Business Management Outcome Planning
In order to potentially expand the business of WRSX, the board directors have arranged three subsequent board meetings in order to evaluate several proposed strategies to identify the suitable strategies that can prove to be profitable for the organization. Current report attempts to focus on the proposed agendas in order to identify suitable options aligned with each of the agendas. Three board meetings have several agendas and in accordance to the agendas suitable option has been chosen has been developed in the report along with a provided justification for the chosen option prior to the particular agenda.
Managerial insights from the board meetings
Board meeting 1
In the first board meeting agenda item 6 is associated with the investment that the company needs to consider in the field of data analytics.
Overview of Agenda item 6
There are several radical changes that have been noticed regarding the ability of the advertising agencies prior to delivering value to their clients. Large scale companies including Google and Yahoo are capable of offering their clients services like Big Data. With time the scope of advertisement has increased and online and mobile-based advertisement account for approximately 19% of the total global advertisement spend and the number is increasing day by day. In valuing the new media it is important for WRSX to focus on the data analytics which is considered to be a significant part of the expertise of the advertising agencies. The moot objectives of this agenda are:
- To provide a system of data management within the Insights team that indicates at turning big data into usable information
- Silverfish: This indicates at providing fast and accurate information to the clients of this organization prior to effective marketing.
Prior to the proposed agenda many options could be used in formulating the agenda. Among the options option A seems to be the appropriate one in facilitating the seamless operation of the proposed agenda.
As per the propositions of the option, it is important for WRSX to have a distinctive presence in the digital media space. This is important to develop sustainable competitive advantage. As per the recommendations of Jay and Bjorn the WRSX Group make an investment of £3 million to develop a central Data Analytics and Management unit this year. This indicates investing in people, IT systems and business analytics. It is important for WRSX to position itself as a significant player in digital research, insights and creative media. This unit needs to deliver the digital data and analysis that both Silverfish and Insights need in order to acquire the position of a potent player in the field of advertising.
This option is considered as the ideal one among the proposed option as it provides an optimistic insight in the further development of the company.
Board meeting 2
The agenda item 6 of the second board meeting is concerned with the value of the parent company in the group.
Overview of Agenda item 6
The moot concern behind the establishment of WSRX was to add value to the business of the clients of the company. Therefore the key issue here is questioning the value that is added by the Group function. The board needs to consider the matter of possible layered bureaucracy in the group. The motif is to enhance the competitive advantage of the business unit. It is important to considering the role of the parent company in taking initiatives and programmes that can:
- Provide greater value to the clients
- Guide strategic direction for offering competitive advantage to client companies
- Accelerate group development
- Creating opportunities and rewards for people
Therefore, it is important to have necessary insight upon the functioning of the groups and its ability to adding value as the costs are high and the shareholders can not easily recognize the value that his agenda can add to their business.
Option C has been chosen as the appropriate one as it questions the ability of the parent company to add larger profits to the clients. As per the option, it is important for the company to initiate a task force or highly competent managers in order to review each of the business units in terms of financial performance and contribution to the value proposition as per the client’s perception using group resources. The estimated cost of setting up this review process can be £0.3 million but there is a scope of substantial benefits in the longer term from tackling underperformance in the Group. In addition, it also offers cost savings of £0.6 million per year if the Board also decides to reduce the level of investment in Group functions, with the exception of Group Procurement.
Justification of selecting the option:
This option is suitable for the agenda as it is aiming at improving the functions of the company from the roots and it has the capability to offer effective operational management for better productivity.
Board meeting 3
Agenda 4 of the third board meeting is associated with gaining competitive advantage through the backward integration into reprographics.
Overview of the agenda item 4:
As the company has already acquired a settled position in the market and has won two new clients, it is important to involve different types of advertisement especially the ones that include several newspapers and magazines. The reprographics have the ability to supply the design, text and photographs for the adverts. The company has worked effectively with SpectraGraphics and due to the future situation of the company; it is possible for WRSX to buy the company. It can enrich the client base of the company and can also increase the profitability of WSRX.
Among the proposed options for this agenda, option C has been chosen as the appropriate one. According to the statements proposed in the option, it is clear that WSRX can decide to acquire 90% of the company with 10% of the equity being held by senior management and decide to run it as a separate company and not change its name. It is better to agree on the specific performance objectives with SpectraGraphix as it can include the extension of the current client contracts of WSRX. It is better that the WSRX central procure team to work with the procurement team of Spectragraphix. It can also bring down the costs of reinvestments.
Justification of selecting this option:
This option has been chosen as the potent one as per the contemporary condition of the company, it is better to enter in a agreement with the company rather than having the insight of acquiring the company. Vertical integration is a better option for WRSX.
In the light of the above study it can be stated that the arranged board meetings of WSRX have paved the path for various possibilities that the company can consider in order to develop the company further. The proposed agendas have the ability to increase the profitability of the business. However, it is important for the board of directors to select a proper path for the formulation of the agendas. It is important to conduct significant market research in order to identify effective methods to function the agendas successfully.