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    Walden International

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    Walden International, the proposed new parent company of Able, is a large multinational conglomerate. It is an extremely financially well-run company, with an emphasis on short-term, quarterly results. In fact, it is Walden's key value proposition to its stockholders that each quarter's sales and pretax profits will be greater than the prior year's corresponding quarter. Walden has a 35-year record of consecutive quarterly increases and absolutely every other corporate objective is subordinate to extending this streak indefinitely. Walden works very quickly re-engineering and consolidating the common functions of its acquisitions into its own administrative services. These functions include accounting, legal, engineering, and customer service. The savings that are realized through the elimination of these common services are usually passed on to the bottom line. Sometimes, if a good case can be made, those funds are reinvested in the new subsidiary.

    One of the biggest obstacles to the implementation of a successful business strategy is the clash of value systems between a parent and subsidiary. These differences often manifest themselves in conflicts between the various levels of strategy: corporate, business, functional, and operating. Below are a number of the sticking points between Able and Walden. Discuss the steps you would take to address the issues.

    * How would you reconcile Able's need for building market share (long-term strategic business objective) with Walden's drive for year-to year quarterly increases in sales and pretax profit (short-term, corporate objective)?
    * Walden's success metrics of head count control, inventory management, inventory turnover, and days sales outstanding can be inhibitors to growth vitally needed by Able. What would you do to moderate these functional objectives and make them work for Able?

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    Solution Preview

    The response addresses the queries posted in 1021 words with references.

    //Before writing about the Business and Corporate Strategy, we have to first of all discuss about the Business Organization and its financial condition. We should know that Walden International is the large Multinational Company and its financial position in the market. The Organization has rendered the following services i.e. customer service, legal, accounting and engineering services So, firstly we will talk about the business under the heading of Introduction, for example: \


    Walden International is a large multinational company. The financial condition of the company is very well in the industry. The short term quarterly result of the company shows its good financial position. The stockholders of the company are getting an increasing return year by year. The sales and the profit of the company before tax are also increasing from the previous years. It has a record of the consecutive increase in the sales from last 35 quarters. The corporate objectives of the company also assist to maintain this series of improvement in the sales and profits. The company is currently looking to establish a new company Able as the subsidiary.

    The management of the company is also involved in common tasks of the common functions of administration services by applying re-engineering and consolidation. The common function includes the function of customer service, legal, accounting and engineering services. The elimination of theses services from the organization function causes a savings for the organization. These savings help to establish new subsidiaries for the organization. But the company is facing a problem to implement a successful business strategy for the parent and subsidiary.

    //Above we discussed about the Walden International, which is a large Multinational Company. As per the directions, we will talk about the business and corporate objectives that ultimately serve the Company's purpose i.e. high customer satisfaction. It mainly assists to turn its direction in the right way. I am providing a brief overview that, why the management of the Company formulates its strategies. You are free to add more information that you find suitable. I am just giving you an overview to make it ...

    Solution Summary

    The response addresses the queries posted in 1021 words with references.