you have to write minimum 250 words. then you have to reply for post of student (( 2 students))
In Module 1 and Module 2, we learn about possible goals of the firm in some detail. However, you must have realized this issue merits more in-depth analysis. In this discussion you are all encouraged to participate and contribute your thoughts on what should be the goal of a firm. Feel free to describe the aspects you have observed in your work experience.
Your discussion participation will be evaluated by the attached rubric.
Click here to see how to view the rubric for a graded discussion. (Links to an external site.) The categories and points are as follows:
I. Quality of Posts (50 points)
II. Quantity of Posts (20 points)
III. Timeliness of Posts (20 points)
IV. Professionalism (10 points)
I attached below Module 1 and 2.
1st student post :
The goal of most publicly traded firms is to maximize shareholder value through profit. My current employer, ADP, is no exception. Each quarter we push our sales teams to hit short-term targets which are set to increase our stock price. In parallel, there are many strategic efforts ongoing to improve product offerings and develop new offerings that will help the firm maximize profits in the longer term.
Maximizing profits is an appropriate goal for ADP given the that they are a for-profit company in the software services industry.
What is ADP up Against (5 Forces)
- Entry: ADP has been in the payroll business for 60 years. As the inventor of the category, ADP was ability to build high barriers to entry by capturing large market share, and developing technology that was not easily replicated. Fast forward to present day and ADP has expanded from just payroll to Human Capital Management services. The industry is very profitable and has invited many start ups to encroach in the space, particularly in the areas of talent management. Instead of only the traditional competitors like Paychex, SAP, and Intuit, ADP now has to be cognizant of new players in the category like Namely, Gusto, and tech entrants like LinkedIn and Google.
- Power of Suppliers: The technologies that are sold are all internally developed or acquired, so supplier power is limited in this industry, which helps to sustain profits.
- Power of Buyers: Buyers have more power than ever now that the HCM industry has so many players. Business owners are constantly approached by sales representatives from rival companies soliciting their business. This allows buyers to easily compare offerings and prices. There is also more information available online on company websites, HR professional forums and industry publications. This has caused overall margins in the industry to decline.
- Industry Rivalry: As previously mentioned there are many players in the HCM space and rivalry is intense. This forces ADP and its competitors to invest heavily in R&D and process innovation, thus reducing margins. Customer retention is also a costly endeavor as you must remain vigilant that competitors are not poaching unhappy clients.
- Substitutes and Complements: In terms of Human Capital Management technology (Payroll, HR, Benefits, Time and Attendance, and Talent Management solutions), the only substitute for purchasing software is to handle the tasks manually in the case of Payroll, and/or not do them at all for things like tracking time and attendance and handling talent management tasks. Handling these tasks manually is simply not feasible for many businesses, especially as company size increases above ~25 employees. Additionally, not doing some of these activities may impact the firm’s efficiency and effectiveness. All that to say that substitution is limited in this category. As far as complements go, there are many other categories of business productivity software that complements Human Capital Management, such as Enterprise Resource Planning, Tax, Retirement, and other systems. For HCM systems to be most effective, they need to integrate well with these complementary systems – this is an area where industry players are able to differentiate themselves.
How Effective Has ADP Been?
Based on my observations over the past 4 years of working at ADP, I have witnessed consistent year-over-year profitability growth. The company is well-positioned for short-term profit maximization. However, at times it appears that short-term profitability takes precedent over the long-term. If a major tech player like Microsoft or Google truly sets its sights on disrupting the HCM space (which I think is feasible given that they are already investing in the space) I think ADP would struggle to maintain its category leadership position.
2nd student post:
I will send it later