UFO Moviez-gentle disruption Case Solution
Factors To be considered:
There are some factors which is to be considered:
- Amount of initial investment is to be limited.
- Limited number of employees is to be send for training.
If these factors are considered positive so UFO growth performance will be better.
Â Â Â Â Â Â Â Â Â Â Â UFO is also working in Hollywood movies and trying to expand more and more. This company had also made an acquisition with valuable digital screen private limited in the year 2014.
For a new strategy firstly we have to look who is going to be targeted. UFO target market will be cinema owner, distributors, and advertising agencies. Secondly is what will be their specific needs. The Needs for UFO in this option will be growth expansion and product awareness in other sectors.
For this option, the CEO should have to consider five elements of strategy articulation which includes Vision, Value, Validation, Voice, and Vibrancy.
Â Â Â Â Â Â Â Â Â Â Â It tells about a long term goal in future. CEO should have to reconsider its vision and reimagine its plans. He has to consider that is desired outcomes will be achievable after this option or not.
Â Â Â Â Â Â Â Â Â Â Â It shows importance or worth of business. Some common business values are innovation, uniqueness etc. If employees got well trained in abroad so they can build a new innovative product in their home country which creates its value for other distributors. This will create opportunities for new distributors to sign a contract with UFO.
Â Â Â Â Â Â Â Â Â Â Â It refers to find correct and accurate information. Cost and benefit analysis is to be done correctly so that accurate results is being disclosed after application of this option. For this an experienced accountant has to be assigned this task to get perfect output.
Â Â Â Â Â Â Â Â Â Â Â It is concerned with above mentioned three Vs. In this teams which have been made for this option, they have a chance to discuss the assumptions, projections, and their own beliefs or own opinion. If opening a new digital movie system in other sectors gets successful there will be more benefits which a company is going to enjoy.
Â Â Â Â Â Â Â Â Â Â Â It tells how strategy comes into action. How plans can be implemented. How goals can be achieved while adopting this option.Â Â .
Â Â Â Â Â Â Â Â Â Â Â Internal fit focus on employees is connected internally with their HRM and organizational system. This also tells that how they are useful to each other. If their technology strengthens and opens it into other sectors, it can enhance the coordination among employees and other senior staff. They might get some extra incentives if this plan is successful and they can also receive promotional benefits.
External fit related to those strategies, activities, and programs that organization develops to enhance the external environment. If these all components are designed accordingly in this option their growth expansion will be possible, and their performance can be strengthened accordingly.
Â Â Â Â Â Â Â Â Â Â Â For initial years UFO is going for some expansion and facing investments problems. No investors are willing to invest for early years because the profitability of the company is showing negative results.
Â Â Â Â Â Â Â Â Â Â Â Financial ratios in the year 2010 show negative results, as net profit of a company is negative. It shows a negative net profit margin which is -14%. Their debt ratio at the same year shows 80% which is indicating a high riskiness for the company. Its return on equity also shows a negative trend because debt percentage is more than equity.
Â Â Â Â Â Â Â Â Â Â Â In 2010, no investors were agreed to do investment in this firm. For that, they took another way. After some time a Uk based company agreed to invest in the company, and they made an investment of around $22 million…………………..
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