WORKBRAIN CORP Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

WORKBRAIN CORP Case Solution

Imagine that you are Matt Chapman. Prepare a memo that recommends which strategy Work brain should pursue and why.

Work brain Corp., a Toronto-based company, was the main supplier of workforce management programming. The company's objects helped clients with an extensive work power to enhance operational profitability and accomplish huge cost investment funds. In April 2003, the company acquired Work force Logistics Inc. to improve the workforce management product offerings. With a specific end goal to expand the client base, extend the product offering and increase circulation channel, Work brain relies upon the previous particular vital acquisitions. Work brain operates in the business sector of workforce management software design.

As the CFO of Work brain Corporation (Work brain),the memo for the upcoming governing body meeting that should consider strategic plan should cover the following:

Organizational structures: It should include the culture and status quo of the company after any change takes place in the business.
Implement the development methodology at all levels (including Business arrangement): It encourages making strong relationships with stakeholders and uses the company’s capital for growth prospects after making appropriate budget for expenses.
Growth methodology: To construct the indexes which represent relevant benchmark and asset allocation tools.
Upper management supporting: Full support from the higher level of management such as in allocating the budget for a project unless it has some issues.

As a CFO,it is imperative to load up whether it is the time to consider a first sale of stock (IPO), assuming this is the case, in which trade shows that stock that should to be advertised. The company should also consider what financing choices are accessible (while keeping up the present endeavor financing course of action) and whether the company needs to raise cash by any means.

1. Discuss if the company even needs to raise money.

As analyzed in the case, the company needs to raise capital as it can be seen in the cash flows statement that the company is generating cash through enough sells to pay its expenses and overhead costs. The company is considering acquiring the workforce logistic software, which schedules schedule employee processes and enhances the staff product line by using the updated technology. Hence, this is a small acquisition, which would cost $3.8 million and in the near future the company can try to increase the customers’ base by using various distribution channels.

Chapman was sure that Work brain had the most grounded product offerings however, in order to achieve most of the market share, the company had to enhance its products, industry scope and circulation channels.

In order to do so, the company would require investing in sales representatives, innovative work, and presumably securing the company from reciprocal products, industry penetration and lastly, geographic scope. Chapman realized that this synchronous development on various fronts would require a great deal of money or financing.

2. Discuss what other financing alternatives are available:

The owners of the small businesses should identify the benefits of external financing while keeping in mind the end goal to subsidize or develop operations. Currently, the company is using the venture capitalist fund in which the investors identify the companies with promising development potential and offer to invest for a significant offer of the possession. Investment companies have access to the cash and expertise in developing the companies’ needs in order to achieve their maximum capacity, as investment firms can bring both capital and expertise to the business.

External financing comes in two distinct structures: the first is equity and the other is debt.(Hanks, 2016)

Alternative 1: Bank Loans

One of the essential sources of external financing for the company is bank loan. In this case, the company provides an application to the bank regarding the funds and loan or other budgetary foundation. The application includes the motivation behind the loan, the sum asked for and the data on the company's financial history....................

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WORKBRAIN CORP Harvard Case Solution & Analysis