Teves, Aira Gwen T.

BSTM – III

CASE STUDY AND ANALYSIS

List of effects regarding to the business of Mr. Miguelito on having no written plan strategy”

 Lack of a strategic plan negatively impacts the attitude of an organization’s team.

Employees who see aimlessness within an organization have no sense of a greater
purpose. People need a reason to come to work every day.
 The workers will be aware of their disorganized environment, and will
suffer stress and frustration because they will have difficulty executing their assigned
tasks.
 Undervaluing your company
 Paying too much in capital gains or taxes
 Not playing an active role in the exit process
 Not being in control of what happens to your company
 Not being able to have the financial security you expected
 Creating a burden for your family.

Explain the value of share planning as a requisite to strategic business growth.

 Private companies with value-sharing plans carve out about 11% of the company
equity on a weighted average basis, either as equity-denominated long-term incentive
pools or as change in control business.

 Value-sharing plans show a very high variance among private companies. A survey
data published in January 2012 by WorldatWork/Vivient illustrates that roughly one-
third of companies have no such plans, one-third share up to 10%, and one-third share
over 10% (sometimes over 25%).
 Value-share decisions are contextual and unique to the company, depending on a
broad set of factors such as stage and characteristics of the business, intensity of war
for talent, pay philosophy, and capital structure.
 Public companies average about 11% median value-sharing amount, according to a
study by Frederick W. Cook & Co. (technology: 15.5%; retail: 11.6%; manufacturing:
8.9%; financial: 8.2% as of 2010).

Source: https://acgcapitalblog.com/2014/09/24/importance-value-sharing-business-succession/