...White Paper Growing Businesses in Tough Economic Times How a VDR can help steer businesses through the seven stages of the financial lifecycle M E R R I L L D A T A S I T E ® Contents Introduction Funding Planning to grow your business Mergers and acquisitions Seizing international opportunities Post-deal integration Making M&A work Equity Turning businesses into cash Debt financing Getting a cash injection Right-sizing Re-focusing on what you do best Bankruptcy and restructure Restructuring debt 3 4 5 6 7 8 9 10 Growing Businesses in Tough Economic Times Anyone with financial authority over a deal will expect to see a raft of detailed, accurate information about the business in question. Introduction 1 2 3 Striving for growth The ongoing financial crisis has changed the nature of business growth around the world. At one end of the scale, it’s created an unprecedented number of large corporations that are sitting on a healthy pot of funds1. These companies have become cash-rich by being extremely good at what they do – putting them in a powerful position to grow through strategic acquisition, and, thanks to the European sovereign debt crisis, acquisition opportunities are plentiful. Organizations across Europe are divesting their assets, particularly in the financial services sector, where banks and other financial institutions are seeking to remove non-core businesses in order to sharpen their efforts2. Indeed, it’s estimated...
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...Factors Involved in Growing a Business Factors Involved In Growing a Niche Company In creating/starting a business, the biggest fear is, “will my product succeed?” No one has any idea of what the future holds, so there is always a chance for success. Where would the world as we know it be if there was no one willing to take a “risk”? There would not be the advancements in technology that is so necessary in our everyday lives. Those products we have become so dependent on began with the idea of success. With that in mind, I will discuss some of the factors that are involved with creating and growing a niche company. Identify at least three challenges when setting up a business. Explain why they are challenges. One of the first challenges faced when setting up a business is developing a product that you are familiar with. I suggest you acquire some skills, or the hands on experience it would take to successfully run your business. Not having researched the information would make it challenging because it would be hard to sell a product you know nothing about. Marketing would be another challenge you will face in creating a business. There are many obstacles you will face when expanding into your products market. Understanding the target market size would be very beneficial. Find out the need for the product in that market. research and get information on some of your competitors and their pricing. Always figure out ways...
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...Assignment Week 6 Staffing Plan for a Growing Business Student: Aishia Pinkney Staffing Organizations 16 May 2016 Strayer University You are a former certified education administrator who departed your former position to become the owner of a small, in-home day care consisting of you and a part-time assistant where you care for children from age three (3) to age ten (10). Over the course of time, your demographic population has increased due to significant business growth that has resulted in many families relocating to your area. With more businesses projected to move to the area and the building of new housing developments, it is projected that this growth could be long term. You have decided that this is a good opportunity to expand your day care business as you have received many inquiries for childcare. In order to comply with your home state regulations, you will require a larger facility and will need to hire additional staff in order to sustain the larger demand for day care. This staff will consist of five (5) Certified Day Care Professionals, one (1) Registered Nurse Professional, five (5) After-School Assistants and one (1) Office Support Paraprofessional. You have secured approval for a bank loan and qualify for future loans for future expansion if your current endeavor is successful. Meanwhile, the state in which you operate has requested that you provide a staffing plan before it will issue licensure for your expanded capacity. The...
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...Leadership Assessment Assignment 2 BUS 302 Prof. Thornton De’Shonda Lyons 11/23/2014 Question No. 1 Analyze the leadership style (s) of a senior (CEO, CFO, COO, Director, etc) in your current or previous organization who made a positive or negative impact on you. An employee who is effective in working and contributes to the organization success is a leader in his own eyes. Every leader has a different set of style which he used to incorporate the organizational goals and objectives. The implementation of plans, guidance to the people of the organizational and their motivation is few factors that come under the leader responsibility. Leadership styles or approaches a leader take to solve a certain problem changes in different scenarios. The best leadership style depends on the issues the organization face and its culture according to www.edcucationalbusiness.com. A company I worked for their leadership style that entail in my company of the CEO is situational leaning towards participative leadership style. Such a style requires the leader to be adaptable to the situation and to the abilities of the team. The leaders quickly adjust themselves to the constraints and limitations imposed on them. If a situation arises where the CEO has all the information, he will most surely use the authoritarian leadership style as he is the coach and mentor. In a situation where the information is distributed between the CEO and the workers, he will go for a participative...
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...TASK: TERM PAPER. COURSE: BUS: 1010: INTORDUCTION OF BUSINESS ORGANIZATIONS. SEMESTER: SPRING 2015 INSTRUCTOR: NAMADA JULIANA ADM NO: 644067 NAME: BRIAN KIPRUTO CHELIMO Table of Contents Abstract 3 2.0 Forms of Entrepreneurship 4 1.0 Introduction 4 1CREATION OF EMPLOYMENT 4 2Poverty reduction 5 3Socio-economic and political solutions 6 4Economic growth and Development 7 2.1 Entrepreneurial Effects in the Growth of Economy 8 Conclusion 9 REFERENCES 10 Abstract According to Chell & Ozkan, (2010), an entrepreneur is someone who is willing to bear the riskofa businessventure where there is a significant chance for making profit. Entrepreneurship is basically the practice of starting a business in order to earn profit on new found opportunities. Entrepreneurship is a challenging task as many businesses which start fail to take off. Entrepreneurship has many uncertainties especially when new products are created for which there is no existing market.Entrepreneurship affects economic growth in various ways. It is through entrepreneurship thatimportant innovations enter the market leading to new products or production process whicheventually increases efficiency through bringing competition in the market. This paper discourses the impact of entrepreneurship on economies. Ideas and concepts that...
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.................................................. 4 Alternative Solutions…...................................................................................................... 6 Recommendations and Implementation Plan .................................................................... 8 Contingency …………………………………………………………………………….. 10 Executive Summary Growing City is in the midst of expanding their organic recycling business in Canada. The major issues they face is related to the complexity of their external environment. In relation to the industry size, low barriers to entry, and political regulation. In recent years there has been social and political trends are pulled towards environmental campaigns Growing City is one of many companies that will see the potential profit in this industry. Growing City needs to choose a strategy that allows them to differentiate their services from existing and potential competitors, but most importantly they must be the first to capture the market share. They also must increase efficiency in the operations of the business to keep costs low. The best course of action for Growing City is to develop a presentation geared towards municipalities that have already or are in the process of developing waste management strategies, as well as encouraging others to put one in place. They should target municipalities in the provinces of Ontario, British Columbia, Alberta and Quebec first. This is due to the attractiveness...
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...For Growths Sake Running Head: FOR GROWTH’S SAKE For Growth’s Sake Timothy Halstead Capella University For Growth’s Sake Quotes such as “new and improved”, “super-size me”, “bigger and better” are ones that we have heard over and over regarding various consumer products. Similar things can be heard when looking at companies. A big trend currently in business is business growth. Many people in business rate the success of their business purely by how large and quickly they are growing. However, in business planning it is often too easy to overlook some of the dangers of growing a business. In order to have successful business growth, the business must have a plan. Part of that plan is to understand some of the problems that come with business growth and ensure they are not simply growing for growth’s sake. Bigger does not necessarily mean better, nor does growing bigger mean that the business is protected from the same problems (or perhaps more) that smaller companies deal with. CNBC has listed 10 mega companies that are no longer active companies (American’s Iconic Companies that Disappeared, 2015). Amoco was swallowed up by BP. Bethlehem Steel, the world’s second largest steel manufacturer, went bankrupt in 2001. Circuit City went bust in 2009. Compaq Computers was the largest supplier of PC systems in the US in the 90’s but no longer exists. Leeman Brothers with $600 billion in assets had the largest...
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...saying, “At Dr. Pepper Snapple Group, it is our vision to be the best beverage business in the Americas. Our brands have been synonymous with refreshment, fun and flavor for generations, and our sales are poised to keep growing in the future.” This stamen is straightforward and informatively average. It establishes the company’s goal and core values. Also, it highlights DPS’ interest in future sales growth. The company includes its business strategy stating that it focuses on building and enhancing leading brands, pursuing profitable channels, packages and categories, leveraging an integrated business model, strengthening routes to markets, and improving operating efficiency (Dr. Pepper Snapple Group). External Analysis Government policies and regulations affect business development and growth. Products have to be consistent with the USDA’s dietary guidelines and adhere to the FDA’s standards for health claims. Due to the current post-recession economy, growth is expected to be slow since existing demand patterns are expected to change as consumers become more health conscious. Moreover, global awareness and concern regarding the impact of climate change continues to be a focal point as business seek to achieve better business in terms of reduced cost and risk while achieving positive impact on the world around them. Also, an important trend in the macro environment is globalization. With the growing use of electronic technological innovations, global communication is rapidly...
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...Why organic growth? 1 Preparing for organic growth 2 3 How organic grow 3 The models included 3 4 Growing pains in organic. 6 5 Transition in organic growth 7 6 Conclusion 8 7 References 9 What is organic growth? In growing process for entrepreneurial business, internal (organic) growth is one of the most important steps for a firm to sustain the growing process. Through the definition and research from Barringer and Ireland (2010), most of the entrepreneurial business use organic grow as their first main growth strategy, when it doesn’t rely on outside intervention. The rate of entrepreneur failure was also mentioned by Scott Shane (2008) that only 50% of the entrepreneur business still alive after the first 5 years. Thus focusing into internal growth would be a strong strategy not only for standing in the competitive market but also is a sustain way of growing for a company in the first step. Why organic growth? In entrepreneur business, the theories from Schumpeter (1962) about the competitive process of capitalism which was not created by timid elements of reducing price but the innovation and creative from inside the firm itself generated overall economic growth and development, have been attracting the attention from even modern economists. Also based on Schumpeter (1962) as the changes are the key factors for growing. A newly start-ups company are more dynamic and making changes rather than the old one, it makes the competitive...
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...material under review interesting because they touched upon certain aspects of growing a business that we have already begun to discuss in class as well as emphasized how much each business has to be individual in their approach to growing a sustainable business. In the article by Professor Frank Hoy, very important points on starting and growing a business are introduced to the reader. The corridor principle, which was discussed in class and elaborated on in this article, suggests that the only way to progress with a business idea is to actualize it by starting the business. This principle resonates with me because it suggests that planning only goes some way to inform you about the potential of your idea but until you really start to work on the idea you will never know how feasible your idea is and whether the direction you had for your business is a valid one or not. Most importantly, the article’s emphasis on the need for creativity in obtaining funds for a business opportunity applies to growing and managing new ventures as it shows how important the recognition of the right funding avenues is to managing and realizing your business opportunity. This part of the article to me explains the importance of the investor’s PowerPoint document. As mentioned in class, acquisition of investors is an important aspect of growing and managing new ventures since they provide a lifeline for your business to strive on. The PowerPoint presentation, which focuses on the elevator pitch...
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...FINANCIAL SYSTEMS FU TURE CHALLENGES IN GROWING COMPLEX E NVIRONMENT DISSERTATION Roszak Sabrina Msc BC & IS Management 1 MSC IS&BCFinancial SYSTEMS FUTURE Challenges in growing complex environment DISS Acknowledgements It is not an easy task going back to school after seven years of work experience. And it is much harder going back to school being a young mum. For this reason, my deepest gratitude goes to my family who has always supported me and helped me in this initiative. Especially, I would like to thank my parents who always believed in me, my husband who encourages me and over all, my son, whose love gave me all necessary energy and strength. I would also like take the opportunity to thank all the teachers from the MSc, especially Ms. Hirzmann who encourages me in my professional choices and future carrier and my professor Mr. Parmantier who helped me complete this dissertation. F inally, I would like to express my gratitude to Mrs. Jalabert, SBM MONACO Finance Director for her time spent answering my questionnaire. 2 MSC IS&BCFinancial SYSTEMS FUTURE Challenges in growing complex environment DISS Glossary BI: Business Intelligence BSC: Balanced Scorecard CFO: Chief Financial Officer CPI: Cost Performance Indicator CPM: Corporate Performance Management CR: Corporate Reporting CRM: Customer Relationship Management EPM: Enterprise Performance Management ERP: Enterprise Resource Planning FASB: Financial...
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...All successful small business startups eventually face the issue of handling business expansion or growth. Business expansion is a stage of a company's life that is fraught with both opportunities and perils. On the one hand, business growth often carries with it a corresponding increase in financial fortunes for owners and employees alike. In addition, expansion is usually seen as a validation of the entrepreneur's initial business startup idea, and of his or her subsequent efforts to bring that vision to fruition. But as Andrew J. Sherman observed in The Complete Guide to Running and Growing Your Business, business expansion also presents the small business owner with myriad issues that have to be addressed: "Growth causes a variety of changes, all of which present different managerial, legal, and financial challenges. Growth means that new employees will be hired who will be looking to the top management of the company for leadership. Growth means that the company's management will become less and less centralized, and this may raise the levels of internal politics, protectionism, and dissension over what goals and projects the company should pursue. Growth means that market share will expand, calling for new strategies for dealing with larger competitors. Growth also means that additional capital will be required, creating new responsibilities to shareholders, investors, and institutional lenders. Thus, growth brings with it a variety of changes in the company's structure...
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...Sara Lee retrenched seven of its business units in 2006 in order to focus its resources on its more profitable industries. The company’s goal is to boost its sales lines by at least 2 percent and increase its profit margin to 12% by 2010. By developing three competitive capabilities in each of its remaining business units, Sara Lee looks to improve its net profits within the next few years. Sara Lee, a 58-year-old company that was known as Consolidated Foods Corp. before it adopted its current name in 1985, operates in four industries: packaged meats and bakery items, coffee and grocery goods, household and body-care products and personal products. Its other familiar brands include Hanes, L'eggs and Sheer Energy hosiery; Playtex bras; Kiwi shoe polish; Brylcreem hair products; Jimmy Dean and Hilshire Farm packaged meats; and Champion apparel (Peltz 1). Divested Businesses Analysis Sara Lee divested seven of its units, including: direct sales, U.S. retail coffee, European apparel, European snacks, and U.S. and European meats. The company followed a strategy which allowed it to increase its corporate profits, since most of its business units it retrenched were unprofitable. By 2006, five business units had negative net profit margins and negative operating margins. Four of those units had negative margins of more than 10%, with different units seeing steady or sharp declines in revenues in profits since 2004. Contrary to what has become understood from how the past has evolved...
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...After over 40 years of being in business Six Flags had to start closing down and selling numerous of its locations. Six Flags had a growing debt that had to be dealt with. In the coming years they faced natural disasters, economic crisis and new management which lead to declining attendance rates and cash flow issues. The company’s cash flow decrease by over 120 million dollars annually, its stock value had fallen below the required minimum, they were unable to pay its preferred stockholders and was delisted from the New York Stock exchange in April of 2009. In June of 2009 they filed for Chapter 11 bankruptcy. Daryll Domingo MGT 339 7/16/16 EC 1 After over 40 years of being in business Six Flags had to start closing down and selling numerous of its locations. Six Flags had a growing debt that had to be dealt with. In the coming years they faced natural disasters, economic crisis and new management which lead to declining attendance rates and cash flow issues. The company’s cash flow decrease by over 120 million dollars annually, its stock value had fallen below the required minimum, they were unable to pay its preferred stockholders and was delisted from the New York Stock exchange in April of 2009. In June of 2009 they filed for Chapter 11 bankruptcy. Daryll Domingo MGT 339 7/16/16 EC 1 After over 40 years of being in business Six Flags had to start closing down and selling numerous of its locations. Six Flags had a growing debt that had to be dealt with....
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...an ISO 9001:2008 certified international company with locations across Canada, the Middle East, Africa, and the Caspian region (FourQuest, Canada’s Fastest-Growning Company, 2015). FQE was ranked Canada’s number 1 fastest growing company on the Profit 500 2014 list showing a revenue growth of 7,308% (ProfitGuide, profit500, 2015). The Edmonton Alberta organization which first began operation in 2008 is a very strong player in helping to keep the energy giants working. FQE employs more than 200 people fulltime, runs 12 offices worldwide and posts upwards of $50 million in annual sales (ProfitGuide, Canada’s Fastest-Growing Company, 2015). Entrepreneurs Karl Gannon and Nik Grgic started FourQuest Energy after their suggestions for improvements were not implemented in the organization they worked for. They felt that they could do a better job with the right opportunities (ProfitGuide, Canada’s Fastest-Growing Company, 2015). Together they have been able to attract other top talent to their organization to help further grow the organization. Their management style has won them the 16th spot on the 2013 Best Managed Companies list. Their ultimate goal is to turn the organization into a $500 Million organization within 10 years (ProfitGuide, Canada’s Fastest-Growing Company, 2015). Gannon believes that quality customer service, as well as strong customer satisfaction are the two most important things FQE can do, and has allowed FQE to build relationships with their clients where they...
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