Ethical Culture, Financial Strategies, and Business Analysis: A Comprehensive Guide

Posted on May 14, 2024 in Economy

Ethical Culture in a Company

Three Initiatives for an Ethical Culture

  1. Implementing a Comprehensive Code of Conduct: This document outlines expected behaviors and ethical standards for all employees. (implementar código de conducta).
  2. Providing Regular Ethics Training: Offer training sessions for employees at all levels of the organization to reinforce ethical principles and decision-making. (entrenamientos éticos).
  3. Establishing Anonymous Reporting Mechanisms: Implement hotlines or suggestion boxes to encourage employees to report unethical behavior without fear of retaliation. This empowers individuals to act as whistleblowers. (tiene que ver con blow whistler (buchón)).

Risk Assessment

Risk Assessment is a tool that companies use to measure customer satisfaction:

B. False. Risk assessment is a process used to identify and evaluate potential risks to a business. Measuring customer satisfaction typically involves surveys, feedback analysis, and other customer-centric approaches.

Financial Structure and Financing Sources

According to your financial structure, explain the main sources of financing:

  1. Equity Financing: Issuing shares of stock to investors. (Vendo acciones a inversores.)
  2. Debt Financing: Obtaining loans or issuing bonds. (Pido un prestamo.)
  3. Retained Earnings: Reinvesting profits back into the business. (Invierto las ganancias.)

Strategy and SWOT Analysis

Strategy is a set of integrated activities to achieve the main objectives of a company:

A. True. Strategy involves planning, coordinating actions, and controlling resources to achieve specific goals or objectives.

Why do companies perform SWOT analysis?

Companies perform SWOT analysis to identify their internal strengths and weaknesses, as well as external opportunities and threats. This analysis helps develop strategies that leverage strengths, address weaknesses, capitalize on opportunities, and mitigate threats.

Financial Indicators: ROA

ROA indicator shows the debt level of a company:

B. False. Return on Assets (ROA) measures the profitability of a company relative to its total assets, not its debt level.

PESTEL vs. Porter’s Five Forces

Differences Between PESTEL and 5 Forces Porter Framework:

  • PESTEL Analysis: Examines broader macro-environmental factors (Political, Economic, Social, Technological, Environmental, and Legal).
  • Porter’s Five Forces Framework: Analyzes the competitive forces within an industry (Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of substitute products or services, and Competitive rivalry).

Walmart’s Financial Strategies

Mention & explain 3 finance principles used in Walmart’s strategy to improve financial performance:

  1. Efficient Inventory Management: Minimizing carrying costs and optimizing stock levels.
  2. Economies of Scale: Leveraging bulk purchasing and efficient supply chain management.
  3. Cost Leadership Strategy: Offering competitive prices to attract customers.

Company Goals, M&A, and Internal/External Analysis

Describe 2 goals of your group company:

Customer Experience Excellence: Apple provides unparalleled customer experiences across all its products and services. Its customer treatment and support are highly satisfying.

Environmental Responsibility: Apple strives to minimize waste and conserve natural resources throughout its operations and supply chain.

Mention 2 advantages and 2 disadvantages of doing M&A as a strategy for growth:

Advantages:

  • Access to new markets and customers.
  • Synergies leading to cost savings or revenue enhancement.

Disadvantages:

  • Integration challenges and cultural clashes.
  • Financial strain due to debt incurred in the acquisition.

Explain the differences between internal and external analysis:

  • Internal Analysis: Focuses on assessing the company’s internal resources, capabilities, and performance.
  • External Analysis: Examines factors outside the company, such as market trends, competition, and the regulatory environment.

Vision, Market Value, and Book Value

Vision means why the company is in business:

B. False. Vision refers to a company’s long-term aspirations and what it aims to become. The purpose or mission statement addresses why the company is in business.

Describe the difference between Market value and Book value:

  • Market Value: The current price at which an asset or security can be bought or sold in the market.
  • Book Value: The value of an asset according to its balance sheet account balance.

Balanced Scorecard and BCG Matrix

The balanced scorecard only includes financial indicators of a company:

False. The balanced scorecard incorporates both financial and non-financial performance measures across various areas such as customer satisfaction, internal processes, and learning and growth.

Explain the differences between SWOT analysis & BCG Matrix:

  • SWOT Analysis: Assesses internal strengths and weaknesses, along with external opportunities and threats.
  • BCG Matrix: Evaluates a company’s strategic business units based on market growth rate and relative market share.

M&A Risks and Finance Department Activities

Mention and explain 3 main risks when you evaluate an M&A:

  1. Tax Contingencies: Issues in tax reporting or misunderstandings of tax laws.
  2. Cultural Mismatch: Companies doing things differently, leading to challenges in achieving synergy.
  3. Obsolete Assets: Outdated equipment or technology that is no longer useful.

Describe 3 activities performed by the Finance department:

  1. Financial planning and analysis.
  2. Budgeting and forecasting.
  3. Managing cash flow and liquidity.

Strategic Planning, Culture, and ROE

Which ones are the steps to build a strategic plan?

  1. Define Mission and Vision.
  2. Set Objectives and Goals.
  3. Conduct a Present Situation Diagnosis (e.g., SWOT analysis).
  4. Prepare the Strategic Plan.
  5. Implement the Plan.
  6. Monitor and Control the Plan’s Execution.

How does culture affect the Strategy of a company?

Organizational culture influences decision-making, resource allocation, and employee behavior, all of which impact the formulation and execution of the company’s strategy. The strategy’s effective execution depends on the mindsets and behaviors of the staff. A friendly and proactive culture enables strategy, while a negative culture can hurt it.

Detail 3 strategic initiatives to improve results in your company:

  1. Product Innovation: Develop new products or enhance existing ones to meet evolving customer needs.
  2. Market Expansion: Expand into new markets to drive revenue growth.
  3. Employee Development: Invest in employee training and development to enhance productivity and customer service.

ROE shows the level of liquidity of a company:

False. Return on Equity (ROE) measures the profitability of a company relative to its shareholders’ equity, not its liquidity.

Porter’s Five Forces and Business Planning

Explain the 5 forces Porter framework & describe the weaknesses or missing concepts of such tool:

Porter’s Five Forces framework analyzes the competitive forces within an industry, including the threat of new entrants, bargaining power of buyers and suppliers, threat of substitutes, and competitive rivalry. Some criticisms include its static nature and failure to address dynamics such as innovation and disruptive technologies.

Mention 2 reasons why a company should not prepare a one-year business plan:

  1. Rapidly Changing Market Conditions: The plan may become outdated quickly due to market shifts.
  2. Short-Term Focus: A one-year plan may neglect long-term strategic objectives.

Financial Statements and Mission Statement

People read financial statements to analyze the quality of products and customer satisfaction:

False. Financial statements primarily provide information about a company’s financial performance and position, such as revenue, expenses, assets, and liabilities. (cómo le está yendo a la empresa)

Mission statement is what the company wants to become in the future. Justify:

False. A mission statement typically defines the purpose and core values of a company. It explains the”wh” of the company and its reason for being in business.

Strategy, Controlling, and Kodak’s Bankruptcy

Define the strategy for a company. Give the example of your group company:

A company’s strategy refers to a plan of action designed to achieve specific goals or organizational objectives.

Example: Apple’s Strategy

  • Innovative Product Development
  • Design Excellence
  • Premium Pricing

Controlling is the management function which focuses on achieving goals. Justify:

B. False. Controlling is a management function that involves monitoring performance, comparing actual results with planned objectives, and taking corrective action as necessary to ensure goals are achieved.

The objectives to prepare an annual Budget are the following:

  • A. Plan the future
  • C. Control performance
  • D. Define responsibilities

Why did Kodak go into bankruptcy?

Kodak’s failure was a result of its inability to adapt to changing market conditions and innovation.

Income Statement and Walmart’s Challenges

Income statement of your company describe:

Profits (Revenues – Expenses)

Explain the weakness that Walmart is facing in the present market. How should the company change its strategy to deal with these new risks?

Weaknesses:

  • Increasing competition from online retailers.
  • Difficulty adapting to markets different from the U.S.
  • Changing consumer preferences.

Strategic Changes:

  • Enhance e-commerce capabilities.
  • Invest in employee training and retention.
  • Diversify product offerings and store formats to adapt to evolving consumer trends and cultures.

Economic and Financial Analysis

Analyze & conclude regarding the economic & financial situation of the following companies:

Without specific companies provided, it’s challenging to provide an analysis and conclusion. (pilot)

Integration Process and Synergies

The integration process is formed when a company is analyzing to buy another company:

False. The integration process occurs after a company decides to acquire another company. The analysis phase comes before the integration process.

Synergies are potential savings that a company could have by buying another company. TRUE.

Synergies are not just potential savings but also potential additional value that can be created when two companies combine.

Enumerate 5 information requests to analyze the purchase of another company:

  1. Financial Statements
  2. Contracts
  3. Salary Information
  4. Mission and Vision
  5. Culture

Green Management and IKEA

Define Green Management.

Green Management refers to managing an organization in a way that minimizes its environmental impact and promotes sustainability. This involves adopting policies and practices that minimize waste generation, promote energy efficiency, and conserve resources.

Example: IKEA

IKEA is known for its commitment to sustainable practices, including using renewable energy sources, sourcing materials responsibly, and promoting energy-efficient products.

Whistleblowers and Code of Ethics

What is a Whistleblower?

A whistleblower is an employee of a company who reports wrongdoing or unethical behavior to higher management or external authorities. They identify and expose misconduct that can harm the company or its stakeholders.

Describe Code of Ethics. Mention 5 examples of information to be included in it.

A Code of Ethics is a set of principles intended to guide professionals to act in a manner that aligns with the organization’s values and is beneficial to all stakeholders involved.

Examples of Information in a Code of Ethics:

  1. Ethical Dilemmas and Decision-Making
  2. Organizational Culture and Values
  3. Employee Conduct and Responsibilities
  4. Conflicts of Interest
  5. Business Practices that Promote Positive Social Change

Tone at the Top

.

Is that the CEO must make the example for the rest of the company.