Company Level Analysis for Opportunity and Threats- myassignmenthelp

Question: Discuss about theCompany Level Analysis for Opportunity and Threats. Answer: Introduction This report reflects the understanding of key factors and impacts of opportunity and threats on the newly established business functioning of organization. In this report, opportunity and threats has been described and its impacts on the financial position and internal rate of return have been determined. Analysing Opportunity and threats of Coffee business in New Zealand and its impact on profitability of company With the increasing ramification of economic changes and peoples inclination towards business growth, it is observed that if coffee business in New Zealand has been increasing very drastically. There are several opportunities and threats which businessman will have if he establishes its coffee business in New Zealand (Prasad, Middendorf, Pierzynski, 2014). Opportunity There are several international coffees Cappuccino, Espresso coffee, Macchiato and Cafe Latte which are mostly liked by the coffee lovers in New Zealand. Businessmen could take finance from the New Zealand market at very cheap cost. There is no established Coffee brand in New Zealand which could give tough competition in Coffee market. The Expected sales volume in the Coffee Market is 10,000 for each coffee types and ranging from $4.00 - $5.00 which is highly admirable by the clients in New Zealand. Internal and external economic factors of New Zealand coffee market divulge at least 2% growth rate in its total turnover on yearly basis (Bull, et al. 2016). Threats It is evaluated that due to tough competition from the existing coffee business, Company needs to implement new innovative and creative business (Yuan, 2013). Company has to face high amount of tariff and traits due to import of coffee products and remittance of money to other counties. Increased level of cases and penalties if impose on caf business may result to destruction of brand image and lower down the overall sales turnover. It is observed that requirement of NZ$ 5, 50,000 in the caf business in New Zealand may result to high capital cost for the organization. Company has to earn its return on capital employed more than 15% to create value on the investment. The cost of capital to raise finance in New Zealand would be at least 15%. Other new drinks may result to decrease in the coffee business in New Zealand. Company may face problem to hire experienced employees from its business. Impact of opportunity and threats of coffee business in New Zealand on the profitability and revenue. It is observed that coffee business has growth in the market and teenage people, couples and office going workers are more inclined towards drinking coffee on consistent basis. However, cost of one coffee will take only 30% of its cost and will result to 70% profit margin. This level of cost and profit structure will increase the overall capital and its value in the market. In addition to this, Company may have low level of cost of production of coffees in its business chain due to its over estimation and including of project escalation amount. It will increase the overall profit and efficiency of company (Culp III, et al. 2016). Recommendation to mitigate threats of company Coffee business needs to customize its international coffees as per the demands and needs of clients in New Zealand market. Company could also hire experienced employees from international market to increase the overall effectiveness of its value chain activities. However, in order to mitigate penalties and tariff rate, Coffee business should enter into strategic alliance with other existing organizations in New Zealand market. Company should also increase the business efficiency to increase its overall turnover so that it could create value on its investment in this coffee business. Strategies to meet the well projection of business activities It is evaluated that company should implement enterprises resources planning in its business. It will help top management department and other employees to communicate with each other in determined approach. However, coffee business could also install cyber computing to take online orders from the clients for international drinks. This ERP system accompanied by cyber computing will help management team to take strategic decisions in effective and determined approach. Conclusion Financial implication and strategic decisions are the key pillar of business success of organization. Now in the end it could be inferred that the project implement by the Coffee business showcases the estimated cost and money required to implement business functioning. However, company should also evaluate the possible changes and uncertain factors affecting the coffee business in New Zealand in determined approach. References Bull, J. W., Jobstvogt, N., Bhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., ... Carter-Silk, E. (2016). Strengths, weaknesses, opportunities and threats: A SWOT analysis of the ecosystem services framework.Ecosystem services,17, 99-111. Culp III, K., Eastwood, C., Turner, S., Goodman, M., Ricketts, K. G. (2016). Using a SWOT Analysis: Taking a Look at Your Organization [2016]. Prasad, P. V., Middendorf, B. J., Pierzynski, G. (2014). USAID Feed the Future Sustainable Intensification Innovation Lab Partnership Meetings with CIMMYT and partners: Detailed and Full Report of SWOT AnalysisBangladesh. Yuan, H. (2013). A SWOT analysis of successful construction waste management.Journal of Cleaner Production,39, 1-8.