The accounting-based software company known as Xero, that provides an ease to business to the owners of the various companies, whose products are used in the more than one hundred and eighty companies. It is a software building company that helps to connect the people with the right numbers of the time.
Table of Contents
Oppurtunities and Threats
Key Strategic Objectives
Xero is the company that provides the services of the cloud-based accounting software and serves as station for the businesses which are either medium or small in the size and is listed on the Australian Securities Exchange. But mainly it is a public technology company which acquires the home from the government of New Zealand.
It was founded by Hamish Edwards and Rod Dury in the year of 2006.
The headquarters of the xero public limited company, is located in Wellington and it was formerly called as Accounting 2.0 in the year 2006.
Sir Steve Vamos has been appointed as the chief executive officer of the Xero company when Mr. Rod Dury was replaced. But Dury remained in the company as the non-executive director on the board of the directors of the company.
Aims and Scope of The Business Are-
1.Increase in the numbers of the subscribers- The company announced that it is having more than two hundred million subscribers, in the year 2019 within the centre and the markets of New Zealand and Australia.
2.Global placements- The company is having the three offices in New Zealand, and three offices in United Kingdom, and six offices in Australia, and three offices in United States. There are offices of the Xero company also in Canada, Singapore, Hong Kong, and South Africa.
This report is prepared with the aim to analysis about the firm that deal in the technology and thus it eventually deals and the main purpose is to find the opportunities and threat in the respective organisation which we have chosen. There is also objectives, as well as the challenges faced by the company, with the potential recommendation is explained in the below paragraphs and the report.
There are several opportunities and threat in every company. It is generally used for the purpose of analysing four components of a business. The external factors defined the market conditions that needs to be analysed from the prospective of the company (Mauricette, 2019).
The company has developed a reputation and enhanced brand image. Its way of approaching business has proved to be very successful as it has managed to generate heavy return on investments.
It has been observed that the company is earning profit but the figures are below the market average. The workforce does not seem to be appealing as the company is facing the challenge of high employee attrition. This means company has to spend a lot in the training of its employees. This company has not been very impressive outside the core business.
The new trends that are emerging in the market because of the low inflation rate. This has helped the company to serve their customers better. This possible because of the efficient distribution channel that is developed by this organisation.
The increasing trends of buying the products online may impact negatively to its already established infrastructure. The increase rate of labour charges can bring down the profitability margins of the company. This company has also been facing problems because of the legal framework and polices formed by the governments of various countries may influence the business (Smith,2019).
There are some policies framed for the enforcement of the contracts and the most important is the intellectual property protection. It is essential to follows all the frameworks that are formed by the company.
The growth rate of Australia is good and the company is also getting better contracts. The interest rates are low and this has been helping the company to save more. The company also getting various kinds of labour force as per their requirement.
This company is hiring employees from all the sections of the society and it does not make any kind of discrimination in their hiring policy.
This has helped the company to construct roads at much lesser time and that too with proper maintenance of the quality standards.
The company has been paying its taxes regularly and on time. The company strictly follows the laws and operating business without any controversy.
This company is also making some positive contributions in the fight against climate change and it is also adhering to the recycling of the products. This company is trying to make lesser use of the fossil fuels.
As the main strategic key objectives of the Xero. As there are few basic strategic key objectives of the company that mainly involves are:
2.To grow the global presence- They enhance their connectivity around the world by growing their global presence.
3.Expanding the gross marketing percentage- In every business, the company plays an important role to increase their gross margin percentage of their business.
4.Capital allocation framework- The company is allocated with their capital and its framework to gain the profit and also from the revenue.
5.Inorganic investment opportunities- The company is inorganic company that provides various of the investment opportunities to its shareholders.
6.Acheive positive results- The company has formed its own key strategic objectives to achieve the desired rate of the positive results within the expected time and duration.
7.Execute acquisitions- As we know that the company has acquires various of assets be it fictious or the depreciable value of the assets that are acquired throughout the life of the business.
8.Culture and human connection- The connections which must be either cultural or the human connections that are acquired to establish the brand of the business.
9.Looking ahead- Customers support their service provider only when they are having the purposes of the looking ahead with the business in terms of gain and relationship both.
But as we know that the company faces many challenges and the issues in this competitive economy. Major challenges and the issues that are faced by Xero public limited companies are-
The company has to keep its eye on the both with the various local needs as well as the global demands of the clients in the scenerio.
The company ensures its clients with safer and the technology that is measurable in the terms of its efficiency.
Remote working of the employees has also increased the issues that are currently facing by all level management.
There are potential recommendations for the company, that how the company can expand into the chosen market successfully. (Schonfeldt. et al N.A)
Some of the points are discussed below:
In this segment puma has followed its strategy where it has sold its existing products, equipment, shoes that too in the current or existing markets. This has helped the company to save the advertisement cost as the customers are already familiar with the brand. It can also be said that this company has existing loyal customer base.
It involves the development of new product and then introducing it into the existing market. It has been observed multiple times and it has been proven to be the core strategy of the company.
It basically deals with the entering or establishing the business in new markets that too with the existing products.
This is considered to be very crucial as it involves developing a new producing before making an entry into a new market. This helps to generate more profits by selling the new products to the customers of the new market.
It can be clearly summarised from the above-mentioned points that these external factors require to be considered and make proper assessment before making any strategy. It is also essential to analyse the inner strengths and weakness of the company and then comparing it with the external environment of the business. Therefore, it can be clearly stated that external factor is the most essential element of the business. There should be a detailed study that needs to be done in order to find out the potential of the new as well as the existing market before launching new products. Xero has also been successful in acquiring the number of the companies, since the company has been launched. The company has also announced its strategic alliance with the payroll platform of the company of United States called Gusto. It uses a single and which is also unified ledger that allows its clients to work within the same series of the books of the accounts regardless of its operating system. In the year 2019, the company has also offered several services relating to the single touch payroll in Australia, making the digitalisation of taxation in United States and payday filling in the country of New Zealand.
Cowling, J. (2020). Measuring software as a service (SaaS) companies, referencing Xero. Equity, 34(3), 11.
Schonfeldt, N., and Birt, J.(N.A) ICT skill development using Excel, Xero and TableauICT skill development using Excel, Xero and Tableau. Journal of Emerging Technologies in Accounting.
Smith, H. (2019). Xero for dummies. John Wiley & Sons.
Mauricette, J. (2019). User Satisfaction With Xero Accounting Software in Auckland, New Zealand (Doctoral dissertation, Auckland University of Technology).
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