HURRY!!!!!! (Accounting and finance related)
2 pages of writing and 1 exhibition. Part of a group project. Please see the instructions very carefully then decide if you can not assure quality work by following the instructions properly then please do not take it then…
2 pages of writing and 1 exhibition.
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Part of a group project.
Please see the instructions very carefully then decide if you can not assure quality work which can at least guarantee 90% then please IGNORE this work…
I am attaching:
3. Group member’s work (you need to go through this document as my part has to be drawn from their part so it is very important to go over their part as well. Their part has almost completed but not entirely and I will update as it becomes available)
PLEASE PLEASE PLEASE if you are not confident enough leave it.
HURRY!!!!!! (Accounting and finance related) 2 pages of writing and 1 exhibition. Part of a group project. Please see the instructions very carefully then decide if you can not assure quality work by
Executive Summary: (not to exceed 1 page) Write the executive summary in the form of a consulting letter but do not write your name at the end. The executive summary is a concise and persuasive summary of the report. It outlines the recommendations that you make as well as the supporting evidence for your recommendations. It must be concise enough to give the reader all the relevant information needed to assess your recommendations, yet comprehensive enough to convince the reader of the thoroughness of your analysis. It should stand on its own. If the executive summary were to become detached from the rest of your report, it should still be able to get your message across to your reader. An executive summary should contain, at minimum, the following: o the strategy that you recommend. o the implications of implementing your strategy, both financial and non-financial. o how you will finance any costs associated with your recommended strategy; and o the expected benefits of your recommended strategy. Generally, more effective executive summaries are written in a persuasive tone that outlines the context for the decision and develops a clear and coherent argument for accepting the recommendations of the writer. Executive summary must be one page. It must not exceed one page. Begin external assessment with a new page. IX. Recommendation and its Implementation (about 0.5 page) Drawn from the previous sections of the report, state your strategy recommendation, followed by an implementation discussion. You should include a brief reiteration of the recommended strategy and a discussion of how it meets the selected criteria. If it has not been explicitly stated before, the recommendation should cover all relevant aspects of strategy, structure, control, resources, culture, etc. as applicable in the case. Never recommend a combination (of two or more alternatives) that was not proposed as a single alternative in the strategic alternatives section and was not evaluated in comparison with the other alternative in the previous section. The implementation discussion will describe how the recommended strategy will be translated or made into reality. Discuss the relevant action steps, their timing, and implementation budget with respect to the issues of structure, process, control, resources and culture. Be sure to address how you will finance any costs/investments associated with your recommended strategy as well as its expected benefits. Please do not suggest that the company should study the issues further and then decide about its strategies. You have been selected as a consulting company to analyze, synthesize, and make recommendations for the company’s strategy for the next five years. Exhibit 11: Add an exhibit on action steps, their timings, and levels of investment to support your implementation discussion. [Implementation Schedule / Action Plan (one-half page, double space, 12 point font); Use bullet form and avoid running text, except 2-3 lines of conclusion. Be sure to show the timeline, actions, and the level of investment for each step for the normal planning horizon of strategies, which is about 5 years.] See the below as an example- Exhibit : Implementation Schedule / Action Plan Strategic Objective 1: Expand payment services ➢ Increase revenue Stream ➢ Key performance Measure: Net Profit ➢ Actions: Developing revenue target, marketing strategy, communication channel, training staffs to be in line with internal operational efficiency ➢ Allocate Resources: HR, Finance Manager, Marketing and Sales personnel ➢ Timeline: Five year period Strategic Objective 2: Focus strategy in new Market in the developing countries ➢ Increase Revenue streams ➢ KPI: Net profit, Revenue growth rate ➢ Action: Developing revenue target, marketing strategy, communication and team interaction, and training staff. ➢ Allocate Resources: HR, Finance Manager, Marketing and Sales personnel ➢ Timeline: Five year period The two strategies will be implemented as project an each project will be allocated a projects managers and team of staffs that will be responsible for developing plans, executing the plans and evaluating the plans to gauge whether the sale expectation are met. Each plan has Time Horizon of five year period. X. Limitations and Critique of Recommendation (about 0.5 page) In this section, you should discuss the implications of your recommendation as well as its limitations. For example, are there any negative consequences to your recommended strategy? What are other costs or risks that were not considered at the time of evaluation of alternatives? How can they be minimized? Is your recommended solution able to address all the underlying issues, or does it have limitations? Do you foresee changes that will impact on your recommendations? This section can help strengthen your strategic alternatives. For example, if you are writing limitations that you may have control over, you may prefer to incorporate ways of dealing with them in your alternatives. In other words, this section should represent things that you may not have control over.
HURRY!!!!!! (Accounting and finance related) 2 pages of writing and 1 exhibition. Part of a group project. Please see the instructions very carefully then decide if you can not assure quality work by
Executive Summary External Assessment: Opportunities and Threats The company that we will be discussing throughout this paper is a part of the agribusiness industry. This industry has a few major business segments such as crop harvest, food and beverage production, oil production, and many more. After this fact it comes to no surprise that this industry is geographically all around the world with some exceptions being in areas of the world that are too cold. Knowing it is such a big and diverse industry there are many different opportunities and threats that come with it. The first opportunity that companies in this industry can face is generating more profits by being sustainable. The reason for this is due to the fact that many people are willing to pay a higher price if they know that this means the environment was not harmed. Consumers are growing more and more environmentally conscious and many are now trying to protect the environment in different ways and the easiest for them is to buy sustainable products. A threat that we have found during our research is coming from the environment itself. The agribusiness industry is dependent on factors such as the weather and diseases as well as the demand of consumers. These specific factors are often not possible to be changed. If a crop is not able to grow properly due to the weather, the crop is lost and not usable anymore. While the threat mentioned earlier is always present, there is another opportunity in this industry which consists of the production of soybeans. These specific beans are necessary for many different products and food productions. Therefore, it is a desirable market to be in and a market that will consistently be necessary. It gives companies in this industry to have a big market reach and high amount of sales if they decide to enter this segment. Internal Assessment: Resources and Capabilities For our research purposes, we are focusing on Bunge, which is a company in the agribusiness area. The company’s main production segment in the agribusiness is the processing of soybeans. With this product, they are abl;e to produce and sell various kinds of oilseed, grains, fertilizers, sugar, and bioenergy. To get a better understanding of where the company is standing in this industry compared to its competitors, we will be taking a look at its value chain activities. When taking a look at the company’s management, we can see that it consists of highly experienced individuals. The CEO of Bunge has been in the agribusiness for over 24 years and the rest of the management team has also been working in this industry for a long time. This surely gives the company a temporary competitive advantage due to the fact, that it is quite rare to have this opportunity. However, while it is rare as well as valuable, this advantage is not inimitable because there are many professionals with experience in this industry and any company could hire them. Next we will be talking about their manufacturing segment. This company has a very good manufacturing area which is for a good reason. Bunge is focused on developing a good relationship with its farmers which helps them to ensure their manufacturing is as good as possible. Having a good relationship with its farmers is quite rare since not every company cares about that and it is also very valuable since it can ensure long run production. However, this is not inimitable either since other companies would only have to work on their relationships with their manufacturing teams and then they would have the same advantages as Bunge. Therefore, this is also a temporary competitive advantage. The next activity that we will discuss is the company’s research and development. Bunge is always trying to find new and improved ways to use their products and their research and development team did great with that. The company has found four new growth platforms that can ensure an income for the long run. Those platforms consist of oilseeds, plant-based oils and fats, plant-based proteins, and renewable fuels. These are all valuable and rare and while it may be hard for companies to imitate it at the moment it will not be in the long run, which makes this activity a temporary competitive advantage as well. These new platforms can ensure the company will reach new clients that are more concerned with a healthy as well as sustainable lifestyle. A look into exhibit two can give a better understanding of Bunges value chain. Internal Assessment: Financial Performance and Future Financial Capacity After we have researched the financials of Bunge, we are now able to take a closer look at them in exhibit 3 and understand how successful this company is. The first thing that is sticking out, is the return on assets that the company has over the past three years. In 2019, Bunge had a negative return on assets which shows us that they had no profit and when looking at the other numbers of this year, we can see that the company was not doing well overall. The return on equity had also been very low with a -22.10% which again tells us that the company has not been profitable in this year. However, what is incredibly important to see, is that the company was quickly able to turn its financials and the profitability of the company around in the year 2020. Within just one year, Bunge was able to improve its return on assets as well as equity tremendously. They were no longer in the negative with these two ratios, however their free cash flow per share in this year was in the negative. This negative shareholder-return ratio shows us that in 2020 Bunge had a low ability to pay its debts which was a decrease compared to the previous year. Seeing this problem, in the 2021, Bunge was now in the green with all of its financials. The company was finally able to make a profit while still being able to pay back its debts. Current Strategies and their Implementation The current business strategy of Bunge is based on differentiation. They have many different products that they are offering to their customers and they are also very future oriented because they are constantly working on finding ways to grow. The company is using the standardization strategy to reach as many customers as they can and since they are in a market that is always needed, they succeeded with it so far. To further enhance the quality of the way that Bunge is doing business, they are using horizontal integration and related diversification. This specific decision helped them to work together with the farmers producing the necessary seeds and grains they need for their products while also helping them to have the ability of creating and manufacturing their own products. The strategies and functions that Bunge is using in their business helps them to be future oriented and be successful in the long run, however, the competition in this industry is quite big and therefore, they need to find more areas in which they can differentiate themselves from their competitors. Our goal is it to discover an alternative based on the information that we have gathered in this case, to help Bunge stay successful in the long-run and not get lost in the cluster. Key Issue(s) of the Case Implementable Strategic Alternatives Criteria and Evaluation of Alternative by Criteria Recommendation and its Implementation Limitations and Critique of Recommendation Exhibits Exhibit 1: External Analysis Opportunity by creating profit through sustainability People are becoming more environmentally aware and many are willing to pay more if they know that means the environment is protected New options of product creation through new research such as biofuels which means the company can always research new options Threat through factors that cannot be influenced or changed Agribusiness is often dependent on weather, diseases and other environmental factors that cannot be changed Bad weather means low product values and in turn income goes down Wildfires could completely destroy crops which would create a loss Opportunity in soybean production Soybeans are used in a lot of different products that are used by everyone Cooking supplies and other oils as well as food products Can reach a very high amount of customers This industry has a lot of segments and a high amount of competitors, therefore a company that wants to be successful needs to excel at, at least one, segment. Exhibit 2: VRIO Analysis of the Company Value Chain Activities Specific Attributes Along the Value Chain V R In W/S/DC/SDC O Competitive Implication: Likely to have Management Experienced CEO and management team yes yes no Distinctive Competency yes Temporary Competitive Advantage Distribution Own distribution system not outsourced yes yes no Distinctive Competency yes Temporary Competitive Advantage Manufacturing Good relationship with farmers yes yes no Distinctive Competency yes Temporary Competitive Advantange Service Various help services for farmers yes yes no Distinctive Competency yes Temporary Competitive Advantage Research and Development New growth platforms have been discovered yes yes no Distinctive Competency Yes Temporary Competitive Advantage Marketing Not very advanced no no no Weakness no Competitive Disadvantage The VRIO framework shows us that the company has a lot of competitive advantage but none of them are sustainable and they may want to consider doing some research and improvements to reach sustainable advantages. Exhibit 3: Financial Analysis Name 2021 2020 2019 Return on Assets 8.38% 5.50% -6.79% Return on Equity 27.65% 20.53% -22.10% Current Ratio 1.77 1.47 1.55 Quick Ratio 0.86 0.82 0.79 Asset Turnover Ratio 2.4834 1.7503 2.246 Inventory Turnover Ratio 6.6171 5.3847 8.0584 Debt to Equity Ratio 0.61 0.72 0.62 Long-term Debt to Capital Ratio 0.3796 0.4178 0.3813 Price-Earnings Ratio 6.69 8.12 Free Cash Flow Per Share 4.4482 -16.6465 2.9851 From the financial analysis we are able to see that it seems like the company has been improving their financials over the last 3 years and has further increased their assets. Exhibit 4: Current Strategies and their Implementation Name(s) of the Business Strategy(ies): Differentiation Customer Needs: Food and Drinks, Oils of various kinds, Bioenergy Customer Groups: Globally suppliers of oil, retailers, and the direct consumer Basis for Competition: Superior Quality and innovation in various areas such as sustainability Corporate Strategies: Horizontal Integration, related diversification, Placement in the Value System: Manufacturer Global Strategies: Standardization Major Functional Strategies: Operation Strategy Implementation: Structure, Process, Controls, and Culture Centralization, flat hierarchies, functional structure, informal integrating mechanisms, output controls, Exhibit 5: Strategic Alternative Descriptions Name of the Alternative or Strategic Goal Identifier: Customer Needs: Customer Groups: Basis for Competition: Corporate Strategies: Placement in the Value System: Other: Key Issue(s) Addressed by this Alternative: FEASIBILITY JUSTIFICATION FOR THIS STRATEGIC ALTERNATIVE Environmental Opportunity(ies): Environmental Threats, Risks: Present Corporate Attributes relevant and sufficient to this alternative (Strengths, Distinctive Competencies, or Sustainable Distinctive Competencies): Missing and/or insufficient Corporate Attributes (Weaknesses): Exhibit 6: Strategic Alternative Descriptions Name of the Alternative or Strategic Goal Identifier: Customer Needs: Customer Groups: Basis for Competition: Corporate Strategies: Placement in the Value System: Other: Key Issue(s) Addressed by this Alternative: FEASIBILITY JUSTIFICATION FOR THIS STRATEGIC ALTERNATIVE Environmental Opportunity(ies): Environmental Threats, Risks: Present Corporate Attributes relevant and sufficient to this alternative (Strengths, Distinctive Competencies, or Sustainable Distinctive Competencies): Missing and/or insufficient Corporate Attributes (Weaknesses): Exhibit 7: Assumptions and Justifications Exhibit 8: Strategic Alternative Net Present Values Exhibit 9: Strategic Alternative Net Present Value Exhibit 10: Evaluation of Alternatives by Criteria Criteria Name of Alternative 1 Name of Alternative 2 Shareholders Net Present Value Stakeholder Customers Employees Environment (Sustainability) Other Stakeholder(s) (Optional): Specify Other (required) Please specify Other (optional) Please specify Exhibit 11: Implementation Schedule/ Action Plan Bibliography: Bunge Current Ratio 2010-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/current-ratio Bunge Debt to Equity Ratio 2010-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/debt-equity-ratio Bunge Financial Ratios for Analysis 2009-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/financial-ratios Bunge PE Ratio 2010-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/pe-ratio Bunge Quick Ratio 2010-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/quick-ratio Bunge Return on Investment 2010-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/roi Bunge ROA 2010-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/roa Bunge ROE 2010-2022 | BG. (n.d.). Www.macrotrends.net. Retrieved December 11, 2022, from https://www.macrotrends.net/stocks/charts/BG/bunge/roe