivering customer-centric solutions.
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10. Strategic Partnerships: BLS is a preferred partner for embassies and governments
globally, indicating strong relationships and trust in its services.
11. Social Responsibility: Holding ISO 26000:2010 certification for Social Responsibility
reflects the company's commitment to ethical and socially responsible business practices.
Weaknesses:
1. High Valuation Metrics: The company's high P/E ratio (47.67) and P/B ratio (11.14) may be
perceived as a weakness, suggesting a potentially higher valuation.
3. Market Competition: Being among the top three global players implies intense
competition, and the company must continuously innovate to maintain its market position.
6. Potential Security Risks: Dealing with sensitive information and biometric data poses
security risks, and any data breaches could harm the company's reputation.
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8. Operational Challenges: Managing a vast network of over 50,000 centers globally may
pose operational challenges, including logistics and coordination.
10. Geopolitical Risks: Political instability in regions where BLS operates can impact its
operations and pose challenges in maintaining a consistent service quality.
11. Public Perception: Negative events, such as service disruptions or controversies, could
impact public perception and trust in the company's services.
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Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluate firm’s internal environment
and to reveal its strengths as well as weaknesses. The internal and external factor evaluation
matrices have been introduced by Fred R. David in his book Strategic Management[1]. According
to the author, both tools are used to summarize the information gained from company’s external and
internal environment analyses.
Strengths and weaknesses are used as the key internal factors in the evaluation. When looking for
the strengths, ask what do you do better or have more valuable than your competitors have? In case
of the weaknesses, ask which areas of your company you could improve and at least catch up with
your competitors? The general rule is to identify as many key internal factors as possible.
Weights
Each key factor should be assigned a weight ranging from 0.0 (low importance) to 1.0 (high
importance). The number indicates how important the factor is if a company wants to succeed in an
industry. If there were no weights assigned, all the factors would be equally important, which is an
impossible scenario in the real world. The sum of all the weights must equal 1.0. Separate factors
should not be given too much emphasis (assigning a weight of 0.30 or more) because the success in
an industry is rarely determined by one or few factors.
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Ratings
The ratings in internal matrix refer to how strong or weak each factor is in a firm. The numbers range
from 4 to 1, where 4 means a major strength, 3 – minor strength, 2 – minor weakness and 1 – major
weakness. Strengths can only receive ratings 3 & 4, weaknesses – 2 and 1. The process of assigning
ratings in IFE matrix can be done easier using benchmarking tool.
Score
The score is the result of weight multiplied by rating. Each key factor must receive a score. Total
weighted score is simply the sum of all individual weighted scores. The firm can receive the same
total score from 1 to 4 in both matrices. The total score of 2.5 is an average score. In internal
evaluation a low score indicates that the company is weak against its competitors.
IFE and EFE analyses have little value on their own. You should do both analyses and combine their
results to discuss new strategies or for further analysis. They are especially useful when building
advanced SWOT analysis, SWOT matrix for strategies or IE matrix.
Internal Factor Evaluation (IFE) Matrix for BLS International Pvt Ltd:
|--------------------------------------------|------------|------------|----------------|
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```
- Weights (W): The relative importance of each factor to the success of the
company. The sum of all weights should equal 1.0.
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- Weighted Score: Obtained by multiplying the weight of each factor by its rating.
- Total Weighted Score: The sum of all weighted scores, representing the overall
effectiveness of the company's internal factors.
Interpretation:
The total weighted score of 4.73 suggests that, according to the internal factors
considered, BLS International Pvt Ltd has an overall strong internal position. The
company's global presence, experience, diverse service offerings, and technology
integration are identified as major strengths. However, areas like high valuation
metrics, dependence on government contracts, and economic sensitivity are
recognized as potential weaknesses that may require strategic attention. This IFE
matrix provides a snapshot for strategic decision-makers to focus on key internal
areas for improvement and leverage existing strengths
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