Recommend a corporate finance strategy to enhance the value of an organization
Student Success Criteria
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Scenario
Fitbit has been around since 2007. Complaints are on the rise as the customer service department is outsourced and only consists of a chat feature. Sales have started to decline as bad reviews increase.
One of the suggestions to boost sales and retain existing customers was to bring customer service back in house. This creates the need for a $2 million-dollar call center to house 60 call, chat, and email agents. You are the financial manager and therefore must review the capital structure strategy for this project, review all the financial risk associated with the project, and analyze the budget to decide if the organization will accept or reject the proposed project.
Instructions
In Microsoft Word, write a recommendation that addresses the following:
Discuss Fitbit’s organizational structure from production to current customer service.
Explore all the financial risk associated with this project
Analyze the provided financial statements for budgeting and savings methods
Recommend project be accepted or rejected with detailed reasoning
Fitbit’s organizational structure is divided into four main production stages: design, development, manufacturing and distribution. At the design phase, Fitbit engineers work together to create the product’s specifications and features. Next comes the development stage where software developers write code for the product and designers create visual elements. During this phase, testing is also done to ensure that all components are working properly. The manufacturing phase involves producing the actual products in bulk while ensuring quality control measures are being followed. Finally, in the distribution stage, Fitbit ships their products out to retailers or customers and provides customer service when necessary (Fitbit Inc., 2018).
From a financial perspective there are several risks associated with this project including cost overruns due to unexpected delays or changes in materials or labor costs as well as potential issues related to recall of faulty units which could lead to costly lawsuits (Miller & Crossan 2015). Additionally, if Fitbit fails to adequately protect its intellectual property then competitors may be able to produce knock-off versions of their product which could hurt sales revenues (Lane et al., 2016). Finally, without a proper plan for marketing and customer support it can be difficult for consumers to even know about new releases from Fitbit leading reduced profits.
Therefore it is clear why having an effective organizational structure along with a comprehensive risk management plan are so important for any company looking at launching a new product such as Fitbit.
A significant area of contention is the change from “womanhood” to “parenthood”. It tends to be contended that when ladies become moms, they lose their orientation character for a parenthood personality. Bailey (1999) tracked down in her investigation of self-character and the change to parenthood: “the course of individualization which rules most of these ladies’ lives subsided with the approach of parenthood” (p. 344). This recommends we are compelled to perceive “vital ramifications for both an identity and show of self as a mother” (Mill operator, 2005, p. 14) while figuring out our way of life as ladies as well as our way of life as moms.
By tolerating the personality of mother, certain exhibitions are normal. Ladies might have a ‘decision’ to become moms yet they don’t pick the exhibition that is supposed for them to complete as a mother. These assumptions build this identity(J. Steward, 1993). Steward (2008) states: “Character classes will generally be instruments of administrative systems” (p. 166). Parenthood isn’t an exemption for this guideline. On the off chance that a mother doesn’t follow specific pre-set guidelines, they are likely to unfortunate results. Steward (2008) recommends this about orientation yet it can likewise be applied to the idea of parenthood: “a necessary exhibition in the sense carrying on of line with… standards carries with it discipline” (p. 174). This demonstrates in the event that decides are not followed that lay out great parenthood philosophy, they might be marked as a “terrible” mother.
Tiger mum peculiarity:
Geertz (1983) contends culture isn’t intrinsic, it is “systemised”. All over the planet, individuals carry on with various social lives which implies our presence of mind contrasts as per our encounters. A comparative perspective on this is of Talcott Parsons (1955) who features “the capabilities a family will rely upon the sort of society where it is found”. For instance: The Tiger mum peculiarity was presented by a renowned essayist called Amy Chua. Tiger mum usually alludes to a domineering and severe mother who compels her kids to accomplish the most significant levels in scholarly community, while compromising the youngster’s social and mental prosperity (Chua, A 2014). This technique is generally involved by families in East Asia and Southeast Asia. Tiger mums are the individuals who center just around instruction and homework and put down stopping points that might involve permitting their kid to just embrace exercises which will help their schooling. Such moms won’t permit their kid to participate in friendly exercises in the apprehension that it would obstruct the youngster’s odds of coming out on top. Tiger mums are said to apply mental command over their youngsters which restricts their personality arrangement. In the event that youngsters don’t live up to their folks’ assumptions, tiger mums can genuinely coercion their kids or now and again apply low-level actual discipline. The offspring of a tiger mum are not permitted to pursue their own choices corresponding to their schooling or their life day to day. Tiger mums push their youngsters to succeed scholastically no matter what the kid’s skill, capacities or energy for examining. A kid’s day will be busy with instructive classes, even after school which will be set by the mum. This type of nurturing is adequate in Asian societies like China, South Korea, Malaysia and Philippines. While western societies, strong nurturing is seen as misuse. In spite of the fact that, youngsters raised with tiger mums have proceeded to accomplish the most significant levels of the scholarly world, studies have shown that