Because of this Hisco has the lowest sales per employee due to the number of

Because of this hisco has the lowest sales per

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Because of this, Hisco has the lowest sales per employee due to the number of employees the company has. In addition, Hisco has the lowest labor effectiveness of the three companies due to expanding labor and lines. I believe that this has lowered the current value of the company, but if the right investments are made in the future, this could ultimately add value to the company. Using the same metrics, I believe that Matek has the most value in this area because of its low number of employees, higher labor effectiveness, and high sales per employee. Redex has results in these areas that are in between that of Matek and Hisco. I believe that all three companies would have equal value based on recurring revenue. The proportion and quality of automatic revenue collected each period would relate to the technical quality and price of the product at each company. The higher quality products offered by Redex would have the highest price, while the lowest quality products offered by Hisco would have the lowest price. Higher quality products tend to require less than lower quality products. I believe that this value driver would ultimately be equal between the three companies. Monopoly control refers to how well the company's product is different from its competitors (Durham, 2017, p. 18). I believe that this value driver is currently adding value to Hisco 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 Hisco does not continue to expand into other countries and its competitors enter the EC, I believe that this driver would go to Redex due to its high quality. Customer satisfaction is not directly measured in
Page 6 of 16 Student: Tracie Bowley this 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 and spoke refers to the , p. company's ability to perform if in the event that a key employee were unable to work for three months (Durham, 2017. p. 18). This value driver is unclear because information is not provided on key employees and their subordinates (like Mr. Fix-It or Stall Brick). The same is true 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 information or factors that equally influence each company. When it comes to growth potential, I believe that HIsco leads the pack. All three companies have implemented Project 1 and Project 3. Redex did not take advantage of Project 2, which speeds up their readers.

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