MGM465-0801A-05 Business Strategy-Phase 1 Discussion Board Essay

MGM465-0801A-05 Business Strategy-Phase 1 Discussion Board - Essay Example Those products are also low in terms of quality and that is one of the reasons for its lower market share. The company uses very outdated technology for production. There is no room for improvement of the existing plant due to the shortage of funds. Since the company is still owned and controlled by the family members there is limited mobility of capital and other funds in the company. Shortage of funds has prompted the company to play in the market with the existing facilities and strategies. The company has less strategy for improving the competitiveness of the products. The rivals of Able are competent enough that it even grabbed the market share of cordless products which was first introduced by Able Corporation. Now the company is in the process of being acquired by another company Walden International. â€Å"Walden International Incorporated (Walden) is interested in buying all of the assets and liabilities of Able Corporation (Able)† (Graves, 2007). Walden International is a highly specialized business firm and the upcoming acquisition is supposed to benefit Able Corporation to rejuvenate. â€Å"Founded in 1987, Walden International is an established global venture capital firm† (Walden International, 2008). 1. The first strategy is to improve the market share through the product in which they are specialized. That is it is Able Corporation who introduced the cordless products for the first time in the market. Therefore, when the company invest more in improving the quality of the cordless products and establish better marketing strategies it will be able to recover the current position. Redesigning the existing cordless products will improve the acceptability of the products in the market. When the Company gets acquired by Walden International a brand change in the products of Able will be made. This will change the poor reputation that Able was facing. All the products especially the cordless products will be rebranded by Walden in

Financial Economics Essay Example | Topics and Well Written Essays - 1500 words

Financial Economics - Essay Example Over time the option can gain a lot of value if the price of the stock rises since the employee has the right to purchase the stocks at the predetermined price. Since the objective for the employee is to gain the maximum monetary benefit possible as a beneficiary of a stock option plan I would encourage the company to implement financial and investment strategies that will increase the value of the firm. In order to learn the best strategy to optimize the value of the stock option plan we must evaluate the potential effects of the company choosing increased dividend payout strategy vs. stock repurchase program. The dividend payout policy of a firm refers to the decision regarding the magnitude of the dividend payout which is the percentage of earnings paid to the stockholders in the form of dividends (Referenceforbusiness). The owner of a company’s common stock will always prefer to have the highest dividend payout possible. One of the main reasons people like dividends so much is because they are obtaining an immediate financial return instead of waiting for the sale of the stock to achieve a capital gain. In order to better understand the effect of dividend we must recognize the existence of retained earnings. At the end an accounting period when profits are determine the board of director can either declare dividends or kept the profits in the form of retained earnings. When money is not distributed and it is kept as retained earnings the company can utilize these funds to make the business grow. If a company is able to invest its money wisely in high yield projects, the firm can achieve internal grow that will raise the market value of the company. During bad financial times such as the current global recession it is common for companies to reduce their payout of cash dividends in order to maintain its liquidity and to keep its cash balance as high as possible (Bigda). A sector that has been horribly as far as reduction in