Further Market Consolidation And M&A Activities By Local Players (Coursework Sample)
WHAT WOULD BE YOUR ADVICE TO SEE BEYOND MANAGEMENT IN THE CASE OF:
FURTHER MARKET CONSOLIDATION AND M&A ACTIVITIES BY LOCAL PLAYERS
BANKING AND/OR INSURANCE MARKET FURTHER DECLINE OR STAGNATION
PRICE WAR IN THE “OPERATIONS” SEGMENT
The 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 firm's 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 reduce 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.
The 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 company 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, the 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 an
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