differentiation strategy includes strong leadership abilities B u s i n e s s F i n a n c e

Here is 2 discussions and I have to reply to 2 students for each discussion 100-150 words

First Discussion Initial Post

1. What is the difference between call options and put options? Pros and Cons? When should they be used? Explain.
2. Discuss and explain 2-3 options like securities, such as callable bonds and warrants. Which ones are you most familiar with? Explain.

Student 1

Hello class,

Options are contracts between investors that give the the holder the right to buy or sell an underlying asset such as a stock, at a fixed price on or before a specific date in the future. You pay a premium to own options and you’re not obligated to use them. But if you sell an option, you have to provide the asset to the holder if and when they use their option. Options are bought and sold among institutional and individual investor, broker traders, and other participants in the market. There are tow types of otions; Put options that gives the holder the righ to sell a number of assets whithin a specific period of time at a certain price. And call options that gives them the right to buy assets under those same conditions. You can buy or sell options, depending on what your investing goals are. If you purchase options, the most you can lose is the amount you paid for the premium since you’re not obligated to exercise the option. You risk losing more if you sell options since you’re legally obligated to fullfill the terms of the contract regardless of market value for the underlying assets.

Warrants and call options are both types of securities contracts. A warrant gives the holder the right, but not the obligation, to buy common shares of stock directly from the company at a fixed price for a pre-defined time period. Similarly, a call option also gives the holder the right, without the obligation, to buy a common share at a set price for a defined time period.

Student 2

• What is the difference between call options and put options? Pros and Cons? When should they be used? Explain.
  • First, options are contracts between investors that give the holder the right to buy or sell an underlying asset at a fixed price on or before a specific date. Call options gives investors the right to buy assets and put options gives holders the right to sell a number of assets within a specific period of time. Investors can buy or sell these options. Put options can help defend against falling stock prices, as well as generate profit if market prices go below the strike price. Additionally selling put options can generate income by charging a premium. The cons of put options are that they have a larger premium than call options and you may lose what you paid if the stock prices stays the same or increases. Call options on the other hand, can provide significant profits if they are purchased before a stock goes up in value before the expiration date. Additionally the premium for a call option is often lower than a put option. The cons of call options are that if the stock price stays at or below the strike price, a call option has no value for the holder. Investors can also risk losing money if you don’t exercise the option
• Discuss and explain 2-3 options like securities, such as callable bonds and warrants. Which ones are you most familiar with? Explain.
• • I am not very familiar with these items. Callable bonds are bonds that can be balled by the issuer after a specified duration, at a specified price. Convertible securities are bonds or preferred stocks that allow the holders to convert these securities into the common stock of the issuing company. Because the convertibility has value, the issuer receives a higher price for its bonds, allowing it to pay lower yields.

  second Discussion Questions

  (Two questions from Chapter 11)

  1. What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one is available internally and the company has a policy of promotion from within?

  2. When should someone from outside a company be hired to manage the company or one of its business units?

  Student 1

• 1. What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one is available internally and the company has a policy of promotion from within?Skills that a person should have for managing a business unit following a differentiation strategy includes strong leadership abilities, willingness to receive training, customer oriented, and knowledgeable on process improvement procedures. This is because a differentiation strategy aims to set a firm apart from others through the uniqueness of the products or services that they provide (Wheelen, Hunger, Hoffman, & Bamford, 2018). Innovation is an important factor in executing a differentiation strategy therefore, a manager must be able to exhibit flexibility when it comes to meeting the firm’s ultimate goals. If there is no one available internally for a position, a company should look for candidate on the outside. This is not the ideal situation because outsiders have a higher turnover rate than that of someone who was promoted from within.2. When should someone from outside a company be hired to manage the company or one of its business units?There may be times when it is most appropriate to hire someone from the outside to manage a company or one of its business units. This is the case if there are no qualified internal candidates that would be a good fit for the position. Leaders must look at all aspects of a position, as well as the goals of the company or business unit from within. Another consideration when deciding whether to hire someone from the outside is any challenges that the company is currently going through. GE is a major corporation that has recently taken that gamble by hiring 15 outsiders for executive positions (Beene, 2021). This decision was made in an effort to breathe new life into GE and to embark on a cultural transformation.References:Wheelen, T.L., Hunger, J.D., Hoffman, A.N., Bamford, C.E. (2018). Strategic Management and Business Policy: Globalization, Innovation, and Sustainability. Pearson.Beene, R. (2021, July 30). GE Always Promoted From Within. Now Its Hiring From the Outside. Bloomberg Business Week. Retrieved from Links to an external site.S
  

Student 2

What skills should a person have for managing a business unit following a differentiation strategy? Why? What should a company do if no one is available internally and the company has a policy of promotion from within?

Both the manager and CEO should possess analytical skills such as analytics and innovation. These two key factors play very important roles in managing a business unit that follows a differentiation strategy. Differentiation strategy mainly focuses on the niche market segment. Innovative thinking is an important skill for someone in upper management to have because customers are constantly wanting something better than what is already being offered. Having an innovative mindset could set a manager apart from others.

If a company has a policy of promotion from within and no one has the skills set they should consider the employee who is most qualified for the position. Then they should offer him/her more training to get them where they need to be. For example, if an employee is a supervisor or assistant manager then promote them to manager and provide the training and material that is needed in order to be successful in that new role. If the company has absolutely no qualifying candidates then they should reconsider their policy and hire someone from outside of the company.

When should someone from outside a company be hired to manage the company or one of its business units?

Someone from outside a company should be hired to manage the company or one of its business units when that person is more qualified than anyone who already works for that company. An outside person that possesses the fundamentals of what a company needs to be successful should be hired.

Source

Wheelen, T. L. (2018). Strategic Management and Business Policy: Globalization, Innovation and Sustainability, 15th Edition.