Business Notes

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Principle stakeholders:

- Shareholders

- Customers

- Employees

- Government

Measures of success for each stake holder:

-

- Stakeholders

- Share price

- Return On Investment

- Dividends

- Liquidity – ability to pay debts in long-term or short-term (gearing)

- Communication and strategy performance

- Customers:

- Low price

- Good quality

- Variety, mass customisation

- Brand

- After-sales support

- Easy access to product

- Durability

- Delivery on time, fast, reliable

- Employees

- High salaries

- Job security

- Good pension provision

- Medical benefits

- Promotion prospects

- Perks – company car?

- Bonus

- Training

- Job satisfaction

- Communication on strategy

- Generous holiday entitlement

4.2) Divisional operating reviews:

Tobacco machinery Division

Packaging Machinery division

Scientific services division

Customers

Principle global tobacco companies

A diverse group

Mainly 3rd party packaging companies

Tobacco corporations (same as the tobacco machinery division) and also includes bodies such as the government department of health.

Serves multinational customers

Products

Machines, spares and related services

Custom machinery for packaging and processing applications. Helps customers develop and launch new products.

Special purpose machines unique to each customer and each product.

Supplier of quality control instruments and analytical smoke constituent capture machinery to tobacco industry.

SWOT Analysis:

Strengths:

- World wide- distributes and sells to many companies.

- It has a strong set of distribution channels and sites worldwide. This allows Limons PLC to position itself and penetrate new strategic markets which will bring about greater demand for its products for further penetration of existing markets

Weakness:

- Manufacturing fared less well, contracting for the third consecutive quarter. Largest decline was in basic metals, highlighting that steel makers are also struggling. Mechanical equipment also declined sharply due to the effects of the collapse in crude oil.

Opportunity:

- Customer spending should get some support from the introduction of the national living wage which is higher than the current minimum wage.

- In the US, domestic demand is set to strengthen as the improving labor market lifts private consumption

- Improvement in international trade between the UK and the EU. Estimated to boost the UK economy by £1.3 billion a year. Aims to improve trade and investment

Threats:

- Raising interest rates- main threat is a collapse in china triggering a major global downturn.

- Exports are set to weaken…. The recent weakness of commodity prices has hit emerging economies (that rely heavily on oil etc.) hard.

- Risks associated with the inflation being too low for too long

- The higher borrowing costs flowing from the FED, starting to raise interest rate triggers a wave of corporate defaults in emerging markets.

Porters 5 Forces:[pic 5]

- Threat of new entrants

- Substitutes

- Rivalry/competitors:

- 5 principle competitors

- C6 of 60%

- Suppliers

- Customers

BCG