Reference no: EM133765068
1. Questions Regarding Building or Partnering:
The main questions that I would ask a small business to determine if we should hire new employees or whether to partner with another firm that already has these capabilities would have to do with the business's current capabilities, available resources, and partnership considerations.
The following is the list of questions I would ask for each category:
Current Capabilities Assessment:
What is the extent of your current technological capabilities within the company?
Have you identified areas where technological advancements could enhance your products or processes?
Resource and Expertise Evaluation:
What financial, human, and technological resources do you have available for investing in technology?
Do you have the capacity and time to hire and train new employees with more sophisticated technology expertise?
How quickly do you need to implement technological advancements in order to remain competitive in the market?
Partnership Considerations:
Are there potential partners or firms with technological expertise that you could collaborate with?
What criteria would you use to evaluate potential partners for compatibility and alignment with your company values?
How would partnering with another firm affect your autonomy and control over product development and decision-making processes?
2. The Information That I and My Consulting Team Would Consider for Deciding If the Company Should Sell to a Larger Company:
My consulting team and I would consider the most critical aspects of a business's success, including, but not limited to, its financial performance, competitive advantage, customer base, and relationships with its employees and community.
The following is the list of questions for each category:
Financial Performance:
What are your current revenue and profit margins, including historical and projected ones for the future?
How does your financial performance compare to industry benchmarks and competitors?
Competitive Advantage:
What distinguishes your company from competitors regarding product offerings, quality, and customer loyalty?
Do you have any unique assets or intellectual property that may be attractive to potential buyers?
Customer Base
Who are your primary customers, and what is the diversity and stability of your customer base?
What changes in consumer preferences and market trends do you predict will happen?
Employee and Community Relationships:
What is the size of your workforce, and how do you prioritize employee satisfaction and retention?
How do you contribute to the local community?
How would a potential sale to a larger company impact your employees and the community, and what measures would you take to mitigate negative consequences?
By gathering comprehensive information on these aspects, my consulting team can provide Charter Capital Partners with accurate and data-backed insights to assess the potential value of hiring more technologically advanced employees or simply outsourcing to a technology firm. As well as information regarding whether or not to sell the business to a large company and the timing of selling the business to a larger company
2
The build-buy-borrow framework is an important tool that will allow the managers of Charter Capital Partners decide an adequate corporate strategy. Their objective is to decide if they should upgrade current operations, find a company partner, or have the company bought.
The small furniture company can be considered successful due to their ability to maintain sales over its lifetime and the fluctuating economy. They face the issue of being left behind in the office furniture industry because their operations aren't equipped to add technological upgrades that the modern customer needs to make working suitable. As a company they can't afford to not participate in the industry trend. It has already been established that the company operates within a small town and has a loyal customer and workforce. In addition, the distance between the companies is not large and they can operate within the same state. The owner is interested in incorporating technology into his products so the option of selling the company as a whole entity doesn't seem ideal due to the owners engagement. The question "What is your stance on functional office furniture? and should technology be incorporated has been met with a positive response indicating that the managers are able to move forward with all three options. Any additional questions should consider that information and build from them. other questions could include "who are your current industry competitors?" Or "which office furniture companies that incorporate technology do you see as an industry giant"or "if you could collaborate with a competitor utilizing technology who would it be"? These question help the managers understand the industry awareness and competitive analysis of the furniture company.
The next set of questions should look to ask about current operations and financial history. Like what is the current price range, how much revenue does the company make, employee salary, sales trends, and how much does producing each piece of furniture cost the company. It would also be reasonable to ask about their current marketing strategy and how they communicate with their consumers. The next set of questions would be geared toward the ownerships involvement in the company like what are his goals for the business, how does he feel about expanding, and does he care to maintain the companies current identity and culture. A following set of question would ask "is there a current pieces of furniture in your catalog that would benefit from integrating technology?". This question would allow the managers to see if the owners know their consumers and gages their knowledge of their products. Also it will allow the managers to see the company's relevancy and tradability.
After the meeting the managers would have to evaluate if the strategic alliance criteria or the M&A criteria applies to the company.