Volta Financial

By: Raquel Esmenda

Point of View

Volta Finance Limited (the “Company” or “Volta”) is a closed-ended limited

liability company registered in Guernsey under the Companies (Guernsey) Law, 2008

(as amended) with registered number 45747. The registered office of the Company is

BNP Paribas House, St Julians Avenue, St Peter Port,  GY1 1WA, Channel Islands.

The Company is an authorised collective investment scheme in

Guernsey, regulated under The Protection of Investors (Bailiwick of Guernsey) Law,

1987. The Company's Ordinary Shares are listed on the Euronext Amsterdam Stock

Exchange and, in addition, on the premium segment of the Official List of the UK Listing

Authority and are admitted to trading on the Main Market of the London Stock

Exchange (“LSE”). Volta’s home member state for the purposes of the EU Transparency

Directive is the Netherlands. As such, Volta is subject to regulation and supervision by

the Netherlands Authority for the Financial Markets (the “Autoriteit Financiële Markten”

or “AFM”), being the financial markets supervisor in the Netherlands.

Statement of the Problem

 The present case aims to determine the performance of Volta Financial how they

cater their services to customers. Specifically, it seeks to answer the following

questions:

1. Based from the survey, what measures would be good indicators of an advisor’s

performance?

2. How could the brand be positioned to be more tangible and experiential so that

customers could be more confident in Volta’s quality and Volta would have more

obvious bragging rights about its brand?

3. What elements of financial investment assistance would classify as “core” and

what should be listed as “value added”? How could Volta distinguish itself from

other financial advisor firms by modifying their core or value added services?

Facts

Volta’s investment objectives are to seek to preserve capital across the credit

cycle and to provide a stable stream of income to its Shareholders through dividends

that it expects to distribute on a quarterly basis. Subject to the risk factors that are

described in the Summary Document below and in the Prospectus dated 4 December

2006 below, it seeks to attain its investment objectives predominantly through

investment in a diversified portfolio of structured finance assets.

The assets that Volta may invest in either directly or indirectly include but are not

limited to: corporate credits; sovereign and quasi-sovereign debt; residential mortgage
loans; commercial mortgage loans; automobile loans; student loans; credit card

receivables; leases; and debt and equity interests in infrastructure projects (the

“Underlying Assets”).

Volta’s approach to investment is through vehicles and arrangements that essentially

provide leveraged exposure to portfolios of such Underlying Assets.

In this regard, Volta reviews the investment strategy adopted by AXA Investment

Managers Paris (the “Investment Manager” or “AXA IM”) on a quarterly basis. The

current investment strategy is to focus investment predominantly on CLOs although

allocations to other structured finance assets will be used opportunistically. There can

be no assurance that Volta will achieve its investment objectives.

Objectives

The present case aims to determine the best distribution channels that Taza

Chocolate employed. Specifically, it sought to:

1. To identify what measure are best indicators of advisor’s performance.

2. To determine how the brand could be positioned to be more tangible and

experiential so that customers could be more confident in Volta’s quality.

3.To identify the elements of financial investment assistance that could distinguish Volta

from other financial advisor firms in areas of their core or value added services.
Decision Criteria

The Internal-External (IE) Matrix is a strategic tool used to analyze the working

conditions and strategic positions of the Taza, Chocolate. Primarily, the Internal

External (IE) Matrix is mainly based on the above internal and external factors to derive

a more suggestive model.

Internal External (IFE) Total Weighted Scores

Strong Average Weak

II III

IV Taza, Chocolate VI

(2.81,2.32)

VII VIII IX
Theory

Products and services are moved from businesses to customers and other

businesses through distribution channels. Channels of distribution, also known as

marketing channels, are a group of interconnected entities involved in making a product

or service available for use or consumption, such as wholesalers, retailers, and sales

agents. Distribution channels are simply one part of the larger idea of distribution

networks, which are the real, tangible systems of interconnected sources and

destinations that products transit through on their journey to end customers.

A basic distribution network consists of two parts, according to Howard J. Weiss

and Mark E. Gershon in Production and Operations Management: 1) a set of locations

that store, ship, or receive materials (such as factories, warehouses, and retail outlets);

and 2) a set of routes (land, sea, air, satellite, cable, Internet) that connect these

locations. Distribution networks can be divided into two types: simple and complex. A

basic distribution network is one that has only one source of supply, demand, or both,

as well as established transportation routes connecting those sources to other portions

of the network. The primary decisions for managers in a simple distribution network are

when and how much to order and ship, based on internal purchasing and inventory

concerns.
 Manufacturers and providers of many products and services employ a variety of

distribution channels. A personal computer, for example, can be purchased directly from

the manufacturer by phone, direct mail, or the Internet, or from a variety of merchants

such as independent computer stores, franchised computer stores, and department

stores. Large and small enterprises can also make purchases through alternative

channels.

The number of layers in a channel structure might range from two to five. The

most basic is a two-level system in which goods and services are delivered straight from

the maker or provider to the customer. Consumers can order products directly from the

manufacturer, and the manufacturer executes those orders through its own physical

distribution system, which is known as a two-level structure in some industries.

Retailers operate as middlemen between consumers and manufacturers in a three-level

channel system. Retailers purchase things directly from the manufacturer and then sell

them to consumers.

When producers sell to wholesalers rather than retailers, a fourth level is added.

Retailers order items from wholesalers rather than manufacturers in a four-level

arrangement. Finally, a manufacturer's agent can operate as a go-between between the

manufacturer and its wholesalers, resulting in a five-level channel structure that

includes the manufacturer, agent, wholesale, retail, and consumer levels.

Manufacturers, wholesalers, jobbers, retailers, and consumers are all part of a five-level
channel structure, with jobbers serving smaller stores not covered by the industry's

main wholesalers.

Alternative Courses of Action (ACA)

Based on the existing discussions and findings, in coherent to the areas of

consideration needed by the Taza Chocolate; the possible alternative courses of action

are as follows:

(1) To properly consider the overall operational management in

expanding a business.

A division manager who works in a globally competitive setting is referred to as

"operations management." A firm, such as the Taza Chocolate, must develop a

competitive edge over competitors in order to succeed financially. As a consequence,

management will be able to develop operational plans that can be applied to achieve

the company's goals and objectives as it grows. Every aspect of the business's

operations must be precise and reliable. It must also guarantee that the firm follows or

adapts the proper business production process, such as converting to online selling.

(2) To apply the Lean Management Process

The use of lean management or manufacturing in the workplace may be quite

beneficial. Because it comprises a reduction of numerous types of waste in businesses,

it will result in a cost reduction and an improvement in productivity. It controls the

company's performance, whether it's operational or financial, by removing various

unnecessary wastes, such as substituting personnel with machines that can produce

more output.

(3) Analyzing the Strengths and Weaknesses of Business Expansion

A firm plan's SWOT Analysis (Strengths, Weaknesses, Opportunities, and

Threats) must be analyzed in order to reach a positive outcome. As a reaction to the

firm, it demonstrates a strong competitive position as well as the potential for more

aggressive expansion plans. The Rainbow Radiant, for example, must evaluate the

vulnerabilities and hazards that come with expanding a business, such as

overexpansion, which can lead to a reduction in financial performance and client

retention.

Aside from that, they must concentrate on their skills and capabilities in order to

manage the company despite its different locations. They may choose the best

employee out of all interested individuals to manage their branches, and they can also

create seminars and programs for new workers to learn the best skill set necessary of

an employee and manager, such as customer service abilities.

Conclusion and Recommendations

 The adoption of lean management shines brightest among the three potential

courses of action. Over a decade ago, Lean Management was created to help

businesses decrease all types of waste and become more productive. Not only will

business productivity increase as a result of this, but production costs will also be

limited and minimized. For example, if management can meet rising customer demand

by expanding or investing in machineries rather of spending so much money on direct

labor, the management would reduce the number of workers and replace them with

machines that can work 10 times quicker. Direct labor is reduced as a result of this, but

products production outlasts the number of market needs. As a result, the corporation

will be able to optimize correct compensation and payments to employees.

Having a strong brand image necessitates effective communication about the

company's personality, which impacts customers' views about product availability. This

entails making more promises and taking more activities to keep customers' confidence

and loyalty. Taza, Chocolate's continued success is due to their successful and strong

brand image, which primarily retains customers over time. Their unique branding and

logo attracts more customers, who eventually become their most devoted customers,

resulting in a rise in revenue.