According to the past studies, it is observed and proved that the organizational behaviors are influenced by various factors. These factors depend on different theories, moreover, past researchers worked on a different aspect of a particular phenomenon. In addition, the organizational behavior considered as to be influenced by the classical approach which was helpful for identifying and resolving the initial or the minor problems thorough the financial plan that were pertaining to the organization like South America PLC.
Ansoff Grid
In the Ansoff grid, while South America PLC seeks to expand its operations to the South American country that is Brazil. The financial plan of the South America PLC lies under the market development strategy, moreover the further discussion is explained below.
Market Development
The financial plan of the South America PLC reflects that the situation of balance sheet and the income statement especially the Retained Earnings and assets shows; that there is favorable chance that the company can develop the market. In addition to this, if the company involved in the market development, the goal is to find the new markets for existing products companies. There are two general strategies for market development that are identifying the users in different markets with similar requirements to existing customers, also identifying new customers with a product for use in a different way. One method to achieve the first, the different markets, finds new geographic markets (Wallack, 2003, pp. 41-58). An example of the identification of new customers is the goal of an energy drink Lucozade rather than something next to your bed if you have the flu or measles. Each start of a new geographic market is an example of the first of these options.
Flexibility
Flexibility is always the market and different approach. Local action for local customers, local cultures, of local value chains and local regulations require an offer as dictated by local agents. Moreover, it is important for South America PLC to keep the focus on key local brands. Another crucial factor is the capacity building, developing the capacity of people, processes and systems in South American country that is Brazil, and this capacity between markets will improve the chances of getting success the increased market share. Beside it, another significant element is to build brands allows the development of important long term customer relationships. In addition to this, the financial plan over the years shows that the Retained Earning of the second year is likely to increase thrice as compare to first year which shows that there are possible chances that the company can develop the market in Brazil in the coming future (Kalra and Shi, 2001, pp. 170-93).
Importance of the Financial Plan
Assets
The assets of the South America PLC show that the there is a bright chance for the company to improve its assets position over the years as the financial plan of the company reflects. This observed that the assets are consistently increasing over the years which are a positive sign for the company to expand its business ...