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An analysis, using relevant academic theories, of internal and external


organizational factors affecting CNH Industrial NV.

CNH Industrial NV business resources.


Internal and External factors affecting Forward Industries.

The internal and external factors affect the performance of the CNH both negatively
and positively. The external factors cannot be controlled by the management of the forward
industries, though it is a requirement for the management to adjust to the factors so as to ensure
they keep their organization going and on track. The management does not have influence to
the internal factors of the industries though their mode of solving the internal factors influences
the company future performance.

Internal factors affecting CNH

Leadership: this is the management of the CNH that are involved in decision regarding
budget, financing, marketing, sales as well as human resource. The forward industries
leadership have a clear vison over the company future, where it has a plan of achieving it set
goals through a quanitifiable way of measuring success. The management have developed the
kind of management structure that which enables employees of the industry to feel motivated
and empowered as the company meet the sales and production goals.
Employees: the CNH motivate it employees through training, encouragement and
support to meet their target and expectations. The management constantly ensures they
communicate with their employees, the managers constantly communicate with the employees
thus handling problems identified on time. This make employees feel valued thus mainatianing
high standard in the organization.

Mission Statement: CNH has a mission of becoming a global leader in the capital goods
with implement design, distribution, manufacturing, commercial as well as financial activities in
the international market. The mission statement of the CNH , drive the employees as they work
towards achievement of its mission ststament which is their driving gaol.
External factors that affect CNH.

Competitors: the CNH has it market competitors such as AGCO Corporation, which
manufacture and distribute agricultural equipments and other replacement parts, then
Jungheinrich ranks; which is the world leading company in material handling equipment,
warehousing and engineering department. Another major competitor of the CNH is the Deere &
Company; which manufactures agricultural, forestry and constriuction machinery. Then also
Caterpillar company is a threat to CNH as it manufacture contruction, mining equipment ,
natural gas and diesel engines, diesel electric locomotives and industrial gas turbines. Therefore,
CNH has to invent unique products which it competitors does not produce to beat the market
competition.
.
Customers: the customer behavior is unpredictable therefore, the cost of CNH
customers declined by 10.17% in the Q4 of the year 2019, and it cost of revenue grew by
1,62% in the same period though its revenue deteriorated by 5.48% every year. The CNH
customers includes chemical product customers, forestry and food product industry, metal
mining customers, customers in miscellaneous fabricated products industry, etc.
Economy: since it is difficult to control the economy the CNH has to respond to
indicators which trend upward and downward and adjust their operation according to the
economic changes. In times of recession the CNH has to tighten its budget , and eliminate some
projects so as to remain in the holding pattern . though during economic growth when there is
low interest rates the CNH respond by increasing it investment and launching of more projects.
2. An evaluation of the business resources in CNH that are used to meet its
organizations objectives.

The top management of the CNH industrial corpotate governance, has sustainability as it core
element, where the top management play active and direct role. The sustainability committee
and the governance are respeonsible for the strategic development . the executive council which
is the CNH highest decisison making body, do define the strategic approach, evalautae the
congruity of the sustainability plan of the company set objectives, as they regularly update the
sustainable performance of the company. The sustaninable unit is the part of CNH financial
department with responsisbility of promoting culture of sustenainability in the company.
Sustainability unit facilitate, thr continuous improvement process, and contribute to the risk
management and strengthen relationship of the stakeholders.

CNH industrial did it matrial analysis in 2013 so as to identify as well priotize it


environemental aspects which are considered to be the most relevant by the CNH company as
well as it stakeholders.this helped the company to assess the economic and environemental as
well as social impact on it corporate performance. The analysis indicated that the performance
of the CNH is promoted by the safe usage of the environemental impacts of the products, the
quality of its products, and the customer orientation as well as engagemet. The safeguarding of
the health and safety at work place promote the smooth running of the operations for
achievement of set goals and objectives.

3. An evaluation of key performance measurement systems of CNH Industrial NV.

The CNH industrial NV, has an organization structure which focuses on the five operation
segments which are: Agriculture, commercial and specialty vehicles, construction, powertrain,
and the financial services. This segments are supported by the globa; functions addressing the
key synergy as well development areas. The changes in the global executive committeemade an
announcement of the customer focus which foster entrepreneurshipas well as agility at the
segment level which is combined with the greater levelage on the global supply chain as well as
effort in the innovation. The CNH further expand it digitalization, alternative population system
and automation.

The CNH industrial corporation is evern facing the continuous acceleration rate and growth
in magnitude of the change, this is contributed by the digitalization, electrification, automation
aas wekll as servitization. The CNH has adapted changes and the revitalization in a continuous
way so as to meet the business challenges and ensure successful generation of the long term
value. The company management obtains feedback from its customers as well as channel
partners,and reviewing of the internal systems and processes. Also CNH do take close look on it
organizational structure and governance, where it finds the areas of excellence and identification
of opportunities for the improvement, example the organization ste up change, to new
organization structure.
The CNH operating segments are held responsible for the company global growth as well
as performance of its respective businesses, which increase the focus and the accountability . the
CNH operating segments have products line leaders, support function leaders and the brand
leaders. The product line leaders manages the company global products introductions, roadmaps
and the cost and quality of the products hence ensuring the consistency globally. the Brand
leaders manages commercial and market aspects such as ideal positioning of the leading brands
of the company. The CNH support function leaders , drives the segments processes and systems
such as information communication technologies, finance and many more.

The key performance indicators of the CNH industrial corporations are it five global
operating segments which are measured using the following strategies which are: Finance, M&
A and the sustainability, which oversees the consolidated financial performance and the controls
of the financial planning and analysis, treasury, tax, as well a risks management, mergers and
acquisitions and the CNH sustainability activities. The talent, strategy, ICT, and Digital manages
the CNH wide strategy, human resources activities and the internal stakeholders communication.
As it oversees the CNH information and the communication technology infrastructure and
driving the development of the processes, services as well as the business models. Technology
help in management of the company technological programs with strong focus of the areas in the
company such as automation and the electrification. Supply chanin of the CNH industrial
corporation help in coordination of the CNH procurement and manufacturing as well as ensuring
the quality activities of the leverage scale, best practice sharing, optimization of the network, and
continuous application of the four concepts of the industry. High market growth, CNH industrial
corporation performance is measured using it expansion of the market, in countries such as Asia,
Middle East and Africa (AMEA) as well as Soutrh America. The company is able to manage it
regional sales, distributing the business activities across it five market segmensts, as it manage
the Company strategic alliance and the joint venture. The aftermarket solution, help to ensure
technical services, and also ensures there is excellence in the services across the oprating
segments. As the profit or loss are responsibilities of the respective segments after market team
ensures there is accelerated development and deployment of the innovative aftermarket concepts.
CNH industrial NV is identified as a global leader of the capital goods sector, this is due
to the establishement of the industrial experience , different products, and the global penetration
in countries.

4. An explanation of the financial analysis techniques used by CNH Industrial NV.

CNH industrials NV , uses SWOT analysis and the company corporate finance report to
analyse it financial performance , which covers the company structure as they contain all the
information and dat about the company. The financial analysis is composed of the CNH
structure, producst, and CNH services. The CNH financial analysis help outlines the intelligence
of the competitors, the analysis of the company major internal and external factors that affect the
CNH industrial NV through SWOT analysis.

The CNH industrial NV SWOT Analysis.

Strength of the CNH industrial CV.

This is an internal strategic factor of the CNH industrial NV. Which has been idenitified
as the leading organizations in the industry hence having an advantageous place in the market.
The company is therefore, able tyo protect the market shares in the existing market as it penetrate
in the market. Some of the strength of the CNH industrial CV are as follows:

Strong brand portfolio; the CNH has invested in developing a strong brand portfolio,
strong free cash flow; which provide help in expansion of the company projects. The company
has a successful trac records that help in development of the new products, and innovation of the
products. The company has skilled workers who are trained for effectiveness, as the comoany is
investing highly in training as well as development of its employees so as to have a motivated
workforces with the required skills. The CNH uindustrial NV, has a superb high performance in
the markets, as it has developed expertise when entering any new market thus ensuring success is
attained. This expansion in the market promote CNH inductrial in building of the new revenue
stream as well as economic diversity risk cycle in the operating market. The CNH industrial
maintains a successiful record of track in the integration of the complimentary firms by mergers
and acquisition. This make the company to successfully integrate more technology in the
company so as to build a reliable chain of supply.the CNH industrial NV, got a community
dealer which is a string one, through building of culture to the distributors, and the dealers where
the dealer help in promotion of the CNH industrial NV and train the team of sales acting as an
investment, this gives the sales team knowledge to explain to the company products customers
on the how to extract and maximize products benefits. The company offer high level of
customer satisfaction, as there is dedicated customer relationship department of management
which is able to attain customer satisfaction of high level, as it provide brand of high quality to
the potential customers.

CNH industrial NV Weaknesses.

This are the areas that CNH industrial NV need to improve on, so as to create a competitive
advantage in the market as well as attain strategic positioning. The CNH has limited business
success; this is indicated by the company being unable to move in the segments of the products
as the culture grows. The organization structure of the CNH is compatible only with the present
model of business implying there is limitation of expansion of the segments of the products. The
net contribution percentage of the CNH as well as the ratio of profitability are less than the
average in the industry. The research on the investment and development of the company is less
in the growing market polayer in sector. This is because the CNH has not been able to compete
with it competitors who are ahead of it in innovation. The products sold by the CNH offers a
market gap as it lack choice giving the competitors an opportunity of investment. the CNH
inventory on daily bases is higher when compared to that of it contenders, this make the CNH to
raise extra capital for the channel investment. the CNH requires to invest more on the
technological growth so as to integrate all it processes as the investment in technology has not
been identified as the mission of the CNH industrial NV.

CNH indurstial NV Opportunities.

This is an external factor in strategies. Where there is a decline in the transportation cost,
due to decrease of the price of the shipping thus lowering the cost of the products of the CNH
industrial NV , hence offering an opportunity to the CNH to boost it profitability thus gaining the
profitability of its market shares. The increase in the spending of the customers, as well as the
economic uptick, and growth rate of the industry if it is less is a great opportunity to CNH
industrial NV, as it capture more new customers hence, increasing it market shares.the CNH is a
competence organization where it conduct research in GE healthcare hence helping in
development of the good oil drilling machinery. The digital technology offer an opportunity of
practicing various strategies of pricing at the market to the CNH industrial NV. Also online
channel customers, has brought in new channels for sales to the CNH industrial NV, thus the
company is open for future improvement. The low inflation rate ensures the market is stable thus
enabling credit of the low interest to the CNH industrial NV customers. The green drive of the
government offere procurement department in CNH industrial NV an opportunity of the
production by federal contractors of the government and the state.

Threats faced by CNH industrial NV.

Profitability of the CNH industrial NV is threatened ny the rise of the price of the raw
materials. Since the CNH industrial NV operate in many countries it is therefore exposed to the
fluctuation in the volatility of the political climate in most of the global markets. The CNH
industrial NV is faced by the problem of shortage of the workforce which is skilled , is a threat to
the profit growth in the market of the CNH industrial NV. The law of liability is totally different
in diferent countries and CNH industrtial NV is exposed to the different claims of liabilities as
there is various changes in market policies of the different countries. The local distributiors who
are highly growing is a major threat to the CNH industrial NV. This is because they are bringing
high competition in the market. In China there is an increase in level of pay in that workers are
paid $15 per hour thus pressuring the profitability of the CNH industrial NV. The company is in
threat of the of facing various law suits in different market due to standards of the products
required in the market.

5. An application of financial analysis system and techniques to assess the financial


performance of the final accounts of CNH Industrial NV. For comparison you
should assess the annual reports of at least two of the business organizations that
you have studied.

The net revenues of the CNH industrial NV.

The company reported a revenue of $25.778 million in year 2019, which was an increase
of 4.3% from the year 2018. The agricultural revenue of the CNH industrial NV and that of
contruction tools were recorded to be $16.00 million in 2019.the construction equipment
probelems faced by the CNH industrial NV as well as translation of currency impact led to
offsetting the high demand of agricultural products of the CNH industrial NV.the commercial
and truck revenue was $8.752 million in year 2019 which was a decrease by 1.9% from the
previous 2018 . due to recovery of Europe and the Euro value more so in Q4 in 2019 and
LATAM increase of the volume was offset due to unfavorable transalation of the currency.

CNH industrial NV cost of sales.

In 2019 the cost of sale for CNH industrial NV was $20.89 million which was a decrease
compared to 2018 which recorded a value of $20.93 million the construction product and
agricultural cost of slaes lowered due to efficiency in manufacturinfg and the agricultural tools
high volume , thus resulting in growth of the absorption of the products. The commercial vehicle
and truct cost of sales rised due to Latin America economies as well as transaction negativity
exchange of the Brazil , Turky, and Russia and Powerstrain caused by the high volume.

. selling, administrative , and general cost.

The selling cost of the CNH for the year 2019 was $1.033 whioch was equivalent to 4%
of the net revenue. This was an increase of about 3.1% in the year 2018 which recorded a value
of $1.00 million this is a combination of marketing, sales and advertising of the personal product
cost. The general as well as the administrative cost of the CNH was $1.197 million in year 2019
which was equivalent to 4.6% of the net revenue , this was 1% increase for 2018 which recorded
a figure of $1.185 million. This is a combination of the adminitration expenses not attributed on
sales , development, research and production. Selling, administrative and general cost is said to
have increased , this is a reflection of the cost of labor, bad debt which is related to uncertainity
of the econiomy of the Sourthern Europe for the Truck as well as Commercial vehicles, this is
offsetted by the fovarable impact of transalation.

Trading loss/ profit

The CNH industrial NV. Profit of the trading, for the year 2019 was $1.985 million that
is 7.7% net revenue this was a decrease form the value recorded in the year 2018 , which was
$2.063 million which was a figure of 8% net revenue. This was contributed by the exchange rate
which was a negative value. The volumes as well as the positive mix of the agricultural and the
construction tools segments the Euro led to offsetting of the powertrain and capacity utilization.
The construction as well as the agricultural erquipments increases in the trading profit by $1.783
millions in the years 2019 which was a 14.8% increase from the year 2018 as it recorded a 11.1%
. this was a reflection of rhe pricing positivity , mix as well as industrial productivity .

Disposal investment loss /loss

The net loss of the investment disposal, was $ 38 million in year 2018 this was
contributed by sales in the contruction machines in 2019, the CNH industril NV made a record
of a loss of $19 million on the investment sale, this was in adherence of the issued ruling which
was attributed by the trabsaction price.

Cost

The cost of restructuring was $40 million in the year 2019, in comparison $166 million in
2018. In both periods the cost was attributed by the commercial vehicles and trucks ,segments.
This was aconsequence of the rationanlization action of the firefighting ans truck business in
the year 2018.

Unusual income / expenses.

The unusual expenses of the CNH industrial NV was $58 million in the year 2019 ,
which was a reflection of the expenses associated to the termination of the joint venture with the
Barclays group as well the nbusiness financial service group. The rationanlization cost of the
suppliers startegies , in year 2018 the CNH industrial NV incurred expenses of $13 millions, this
was contributed by the supliers strategic rationalization.

CNH industrial NV operating profit / Loss


The CNH industrial NV, recorded profit from it operations of $1.86 million in 2019 an
increase million fro m the $1.846 million in 2018. There was a $78 million decrine in profit of
trade which was offseted by the low net unusual expense.

6. An explanation of the role of culture in creating a strategy in CNH Industrial NV.


Culture help to determine the success of the CNH industrial NV. The implementation of strategies
depend on the following two unique elements: sustainable and building of an organizational culture
which facilitate as well as accelerate the change, and the foster of individual accountability in executaion
of the startgey ownership in level of agenecy, this is in senior leadership form the administration
assistant.

The culture construction which leads to flexibility as well as understanding and acceptance of the
roles in change is essential. Creation of the culture in the organizationwhich is open for change is the
work of the major leadership committee which communicate on the strategic priority oftenly and
effectively. Everybody in the organization contribute to the success of the CNH industrial NV. As they
are indivindually accounatable . an effective association netween the members of the team, and the
employees commitment to the individual plan of action as well as open communication by the senior
management always lead to an environment that make employees feel that they are accounted for their
opinions. The atmosphere created by all participant in the cultural activity help to create an improved
environement for the execution of the strategies as well as higher performance. The senior
management focuses on the workers or teams with as framework that contribute to the creation of the
strategies. The following result is achieved as a result of culture contribution:

Culture make the strategy to look clear, thatbis, the strategic goals and vision is made clear as well
as inspired, culture in an organization ensure that the strategy is made to be real; this is by translating
the strategy to the execution living planwhich of great concern to people. The strategic plan is made to
happen by the culture of the CNH industrial NV, this is because culture capitalizes on the behavior
benefivial that exist as it is capitalized by the culture, by the culture taking action on adjustment of the
behavior in the long term, as it enable the alignment of the CNH industrial NV culture. The creation and
reinforcement of culture in change lead to a strategic success as it make everyone accountable for the
implementation of the strategy.

7. An anykysis of the role of change management in CNH Industrial NV.


8. An analysis of the role and effect of culture on change management in CNH
Industrial NV.
9. An evaluation of key financial theories of CNH Industrial NV
10. An assessment of strategic implementation techniques using balanced scorecard and portfolio
management tools.
11. An application of stakeholders analysis for your chosen business organization
Analysis of significance of stakeholders analysis
Analysis of business expansion methods and their impact on stakeholders
An application of stakeholders analysis to your chosen business organization
Return and risk computation

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