DBN501: ABC Business Analysis - Capital, HRM & Leadership in NZ

This presentation provides a critical evaluation of ABC, a fictitious FMCG company operating in Auckland, New Zealand. It analyzes the company's capital structure, focusing on budgeting, equity valuation, and return on investment. The presentation also examines short-term finance options like trade credit and bank loans. Furthermore, it delves into ABC's human resource management practices, including employee resourcing strategies using online job portals and social media, employee development through training programs, and the importance of maintaining positive employee relations. The organizational structure is outlined, and the impact of the business environment, considering political, socio-cultural, and economic factors in New Zealand, is discussed. The presentation also highlights the significance of stakeholder relationships with customers, employees, and shareholders, and advocates for a participative leadership style with appropriate training programs to enhance leadership skills. The DBN501 presentation concludes by emphasizing the importance of capital, stakeholder relationships, and effective leadership for business success.

1. Introduction:
1.1 Objective of the presentation:
 To critically evaluate the capital structure of business along with highlighting the short term
finance
 To highlight the human resource management structure of ABC
 To understand appropriate style of leadership adopted by ABC for running their business
successfully
1.2 Brief overview of the selected organization:
ABC has started its journey in the realm of FMCG market. Around 20 employees are
primarily associated with the organization. The human resource managers always intend to hire
the employees who have enough skill and competency on that very specific field1. The managers
of this organization do not wish to show their cultural or religious biasness while maintaining
employee relation.
2. Finance/ Accounting:
2.1 Capital structure of business
Capital structure is the composition of long-term liabilities along with short-term
liabilities and common equity, which runs the business firm towards growth and success. The
ways on how ABC can make the capital structure of business are as follows:
 Make a budget for business plan
 Identify the value of equity that the company holds (calculate the total value of assets)
1 Barringer, Bruce. Entrepreneurship: Successfully Launching New Ventures, (2012). 2012.

 Work out on the return of investment that can be expected from the business
 Execute the entire process of business
2.2 Short term finance
The primary sources from where short time finance can be gathered are as follows:
 Trade credit
 Bank credit
 Customers’ advance
 Installment credit
 Loans from co-operatives
3. Human resource management
3.1 Employee resourcing
ABC in order to recruit the employees has focused to follow three major ways for hiring
the employees. Online job portals, social media advertisement and push notification are the three
major sources based on which the human resource managers tend to focus on hiring the
employees2. The success of a business organization is highly dependent on the performance level
of the employees. In order to fulfill the demands of employees the human resource managers of
this organization has decided to implement reward and recognition policy within the business
process in next one year.
3.2 Employee development
2 Wentzensen, Nicolas, and Sholom Wacholder. "From differences in means between cases and controls to risk
stratification: a business plan for biomarker development." Cancer discovery 3.2 (2013): 148-157.

With the current trend and demands of the customers, the business managers would have
to implement training and development session. This specific training session would help an
individual employee for developing their communication skill as well as professional skill.
Automatically, the employees would be able to make a balance between customers’ demands and
supply.
3.3 Employee relation:
In order to get the best performance from the employees human resource managers of this
organization would have to maintain effective employee relation so that employees can be
motivated towards the performances3. Managers should maintain an effective communication
with the employees so that they show their level of interest in performing well. The business
leaders should maintain participative form of leadership style with the help of which both the
employees and business managers can equally participate within the business process.
4. Organization structure:
In order to control the entire business process organizations should maintain a proper
organizational structure. ABC is the organization that has just started their journey in FMCG
market. The hierarchy that the business organization maintains as follows:
3 Haag, Annette B. "Writing a successful business plan: An overview." Workplace health & safety 61.1 (2013): 19-
29.

CEO
Human ResourceSales and marketing Finance
Marketing manager Human Resource manager Chief Finance executive
Sales executives Finance ExecutivesEmployees
Figure 1: Organization structure
(Source: Created by the author)
5. Business environment:

Before running the entire process of business, the experts should concentrate on three
environmental factors primarily. Political, Socio-cultural and economic factors leave a major
impact on the overall success of a business organization4. New Zealand is not a politically biased
country due to which business organizations have to face difficulties in running their business in
the soil of New Zealand. This particular country being economically advanced can target both
premium customer as well as low cost customers. New Zealand is constituted with the people of
diverse culture and religious backgrounds. Therefore, ABC should be flexible with variety of
products as well as services in order to draw the attention of diverse people.
6. Stakeholder relationship:
Among three most important stakeholders, the business experts should focus on
customers, employees and shareholders5. The business organizations would be able to achieve
the target based on the endeavor put on behalf of employees. On the other hand, the organization
would able to render enough profitability only when the customer would like to show their
positive outlook in purchasing the products6. On the other hand, based on the election of
shareholders the members of board of directors are selected. Therefore, in order to run the entire
business organization successfully the role of these three stakeholders play major role.
7. Team leadership:
7.1 Most appropriate leadership style:
4 Papadopoulos, Andrew, et al. "Using business plan development as a capstone project for MPH Programs in
Canada: validation through the student perspective." Journal of community health 38.5 (2013): 791-798.
5 James, Neil, and Amanda Gudmundsson. "The language of optimism: how entrepreneurs sell the sizzle in business
plan offer documents." ICSB World Conference Proceedings. Vol. 2. No. 1. International Council for Small
business (ICSB), 2012.
6 Blackburn, Robert A., Mark Hart, and Thomas Wainwright. "Small business performance: business, strategy and
owner-manager characteristics." Journal of small business and enterprise development 20.1 (2013): 8-27.

Participative form of leadership style is highly appreciated for maintaining a good
relation between business managers and employees7. With the help of participative form of
leadership style, the managers never intend to impose their own decision on the employees.
Employees have every right to share their own decision with the managers regarding achieving
the success of business.
7.2 Training program:
An effective training program can be organized based on which the leaders can improve
their skill for the purpose of controlling the entire process of business.
Leadership skills to be
improved
Justification Duration
Communication skill Communication skill can make a
leader more confident towards
the performances.
45 minutes
Decision making skill Leaders should know how to
make proper decision at the right
time
45 minutes
Managerial skill Leaders should know how to
manage the employee
performance so that they can
control the entire business
situation.
45 minutes
Body language Body language should be 45 minutes
7 Okolocha, Chimezie C., and Chika M. Ile. "Strengths of the business plan and industrial collaboration strategies in
the teaching of entrepreneurship in tertiary institutions in Anambra State, Nigeria." AFRREV IJAH: An
International Journal of Arts and Humanities 1.2 (2012): 246-261

maintained at the time of
communicating with the
employees
Handling crisis Leaders should know on how to
handle crisis
45 minutes
8. Conclusion:
In order to run entire business process capital is one of the most important resources
based on which success is highly dependent. The business experts have to maintain an effective
stakeholder relationship. Leaders should follow participative form of style in order to involve the
employees in decision-making process. An effective training and development session helps the
employees in improving their leadership skill and competency.

Reference List:
Barringer, Bruce. Entrepreneurship: Successfully Launching New Ventures, (2012). 2012.
Blackburn, Robert A., Mark Hart, and Thomas Wainwright. "Small business performance:
business, strategy and owner-manager characteristics." Journal of small business and enterprise
development 20.1 (2013): 8-27.
Haag, Annette B. "Writing a successful business plan: An overview." Workplace health &
safety 61.1 (2013): 19-29.
James, Neil, and Amanda Gudmundsson. "The language of optimism: how entrepreneurs sell the
sizzle in business plan offer documents." ICSB World Conference Proceedings. Vol. 2. No. 1.
International Council for Small business (ICSB), 2012.
Okolocha, Chimezie C., and Chika M. Ile. "Strengths of the business plan and industrial
collaboration strategies in the teaching of entrepreneurship in tertiary institutions in Anambra
State, Nigeria." AFRREV IJAH: An International Journal of Arts and Humanities 1.2 (2012):
246-261.
Papadopoulos, Andrew, et al. "Using business plan development as a capstone project for MPH
Programs in Canada: validation through the student perspective." Journal of community
health 38.5 (2013): 791-798.
Wentzensen, Nicolas, and Sholom Wacholder. "From differences in means between cases and
controls to risk stratification: a business plan for biomarker development." Cancer discovery 3.2
(2013): 148-157.