You have recently graduated college and have been hired by a global company to analyze the current business climate and operations company-wide.
Describe what attributes you need to consider in selecting the company for your capstone project.
For your first discussion, you must choose a global company with operations in at least 3 countries. (Your instructor will let you know through this discussion if your company is a viable option.)
II. Assignment Details
Your direct manager has asked you to explain why the cost of debt is different from the cost of equity and to differentiate between the real risk-free rate and the nominal risk-free rate of interest.
Describe which interest rate is used to assign value to an asset.
III. Assignment Details
Your direct manager was extremely impressed in your proficiency with the financials and sent your work over to the marketing department. Before the marketing department will release its data, the marketing manager would like you to answer a question about market growth strategies. Market growth is accomplished by one or more of the following strategies:
• Market penetration: Increasing market share
• Market development: New markets
• Product development: New products or services
• Diversification: Promoting new or expanding existing products to reach a new market
Remember that the diversification strategy requires additional funds and that the other three strategies use existing budgets.
Out of the four strategies, choose a strategy that best suits growth in your company, and justify how you would use this strategy.
IV. Assignment Details
The marketing manager discussed your marketing analysis and strategy with the operations management team. The team has determined that you are the ideal person for this next phase of the business plan evaluation.
The success of a project requires attention to resource planning. As you advance in the company, it is time for you to show expertise involving project budgets and schedules to ensure that the proper attention is given to resource planning.
Explain the order in which leveling, scheduling, and budgeting should be in relation to the scheduling needs of the project. Provide details about what scheduling will do vis-à-vis setting up the leveling aspect for success. Likewise, discuss how leveling leads to the last aspect: budgeting.
V. Assignment Details
Leadership from all company departments would like you to answer one more question concerning your outlook on the company. Your answer to this question will determine whether you will be considered for a new management position that is available in the company. Leadership explains that there are numerous issues with the proposed new position; one issue has to do with leadership style.
The previous manager used a transactional leadership approach, which has been relatively ineffective with employees. Choose a leadership style (e.g., democratic, autocratic, laissez-faire, strategic, transformational, coach, or bureaucratic). Describe why you would take it with the management position and explain why you chose it.
Business Capstone Discussion
Dun and Bradstreet (D&B) Hoovers is one of the multinational corporations with operations in more than three geographic zones. The multinational firm focuses on being a strong corporate citizen by engaging and earning the trust of its stakeholders. The focus is to contribute towards its prosperous society creation for all its business operations. D&B Hoovers offers a sales acceleration solution to provide a faster path from the prospect with an aim of engaging in a profitable association by leveraging analytics and data (Dun & Bradsheet, 2020). To analyze the case of D&B Company, several attributes of the firm will be considered. For instance, the international expansion strategy implemented by the business to ensure the sale of its products in different geographic zones. The strategies implemented by the business to handle instances of cultural diversity in the workplace to ensure that it remains successful is also an attribute to be considered. Evidently, cultural diversity is one of the critical factors which global businesses should consider to remain successful in the market. Failure to handle cultural diversity in the workplace will give rise to potential challenges that can affect the performance of the business such as conflict among the workforce members (Reeves, 2017).
Other factors such as the strategies of competition implemented by the business will also be explored. Evidently, competing on a global scale is a challenging factor as the business will have to stand against strong competitors who are well established on the international market. Considering the products offered by D&B Hoovers is fundamental towards identification of the business. Notably, the product will determine the market entry strategies implemented by the business. It is a fact that D&B Hoovers not only offer data but also delivers what the team need to know with a fundamental aim of accelerating the growth of the business as well as its performance. Having knowledge about the product will also provide guidance about how the business has managed to stay ahead of its competition (Reeves, 2017).
The cost of debt and the cost of equity vary. The cost of debt capital provides a reflection of an obligation while that of equity capital signifies ownership. Notably, the cost of equity always surpasses the set costs of debt. The risk attached to shareholders is considered greater than that provided to the lenders based on the fact that the payment on a debt is a mandatory legal obligation without considering the profit margins set forth by the company (Md Borhan & Thi Hong, 2020). Additionally, it is a fact that the equity capital is placed on the stockholder equity section of the firm’s balance sheet. When dealing with a sole proprietorship business, the equity capital is recorded at the equity section of the owner (Md Borhan & Thi Hong, 2020).
The risk-free rate refers to the rate of return obtained from the most risk-free bond. This can include treasury bills or bonds provided by the central government. On the contrary, the nominal rate interest refers to the interest amount generated in the event whereby one deducts the inflation value to obtain the real interest rate (Konečný & Zinecker, 2017). A real risk-free rate will exist on a riskless security available in the world whereby no inflation is expected. The rate of the real risk free rate can change over time depending on the prevailing economic conditions or the return rates offered by businesses or the ones that borrowers expect to generate a productive asset. The nominal risk free rate provides an insight into the real risk free rate which is inclusive of the expected inflation’s premium. Considering this case, it is expected that the risk free rate should be interest rate on a security that is totally risk free or where no other form of risk prevails.
For the sake of assigning value to an asset, the real risk free interest rate should be utilized. This is based on the fact that it is the rate that the investors expect and hence will be considered as the real rate collected on security having negligible risks (Konečný & Zinecker, 2017).
Market penetration strategy is the most effective approach implemented by D&B Hoovers to improve on its growth. The major focus on market penetration is for the business to increase its market share that further proves to be effective in the enhancement of the firm’s growth in different parts of the globe. According to Buoye et al. (2016), the main intensive growth strategy implemented by D&B is market penetration. This approach has intensively supported the growth of the business to a point that it has attracted more customers and reached even more potential markets. With an aim of fulfilling this strategy to exhibit growth, D&B has focused on providing a broad range of products that is suitable for varied market segments.
Market penetration strategy will be implemented in the case of the firm as a result of the significantly high rate of the competition among the players in the sector. The focus is to ensure that the business obtains more customers as well as an effective market share (Costello, 2017). Through the implementation of this strategy, the firm will focus on the sale of preexisting services or products within its prevailing market. This is aimed at building on market share. To successfully indulge in the market penetration process, the business will allocate its effort towards the improvement of the preexisting products in the market. The wide range of products and its sale will improve on the market share and further drive out the competitors from the market. Additionally, implementing the approach entails adjusting the preexisting product’s price with a focus on enhancing the firm’s market share and driving out competition (Costello, 2017). Moreover, this can also include scaling the presence of the firm within the market to ensure that more consumers within the market are aware of the existence of the firm and its services.
When it comes to the project needs, leveling, budgeting and scheduling should be completed in that order. Working overtime is one of the factors that affect the general health and motivation of the project members. Therefore, to guarantee that the projects are completed without issuing any form of unnecessary force or pressure on the participants to work overtime, the project managers turn to varied resource optimization procedures whereby resource leveling is considered as one of them. Leveling is provided with the first spot because this has the capacity of allocating the resources in a way that it can loosen or compress the project schedule (Wauters et al., 2016).
Budgeting is provided with the second spot. Arguably, estimating the resources required to accomplish every activity in the project is effective to ensure the achievement of the scheduling needs and project goals. Scheduling should be considered at the third stage of the process. At this point, the duration of all the project activities are considered to guarantee that they will be accomplished as planned. Different tools will be considered for the scheduling process such as the use of the expert judgment, parametric estimation or three-point estimation among others.
Resource leveling is critical for success since is a project scheduling approach whereby a task starts and ends. Resource leveling is critical for success because it determines the types of resources required to accomplish a project (Celkevicius et al., 2018). Moreover, the resource leveling is also suitable in promoting success by providing determination of how the project schedule will be managed in the events of resource constraints and limitations. On the contrary, scheduling will contribute towards the success of the project by bringing together the resource leveling technical elements to avoid resource constraints to meet the scheduling needs. Leveling leads to budgeting by assisting the managers in obtaining the maximum use of their resource with a primary focus of minimizing wastes and resolving conflicts related to aspects such as budget overruns when dealing with concurrent projects (Celkevicius et al., 2018).
Democratic form of leadership is the most effective style that I will consider. Democratic leadership approach involves having the manager work closely with the members of the team to ensure that the responsibilities are shared equally as well as the decision-making authority (Evangelides & Karfakis, 2019). This is regarded as an effective leadership style because managers are highly being encouraged to open up their process of decision making for the staff to ensure that they work together to achieve the firm’s long-term goals and objectives. Some of the fundamental aspects of the democratic style of leadership include the fact that a joint decision making process will be considered between the management and the employees. Factors such as a joint goal setting procedure will also be implemented alongside effective listening skills to facilitate a two-way means of communication.
This leadership approach was chosen as a result of several factors. Democratic leadership style is considered as one which will stress on a desirable performance. Evidently, the style of leadership stresses on team participation, involvement and engagement (Evangelides & Karfakis, 2019). When the manager relies on the democratic style of leadership, the performance of each employee will always be identified and acknowledged through the provision of rewards. The outcome of this factor is the improved morale among the staff associated with the democratic style of leadership. This approach was also identified because it is associated with a higher element of innovation and employee productivity. Notably, creative ideas are effective for the general growth of the business. There is elevated level of cooperation among the employees whose managers have relied on the use of the democratic style of leadership (Fiaz et al., 2017). Moreover, the employers who rely on a democratic means of leadership have a tendency to provide a higher level of adaptation and flexibility for their workers through the open means of communication.
Buoye, A., Yuliya, K. L., Kabadayi, S., Nejad, M. G., Keiningham, T. L., Aksoy, L., & Allsopp, J. (2016). Is share of wallet exclusively about making customers happy or having more customers? exploring the relationship between satisfaction and double jeopardy. Journal of Service Management, 27(4), 434-459. doi:http://dx.doi.org/10.1108/JOSM-05-2015-0157
Celkevicius, R., & Russo, R. F. S. M. (2018). An integrated model for allocation and leveling of human resources in IT projects. International Journal of Managing Projects in Business, 11(2), 234-256. doi:http://dx.doi.org/10.1108/IJMPB-09-2016-0074
Costello, K. W. (2017). The Challenges of New Electricity Customer Engagement for Utilities and State Regulators. Energy Law Journal, 38(1), 49-78. Retrieved from https://www.proquest.com/scholarly-journals/challenges-new-electricity-customer-engagement/docview/1926957267/se-2?accountid=45049