Question

How would you align the three MNE Strategic Focus elements (Driving Growth, Funding Growth, and Best Place to Work) to the Revenue Formula. Please give at least THREE specific examples in your responses. Please be as detailed as possible.

Answer 1

To align the element of Driving Growth with the revenue formula, MNE should try to investigate and evaluate it's capital structure or the capital composition to ensure that the capital structure is facilitating and supporting growth at specific time period when it will prove most profitable for business with a specific production level and appropriate price strategy. Effective Capital structure will help increasing revenue instead of slowing it down or making the investments and production unfavourable or redundant. For example the proportion of borrowed funds to that of the owned capital should be appropriate enough to keep the risks moderate and at the same time should not lead to excessive sharing of ownership. In others words the properties of debt to equity should be kept effective enough to facilitate growth as more equity will lead to sharing of more ownership among more shareholders curbing growth, and at the same time more debentures or debt will result in paying more interests which also acts as hurdle in planning for long term growth. The price of the products can be controlled more when share of ownership is less, this choosing right capital structure is required to

The Funding growth element of MNE should align with the Revenue formula so that the funds are raised from most economical and reliable sources which will help in keeping cost of production low and are invested in most profitable and Maximus return producing sources which will help in keeping prices moderate and genuine. . For example the sources of raising funds should be chosen in a manner which will facilitate funding growth. The creditors should be paid on time, focus show be on increasing credibility or credit score sonas to attract new fund providers and then these funds should be invested in such assets or resources which will produce maximum return. Such as providing career train in to employees who are going to stick for long, or choosing best option between renting, borrowing ir owning a machinery depending on its requirement so that expenses ate reduced and revenue is increased.

With respect to aligning the environment of MNE i.e (the Best place to work ) with the revenue formula, the workplace should facilitate self motivated and self driven labour who constantly committ to work for improving performance , positive culture with fair rules and effective infrastructure so that the production is conducted in such a way which will produce maximum revenue. For example facilitating a positive and healthy environment will ensure that continuous improvements are achieved which will maximize the revenue for business.

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