Loading...

Strategic Financial and Managerial Business Plan for Beatrice & Franklin Associates LLC

Managerial Economics

Project Report 2016 8 Pages

Business economics - Business Management, Corporate Governance

Excerpt

Contents

SECTION 1: STRATEGIC THINKING

SECTION 2: STRATEGIC PROCESS PLANNING

SECTION 3: OPERATIONAL PLANNING

SECTION 4: IMPLEMENTATION

SECTION 5: EVALUATION AND CONTROL

SECTION 6: STRATEGIC ANALYSIS

REFERENCES:

SECTION 1: STRATEGIC THINKING

Finance/Managerial Economics

Beatrice & Franklin Associates LLC, is looking to expand its product offering to include financial services, healthcare, export and import business, estates development, and business development consultancy in United States and Africa. Businesses undertake frequent strategic thinking and reviews to set their directions and organizational structure based on an analysis of their industry confinements (Reeves & Deimler, 2011). Beatrice & Franklin Associates LLC, will develop and operate on these business categories with high competitive edge. Following the first force in the five forces model of competition, which consisted of some competitive pressures associated to the market indicator and competing for buyer patronage that goes on among rival sellers in the industry (Thompson Jr., Strickland III, & Gamble, 2008).

SECTION 2: STRATEGIC PROCESS PLANNING

Finance/Managerial Economics

Beatrice & Franklin Associates LLC, faces a number of financial hurdles in starting its new business unit by entering the market, it has a significant advantage over a business that would be entering this market from scratch (Hedley, 2012). Because it already provides services in similar service categories, Beatrice & Franklin Associates LLC, has many of the general internal financial processes in place to enter this new service category (Reeves & Deimler, 2011). . Beatrice & Franklin Associates LLC, will generate the requisite funding for this market expansion through its existing sources of capital by using any combination of selling new common or preferred stock, issuing additional bonds, and tapping into its cash reserves.

Information Technology (IT) and Human resources expenses needs are in order to staff the new division with skilled employees, including a new IT division, marketing managers, and accounting staff (Sourabh, 2006). In light of these startup costs, including fixed asset costs, including computer equipment and additional office space, and variable costs, such as the addition of staff members (Reeves & Deimler, 2011). Beatrice & Franklin Associates LLC, will consider the option of acquiring a current payroll-processing firm. Such an acquisition, however, would enable Beatrice & Franklin Associates LLC, to enjoy an installed base of customers (Givner, 2009).

SECTION 3: OPERATIONAL PLANNING

Finance/Managerial Economics

The operation plan for Beatrice & Franklin Associates LLC, financial efforts will focus on how to integrate an existing financial services, healthcare, export and import business, estates development into the company’s existing business categories (Reeves & Deimler, 2011). The plan here is to locate existing business categories with significant market share that largely caters to businesses of the same size and type that Beatrice & Franklin Associates LLC, focuses on now. This will enable Beatrice & Franklin Associates LLC, to get a foothold with business customers that are also the primary target market for the company (Thompson Jr., Strickland III, & Gamble, 2008).

To enhance Beatrice & Franklin Associates LLC, enhanced ability to keep competitors from wooing away its clients, it could specifically target clients who have started to make a move into providing healthcare, export and import business, and estates development thereby presenting a new competitive threat to the other companies (Reeves & Deimler, 2011). While the addition of the new business categories will require additional staff, the economy of scale that Beatrice & Franklin Associates LLC, will be creating will allow it to enjoy an important cost advantage over small-scale firms (Thompson Jr., Strickland III, & Gamble, 2008). In order to benefit from this economy of scale through the combination of the two companies, the issue of several employees performing redundant functions need to be addressed. Some staff layoffs will be required, while the closure of offices will also be a possibility in order to cut costs and enable the combined company to operate as efficiently as possible (Heathfield, 2005). Through these moves, Beatrice & Franklin Associates LLC, will be able to provide the same services as the two companies did before, but at a lower cost (Reeves & Deimler, 2011). .

SECTION 4: IMPLEMENTATION

Finance/Managerial Economics

Implementing our financial plan of integrating the existing operations of an online payroll provider into those of Beatrice & Franklin Associates LLC, will be challenging, but we feel this is necessary. Sometimes a company has gaps in its product line that needed filling. Acquisition is quicker and more effective way to extend a company’s product line than going through the implementation of introducing a company’s own new products to fill the breach (Thompson Jr., Strickland III, & Gamble, 2008).

Every company has different ways of organizing its financial operations, so in order to implement our acquisition strategy, we will need to review the way that our acquisition target accounts for its operations. After all, we will only want to manage two separate sets of books for a short time after the merger. Within a year, the accounting department of Beatrice & Franklin Associates LLC, will be required to consolidate the records (Reeves & Deimler, 2011). .

We expect this process to be simple by merging the accounting teams of Beatrice & Franklin Associates LLC, and the acquired company into a single Finance department. This department will undergo minimal or no layoffs initially, as we will need as much work force as possible to coordinate the consolidation of accounts (Downs, 2016). After the merger, we will refinance any outstanding debt from the acquired company by financing at terms less favorable than available to the Beatrice & Franklin Associates LLC. For example, as Beatrice & Franklin Associates LLC is a larger firm than the company we are acquiring, we expect credit markets to see it as less of a risk, enabling Beatrice & Franklin Associates LLC, to call back bonds issued by the smaller firm and reissue them at a lower rate.

SECTION 5: EVALUATION AND CONTROL

Finance/Managerial Economics

We will need to monitor the finances of Beatrice & Franklin Associates LLC, on two fronts after it acquires a payroll processor and begins providing that service under its own brand (Reeves & Deimler, 2011). First, we will evaluate the costs of running this new business. This is because mergers and acquisitions do not produce the hoped-for outcomes. Cost savings may price smaller than expected (Thompson Jr., Strickland III, & Gamble, 2008).

By merging an existing payroll processor into Beatrice & Franklin Associates LLC, existing financial services business. These synergies are vital to the success of this venture into online payroll processing, as they will keep costs down (Knilans, 2009). If these cost reductions fail to materialize to a significant extent, then Beatrice & Franklin Associates LLC, will not be able to price its services as competitively and/or with as high a profit margin as was anticipated.

Aside from costs, the second way that we will monitor the finances of the combined company is to evaluate the revenues from the combined company (Reeves & Deimler, 2011). In addition to the synergies resulting from cutting redundant operations (Heathfield, 2005). Beatrice & Franklin Associates LLC, will also benefit from synergies in attracting new clients and expanding the range of services it offers to existing clients. The number of client accounts should be simpler than the sum of what Beatrice & Franklin Associates LLC, had in financial services customers plus the acquired company’s payroll customers.

[...]

Details

Pages
8
Year
2016
ISBN (eBook)
9783668359901
File size
479 KB
Language
English
Catalog Number
v346318
Institution / College
Walden University – Technology and Management
Grade
A+
Tags
strategic financial managerial business plan beatrice franklin associates economics

Author

Share

Previous

Title: Strategic Financial and Managerial Business Plan for Beatrice & Franklin Associates LLC