Case Study assignment: Tad OMalley Case
The provided case study is related to the decision making where O’Malley needs to select the best job for making the future success. As per the given case, it is suggested to O’Malley that he should select 3F AG firm to make the future secure.
At the same time, this case also identified several uncertainties that need to be highlighted to make successful in this field by O’Malley. Moreover, the firm 3F AG has included different valuation issues which are also provided to O’Malley so that it can secure their job with these kinds of issues.
O’Malley needs to focus on the different organizational issues so that it can inform the partner about the influence of these issues on decision making.
After analyzing the case study of O’Malley, it is identified that Tad should choose 3F AG as investment strategy because it has a different opportunity for the future growth.
It provides cost-saving opportunity, multiple strategies for growing cash flows to O’Malley for the upcoming empire fund. In addition to this, it is identified that the coming homing funeral services investment is not highly appropriate for O’Malley. Yet, it provides strong cash flow business with a strong team of management (Levy, 2015).
But recently, some unethical practice rumors listen about the company that restricts O’Malley to involve in this business. As per coming homing funeral services, the potential revenue growth is 2.7% due to price insensitivity of industry.
On the other hand, O’Malley also has the opportunity to choose Yellowstone Cattle Bank. It is because it includes fast-growing market, improvement in profit, and strong management team (Aharoni, 2015).
But as per the assignment instruction it cannot be selected for O’Malley as an investment opportunity. So finally, it is evaluated that 3F AG is the best investment opportunity for O’Malley.
As per the case, it can be stated that there are some uncertainties that to be needed to highlight in case of evaluating the company 3F AG such as influence uncertainty, industry failure, economic conditions, etc.
Influence uncertainty– There is a need of highlighting by O’Malley on the impact of inflation on 3F AG’s potential profit margin. This highlight can be effective for him to identify the level of uncertainty that is associated with the inflation rate (Masini and Menichetti, 2012).
The influence uncertainty can be useful to identify the impacts of increased inflation on the potential cash inflows of 3F AG. It will be helpful to determine the true market value of the company for making effective investment decisions.
Industry failure– Another uncertainty is the industry failure that to be needed to highlight. In case of 3F AG, O’Malley should focus on the industry’s future.
As per the current scenario, the industry is favorable for the company but there is a need for estimating the potential performance of the industry (Seiler et al., 2012). The past and current performance of the industry is helpful for O’Malley to identifying expected risks that are associated with 3F AG.
Economic conditions– The economic environment also provides the uncertainty to a business which should also be highlighted for the success. Apart from this, O’Malley should identify the economic conditions of the country to highlight the uncertainties.
The economic conditions can play a fundamental role in the growth and success of the business as well as it can also be a reason for the failure of a business (Spender, 2014). The economic condition of a country plays an essential role to evaluate the investment decisions.
After the identification of these factors, it can be said that O’Malley should also highlight the uncertainties that are related to the abilities of 3F AG to fill the desires of the customer, market stock performance, change in technology as well as the environment of the global business.
So, it can also evaluate that the consideration of uncertainties in the evaluation investment choice can become much impertinent to enhance the quality of investment assessment report (Didonet et al., 2012). It will be beneficial for O’Malley to obtain the success in his first task during the new job.
There are some valuation issues that should be pointed out by O’Malley such as future market share of the company, unfunded liabilities of pension, regulatory changes, the structure of the reorganized entity, access to capital markets, etc.
Valuation is very important for the company to provide direct investment in the industry (Macve, 2015). O’Malley should consider investing in securities to save the money from bankruptcy and make future save.
As per the overview of 3F AG, it is identified that the valuation method is not identified by the company that creates the issues that how O’Malley will identify their efficiency.
The valuation summary of the company shows that it has an inductive value in the range between $1B and $1.2B. The valuation range of 3F AG is at the bottom end of the sales multiple as well as the top end of EBITDA multiple.
The main issue in the valuation is that there was a broad grouping of valuation multiples in the similar transactions as well as quoted companies (Bolman and Deal, 2017). The variation in the valuation may influence different factors like:
- Quality of the production mix
- The positioning of the products
- Customer relationship
- Level of strategic interest
- Management quality
- Attraction as a platform for consolidation
The quality of the production mix can effect on the valuation. In which, high quality of the products has more valuation as a comparison of low-quality products.
The positioning of the products is also helpful for an organization to create increased valuation of the products. In order to create valuation of the company, there is a need for effective customer relationship. But, the customer relationship of the company is low as a competitor that creates the valuation issue of the company.
In addition to this, 3F AG also not has effectiveness in the strategic interest that can become a reason for less valuation of the company. It is identified that low level of strategic interest can create valuation issue that can affect the profession of O’Malley (Classen et al. , 2012).
Similarly, the management quality and attraction can also reduce the valuation of the company that may be harmful to O’Malley business investment decisions. So it can be said that there are valuation issues in the 3F AG that O’Malley should point out.
An organization faces different problems in the working environment that may influence the performance of the employees as well as make effective decisions by the management.
As per case of Tad O’Malley, it is identified that there are several organizational issues that may affect the decisions of the partners. The organizational issues provide negative effects to make correct decisions. In this, it is identified that 3F AG has several organizational issues that can influence the partners’ decisions.
- Supplier concentration issues– From this issues, it is identified that this issue may restrict the trade interest in purchasing the products of 3F. There is a conflict for the company cannot sell its products to customers if the company has not identified the needs of the suppliers.
The company must focus on their suppliers to influence the partner’s decisions so if any adverse change in relationships with the key suppliers of the company (Seiler et al., 2012). In addition, if there is a loss of supply in key products of the company, it could have an unfavorable effect on the business.
- Nature and stability of suppliers– At the same time, it is also identified that the nature and stability of suppliers can also affect the partner’s The nature and stability of suppliers can play an important role to identify the company’s risk.
- Highly competitive market– It is also identified that 3F AG has a very highly competitive market that reduces the profit margin of the company. In addition to this, the partners also make the decisions on the basis of the margins, if the company has high margin then they will take positive decisions.
- Lack of industry experiences– The other organizational issue is the lack of industry experience to the employees that can also influence on the decisions of the partners.
In this, it is recommended to the employees should focus on their industry experience to make effective decisions (Macve, 2015). In order to reduce the influence of the lack of industry experiences of the organizational employees, the company should focus on the development of effective decision process.
- Losses of opportunity– The organization has less experienced people who make slow decisions on any issues and requirement. It defines that the company is losing the opportunity to make effective results. So, it can be said that losses of opportunity are an organizational issue that may influence the decisions of the partners.
After the following analysis, I have identified that this case study is based on job decision making. This study helped me to develop the understanding of this case and the problem-solving skills.
It is identified by me that the contents are the master material to timely complete the work with the group. The group members helped me to develop the understanding of the case and what decisions should we take in the inverse situation.
Whether I was working on a problem and also answering questions concerning with this case study then I realized that the content is most important to complete the report easily (Masini and Menichetti, 2012).
As per this learning, I have also learned that the group working is the best option to make an effect as well as an adequate understanding of the case and provide reliable decisions.
In this case, it is identified by me that O’Malley must choose 3F AG to dome the job and save the future with the attractive growth opportunities. It is because 3F AG is an organization that has more beneficial opportunities as a comparison of other suggested companies.
As per the study, I have recognized that Coming Homing Funeral Services is also a good company that can also provide an effective increment to the company but there are some ethical issues for the employees so it should not be selected by O’Malley.
But at the same time, Yellowstone Cattle Bank was another choice that should not be selected by O’Malley to get effective success in the business environment. So, it is suggested by me to O’Malley that it should focus on the 3F AG business to select as the best investment opportunity.
I have realized that group members distribute the work ineffective way so that the work is completed in given time-period. It is because the issues and conflicts that a person can get in the task can be resolved by others help and he or she can complete it in given time period.
As per the research of Bolman and Deal (2017), it is identified that budget is very important to complete a research task and the group members help to complete the task in a given time period with the provided budget.
During completing the study, it is identified by me that my team can complete the study in the provided budget and this challenge was completed by building a team. During this study, I have developed my teaching reflective skills by teaching a point to the group members which was much hard as competitive others.
From the above study, it is concluded that 3F AG is the best opportunity for O’Malley that can be helpful to be successful in the professional life. In addition, it is also concluded that in order get success, O’Malley should identify different uncertainty that the organization can face in the company.
Moreover, it is also concluded in this study that company has several valuation issues that can impact the professional life of the employees, as well as the organizational issues, can also affect the business and employees life.
Aharoni, Y., 2015. The foreign investment decision process. In International Business Strategy (pp. 24-34). UK: Routledge.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership. USA: John Wiley & Sons.
Classen, N., Van Gils, A., Bammens, Y. and Carree, M., 2012. Accessing resources from innovation partners: The search breadth of family SMEs. Journal of Small Business Management, 50(2), pp.191-215.
Didonet, S., Simmons, G., Díaz-Villavicencio, G. and Palmer, M., 2012. The relationship between small business market orientation and environmental uncertainty. Marketing Intelligence & Planning, 30(7), pp.757-779.
Levy, H., 2015. Stochastic dominance: Investment decision making under uncertainty. USA: Springer.
Macve, R.H., 2015. Fair value vs conservatism? Aspects of the history of accounting, auditing, business and finance from ancient Mesopotamia to modern China. The British Accounting Review, 47(2), pp.124-141.
Masini, A. and Menichetti, E., 2012. The impact of behavioural factors in the renewable energy investment decision making process: Conceptual framework and empirical findings. Energy Policy, 40, pp.28-38.
Seiler, M.J., Seiler, V.L. and Lane, M.A., 2012. Mental accounting and false reference points in real estate investment decision making. Journal of Behavioral finance, 13(1), pp.17-26.
Spender, J.C., 2014. Business strategy: Managing uncertainty, opportunity, and enterprise. USA: OUP Oxford.