Business Portfolio and Dynamic Capability Development Report
The following post has two assignments namely;
1. Business Portfolio and Dynamic Capability Development Report
You are required to review an organisation case study including statistical information on business unit performance and current market conditions.
The case study will also include information regarding the organisation’s current capacity to respond effectively to change.
You must then prepare a Business Portfolio and Dynamic Capability Report slide presentation using the following headings:
A. Business Portfolio Analysis
Plot each business unit on a BCG matrix, GE-McKinsey matrix, and Synergy matrix
B. Business Portfolio Recommendations
Provide recommendations to the organisation for the strategic management of each business unit with explanations for each recommendation
C. Dynamic Capability Analysis
Prepare an assessment of the organisation’s dynamic capability including its capacity to:
1. Identify and assess opportunities
3. Transform and reconfigure strategic assets
D. Dynamic Capability Recommendations
Provide recommendations to the organisation for enhancing overall dynamic capability with explanations for each recommendation
2.Principles of Financial Literacy
Case Study Source Information
You work as a Financial Planning Adviser and have been asked to assist with three potential clients. You have received background information on each client (see below).
Client Name Greg Agnes and James Martha
Age 28 35 and 34 61
Status Single, renter Married, home owners Widower (single), home owner
Dependents Nil Two young children Nil
Occupation Actuary Doctor and Musician Retired architect
(after super and after tax) AUD95,000 pa
Mainly salary AUD175,000 pa
Mainly salaries AUD65,000 pa
Self funded retirement and investment income
(living and financial) AUD75,000 pa AUD135,000 pa AUD55,000 pa
Major assets Cash at bank AUD15,000
Car AUD25,000 Cash at bank AUD35,000
Home AUD1.5 million
Car AUD45,000 Cash at bank AUD20,000
Superannuation AUD1.2 million
Home AUD1.1 million
Investment apartment AUD0.7 million
Major liabilities Credit card debt AUD5,000
Car loan AUD20,000 Home loan AUD1.1 million Nil
Major financial goals Purchase home within five years (price approx AUD1 million) with 10% cash and 90% home loan Repay home loan within 15 years Continue self funded retirement and undertake one overseas holiday each year (approx cost AUD25,000 per holiday)
You have had an introductory meeting with each potential client to obtain a better understanding of their circumstances, financial goals and risk preferences.
– Is a junior Actuary with a boutique firm on a career path that should see significant advancement and substantial salary increases over the next 10 years. In the future, as a senior Actuary, Greg will be well positioned to become a partner in the firm or to start his own firm. Either way, his earning potential will be about five times his current earnings.
– Greg enjoys socializing and is well known for hosting extravagant parties. He regularly attends rock concerts and goes skiing in Japan at least twice a year.
– He has a good understanding of financial markets and is familiar with risk and return.
– Both personally and financially, Greg considers himself to be a risk taker – provided the outcomes are worth the risk.
Agnes and James:
– Agnes and James have been together for nearly 10 years and have two young children. Agnes works in the local medical practice as a General Practitioner and James works in a recording studio as a sessional (casual) musician. They both have flexible work schedules and share the home responsibilities. The pay for a General Practitioner is much higher than for a musician – on an equivalent per hour basis, Agnes earns about 8 times the rate James earns.
– Agnes currently works four days per week or 0.8 FTE (full time equivalent) and is considering reducing her workload to 0.6 FTE. James has written a musical comedy and is interested in staging the show for a short season at the local theatre.
– Family is their top priority and they work hard to ensure that their family and work life is balanced and comfortable. It is likely their children will attend the local state schools, but they are interested in maybe sending them to a private school for the final five years (this would cost about AUD100,000 in total for each child for the five years).
– Both Agnes and James consider themselves to be risk neutral – they assess each opportunity on its merits. But they would never place in jeopardy their family or their family wealth.
– Martha was married for 25 years until her husband died about 18 months ago. She now lives alone. Financially, Martha is comfortable in retirement – largely as a result of following a financial plan as married couple for many years.
– Martha is active, in good health and helps out as a volunteer in several community activities. She likes to travel and is hoping to take an overseas trip each year for as long as her health will allow.
– She has three adult children and four grandchildren. The eldest daughter and her family live in Italy so Martha is hopeful she can arrange her travel to include occasional visits to Italy.
– Martha is conservative by nature – even more so since losing her husband. She has no interest in risky investments.
You work as a Financial Planning Adviser and have been asked to assist with three potential clients. You have received background information on each client. You have had an introductory meeting with each potential client to obtain a better understanding of their circumstances, financial goals and risk preferences.