Wednesday, August 7, 2019
Traffic Movie Essay Example for Free
Traffic Movie Essay I felt that the movie, â€Å"Traffic†(Soderbergh, 2000), was very informative on the subject of drugs. I was able to see three different stories concerning drugs and the drug trade, including the drug dealers, the people who abuse them and the narcotics officers who are paid to get rid of them. Each story was able to peak my interest, and taught me something different about the drug scene and some of the people they destroy.            I found it shocking to realize just how powerful the effects of drug dealing can be on the family of individuals who take up selling drugs, as their choice in careers.            When Carlos Ayala was arrested, his pregnant wife, Helena didn’t realize what was going on. I felt bad for her, knowing she had the baby to care for and when she is threatened by Carlos’s associates and followed by DEA agents, it was hard to believe that she fell into the same trap as her husband.            Helena’s choice in taking over her husband’s business didn’t seem like a very good idea. I figured that she would have learned what can happen to a person who deals drugs, by watching the events that occurred when Carlos was dealing drugs.            I thought that Michael Douglas was perfect for the role he played as the judge, who is head of the President’s Office of National Drug Control. It was surprising that such an important person, such as a judge, who was paid to deal with drug dealers and abusers, so often, would have a young daughter who would be victimized by drug use. It shows that drugs can destroy many different types of people.            Crack cocaine is such a strong drug and it was hard to believe that Caroline, the judge’s daughter, would dare try such a dangerous drug.            Caroline and her boyfriend, I felt were going too far when they tried to dump their friend at the hospital, after they had overdosed on drugs. It showed that their fear of being caught for using drugs, and possibly being arrested was more important to them than remaining with their friend, who could possibly die from taking too many drugs.            In the third story, I felt the interrogation of Eduardo Ruiz was insane. Ruiz was ready to rat out his friend to save his own skin, which shows how being involved in the drug trade can cause you to turn on anyone, at anytime. It’s very frightening to think about how many horrible things can occur from using or dealing with illegal narcotics, but it is very educational and teaches about the hardships of drug activity from all walks of life.            Drugs were responsible for changing so many lives in this movie and some of them could have been so happy, if they wouldn’t have chosen the wrong path and resorted to greed and addiction.            Overall, I think this movie was worth watching and I feel that everyone could learn so much about the bad effects of drugs on our society. Some of the scenes aren’t appropriate for smaller children, but I think it’s a good idea for teenagers and adults to watch this movie so they can see what can happen if you have anything to do with illegal narcotics.            I felt that â€Å"Traffic†was a very good movie and I would recommend that parents allow their teenagers to watch this movie and learn from other’s mistakes.                                                   Reference Page Soderbergh, Steven. (2000).â€Å"Traffic†Polygram USA Video.
Tuesday, August 6, 2019
The International Globalization Vs Local Brands Fashion Essay
The International Globalization Vs Local Brands Fashion Essay Introduction: Globalization is an inevitable phenomenon that is leading the entire world towards becoming one market, a global village. With the world becoming a single market, globalization has had a major contribution in enabling the organizations worldwide to step out of the restricted domestic markets and to set up their operations across the globe with confidence. This has largely led to a decline in the importance in national borders and a greater emphasis on what the consumers actually demand; be the consumers located in the very country in which the organization exists or an entirely different part of the world. Globalization has had a huge impact on the branding strategies of international companies. Since the early 1990s many multinational companies, such as Unilever have moved from a multi domestic to a global marketing approach including global branding strategies (Schuiling and Kapferer 2004). Increased consumer knowledge and awareness have played an important role towards this globalization of markets and escalating the power of global brands such as Pepsi, Apple etc. As the competition in global arena increase, organizations find it important to serve international consumers along with local ones to achieve competitive advantage. However for some products and services the tastes and preferences of consumers in different nations are beginning to converge on some global norm (Holt 2002). From a consumer perspective, however, reactions to the prevalence of global brands seem to vary among the different customers. On the one hand, consumers seem to value and admire global brands and regard such brands as a status symbol. On the other hand, global brands are often criticized for threatening the local differences and leading to a loss of cultural identity. Since the trend of consumption by our people is changing, people are becoming more prone to buying the international brands rather than the local ones. Consumers feel proud in purchasing imported goods and this has increased the power of international brands. Apart from just focusing on where the product has actually been produced, consumers consider various other factors when making purchasing decisions. It has been noted that consumers are reluctant to buy goods made in less developed countries as they perceive them to be low in quality. Brands have also been perceived as being a status symbol and this thinking is most common in young people. Literature review There have been a number of researches done on brands. A definition of a brand by The American Marketing Association (AMA) in the 1960s (Keller, 1998) is â€Å"a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and differentiate them from those of competitors.†Research has proven that consumers use brands to help them make decisions about the product they choose (Ger et al., 1993). De Chernatony and McWilliam (1989) stated that successful brands, be it domestic or international, will have some unique proposition that is satisfying consumer needs. Powerful branding will also have a positive impact on consumer franchises. As Kolter et al. (2002) suggests that powerful brands command a strong brand loyalty from their consumers where these consumers perform in a repeated buying and ignore alternative brands that may be at lower prices. Recent researches suggests that influences on foreign product evaluations may be considerably complex, resulting from an interaction of various different factors such as ethnocentrism, price, perceived quality, country of origin, status, fashion consciousness, advertising campaigns etc. Ethnocentrism Research by Kinra (2006) states that ethnocentrism, which is a psychological construct which a makes a product more favorable in the minds of the consumers simply because bit is made in their own country. Ethnocentrism is when consumers think their culture to be superior to other cultures (Summer, (1906:13). Highly ethnocentric individuals tend to accept things culturally similar and reject things culturally dissimilar (Crawford and Lamb, 1981; Heslop et al., 1998; Wang and Lamb, 1983). In a study conducted by Lantz and Loeb (1996) which focused on the relationship between consumer ethnocentrism and imported/international products, also found out that consumers who are highly ethnocentrism have more positive attitudes toward products from countries with similar cultures. Highly Ethnocentric consumers believe that purchasing local brands promotes patriotism and they accuse foreign brands of being a potential threat to countrys economy and employment level. They also prefer local brands because of their better understanding of local needs. Quality Quality is a trait which is very hard to define, because it is a very subjective term. Perceived quality is the perception of a consumer about a products excellence. Research proves that most consumers perceive international brands to be of higher quality and greater prestige.(e.g., Nguyen, Barrett and Miller 2005; Steenkamp, Batra and Alden 2003). If a brand is perceived as globally available, consumers are likely to attribute a superior quality to the brand, since its international acceptance is seen as a sign of its high quality. (Han 1989) According to Iglesias and Guillen (2004), consumers pass five phases of purchase process and the first phase is that the consumer perceives the product with the consideration of its availability, quality, price and the marketing activities. The consumers will make a comparison between brands to other alternatives and then make a decision. This will then either leads to the action of purchase or not to purchase that certain product from a certain brand. Country of origin he country of origin will also have a deep impact on the consumer preferences. The country of origin effect has been defined as influences, be it positive or negative, that a products country of manufacture may have on consumers decision (Elliott and Cameron, 1994). It is related to different stereotypes which are attached to a countrys product by consumers. Majority of the studies have supported a strong direct relationship between the â€Å"made -in†label and perceived quality of the product.. The findings indicate that consumers hold stereotyped images of certain countries and that these images affect their perceptions about the country. These stereotypes vary from country to country. Products from developed and highly industrialized countries are evaluated more positively than products from developing countries. Moreover, attitudes and perceptions of consumers toward brands and products will depend on categories, for instance, electronic goods from Italy may be perceived as a poor quality but Italian clothing would be perceive as fashionable and high quality (Bikey and Nes, 1982). This would be differently perceived with Japanese brands as Japanese electronic goods would be perceive with positive attitudes and Japanese clothing will be negatively perceived. Price Price is considered one of the most important factors affecting the consumer perceptions of a brand or product (Hansen, 2005). Researchers found out that once consumers perceive a price difference between local-owned and foreign-owned brands, price dissimilarities begin to affect their preference for local-owned brands. Therefore it is imperative that we test the impact of price against consumers ethnocentric tendencies to determine at what point price becomes more important to consumers than all the other factors mentioned. Consumers need a reference price as a cue for evaluating the price of an observed product/service. There are two forms of reference price an internal one that resides in consumers memory (e.g. past purchase) and an external one that is formed during the purchasing process (e.g. price comparison between brands while shopping) (Mazumdar and Papatla, 2000). If consumers perceive the local-owned brand as more expensive than the foreign-owned brand, but its quality i s similar to the foreign-owned brand, they should prefer the local-owned brand less because they perceive a higher loss with the local-owned brand. In other words, the price difference between local-owned and foreign-owned brands acts as a moderator between perception of brand ownership and purchase intention of local-owned brands Social status Authors have stressed that consumers may prefer global brands because of associations of higher prestige or because the ‘elite class use it (Schuiling Kapferer, 2004; Steenkamp, et. al., 2003). Global brands may have a higher prestige than local brands due to their relative scarcity and higher price. Critical review of the key literature In todays world, consumers are faced with an overwhelming amount of brands available for the same product category. More than hundreds brands, both local and international, may be available for products like clothes, automobiles etc. When consumers are making their purchase decisions, they may evaluate brands on different factors such as variables like price, quality, and country of origin, ethnocentrism, and social status. Price and quality are sometimes perceived to be correlated. A high-priced product may be perceived of being high in quality and this may be because of such image created by manufactures through advertising. Similarly, a global brand may perceive to be of superior quality as quality is believed to be a prerequisite for international acceptance. Consumers today are increasingly aware of products made in both developed and developing economies. Goods from third world countries may perceive to be of lower quality standard. Consumer perceptions and opinions may also depend on the product category for e.g. Italian clothing is generally perceived to be more fashionable (Bikey and Nes, 1982), while automobiles produced in country like USA may be perceived as of better quality than an Indian manufactured automobile. However, sometimes consumers believe that local organizations have a competitive edge over the foreign competitors as they have a better understanding of what consumer wants which are shaped by their cultures. While other patriotic consumers believe that buying foreign brands may hinder the growth of their local organizations. Brands like Apple, Sony, Pepsi have empowered consumers and these brands are capable of evoking associations and feeling to an extent that they have now become an important part of our lives. Due to increasing peer pressure, these foreign brands have now become a necessity for every young person. Wearing Nike shoes may be considered as fashionable and trendy in universities. So the need to be accepted by a particular social group may compel young people to buy international brands even when local brands are available at the same price. Research Question Q) Why do consumers prefer international brands to local ones? Independent variable: Price Quality Country of origin Consumer ethnocentrism Social status Dependent variable: Consumer preferences Research methodology This study is a descriptive study and more of a qualitative nature and was conducted to identify and evaluate all the factors considered by consumers that make international brands more favorable to them. The sample for this research included the 200 consumers whose ages ranged from 16-24 years. Convenience sampling was used for this study. Questionnaires were used to collect primary data. The questionnaire comprised of closed ended questions and Likert scale is used in most of them. We classified our population according to gender. Frequency distribution and bar charts have been used to evaluate the results. In addition to this, the means of different factors that influence consumers preferences of the local and global brands were used to determine which factors are considered the most by consumers when purchasing different brands. Limitations As the data was gathered through convenience sampling, the results cannot be generalized. There is also a possibility that the respondents might answer the questions dishonestly or half-heartedly, leading to biased findings. Apart from these limitations of our study, the fact that the data was only collected through questionnaires provided us with the frequencies as to how many people would purchase the global or the domestic brand and what factors are rated as the most important by these people, but the reasons behind their buying patterns and preferences remain unknown because these people were not further interviewed. Findings and Discussion Question 1 Do you use international brands products? According to the data collected, 72.5% of the people used international brands of which 60 were male and 85 were females. 18.5% of the people questioned claimed to use international brands occasionally, whereas, 9.1% of the people claimed not to use global brands at all. As indicated in the pie charts above, 18.5% of the people who used the global brands sometimes included 28 males and 9 females, and those who did not use the global brands consisted of 12 males and 6 females. Question 2 If the price of a foreign brand and local one is the same, which brand would you prefer? The purpose of this question was to evaluate and discover how important a factor such as price is in determining whether the consumers would go for the domestic brand or stick to the global one if both the products were in the same price range. The results found out that 76% of the consumers would go for the international brands whereas 24% would still purchase the domestic ones. Question 3 How important is the country of origin, of the product, to you? This question was asked to discover how much importance the youth lay on the country of origin as a factor when making a purchase. The results revealed far different results compared to what had been stated by the review of previous researches done. As indicated in the graph, the youth was found to be mailnly ignorant of the country in which the brand was manufactured. Majority of the consumers (76% males and 88% females) did not consider it as significant a factor as to affect his or her purchase decision. Question 4 Do you consider the quality of the product when purchasing a good? A good quality product indicates durability, reliability as well as good appearance and featuresThe review of the existing literature suggested that quality of the product and its price were rated by consumers as the most significant factor in purchasing decisions. This was supported by our empirical findings that showed that 87.5% people on average considered the quality of the brand above all the factors. This included 83 males and 92 females. The rest of the people, according to our research findings, did not place that much emphasis on the quality of the product alone. Question 5 Do you think that the purchasing patterns depict the social status of a person? Question 6 It is said that people buy international products so that they can be accepted in a particular social group. Do you agree? The results to these two questions confirmed the general perception that exists in our society, that is, the global are purchased as a status symbol. The youth mainly bought foreign branded products to be able to fit in a particular social group. This occurs largely because peer pressure tends to be high at this age, and most of the people find themselves being victims of inferiority complexes. The results to the first of these questions indicated that on average 75% of the youth (71 males and 79 females) purchased the international and local brands as a status symbol. These results were further enhanced by the results to the next question, which showed that 72% of the males and 68% of the females did, infact, believe that the people purchased the international brands to be able to fit in a particular social group. Question 7 Do you consider current fashions and trends while purchasing a good? Owing to education and information disseminated through the media, consumers in our soceity are becoming increasingly aware of the current fashions and trends prevalent even in other parts of the world. Following the current fashions and trends have become a norm in our society. Consumers now make their purchases according to the ongoing fashions,and this assumption has been supported by our findings, which shows that 92% of the females and 85% of the males considered fashion and trends when making a purchase. There was not a single female in our sample who did not pay attention to the trends and styles when going for a purchase. Moreover, these results also indicate that females are more fashion conscious than their male counterparts. Question 8 Do you think buying international brands affect unemployment in our country? The purpose of this question was to take the point of view of consumers as to whether the existence of foreign brands affect unemployement rate in our country. The results revealed that on average 80.5% of the consumers believed that the businesses are affected by the international brands and that unemployment increases as a result. This figure included 88 males and 73 females. However 10.5% of the people, on average, believed that this case only occurs sometimes, whereas 9% of the people did not believe that unemployment is related to the existence of foreign brands. Question 09 If an international brand is not easily available, would you go for the domestic brand? As the above graph indicates, the answers to this question represent differences in the opinions of the males and the females as to their willingness in substituting the domestic brand with an international brand in the case of non- availability of the international brand. The results revealed that whereas 57% of the males respondents claimed that they would go for the domestic brand if the global brand is not accessible, 78% of the females claimed not to compromise and do with the domestic brand, even if the international brand of their choice is not available. This may be indicative of the level of brand loyalty that females possess. In addition to this, only 16% of the respondents, on average, claimed that they would sometimes opt for the domestic brand in the case that the international brand is not accessible to them. Mean number of people ( in percentages) Yes Sometimes No Price of the product 76% 16.5% 7.5% Country of origin 4.5% 13.5% 82% Quality of the product 87.5% 7.5% 5% Status symbol 75% 15.5% 9.5% Current fashion and trends 85% 10% 5% Ethnocentrism 60% 20.5% 19.5% The table above compares the means of the different factors considered by consumers when selecting global brands over the local ones. Conclusion After researching on the preferences of consumers for the global and foreign brands, and finding out what factors are considered the most important by consumers when making their choices, it has been concluded that consumers do purchase the global brands and give preference to them. Consumers gain increased knowledge about international products by television. Our findings show that quality was the foremost factor that affected consumers decision about a product, with fashion and trends being second and price was rated the third most important factor in influencing consumer choice. Moreover, a foreign brand is usually regarded as a symbol of prestige and social status and as a means of being accepted in a particular group. Because of this extreme peer pressure at this age, the youth often views the use of such a foreign brand as a necessity rather than a want. Because of this extreme peer pressure at this age, the youth often views the use of such a foreign brand as a necessity rathe r than a want. Consumers were also hardly aware of how global brands affect the local economy and country of origin, as a factor in influencing consumers choice of the brand was hardly a significant factor. However, in spite of the fact that for some products the local brands are now available in the relevant price range, and quite well meet the quality standards too, nevertheless the consumers of our country find some sort of inner satisfaction in spending money on the global brands. For reasons termed brand loyalty, and even for the reason of social status, our locals continue to regard and look up to the foreign branded products.
Monday, August 5, 2019
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.
Sunday, August 4, 2019
Classical Criminology Essay -- Crime Deviance Psychology Essays
Classical Criminology The classical school of criminology was around in the eighteenth century. It came abount in a time when the previous dominent spiritual look at defining crime and criminal behaviour was being challenged by a newer naturalistic approach of the social contract theorists. The classical school was the established ideas of monarchs, fedual lords and the fathers of the church. The main pioneers of the classical school were Cesar Beccaria ( 1738-1974) from Italy and Jeremy Bantham from Britain (1948-1832). From them writing their theories in the eighteenth century they established the essential components of the rational actor model. They both shared the idea that crime and criminal behaviour could be understood and controlled by human nature. The classical school was not intrested in studying crime and criminals, it got its theorys from law making and legal processing. The new ideas of '' enlightenment'' philoshefers were Montisque, Rasseau, Voltaire, Thomas Aquins and Locke. The fundermental principles of the classical school are made up of four main things. These are, free will, rationality, self-intrest and responsibility. Free will - People thought that god made people commit the crime, the classical school thought that people are not forced into commiting crimes. They believe that its our choice to behave in a criminal or non criminal way. We have a range of choices, and it is up to us if we want to break the law. Rationality,- This is where we think about each pro and con of each action we take, and we think about what we are doing. Self-intrest.- The classical school believed that we were all born s... ...present the state. In proportion to all this, the law must specify the relationship between law and the punishment given. The Punishment must come very soon and as quick as possible after the crime has been commited. The judge's and the jurys administer the law and punishment and interprate the law. Beccaria's theorys have a huge impact on modern criminal law. The idea of free will is built into many legal codes. Jermy Bantham was a philoshopher and a leading disciple of Beccaria. He too thought that human nature had some place in people becoming criminals. He too was a believer in that people would commit crime to minimalise pain and maximise pleasure. Bantham believed that it was incorect up-bringing that caused people to commit crime. Works Cited Roger Hopkins Burke. An Introduction to Criminological Theory
Saturday, August 3, 2019
Media Advertising - Societal Conformity and Advertisement of Cigarettes
Societal Conformity and Advertisement of PALL MALL Cigarettes Sloan Wilson did not publish The Man in the Gray Flannel Suit, a classic on 1950's middle-class conformity, until 1955. But, by July 1953, PALL MALL cigarette advertisers appear aware that "society seemed to reward those who lacked rough edges and eschewed eccentricity" (Blum 794). This conclusion seems justified by a TIME magazine advertisement. Here, these promoters apply this conformity principle and other advertising techniques to a specific socioeconomic group. They seek to lure the expanding male, middle-class audience by presenting indecorous fun, an enticing social situation, and smooth smoking delight all stemming from their product. The advertisement's rich red coloring immediately strikes a viewer with exciting and salacious overtones. The red lettering, border, cigarette package, and swimsuit all emphasize social and physical pleasure. The other colors' absence only strengthens the red coloring's implications. Prominent curving lines support the coloring's implied connection between enjoyment and the product. The foreground woman's curvaceous waist, chest, shoulders, hair, and cheeks give the scene a fun and lively feeling. Further in the background, the other women's similarly curved bodies also emphasize the cigarette's fun. Even the arching beach umbrellas portray such a feeling. Finally, the small boat's billowing sails, pushed by the wind, show excitement and pleasure, an appeal directly to the intended audience. Other aspects strengthen the advertisement design's sexual appeal. The foreground woman's strapless swimming suit, highlighted in red, is the most notable example. Her chest prominently resides above horizontal boxes in both th... ...by asserting, "PALL MALL gives you a smoothness, mildness and satisfaction no other cigarette offers you." Of course, the audience need not accept the text's promise of pleasure. They can easily see that PALL MALLs bring happiness. The picture clearly shows that all middle-class white males frolicking on beaches with beautiful women carry PALL MALL cigarettes. After all, the advertisement's fun and sexy appeal, its enticement to social enjoyment, and its portrayal of the brand's pleasures certainly imply that PALL MALLs bring social happiness. Then again, cigarette advertisers notoriously ignore tobacco's detrimental effects, but who has time to consider negatives when viewing such an appealing scene? WORKS CITED Blum, John, et al. The National Experience: A History of the United States. 5th ed. New York: Harcourt, Brace, Jovanovich, Incorporated, 1981.
Friday, August 2, 2019
Trapped in the Middle :: Essays Papers
Trapped in the Middle The middle. When one thinks of the middle, he or she may think about the middle of a street, a class, or the middle of the country. One may also consider the middle of thought, traffic, or of an argument. After asking more than ten people what they thought of what the middle was, none of them ever mentioned the middle of two cultures or traditions. In the essay, The Homeland, written by Gloria Anzaldua, Anzaldua describes her homeland as being a little of both Mexican and American cultures. She talks about the history of Mexico and how the borders between Mexico and the United States were created. She explains how the creation of the border has dramatically changed the lives of the Mexican people. She describes the border by using many metaphorical devices; one such example is that of the ocean, â€Å"where earth touches ocean, where the two overlap; a gentle coming together, and at other times and places a violent clash†(Anzaldua, 319). Anzaldua is very rea listic and descriptive in her text. She uses many forms of writing in her personal narrative, which creates an eye-opening and touching story. She concludes her essay with giving the reader a metaphor of what her homeland is to her, a â€Å"thin edge of barbed wire†(327). Anzaldua explains how she is stuck in the middle of two cultures due to a variety of reasons. Those reasons include, the fact that she struggles knowing that the Mexicans must depend on the Americans to live; yet the Americans are too ignorant to even know what is going on. Moreover, the fact that she lives in America yet her heart and soul lie in the Mexican culture causes her to feel split between the two traditions. I, too, feel for Anzaldua, yet I am Portuguese and not Mexican. Though I do not relate completely with her, I do in many ways. After reading The Homeland, I was opened up to a new story about another culture and at the same time it opened myself up to new ideas about my own. After reading Andaldua’s The Homeland, I was shocked to see myself realize that much of the information that she presented had already been exposed to me, yet I never bothered to look at both perspectives.
Thursday, August 1, 2019
Greco-Roman influence on Mediterranean Society Essay
Mediterranean society, a name manifesting proximity to Mediterranean Sea, flourished around 6th century BC and was dominated in its early years by Greek and Roman influence. Greek and Roman periods came sequentially and at times are collectively referred as Greco-Roman. This influence not only defined characteristics of Mediterranean society for many centuries that follow but also had articulate influences on contemporary societies in western world. Similarities between Greeks and Romans Both Greeks and Romans developed art with their own peculiarities. Forms of art like poetry, drama, mythology, philosophy and architecture defined these civilizations. These contributions are now also known as â€Å"classical antiquity†in history which Mediterranean society enjoyed during Greco-Roman period. Greeks and Romans also had strong military legacies. They both military might to counter any threat against their way of life. Romans also developed a strong naval legion which helped them strengthen their empires. Both Greeks and Romans developed agriculture with a focus on its commercial side and promoted trade. In religion, both did not enforce a universal religion instead promoted concept of tolerating other religious beliefs. Differences between Greeks and Romans Although historians at times refer to Greek and Roman periods in Mediterranean society’s history collectively, both have some clear differences in approach to society and governance. Greek culture is more towards lifestyle and seems to be more focused on development of a society. On the other hand, Roman civilization was oriented towards creating an empire of which Mediterranean region and society was a part. So, while Greeks had more cultural impact on Mediterranean society, Roman influence was more towards developing governance and systems. Politically, Greeks had a decentralized form of government with many city-states flourishing during their period. On the contrary, Romans developed an empire while developing less independent cities and more focus on creating specialized regions. Romans also were more focused on enhancing their empire while maintaining a strong linkage with developed transportation networks and administrative control. While Greeks gave Mediterranean society the philosophical works of Plato and Socrates, it was Romans who gave concept of governance, including civil service, public administration and tax collection. Greco-Roman influence on Western world Modern day politics has always been influenced by Greco-Roman influence on Mediterranean society. A broader case in point would be that modern political systems prevailing in many western countries mirror key elements from Greco-Roman period of Mediterranean. Roman concept of senate and Greek idea of city-state is sprawled around the globe as political systems. Further, concept of constitution and republic instigated in thoughts of Greek philosophers and was later materialized in Roman Empire. So much so, there is an intriguing presence of various elements in modern constitutions, which arguably were formulated by Greco-Roman. For instance, in United States constitution, President can only be a citizen born on American soil. This is akin to Roman concept of citizenship in which citizens having full rights were free, naturally-born, land-owning individuals. In art, contemporary art has genesis in Greco-Roman influence on Mediterranean world. For instance, architectural concept of Corinthian, Ionic or Doric columns which was developed in Greco-Roman period is basis of classical architecture in Western world. In order to govern a vast empire, Romans developed concept of public administration not known to human civilization and also created an extensive civil service and formalized methods of tax collection. These innovative concepts can still be found in Western world. Conclusion Greco-Roman influence on Mediterranean society had strong impact on human civilization. Both had differences but of lesser depth compared to strong similarities which existed in both civilizations. This is one of the reasons that for common understanding Greeks and Roman civilizations exist collectively in history under the label â€Å"Greco-Roman†. Bibliography Bentley, J. H. , Ziegler, H. F. , & Salter, H. S. (2010). Traditions & Encounters: A Brief Global History (2nd Edition ed. ). Virginia, United States of America: McGraw-Hill Humanities/Social Sciences/Languages. Pomeroy, S. B. , Burstein, S. M. , Donlan, W. , & Roberts, J. T. (2007). Ancient Greece: A Political, Social and Cultural History. USA: Oxford University Press. Stearns, P. N. , Adas, M. B. , Gilbert, M. J. , & Schwartz, S. B. (2010). World Civilizations: The Global Experience. Prentice Hall.
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