- This value driver is a measure of stakeholder goodwill. It is measured in terms of growth rate, health, and awareness of the corporate image, mission, branding, etc.
Human Capital
- This value driver is an assessment of
an organizations human resources. It is measured in terms of management's
experience, ability, board and career development.
Intellectual Property(IP)
- This value driver is an assessment of
the depth and breath of the intellectual property of an organization. It is
measured in terms of Trademarks, Patents, Trade Secrets, and processes of
knowledge capture.
Customer Base
- This value driver is an assessment of
the customer base in terms of growth, sentiment, diversity, liquidity, and age
of base.
Product Integration
- This value driver is an assessment of
an organization's product and services portfolio. It is measured in terms of
vertical & horizontal alignment, manufacturing process dependencies, and ROI.
GA Efficiency
- This value driver is an assessment of
the general and administrative functions of an organization. It's measured in
terms of staffing efficiency and expertise, work space allocation, etc.
Barriers to Entry
- This value driver is assessed in
terms of competition, macro trends, competencies, and other transaction
barriers.
Recurring Revenue
- This value driver is assessed in
terms of sales effort, warranty expense, after sales support, and probability of
repeat sales
Distribution
- This value driver is assessed in
terms of the variety of channels, access to channels, channel discounting, take
back liability and sales costs.
Sales & Marketing Efficiency
- This value driver is assessed in
terms of ROI, age of models, forecast accuracy, scalability.
Gross Margin
- This value driver is assessed in
terms of accuracy of COGS, WIP to waste ratios, market pricing.
Asset Rating
- This value driver is assessed in
terms of aging, depreciation, utility, and market value.
Risk Management, Definitions of Risk.
Strategic Risk
- This risk includes uncertainty in
strategic planning, strategic alignment, corporate monitoring, and resource
allocation.
Culture Risk
- This risk includes uncertainty in
hiring, human resources, work environment, and organizational learning.
Asset Risk
- This risk includes uncertainty in
market value and lifecycle planning for physical assets, utilization, inventory
turns and valuation, and intellectual property.
Market Risk
- This risk includes uncertainty in
monetary policy, interest rate and exchange rate fluctuations.
Stakeholder Risk
- This risk includes uncertainty in
shareholder, business partner, customer, government, and supplier affinity and
pressure.
Reporting Risk
- This risk includes uncertainty in
complying with taxation policy, accounting rules, and laws in regulatory
compliance.
Market Structure Risk
-
This risk includes uncertainty in competition, macro trends, customer behavior,
foreign and domestic governments, and in conducting transactions.
Legal Risk
- This risk includes uncertainty in
liabilities, Warranties, Contracts, and Regulations.
System Risk
- This risk includes uncertainty in
network architecture, software (selection, maintenance, support and
performance), and hardware (selection, maintenance, support and performance).
Process Risk
- This risk includes uncertainty in
product or service development, fulfillment & delivery, Marketing & Selling, and
Support.
Liquidity Risk
- This risk includes uncertainty in
collectability, cash management, hedging, funding, and capital structure.
Continued restructuring and
consolidation within the aviation industry provides a difficult but
opportunity rich landscape. The risk-reward balance governing
management's strategy can support the competing concerns of labor,
consumers, the environment, and the bottom-line. The primary risk drivers impacting
the industry are listed below:
