Analysis of Equity Finance, Borrowing, and HR Planning Strategies

This report provides an analysis of equity finance options, focusing on individual private investors and venture capitalists, and recommends venture capitalists as the best option for Sam Bridgewater. It explores sources of short-term borrowing, including installment credit, commercial banks, trade credits, and customer advances. The report also examines the impact of New Zealand’s political, economic, and socio-cultural environment on businesses like PFC. Furthermore, it outlines the objectives of the Human Resource Planning process, including demand forecasting, supply sustainment, and meeting organizational requirements, and discusses absence management, selection, flexibility, and retention strategies. Finally, the report identifies key stakeholders for PFC and emphasizes the importance of self-management and leadership skills for the CEO and managers to steer the company toward success.

Running Head: ASSESMENT TWO 1
Assessment Two.
Course Details.
Name.
Date.

ASSESSMENT TWO. 2
Two broad types of Equity Finance
The types are Individual Private Investors and Venture Capitalists.
Individual Private Investors works in the sense that individual investors are approached to
invest in the business. These persons include friends, colleagues and family. The advantage of
this means since it involves individuals they already know and are likely to have goodwill in
promoting the business. These category of individuals however may not have the financial
capacity needed by the business.
Venture Capitalists on the other hand are bigger companies that have the capability to
invest largely in a business. Their interest is mainly on ventures with a potential to grow. Their
financial capability is therefore a blessing to any business seeking investment (Pilbeam, 2018).
Best Equity Finance option to Sam Bridgewater.
I would propose Venture Capitalists as the best Equity Finance option to Sam. This is
because Venture Capitalists have a greater investment ability than Individual Private Investors.
Venture Capitalists also offer tactical advice to companies they have invested in. This Equity
Finance option is also instrumental in creating networks crucial for a firm’s development.
Sources of short-term borrowing.
1. Instalment credit.
Selling goods to customers who will pay for the goods in instalments is a good source of
short-term funds as the customers will pay higher for the product. This keeps a constant influx

ASSESSMENT TWO. 3
into the business accounts increasing the receivable income into the account. The receivable
income is a good factor for an account if loans are sought for.
2. Commercial banks.
The banks grant traders credit which may be in the form of loans, cash credit, overdraft
and discounted bills. The advantage of bank credits as a source of short-term borrowing is that
the banks can always be expected to have the needed amount for borrowing.
3. Trade credits.
Trade credit is credit granted by suppliers to traders in that traders buy from the suppliers
and but do not pay until the expiry of the credit period say 60 days.
4. Advances.
Customer advances raise short term finances. This occurs when a firm dictates that the
customer makes a payment in advance of the purchase or provision of service. It is very helpful
when the orders ordinarily take long to process. The company this way gets funds to use in day
to day operations such as in delivering its orders (Diamond, and Rajan 2001).
New Zealand’s political, economic and socio-cultural environment factors.
A company such as PFC is expected to be affected by economic, political and socio-
cultural factors that are in New Zealand. In the political perspective, the business is affected by
the recent election and the uncertainty that followed the election. Majority of businesses do have
the expectation that the political climate will affect them. PFC therefore, is set to be affected by

ASSESSMENT TWO. 4
the uncertainty in the political climate in the country. Economic factors also do affect the
company. The growth of New Zealand’s economy is key to the growth of PFC in New Zealand.
The growth enables the purchasing power of New Zealand’s citizens to be increased. Growth in
purchasing power will help to improve the sales and consequently benefiting the company. In the
socio cultural perspective, the PFC develops products from natural food making the company to
get more sales given the preference for natural foods and therefore having their sales improved
(Wolch, and Dear 2014).
Objectives of the Human Resource Planning process.
Demand for labor can be predicted by Human Resource Planning process. The number of
workers a company may require in the near future can be projected. This prognosis is helpful in
any company’s long term management strategies (Armstrong, and Taylor 2014).
The continuous of supply labor is better sustained. The process helps identify the
proficiencies needed to meet the company’s labor demand. The market availability of these
required proficiencies are also identified.
Meet the company’s organizational requirements. Planning is instrumental in mapping
out the staff to specific tasks. This develops skills, retains and develops employee talent. A
framework for shifting staff around the business is provided for in the event the prevailing
conditions change (Aswathappa, 2013).

ASSESSMENT TWO. 5
Human Resource Plan
Absence management strategy. The Planning Process helps meet the objective of
forecasting the demand for labor. It also helps put in place a time frame within objectives can be
met.
Selection strategy. The proficiencies required by the company can be identified by a plan
that is based on competency. A competent workforce is instrumental in achieving the business’s
goals.
Flexibility and Retention strategy. The flexibility of employees within the organization
helps in easier shifting staff around in the face change in conditions. The retention strategy helps
keep the staff that have developed certain skills in certain tasks (Bratton, and Gold 2017).
Stakeholders for the PFC and their importance.
The customers. These are the consumers of the products and services of the PFC. They
are important in keeping the business running as purchases provide the business with the highly
required finances for staff remuneration, business profits and day to day operations.
A functional management. The management keeps operations running as there is order
within the organization. Duties are effectively assigned by a functional management.
The staff. The employees of the business are useful in provision of the services. They
mainly directly interact with customers hence are important in public relations.

ASSESSMENT TWO. 6
Important self-management skills for PFC CEO.
The important skills include time management, organization skills, decision making and
confidence.
Time management. For the success of PFC, Sam Bridgewater needs to master the art of
being in time. It the employees appreciate the time factor and a satisfied customer that gets
deliveries on time.
Organization skills. A well-organized CEO will have the advantage of easy location of
needed paperwork. The employees may also find this a likeable skill and embrace it with ease.
Decision making. A firm CEO in making pertinent decisions is a blessing to any
business. Proper study of decisions made in other contexts may go a long way in helping Sam
improve decisions. With this skill the CEO gains the confidence of his staff.
Confidence. A CEO that is confident about their abilities will win the trust of his
employees (Cottrell, 2015).
Leadership skills for a manager to steer the company to success.
Leaders in an organization or a business set up require positive skills to assist them in
interacting with employees. The skills required include proper communication, motivation of
employees, creativity, delegating and positivity (Schoemaker, Krupp, and Howland 2013).

ASSESSMENT TWO. 7
A success oriented manager has to communicate appropriately to the workers and the
external stakeholders to the business. Clear and proper communication will drive the employees
towards achieving the set goals. Clear communication will also help avoid instances of confusion
between the employees. The manager must be willing to listen actively when employees
communicate to him.
For a business to succeed, the manager must motivate the employees to achieve desired
results. Constant motivation of the employees will enable the organization to be inspired to work
towards achieving of set goals and objectives of the business. Motivation can take different
forms which include paying of incentives to the workers and rewarding of workers who achieve
set obligations.
Proper delegation to the people with the right skills will immensely contribute to the
success of the business entity. The manager has to delegate extra duties after proper selection of
the employees and being satisfied that the employees will deliver their best.
A manager with a positive attitude will create a happy working environment and a
healthy one for that matter. The manager can create a positive atmosphere through sharing with
the employees on their plans and dreams that they hope to achieve and even what they plan to do
on vacation. The morale of the staff members will be consequently raised and they shall always
have a positive atmosphere in the work place. The employees will end up putting in more effort
at work resulting in the success of the business.
Creativity is a fundamental skill that any manager should possess. A leader will always
have to make critical decisions that may not have a clear answer and as such their creativity is

ASSESSMENT TWO. 8
what will help them to achieve making of correct decisions. Approaching of problems in non-
traditional ways is what will be of help to the business.

ASSESSMENT TWO. 9
References
Pilbeam, K. (2018). Finance & financial markets. Macmillan International Higher Education.
Wolch, J., & Dear, M. (Eds.). (2014). The power of geography (RLE social & cultural
geography): How territory shapes social life. Routledge.
Aswathappa, K. E. M. A. L. (2013). Human resource management: Text and cases. Tata
McGraw-Hill Education.
Armstrong, M., & Taylor, S. (2014). Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
Bratton, J., & Gold, J. (2017). Human resource management: theory and practice. Palgrave.
Cottrell, S. (2015). Skills for success: Personal development and employability. Macmillan
International Higher Education.
Schoemaker, P. J., Krupp, S., & Howland, S. (2013). Strategic leadership: The essential
skills. Harvard business review, 91(1), 131-134.
Diamond, D. W., & Rajan, R. G. (2001, June). Banks, short-term debt and financial crises:
theory, policy implications and applications. In Carnegie-Rochester conference series on
public policy (Vol. 54, No. 1, pp. 37-71). North-Holland.