Stock Listing and Valuation

Stock Listing and Valuation

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Introduction

 The Pound Land Corporation is a public limited company. The organization operates in the retail industry. The organization was founded in 1990, April.  The founders of the organization were Dave Dodd and Steven Smith. The headquarters of the Pound Land Corporation is in England. The organization has 450 retail centres. The co-founder of the organization is David Dodd, (Michael, 2010). The chairman of the Pound Land Corporation is Colin Smith. The CEO of the Pound Land Corporation is Jim McCarthy. The organization offers grocery products, consumer products and electrical products. The organization reported revenue of 642 Million, (Baker, 2009). The operating expense for the Pound Land Corporation was recorded to be 16 million.  The profit of the Pound Land Corporation was 11.8 million. The employees of the organization were 10020.  The Pound Land Corporation wants to offer their stocks to the London stock exchange market. The stocks are valued at 700 million pounds. The organization has focused the organizational investment plan to originate from the cash flow. The IPO is expected to market the beginning of the end of the private equity ownership for the majority of the shareholders.

1.1. Scope

            The discussion will assess the reasons for the Pound Land Corporation to seek a stock market listing. The assessment of the different valuation techniques for the London stock exchange market will be assessed. The analysis will look at the different approaches that can be applied in the measurement of the management’s support for activities.

1.2. Purpose

 The discussion offers insight on the different stock valuation methods that can be applied in the assessment of the Pound Land Corporation. The evaluation will look at the assessment of the different approaches that will generate the operation of the organization.

1.3. Thesis

The Dividend Discount model is the best for valuing the organization’s stocks

Discussion

2.1. Stock market listing

 The stock market listing supersedes the reason of realising capital or providing a market its share. The Pound Land Corporation offered the stock for listing due to the following reasons. The first reason is for the capital growth. The stock exchange offers the opportunity for the investors and the Pound Land Corporation to increase their control and capital.  The management will be able to attain the overall finances that will increase its competitive advantage in the market.  The second reason is the corporate profile elevation.  The management will have increased publicity to the different stakeholders of the organization. The focus on the different issues of management will allow the increased assessment and auditing of the organization.  The other reason is the improvement of the company’s valuation.

            The Pound Land Corporation invests in the processes due to the institutional investment.  The investment or listing of the stocks increases the organizations acknowledgement by investors. The different stock brokers will be able to assess the different requirements that assure the desires of the organizational approaches, (Zhang, 2010). The management will be able to enrol and encounter with shareholders that have expertise and influence of capital.  The Pound Land Corporation will focus on the assessment of the trading platform.  The management will be able to trade its shares in the stock exchange market, (Lee, 2011). The entry into the London stock exchange will assure the generation of the different tasks that increase the profitability and competence of the Pound Land Corporation.  The other reason for the Pound Land Corporation to enter in to the market listing is the following, (Zhang, 2010). The management can reassure the customers and suppliers on the overall methods that will offer the improvement of the financial and business strength. The management can assess the operations through the assessment of the venture approaches that assure the success of the organization.  The venturing into the business online will require the overwhelming idea for the hearing of the profitable approaches that assure the effectiveness of the business.

2.2. Valuation Techniques

2.2.1. Dividend Discount Model

 The dividend discount model tests the intrinsic value of stock.  This model is the best for the comparison of the nominal growth rate for the economy and the establishment of the dividend payout policies.  The model offers the estimation of the stock in the Pound Land Corporations that is consistent to the payment that can be afforded and accumulated in the process.  This price represents the current value of the revenue streams.  The model incorporates the following assumptions for a valuation.  The rate should be in a stable growth that is based in the area and size that the corporation serves and is regulated, (Baker, 2009). The other assumption is that the stock exchange market wills not all the Pound Land Corporation’s stock to grow to extraordinary rates.  The Pound Land Corporation will be expected to be in stable leverage for the different activities that will be required to be performed.

             The model is analyzed through Gordon Growth Model.  The management will require the investors to purchase the stocks that she expected to obtain from the two types of cash flow dividends and through the periods that were held on the stock.  The rationale of the technique is that the value of the asset and the present value of he expected future cash flow will offer the discounting rate for the overall riskiness of the cash flows, (Louse, 2009).  The obtaining of the expected dividends affects the making of the assumption with regard to the return on stocks that are measured differently with different models, (Lee, 2011). The method requires the valuation of the Pound Land Corporation that is in the steady state of operation. The method assumes that the form will increase its dividends rate at a value that will increase forever.  The model assumes that the Pound Land Corporation’s dividends and other earnings or measures of performance will grow at the same rate as compared to the other stock valuations.

             The limitations of the model are expressed to be the following. The model offers a simplistic and convenient approach for the valuation of stocks. The stocks are extremely sensitive to the inputs for the different growth rates, (Louse, 2009).  The wrong application of the model offers misleading yields and absurd results. The augmentation rate converges on the concession rate that is offered.  The model expresses that, as the growth rate increases, the cost of equity for the value per share will be approaching infinity. The growth rate tends to exceed the cost of equity. The value per share for the Pound Land Corporation will be expected to be negative.

2.2.2. Discounted cash flow method

The discounted cash flow model requires the definition and forecasting of the future cash flows and estimating the appropriate discounting rates. The assets offer the assessment of the value that aims at the current value of the expected future cash flows. The method offers two alternatives, (Baker, 2009). The alternatives are the free cash flow model and the residual income model. The free cash flow model focuses on the finances that are provided to the Pound Land Corporation as the cash flow from the different operations minus the capital expenditures. The free cashflow to equity is assessed for the analysis of the operations minus the capital expenditure and the net payments for the debt holders, (Lawson, 2011). This approach focuses on the principal and the interest paid.  

             The free cash flow method looks at the present value of the future cash flow forecast.  The worth of the equity is the current value. The value is subtracted from the market value of the outstanding debt. The presentment value of the future cash flow equity is discounted through WACC. The discounted rate for FCFE offers the cost of equity for the Pound Land Corporation through the analysis of the required rate of return for the equity, (Baker, 2009). The management can assess the dividends from the cash flows that are paid to the stockholders. The cash flows are placed at the desired distribution levels.  The method looks at the cash flow that is available to the Pound Land Corporation from the common equity holders after the operating expense, principal payments and interests are paid to the Pound Land Corporation.

             The discounted rate determination assures the assessment of the discount rate that is applied for the analysis of the present value for the future cash flow. The risk premiums are required to be analyzed.  The premium involves the compensation requirement for the risks that are measured and are relative to the risk free rate, (Baker, 2009). The required rate of return assures the minimum return is required for the investors to invest in the asset. The cost of equity focuses on the assessment of the required rate of return on the common stock, (Michael, 2010).  The discounted cash flow can be accessed through the application of the following CAPM formula.

2.2.3. Asset based valuation

 The asset based valuation focuses on the value of the asset for the price that are offered through the different organizational audits.    The valuation focuses on the asset, market or the income approach.  The asset approach assesses the asset net of liabilities. The market approach compares the business from the recent transactions of the organization.  The income approach assesses the measurement of value through the conversion of the streams that are expected for the economic benefits. The asset based method assesses the financial position of the organization for the business, (Lloyd, 2009). The assessment focuses on the tangible assets for the organization, asset and goodwill and the worth that other people will pay for the activities.  The management can increase or decrease the values of their assets through the overall price that is provided. The asset evaluation method assesses the balance sheet to identify the financial condition for the organization.  The balance sheet assesses the assets, liability and the capital invested. The assets comprise of all the valuable things that a corporation owns, (Baker, 2009).  The net worth or the owner’s equity focuses on the quantity that is injected in the businesses. The idea of the balance sheet is that the owner’s equity equals the assets minus the liabilities. The assessment focuses on the cost basis and the market basis.

Analysis

 The best approach to implementing will be the Dividend discount Model.  The method offers an approach for the valuation of stocks that are based on the dividends that they pay. The model helps the investors to assess what the dividends mean. The method is simple to calculate and does not engage a lot of technical calculations.  The discounted cash flow method has the flaw of understating the value of the balance sheet assets.  The basing of the valuation on a forecasted discounted assures the perception of the business to be perceived as riskier.  The projections of the organization discounted cash flow method offers minimal guarantees, (Lloyd, 2009). These were the reasons for not using the discounted cash flow method.  The reasons for not using the asset valuation are due to the probability of understatement for the firm’s value due to the aggressive strategies of taxable income. The asset valuation overlooks the value of tangible or intangible assets through the reliance of the potential future growth.

Conclusion

In conclusion, the Dividend Discount model is the best for valuing the organization’s stocks.   The dividend discount model tests the intrinsic value of the stock. The discounted cash flow model has the flaw of focusing on the present value of the future cash flow forecasts. The asset based valuation, on the other hand, summarizes the position of the organization.  The reasons for the firm to become listed in the stock exchange was to increase visibility in London Market, assess the firm’s index eligibility, assure the institutional investment, assess the market support and assure the well regulated and fully automated marketplaces.

Reference

Baker, H. (2009). Liquidity and Stock swap Listing: Journal on Financial Review, 25, 2, 231-249

Lawson, C. (2011). The Effect of compensation Methods on Risk repugnance: Journal on Economics, 39, 3, 249-260.

Lee A. (2011). Forecasting linear dynamical systems Appling subspace methods. Journal on Time Series Analysis, 32, 5, 541- 590

Lloyd, W. (2009). Exchange Listing and extent: Effects On surfeit Returns. Journal on Business Finance and Accounting, 16, 5, 675-680

Louse, C. (2009). Cross-Listing and effective Performance: data from Exchange-Listed American Depositary proceeds. Journal on Business Finance and Accounting, 36, 99-129.

Michael L. (2010). Corporate Political donations and Stock proceeds. The Journal on Finance, 65, 2, 687-724.

Zhang, Y. (2010). Cross-listing and deal on the Domestic bazaar: substantiation from Canada-US Partial Holidays. Journal on Business Finance and Accounting, 35, 1245-1275.

Change Management Models

Change Management Models

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Abstract

            The failure of change management in different corporations has led to the need of identifying the overall changes that occur within the organization.  The objectives of the research were to discuss three change management models, analyze their similarities and differences and assess the need for change management.  The discussion section identified the following. The Levin’s Change Management Model was the easiest to apply due to the reduced number of steps for implementation. McKinsey 7-s Model offered the holistic change strategy for the organization.  The Kotter’s Eight step Model focuses on the preparation and enforcement of the changes within the organization. The research concluded that change management models offer vivid steps for change.

Introduction

The change management has been seen to affect different individuals in organizations.  There are five principles that should be implemented in change management. The first principle is the realization that people will behave differently to the proposed changes. The fundamental needs for the organization allow the meeting of the desired interactions and changes within the organization. The other principle is the realization that change will result to a loss and gain for different individuals. The expectation of the employees should be realistic and the fear should be dealt with by the management, (Haughton, 2012).  The unrealistic expectations, transparency and control of the individual’s expectation are a requirement that is needed in the reassurance of the divergent issues that occur.

             This analysis offers insights to the diverse sectors and management on the implementation of three change models. The realization of the different requirements for the changes will assure the success of the firm with regard to the effecting of the desired rules and regulations.  The intense emotions, stress, strong dissatisfaction and loss of rational judgement can be curtailed through the implementation of the change models.

1.1. Scope

 The research discussion section will research the three different models that have been implemented in change management. The identification of the models will be based on their overall state of the application in the running of the management.  The analysis section will analyze the similarities and differences that the three models pose to the management.  The conclusion section will offer the explanation of the need for change management.

1.2. Objectives

 The purpose of the editorial is to offer insight to the management on handling the different changes that occur in the organization through change management.  The three objectives are as followed:

1.  To discuss three change management models

2. To analyze their similarities and differences

3. To assess the need for change management

1.3. Thesis

Change management models offer vivid steps for change

Discussion

 There are three types of change management model that have been satisfied the requirement to be supportive in the organization of the changes.  These change management models are as followed.

2.1. Model 1- Levin’s Change Management Model

            This model was created in the year of 1950. The inventor of the Model was Kurt Lewin. The model recognized the overall nature of people wanting to operate within a certain zone of safety.   The model emphasized the overall approaches that would provide the leverage for the changes to occur, (Hidalgo, 2012). The employee’s in the organization are required to have the understanding of the need for the changing. The quality of guidance and the dedication of the different sponsors was the other issue that was based on the analysis of the divergent events. The changing structure, education and training were required for the purpose of analyzing the divergent activities for the organization.  The effectiveness of the communication is required. The infrastructure was aligned swiftly and the management to make skills for the change agents.

The model comprised of the three stages of Unfreezing, transition and refreezing.   The unfreeze stage deals with the efforts to curtail the resistance to change. The need to overcome the tendencies requires a period of thawing and unfreezing that is initiated by the organizational motivation, (Hidalgo, 2012). The transition stage follows after the initiation of the changes.  The Corporation or Business moves the transition period to occur during a specified amount of time. The reassurance and adequate leadership are the necessary characteristics that are required to be enforced to the process successfully, (Hidalgo, 2012).  The refreezing stage occurs after a change has occurred. The Corporation or Business will offer automation and behavioural enforcement to operate under the stated guidelines.  This model has been applied due to its ease of application. The model has allowed the offering of the major changes.

2.2. Model 2- McKinsey 7-s Model

 The change management model offers a holistic approach for the management of the operations for the Corporation or Business. The model was created by Waterman Robert, Richard Pascal and Tom Peters.  This was in the year of 1978, (Lang, 2012).  The model offered four unique benefits to different Corporation or Business. The model is an efficient technique for the diagnosis and understanding of the organization. The management will be able to offer the guidance and direction to all the sectors of the organization.  The management allows the combination of the emotional and rational components for guidance. The components offer the integral parts that are to be addressed in the approach for change management. 

The model considered seven stages or issues that are required to be assessed. These included the Shared values, strategy, structure, systems, style, skills and staff.  The strategy stage requires the assessment of the top-to-down delegation, (Haughton, 2012).  The stage of the structure requires the management to offer the reassurance of the board’s critical mass for the change to occur, (Brown, 2012).  The systems or processes of the organization are required to be exclusive and bureaucratic. The identification of the process of change and authority will allow the growth of the divergent approaches that can be used to manage changes.  The style of leadership should allow the empowerment and facilitation of the different issues that are required in the assessment of the approaches of the management, (Brown, 2012).  The skill’s stage requires the reassurance of the support from the interpersonal, political and expertise department for the organization. The shared values allow the purchasing of the patient that is centred on the loyalty and trust.

2.3. Model 3- Kotter’s (Eight step Model)

 The model was created by a university professor by the name of John Kotter.  The changes lead to the campaign of the employees in buying into the changes after the leaders will have convinced the urgent need for the changes to occur, (Chandler, 2012).   The approach has been successful in offering the step by step model approach and offering the focus of accepting and preparing changes. The transition is regarded to be easier with regard to this model. The steps are as follows.

             The management will be required to increase the urgency for change from the management. The identification of the urgency will allow the identification of the divergent issues that necessitate the change. The second step is the building of the team that will be dedicated for the performance of changes. The third step for the management will be the creation of the vision for change, (Chandler, 2012). The vision will offer a guide to the activities of the Corporation or Business. The communication of the need for change will be the fourth step. The fifth step is based on ensuring that the employees are empowered with the ability to change their activities. The creation of the short term goals helps in the achievement of the divergent issues that affect the organization, (Haughton, 2012). The seventh step will be an increase of persistence with regard to the required information.  The last stage is the management’s formulation of policies and guidelines that make the changes permanent.

Analysis

 The three models are used to offer the approaches for changes in the organization. Different institutions can choose any of the models for the purpose of the change.  The similarities and differences of the models are as follows, (Wiseman, 2012). All the models acknowledge the importance of communication in the effecting the desired changes for the management, (Chandler, 2012).  The administration of the institute is required to work on effective communication before effecting the desired changes in the organization.  The ease of communication allows the ease of deploying new skills to the critical areas for the firm.  The management is able to take a little time to communicate with employees.

             All the models agree that the management’s leadership plays a crucial role in change management.  The leaders of the different departments are required to have low levels of anxiety for the effective change implementation, (Wiseman, 2012).  The behavior of the management, like emotional stability, will impact the effective changes to the management.  The action orientation, confidence and transparency are the different traits that were required for the successful implementation of the change management models.

 The disparities of the change models are as follows. The Lewin’s model is seen to be the easiest with regard to the management of the changes, (Lee, 2012). The seven S models and the Kotter’s (Eight Step model) involve the application of numerous steps that have to be implemented.  The Lewin’s model is less complicated than the seven S models and the Kotter’s (Eight-Step model).  The ease of the application has led to the increased application by different Corporation or Business.  The model allows the managers to be able to compare the differences that occur with regard to the changes.  The Lewin’s Model and the Mc Kinsey Model can easily skip the steps. The Kotter’s model will be a failure for a skipped step.  The Lewin’s model is considered to take the shortest quantity of moment as compared to the other models.

The McKinsey 7 S model requires the effective methods for the understanding and diagnosing the changes that have been understood by the organization. This assures the providence of guidance for the organizational changes.  The Lewin’s model and the Kotter’s model don’t focus on the change management holistically, (Lee, 2012).   The model is or beneficial than the others since it considers the emotional and rational components that affect the running of the Corporation or Business.  The model requires the focus on certain items while leaving out the other departments. This limits its operation as compared to the other models.

The Kotter’s eight step model has allowed the skipping of the advantages for the model. The model assures the provision of ease for the easy step-by-step model, (Chandler, 2012).  The focus on the steps requires complete commitment to the changes as compared to the other models.  The model allows the preparation of the employees for the definite changes that will occur in the performance of the definite activities.  The transition is considered to be easier to allow the dealing with time.

Conclusion

In conclusion, change management models offer vivid steps for change.  The implementation of the change management allows the reduction of resistance, stress, dissatisfaction, stability and intense emotions.  The need for transparency, inclusion and control will offer the identification of the divergent issues that affect the operations of the organization.  The loss of the rational judgement assures the identification of the divergent nature of activities and operations within the management.  The editorial was proficient in discussing the three change management models.  The models were Levin’s Change Management Model, McKinsey 7-s Model and Kotter’s Eight steps Model.  The analysis offered the identification of the similarities and differences of the three models. The similarities of the three models were based on the need for effective communication and leadership. The differences acknowledged the following. The Levin’s Change Management Model was the easiest to apply due to the reduced number of steps for implementation. McKinsey 7-s Model offered the holistic change strategy for the organization.  The Kotter’s Eight step Model focuses on the preparation and enforcement of the changes within the organization.

References

Brown, H. (2012). Managerial Accidents: A Systemic reproduction of Production versus fortification. Journal on Management Studies, 49, 1, 52-76

Chandler, J. (2012). Movement and combination in controversy: Gender, supervision and Academics in England and Sweden. Journal on Gender and Organizations, 19, 1, 52-70

Haughton, G. (2012). Post-political spatial development in England: a catastrophe of consensus: Journal on Transactions or the Institute of British Geographers, 37, 1, 89-103

Hidalgo, A. (2012). Innovation supervision techniques and advancement degree: modernism progression in service organizations: Journal on research and development Management, 42, 1, 60-70

Lang, L. (2012). Agency presumption, Institutional compassion, and Inductive analysis: Towards a Legal standpoint. Journal on Management Studies, 49, 1, 223-239

Lee, K. (2012). The control in Organizational information Creation: A re-examine and Framework. Journal on Management Studies, 49, 1, 240-277.

Wiseman, R. (2012). Towards a community Theory of Agency: Francis and Taylor Publication: Journal on Management Studies, 49, 1, 202-222 

research

Culture and Strategy

 The corporate culture has been seen to be an incredible issue that forces the companies to have long-term success in the different issues that they perform.  The strategy that is at a disparity with the organization’s culture makes the organization to be unsuccessful.  The organization’s culture is considered complex and ever changing, (Alice, 2011). The management uses strategy to enable the correction of the corporate governance. This analysis will assess the different relationships between strategy and culture.  The study will assess the different models that allow the formation of the recommendation.

 The first relationship for the culture and strategy is as followed. The strategy offers the direction and focus for the culture, (Meier, 2011). The culture, on the other hand, offers the emotions or organic habitat that allows the company to die or live, (Arnold, 2011).  The management of different organizations is required to offer the direction and vision of the organization with respect to the reception of the strategy and culture, (Becker, 2011).  The second relationship is that the strategy and culture help’s in defining the company’s story, (Beck, 2011).  The cultural needs are clearly understood by the common language that embraces and tells the story on values, vision, mission and clear expectations, (Alice, 2011).   The provision of the clear expectations reduces frustrations and promotes good relations for the management, (Torres, 2011).

The third relationship is on strategic advantage. The strategy differentiation is imperative and offers a vibrant cultural delivery for the different individuals, (Jones, 2011).  The organization’s culture is eroded by the different changes in the market or in the mood of the employees, (Heisman, 2011). The strategy helps to return the employees to the desired direction, (Arndt, 2011).  The culture allows the embracing of the strategy that to foster the execution that is scalable, sustainable and repeatable, (Alice, 2011).  The strategy and organizational culture relationships require the implementation of different models for fostering the behavioral requirements for the different requirements.

 The first model is the Project Based model. These models assess the company’s and people. The focus is on an aspect of reality and possibilities. The model requires the fostering of control cultivation, collaboration and competence, (Travis, 2011).  The control focuses provision of the organization strategy and culture that is stable and supported with a process, (Arnold, 2011). The control requires the option of predictability and actuality of the organization’s strategy. The management supports competence through the expertise, creativity, efficiency and professionalism, (Beck, 2011).  The model requires the cultivation of the organization’s culture through the regard of purpose, faith and dedication, (Arndt, 2011). The strategic directions assure the channeling of the human capital through the organization’s culture, (Jansen, 2011).  The last part of the model is fostering collaboration, (Becker, 2011). The organization’s culture should be tailored by the strategy to offer interactions, partnership, diversity and trust.

The second model is the organization’s model for the organization.  The model was started By Schein and Hatch, in 1985, (Allan, 2011), (Segar, 2011). The models propose that the management should start fostering the strategic management by assessing the basic underlying assumptions for the management and the espoused values, (Meier, 2011). The artifacts are considered the visible behavior of the management.  The strategic management can start through the realization of the artifacts with the different values, (Rowley, 2011). This assures fast decision making, (Greenwood, 2011). The values are able to allow the basing of assumptions for the management in dealing with the relevant occurrences in the organization, (Allan, 2011), (Ying, 2011).  The assumptions are provided different restrictions through the strategic vision or mission for the management, (Heisman, 2011).  The assumptions are later assigned with symbols and classifications.

The third model is the Value Chain Model.  The model deals with the analysis of the primary and support activities for the organization, (Brown, 2011).  The management is required to offer administrative finance infrastructure with the financial management, accounting and the legal requirements, (Christopher, 2011). The Human resource management will use the strategy and culture to assess the staff planning, training and recruitments, (Brown, 2011).  The technology and product development assures that the process and product design allows market testing and research or design, (Herbert, 2011).  The products and the technological developments assure the product engineering and process design for the organization, (Perrot, 2011).  The procurement allows specifications, funding and supplier’s management, (Allan, 2011). These activities support the management’s primary services. The primary services include the inbound logistics, operation, outbound logistics, sales and marketing or servicing activities.

In conclusion, the business strategy and organizational culture are the ingredients for superior long-run performance. The realization of the relationships between the organizational strategy and organizational culture allows the managements maximization of resources.  The strategy offers the management and employees insights on operating in the market. The management is able to attract high returns for the average participation that outperforms the average industry or participants. The competitive growth allows the management to overcome the different rivals through strategic positioning. The operational effectiveness is supplied through the linkage of the rivals.

Reference

Alice, H. (2011). Strategic Human capital Management and the Decline on Employee center. Journal on  Human Resource Management, 21, 3, 209-219.

Allan, H. (2011). Strategic ascendancy and Management secretarial. Journal on strategic management, 47, 3, 210- 225

Arndt, F. (2011). Book Review. The Dynamic Capabilities and tactical Management. Organization for modernization and Growth Oxford. Oxford University Press, 32, 4,  pp. 286

Arnold H. (2011). Strategic Governance and administration Accounting. Evidence from a Case Study. Journal on Abacus, 47, 3, 343-382

Beck, T. (2011). Developing the aptitude for organizational flexibility through tactical human resource administration: Journal on Human Resource Management, 21, 3, 243-255

Becker, B. (2011). Bridging Micro and Macro domain. Personnel Differentiation and deliberate Human Resource administration. Journal on Management, 37, 2, 421-428.

Brown, P. (2011). Strategic planning as forthcoming process. Taylor and Francis Publication. Journal on Organization Studies, 32, 9, 1217-1245.

Christopher, H. (2011). A Strategic Decision construction for Innovation Outsourcing. International Journal on Innovation executive, 15, 5, 899-930.

Greenwood, M. (2011). International Human Resource Management. Theoretical and Strategic Advances. Journal on Corporate Governance, 36, 1, 214-250

Heisman, J. (2011). Building organizational capacity. Strategic management in higher education. Studies in Higher Education, 36, 7, 213- 260

Herbert, H. (2011). Strategic Orientations in executive Literature. Three looms to Understanding the contact between Market, knowledge, capitalist and Learning Orientations. International Journal on Management Reviews, 13, 2, 199-217.

Jansen, J. (2011). On competition and the strategic management on intellectual property in oligopoly. Journal on Economics and Management Strategy, 20, 4, 1043-1072.

Jones, H. (2011). The pressure on Top administration Team's Corporate ascendancy Orientation on Strategic restitution Trajectories.  The Longitudinal examination on imperial Dutch Shell. Journal on Management Studies, 48, 5, 984-1014

Meier, M. (2011). Knowledge Management in Strategic Alliances. A Review on Empirical Evidence. International Journal on Management Reviews, 13, 1, 1-23.

Perrot, B. E. (2011). Strategic issue administration as modification catalyst. Journal on Strategy and Leadership, 39, 5, 20-29

Rowley, J. (2011). Towards a planned place brand-management model. Journal on Marketing organization, 27, 458-476.

Segar, P. (2011). Innovative Strategic administration. The Case on Mumbai uptown Railway coordination. Journal on  Decision Makers, 36, 1, 214-250

Torres, L. (2011). The Implementation On tactical administration in confined Governments. An International Delphi Study. Journal on Public Administration Quarterly, 35, 4, 216- 230

Travis K. (2011). Middle Managers' tactical Role in the commercial Entrepreneurial development. Attention-Based belongings. Journal on Management, 37, 6, 1586-1610.

Ying, B. (2011). Sustainable Development and Long-Term Strategic Management. World Future Review, 3, 2, 230-265 

Stock Listing and Valuation research

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Stock Listing and Valuation

Name

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Introduction

 The Pound Land Corporation is a public limited company. The organization operates in the retail industry. The organization was founded in 1990, April.  The founders of the organization were Dave Dodd and Steven Smith. The headquarters of the Pound Land Corporation is in England. The organization has 450 retail centres. The co-founder of the organization is David Dodd, (Michael, 2010). The chairman of the Pound Land Corporation is Colin Smith. The CEO of the Pound Land Corporation is Jim McCarthy. The organization offers grocery products, consumer products and electrical products. The organization reported revenue of 642 Million, (Baker, 2009). The operating expense for the Pound Land Corporation was recorded to be 16 million.  The profit of the Pound Land Corporation was 11.8 million. The employees of the organization were 10020.  The Pound Land Corporation wants to offer their stocks to the London stock exchange market. The stocks are valued at 700 million pounds. The organization has focused the organizational investment plan to originate from the cash flow. The IPO is expected to market the beginning of the end of the private equity ownership for the majority of the shareholders.

1.1. Scope

            The discussion will assess the reasons for the Pound Land Corporation to seek a stock market listing. The assessment of the different valuation techniques for the London stock exchange market will be assessed. The analysis will look at the different approaches that can be applied in the measurement of the management’s support for activities.

1.2. Purpose

 The discussion offers insight on the different stock valuation methods that can be applied in the assessment of the Pound Land Corporation. The evaluation will look at the assessment of the different approaches that will generate the operation of the organization.

1.3. Thesis

The Dividend Discount model is the best for valuing the organization’s stocks

Discussion

2.1. Stock market listing

 The stock market listing supersedes the reason of realising capital or providing a market its share. The Pound Land Corporation offered the stock for listing due to the following reasons. The first reason is for the capital growth. The stock exchange offers the opportunity for the investors and the Pound Land Corporation to increase their control and capital.  The management will be able to attain the overall finances that will increase its competitive advantage in the market.  The second reason is the corporate profile elevation.  The management will have increased publicity to the different stakeholders of the organization. The focus on the different issues of management will allow the increased assessment and auditing of the organization.  The other reason is the improvement of the company’s valuation.

            The Pound Land Corporation invests in the processes due to the institutional investment.  The investment or listing of the stocks increases the organizations acknowledgement by investors. The different stock brokers will be able to assess the different requirements that assure the desires of the organizational approaches, (Zhang, 2010). The management will be able to enrol and encounter with shareholders that have expertise and influence of capital.  The Pound Land Corporation will focus on the assessment of the trading platform.  The management will be able to trade its shares in the stock exchange market, (Lee, 2011). The entry into the London stock exchange will assure the generation of the different tasks that increase the profitability and competence of the Pound Land Corporation.  The other reason for the Pound Land Corporation to enter in to the market listing is the following, (Zhang, 2010). The management can reassure the customers and suppliers on the overall methods that will offer the improvement of the financial and business strength. The management can assess the operations through the assessment of the venture approaches that assure the success of the organization.  The venturing into the business online will require the overwhelming idea for the hearing of the profitable approaches that assure the effectiveness of the business.

2.2. Valuation Techniques

2.2.1. Dividend Discount Model

 The dividend discount model tests the intrinsic value of stock.  This model is the best for the comparison of the nominal growth rate for the economy and the establishment of the dividend payout policies.  The model offers the estimation of the stock in the Pound Land Corporations that is consistent to the payment that can be afforded and accumulated in the process.  This price represents the current value of the revenue streams.  The model incorporates the following assumptions for a valuation.  The rate should be in a stable growth that is based in the area and size that the corporation serves and is regulated, (Baker, 2009). The other assumption is that the stock exchange market wills not all the Pound Land Corporation’s stock to grow to extraordinary rates.  The Pound Land Corporation will be expected to be in stable leverage for the different activities that will be required to be performed.

             The model is analyzed through Gordon Growth Model.  The management will require the investors to purchase the stocks that she expected to obtain from the two types of cash flow dividends and through the periods that were held on the stock.  The rationale of the technique is that the value of the asset and the present value of he expected future cash flow will offer the discounting rate for the overall riskiness of the cash flows, (Louse, 2009).  The obtaining of the expected dividends affects the making of the assumption with regard to the return on stocks that are measured differently with different models, (Lee, 2011). The method requires the valuation of the Pound Land Corporation that is in the steady state of operation. The method assumes that the form will increase its dividends rate at a value that will increase forever.  The model assumes that the Pound Land Corporation’s dividends and other earnings or measures of performance will grow at the same rate as compared to the other stock valuations.

             The limitations of the model are expressed to be the following. The model offers a simplistic and convenient approach for the valuation of stocks. The stocks are extremely sensitive to the inputs for the different growth rates, (Louse, 2009).  The wrong application of the model offers misleading yields and absurd results. The augmentation rate converges on the concession rate that is offered.  The model expresses that, as the growth rate increases, the cost of equity for the value per share will be approaching infinity. The growth rate tends to exceed the cost of equity. The value per share for the Pound Land Corporation will be expected to be negative.

2.2.2. Discounted cash flow method

The discounted cash flow model requires the definition and forecasting of the future cash flows and estimating the appropriate discounting rates. The assets offer the assessment of the value that aims at the current value of the expected future cash flows. The method offers two alternatives, (Baker, 2009). The alternatives are the free cash flow model and the residual income model. The free cash flow model focuses on the finances that are provided to the Pound Land Corporation as the cash flow from the different operations minus the capital expenditures. The free cashflow to equity is assessed for the analysis of the operations minus the capital expenditure and the net payments for the debt holders, (Lawson, 2011). This approach focuses on the principal and the interest paid.  

             The free cash flow method looks at the present value of the future cash flow forecast.  The worth of the equity is the current value. The value is subtracted from the market value of the outstanding debt. The presentment value of the future cash flow equity is discounted through WACC. The discounted rate for FCFE offers the cost of equity for the Pound Land Corporation through the analysis of the required rate of return for the equity, (Baker, 2009). The management can assess the dividends from the cash flows that are paid to the stockholders. The cash flows are placed at the desired distribution levels.  The method looks at the cash flow that is available to the Pound Land Corporation from the common equity holders after the operating expense, principal payments and interests are paid to the Pound Land Corporation.

             The discounted rate determination assures the assessment of the discount rate that is applied for the analysis of the present value for the future cash flow. The risk premiums are required to be analyzed.  The premium involves the compensation requirement for the risks that are measured and are relative to the risk free rate, (Baker, 2009). The required rate of return assures the minimum return is required for the investors to invest in the asset. The cost of equity focuses on the assessment of the required rate of return on the common stock, (Michael, 2010).  The discounted cash flow can be accessed through the application of the following CAPM formula.

2.2.3. Asset based valuation

 The asset based valuation focuses on the value of the asset for the price that are offered through the different organizational audits.    The valuation focuses on the asset, market or the income approach.  The asset approach assesses the asset net of liabilities. The market approach compares the business from the recent transactions of the organization.  The income approach assesses the measurement of value through the conversion of the streams that are expected for the economic benefits. The asset based method assesses the financial position of the organization for the business, (Lloyd, 2009). The assessment focuses on the tangible assets for the organization, asset and goodwill and the worth that other people will pay for the activities.  The management can increase or decrease the values of their assets through the overall price that is provided. The asset evaluation method assesses the balance sheet to identify the financial condition for the organization.  The balance sheet assesses the assets, liability and the capital invested. The assets comprise of all the valuable things that a corporation owns, (Baker, 2009).  The net worth or the owner’s equity focuses on the quantity that is injected in the businesses. The idea of the balance sheet is that the owner’s equity equals the assets minus the liabilities. The assessment focuses on the cost basis and the market basis.

Analysis

 The best approach to implementing will be the Dividend discount Model.  The method offers an approach for the valuation of stocks that are based on the dividends that they pay. The model helps the investors to assess what the dividends mean. The method is simple to calculate and does not engage a lot of technical calculations.  The discounted cash flow method has the flaw of understating the value of the balance sheet assets.  The basing of the valuation on a forecasted discounted assures the perception of the business to be perceived as riskier.  The projections of the organization discounted cash flow method offers minimal guarantees, (Lloyd, 2009). These were the reasons for not using the discounted cash flow method.  The reasons for not using the asset valuation are due to the probability of understatement for the firm’s value due to the aggressive strategies of taxable income. The asset valuation overlooks the value of tangible or intangible assets through the reliance of the potential future growth.

Conclusion

In conclusion, the Dividend Discount model is the best for valuing the organization’s stocks.   The dividend discount model tests the intrinsic value of the stock. The discounted cash flow model has the flaw of focusing on the present value of the future cash flow forecasts. The asset based valuation, on the other hand, summarizes the position of the organization.  The reasons for the firm to become listed in the stock exchange was to increase visibility in London Market, assess the firm’s index eligibility, assure the institutional investment, assess the market support and assure the well regulated and fully automated marketplaces.

Reference

Baker, H. (2009). Liquidity and Stock swap Listing: Journal on Financial Review, 25, 2, 231-249

Lawson, C. (2011). The Effect of compensation Methods on Risk repugnance: Journal on Economics, 39, 3, 249-260.

Lee A. (2011). Forecasting linear dynamical systems Appling subspace methods. Journal on Time Series Analysis, 32, 5, 541- 590

Lloyd, W. (2009). Exchange Listing and extent: Effects On surfeit Returns. Journal on Business Finance and Accounting, 16, 5, 675-680

Louse, C. (2009). Cross-Listing and effective Performance: data from Exchange-Listed American Depositary proceeds. Journal on Business Finance and Accounting, 36, 99-129.

Michael L. (2010). Corporate Political donations and Stock proceeds. The Journal on Finance, 65, 2, 687-724.

Zhang, Y. (2010). Cross-listing and deal on the Domestic bazaar: substantiation from Canada-US Partial Holidays. Journal on Business Finance and Accounting, 35, 1245-1275.

Change Management Models essay

Change Management Models

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Abstract

            The failure of change management in different corporations has led to the need of identifying the overall changes that occur within the organization.  The objectives of the research were to discuss three change management models, analyze their similarities and differences and assess the need for change management.  The discussion section identified the following. The Levin’s Change Management Model was the easiest to apply due to the reduced number of steps for implementation. McKinsey 7-s Model offered the holistic change strategy for the organization.  The Kotter’s Eight step Model focuses on the preparation and enforcement of the changes within the organization. The research concluded that change management models offer vivid steps for change.

Introduction

The change management has been seen to affect different individuals in organizations.  There are five principles that should be implemented in change management. The first principle is the realization that people will behave differently to the proposed changes. The fundamental needs for the organization allow the meeting of the desired interactions and changes within the organization. The other principle is the realization that change will result to a loss and gain for different individuals. The expectation of the employees should be realistic and the fear should be dealt with by the management, (Haughton, 2012).  The unrealistic expectations, transparency and control of the individual’s expectation are a requirement that is needed in the reassurance of the divergent issues that occur.

             This analysis offers insights to the diverse sectors and management on the implementation of three change models. The realization of the different requirements for the changes will assure the success of the firm with regard to the effecting of the desired rules and regulations.  The intense emotions, stress, strong dissatisfaction and loss of rational judgement can be curtailed through the implementation of the change models.

1.1. Scope

 The research discussion section will research the three different models that have been implemented in change management. The identification of the models will be based on their overall state of the application in the running of the management.  The analysis section will analyze the similarities and differences that the three models pose to the management.  The conclusion section will offer the explanation of the need for change management.

1.2. Objectives

 The purpose of the editorial is to offer insight to the management on handling the different changes that occur in the organization through change management.  The three objectives are as followed:

1.  To discuss three change management models

2. To analyze their similarities and differences

3. To assess the need for change management

1.3. Thesis

Change management models offer vivid steps for change

Discussion

 There are three types of change management model that have been satisfied the requirement to be supportive in the organization of the changes.  These change management models are as followed.

2.1. Model 1- Levin’s Change Management Model

            This model was created in the year of 1950. The inventor of the Model was Kurt Lewin. The model recognized the overall nature of people wanting to operate within a certain zone of safety.   The model emphasized the overall approaches that would provide the leverage for the changes to occur, (Hidalgo, 2012). The employee’s in the organization are required to have the understanding of the need for the changing. The quality of guidance and the dedication of the different sponsors was the other issue that was based on the analysis of the divergent events. The changing structure, education and training were required for the purpose of analyzing the divergent activities for the organization.  The effectiveness of the communication is required. The infrastructure was aligned swiftly and the management to make skills for the change agents.

The model comprised of the three stages of Unfreezing, transition and refreezing.   The unfreeze stage deals with the efforts to curtail the resistance to change. The need to overcome the tendencies requires a period of thawing and unfreezing that is initiated by the organizational motivation, (Hidalgo, 2012). The transition stage follows after the initiation of the changes.  The Corporation or Business moves the transition period to occur during a specified amount of time. The reassurance and adequate leadership are the necessary characteristics that are required to be enforced to the process successfully, (Hidalgo, 2012).  The refreezing stage occurs after a change has occurred. The Corporation or Business will offer automation and behavioural enforcement to operate under the stated guidelines.  This model has been applied due to its ease of application. The model has allowed the offering of the major changes.

2.2. Model 2- McKinsey 7-s Model

 The change management model offers a holistic approach for the management of the operations for the Corporation or Business. The model was created by Waterman Robert, Richard Pascal and Tom Peters.  This was in the year of 1978, (Lang, 2012).  The model offered four unique benefits to different Corporation or Business. The model is an efficient technique for the diagnosis and understanding of the organization. The management will be able to offer the guidance and direction to all the sectors of the organization.  The management allows the combination of the emotional and rational components for guidance. The components offer the integral parts that are to be addressed in the approach for change management. 

The model considered seven stages or issues that are required to be assessed. These included the Shared values, strategy, structure, systems, style, skills and staff.  The strategy stage requires the assessment of the top-to-down delegation, (Haughton, 2012).  The stage of the structure requires the management to offer the reassurance of the board’s critical mass for the change to occur, (Brown, 2012).  The systems or processes of the organization are required to be exclusive and bureaucratic. The identification of the process of change and authority will allow the growth of the divergent approaches that can be used to manage changes.  The style of leadership should allow the empowerment and facilitation of the different issues that are required in the assessment of the approaches of the management, (Brown, 2012).  The skill’s stage requires the reassurance of the support from the interpersonal, political and expertise department for the organization. The shared values allow the purchasing of the patient that is centred on the loyalty and trust.

2.3. Model 3- Kotter’s (Eight step Model)

 The model was created by a university professor by the name of John Kotter.  The changes lead to the campaign of the employees in buying into the changes after the leaders will have convinced the urgent need for the changes to occur, (Chandler, 2012).   The approach has been successful in offering the step by step model approach and offering the focus of accepting and preparing changes. The transition is regarded to be easier with regard to this model. The steps are as follows.

             The management will be required to increase the urgency for change from the management. The identification of the urgency will allow the identification of the divergent issues that necessitate the change. The second step is the building of the team that will be dedicated for the performance of changes. The third step for the management will be the creation of the vision for change, (Chandler, 2012). The vision will offer a guide to the activities of the Corporation or Business. The communication of the need for change will be the fourth step. The fifth step is based on ensuring that the employees are empowered with the ability to change their activities. The creation of the short term goals helps in the achievement of the divergent issues that affect the organization, (Haughton, 2012). The seventh step will be an increase of persistence with regard to the required information.  The last stage is the management’s formulation of policies and guidelines that make the changes permanent.

Analysis

 The three models are used to offer the approaches for changes in the organization. Different institutions can choose any of the models for the purpose of the change.  The similarities and differences of the models are as follows, (Wiseman, 2012). All the models acknowledge the importance of communication in the effecting the desired changes for the management, (Chandler, 2012).  The administration of the institute is required to work on effective communication before effecting the desired changes in the organization.  The ease of communication allows the ease of deploying new skills to the critical areas for the firm.  The management is able to take a little time to communicate with employees.

             All the models agree that the management’s leadership plays a crucial role in change management.  The leaders of the different departments are required to have low levels of anxiety for the effective change implementation, (Wiseman, 2012).  The behavior of the management, like emotional stability, will impact the effective changes to the management.  The action orientation, confidence and transparency are the different traits that were required for the successful implementation of the change management models.

 The disparities of the change models are as follows. The Lewin’s model is seen to be the easiest with regard to the management of the changes, (Lee, 2012). The seven S models and the Kotter’s (Eight Step model) involve the application of numerous steps that have to be implemented.  The Lewin’s model is less complicated than the seven S models and the Kotter’s (Eight-Step model).  The ease of the application has led to the increased application by different Corporation or Business.  The model allows the managers to be able to compare the differences that occur with regard to the changes.  The Lewin’s Model and the Mc Kinsey Model can easily skip the steps. The Kotter’s model will be a failure for a skipped step.  The Lewin’s model is considered to take the shortest quantity of moment as compared to the other models.

The McKinsey 7 S model requires the effective methods for the understanding and diagnosing the changes that have been understood by the organization. This assures the providence of guidance for the organizational changes.  The Lewin’s model and the Kotter’s model don’t focus on the change management holistically, (Lee, 2012).   The model is or beneficial than the others since it considers the emotional and rational components that affect the running of the Corporation or Business.  The model requires the focus on certain items while leaving out the other departments. This limits its operation as compared to the other models.

The Kotter’s eight step model has allowed the skipping of the advantages for the model. The model assures the provision of ease for the easy step-by-step model, (Chandler, 2012).  The focus on the steps requires complete commitment to the changes as compared to the other models.  The model allows the preparation of the employees for the definite changes that will occur in the performance of the definite activities.  The transition is considered to be easier to allow the dealing with time.

Conclusion

In conclusion, change management models offer vivid steps for change.  The implementation of the change management allows the reduction of resistance, stress, dissatisfaction, stability and intense emotions.  The need for transparency, inclusion and control will offer the identification of the divergent issues that affect the operations of the organization.  The loss of the rational judgement assures the identification of the divergent nature of activities and operations within the management.  The editorial was proficient in discussing the three change management models.  The models were Levin’s Change Management Model, McKinsey 7-s Model and Kotter’s Eight steps Model.  The analysis offered the identification of the similarities and differences of the three models. The similarities of the three models were based on the need for effective communication and leadership. The differences acknowledged the following. The Levin’s Change Management Model was the easiest to apply due to the reduced number of steps for implementation. McKinsey 7-s Model offered the holistic change strategy for the organization.  The Kotter’s Eight step Model focuses on the preparation and enforcement of the changes within the organization.

References

Brown, H. (2012). Managerial Accidents: A Systemic reproduction of Production versus fortification. Journal on Management Studies, 49, 1, 52-76

Chandler, J. (2012). Movement and combination in controversy: Gender, supervision and Academics in England and Sweden. Journal on Gender and Organizations, 19, 1, 52-70

Haughton, G. (2012). Post-political spatial development in England: a catastrophe of consensus: Journal on Transactions or the Institute of British Geographers, 37, 1, 89-103

Hidalgo, A. (2012). Innovation supervision techniques and advancement degree: modernism progression in service organizations: Journal on research and development Management, 42, 1, 60-70

Lang, L. (2012). Agency presumption, Institutional compassion, and Inductive analysis: Towards a Legal standpoint. Journal on Management Studies, 49, 1, 223-239

Lee, K. (2012). The control in Organizational information Creation: A re-examine and Framework. Journal on Management Studies, 49, 1, 240-277.

Wiseman, R. (2012). Towards a community Theory of Agency: Francis and Taylor Publication: Journal on Management Studies, 49, 1, 202-222