Executive summary
Andrews Comp-XM Corporation is a multinational company specializing in biometric sensors. Over the past eight years, we have made remarkable efforts to offer value to our clients as we strive to become a technology solutions provider of choice. Considering the challenging business operating environment, we are proud with the manner in which we have been able to effectively manage risks and expand our business in the past eight years. We have remained resilient in the midst of the growing competition and the changing industry trends especially with technological changes. We have a robust risk management framework and we can say that our character of being resilient has been made possible by our systems, which are designed in a manner that they can adopt new applications in the midst of technological advancements. For example, our income and earnings for the past three years have risen by 14 percent, which is one of our best performances in recent years. We are pleased that our reputation has grown continuously and we have gained recognition even globally.
We have a strong commitment to our customers, the strength of our brand, and the capacity of our product offerings to rival other players in the market. It is our commitment to build a sustainable organization. For this reason, we are continually making effort to improve the customer experience for our clients, building an effective work force that is ready for the current and future conditions, as well as being environmentally and socially responsible. In terms of customer experience, we changed our strategy and this has helped the company to embrace innovation and our customer service quality has greatly improved. We can say that the company has enjoyed a profitable growth over the past eight years and we look forward to an even better performance in the future.
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In conducting our operations, we have continuously assessed social and environmental risks as they pertain to the business so that we can create value and maximize socially mutual benefits. We acknowledge that earning the trust of the society and out investors among other stakeholders is critical to our success as a company. One of the most important factors in our company is that we treat people as the most valued assets because they help us in executing our strategy, which is critical for success as a company. We do not only provide an empowering and fun working environment for our employees, but also in our commitment to up skilling our staff, we have established a training center.
Regarding dividends, we paid a full-year dividend of 54 cents per share in the past two years. We are optimistic that with improved business performance, these dividends will increase in the coming years. Our future prospects are promising. The economic growth on the global scene has been irregular but we maintain our focus. Moving on forward, we are positive that we will be able to go through an uncertain business operating environment as we have proved in the past eight years.
SWOT Analysis
Strengths
Qualified personnel: these have been our core strengths as they are committed and engaged towards the realization of goals and objectives towards the overall strategy of the business.
Innovation: our company boasts of creativity and innovation that is coupled with the flexibility of our systems and people. This innovativeness has helped the company to remain competitive in the market and be able to offer products that suit current market needs. We are committed to customer satisfaction.
Financial stability: the company has been able to accumulate considerable capital over the past and we can say we have a solid stand in terms of financial strength
Barriers to market entry: there are considerably high barriers to market entry and entrant firms may not be able to compete in the level that Andrews Comp-Xm is operating from. One of the barriers is high initial cost of starting the business.
Cost advantage: our company is able to operate with minimum costs of labor and this has made the business highly profitable and productive.
Good sales and distribution networks. The company does not require new networks and sales channels as it is already established and its brand has become recognized.
Weaknesses
Poor investment in research and development: considering the financial strength of the company, Andrews Comp-XM needs to rethink its approach to sustainability. Research and development is critical and the company seems to be making insufficient efforts towards the cause.
Solely local presence: the company conducts its business locally and it has not explored opportunities in the global business environment.
Opportunities
There is a significant growth in demand for biometric products and Andrews Comp-XM has the opportunity to leverage on the new sales prospects. As cyber risk is growing with the advancement in technology, biometric sensors are in high demand as organizations and corporates try improve security and prevent cyber-attacks
Global expansion: the global markets are expansive and some have not been tapped. Having been recognized locally, the company has the strategic advantage of venturing into overseas markets and growing its customer base.
Mergers and acquisitions: the company can acquire similar businesses to fend off competition as well increase market share.
Threats
Business risks from the external environment: as any other business, Andrews Comp-XM faces external risk in terms of possible fall in volume of sales, changing price of inputs, abrupt changes in technology/ disruption, and competition.
Regulatory environment: government policies and regulations may present an unfavorable business environment for Andrews Comp-XM even as it seeks to expand to the global markets. High taxes, policy change, and restrictions can impact the profitability of the business negatively.
Possible rise of cost of production: the current economic times are characterized by rising cost of labor and the cost of inputs may also change.
With the above analysis, our strategy universal, that is we focus on all customers that demand our products. These include SMEs, corporates, institutions, and even government agencies to offer them biometric solutions especially. Our top priority at Andrews Comp-XM is to strengthen our key values especially in being purpose-driven. We strive and are committed to designing products that produce good results to have a positive impact on the customers. For this reason, innovation will be critical to our journey to success. We intend to increase our investment in research and talented people so that we are able to make cutting-edge products that meet customer needs. In fact, our objective is to meet and exceed the expectations of the customers with innovative solutions.
Sustainability is fundamental to our business. We acknowledge that responsible business practices will be critical and beneficial not only to the environment and the society, but also for our profitability. From our corporate governance structure, we have devoted a committee to oversee sustainability efforts to make sure our operations are regularly assessed. These assessments will help identify the gaps in our practices that need to be revised. This way, Andrews Comp-XM will be able to run its operations in a sustainable manner. In addition, the company is going to intensify its efforts in CSR initiatives. One of the most important social responsibilities of the company is towards its employees. For this reason, we aim at improving our work environment in terms of safety, health, and flexibility, and to continually motivate our employees in order to retain our best.
In line with corporate social responsibility, Andrews Comp-XM has not had any significant incident over the past. However, it is fundamentally crucial that we watch out for the future risks and uncertainties. In terms of legal challenges, the policies of fair competition may present the company with obstacles in case Andrews Comp-XM decides to make business acquisitions either locally or internationally. To overcome this challenge, the company will need to go through the right procedures and channels by following the regulatory guidelines, which may vary from country to country (Morden, 2012). Legal costs for non-compliance are considerably high and the company should try to minimize them in all ways possible. There is also the risk of ethical challenges that may face the company in future. Social and ethical issues result from moral obligations towards the various company stakeholders. One of the ethical risks is the possible diversity issues when working in a multicultural environment (Cavusgil, Knight & Riesenberger, 2012). This is a challenge that can be experienced by the company when it comes of recruitment and training of new staff. In addition, the issue of ethical decision-making is critical as the rights of stakeholder groups such as employees and customers must be protected. To overcome these challenges, Andrews Comp-XM needs to focus on maximizing the value of each stakeholder and ensure the common good and rights are protected. For example, employees should be paid according to their job descriptions and the rewarded based on performance without unequal treatment. In general, the company should emphasize the commitment to a code of ethical conduct to guide its practices.
As seen, one of the opportunities for Andrews Comp-XM is that of global expansion. If it were to enter the global market, the first and the most important factor to consider is the preferred entry mode. There are different market entry modes that suit different types of businesses and the nature of products. Equity-based mode is recommended for service companies and firms with high capital resource to initiate foreign operations. Equity-based modes of market involve direct equity investment in another country in terms of foreign direct investment, partnerships (joint ventures) while non-equity modes include exporting and franchising (Cavusgil, Knight & Riesenberger, 2012). For example, to minimize the risk of poor reception of products, the company may consider exporting products first, and when the market is established, it can begin operations in the foreign country. The second factor to consider is foreign competition. A country with numerous market players offering similar products would not be the ideal investment destination. However, the level of competition can help inform the company on the appropriate marketing strategy in order to enter the market successfully. The third factor is market saturation. It is important to determine whether the new market areas are untapped or the market is saturated with similar products. Most importantly, the political environment in foreign countries should be assessed before internationalizing (Morden, 2012). Foreign political factors may offer an enabling business environment while at the same time there may be significant risks. Issues such as security, peace and stability, regulatory policies, tax regimes, and incentives should be evaluated before the company commits into investing in a foreign market. For example, a strict regulatory environment would imply that not only business operations are restricted, but also the returns are minimal. On the other hand, foreign markets with incentives for international investors can be favorable for the company. In all these cases, the company needs to make a careful assessment of the foreign market and the external business environment before reaching a decision to expand internationally.
Expansion to global markets has various advantages and disadvantages. For example, launching operations in a new market can open doors for future expansion in neighboring regions (Burrow & Kleindl, 2012). For example, a company does not only gain better information of the foreign market but also establishes sales channels and distribution networks. Having a foothold in an untapped market is usually very profitable for a business as there is no direct competition. However, such expansion can be exposed to a significant risk, which can lead the company to making losses. Another drawback is that cultural issues, distance, and political factors may become an obstacle in the coordination of the company (Burrow & Kleindl, 2012).
Reflection
This capstone has been a successful learning process. The process to this capstone began with the various business courses I undertook. Then followed the capsim simulation, which was somehow challenging but it was a good learning experience. I was surprised that the simulation brought out aspects of a realistic business environment, which did not feel like analyzing an imaginary company. This capstone is important for me especially at SNHU as it was not only relevant for the academic program, but also it gave me insights on what to expect in a real-world environment. I gained crucial professional etiquette skills, which will be crucial for me in my professional life. I will apply these skills in business planning and analysis. In the course of this capstone, collaboration was fundamental and the people I worked with were very crucial in solving problems and offering ideas. This collaboration helped me improve on performance in this class. I was able to establish and demonstrate effective business communication through various presentations and consultations. In general, this capstone was the best learning experience. Through the project, I was able to experience how it is to have a practical application of knowledge learned in the entire course.
References
Burrow, J. & Kleindl, B. (2012). Business Management (1st ed.). Mason, US: Cengage Learning.
Cavusgil, S., Knight, G., & Riesenberger, J. (2012). International business (1st ed.). Upper Saddle River, N.J.: Prentice Hall/Pearson.
Morden, T. (2012). Principles of strategic management (3 rd ed.). Aldershot, England: Ashgate
