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- QUESTION
Market impact on the company, the idea is that the report shows the biggest impacts the market have on TPT so the recommendations of how to support beneficiaries take this into account
Use the link below for company details
| Subject | Business | Pages | 4 | Style | APA |
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Answer
Market Impact Report and Recommendations, 2019
Recommendations:
- Break down risk impact to beneficiaries, management plan, and contingency: Break down the Financial Report and Accounts for beneficiaries to understand the risk management plan. Emphasis should be on how the Trust manages fluctuations in investment and property portfolios, contingency plans with regard to potential disruptions from Brexit, liquidity ratio with regard to present long-term debt obligations, current ratio for short term debt obligations.
- Explain the shift from “understanding needs” to actually “meeting needs”: Communicate that the Trust’s long-term plan for the future has been to shift from the “forming partnerships" mantra of the 2000s to actual improvement of lives by injecting more resources into direct beneficiaries’ projects under the meeting needs policy framework. Consequently, escalation of the Trust’s core programs under the core mandate should be communicated to beneficiaries as follows:
- The primary beneficiaries should be made to understand why the Trust supported an additional 9 organizations, and the potential benefits associated with growth in return rate from 4.25% to 5%. Explain that growth in return rate means the Trust is investing more funds into programs that meet needs directly. The future impact on funding and support following the addition of the under 16s to the primary beneficiary list should also be communicated.
- On the other hand, contingency beneficiaries, mostly, partner organizations, charities, research institutions, and volunteers should understand why for instance, number of research projects were whittled down to 7 in 2019, from 11 the previous year. Volunteers should know underlying reasons why their numbers were reduced to 246 in 2019. Each partner organization should understand fluctuations in grant support from TPT in light of the increased number of supported organizations from 16 in 2018 to 27 in 2019.
- Communicate the impact of financial performance for the year ended March 31, 2019 effectively. Assure beneficiaries that increased spending for 2019, at £6,455k from £5,860k the previous year was intentional. Explain that the £144k income deficit was a direct attribution of this increase and are within acceptable limits.
Porter’s Five Forces Model For Thomas Pocklington Trust
Threat of new entrants
Government registration requirements for new entrants remain lax, and only require an entity to be UK taxable. Whereas this may not hinder new entrants, Thomas Pocklington Trust has consolidated its position in the market and is currently in the 8th phase of its growth cycle: “improving people’s lives”. Inferentially, PTK growth trajectory from conception to “setting up” phase of the 1950s, building boom of the 1960s, Expansion in the 1970s, and consolidation of the 1980s may prove difficult for new entrants to replicate. Besides, recent years saw a widening of scope beyond housing provision in the 1990s, to partnerships in the 2000s, and now they are in the “improving people’s lives” phase. New entrants may not have the time and resources to undo 70+ years of TPT consolidation.
Bargaining power of buyers
The Trustees annual report for the year ended March 31, 2019, reveals a reduction of research grant funding to partners from £204k in 2018 to £91k in 2019, reduction of number of volunteers, and an increase in number of organizations in its support list. TPT’s bullish approach to partners and volunteers underlines the weakened position of buyers.
Bargaining Power of Suppliers
TPK’s current total funds, consisting of permanent endowment, restricted funds, and unrestricted funds stands at £167,773k and its prospective returns from capital appreciation means that it will be less dependent on grant funding in future. The Trust’s Total Return on Investment (RoI) approach will release more funds for charitable activities in future, reducing the power of grant support suppliers.
Threat of substitute products or services
TPT’s unique niche as main provider of housing to the visually impaired reduces its susceptibility to substitute services. TPT dominance is thus entrenched as no other organization has a more elaborate scale of operation than it.
Rivalry among existing competitors
The financial report shows a growing number of partners in need of grant support from TPT. From the marketing perspective, the high concentration ratio among TPT’s 31 major partners, essentially infers fierce competition at that level, which gives an optimist outlook for the Trust’s future.
References
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Appendix
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