Olde good thing Essay Example | Topics and Well Written Essays - 750 words

Olde good thing - Essay Example However, the extreme contrast of the peaceful Emma’s voice and the third world neighborhood surroundings created melancholy emotion. Similar to the title of the song I was listening to, once upon a time, the town had its Renaissance period; Things like street lights and big buildings were old, but they didn’t look cheap. I could not find the antique shop I was looking for, so I made a couple of detours, and I finally found it. However, since there was no parking lot, I had to go to public parking across the street. Then, I had to walk a hundred yards to get to the shop. Walking a street like that was truly fearful in Detroit even in daytime, but there was something that told me it was okay to take a walk with an expensive camera on my neck. Anyway, my instinct made me keep looking at my back as an African meerkat. There were a few homeless people with grocery carts, but no hazardous elements. The building I was walking to was a simple rectangular shape with antique detailed ornaments around its windows. I guess it was once a fancy condominium. A fenced vacant lot in front of the building made the hood seem even more desolate. One corner of the building wall was filled with ugly graffiti. The building was combined with two different buildings connected together; the big one was white-painted brick building, and the smaller one was a red brick building. The red one had faded soot around its windows. I thought there had been a serious fire long ago. There were many traffic signs around the building with scribbled notes on some of them. Above the main entrance, it said, ‘Architectural Treasure’ in black paint on white background. Next to the main entrance, an eerie clown face about five feet tall was laughing at me. As tall as the scary face, a big yellow pencil that had red eraser on the other side diagonally stood next to the clown. The store was based on a foundation of

The pricing decision Essay Example | Topics and Well Written Essays - 2000 words

The pricing decision - Essay Example These situations include new product promotion, test marketing, countering competition or predatory pricing, promotion of associated products and cost plus contracts. Fazlzadeh, Mohammadi & Sepehrfar (2011, p. 66) state â€Å"Setting optimal prices, however, is a complex problem in general and is particularly challenging in industrial or B2B market settings, where purchase prices of products and services typically vary from one customer account to another as prices are negotiated and modified from list prices in the course of the purchase process†. Based on the purpose, marginal, differential or total costing method would be adopted in pricing. The pricing strategies also vary according to the type of market such as monopoly, monopolistic or oligopoly. The strategy of skimming the market or the policy of ‘what the traffic will bear’ in the case of products backed up with IPRs are not uncommon in the market place. Also, pricing strategy for the same product by the same company varies based on the usage or purpose. For instance LPG cylinder used for commercial purposes could be costlier than the LPG used for domestic purposes. This paper seeks to discuss about various strategies adopted by businesses in pricing decisions. Why pricing decision is important? The strategic importance of pricing is many fold. Promotion Strategies (2010) states, â€Å"The  marketing promotion mix  is the use of the 4 P's. These are Product, Price, Place, and Promotion.  This system first appeared in 1949 and was developed by Philip Kotler†. The pricing is an important area in the management decision making, because profitability of any business hinges on right price for the product for making the most out of the prevailing economic situation and developments in technology, internet and telecommunications in the context of the business. Bayati & Makui (2011, p. 371) observe â€Å"Making an appropriate pricing and marketing strategy is a crucial managem ent issue in E-commerce†. The appropriate pricing strategy is adopted after analyzing the factors related to various pricing situations. Evidence – Chevrolet’s Spark Chevrolet has introduced the model ‘Spark’ for marketing in the developing countries, in the small car segment, which is not very popular in US or other developed countries. The price of the car is fixed at INR. 279,000 in India which works out to just US$ 6200 approximately. In the case of new products, in spite of the extensive market research on potential demand for the product, adopting a right pricing strategy is important to be competitive in the market. As it is a question of creating demand for the new product, pricing is the key to success in influencing the consumers’ decisions. Price sensitivity of the consumers is an important variable in the decision making process, and the proper positioning of the product in the market place and its rational pricing would stimulate demand for the product from the target consumers. The strategy should also ensure that the competitors are not tempted to introduce similar products in view of the attractive margin. This philosophy aims at sustainable growth in the long run. Therefore, the prices are fixed with a reasonable margin and at the same time not tempting the competitors to rush into this segment to spoil the first mover advantage. Argument for fixing prices at a lower level The pricing decision in this case is taken in the backdrop of uncertainties about the

The Creolization of Old Calabar Essay Example for Free

The Creolization of Old Calabar Essay The business and social interactions of the African and English slave traders created a very different Old Calabar. As the slave trade grew the society quickly started to reflect not only the traditions and values of the Africans but of the English as well. Old Calabar became a New Creolized Calabar†. Was this the direct result of the slave trading? The evidence says yes? The creolization of the African Society of Calabar can clearly be associated with the slave trade by analyzing their language changes, life style changes and political changes as the slave trading became more competitive and economically beneficial. Creolization usually brings to mind the decedents in Louisiana born to the Spanish, French and Haitians before the Civil War. Randy Sparks introduces the idea of creolization as being a way to explain what happened in Old Calabar, but interestingly, he poses the thought that it had little to do with the origin or birth of those involved. Sparks instead introduces historian Ira Berlins idea of the Robin Johns being a kind of Atlantic Creole not because of blood lines but by experiences. Ira Berlins quote is as follows: Familiar with the commerce of the Atlantic, fluent in its new languages, and intimate with its trade and cultures, they were cosmopolitan in the fullest sense. (pg. 4) The Robin Johns were not only fluent in the English language but also in trade language alluded to by Ira Berlin. These various languages developed in areas from Gambia to Cameron and developed as a result of the constant exposure of slave traders to each others languages. The variations spread around the Atlantic Ocean to areas where slave trade was popular from Africa to the Americas to Europe. Sparks describes the languages as a combination of mostly English words having African Grammatical structures. The African leaders in Old Calabar were responsible for the cosmopolitan† like essence of the Robin Robins. The leaders knew that by being more European understanding the European customs and practicing the lifestyle. It gave them the competitive edge over the other African competitors who did not. Joining with the Europeans in the lucrative slave business was an economic gold mine. So, the smart African transformed himself into an image of what they believed made them more appealing to the Europeans. An example of this would be that they ordered and used extravagant products such as English razors, pewter piss pots and mirrors six feet tall. The degree of their creolization is very apparent on pages 11 and 12 of the first chapter. Sparks description of Grandy King George, who was originally known as Ephraim, is filled with the pageantry of both Royal English and African fused together. Sparks describes Grandy King George as he boards the Royal Canoe the day before The Massacre of 1767. Sparks indicates that Grandy King George wore a multicolored robe and red coat trimmed in gold lace, a silk sash thrown over his shoulders. He carried a gold skull headed cane in one hand and a fine ceremonial sword in the other. Under one arm he carried a gold trimmed cocked hat and the ensigns that, as Sparks describes them, blew in the wind, engraved with Grandy King Georges name written in English letters. The Kings name being written in English letters emphasizes the point that the African Slave traders not only spoke the English language, but also had the ability to read and write it. The unique combination of The Kings attire and accessories powerfully displayed his desire to indicate his appreciation for both cultures. The red coat trimmed in gold clearly reflected his admiration of the English Royals, while the skull headed cane, on the other hand, indicated his pride in his African heritage. Sparks seems to save his last description of the King and his surroundings that day as the most obvious fusion of the two cultures. He describes that behind the King, in the center of the canoe, there was a small house painted in bright colors, and on top of the house there were two men loudly playing the drums. There was a canon in the bow of the canoe, and in front of the canon was a man who shook a large bundle of reeds to symbolically ward off obstacles. Again, one could say that the mixing of cultures is self-evident. The canon would have been something purchased from the English, while the spirit man and the men beating the drums would have reflected his African faith. African Politics in the area of Efiks experienced significant change after the slave trade with the English escalated. The economy had been predominantly based on agricultural trade and there was no strong centralized government. Small groups of population approximately 1200 were divided up into Wards and Houses lead by town council Elders and House Elders. As the economy grew, the criteria for qualification as head of house changed from lineage to wealth. Houses became larger, Wards and Towns as well. A stronger governing system was created. The â€Å"Grand Council† was introduced to govern the â€Å"Council of Elders†. The â€Å"Ekpe Society† was created to set standards and create laws for the entire system. Entry into the system was open to all men even slaves as long as the entry fees were paid. The Society had many levels of membership determined by the wealth of the man. The Ekpe Society controlled all trading regulations both slave and agricultural. In addition they controlled the economy. They set prices for goods, enforced debt collection, payment submissions and kept track of inventory. The Ekpe Society even controlled who was responsible for sweeping the streets. The crealization is seen in the change of the African Society governing style from a lineage system to a system influenced more by wealth and requiring strong central government. In conclusion it is clear that the relationship with the English and the huge amounts of capital to be made created a creolized African Society. It changed how they thought about status. They wanted English clothes, razors, mirrors and pewter piss pots. The government became more about money than lineage and last but not least their language changed. An entire language was created around the slave trade.

Strategics for Strategic Decision Making

Strategics for Strategic Decision Making What key lessons may be learned from any comparison of these two quite different accounts of the same strategic decision? Strategic decision Chosen alternative that affects key factors which determine the success of an organizations strategy. In comparison, a tactical decision affects the day-to-day implementation of steps required to reach the goals of a strategy.  [1]   From these two accounts there are key lessons which can be learnt as far as strategic decision is concerned. Strategy flexibility. Since strategy is not written on stones, sometimes it has to undergo some changes so as to be able to match with the real market environment at particular entry moment. Sometimes one strategy only fails unless a combination of both i.e. emergent strategy as well as deliberate strategy.  [2]   Ability to turn-on customer loyalty and tastes toward a product whose image is totally spoiled. While most motorcyclists were no doubt decent people, groups of rowdies who went around on motorcycles and called themselves by such names as Hells Angels, Satans Slaves, gave motorcycling a bad image. Some steps Hondas took were re-designing of their product to match with the market needs i.e. from larger machines to smaller lightweight motorcycles. The inevitability of proper and efficient market scanning. Its possible to enter the market with a very wrong strategy due to many reasons including failure to effectively scan the market needs. At start Hondas failed to know what US market needed and unfortunately they brought a wrong product of bigger machines while Americans needed smaller ones. Difficulties in the first entry to the market are not the end of business .Difficulties can be used as crucial mirrors for re-defining the strategy to a successful one. References: CASE STUDY 2: LAURA ASHLEY Question 1: Map Laura Ashleys stakeholders using a power/interest matrix. Stakeholders are those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends.  [3]  (Johnson et al, pp.132) Laura Ashley power-interest matrix is as follows: LOW POWER HIGH LOW INTERST HIGH Harmless stakeholders: THE 11 CEOs, Media Group Business Analysts Laura Ashley Customers Chief executive of Pearson Laura Ashley and the husband Bernard Ann Iverson a new CEO in 1995 Richard Pennycook a new FD in 1997 Shareholders like Malayan United Industries (MUI) LOW INTEREST LOW POWER: This is a harmless stakeholder group which requires less attention. This group is represented by the retired CEOs e.g. The 11 CEOs over the last 14 years. Id really rather focus on driving the business forward, he says. LOW INTEREST HIGH POWER: This group is not always bad but needs to be watched because when not satisfied it turns out to be harmful to the business. Laura Ashleys Customers; Customers have very high power to the business because without customers there is no business at all. HIGH INTEREST LOW POWER: This group is crucial to the business because it contains stakeholders with interest with what is done by the business including core customers of the business products and/or services. This group is represented by Media groups: likes to know about the operations but has got less power. Business Analysts: likes to get information for analysis although they have less power. HIGH INTEREST HIGH POWER: Here you can find all key business stakeholders whose expectations and interests are always in the higher side. This group is represented by Chief executive of Pearson Laura Ashley and the husband Bernard Ann Iverson a new CEO in 1995 Richard Pennycook a new FD in 1997 Shareholders like Malayan United Industries (MUI) its chairman Dr Khoo Kay Peng, David Cook, Lauras Finance director CASE STUDY 3: THE BALANCED SCORE CARD QESTION 1: Why do you think organizations often find the Balanced Scorecard difficult to implement in practice? Definition: The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization.  [4]   Among various methods for measuring business performance, scorecard seems to be superior due to its advantages over other traditional financial methods. Balanced Scorecard incorporates future variables as well as multiple measures of performance compared to other methods. There are about four perspectives under this method which are financial perspective, Customer Perspective, Internal perspective and innovation Learning perspective. The following are reasons for organizations difficulties toward implementation of a balanced score card; The main problem facing organizations on implementing a balanced scorecard is the architecture and assumptions applied especially on selecting appropriate measures and number of measures to incorporate toward improving corporate performance as can be seen in the Shell crisis concerning overstatement of its oil reserves. Research from the Hackett Group shows a very small percentage of companies with mature and good mix of financial and operational metrics in their scorecards. There are processes in setting and implementing the scorecards known as translating the vision, communication and linkage, setting targets through planning and finally getting the feedback. Failing to follow this process organization faces the difficulty of failing to translate the strategic objectives to fit with measurements incorporated in the balanced scorecard which causes confusion than serving the purpose. The persuasion I would use to convince the organization to adopt balanced scorecard is to talk about its advantages over other methods which are as follows: Multiple measures of performance: incorporates a range of variables that measure performance against a multiple set of goals. Forward Looking: incorporates variables that are indicators of future performance including profitability. References: CASE STUDY 4-FIAT Question: Post at least 4 factors, ie a Strength, a Weakness, an Opportunity and a Threat, from one or both of your SWOTs (2004 or 2008). Briefly explain your analysis. SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective.  [5]   The following is the analysis using SWOT tool of a FIAT Company showing its different milestones in business within two periods of 2004 and 2008. SWOT 2004 2008 STRENGTHS Strong management team, e.g. CEO Mr. Marchione. Young and energetic personnel with strong experience. The kids are truly devoted to the cause. They are the heart of the success. Having cars with relatively lower average emissions Product innovation Fiat is the market leader in Brazilian market. WEAKNESSES Unappealing models or Odd cars which Mr. Marchione refers it as an arrogance of thinking. Limited resources. Licensing innovation to other manufacturers. A truck-making joint venture between Iveco and SAIC in China, it is weak in China, India and Russia. OPPORTUNITIES New products -Alfas immediate future i.e. the new MiTo, which is based on the Punto and has been designed to match the driving dynamics of BMWs Mini, and the 149, successor to the compact 147 hatchback. Divorce from a 5-years GM partnership and becoming an independent player. Partnership with other strong manufacturers like TATA and SAIC. THREATS Immergence of new Innovative brands in the car market by new rivals. Its five-year partnership with GM. It had not worked, for several reasons. Sharing platforms, engines and purchasing had not produced the expected economies of scale and Fiats ability to act independently. When new European Union rules on carbon-dioxide emissions come into force At the time when Marchione chipped in Fiat witnessed a clear future as can be shown through re-shuffle of very old workforce. CASE STUDY 6: THE NOVOTEL VALUE CHAIN Question 1: What are Novotels competitive advantages? competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices.  [6]   Novotel Competitive advantages: Multi skilling: Multi-skilling is to develop staff as a team able to perform tasks and work as needed in a flexible manner, this would have many advantages for hotel management, especially in smoothing the need for certain types of staff at peak bottleneck periods of the day or evening. Standardized levels of its services: A system to monitor standard procedures was introduced in 1987 which became known as the 95 Bolts. This system was intended to be a template for learning whose standards was carried out by an internal team of inspectors who visited each hotel approximately twice each year. They worked as mystery shoppers in that they made reservations, arrived, stayed and departed unnoticed. Sophisticated marketing and distribution systems: Novotel operates within both the individual and corporate business and leisure markets. Novotel usually have special promotions and advertising themes done in different locations and in different countries with tailored promotions to local holidays and lifestyles. Partnership programs: Novotel linked programs strengthening relationship marketing; especially the supplier partnership programmes, linked with purchasing and learning efficiencies delivering both scale and scope economies. Staff exchanges: There was Exchange between countries, locations and type of customer mix which contributed to multi-culture is essential to getting customers. The exchange provides means for staff motivation especially in the industry whose labor turnover is critical. References: CASE STUDY 8: THE VIRGIN GROUP QUESTION 3: Does the Virgin Group, as a corporate parent, add value to its businesses? If so how? Corporate parent: Is a business which owns and controls the operations of other businesses by either possessing outright ownership or controlling a majority of the voting stock.  [7]   Virgin was founded in 1970 as a mail-order record business and developed as a private company in music publishing and retailing. However, by 2002, the group included over 200 businesses spanning three continents and including financial services, planes, trains, cinemas and music stores. The group succeeded on adding values to its businesses regardless of decentralization of decision making. How does Virgin group add values to its businesses? Standards: The group had standards which enabled the businesses to perform toward the same goals. There were performance reviews which made employees being held accountable for their performance as well as promotions from within. For example by using stock options, bonuses and profit sharing. Support services: This involves centralised support services. For example, providing HRM, marketing, financial, etc support services and human resource management systems were in place to keep people committed. Corporate development: Branson adopted his own personal style of management within units, boosting himself on effectively adding value to customers through employee involvement and taking their ideas. Managing linkages: In the early 1970s Branson spent his good time soliciting funds for the company to become solvent. References: CASE STUDY 11: RESTRUCTURING SONY Question 1: How many times did Sony restructure itself during the period covered by the case study? Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs.  [8]   Introduction: On 7 May 1946, Masaru Ibuka and Akio Morita (4) co-founded a company called Tokyo Tsushin Kogyo Kabushiki Kaisha (Tokyo Telecommunications Engineering Corporation) with an initial capital of  ¥190, OOOin the city of Nagoya, Japan. By the 1960s, the company had established itself in Japan and changed its name to Sony Corporation. In its milestones Sony underwent several business restructuring aiming at improving the companys focus on high potential products and expediting the decision making process to make the company more responsive to changing market conditions. Restructuring of electronics business (1994): In this new structure, the regrouping of electronic businesses were adopted getting into eight divisional companies. These eight companies are the Consumer Audio Video Products Company, the Recording Media : Energy Company, the Broadcast Products Company, the Business Industrial Systems Company, the InfoCom Products Company, the Mobile Electronics Company, the Components Company, and the Semiconductor Company. Leadership by team of executives: Here the new framework required Sony to be led by a team of executives at the top management level. The Ten-Company Structure (1996): In January 1996, a new ten-company structure was announced, replacing the previous eight-company structure whereby the previous Consumer Audio Video (AV) company was split into three new companies the Display Company, the Home AV Company and the Personal AV Company. The Unified-Dispersed Management Model: In April 1999 another change was announced aiming at changes in its organizational structure. The new framework required the company to streamline its business operations to be able to exploit the internet technology opportunities. Restructuring Efforts in 2001: Once more in March 2001 Sony provided announcement about another round of organizational restructuring. This was about transforming itself into a Personal Broadband Network Solutions company by launching a wide range of broadband products and services for its customers across the world. References: CASE STUDY 12: SAMSUNG ELECTRONICS Qustion 2 : How significant was Jong-Yong Yuns role in the change process? Change process It is an organizational process aimed at empowering employees to accept and embrace changes in their current business environment.  [9]   INTRODUCTION: Samsung is an Asian Electronic Company based in Suwon South Korea. The firm has experienced stiff competition from rivals such as Sony, Nokia, and Motorola on the basis of its revolutionary products. Jong-Yong Yuns role in the change process: Reorientation: This helped the firm to develop new capabilities. He recruited new capable employees such as managers and engineers, many of whom had developed considerable experience in the United States. Retrenchment: There was a layoff of a number of employees amounting 30,000, representing well over a third of its entire workforce. Reduction of number of factories. Discarding a Failing Strategy: Although the firm was making profits, Yun was concerned about the future prospects of a firm that was relying on a strategy of competing on price with products that were based .The success of this strategy was tied to the Samsungs ability to continually scout for locations that would allow it to keep its manufacturing costs down. Developing a Premium Brand: Having managed to cut down the losses, Yun planned to shift Samsung away from its strategy of competition which based mainly on the lower priced products. Consequently, he began to push the firm to develop its own products rather than to copy those that other firms had developed. Pushing for New Products: Through its new product development processes Yun struggled a lot to make it happen ensuring higher margins as compared to its rivals. Designing for the Digital Home: Yuns long term plan is to ensure Samsungs dominance in digital home technologies. He believes that his firm is in a better position to benefit from the day when all home appliances, from handheld computers to intelligent refrigerators, will be linked to each other and adapt to the personal needs of consumers. References: Case Study 10: Mantero Seta Spa: a strategy for China Question 1: Would you recommend Mantero Seta Spas entry into the Chinese market? Market growth An increase in the demand for a particular product or service over time. Market growth can be slow if consumers do not adopt a high demand or rapid if consumers find the product or service useful for the price level.  [10]   YES I would recommend Montero Seta Spas entry into the Chinese market due to the following scenarios: Market Growth: Chinese market promises for the stable growth of the fashion business as you can see In the mid 2000s, stable economic growth had brought substantial income to many groups of people, and with it a growing demand for the satisfaction of higher level needs. Also Upper-class and middle-class people became increasingly interested in their social life, and chose to spend money to better enjoy their spare time. There was a huge potential to sell luxury goods to these groups: 2 per cent of the 1.3 billion people living in China. Identifiable retail Distribution: The government of China had adopted a series of policies to propel the retail industry through a process of fundamental transformation. The move had sparked dramatic changes in Chinese retailing, with market growth reshaping purchasing habits. As a result in the mid 2000s there were many different types of retailing methods, based on different products and market strategy. Geographical Differences: The reasons for the differences were various. In northern China consumers made choices based on seasonal factors. Values and beliefs of people in north China were based on their imperial history and social traditions, with clear distinctions between different social groups and classes. The distinction was underlined in many ways, including clothing. People in the north were aware of their appearance, and wanted others to recognise their wealth and ability. In the south the climate was temperate; therefore consumers chose lighter, more comfortable and durable material for everyday wear. Marketing Communications: Communication processes in the fashion business focused on the brand image and the values embodied in the product, rather than on the product itself. Processes included photographs, shows, showrooms, models, displays, videos and sample collections. References: CASE STUDY 5: THE PROFITABILITY OF UK RETAILERS Question: Are British supermarkets more profitable than their European and US counterparts? Profitability is the ability to gain profit Profit is the positive gain from an investment or business operation after subtracting for all expenses.  [11]   Profitability = TR-TC ( TR = Total Revenue, TC = Total cost) Return on capital employed ( ROCE ) is the ratio that indicates the efficiency and profitability of company capital investments.  [12]   British supermarkets are profitable compared to US and other European countries because of the following reasons:- Cost of labor: Labor costs are lower in the UK due to lower social cost borne by employers. This reduces operation cost and makes the British firms to be more profitable. Technology: British companies have a lead in applying IT in their distributions systems with deliveries in small number of companies warehouses, the use of technology in distribution system reduce the cost of operation contributing to higher profits. Buying power: The British supermarkets have high buying power and tend to be more centralizing than some of the US and other European countries. This help them in reducing cost and also the British firm are more experienced and skillful in using their buying power to negotiate better terms or price from their supplier. Because they have dominated the market the British supermarkets impose the higher than a normal price to consumers (oligopoly power). Because the British supermarkets have high buying power and the use of oligopoly make them more profitable compared to the US and other European counterparts.

Features of a Financial Statement Analysis

Features of a Financial Statement Analysis TASK 1 Importance of Financial Statements All managers need to be able to interpret their company’s financial accounts as they hold valuable information about a wide range of factors that impact on the long term and short term profitability and stability of the company. By considering the various ratios below and, in particular, by drawing on trends between last year and the current position, it will be possible for the various division managers to identify where weaknesses lie and to determine what they can do in their own individual departments to improve the overall situation of the company (Fridson, 2002)[1]. Current Position of the Company In his statement, Robert assured management and staff that the company was in a â€Å"sound financial position†. A detailed review of the accounts has been undertaken, and all ratios are included in Appendix 1. Four key areas were looked at, across 2007 and 2008, as this is when the substantial changes occurred. These changes are profitability, efficiency, liquidity and stability, all of which are important to the company. Profitability has fallen dramatically between 2007 and 2008. The gross profit margin figure shows the company’s ability to control the costs of the goods that it produces. Although sales volumes could alter, it would be expected that the profit margins obtained would not alter dramatically. In 2008, gross profit margins were 36.33%, substantially less than the margins of 42.21% in 2007, which suggests that the cost of producing each item is increasing at an unacceptable level. The operating profit gives more information on how the company manages its overheads; these figures have also dropped significantly (from 20.57% to 10.56%). This is clearly partly down to the reducing gross profit margin, but also indicates that overheads are becoming increasingly problematic for the company, in terms of relative costs (Helfert, 2001)[2]. Efficiency ratios indicate how well the company is using its resources, both fixed and working capital. The ratio in relation to the efficiency of capital employed has dropped from 4.05 to 3.51, showing that the company has lost a considerable amount of efficiency in its operations and is not producing the same output with the capital employed as it was in 2007 (Friedlob, 2003)[3]. Liquidity ratios are incredibly important as these reveal the company’s ability to meet its current liabilities. Poor liquidity could cause immediate and massive problems for the company because it indicates that it will be unable to pay its debts as they fall due. The current ratio shows the ability of the company to meet all current liabilities with all current assets that it holds. In both 2007 and 2008, the figure was well in excess of the 1:1 cover, although it did drop from 2.00 to 1.70, which could be indicative of a downward trend in the company and should be looked at regularly in order to ensure that the figure does not drop further. More worrying is the quick ratio figure. This shows how readily the cash and easily available current assets could meet the current liabilities. A ratio of 1:1 is also desirable, yet the company had a ration of 0.38 in 2007, dropping to 0.12 in 2008. This suggests that much of its current asset inventory is held in non-readily convertibl e assets such as stock (Towsey, 1974)[4]. Stability ratios reveal the amount of long term debt a company is in and, where this company is concerned, the gearing has been consistently low, showing that there is not a great risk within the way the company is financing itself. Conclusions Robert was correct in stating that he felt the company was stable in the long term; however, there are considerable short term concerns, particularly in relation to liquidity, which need to be addressed urgently if the company is not to suffer short term issues. TASK 2 The Balanced Scorecard Kaplan and Norton (1993)[5] developed the concept of the balanced scorecard, which was initially created as a means of assisting management with their strategic planning. The model is two-fold, the first purpose being to improve the communications for the company (both internally and externally) and the second to assist managers in ensuring that their goals are reached. The balanced scorecard model forwarded by Kaplan and Norton works on assisting managers in having a clear strategic goal and in ensuring that the activity needed to achieve these goals is put into action, throughout the organisation. This process recognises that it is not possible simply to look at a company’s financial performance and from this to derive a set of actions that should be undertaken to improve performance, in future years. There is generally a time lag, when it comes to company performances, with inputs such as investment in machinery taking at least a few months to be seen in the financial returns. Kaplan and Norton encouraged companies to take a different approach and to look firstly at the inputs that management could make directly into the company. It is these factors that should be measured and, provided the correct strategic goal has been established, achieving these individual goals by management should ensure that the ultimate goals in terms of financial performance are met (Niven, 2006)[6]. Companies are encouraged to look at their businesses from four different perspectives when establishing their strategic goals: financial, customer, internal process and innovation and learning. The financial perspective is the one traditionally considered by organisations and includes factors such as profit growth and revenue. The management should, however, be encouraged to take a longer term view when setting strategic goals. The customer perspective is crucially important as it looks at the way the customer perceives the company and any possible changes to the customer perspective that would be needed for the company to achieve its ultimate strategic goals. Internal processes look at the way the company is run internally and how these can be adapted to help achieve the long term goals and are often related to the customer perspective, e.g. quicker lead times or more readily available stock. Finally, there is the innovation and learning aspect which directly leads into the long term growth by ensuring that the company is constantly looking for new ways of doing things, which either include efficiency savings or a better customer experience (Kaplan, 2004)[7]. The Development of Intangible Assets Introduction Intangible assets are those assets within the company that are often overlooked such as the knowledge base of the staff or the underlying strength of the information systems. When considering the intangible assets, this largely refers to the learning and innovation perspective within the balanced scorecard and can be broken down to look at jobs, i.e. the human capital and relevant expertise these individuals have, the systems capital which refers to the information systems within the company and the organisational capital which refers to the climate in which the company operates, i.e. the market place in which it is based (Wall, 2003)[8]. Intangible assets within the company Critically, the company mainly needs to consider both its human capital and its information systems. In relation to its human capital, the company has significant difficulties with its turnover, particularly within the packing division. With a high turnover of staff, it is difficult to maintain efficiency and quality in the products and makes innovation difficult as members of staff are unprepared to take a long term view. The technical department is clearly important when it comes to ensuring the maximum efficiency of the machines. Therefore, the turnover rate of 18% in relation to technicians and the seeming difficulty in recruiting new technicians is an issue that has to be looked at closely by management. Information systems are outdated within the company. Computer technology is not used adequately to ensure that information is shared between the sites. Failure to share information will result in wastage and unnecessary expenses as well as large overheads (a problem that the company has, as identified previously). Furthermore, no information is collected in relation to customer satisfaction which makes the task of improving and managing customer perceptions impossible. A fully integrated and operational information system is needed to improve both efficiency of production and customer satisfaction. How can these factors be developed? The first concern must be in relation to the employees. There is a substantial turnover of staff, averaging 12%. Direct operations have a turnover rate substantially below this, at just 5%. Critically, the direct operations and production teams have a structure of bonus payments which is generous and allows staff to receive extra payments as they become more efficient, thus encouraging staff to stay longer in their roles. Whilst the packing team recognises that it is generally less skilled, there is no incentive in relation to performance and there is clearly very little in the way of employee loyalty (evidenced by the way in which the staff shop is used). Consideration should be given to implementing a similar bonus scheme for the packers, as this would not only reduce staff turnover in the packing department but would also encourage better quality of work (Harvard Business School Press, 2005)[9]. Issues such as more flexible working patterns should be considered as the majority of the packers are female and, therefore, issues such as childcare are much more likely to be important to this section of the workforce. Benefits such as childcare vouchers may also be a good way of improving retention. Due to the skilled nature of the technicians’ role, advertisements should be placed further afield. Workers are often prepared to travel and by widening the search area the company may locate better skilled and more loyal staff for the important technical department. Investment is needed in the information technology systems. They are six years old and do not offer the necessary level of service. The systems, particularly in relation to sharing technical knowledge, must be integrated and additional automation would be beneficial to the ultimate efficiency of the company. There are also considerable uncertainties in relation to factors such as stock levels, work in progress, production costs, all of which are vital and need to be integrated into the information system (Kaplan, 2001)[10]. Conclusions In order to develop the intangible assets of the company, the focus must necessarily be on dealing with the issues in relation to employee retention and productivity as well as ensuring that the information systems adequately support the company moving forward. Both of these factors will require investment, but should amply pay for themselves, in the long run. TASK 3 Inventory Management Inventories refer to all goods and stocks held by the company, whether they are complete or not. As this is a manufacturing company, it would be anticipated that the level of inventory is rather high. However, even with this assumption, the total amount of stock being held by the company has risen dramatically to  £3,915,000 in 2008, from just  £2,765,000 in 2006 and is rightly a cause for concern by management (Mercado, 2007)[11]. Importance of Inventory This is not the only company to underestimate the importance and potential impact of inventory on the financial position of the company as a whole. A certain level of inventory is essential as the company relies on suppliers (of varying reliability) and, therefore, must build in a time lag between when the supplier delivers the material and when the goods actually leave the company. As well as the time lag, there are natural uncertainties which mean that a certain amount of stock must be held, particularly to deal with issues such as special offers from some of the larger retailers. There are also economies of scale to be had and it will be more profitable for the company to purchase material in bulk and to transport finished products in bulk (Koumanakos, 2008)[12]. Whilst all of these reasons for maintaining an inventory are valid, it is important to recognise that having too much in the way of inventory is potentially negative on the financial position of the company. The ratios suggesting problems with short term liquidity are indicative of this high level of inventory. Too much of the company’s cash is tied up in the stock, meaning that the company may not be able to meet its commitments to short term creditors. Working capital should also be of considerable interest to the company as it is another reflection of the short term liquidity of the company and is a way of looking at whether or not the company can meet its short term liabilities and operating expenses (Wild, 2002)[13]. Accounting for Inventory A vitally important way of managing and measuring working capital is to look at how many days it takes from the point at which money is paid out for the raw materials to the point when the company receives money in for the finished products. This length of time should, ideally, be as short as possible so at to ensure that the company gets a return on its products as quickly as possible. Reducing this time involves either extending the length of time it takes to pay suppliers, shortening the length of time it takes to collect money from customers or reducing the time it takes to manufacture the goods. This period of time is calculated by adding the inventory conversion period to the receivables conversion period and taking away the payables conversion period (each measured in days). The inventory conversion period is the inventory divided by the cost of goods sold multiplied by 365; the receivables conversion period is the receivables divided by sales multiplied by 365; and the payables conversion period is accounts payable divided by cost of goods sold multiplied by 365 (Toomey, 2000)[14]. By using the inventory figures for this calculation, it is easy to see whether or not the period of time is increasing and at which point there seems to be a blockage in the throughput. In the case of the company, it is clear to see that the amount of stock being kept is increasing; raw material inventory has only gone up a slight amount. However, the amount of bought-in finished goods that are being held has dramatically increased and should be an area that the management team concentrates on (Harrington, 1990)[15]. It is also worth bearing in mind that there are costs inherent with storing excess stock. It has already been recognised that overhead costs are in excess of what they should be for the company and are growing rapidly. These will almost certainly be related, at least partially, to the trend towards storing more stock. Conclusion Inventory management, despite being an issue for management teams to control, has a direct and substantial impact on the company’s financial accounts. Holding too much stock will be evident in terms of the current asset figures on the balance sheet, but also in the profit statement (Jones, 1985)[16]. Potential savings in reducing the amount of stock that is held can come not only from the availability of cash for other activities (such as meeting short term liabilities), but also in terms of ensuring that overhead costs such as storage are kept to a minimum. These factors must be considered by the management team as a matter of priority. TASK 4 Introduction Before introducing any new product, it is important that the management team consider all of the possible impacts of this introduction, both financially and practically. In this case, for example, it should also be considered that the HC007 is a new and improved version of the HC003 and the company wishes to develop a reputation for producing leading edge technology. Bringing in a new product such as this will naturally increase the company’s profile in the market and should not be disregarded as a benefit when analysing the raw figures in relation to the possible move (Rainey, 2005)[17]. The company should also consider the current level of inventory that is held in relation to HC003, both in terms of completed products and work in progress, as this may result in financial losses to the company, if these items cannot be sold on (Wilson, 2005)[18]. Theories of Product Appraisal A key way of determining the potential viability of the new product is to consider the breakeven point which will tell the company, based on the proposed sales value, how many products would have to be sold before the costs of production are covered. The breakeven point is established by taking the fixed costs and dividing them by the selling price, minus the variable costs. Therefore, in the case of the HC007, the fixed costs are thought to be 24,000 divided by 12 (18 – 6) making 2,000. On the assumption that the fixed and variable costs are the same for the HC003, the breakeven point for this would be 24,000 divided by 10 (16 – 6), making 2,400, which it is currently comfortably achieving (Daly, 2002)[19]. There are weaknesses in using this analysis. It assumes that the variable costs are constant for every unit of output and that there are no economies of scale involved. It also assumes that fixed costs are constant and would be incurred regardless of the level of production. Finally, there is the assumption that there is no wastage, i.e. all products produced are sold. This is unrealistic, as there is likely to be at least some degree of leakage. Analysis of the Hedge Clipper HC007 HC007, on the assumption that the full 4,000 prospective sales are made, would produce a total profit of 24,000. HC003, on the assumption that 3,500 units were sold, would achieve a total profit of 17,500. On the face of it, therefore, the new product HC007 would be a worthwhile addition to the product range. It should be noted that the nature of fixed costs means that they are going to be incurred, regardless of whether or not the HC007 is launched and should not, therefore, play any part in the decision making process. If this theory is followed, the profit margin on the HC007 would be 12, whereas working with the same numbers the gross profit margin for the current HC003 would be 11. This is the contribution available, through the production of these products to meet fixed costs. There is no substantial difference between the two and consideration should be given as to whether there could be a better use of the resources available within the company (Groth, 1996)[20]. An absorption or recovery rate of 300% seems incredibly high and consideration should be given as to whether the overheads in this particular area of production are viable. With such high overhead rates, there may be more productive ways to produce a profitable item, either through the use of automation or through better use of premises’ space (Kuczmarski, 1992) [21]. Careful consideration should also be given as to the prospective number of sales. The company is currently selling 3,500 hedge cutters and has predicted that the new model would generate sales of 4,000 hedge cutters. This suggests that 500 people would be expected to purchase the new product, purely because it is new and innovative. Conclusions Appraising a new product is not simply about seeing whether a company can sell the product for more than it costs to produce the product. Issues such as other opportunities that the company may be foregoing in order to produce this product need careful consideration. It is not about producing a profitable item; it is about producing the most profitable item (Constantineau, 1992)[22]. In this case, the company needs to ensure that the sales predictions are accurate and that there is no other potential new product line that would serve the company better. Appendix 1 Footnotes [1] Fridson, M.S. Alvarez, F., 2002. Financial Statement Analysis: A Practitioners Guide.  John Wiley and Sons. [2] Helfert, E.A., 2001. Financial Analysis: Tools and Techniques : a Guide for Managers. McGraw-Hill Professional. [3] Friedlob, G.T. Schleifer, L.L.F., 2003. Essentials of Financial Analysis. John Wiley and Sons. [4] Towsey, R.G., 1974. The use of operating ratios in retail management . International Journal of Retail Distribution Management, 2, 4. [5] Kaplan, R.S. Norton, D.P., 1993. Putting the Balanced Scorecard to Work. Harvard Business Review, Sep – Oct, pp. 2-16. [6] Niven, P.R., 2006. Balanced Scorecard. Step-by-step. Maximizing Performance and Maintaining Results. 2nd ed., John Wiley Sons. [7] Kaplan, R.S. Norton, D.P., 2004. Strategy maps: Converting intangible assets into tangible outcomes. Boston: Harvard Business School Press. [8] Wall, A., Kirk, R. Martin, G.,2003. Intellectual Capital: Measuring the Immeasurable?  Elsevier. [9] Harvard Business School Press, 2005. Retaining Your Best People. Harvard Business School Press. [10] Kaplan, R.S. Norton, D.P., 2001. The Strategy-focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. Harvard Business Press. [11] Mercado, E.C., 2007. Hands-On Inventory Management. CRC Press. [12] Koumanakos, D.P., 2008. The effect of inventory management on firm performance. International Journal of Productivity and Performance Management, 57, 5. [13] Wild, T., 2002. Best Practice in Inventory Management. Institute of Operations Management,  Butterworth-Heinemann. [14] Toomey, J.W., 2000. Inventory Management: Principles, Concepts and Techniques. Springer. [15] Harrington, T.C., Lambert, D.M. Vance, M.P., 1990. Implementing an Effective Inventory Management System. International Journal of Physical Distribution Logistics Management, 20, 9. [16] Jones, T.C., Riley, D.W., 1985. Using Inventory for Competitive Advantage through Supply Chain Management. International Journal of Physical Distribution Logistics Management, 15, 5. [17] Rainey, D.L., 2005. Product Innovation: Leading Change Through Integrated Product Development. Cambridge University Press. [18] Wilson, R.M.S. Gilligan, C., 2005. Strategic Marketing Management: Planning, Implementation and Control. Butterworth-Heinemann. [19] Daly, J.L., 2002. Pricing for Profitability: Activity-Based Pricing for Competitive Advantage. John Wiley and Sons. [20] Groth, J.C. Byers, S.S., 1996. Creating value: economics and accounting perspectives for managers. Management Decision, 34, 10. [21] Kuczmarski, T.D., 1992. Screening potential new products. Strategy Leadership, 20, 4. [22] Constantineau, L.A., 1992. The Twenty Toughest Questions for New Product Proposals. Journal of Consumer Marketing, 9, 2.

Communism Vs Democracy :: Communism Essays

Communism is an original system of society, quite different from Democracy in many ways. While total democracy is not widely spread, many forms of it are prosperous throughout the world today. One of the first and major differences between a Communist and Democratic government is their contrary economic systems. In a communist government, the community owns the major resources and means of production. The goal of such a system is to prevent any one person or group of people from becoming radically rich, while others are extremely poor. The system attempts to eliminate lower class by balancing the wealth between rich and poor, therefore giving everyone equal pay and ownership. Unfortunately, this results in an increased lower class. However, in a Democracy, free enterprising is permitted, and smiled upon. ? Here, free enterprising helps the economy to flourish. People can organize their own businesses and receive their own profits if it succeeds, or debts if it fails. In this system, the harder a person works, the more money they receive, allowing them to ‘make ends meet.’ The downside to democracy is that people can get a high paying job through education, but may work just as hard at a lower paying job and receive less money. As Winston Churchill once said, "The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries." Generally, Democracy’s seem be more successful economically. In a democracy, money is the most dominant incentive. On the contrary, in a communist government, a person can work a million times harder than the person sitting next to him, and receive equal pay. This results in no incentive on the part of the worker whatsoever. When there is nothing to achieve by working harder, people become slothful, which does little good for a country’s economy. In most attempts, past and present, communism has failed economically, whereas democracies have a commendable success rate. Communism is most widely taken up by Third World countries striving for national independence and sudden social change (Russia, Cuba, and Northern Korea). Forms of democracy however, are usually exercised by countries, which have a long-range goal to succeed, or improve economically (Britain, U.S.A.). Most widely first heard of through Friedrich Engels and Karl Marx’s Communist Manifesto, communism hasn’t been around nearly as long as democracy, which is first known to have existed in the city-states of ancient Greece and Rome.

Amy Tans The Joy Luck Club Essay -- Essays Papers

Joy Luck Club The Joy Luck Club, by Amy Tan, is a powerful portrayal of four Chinese women and the lives of their children in America. The book discusses the conflicting cultures between the United States and China, and how men treat women throughout their lives. People living in the United States usually take for granted their roles as a male or female. The culture of each country shapes the treatment one receives based on the sex of the individual. There are obvious differences within the different cultures. These differences show themselves in the work force, the distinct tasks performed in the home, and the privileges one receives in society. In the work force, the women of America hold many positions of importance. They are usually treated as equals with men and there are few jobs from which they are excluded. In China, women are expected to stay at home and are not permitted to be in a work force that is held exclusively for men. The women of America receive fair wages and have earned the right to work with men. In China, women are assigned the role of housewives and must stay at home to clean the house and raise the children. Women in America receive educations that will prepare them for the high paying jobs of a professional. The women in China are known for taking orders from their husbands. Another feature that is found to be different in China from America is the different roles women take in the home. The author explains that a Chinese woman is expecte...