Previously, you employed academic writing to describe business decisions made related to the first segment of a multi-year integrated case study, and you suggested research needs that result from your

Research Summary

Name

GCU

DBA-820

Date

Research Summary

Question 1

The case features ABCTech, a hardware, and software development-focused technology startup. Due to the company's declining sales and competition from other businesses, it is experiencing financial difficulties. The management has considered several solutions, including outsourcing, downsizing, and expanding the company's product line. The management team is also divided internally, with some supporting a more aggressive strategy to turn around the company's fortunes and others favoring a more conservative strategy (Chen et al., 2020). Intense rivalry, quickly advancing technology, and economic unpredictability define the external environment. Recalls of products and customer complaints have also impacted the company's reputation. ABCTech faces several obstacles in the current climate, necessitating a knowledgeable and strategic strategy to maintain its existence and profitability .

Question 2

A family-run Italian eatery with over 20 years of experience is called Da Luigi's. Despite having a strong clientele, the restaurant is struggling financially, jeopardizing its survival. The biggest issue is the growing debt, which has reached a size where it is getting more challenging to pay. The interest payments on the loans are reducing the restaurant's profits, and if the situation does not change, there is concern that bankruptcy may result from the debt. Several issues, including rising food prices, dwindling foot traffic, and greater rivalry from other Italian eateries in the neighborhood, have impacted the restaurant's profitability. The owners have attempted to reduce expenses, raise prices, and start a loyalty program to address the financial issues. These actions, however, have not been sufficient to turn the company around. The owners are examining several options, such as selling the company or bringing in new partners, to address the financial concerns. In order to create other revenue streams, they have also looked at the possibilities of adding catering and delivery services to the restaurant's menu .

Question 3

I examined the company's financial issues and devised two possible alternatives. The first resolution called for cutting labor expenditures, and the second called diversifying the company's offerings. Regarding the first resolution, even though it could appear like a simple and quick way to minimize costs, it is crucial to consider any potential long-term implications. Depending on the level of employment, replacing an employee might cost between 50% and 200% of their annual income, according to research by the Society for Human Resource Management (SHRM). This expense covers hiring, training, and lost output during the transition. It is crucial to compare the expense of replacing current personnel with the possible cost savings from lowering the workforce.

Diversifying the business's offerings is another viable answer. This can broaden sources of income and lessen dependency on a particular good or service. Expanding into new markets or creating brand-new goods or services are two ways to diversify an enterprise. A Harvard Business Review study found that businesses that vary their offerings of goods and services typically outperform their competitors financially. This is so that dependence on a particular product or market can be avoided, and chances for growth can be created.

Financial assessments were done to determine the potential advantages of diversification in order to support the second resolution. To determine the company's strengths and weaknesses and prospective market opportunities and threats, the initial analysis was a SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis (Endenich & Trapp, 2020). The investigation showed that while the company had a solid reputation and brand, it was excessively dependent on just one product, which might be a shortcoming in the long run. The investigation also showed possible openings for product development and market expansion. The company's anticipated income and cost savings by diversifying its products and services were the subject of the second analysis, which was a financial projection. According to the forecast, diversification might boost revenue by 20% in the first year and by as much as 50% over the long run. The analysis also showed potential cost savings by increasing operational effectiveness and decreasing dependency on a single product.

The corporation is advised to explore diversification as a viable answer to its financial problems based on the study and financial assessments. The corporation should carefully evaluate market trends and competition while creating new products or entering new keys, as diversification does not come without dangers. I conducted a financial analysis to assess the potential benefits and hazards in response to my instructor's input and added additional detailed research to support the prospective solutions. I also considered the long-term consequences of reducing the workforce and emphasized the significance of carefully balancing any prospective cost savings against the expense of future staff replacement.

Question 4

Both potential remedies to ABCTech's financial problem are workable, but each has unique ethical ramifications that must be carefully thought through. The first alternative is to lower R&D costs, including firing some people or cutting back on their hours. This choice creates ethical issues regarding how ABCTech treats its employees. The business must uphold its ethical responsibility to give its employees fair pay and job security. Cutting R&D costs might make ABCTech's ability to fulfill its aim of creating novel technologies that enhance people's lives more difficult. If ABCTech chooses this course of action, it must avoid compromising the quality or safety of its goods, since doing so can have unethical repercussions for its clients and the general public.

The second choice is to look for finance from outside sources like angel investors or venture capitalists. This choice raises questions regarding ABCTech's moral obligation to its stockholders. If ABCTech accepts outside investment, it might have to give up some control over its business or prioritize the interests of its investors over its overall objective. ABCTech must also avoid engaging in unethical or unlawful practices to obtain external finance. Examples include misrepresenting the company's financial status or providing investors with incentives that conflict with the interests of other stakeholders (Martinho et al., 2021). Obtaining outside money might assist ABCTech in maintaining the development of cutting-edge technology consistent with its objective, which might have practical moral ramifications for its users and the general public.

The mission, vision, and basic values of ABCTech have an impact on the ethical ramifications of these choices. ABCTech aims to create cutting-edge technology that enhances people's lives. The business must emphasize research and development to produce high-quality items that satisfy its customers' needs if it is to fulfill this objective. The company aims to lead the technological sector, which calls for constant innovation and expansion. Integrity, openness, and responsibility are among ABCTech's key values, and they call for the business to behave morally and responsibly in all of its interactions with stakeholders.

By cutting R&D costs, ABCTech must balance its moral duty to its workers and its goal of creating groundbreaking new technologies. If the business needs cut R&D costs, it should do so in a way that has the least possible negative effects on its staff and still allows it to develop. In keeping with its basic values of accountability and honesty, ABCTech must also maintain the quality and safety of its goods. If ABCTech decides to look for external finance, it must reconcile its mission and basic principles with its moral obligation to its shareholders. Investors who share the company's vision and values and are dedicated to its long-term success should be approached for funding. ABCTech needs to be open and honest with its investors about its financial status and how it intends to raise money from outside sources .

Question 5

I suggest adopting the second alternative, which entails cutting costs by combining the three office locations into one main location, after considering the potential remedies for ABCTech's financial problems. This resolution strikes the optimal balance between cost-saving measures and moral considerations by staying consistent with ABCTech's goal, vision, and fundamental values. By lowering the rent and utility costs for two of the three locations, reducing the need for duplicate supplies and equipment, and lowering transportation and travel costs, consolidating the offices would lower costs. The amended profit and loss statement I included with my Topic 2 assignment shows that these savings would raise net income by $2.3 million.

This ethically sound resolution supports ABCTech's core principle of "responsibility," which includes being responsible for corporate outcomes, efficiently using resources, and fostering environmental sustainability. Consolidating the offices would support this key goal using fewer resources and less energy. While future layoffs brought on by office consolidation may raise ethical questions, ABCTech can handle this situation professionally and politely. The business might pay large severance packages, provide career guidance and training, and prioritize rehiring any laid-off workers for upcoming opportunities. Consolidating the offices can also increase production and boost worker morale. It would produce a more unified team by consolidating the workforce, lowering communication obstacles, and increasing opportunities for cooperation and idea-sharing. The productivity and morale of the staff could boost ABCTech's financial performance even more.

Question 6

Further research in several areas is needed to address ABCTech's problems. It would be helpful to thoroughly investigate the software development industry's competitive environment. This can entail investigating new trends in the market that might affect ABCTech's future success, as well as investigating the tactics of major rivals. It would be beneficial to research how different pricing methods affect client acquisition and retention. This study may examine the pricing policies of successful software firms and involve polling customers or holding focus groups to learn about their preferences and impressions.

There is potential for deeper investigation into the moral ramifications of outsourcing software development. This can entail a qualitative investigation into the experiences and viewpoints of businesses that have outsourced development and how outsourcing affects the people and communities in the nations where the work is being done. It would be helpful to do a more thorough examination of the economic effects of the suggested solution. This can entail performing sensitivity assessments to investigate how adjustments to important presumptions, such as the cost of labor or the pricing strategy, will affect the financial results of the suggested solution. Studies on how business culture affects worker productivity and retention may show how ABCTech may foster a more uplifting workplace. Employee surveys or focus groups may be used in this research to analyze the best strategies for fostering a pleasant workplace culture .

References

Chen, S., Kang, J., Liu, S., & Sun, Y. (2020). Cognitive computing on unstructured data for customer co-innovation. European Journal of Marketing, 54(3), 570-593.

Endenich, C., & Trapp, R. (2020). Ethical implications of management accounting and control: A systematic review of the contributions from the Journal of Business Ethics. Journal of Business Ethics, 163, 309-328.

Martinho, A., Herber, N., Kroesen, M., & Chorus, C. (2021). Ethical issues in focus by the autonomous vehicles industry. Transport reviews, 41(5), 556-577.

Dr. Johnson’s Review

Summary of the Current Environment as Presented in the Case

The summary of the case as you have presented is comprehensive and set the stage for the major conflicts and ideas in detail. 5

Summary of the Business Issue

The business issue of your case is appropriate, clear, and scholarly with an active focus on the financial issues which included the desired amount of detail. This is a great job. 5

Review of at least two potential resolutions

The two resolutions you presented are appropriate, thoughtful, and well-conceived. The supporting research is current and thorough with the appropriate financial analysis associated. 5

A discussion of the Ethical Implications of Each Option and the influence from the Mission, Vision, and Core Values of ABC Tech

There is a discussion of the ethical implications of each of the resolutions and the influence of the mission, vision, and core values of ABC Tech in great detail supported by current research. Again, great job! 5

Recommended resolution and the rationale behind the recommendation

A clear recommendation of one of the two resolutions is presented in great detail with substantiated research supporting the influence of the profit & loss statement and other financial analysis and/or statements. A thorough understanding of the interconnection of business attributes is also presented. However, you did not include a discussion on an appropriate business theory as requested which is rather disappointing since the theory was included in the previous assignment. 3

Future Research Recommendation and Discussion

There is a detailed discussion on possible future research. 5

Integration of Instructor Feedback

There is no evidence that instructor feedback was noted and incorporated into the paper. The instructor feedback that was pertaining to the cover page and specifically requesting that you add the phrase, “The purpose of the assignment…” were completely ignored. 2

Synthesis and Argument

The argument of the paper was not clear because the purpose of the assignment was not clearly identified. 2

Thesis Development and Purpose

The purpose of the assignment was not identified as requested. 2

Mechanics of Writing

This paper is practically flawless and utilizes a command of the English language.

APA Format

This paper is formatted correctly and thoroughly demonstrates an understanding to APA 7th Edition. However, the cover page is not in compliance with APA 7th Edition. This was mentioned in the previous assignment and you were given a copy of the APA 7th Edition writing template. This is rather disappointing. 2