Stakeholder Management in Infrastructure †MyAssignmenthelp.com

Question: Discuss about the Stakeholder Management in Infrastructure. Answer: Introduction Hikma Pharmaceuticals is the multinational company from London that manufactures the non branded as well as branded in-licensed and generic pharmaceuticals products. The company was established in Amman, Jordan during 1978 bt Mr. Smith Darwazah. The company is listed under the London Stock Exchange and the constituent of FTSE 250 Index. Building the ethical heritage for the last 30 years, their values are mainly based upon the way they conduct their business. The company is committed towards improving the life of the people through the existing products and differentiated as well as extensive pipeline. Their main objective is to deliver their patients with affordable, better quality medicines in the major therapeutic segments. Their vision is to construct Hikma into the leading companies for speciality pharmaceuticals with the global presence. Through the strategic acquisitions and organic growth they expected to continue for developing and maintaining the high level of responsibilit y and ethics that are the main factors of their operation (Hikma.com 2017). The company acts with honour and honesty without compromising with the truth and hold the people accountable for maintaining highest performance standards. Showing the consideration for each other, recognizing each others expectation, needs and difference among themselves are the main motto of the company. Further, they maintain accountability, openness and transparent communication at the operation level, which in turn, allow them to carry on their operation openly and clearly that makes it easier for others to observe the performance of the company. Balance scorecard of Hikma Pharmaceuticals The balance scorecard is the performance metric that is used under the strategic management for improving and identifying different internal factors of the business and the resulting outcomes from the external sources. It is utilized for measuring and providing feedback to the organizations (Frst et al. 2014). The collection of data is important for providing the quantitative results as information collected are analysed and interpreted by the executives and managers and are used to make organizational decisions. The balanced score card is prepared for reinforcing the good behaviours in the organization through isolating 4 different segments that are to be evaluated. Four segments are also called as the legs and include business processes, finance, customers and learning and growth. Further, it is prepared to achieve the goals, initiatives, measurements and objectives that are the outcomes from these four major activities of the business (Boscia and McAfee 2014). The organizations easily can recognize the factors with regard to the performance of the company, and the strategic changes that are identified by the future scorecards. With the help of the balanced scorecard, the company as a whole is analysed while looking at the objectives of the company. The organization can use balanced scorecard for implementing the strategy mapping for identifying the areas where value is added in the organization. The organization may also utilize the balanced scorecard for developing the strategic initiativ es and the strategic objectives (Sainaghi, Phillips and Corti 2013). Data is gathered and broke down from four parts of a business. To begin with, learning and growth are dissected through the examination of preparing and information assets. This first leg handles how well data is captured and how viably workers use the data to change over it to an upper hand over the business. Second, business processes are assessed by examining how well items are processes. Operational management is examined to track any delays, gaps, wastes or bottlenecks. Third, customer perspectives are gathered to gage consumer loyalty with quality, cost and accessibility of items or administrations. Clients give input in regards to if their requirements are being met with current items (Heginbotham et al. 2015). Finally, the financial related information, for example, deals, consumptions and wage are utilized to comprehend budgetary execution. These financial measurements may incorporate dollar sums, spending fluctuations, budgetary proportions or wage targets. These four legs incorporate the vision and technique of an association and require dynamic administration to investigate the information gathered. In this manner, the balanced scorecard is frequently alluded to as an administration apparatus, not an estimation device (Keyes 2016). Mendelows Matrix: One of the methods used in performing the stakeholder mapping is the Mendelows Matrix. Unless suitable knowledge is available about the stakeholders, corporate strategies cannot be formulated. It is possible to determine the key stakeholders of any organisation by the procedure of stakeholder mapping (Mohan and Anil Rao Paila 2013). The company of interest is the Hikma Pharmaceuticals. The company is listed in the London Stock Exchange. Being a pharmaceutical company, the key aim of the company is to provide their patients with the best quality of treatments possible. Stakeholders of any company are many in number. In case of this pharmaceutical company, the customers, that is the patients are the main stakeholders. Ot6her stakeholders include the suppliers of the medical products and equipment, the employees of the company who work for Hikma, as well as the wider community (Elsaid, Salem and Abdul-kader 2015). The existing policies of the company include the strategy to deliver the best possible quality as well as affordable generic medicines. The possibility of providing branded generic medicines to the patients is also not left out. The priorities of the company include the following facts: Strengthening their position by establishing themselves as a leading US non-injectable generic company. Expansion of the company in the existing generic markets Maintaining their position among the top three generic injectable companies in the US Maintaining their rank as the leading regional player in MENA as well expanding in new and emerging markets. Organisational objectives: The major objective of the company is to prepare in such a way for the future that they can allow the growth of their business and lead to the strengthening of their ties as well operate keeping in mind the shareholders best interests. This is done to create shareholder value off the company. If a companys shareholder value is not created, the shareholders are bound to look for better options, thus damaging the overall value of the company. The other organisational objectives of the company include: Maintenance of sustainable development Driving the sustainable development Meeting all the requirements of healthcare Promotion of good business ethics Supporting the communities of the company Minimising negative impacts on the environment Enabling and encouraging the development of the people Minutely following the key strategic goals Thus it can be said that there is a direct link between the organisational objectives and the priority structure of the Hikma Pharmaceutical Company. This is because the priority structure is built according to the organisational objectives of the company, keeping the most important goals and objectives in mind. Persons involved in the value creation process Value creation is the most important aim of any organisation, specifically in terms of business. Creation of value for the main people that is the customers, assists in the selling of products and services, along with creating the value for the shareholders in general. This creation of value ensures that shareholders invest in the company and there always remains adequate capital for the funding of the company to assist in its operations (Grnroos and Voima 2013). In other words it can be said that the performance or the actions which help in increasing the overall worth of the company goods, services or even in case of a business. The employees are the most important people involved in the value creation of a company (Acharya et al. 2012). Recipient of the value created by the organisation Recipients of the value created by any organisation are primarily the customers. In case of the Hikma pharmaceutical company, the main people are the customers. Unless good quality of service is meted out to the customers of the company, their branding and trust will suffer (Achtenhagen, Melin and Naldi 2013). Also it can be said that the generic medicines and the injections if not provided accurately to the customers will lead to issues of low trust as well as will lead to their negative feedback about the company. Negative feedback about the company will ultimately lead to its low value. The value creation will occur in a negative sense. Thus with the help of the Company information as well as the obtained knowledge regarding the strategies, priority structure as also the organisational objectives it can be clearly understood that the Company needs to understand the amalgamation of the level of power and the level of interest of the stakeholders and act accordingly all the time maintaining a perfect balance so as to not harm the goals or the value creation of the company. Minimal effort needs to be given to the company stakeholders who have the lowest amount of shares as well as the least interest as their feedback or their opinions carry the least value. Much importance should not be provided to such individuals. In case of those stakeholders who have low power but high interest, the company needs to keep them informed. This is because if not informed the word of mouth publicity may be lost and these individuals might negatively influence the others who wish to become future stakeholders of the company (Ferretti 2016). In case of shareholders having high power but low interest, it is the companys duty to keep them satisfied at all times otherwise the value and the stakes will be negatively impacted. It might be argued that this category does not have much interest, but the factor of key importance is their power. Finally those stakeholders who have high power as well as high performance are the major players of the companys shares and stakes. The fate of the company is entirely dependent on their happiness and ultimately their decisions. Financial analysis Looking at the financial statement of the company, it is found that the company out of the total capital, $ 1,337 million were raised through equity, $115 million were raised through short-term borrowings that are bank loans and overdrafts and $ 590 million were raised through long-term debt. Therefore, the company raised only 35% of its capital through external sources that is short-term and long-term borrowing and raised 65% approximately through internal sources that is through equity. Ratio Formula 2016 2015 Efficiency ratio Inventory turnover ratio COGS / Average inventory 2.37 2.72 Account receivable ratio Net credit sales / Average accounts receivables 3.53 3.45 Current ratio Current assets / Current liabilities 2.30 1.58 Gearing ratio Debt / Shareholders Equity 0.53 0.35 It can be identified from the above figures that inventory turnover ratio of the company was better for 2015 as compared to 2016 and it fell to 2.37 in 2016 from 2.72 in 2015. However, the companys inventory turnover ratio is quite impressive as it is able to sell the 100% of its inventory during one year. In other words, the company will need less than one year to sell its total inventory. Looking at the account receivable ratio of the company it is identified that the company is able to collect its dues for 3.53 times during 2016 as compared to 3.45 times in 2015. Therefore, it can be said that the receivable position of the company is improving. Further, the company has very high current ratio, which is 2.30 in 2016 as compared to 1.58 for 2015. It indicates that though the company is in a good position to pay-off its short-term obligations, the higher ratio may indicate that the company is not utilising its current asset properly. Finally looking at the gearing ratio, it is identified that the companys financing through borrowing was only 35% for 2015. However, its long term borrowing went up to $ 721 million in 2016 from $ 590 million in 2015. It indicates that the company raised further amount through new borrowings during 2016. Debt finance as an option of finance Debt finance takes place when the company raise capital through borrowing from external sources like from bank, financial institution. It can also raise the capital through selling the bills, bonds or notes to institutional investors or individuals. An ideal ratio for debt finance is that the company can raise through debt to maximum 60%. Looking into the current scenario it is identified that the debt ratio f the company jumped from 35% to 53% which is quite a big amount. Therefore, it is suggested not to borrow through debt anymore immediately. However, as the amount of borrowing further needed is not mentioned, the company can consider further borrowing through debt only if the amount is small; otherwise too much debt will have adverse impact on the capital structure of the company. References: Acharya, V.V., Gottschalg, O.F., Hahn, M. and Kehoe, C., 2012. Corporate governance and value creation: Evidence from private equity.The Review of Financial Studies,26(2), pp.368-402. Achtenhagen, L., Melin, L. and Naldi, L., 2013. Dynamics of business modelsstrategizing, critical capabilities and activities for sustained value creation.Long range planning,46(6), pp.427-442. Boscia, M.W. and McAfee, R.B., 2014. 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