Alteryx - The Leader in Data Analytics and Process Automation

Internal Risks and Opportunities 

Alteryx Company faces internal risks and has internal opportunities as well just like any other company in the software computer company in the United States of America and the rest of the world. One of the internal risk that Alteryx may continuously face is the management issue. Most of the company leaders use the traditional vertical leadership style also known as the hierarchical leadership. With the increase in the level of technology, the current management styles at the company may be soon outdated (Vrhovec et al. 2015). The leadership in the company is in the risk of being outdated and especially in the contemporary world, which has been characterized by rapid changes in the management styles and the other ways that the management uses to be in charge of the company (Vrhovec et al. 2015). The management of the company may also make inappropriate decisions to address some of the issues that may be faced by the operations of the company on a daily basis. Additionally, the leaders of Alteryx may not be educationally equipped to make firm decisions such as the venturing into the agricultural sector by the company. Therefore, the management of Alteryx may be at risk (Vrhovec et al. 2015). 

The current expansion of the country into the agricultural industry and the other countries other than the USA may make the employees feel like their jobs are being offshored (Vrhovec et al. 2015). That may reduce their performance in the workplace as they gradually lose trust in the company. That is expected to lower the return on investments for Alteryx Company in California and the rest of the United States of America (Vrhovec et al. 2015). That becomes a human resource risk at Alteryx. With their jobs lost, the company will lose a significant skills value and hence a reduction in the input consequentially reducing the financial capability at Alteryx. That will make the company realize less money than anticipated (Vrhovec et al. 2015). The other internal risk that may be faced by Alteryx in their proposed venture into the agricultural industry is the failure to educate the employees and keep them updated on the current trends in both the software and the agricultural sector (Vrhovec et al. 2015). The failure to be educated among the employees will leave them blind to the opportunities in the current world. That will shrink the financial opportunities and performance of the company (Vrhovec et al. 2015). 

The management problem at Alteryx Company can be solved by continually training the company leaders in the development of the company and especially involving technology and innovation (Schneckenberg et al., 2017). That will usher into the company the new styles of leadership that will make the company benefit from it in the financial decisions that will be used in the project in the agricultural sector. That will revert the expected downward performance in the finances of the company in some years to come (Schneckenberg et al., 2017). The risk of loss of job for the existing staff at Alteryx can be solved by increasing the intensity of the pieces of training that the human resource department gives to the employees. The employees will, therefore, keep their jobs even as Alteryx Company ventures into the agricultural industry in the United States of America and the other countries across the globe (Schneckenberg et al., 2017). The training and education offered to the employees will improve their output and consequently increase the company's earnings in the financial estimates (Schneckenberg et al., 2017). 

Alteryx also has some internal opportunities that are expected to contribute to the company's increase in the targeted financial capability over time (Kapoor & Agarwal, 2017). One of the internal opportunities in the company is the opportunity to invest in the agricultural industry. The company has the required funds to set up investments in the agricultural sector and come up with the final project that will enable the company to invest in the project itself (Kapoor & Agarwal, 2017). The other opportunity for the company in the investment is the dedication of the current employee base. The company has employees who have formed a team to ensure that they work effectively on their proposed agricultural project. The investments of the company in the project will be made possible by the team of employees who are currently at the company (Kapoor & Agarwal, 2017). The employee base will also be relevant to the establishment of the customer service standards that Alteryx would like to accord their new and existing customers. Such opportunities will boost the financial estimates of Alteryx (Kapoor & Agarwal, 2017). 

External Risks 

Externally, Alteryx Company Is faced with both the external threats and the opportunities. The external dangers range from the natural to political and the economic factors that may derail the activities of the company and especially the financial ones. The culture and politics form a vital environment for the success of the agricultural endeavors of the company. For instance, the people who have been used to the traditional farming procedures albeit the level of technology increasing rapidly in the twenty-first century (McDonnell & Werner, 2016). Alteryx may have to include more effort in the education of the potential customers in the agricultural sector that the company may be targeting with the increase in technology in the field. That may also come with the use of more funds and reduced revenue for the company (McDonnell & Werner, 2016). On the other hand, the flexible cultural settings among the customers in the United States and beyond may be instrumental in the establishment of the project and the increase in the net sales of the products (McDonnell & Werner, 2016). 

The political atmosphere of the USA and the other countries that Alteryx would like to venture could pose a risk to the financial development of the company to both the economic growth of the company both in the long term and to the short-term (McDonnell & Werner, 2016). The lack of peace and political stability may narrow the opportunities that the company may have in the investments such as in the agricultural industry. That could potentially reduce the targeted profits for the company in the sector (McDonnell & Werner, 2016). Similarly, the setting up of the venture in an insecure place may pose a threat to the expansion of the business since there could be a risk of theft of the company equipment as well as break-in incidences. That would reduce the financial capability of the company in the long run (McDonnell & Werner, 2016). The other political risks that would derail the company's financial performance are the inability of the governments for the countries in which Alteryx is present to execute the diplomatic relations with the other governments. That infringes the opportunities of the company to exponentially expand thus resulting in low economic returns (McDonnell & Werner, 2016). 

Natural disasters could also pose risks for the financial development of Alteryx. For instance, California is known for its forest wildfires as natural calamities. The forest fires have for a long time halted the activities of many industries and particularly those within the forests (McKnight & Linnenluecke, 2016). That has significantly reduced the financial prowess of the companies in their respective industries. Other calamities such as hurricanes and floods have destroyed the companies' facilities and equipment worth millions of dollars, which may lead to the companies incurring losses and reducing their financial estimates (McKnight & Linnenluecke, 2016). Also, the natural calamities may destroy the markets for Alteryx in both the software and the agricultural sectors. For instance, a drought in the state of California may lead to the failure of agricultural setups, which may diminish the potential market base for the company in its proposed project (McKnight & Linnenluecke, 2016). Such natural disasters form some of the risks that may lower the financial performance of Alteryx Company in its plan that entails venturing into the agricultural sector and transforming it to achieve more returns (McKnight & Linnenluecke, 2016). 

The first most important step in the planning and the mitigation of the external risks that Alteryx Company may face is the maintenance of an adequate level of capital to cover the risks. In case there are natural disasters that have affected the company, Alteryx Company can ensure that there are sufficient funds to finance the equipment and facilities that may have been destroyed by the disasters. For instance, if the computers are damaged by a hurricane, the company can have set aside some money to take care of the disaster before it happens (McKnight & Linnenluecke, 2016). The other step in the mitigation and planning for the external risks at the company is to have an assurance of obtention of credit to finance the risks once they happen. Alteryx Company may ensure that it has had networks and connections with the local banking institutions within California (McKnight & Linnenluecke, 2016). The banks may provide Alteryx with the money required to cover the already occurred risks (McKnight & Linnenluecke, 2016). The company may also relocate to a physical location where there is less danger of the natural disasters. It would be essential for the company to have proper forecasts in the business cycles to try to estimate when the company may be involved in the political crises within the USA and beyond (McKnight & Linnenluecke, 2016). 

Microeconomics Factors 

For the long-term business strategy development and the formulation and implementation of the critical decisions in Alteryx Company, several microeconomic factors will be considered. The first factor is the presence of the customers. Consumers are a part of the stakeholders of a business that is quintessential for the development of the company and its expansion. The customers usually have a direct microeconomic implication on an organization (Driouchi, Wang & Driouchi, 2015). The attraction of the potential customers in the agricultural projected at Alteryx customers Is one of the fundamental aspects of the decisions that the management of the company needs to make to improve the financial performance of the company (Driouchi, Wang, & Driouchi, 2015). The managerial decisions will also lead to the proper knowledge of the ideal customer for the technological solutions in agriculture for the customers in the state of California as well as the neighboring states such as Arizona and Oregon. Therefore, the consideration of the customers to Alteryx Company is an essential tool to sustainable business decisions (Driouchi, Wang, & Driouchi, 2015). 

The other microeconomic factor that would influence the corporate decisions at Alteryx Company is the presence of the employees. The employees are a vital part of the company as they play the chief role of communicating the company's goals, objectives, mission, and the vision to the stakeholders such as the customers (Driouchi, Wang, & Driouchi, 2015). In the case of Alteryx, the employees are the ambassadors of the project that the company intends to initialize to revolutionize the agricultural sector in the USA. The employees' motivation is one of the decisions that the management of the company deliberate on constantly (Driouchi, Wang, & Driouchi, 2015). Once motivated, the employees are usually capable of transforming an organization into a modern one. Summatively, the training of the employees by the human resource department is a relevant factor in the development of their skills and builds up their confidence to engage in the competition and especially with those of the other companies in the agricultural and the software industries in the USA (Driouchi, Wang, & Driouchi, 2015). 

The other microeconomic factors that would affect the decisions made by the business are the presence of the distribution channels and the suppliers (Driouchi, Wang, & Driouchi, 2015). In the production of the products and services that Alteryx uses to cater to the needs of its potential market, the company requires suppliers for the raw materials (Driouchi, Wang, & Driouchi, 2015). Alteryx Company requires a good network with the suppliers to establish a smooth flow of the goods to be used in the company's production units. The company also requires different suppliers in and out of California to ensure that the flow of the required materials is constant (Driouchi, Wang, & Driouchi, 2015). The management, therefore, requires deciding on the best suppliers. Additionally, the distribution channels of the company and especially to the agricultural customers need to be decided on by the leaders. The company may opt for the direct dealing with the customers so that it can establish relationships with the customers and increase profitability (Driouchi, Wang, & Driouchi, 2015). 

The agricultural technology also referred to as the agriculture tech, or merely the agtech industry is competitive in the state of California. The state of California is well known for its agricultural endowment in the United States of America. Some of the key players in the agtech sector are Blue River Technology and E & J Gallo Winery. The two organizations have been in the industry for some time now and may reduce the opportunities for the growth and expansion of Alteryx in the agricultural industry (Miron, 2016). In addition to the already existing players in the agtech sector, the new entrants in the market may pose a risk to the financial performance of Alteryx. Decisions at the company may involve coming up with innovative strategies that will differentiate the company from the other agtech companies in the state (Miron, 2016). 

The investors of Alteryx Company are also part of the microeconomic environment of the organization. The investors in conjunction with the other stakeholders of the business will be responsible for funding the startup of the agricultural project, as the company establishes roots, and grows in the sector. The decisions of the management of Alteryx will contribute to the talks with the stakeholders of the company to provide the financial boost that is required for the project. That is expected to give the amount of money that is needed for the commencement of the project. 

Alternate Financial Scenarios 

Sales fall and rise 

If the sales fall by 20%, the unit costs will tend to rise. The unit costs are mostly the fixed costs that are incurred by the company in the production of its products and services. Some of the unit costs are discretionary while the others are committed fixed costs. The managers at Alteryx Company have control over the discretionary expenses such as those used in the marketing of the products that would transform agriculture in the United States of America using technology. The managers have no power over the committed costs such as insurance premiums paid to shield the company from the risks in its various environments such as the natural disasters, and the long-term lease payments being paid. This is because the amount of money spent on the unit costs is indirectly proportional to the sales made by the company. Impliedly, when there is a decrease in the amount received by the company in sales of the agtech products, an increase in the unit cost that the company has to cover is observed. 

If the sales rise by 20%, the unit costs at Alteryx Company reduce since they are indirectly proportional to the amount of money realized in the sales of the company. The gross profit of the company will also increase. The net income of the company will increase provides the costs of production be constant or record a decrease in the amount used. The percentage of the return on investments will increase since the sales and revenues in the company have increased. The break-even point of the company is also expected to decrease with the increase in the sales of the company. That is because the fixed costs of the company either remain constant or reduce in the given time. The lowering of the break-even point means that the company will now sell fewer items to cover the costs of production than before. For the proposed agricultural project, the increase in the sales by twenty percent is more beneficial for the company in the investment than the drop in the same percentage in the sales. 

The increase in the sales in the company will offset an increase in the net profits incurred from the investment, which means that the profitability of the project will be higher. The financial ratios such as the current ratio will increase which will be essential to improve the credit score of the company for the sake of the potential lenders. 

Time value of money 

Due to the rise in the rate of inflation in the United States of America and the other countries, the value of money in the present is better and more than that of the same amount in future. The increase in the rate of inflation leads to a decrease in the earning capacity of the currency in the case of a business. According to the core principles of finance, any money can earn interest. The future value of money is, therefore, more than the current value of money, which means that the current value is always more significant than the future value. 

For instance, if $1.00 is invested for the next one year at an interest rate of 6% per annum, the amount after one year will be as follows. 

Future value = present value + interest accrued. 

The total interest will be given by: 

Principal (original amount) × rate × time 

Interest = 1.00 × 6/100 × 1 

Interest = $ 0.06 

Future value of the initial $ 1.00 will be given as: 

= $ 1.00 + $ 0.06 

= $ 1.06 

That means that the current $ 1.06 is worth $ 1.00 in a year's time. Conventionally, the rate of inflation is calculated in the same way as the interest. Therefore, a large amount of money in the present might be worth less money in the future. The value is reduced. The net present value of the money exponentially reduces as the time goes by in the investment of the company. The rate of return of the money in the company is expected to increase in a year's time as the rate of inflation keeps rising. The payback values for the company will be more in amount but with reduced quality. For the proposed investment, the time value of money might reduce the quality of the returns. 

References 

Driouchi, A., Wang, M., & Driouchi, T. (2015). Determinants of software piracy under risk Aversion: a model with empirical evidence. European Journal of Information Systems , 24 (5), 519-530. 

Kapoor, R., & Agarwal, S. (2017). Sustaining superior performance in business ecosystems: Evidence from application software developers in the iOS and Android smartphone ecosystems. Organization Science , 28 (3), 531-551. 

McDonnell, M. H., & Werner, T. (2016). Blacklisted businesses: Social activists’ challenges and The disruption of corporate political activity. Administrative Science Quarterly , 61 (4), 584-620. 

McKnight, B., & Linnenluecke, M. K. (2016). How firm responses to natural disasters strengthen Community resilience: A stakeholder-based perspective. Organization & Environment , 29 (3), 290-307. 

Miron, J. R. (2016). The Rise and Fall of Urban Economics: Lessons from San Francisco and Los Angeles, by Michael Storper, Thomas Kemeny, Naji P. Makarem, and Taner Osman. 2015. Stanford, California: Stanford Business Books. 305+ xvi. ISBN: 9780804789400. $60.00. Journal of Regional Science , 56 (4), 717-718. 

Schneckenberg, D., Velamuri, V. K., Comberg, C., & Spieth, P. (2017). Business model Innovation and decision making: uncovering mechanisms for coping with uncertainty. R&D Management , 47 (3), 404-419. 

Vrhovec, S. L., Hovelja, T., Vavpotič, D., & Krisper, M. (2015). Diagnosing organizational risks In software projects: Stakeholder resistance. International journal of project management , 33 (6), 1262-1273.