Question

In: Finance

explain a corporate default predication modal clearly indicating its strength and weakness

explain a corporate default predication modal clearly indicating its strength and weakness

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Expert Solution

Strength: Good Location: An executive leader choose appropriate location or the geography for an organization based on the following factors: Operating style, Demographic conditions, General Traffic and commute to the office, Parking & Accessibility to the location, Proximity to other general services, Blueprint and history of the site, Rival spots near the location, Ordinances, Infrastructure of the building, Other amenities and utility services.

Strength: Technology: When it comes to Technology, an executive leader would choose cloud computing services which are the most prominent technology currently being used. Some of the key features of cloud services are as follows:

1. To sustain spotlight on the core deliverables: These days organizations are pondering that having IT department in their companies are no more a distinguished competence. Moving to cloud related services as either a stand-alone application or over the web is the most cost-effective model.

2. Business nimbleness: Organization with enormous investment in IT suffers when it comes to meeting the ongoing demand in the market due to the pressure of new entrants. This limitation overcomes through the cloud as it prevents these complex situations.
3. Reduction in the capital cost: Huge Investments can be minimized by keeping sourcing data through the cloud. Operating expenses is almost nil.
4. Reduced Capital Expenditures: Large capital investments can be minimized or eliminated altogether in favor of small monthly payments.
5. Scalability Features: Organizations whose staffing requirements are variable in nature can easily benefit from the cloud as both during peak and off-peak season by having the contingent workforce.
6. Accessibility: One of the significant benefits of cloud services are users can access the internet from anywhere in the world.
7. The effectiveness of Staffing: Cloud helps in maintaining an effective technology workforce and outsourcing key technical requirements which are relevant to the context of the business.

Weakness: Staff Turnover: In order to overcome the risk of staff turnover, an executive leader shall follow some of the following techniques: Hygiene factors like Extrinsic ones includes components like Facilities provided by the organization, working conditions, organization’s policy towards staff, salary, incentive and bonus, promotion and interpersonal relationship with colleagues etc., also important for an employee to accept the offer from the company and start working. Example: Employee ‘A’ has just joined the company where his requirements are about getting to know what his pay is, the culture of the organization, people and his job where most of his Hygiene factors need to be taken into consideration.

Motivation is an Intrinsic factor that includes components like the job that the employee do, Supervisor’s appreciation, Rewards & Recognition, Achievement oriented feeling, additional responsibilities etc., plays a significant role in employee’s commitment towards work. Example: An employee who has completed about 2 years in an organization, will be looking for several motivational factors were how his work has been recognized in the organization, his promotion to the next layer, appreciation by his/her colleagues etc.,

Weakness: Reputation of the facility: Facility layout is Identification of the best location which is a strategic decision in operations management. This is a decision like any other strategic decisions like identifying the product, choosing the technology, deciding the capacity etc., It is a long term decision. Once the resources are committed taken back the resources involve more cost because of change in the decision later.

After selecting the plant location, based on the type of production system to be adopted, the layout has to be decided. The types of layout are,
• Fixed Product layout
• Product layout
• Group layout
• Process layout


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