Critical Thinking 2 Essay Example | Topics and Well Written Essays - 500 words

Critical Thinking 2 - Essay Example Managing earnings is a commonly used strategy that bears many controversies on moral grounds. As matter of fact, managers differ on whether the act is ethical or unethical and only used as the last resort. Managing earnings barely refers to transferring earnings of one period and reporting them in a different period. For that reason, the actions results to nominal rather than real positive benefits. Remarkably, managers only use it lure a positive report as per the specified period. Therefore, managing of earnings is totally unethical as it manipulates the information that the reports provides. Managers understand this fact and thus consider manipulating earnings as only a short-term strategy with majority expecting an advanced long-term consequence. Neither the law nor GAAPs find managing earnings as an inappropriate measure and thus the decision on whether to use it or not is solemnly made by the managers. Literally it happens that every manager has used any of the earning managing options at a time. Though manipulation of operation expenses seems to a best measure, especially when used to reduce earnings, as argued by managers, all measures have one limitation in common. They favour the current report by hiding or misinterpreting crucial information necessary for mutual correlation of all stakeholders (Ketz,  2006). Worse though, these stakeholders are the victims of any misfortunes accruing from the manipulation process. I that perspective, manipulation become unethical as it serves the needs of the manager at the expense of other stakeholders. Though a perfect short term solution adjustable in the long-run, that maybe in line with organisations, the fact that managers are short lived in the organisation as compared to sta keholders, creates some sense of the dilemma addressed in the agency theory.

Ruger Clinic Essay Example | Topics and Well Written Essays - 1250 words

Ruger Clinic - Essay Example There are various advantages of cost volume profit analysis which medical or health care industry can exploit to become more efficient at analyzing different levels of activity. It can then use the optimal activity level to increase its profitability. Hence we can say that cost volume profit analysis can be used to enhance the profitability of the health care industry. A medical company which is diversified in various different operation or have different departments can use it to see if operating on a large scale will be more efficient and whether or not it is worth putting more time and effort into the business. Similarly, there are chances that fixed are less than variable costs for a department. However, this will be only visible after CVP analysis, whether or not we can start a new department, it is feasible or not. Hence, a medical company will have to use CVP analysis to look at the profitability of a new department if they plan to diversify its services. As we know that moder n machinery is pervading the health care industry, a lot of investment needs to be done. Hence, this implies long-term commitment with specialized labor (doctors, surgeon, support staff etc) which means heavy burden of costs on a firm. However, CVP analysis is a toll that can be used by these firms to assess how long it will be before they will be able to cover their costs and start making profit. This is important when you have more than one alternative, and you look CVP to choose the best option, where cost recovery is fast and profit-making potential is highest. Similarly, there are various assumptions that we have to make when we go about doing CVP analysis. One such assumption is that fixed remain constant. This may not be true, but it is easier for managers in the field of health care to plan ahead, and as discussed above, it may help them to choose the best alternative. Machinery improves efficiency, and medical-service managers can use it to convince their manager or investo r to attract investment by showing them CVP results. Capitation is a fixed flat payment made to a health-care services provider for providing service to a particular segment or defined population. These payments are made on per capita basis that is calculation is done on per-person basis and are made monthly or as the contract states. The three most widely used methods of capitation are fee-for-service, cost and demographic approach. In the fee-for-service approach, the revenue line is mostly upward sloping. It starts from zero as when there is zero level of activity, there is no revenue for the health-care service provider, but it goes up with the level of activity. The higher the number of people to whom service is provided, the greater the revenue. In the cost approach, rather than a fixed fee is charged, the company charges total costs that are incurred in providing health care services, and then that fee is charged to the client. This approach can be referred as "pay for all approach and was very common in traditional capitation payments. In demographic capitation, pharmacists are only responsible or contract to provide their services to people of specific age, gender and geographic location. This is done to buffer them from unexpected disease found in particular demographic group and to make sure that they do not suffer as a

Financial ratios Essay Example | Topics and Well Written Essays - 500 words

Financial ratios - Essay Example There are different ways in which financial ratios can be improved by the firm and hence its performance. However, it is critical to note that financial ratios can also be improved with the help of creative accounting techniques such as use of different depreciation methods, inventory value methods etc. Financial ratios are typically chracterised into five groups and each group consists of different ratios that outline the performance of the firm in that category. For example, liquidity ratios comprises of current ratio as well as acid test ratio. In order to improve upon the liquidity ratios of a firm, a firm can discipline its use of working capital. Since liquidity ratios mostly indicate the firm’s ability to pay off its short term liabilities with its short term assets therefore it is really important that both the current assets as well as current liabilities are managed in optimum manner. In order to improve this ratio, a firm can decrease its reliance on the short term finance and shall encourage the use of internally generated funds to finance its short term working capital requirement. Since current assets are considered as non-productive assets it is therefore important that a balance must be achieved between the current assets and current liabilities to bring the ratios in most favorable condition. Similarly, efficiency ratios indicate the efficiency with which the assets of the firm are managed by the managers. To improve the efficiency ratios, a firm can further tighten its credit extension policy to improve its receivable turnover. This can also be achieved by making the sales activity more robust so that inventories are rotated more frequently rather than piling them up after their production. A higher inventories turnover therefore indicates the ability of the firm to convert its inventories into cash or receivables through sales generation. Profitability ratios can be

Strategic Marketing Planning of S&W and Makatume Assignment

Strategic Marketing Planning of S&W and Makatume - Assignment Example The high consumer demand gives the opportunity to the company to charge higher prices, be better placed in retailers' shelf space and have co-op advertising. Weaknesses = its costs are high since its old production plants are in urban areas whereas labor costs are high. Another weakness is that there is a market confusion between it's professional and consumer tools. The distributors, on the other hand, feel that the company has abused its market position. A further weakness is that S&W is not present in the fast-growing cordless segment. Opportunities = Makatume is locked into lower voltages so there is enough space for S&W to enter the high voltage space. There is also space for the lower voltage market since apart from Makatume, the other players are small companies (domestic and foreign niche competitors). Makatume's position was also due to the favorable exchange rates but the exchange rate forecast for the next years is not that favorable. Threats = Makatume has a good reputation in tradesmen for its professional tools. Makatume follows an aggressive strategy and its aim is to become the No2 player in the US market. It has also a dominant market share in the growing cordless segment. The primary step will cost reduction so as S&W can become more competitive and survive competition from cheaper producers such as Makatume and the Chinese. The production plants through offshoring should move to countries where labor costs are lower. However, S&W should take care that the quality of products manufactured in foreign plants should be equivalent to the ones produced locally. The old production plants, on the other hand, could be used for other business purposes (e.g. premises) or at least they could be rent.Another weakness is the market confusion for consumer and professional tools. Since S&W advertises heavily then it can make a clear positioning of the above tools in its advertisements. There should be market researches done prior and post the advertising campaigns which will check the degree of confusion in the minds of consumers.  

An Analysis of the Effectiveness of Sustainable Design Essay

An Analysis of the Effectiveness of Sustainable Design - Essay Example The balancing of these aspects in the new product development design is the outlook of ‘Sustainable product development and design’. â€Å"To create sustainable products and services that increase stakeholders quality of life, whilst at the same time achieving major reductions in resource and energy use, will require a significant emphasis on stimulating new ideas through higher levels of creativity and innovation†- e generation Business Learning Centre. Thus it becomes evident that creating new designs may need increased creativity as well as the fullest involvement form the varied strata of people, if new solutions and designs are to be generated which will substantiate the Sustainable Product Design Development. In general ‘sustainable development’ is to be seen as a basic human concept dealing with the kind of environment the people would like to live in. Sustainable development is a strong image but a provocative one. The best place to get good suggestions on the sustained development is the ‘customers’. Many companies have forgotten to talk to customers but have focused inwardly on the technological and improvements required for, primarily eco-design using less energy and less components etc. In many cases such suggestions may not be the right solution but nevertheless, it can be demonstrated that new ideas can reach marketplace if the conditions are right.† Quite understandably, the majority of people do not understand the academic concept of sustainable development. Indeed, research for the Department of Environment in the UK, indicated that sustainable development was seen as a government construct to keep people out of environmental issues† Marti n Charter and Anne Chick (1997). Keeping this context in view, this paper attempts to cover an overview of creation of new sustainable product designs to manufacture products, services and

Customer insight project Research Paper Example | Topics and Well Written Essays - 2500 words

Customer insight project - Research Paper Example Marks & Spencer (M&S) has been providing clothing, home products and food products to customers for over ten years (Wood & Finch, 2009). This period necessitates continued understanding of the customers’ loyalty and how to improve the weak areas. Understanding customers loyalty is crucial to the business management as it assist the management in decision-making (Stafford, 2009; Chislett, 2009; Willsher, 2011). A marketing research was carried out to assess the degree of customers loyalty. The research was strategic with the goals of providing information needed to remain at the top in the market. It was expected to give insights of the customers that could be used by the business manager to improve the business market power. This work reports findings from the marketing research conducted. The aim of the study was to understand and improve customer loyalty for Marks & Spencer (M&S) on the service delivery and products offered. In meeting the goal of the research, the study seeks to answer the question "how do services and product quality offered enhance customer loyalty for Marks & Spencer†? The core goal of the study was to understand customer’s loyalty and how to improve the degree even further in regard to Marks & Spencer products. The study proposes the following specific objectives. This study was a qualitative market research executed through a market survey. Semi-structured questionnaires were administered to the selected respondents through face-to-face interviews between them and the trained enumerators. The above ensures collection of accurate data from the respondents interviewed (Saunders, Lewis & Thornhill, 2012). Questionnaires with Likert scale scales employed with the aim of quantifying how product and service provision enhances customer loyalty in regard to Marks & Spencer. The questionnaire included an introductory section, a detailed description of Mark & Spencer and the aim of the study. The questionnaire also

A critical appraisal and evaluation of the constraints and legal Dissertation

A critical appraisal and evaluation of the constraints and legal protections for foreign investment - Dissertation Example It is for this reason that states and international communities strive towards organizing transactions with the objective of extracting the maximum from foreign investments. Moreover, states and businesses aim at protecting their investments because of the fact that foreign investment is characterized with the internal and external movement of capital turnover and exploitation. Many developing countries believe that foreign investment is an urgent need for achieving economic growth and adopting better technology in their production processes. Developed nations can exploit their technical expertise by investing their capital in developing countries and thus make optimum use of the resources available in these countries. But this need cannot be effectively achieved unless an appropriate environment is created for foreign investments. This implies that foreign investments cannot be made efficient unless a stable process is applied to carry out actions and transactions in a suitably crea ted environment that is free from fear and uncertainty. Additionally, such needs require the implementation of the initial provisions in terms of the existence of such circumstances in order to effectively deal with hurdles that could result in scaled investments and contractions. This is necessary in order to alleviate the intensity of such problems, which is possible only if a legal framework is determined in carrying out the required operations. This paper aims at achieving this goal by examining the varied constraints that obstruct or prevent the smooth flow of foreign capital. It is also important to examine and search for protective measures in terms of legal security for domestic investments. This is best done by balancing conflicting commercial interests independently and without bias and without violating the legitimate rights of the contracting parties. In considering the given perspectives, a critical appraisal and evaluation of the constraints and legal protections for f oreign investment will be made by making a descriptive and analytical appraisal of different issues. The paper will first analyze the phenomenon of foreign investment in terms of legal and economic concepts. Next, an investigation will be done of the emergence and the development of the phenomenon of foreign investment. Finally, the role of foreign investment in the development of trade and the economics in different countries will be discussed. An acknowledged belief in regard to foreign investments is that the advantages accruing from them depend on how they are dealt with by the host country. Researchers have made qualified propositions to the effect that properly regulated foreign investments have the potential to create economic growth, employment, technology advancements, skilled manpower, market accessibility and development of the economy. It is necessary to balance the negativities of foreign investments with their positive effects by adopting applicable systems of control and taxation. Thus, it can be said that foreign investments can be good or bad for any economy, depending on how they are dealt with. This viewpoint is being increasingly accepted in many countries. It is believed in this regard that foreign investments are indispensable for the development and growth of developing economies, no growth is possible without foreign inflow of capital, foreign investments bring efficient ways of managing resources, technologies, competition and accessibility to international markets. Developing countries are not being forced by any entities to seek foreign investments but their governments need them. The private sector is