99%(95)94 out of 95 people found this document helpful
This preview shows page 5 - 7 out of 16 pages.
Because of this, Hisco has the lowest sales per employee due to the number of employees thecompany has. In addition, Hisco has the lowest labor effectiveness of the three companies due toexpanding labor and lines. I believe that this has lowered the current value of the company, but ifthe right investments are made in the future, this could ultimately add value to the company. Usingthe same metrics, I believe that Matek has the most value in this area because of its low number ofemployees, higher labor effectiveness, and high sales per employee. Redex has results in these areasthat are in between that of Matek and Hisco. I believe that all three companies would have equalvalue based on recurring revenue. The proportion and quality of automatic revenue collected eachperiod would relate to the technical quality and price of the product at each company. The higherquality products offered by Redex would have the highest price, while the lowest quality productsoffered by Hisco would have the lowest price. Higher quality products tend to require less thanlower quality products. I believe that this value driver would ultimately be equal between the threecompanies. Monopoly control refers to how well the company's product is different from itscompetitors (Durham, 2017, p. 18). I believe that this value driver is currently adding value toHisco due to it being the only company to expand outside of the U.S. (or into the EC). Currently,Hisco is the only company with this capability, which sets it apart from its competitors. If Hiscodoes not continue to expand into other countries and its competitors enter the EC, I believe that thisdriver would go to Redex due to its high quality. Customer satisfaction is not directly measured in
Page 6 of 16Student: Tracie Bowleythis simulation. The only feedback I have found that relates to consumers is perceived quality.Based on this particular factor, I believe that Hisco does not gain value on this driver. Instead,Redex would gain value as it has the highest perceived quality of the three companies. Hub andspoke refers to the , p. company's ability to perform if in the event that a key employee were unableto work for three months (Durham, 2017. p. 18). This value driver is unclear because information isnot provided on key employees and their subordinates (like Mr. Fix-It or Stall Brick). The same istrue for Redex and Matek. In addition, it is unknown how much of a key employee Danny is.While Hisco is the only company he distributes for, it is unclear if Hisco employs other distributors.With these unknowns, this value driver will be classified as equal across all companies.Based on the above information (which excludes financial performance and growth potential),my perspective of HIsco's value is average. Most areas are neutral because of a lack of informationor factors that equally influence each company. When it comes to growth potential, I believe thatHIsco leads the pack. All three companies have implemented Project 1 and Project 3. Redex didnot take advantage of Project 2, which speeds up their readers.