abp project

Abstract

This thesis consists of five parts. The first part demonstrates understanding of executive compensation and a number of models which clarify the aspects of this significant element in corporate world. The managerial power approach imposes itself as the current compensation structures are a product of managerial power and have the least intention to create shareholder value. Meanwhile, the principal-agent theory and the arm’s length model claims that an increase in the number of incentives raises the risk premium demanded by the executives, causing higher pay. Executive pay structures should be arrived at after arm’s length bargaining between the directors and the managers. Lastly, the pay-for-performance systems are not observed in making remuneration decisions. Thus, reforms on executive compensation are required to align the interests of executives to those of the shareholders and other investors. The reforms shift the goals of the management from short-term risky investment decisions to sustainable long-term corporate performance.

The second part of the thesis explores the e-business model and sheds light on few emerging innovative online businesses including M-Kopa Solar, ClickBank and Avtech. The Osterwalder's Business Model stresses that infrastructure, resources, cost structure, activities, value proposition, customers groups and segments, revenue streams and channel strategy are all significant elements of the e-business.

The third part is concerned with creating and managing a global value chain, with case application on Nestle. The company is organized into few geographical regions: Zone Americas (AMS), Zone Europe (EMENA), Zone Asia, Oceania, and sub Saharan Africa (AOA). Hence it adopts a transnational structure that focuses on management processes and culture. Implementing the global value chain is challenging from the perspective of exploiting the opportunities for new product development that aligns with changing customer preferences and/or changing government legislation, Whilst Nestle has favoured internalization as a growth strategy its large geographical spread, the need for more agile product development and cost effective manufacture, has driven partnership and licensing arrangements, which reduce its control over process methodology and quality; exemplified by product recall.

In conclusion, the final part of the thesis is related to business planning. The market for wallpapers keeps growing as there is a surge of people in need of wallpapers as opposed to the traditional paint. Thus, Unique Wallpapers Ltd came in to fill the gap in the shortage of the supply occasioned by the rising demand. Specifically, the firm specializes in the manufacture of bespoke wallpapers for its customers. Unlike in the past where consumers chose from a variety of ready designs, the company gives its customers the privilege to dictate the design they want. The firm has been in existence for one year now, and through its clear strategic plans, it envisions to expand and become the leading manufacturer and supplier of wallpapers in the United Kingdom by 2028 and beyond.