The Leadership of Foxconn free essay sample

The word of leader appeared in 1300, and the word of leadership appeared till 1834. The meaning of leadership is the ability of lead. (Charlotte,2002) Leadership is the process of reciprocal, transactional and transformational. In the course of a person is allowed to influence, inspire others to facilitate and achieve the target of groups and individuals. Leadership traits began to focus on the leaders own leadership scientific analysis. More specifically, it seems to distinguish the leader from the society to followers. (Richard rt al.,1996:167) Theorists, scholars and practitioners often have different definitions for leadership, therefore, each have different views on the meaning of leadership. Some researchers consider leadership as a trait or as a behavior, other view of leadership from a perspective or relationship standpoint. Regardless of the size of organization, leadership and management are two essential elements of successful businesses. (Gill,2005) In any organization, the main difference between leaders and managers is: Leaders can predict the future, review the existing human resources, material and have a plan on adjust their milestones. We will write a custom essay sample on The Leadership of Foxconn or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Managers do not need to have so-called lofty ideals, they only need to plan the human resources and materials properly. Managers execute the mandate given by superiors and to complete the work within the prescribed time, for short-range task has absolute executive power. Managers can bring great energy to the team. This following essay will firstly to compare the difference of theories in leadership and then introduce the leadership trait of the company. Leadership style Authoritarian leaders often judge according to their own ideas and make choices, rarely accept other opinions. In some cases, autocratic leadership is beneficial a large group of people to make decisions quickly. Some task requires strong leadership to work quickly and efficiently. Autocratic leadership is helpful in some cases, but sometimes this leadership style may cause problems. Such as a leader abuse of autocratic leadership style is often seen to be bossy, control and dictatorship person, which may cause resentment among group members. The Democratic leadership style often gives the consultation space to workers. The members of the group take a more participative role in the decision-making process. The benefit of democratic leadership is to inspire the subordinate to figure the better ideas and more creative solutions to problems. Some potential downsides of this kind of leadership is that it can lead to communication failures and inncompleted projects. Bubby(2011) states the type of paternalistic leader has a great relationship with their group just as the relationship with their family. The leader offer the subordinate great working conditions and fringe benefits make the worker works harder and be grateful to the company. This kind of leadership was not suitable for the mature employees, it might generate antagonism and resentment between the subordinates and leader rather than gratitude. Laissez-faire is the leadership which leaders are hands-off and allows group members to make the decisions. This kind of the leader may have high risk on their subordinate, the productivity may be low and it may be hard to make a decision. It is only suit the employees which are skilled and have high motivation on their work. McGregors theories of leadership are divided into two models: X leadership and Y leadership. The theory X is based on authoritarian management. It assumes that the employees are less motivation and dislike working in the theory X. The management style is discovered most in manufacturing company with a large number of workers. The theory Y assumes that the employees are highly motivated and ambitious on the work. Based on theory Y, people at lower levels of the organization are involved in decision making and have more responsibility. Foxconn Terry Gou founded Hon Hai Precision Industry Company Ltd, the anchor company of Hon Hai / Foxconn Technology Group in 1974. Hon Hai Precision Industry Co., Ltd., trading as Foxconn Technology Group, is a Taiwanese multinational electronics contract manufacturing company headquartered in Tucheng, New Taipei, Taiwan. It is the worlds largest electronics contract manufacturer measured by revenues. Foxconn is primarily an original design manufacturer and its clients included American, European, and Japanese electronics and information technology companies. The company manufactures notable product included the iPad, iPhone, iPod, Kindle, PlayStation 3, and Wii U. Foxconn Technology Group is the worlds 3C (Computer Computer, Communications Communication, Consumer Electronics Consumer) foundry Regulation Mold largest international enterprises. (Foxconn, 2013). There are various admirable achievements and entrepreneurs in the world, Gou is one of the successful company of them. Hon Hais performance continues to expand under Guo’s military operation. He is not only their leader but also their role model. He believes employees are indispensable to the company. Early in the financial tsunami, Hon Hai efforts to develop more new business opportunities, such as to strived Apple iPhone3G mobile phone order when other companies appeared tiredness. Gou driving the companys revenue rapidly up in 2009. In such a slump era, the companys business strategy and internal competitiveness is far higher than other companies. The company has a good leader can make the company sustained progress. Leadership with Foxconn Gou states that a successfully enterprises should pay attention to efficiency, rather than democracy. Democracy is the most inefficient way of work, democracy is an atmosphere, a feeling, so that we can communicate, but†¦, in the fast-growing company, leaders should be a little more domineering. For enterprises, discipline is more important than democracy. This kind of leadership is between Autocratic and Paternalistic. Due to Gous strong leadership, everything goes efficiently according to table drills of the company. Gou considered that the executive power is mainly pressure to force the company to rich the company goal. Gou also requiring employees to work even during the typhoon day. Ordinary companies only operate 24 hours per days, Hon Hai was able to operate 28 hours. By the time difference between the U.S. and Taiwan, Hon Hai works 4 more hours than others. Reward and punishment is his leadership spirit. At work, once they accept the consumer’s order, they will finish the work within the time. The employee will be punished by the company if they did not submit the products in the deadline. However, despite the military discipline, they will not stingy to distribute the commission to the employees. As the outstanding performance of the employee, it is not difficult to get share stocks at the end of assigned. (Chang, 2005) The leadership of Gou’s management finally causes some problem. Foxconn has been involved in several controversies relating to how it manages employees in China. There were a series of suicide incidents of the manufactory in Mainland China during the 2010. The main causes of the event pointed out that employees work in a deep pressure working environment. It reveals a huge drawback of the management. The company began to concern the issue of the working environment and working hours. In 2012 Apple hired the Fair Labor Association to conduct an audit of working conditions at Foxconn. After the events, FoxConn decided to increase wages, and stop issuing compensation for suicides at the same time.(China Labor Watch, 2011) Conclusion To conclude, Hon Hai presents the standard Autocratic leadership and also involved the Paternalistic style. This essay has introduced the leadership of Gou, and also well-present the managed way of Foxconn. Gous management makes the company operation much more efficiency than other well-known company. Foxconn knocked out other competitors and win the chance to take the order which other company also wanted. Gous specialized leadership will continuously lead Hon Hai to a higher position. In order to lead the road to success, a leader must fully understand its mission and tasks. In short, leadership is the main key to successful of a company. References Charlotte,L. (2002) Oxford Dictionary: Oxford University Press Richard, M., Lyman, W.P., Gregory, A.B.,(1996) Motivation and Leadership at Work: McGraw-Hill Bubby D(2011) Management An Introduction 5th ed :Harlow Financial Times Prentice Hall Gill N,Managing and Leading People :Chartered Institude of Personnel and Development,2005 2013 HON HAI PRECISION IND.CO.,LTD http://www.foxconn.com.tw/ 2013é ´ »Ã¦ µ ·Ã§ ² ¾Ã¥ ¯â€ Ã¥ · ¥Ã¦ ¥ ­(è‚ ¡)å… ¬Ã¥  ¸http://www.foxconn.com.tw/ Career Consulting Co. LTD @2005, LEADERSHIP The Competent leadership philosophy2 http://media.career.com.tw/Careerbook/magshort.asp?CA_NO=329p074 Ã¥ ° ±Ã¦ ¥ ­Ã¦Æ'…å   ±Ã¨ ³â€¡Ã¨ ¨Å Ã¨â€š ¡Ã¤ » ½Ã¦Å"䎪 Ã¥â€¦ ¬Ã¥  ¸Copyright @2005 ,LEADERSHIPä ¸ »Ã§ ® ¡Ã©  ËœÃ¥ °Å½Ã¥â€œ ²Ã¥ ­ ¸2http://media.career.com.tw/Careerbook/magshort.asp?CA_NO=329p074 Yi, C., Wen, C., Fang, L.,(2005) The 50million Legendary of Ho Hai – The Empire of Gou: Common Wealth Ã¥ ¼ µÃ¦Ë†Å'è ª ¼,Ã¥ ¼ µÃ¦ ® ¿Ã¦â€"‡,ç› §Ã¦â„¢ ºÃ¨Å  ³/è‘â€", ä ºâ€Ã¥ Æ'å„„å‚ ³Ã¥ ¥â€¡Ã¯ ¼ Ã©Æ' ­Ã¥  °Ã©Å ËœÃ§Å¡â€žÃ© ´ »Ã¦ µ ·Ã¥ ¸ Ã¥Å"‹ (å… ¸Ã¨â€" Ã§â€°Ë†): Ã¥ ¤ ©Ã¤ ¸â€¹Ã©â€ºÅ"è ªÅ' Statements on Foxconn’s Decision to Increase Wages and to Stop Suicide Compensation-Electronics : China Labor Watch(2011) http://www.chinalaborwatch.org/pro/proshow-95.html

Canadas depreciating dollar essays

Canadas depreciating dollar essays The Depreciation of the Canadian Dollar Canada has been increasing its prestige as a high-tech, industrial, society since the end of World War II. In many ways it resembles very closely its southern North American cousin, the United States. Some of those similarities are residing in its market-orientated system, pattern of production, and its high standard of living. Most years following the war up to the present, Canada has experienced some kind of continued growth as a prosperous and developed country. However, during the year of 1998, Canada experienced an unexpected large depreciation in their dollar relative to the United States. Late in August of that year, in fact, the value reached an all-time low. During this paper, I will try to present some of the possible economic factors that may or may not have led to this change in Canadas exchange rate. I will also examine some additional analysis and theories as to why the trend possibly occurred. As the year 1998 approached, the trend for the Canadian dollar was on a steady decrease in value in relation to the U.S. dollar. With each passing year the dollar lost some value as the table below demonstrates. Exchange Rate 1.16 1.38 1.36 1.38 1.48 *All data tables extrapolated from the Cambridge Forecasts Country Report, unless otherwise noted. It took an exceptional hit during the year, moving the rate from 1.38 U.S. dollars to 1.48 in U.S. dollars. The plunge is better exhibited in Appendix 1, with the sharp decrease of the dollar illustrated graphically and more specifically, with Appendix 2 showing the drop throughout the year of 1998 alone. In terms of growth rate, the years leading up to the exchange rate drop in 1998 showed very typical numbers. There was nothing out of the ordinary, or anything to hint at a sharp decrease in the value of the Canadian dollar. As highlighted below, up to 1998, the economy was growing at a slow but steady rate each ...

Translating Since in Spanish

Translating Since in Spanish The English word since has several meanings and can function as at least three parts of speech - adverb, conjunction and preposition, and they cant all be translated to Spanish the same way. Following are some of the most common ways of translating since; this is not a complete list, although usually one of these can be used in most situations. Since When Since meaning from a certain time forward: When using a date or time, the preposition desde can usually be used: Nueve periodistas espaà ±oles han muerto en conflictos desde 1980. Nine Spanish journalists have died in conflicts since 1980.Desde hace una hora ya no tengo trabajo. I have been without work since an hour ago.Estn en huelga desde la semana pasada. They have been on strike since last week.Mi madre desde entonces no es lo que era. My mother since then isnt what she used to be. Note that as in the examples above, the present tense of the verb is used even though the action began in the past. When since is used by itself as an adverb, it usually is the equivalent of since then, so desde entonces can be used: No ha llovido desde entonces. It hasnt rained since. Desde que can be used in constructions such as the following: Parece que pasaron 15 minutos y no 15 aà ±os desde que nos fuimos. It seems like 15 minutes have passed and not 15 years since we went away.Desde que trabajà © aquà ­, he tenido muchas oportunidades. Since I started working here, I have had many opportunities.Desde que te vi no puedo dejar de pensar en ti. Since I saw you I cant stop thinking about you. Since Why Since as introducing a reason: When since is used to explain why something is being done or occurring, you often can use one or more of the words or phrases of causation. Other words or phrases can be used in addition to those below: Como porque tengo hambre. I am eating since I am hungry.Como Henry tenà ­a miedo a volar, rehusà ³ ir a Londres. Since Henry was afraid to fly, he refused to go to London.Dado que soy celà ­aco  ¿quà © alimentos puedo injerir? Since I have celiac disease, what foods can I eat?No importa, ya que es sà ³lo un sueà ±o. It doesnt matter, since its only a dream.

Article analyse Assignment Example | Topics and Well Written Essays - 500 words

Article analyse - Assignment Example other choice but to acquire its service at that expensive charge (Alderighi, Nicolini and Piga 73).Commercial air travel has received many changes over the past hundred years with it budget much stretched. With much completion starting to take charge, the commercial airlines were forced to reduce their fair cost to attract more customers. The slow global economic growth also ensured economic growth of air travel in the emerging regions where less air travel increased substantially (Alderighi, Nicolini and Piga 86). Besides, the commercial air travel took advantage of increased cost of fuel to increase its market structure. The domestic airplanes could not afford travelling long distances. Therefore, the commercial air travel was able to receive more customers to acquire it services. This situation reduced the completion it was earlier receiving from other airlines. International air travel indicates that mature airlines in the market of Europe experienced slower growth rate. The frontier airline, has now posed new challenges to commercial air travel in many areas. This has resulted to reduced economic growth of airlines. The frontier airlines now has reduced the cost of travelling, making several flights to various cities as compared to the air travel (Alderighi, Nicolini and Piga 45). In overall, the frontier has provided better services making company to receive more customers than any other airlines. This improvement has caused a lot of concern to business community about the effects of delta years of high cost and long flights in order to ensure they are not outdone. The market entry for competition and further innovation is important and largely undisputed in any industrial organization. Many factor s influence general pricing and passenger traffic in air transport industry (Peng, 67). The most popular determinant is low cost airline. It has been reported that low cost line has significant resulted to depression of prices associated with increase of

Philosophy and Government Exercise Essay Example | Topics and Well Written Essays - 1000 words

Philosophy and Government Exercise - Essay Example They turned the study of philosophy which was the study of heavens to the study of human things. According to Socrates, human nature was the question of how best a person should live while Aristotle argued that using one’s reasoning is the best way to live. He emphasized that the best life suited to human nature involved reasoning. Humans interact in quite a number of ways as evident in different scenarios these includes, culture where by they live in large social groups. They usually interact for exchange of ideas, self expression and in organizations made up of huge cooperation’s and competing farms. Development of technology also changes the way humans relate in the sense that, in the past, we visited post offices to post birthday cards, Christmas and New Year letters to our beloved. Now that has changed to another simpler level where we just need to send an e-mail while still at home and that is all. In addition to that, we can meet our friends on their twitter and face book and get in touch instead of making arrangements on how to check on them which consumes most of out time and resources. Taking all these into account, we can brutally say that development of advanced technology has a positive effect on humans. Politics, government, language in use, Human beings should live harmoniously. They should have social, cultural, economic and political affiliations that unify them. The economic activities should allow them to get resources that they require and give out resources that they have in plenty. The social and cultural relations amongst human being should allow people to appreciate the differences in all groups of people. There should be exchange of culture through intermarriages, initiation and other rites of passage. The political interaction involves having a government that provides equality amongst all human beings. The powers vested in the government

The closing scene of Macbeth Essay Example for Free

The closing scene of Macbeth Essay In the closing scene of Macbeth, Malcolm refers to Lady Macbeth as a fiend-like queen. Do you agree with Malcolm, or do you think she is not as evil as he depicts? I cannot fully agree or disagree with Malcolms proposal that she is a fiend. A fiend is a very inhumane depraved person, I not agree that she is this wicked but there is clear evidence to suggest that she is evil, as Malcolm makes her out to be. But there is also evidence in a few key scenes to show that she is not as evil as Malcolm makes her out to be but she is still not a pleasant person, and in order to evaluate her character I will have to look at these the key scenes, in which she appears. The first scene she appears in is Act 1: scene 5. Lady Macbeth receives a letter from her husband and is obviously very excited by the news and immediately decides that Macbeth shall become king: Glamis thou art, and Cawdor, and shalt be what thou art promisd Her reaction suggests that she is extremely ambitious woman and she doesnt hesitate at what glory can come out of this for Macbeth and her. Lady Macbeth thinks Macbeth might not have the guts to fulfil this final prophecy which is to kill the king, thou wouldst be great; art not without ambition; but without the illness should attend it this quote suggests Lady Macbeth is about to take situation into her own hands. So in this scene it suggests Lady Macbeth is extremely ambitious. The next scene which is Act1: scene 7 it shows that Malcolms predictions seem accurate because she is at her most ruthless. She questions him repeatedly in a taunting manner. She lectures him, asking him if he was too afraid to fulfil his ambition: And lie a coward in thine own esteem she goes on to ask questions of his masculinity: when you durst do it, you were a man. Her most brutal declaration occurs when she claims she would rather kill her own baby feeding on her breast than abandon a promise: I would, while smiling in my face, have plucked my nipple from its boneless gums and dashed the brains out.. In this scene Lady Macbeth is at her most ruthless and is a very depraved person. In Act 2: scene 2 we see a different side to Lady Macbeth, she is very anxious and concerned in case Macbeth gets caught and she is worried about the consequences. Her reaction would suggest that she has still a bit of humanity in her and this is reinforced when she says, Had he not resembled my father as he slept, I had done it However, regardless of these revelations, Lady Macbeth is still portrayed in this scene as scheming and very strong willed. She keeps him clam as Macbeth goes to pieces. She chastises him for feeling guilty and tells him not to dwell upon the deed: These deeds must not be thought after these ways; so, it will make us mad so Malcolms conclusion that she is a fiend is not entirely true. In Act 2: scene 3 Lady Macbeth plays a minor role. Duncans body has been discovered, along with Macbeth, she pretends to be shocked, Woe, alas! What, in our house? Her fainting could have been pretence to divert her attention away from Macbeth, but this is the first time Lady Macbeth heard that Macbeth killed the guards so she could genuinely fainted. So there is no evidence in this scene to call her a fiend but the complete opposite because she is caring to Macbeth. The next scene which she appears in is Act 3: scene 4 Lady Macbeth plays a major role because it marks the point where Lady Macbeth looses touch with Macbeth. Lady Macbeth assumes that Macbeths strange behaviour is a result of a guilty conscience. She is nonetheless very resourceful in handling the situation. But Lady Macbeth covers up for him by saying he has had these fits from his youth, you shall offend him, and extend his passion: feed your regard him not then she tries a tactic that was successful before by question his masculinity: Are you man? So in this scene her concern is obvious. Her love for Macbeth is possibly the best point in her character. In Act 5: scene 1 there is a lot of evidence to contradict Malcolms prediction, that she is a fiend like queen. Since the first time we saw Lady Macbeth in Act 1: scene 5 she is a totally different person, she has lost control; her sanity has left her, she isnt very stable she totally broke down, this isnt a sign of a bad woman if she was she wouldnt have lost all her sanity and went on to kill herself. So this is putting a question mark over Malcolms prophecy and judgement. Lady Macbeths gentlewoman and the doctor make his audience aware of what has happened to her. Her ramblings and her performance suggest that she has suffered emotional disorder. She continually refers to the aftermath of Duncans murder. Yet who would have thought the old man to have much blood in him It is as if she is reliving the urgency of that night and this is intensified in the line, To bed, to bed, theres a knocking at the gate So in conclusion I cannot support Malcolms statement, though I can appreciate how a son whose father has been brutally murdered must have this personal opinion of her.

Shakespeare in the Sound and the Fury Essay -- Sound and the Fury Essa

Shakespeare in the Sound and the Fury    The "Tomorrow" soliloquy in Act V, scene v of the Shakespearean tragedy Macbeth provides central theme and imagery for The Sound and the Fury.   Faulkner may or may not agree with this bleak, nihilistic characterization of life, but he does examine the characterization extensively.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Tomorrow, and tomorrow, and tomorrow   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Creeps in this petty pace from day to day   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   To the last syllable of recorded time;   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   And all our yesterdays have lighted fools   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The way to dusty death.   Out, out brief candle!   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Life's but a walking shadow, a poor player,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   That struts and frets his hour upon the stage   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   And then is heard no more.   It is a tale   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Told by an idiot, full of sound and fury,   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Signifying nothing (Shakespeare 177-8).   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   The passage suggests man is mortal while time is immortal.   Time maintains its pace independently of man's actions; it creeps through man-made institutions eventually leading to man's death.   However, time maintains indifference towards man.   Life spans are infinitesimal in comparison to the smallest division of time.   In reality, the significance man ascribes to human existence is false: life has no significance.   Life is merely a brief episode of strutting and fretting, "full of sound and fury, . . . signifying nothing."    Every section of the Sound and the Fury relates to Macbeth's speech. Each narrator presents life as "full of sound and fury," represented in futile actions and dialogue.   Benjy, Quentin, Jason, and Dilsey all emit constant wor... ... Faulkner's views on life, a supposed contrast to Macbeth's.   After hundreds of pages of examining Shakespeare's passage, Faulkner concludes his work with an uplifting transcendence of nihilism.   Faulkner leaves the reader with hope, the signification of meaning yet to come.    Works Cited    Commentary. The Sound and the Fury. Olemiss Resources   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚   http://www.mcsr.olemiss.edu/~egjbp/faulkner/n-sf.html    Faulkner, William. The Sound and the Fury. New York: Vintage Books, 1984.    Harold, Brent. "The Volume and Limitations of Faulkner's Fictional Method." Contemporary Literary Criticism. Vol. 11, 1975.    Irwin, John T. "A Speculative Reading of Faulkner" Contemporary Literary Criticism, Vol. 14, 1975.    Shakespeare, William. Macbeth. New York: Washington Square Press, 1992.   

Additional Solved Sums, Financial Management, Prassanna Chandra

CHAPTER 2 1. As a rule of thumb, real rates of interest are calculated by subtracting the inflation rate from the nominal rate. What is the error from using this rule of thumb for calculating real rates of return in the following cases? Nominal rate (%)7121822 Inflation rate (%)4 6 810 Solution: [pic] 2. As a rule of thumb, real rates of interest are calculated by subtracting the inflation rate from the nominal rate. What is the error from using this rule of thumb for calculating real rates of return in the following cases? Nominal rate (%)481119 Inflation rate (%)13 2 4 Solution: [pic] CHAPTER 3 1. At the end of March, 20X6 the balances in the various accounts of Dhoni & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash and bank 35 Debentures (secured) 100 Marketable securities 18 Term loans (secured) 90 Receivables 200 Short-term bank borrowing (unsecured) 70 Inventories210 Trade creditors 60 Provisions 20 Pre-paid expenses 10 Required: Prepare the balance sheet of Dhoni & Company as per the format specified by the Companies Act. Solution: Balance Sheet of Dhoni & Company As on March 31, 20 X 6 Liabilities | |Assets | | |Share capital | |Fixed assets |   | |Equity |120 |Net fixed assets |217 | |Preference |30 | |   | |Reserve & surplus |200 |Investments |   | |   | |Marketable securities |18 | |Secured loans | |Current assets, loans & advances |   | |Debentures |100 | |   | |Term loans |90 | | | |   | |Pre-paid expenses |10 | |Unsecured loans | |Inventories |21 0 | |Short term ank borrowing |70 |Receivables |200 | |Current liabilities & provisions | |Cash & Bank |35 | |Trade creditors |60 | |   | |Provisions |20 | |   | |   |690 |   |690 | 2. At the end of March, 20X7 the balances in the various accounts of Sania Limited are as follows: Rs. in million Accounts Balance Equity capital 250 Preference capital 80 Fixed assets (net)380 Reserves and surplus350 Cash and bank100 Debentures (secured)190 Marketable securities 30 Term loans (secured)120 Receivables420 Short-term bank borrowing (unsecured) 110 Inventories310 Trade creditors 90 Provisions 70 Pre-paid expenses 20 Required: Prepare the balance sheet of Sania Limited as per the format specified by the Companies Act. Solution: Balance Sheet of Sania Limited as on March 31, 20 X 7 Liabilities | |Assets | | |   | | |   | |Share capital | |Fixed assets |   | |Equity |250 |Net fixed assets |380 | |Preference |80 | |   | |Reserve & surplus |350 |Investments |   | |   | |M arketable securities |30 | |Secured loans | |Current assets, loans & advances |   | |Debentures |190 | |   | |Term loans |120 | | | |   | |Pre-paid expenses |20 | |Unsecured loans | |Inventories |310 | |Short term bank borrowing |110 |Receivables |420 | |Current liabilities & provisions | |Cash & Bank |100 | |Trade creditors |90 | |   | |Provisions |70 | |   | |   |1260 |   |1260 | 3. The comparative balance sheets of Evergreen Company are given below: (Rs. in million) Owners' Equity and Liabilities As on 31. 3. 20X6 As on 31. 3. 20X7 Share capital 70 70 Reserves and surplus 40 80 Long-term debt 80 90 Short-term bank borrowings 80 85 Trade creditors 40 70 Provisions 10 20 Total320415 Assets Fixed assets (net)120210 Inventories 90 95 Debtors 60 65 Cash 25 30 Other assets 25 15 Total320415 The profit and loss account of Evergreen Company for the year ending 31st March 2007 is given below: (Rs. in million) Profit & Loss Account for the Period 1. 4. 20X6 to 31. 3. 20X7 Net sales750 Cost of goods sold 505 Stocks290 Wages and salaries105 Other manufacturing expenses110 245 Gross profit Operating expenses135 Selling, administration and general120 Depreciation 15 Operating profit110 Non-operating surplus or deficit(20) EBIT 90 Interest 25 Profit before tax 65 Tax 15 Profit after tax 50 Dividends 10 Retained earnings 40 Required: (a) Prepare the classified cash flow statement for the period 1. 4. 20X6 to 31. 3. 20X7 b) Develop the cash flow identity for the period 1. 4. 20X6 to 31. 3. 20X7 Solution: |A. Cash flow from operating activities | | |- |Net profit before tax and extraordinary items | |85 | | |- |Adjustments for | | | | | |Interest paid | |25 | | | |Depreciation | |15 | | |- |Operating profit before working capital changes |125 | | |- |Adjustments for | | | | | |Inventories | |(5) | | | |Debtors | |(5) | | | |Trade creditors | |30 | | | |Provisions | |10 | | | |Increase in other assets | |10 | | |- |Cash generated rom operations | |165 | | | |Income tax paid | |(15) | | |- |Cash flow before extraordinary items | |150 | | | |Extraordinary item | |(20) | | |- |Net cash flow from operating activities | |130 | |B. |Cash flow from investing activities | | | | |- |Purchase of fixed assets | |(105) | | |- |Net cash flow from investing activities | |(105) | | | | | | | |C. Cash flow from financing activities | | | | |- |Increase in loans | |15 | | |- |Dividends paid | |(10) | | |- Interest paid | |(25) | | |Net cash flow from financing activities | |(20) | | | | | | | |D. |Net increase in cash and cash equivalents | |5 | | |- |Cash and cash equivalents as on 31. 03. 0X6 |25 | | |- |Cash and cash equivalents as on 31. 03. 20Ãâ€"7 | |30 | NoteIt has been assumed that â€Å"other assets† represent â€Å"other current assets†. (b) A. Cash flow from assets -Operating cash flow90 -Net capital spending (105) -Decrease in net working capital35 -Cash flow from assets20 B. Cash flow to creditors -Interest paid25 -Repayment of long term debt (15) -Cash flow to creditors10 C. Cash flow to shareholders -Dividends paid10 -Net new equity raised 0 -Cash flow to shareholders10 We find that (A)=(B) + ( C) i. e. Cash flow from assets=Cash flow to creditors + Cash flow to shareholders 4. The comparative balance sheets of Xavier Limited are given below: (Rs. in million) Owners' Equity and Liabilities As on 31. 3. 20X6 As on 31. 3. 20X7 Share capital 20 30 Reserves and surplus 10 18 Long-term debt 30 25 Short-term bank borrowings 15 15 Trade creditors 10 15 Provisions 5 8 Total 90 111 Assets Fixed assets (net) 16 20 Inventories 44 55 Debtors 20 21 Cash 5 8 Other assets 5 7 Total 90 111 The profit and loss account of Xavier Limited for the year 2007 is given below: (Rs. in million) Profit & Loss Account for the Period 1. 4. 20X6 to 31. 3. 20X7 Net sales220 Cost of goods sold 140 Stocks 90 Wages and salaries 35 Other manufacturing expenses 15 80 Gross profit Operating expenses 40 Selling, administration and general 20 Depreciation 5 Operating profit 15 Non-operating surplus or deficit 1 EBIT 16 Interest 4 Profit before tax 12 Tax 2 Profit after tax 10 Dividends 2 Retained earnings 8 Required: (a) Prepare the classified cash flow statement for the period 1. 4. 20X6 to 31. 3. 20X7 b) Develop the cash flow identity for the period 1. 4. 20X6 to 31. 3. 20X7 Solution: |A. Cash flow from operating activities | | | | |- |Net profit before tax and extraordinary items | |11 | | |- |Adjustments for | | | | | |Interest paid | | 4 | | | |Depreciation | | 5 | | |- |Operating profit before working capital changes | 20 | | | | Adjustments for | | | | |- | | | | | | |Inventories | |(11) | | | |Debtors | | (1) | | | |Trade creditors | | 5 | | | |Provisions | | 3 | | | |Increase in other assets | | (2) | | |- |Cash generated from operations | | 14 | | | |Income tax paid | | (2) | | |- |Cash flow before extraordinary items | | 12 | | | |Extraordinary item | | 1 | | |- |Net cash flow from operating activities | | 13 | |B. |Cash flow from investing activities | | | | |- |Purchase of fixed assets | | (9) | | |- |Net cash flow from investing activities | | (9) | | | | | | | |C. Cash flow from financing activities | | 10 | | |- Increase in equity | | | | |- |Repayment of term loans | | (5) | | | |-Dividend paid | |(2) | | |- |Interest paid | | (4) | | |Net cash flow from financing activities | | (1) | | | | | | | |D. |Net increase in cash and cash equivalents | | 3 | | |- |Cash and cash equivalents as on 31. 03. 20X6 | 5 | | |- |Cash and cash equivalents as on 31. 03. 20Ãâ€"7 | | 8 | NoteIt has been assumed that â€Å"other assets† represent â€Å"other current assets†. (b) ACash flow from assets -Operating cash flow19 -Net capital spending(9) -Decrease in net working capital(9) Cash flow from assets 1 B. Cash flo w to creditors -Interest paid 4 -Repayment of long term debt 5 -Cash flow to creditors 9 C. Cash flow to shareholders -Dividends paid 2 -Net new equity raised(10) -Cash flow to shareholders (8) We find that (A)=(B) + ( C) i. e. , Cash flow from assets=Cash flow to creditors + Cash flow to shareholders CHAPTER 4 1. Premier Company's net profit margin is 8 percent, total assets turnover ratio is 2. 5 times, debt to total assets ratio is 0. 6. What is the return on equity for Premier? Solution: Net profit Return on equity = Equity = Net profit Net sales Total assets x x Net sales Total assets Equity 1 = 0. 08 x 2. 5 x = 0. 5 or 50 per cent 0. 4 Debt Equity Note : = 0. 6 So = 1- 0. 6 = 0. 4 Total assets Total assets Hence Total assets/Equity = 1/0. 4 2. The following information is given for Alpha Corporation Sales3500 Current ratio1. 5 Acid test ratio1. 2 Current liabilities1000 What is the inventory turnover ratio? Solution: Current assets = Current liabilities x 1. 5 = 1000 x 1. 5 = 1500 Quick assets= Current liabilities x 1. 2 = 1000 x 1. 2 = 1200 Inventories= 300 3500 Inventory turnover ratio == 11. 7 300 3. The following information is given for Beta Corporation. Sales5000 Current ratio1. 4 Inventory turnover5 ratio Acid test ratio1. 0 What is the level of current liabilities? Solution: 4. Safari Inc. has profit before tax of Rs. 90 million. If the company's times interest covered ratio is 4, what is the total interest charge? Solution: PBT= Rs. 90 million PBIT Times interest covered = = 4 Interest So PBIT = 4 x Interest PBT = PBIT – interest = 4x interest- interest = 3 x interest = 90 million Therefore interest = 90/3 = Rs. 30 million 5. A has profit before tax of Rs. 0 million. If its times interest covered ratio is 6, what is the total interest charge? Solution: PBT= Rs. 40 million PBIT Times interest covered = = 6 Interest So PBIT = 6 x Interest PBIT – Interest = PBT = Rs. 40 million 6 x Interest – Interest = Rs. 40 million 5 x Interest = Rs. 40 million Hence Interest = Rs. 8 million 6. McGill Inc. h as profit before tax of Rs. 63 million. If the company's times interest covered ratio is 8, what is the total interest charge? Solution: PBT= Rs. 63 million PBIT Times interest covered = = 8 Interest So PBIT = 8 x Interest PBIT – Interest = PBT = Rs. 63 million x Interest – Interest = 7 x Interest = Rs. 63 million Hence Interest = Rs. 9 million 7. The following data applies to a firm : Interest chargesRs. 200,000 SalesRs. 6,000,000 Tax rate40 percent Net profit margin5 percent What is the firm's times interest covered ratio? Solution: Sales = Rs. 6,000,000 Net profit margin = 5 per cent Net profit = Rs. 6,000,000 x 0. 05 = 300,000 Tax rate = 40 per cent 300,000 So, Profit before tax = = Rs. 500,000 (1-. 4) Interest charge = Rs. 200,000 So Profit before interest and taxes = Rs. 700,000 Hence 700,000 Times interest covered ratio = = 3. 5 200,000 8. The following data applies to a firm: Interest chargesRs. 50,000 SalesRs. 300,000 Tax rate 25 percent Net profit margin 3 percent What is the firm's times interest covered ratio? Solution: Sales = Rs. 300,000 Net profit margin = 3 per cent Net profit = Rs. 300,000 x 0. 03 = 9,000 Tax rate = 25 per cent 9,000 So, Profit before tax = = Rs. 12,000 (1-. 25) Interest charge = Rs. 50,000 So Profit before interest and taxes = Rs. 62,000 Hence 62,000 Times interest covered ratio == 1. 24 50,000 9. The following data applies to a firm : Interest chargesRs. 10,000,000 SalesRs. 80,000,000 Tax rate 50 percent Net profit margin 10 percent What is the firm's times interest covered ratio? Solution: Sales = Rs. 80,000,000 Net profit margin = 10 per cent Net profit = Rs. 80,000,000 x 0. 1 = 8,000,000 Tax rate = 50 per cent 8,000,000 So, Profit before tax = = Rs. 16,000,000 (1-. 5) Interest charge = Rs. 10,000,000 So Profit before interest and taxes = Rs. 26,000,000 Hence 26,000,000 Times interest covered ratio == 2. 6 10,000,000 10. A firm's current assets and current liabilities are 25,000 and 18,000 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1. 5? Solution: CA = 25,000CL = 18,000 Let BB stand for bank borrowing CA+BB = 1. 35 CL+BB 25,000+BB = 1. 35 18,000+BB 1. 35x 18,000 + 1. 35 BB = 25,000 + BB 0. 35BB = 25,000- 24,300 = 700 BB = 700/0. 35 = 2,000 11. LNG’s current assets and current liabilities are 200,000 and 140,000 respectively. How much additional funds can it borrow from banks for short term, withou t reducing the current ratio below 1. 33? Solution: CA = 200,000CL = 140,000 Let BB stand for bank borrowing CA+BB = 1. 33 CL+BB 200,000+BB = 1. 33 140,000+BB 1. 33 x 140,000 + 1. 33BB = 200,000 + BB 0. 33 BB = 200,000- 186,200 = 13,800 BB =13,800/0. 33 = 41,818 12. Navneet’s current assets and current liabilities are 10,000,000 and 7,000,000 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1. 4? Solution: CA = 10,000,000CL = 7,000,,000 Let BB stand for bank borrowing CA+BB = 1. 4 CL+BB 10,000,000+BB = 1. 4 7,000,000+BB 1. 4 x 7,000,000 + 1. 4BB = 10,000,000 + BB 0. 4 BB = 10,000,000- 9,800,000 = 200,000 BB = 200,000/0. 40 = 500,000 13. A firm has total annual sales (all credit) of 25,000,000 and accounts receivable of 8,000,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to 6,000,000? Solution: 25,000,000 Average daily credit sales = = 68,493 365 If the accounts receivable has to be reduced to 6,000,000 the ACP must be: 6,000,000 = 87. 6 days 68,493 14. A firm has total annual sales (all credit) of 1,200,000 and accounts receivable of 500,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to 300,000? Solution: 1,200,000 Average daily credit sales = = 3287. 67 365 If the accounts receivable has to be reduced to 300,000 the ACP must be: 300,000 = 91. 3 days 3287. 67 15. A firm has total annual sales (all credit) of 100,000,000 and accounts receivable of 20,000,000. How rapidly (in how many days) must accounts receivable be collected if management wants to reduce the accounts receivable to 15,000,000? Solution: 100,000,000 Average daily credit sales = = 273,972. 6 365 If the accounts receivable has to be reduced to 15,000,000 the ACP must be: 15,000,000 = 54. 8 days 273,972. 6 16. The financial ratios of a firm are as follows. Current ratio = 1. 25 Acid-test ratio = 1. 10 Current liabilities=2000 Inventory turnover ratio=10 What is the sales of the firm? Solution: Current assets = Current liabilities x Current ratio = 2000 x 1. 25 = 2500 Current assets – Inventories = Current liabilities x Acid test ratio 2000 x 1. 10 = 2200 Inventories = 300 Sales = Inventories x Inventory turnover ratio = 300 x 10 = 3000 17. The financial ratios of a firm are as follows. Current ratio = 1. 33 Acid-test ratio = 0. 80 Current liabilities=40,000 Inventory turnover ratio=6 What is the sales of the firm? Solution: Current assets = Current liabilities x Curre nt ratio = 40,000 x 1. 33 = 53,200 Current assets – Inventories = Current liabilities x Acid test ratio = 40,000 x 0. 80 = 32,000 Inventories = 21,200 Sales = Inventories x Inventory turnover ratio = 21,200 x 6 = 127,200 18. The financial ratios of a firm are as follows. Current ratio = 1. 6 Acid-test ratio = 1. 2 Current liabilities=2,000,000 Inventory turnover ratio=5 What is the sales of the firm? Solution: Current assets = Current liabilities x Current ratio = 2,000,000 x 1. 6 = 3,200,000 Current assets – Inventories = Current liabilities x Acid test ratio = 2,000,000 x 1. 2 = 2,400,000 Inventories = 800,000 Sales = Inventories x Inventory turnover ratio = 800,000 x 5 = 4,000,000 19. Complete the balance sheet and sales data (fill in the blanks) using the following financial data: Debt/equity ratio= 0. 80 Acid-test ratio= 1. 1 Total assets turnover ratio= 2 Days' sales outstanding in Accounts receivable= 30 days Gross profit margin= 30 percent Inventory turnover ratio = 6 Balance sheet Equity capital 80,000Plant and equipment. . . . Retained earnings 50,000Inventories. . . . Short-term bank borrowings . . . . Accounts receivable. . . . Cash. . . . . . . .. . . . Sales. . . . Cost of goods sold †¦Ã¢â‚¬ ¦.. Solution: Debt/equity = 0. 80 Equity = 80,000 + 50,000 = 130,000 So Debt = Short-term bank borrowings = 0. x 130,000 = 104,000 Hence Total assets = 130,000+104,000 = 234,000 Total assets turnover ratio = 2 So Sales = 2 x 234,000 = 468,000 Gross profit margin = 30 per cent So Cost of goods sold = 0. 7 x 468,000 = 327,600 Day’s sales outstanding in accounts receivable = 30 days Sales So Accounts receivable = x 30 360 468,000 = x 30 = 39,000 360 Cost of goods sold 327,600 Inventory turnover ratio === 6 Inventory Inventory So Inventory = 54,600 As short-term bank borrowing is a current liability, Cash + Accounts receivable Acid-test ratio = Current liabilities Cash + 39,000 = = 1. 1 104 ,000 So Cash = 75,400 Plant and equipment = Total assets – Inventories – Accounts receivable – Cash = 234,000 – 54,600 – 39,000 – 75,400 = 65,000 Putting together everything we get Balance Sheet Equity capital 80,000Plant & equipment65,000 Retained earnings50,000Inventories54,600 Short-term bank borrowings 104,000Accounts receivable39,000 Cash75,400 234,000 234,000 Sales 468,000 Cost of goods sold327,600 20. Complete the balance sheet and sales data (fill in the blanks) using the following financial data: Debt/equity ratio= 0. 40 Acid-test ratio= 0. 9 Total assets turnover ratio= 2. 5 Days' sales outstanding in Accounts receivable= 25 days Gross profit margin= 25 percent Inventory turnover ratio = 8 Balance sheet Equity capital 160,000,000Plant and equipment——–Retained earnings 30,000,000Inventories †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Short-term bank borrowings . . . †¦Ã¢â‚¬ ¦ Accounts receivable †¦.. . . . Cash . . . . . . . . . . . . Sales †¦. †¦. Cost of goods sold †¦Ã¢â‚¬ ¦. Solution: Debt/equity = 0. 40 Equity = 160,000,000 + 30,000,000 = 190,000,000 So Debt = Short-term bank borrowings = 0. 4 x 190,000,000 = 76,000,000 Hence Total assets = 190,000,000+ 76,000,000 = 266,000,000 Total assets turnover ratio = 2. 5 So Sales = 2. 5 x 266,000,000 = 665,000,000 Gross profit margin = 25 per cent So Cost of goods sold = 0. 75 x 665,000,000 = 498,750,000 Day’s sales outstanding in accounts receivable = 25 days Sales So Accounts receivable = x 25 360 665,000,000 = x 25 = 46,180,556 360 Cost of goods sold 498,750,000 Inventory turnover ratio == = 8 Inventory Inventory So Inventory = 62,343,750 As short-term bank borrowings is a current liability, Cash + Accounts receivable Acid-test ratio = Current liability Cash + 46,180,556 = = 0. 9 76,000 ,000 So Cash = 22,219,444 Plant and equipment = Total assets – Inventories – Accounts receivable – Cash 266,000,000 – 62,343,750 – 46,180,556 – 22,219,444 = 135,256,250 Putting together everything we get Balance Sheet Equity capital 160,000,000Plant & equipment 135,256,250 Retained earnings 30,000,000Inventories62,343,750 Short-term bank borrowings 76,000,000Accounts receivable46,180,556 Cash22,219,444 266,000,000 266,000,000 Sales 665,000,000 Cost of goods so ld 498,750,000 21. Complete the balance sheet and sales data (fill in the blanks) using the following financial data: Debt/equity ratio= 1. 5 Acid-test ratio= 0. 3 Total assets turnover ratio= 1. 9 Days' sales outstanding in Accounts receivable= 25 days Gross profit margin= 28 percent Inventory turnover ratio = 7 Balance sheet Equity capital 600,000Plant and equipment. . . . Retained earnings 100,000Inventories. . . . Short-term bank borrowings . . . Accounts receivable. . . . Cash. . . . . . . .. . . . Sales. . . †¦.. Cost of goods sold†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Solution: Debt/equity = 1. 5 Equity = 600,000 + 100,000 = 700,000 So Debt = Short-term bank borrowings =1. 5 x 700,000 = 1050,000 Hence Total assets = 700,000+1050,000 = 1,750,000 Total assets turnover ratio = 1. 9 So Sales = 1. 9 x 1,750,000 = 3,325,000 Gross profit margin = 28 per cent So Cost of goods sold = 0. 2 x 3,325,000 = 2,394,000 Day’s sales outstanding in accounts receivable = 25 days Sales So Accounts receivable = x 25 360 3,325,000 = x 25 = 230,903 360 Cost of goods sold 2,394,000 Inventory turnover ratio === 7 Inventory Inventory So Inventory = 342,000 As short-term bank borrowings is a current liability , Cash + Accounts re ceivable Acid-test ratio = Current liabilities Cash + 230,903 = = 0. 3 1050 ,000 So Cash = 84,097 Plant and equipment = Total assets – Inventories – Accounts receivable – Cash = 1,750,000 – 342,000 – 230,903 – 84,097 = 1,093,000 Putting together everything we get Balance Sheet Equity capital 600,000Plant &equipment 1,093,000 Retained earnings100,000Inventories 342,000 Short-term bank borrowings 1050,000Accounts receivable 230,903 Cash 84,097 1,750,000 1,750,000 Sales 3,325,000 Cost of goods sold2,394,000 22. Compute the financial ratios for Acme Ltd. Evaluate Acme's performance with reference to the standards. Acme Limited Balance Sheet, March 31, 20X7 Liabilities and Equity Equity capital Rs. 60,000,000 Reserves and surplus45,000,000 Long-term debt72,000,000 Short-term bank borrowing40,000,000 Trade creditors30,000,000 Provisions15,000,000 Total 62,000,000 Assets Fixed assets (net) Rs. 110,000,000 Current assets Cash and bank 30,000,000 Receivables45,000,000 Inventories 61,000,000 Pre-paid expenses 10,000,000 Others 6,000,000 Total 262,000,000 Acme Limited Profit and Loss Account for the Year Ended March 31, 20X7 Net sales Rs. 320,000,000 Cost of goods sold 204,000,000 Gross profit 116,000,000 Operating expenses 50,000,000 Operating profit 66,000,000 Non-operating surplus 4,000,000 Profit before interest and tax 70,000,000 Interest 12,000,000 Profit before tax 58,000,000 Tax 20,000,000 Profit after tax 38,000,000 Dividends 4,000,000 Retained earnings 34,000,000 AcmeStandard Current ratio 1. 3 Acid-test ratio 0. 70 Debt-equity ratio 2. 0 Times interest covered ratio 4. 5 Inventory turnover ratio 5. 0 Average collection period 45 days Total assets turnover ratio 1. 5 Net profit margin ratio 8 % Earning power 20 % Return on equity 18 % Solution: For purposes of ratio analysis, we may recast the balance sheet as under. Let assume that ‘Others’ in the balance sheet represents other current assets. Liabilities and Equity Equity capital . 60,000,000 Reserves and surplus45,000,000 Long-term debt72,000,000 Short-term bank borrowing40,000,000 Total 217,000,000 Fixed assets (net) 110,000,000 Current assets Cash and bank30,000,000 Receivables45,000,000 Inventories61,000,000 Pre-paid expenses10,000,000 Others 6,000,000 152,000,000 Less: Current liabilities Trade creditors30,000,000 Provisions15,000,000 45,000,000 Net current assets 107,000,000 Total 217,000,000 Current assets (i) Current ratio = Current liabilities 152,000,000 == 1. 8 85,000,000 (Current liabilities here includes short-term bank borrowing also) Current assets – Inventories 91,000,000 (ii) Acid-test ratio = == 1. 1 Current liabilities 85,000,000 Current liabilities here includes short-term bank borrowing also) Long-term debt + Short-term bank borrowing (iii) Debt-equity ratio = Equity capital + Reserves & surplus 72,000,000 + 40,000,000 = = 1. 1 60,000,000 + 45,000,000 Profit before interest and tax (iv) Times interest coverage ratio = Interest 70,000,000 == 5. 83 12,000,000 Cost of goods sold204,000,000 (v) Inventory turnover period = = = 3. 34 Invent ory61,000,000 365 (vi) Average collection period = Net sales / Accounts receivable 365 = =51. 3 days 320,000,000/45,000,000 (vii) Total assets =Equity + Total debt =( 60,000,000 + 45,000,000 ) +(72,000,000+40,000,000) = 217,000,000 Net sales320,000,000 Total assets turnover ratio = == 1. 5 Total assets217,000,000 Profit after tax 38,000,000 (ix) Net profit margin= = = 11. 9% Net sales 320,000,000 PBIT 70,000,000 (x) Earning power = = = 32. 3 % Total assets 217,000,000 Equity earning 38,000,000 (xi) Return on equity = = = 36. 2 % Net worth 105,000,000 The comparison of the Acme’s ratios with the standard is given below AcmeStandard Current ratio 1. 8 1. 3 Acid-test ratio 1. 1 0. 7 Debt-equity ratio 1. 1 2. 0 Times interest covered ratio 5. 8 4. 5 Inventory turnover ratio 3. 3 5. 0 Average collection period 51. 3 days 45 days Total assets turnover ratio 1. 5 1. 5 Net profit margin ratio 11. 9 % 8 % Earning power 32. 3 % 20 % Return on equity 36. 2 % 18 % 23. Compute the financial ratios for Nainar Ltd. Evaluate Nainar's performance with reference to the standards. Nainar Limited Balance Sheet, March 31, 20X7 Liabilities and Equity Equity capital Rs. 100,000,000 Reserves and surplus 65,000,000 Long-term debt 140,000,000 Short-term bank borrowing 70,000,000 Trade creditors 24,000,000 Provisions 19,000,000 Total 418,000,000 Assets Fixed assets (net) Rs. 206,000,000 Current assets Cash and bank 25,000,000 Receivables 70,000,000 Inventories 85,000,000 Pre-paid expenses 20,000,000 Others 12,000,000 Total 418,000,000 Nainar Limited Profit and Loss Account for the Year Ended March 31, 20X7 Net sales Rs. 740,000,000 Cost of goods sold 520,000,000 Gross profit 220,000,000 Operating expenses 102,000,000 Operating profit 118,000,000 Non-operating surplus 12,000,000 Profit before interest and tax 130,000,000 Interest 22,000,000 Profit before tax 108,000,000 Tax 46,000,000 Profit after tax 62,000,000 Dividends 20,000,000 Retained earnings 42,000,000 NainarStandard Current ratio 1. 7 Acid-test ratio 1. 0 Debt-equity ratio 1. 4 Times interest covered ratio 5. 5 Inventory turnover ratio 6. 0 Average collection period 40 days Total assets turnover ratio 2. 0 Net profit margin ratio 8 % Earning power 30 % Return on equity 35 % Solution: For purposes of ratio analysis, we may recast the balance sheet as under. Let assume that ‘Others’ in the balance sheet represents other current assets. Liabilities and Equity Equity capital 100,000,000 Reserves and surplus 65,000,000 Long-term debt 140,000,000 Short-term bank borrowing 70,000,000 Total 375,000,000 Assets Fixed assets (net) 206,000,000 Current assets Cash and bank 25,000,000 Receivables 70,000,000 Inventories 85,000,000 Pre-paid expenses 20,000,000 Others 12,000,000 212,000,000 Less: Current liabilities Trade creditors24,000,000 Provisions19,000,000 43,000,000 Net current assets 169,000,000 Total 375,000,000 Current assets (i) Current ratio = Current liabilities 212,000,000 == 1. 9 113,000,000 ( Current liabilities here includes short-term bank borrowing also) Current assets – Inventories 127,000,000 (ii) Acid-test ratio = == 1. 1 Current liabilities 113,000,000 ( Current liabilities here includes short-term bank borrowing also) Long-term debt + Short-term bank borrowing (iii) Debt-equity ratio = Equity capital + Reserves & surplus 140,000,000 + 70,000,000 = = 1. 3 100,000,000 + 65,000,000 Profit before interest and tax (iv) Times interest coverage ratio = Interest 130,000,000 == 5. 9 22,000,000 Cost of goods sold520,000,000 (v) Inventory turnover period = = = 6. 1 Inventory85,000,000 365 (vi) Average collection period = Net sales / Accounts receivable 365 = =34. 5 days 740,000,000/70,000,000 (vii) Total assets = Equity + Total debt =(100,000,000 + 65,000,000 ) +(140,000,000+70,000,000) = 375,000,000 Net sales740,000,000 Total assets turnover ratio = == 2. 0 Total assets375,000,000 Profit after tax 62,000,000 (ix) Net profit margin= = = 8. 4 % Net sales 740,000,000 PBIT 130,000,000 (x) Earning power = = = 34. 7 % Total assets 375,000,000 Equity earning 62,000,000 (xi) Return on equity = = = 37. 6 % Net worth 165,000,000 The comparison of the Nainar’s ratios with the standard is given below NainarStandard Current ratio 1. 9 1. 7 Acid-test ratio 1. 1 1. 0 Debt-equity ratio 1. 3 1. 4 Times interest covered ratio 5. 9 5. 5 Inventory turnover ratio 6. 1 6. 0 Average collection period 34. 5 days 40 days Total assets turnover ratio 2. 0 2. 0 Net profit margin ratio 8. 4 % 8 % Earning power 34. 7 % 30 % Return on equity 37. 6 % 35 % 24. The comparative balance sheets and comparative Profit and Loss accounts for Nalvar Limited, are given below: Comparative Balance Sheets, Nalvar Limited (Rs. in million) | |20X3 |20X4 |20X5 |20X6 |20X7 | |Share capital |1. 6 |1. 6 |1. |1. 8 |2 | |Reserves and surplus |1. 0 |1. 6 |2. 4 |2. 3 |3 | |Long-term debt |1. 4 |1. 5 |1. 8 |1. 6 |1. 4 | |Short-term bank borrowing |1. 3 |1. 5 |1. 7 |1. 5 |1. 2 | |Current liabilities |1. 1 |1. 3 |1. 5 |1. 6 |1. 8 | |Total |6. 4 |7. 5 |9. 2 |8. |9. 4 | |Assets | | | | | | |Net fixed assets |1. 2 |1. 4 |2 |1. 7 |2 | |Current assets | | | | | | | Cash and bank |0. 3 |0. 3 |0. 2 |0. 4 |0. 3 | | Receivables |1. 8 |2. 1 |2. 5 |2. 4 |2. | | Inventories |1. 8 |2. 2 |2. 8 |2. 4 |2. 8 | | |1. 3 |1. 5 |1. 7 |1. 9 |1. 8 | |Other assets | | | | | | |Total |6. 4 |7. 5 |9. 2 |8. 8 |9. 4 | | | | | | | | Comparative Profit and Loss Accounts, Nalvar Limited (Rs. in million) | | |20X4 |20X5 |20X6 |20X7 | | |20X3 | | | | | | | | | | | | |Net sales |3. 8 |4. 2 |5. 3 |6. 5 |7. 8 | |Cost of goods sold |2. 6 |3. |3. 9 |4 |4. 8 | |Gross profit |1. 2 |1. 1 |1. 4 |2. 5 |3 | |Operating expenses |0. 3 |0. 3 |0. 4 |0. 6 |0. 6 | |Operating profit |0. 9 |0. 8 |1 |1. 9 |2. 4 | |Non-operating surplus deficit |0. 1 |0. 2 |0. 1 |0. 3 |0. 3 | |Profit before interest and tax |1 |1 |1. |2. 2 |2. 7 | |Interest |0. 1 |0. 1 |0. 2 |0. 1 |0. 1 | |Profit before tax |0. 9 |0. 9 |0. 9 |2. 1 |2. 6 | |Tax |0. 05 |0. 08 |1 |1. 2 |1. 2 | |Profit after tax |0. 85 |0. 82 |-0. 1 |0. 9 |1. 4 | Required: Compute the important ratios for Nalvar Limited for the years 20X3-20X7. You may assume that other assets in the balance sheet represent other current assets. †¢ Current ratio †¢ Debt-equity ratio †¢ Total assets turnover ratio †¢ Net profit margin †¢ Earning power †¢ Return on equity Solution: We will rearrange the balance sheets as under for ratio analysis. It is assumed that ‘Other assets’ are other current assets |Liabilities and Equity | | | | | | |†¢ Current ratio |2. 2 |2. 2 |2. 3 |2. 3 |2. 5 | |†¢Ã‚  Ã‚  Ã‚  Debt-equity ratio |1. 0 |0. 9 |0. 8 |0. 8 |0. | |Total assets turnover ratio |0. 7 |0. 7 |0. 7 |0. 9 |1. 0 | |†¢Ã‚  Ã‚  Ã‚  Net profit margin(%) |22. 4 |19. 5 |-1. 9 |13. 8 |17. 9 | |†¢Ã‚  Ã‚  Ã‚  Earning power (%) |18. 9 |16. 1 |14. 3 |30. 6 |35. 5 | |†¢Ã‚  Ã‚  Ã‚  Return on equity (%) |32. 7 |25. 6 |-2. 4 |22. 0 |28. 0 | 26. The comparative balance sheets and comparative Profit and Loss accounts for Somani Limited, a machine tool manufacturer, are given below: Comparative Ba lance Sheets, Somani Limited (Rs. in million) | | | 20X5 | 20X6 | 20X7 | | | |20X4 | | | | | |20X3 | | | | | |Share capital |41 |50 |50 |50 |55 | |Reserves and surplus |16 |36 |72 |118 |150 | |Long-term debt |28 |25 |30 |29 |22 | |Short-term bank borrowing |35 |30 |36 |38 |38 | |Current liabilities |24 |28 |30 |30 |25 | |Total |144 |169 |218 |265 |290 | |Assets | | | | | | |Net fixed assets |72 |80 |75 |102 |103 | |Current assets | | | | | | | Cash and bank |8 |9 |15 |12 |11 | | Receivables |24 |30 |59 |62 |85 | | Inventories |35 |42 |55 |75 |79 | |Other Assets |5 |8 |14 |14 |12 | |Total |144 |169 |218 |265 |290 | | | | | | | | |Comparative Profit & Loss Account of Somani Ltd | | (Rs. n million) | | | |20X4 |20X5 |20X6 |20X7 | | |20X3 | | | | | |Net sales |285 |320 |360 |350 |355 | |Cost of goods sold |164 |150 |170 |175 |174 | |Gross profit |121 |170 |190 |175 |181 | |Operating expenses |64 |66 |68 |68 |64 | |Operating profit |57 |104 |122 |107 |117 | |Non-operating surplus defic it |3 |4 |4 |3 |3 | |Profit before interest and tax |60 |108 |126 |110 |120 | |Interest |8 |6 |10 |12 |12 | |Profit before tax |52 |102 |116 |98 |108 | |Tax |15 |26 |30 |26 |29 | |Profit after tax |37 |76 |86 |72 |79 | | | | | | | | Compute the following ratios for years 20X3-20X7: †¢ Current ratio †¢ Debt-equity ratio †¢ Total assets turnover ratio †¢ Net profit margin †¢ Earning power †¢ Return on equity For ratio analysis purpose, we will rearrange the balance sheet as under. It is assumed that ‘Other assets’ are other current assets 20X3 20X4 20X5 20X6 20X7 |Share capital | |41 | |50 | | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Current ratio |1. 2 |1. 5 |2. 2 |2. 4 |3. 0 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Debt-equity ratio |1. 1 |0. 6 |0. 5 |0. 4 |0. | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Total assets turnover ratio |2. 4 |2. 3 |1. 9 |1. 5 |1. 3 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Net profit margin (%) |13. 0 |23. 8 |23. 9 |20. 6 |22. 3 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Earning power (%) |50. 0 |76. 6 |67. 0 |46. 8 |45. 3 | |†¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Return on equity (%) |64. 9 |88. 4 |70. 5 |42. 9 |38. 5 | 26. The Balance sheets and Profit and Loss accounts of LKG Corporation are given below. Prepare the common size and common base financial statements |Balance Sheets (Rs. n million) | | |20Ãâ€"6 |20Ãâ€"7 | |Shareholders’ funds |256 |262 | |Loan funds |156 |212 | |Total |412 |474 | |Fixed assets |322 |330 | |Investments |15 |15 | |Net current assets |75 |129 | |Total |412 |474 | |Profit & Loss Accounts | |(Rs. n million) | | |20Ãâ€"6 |20Ãâ€"7 | |Net sales |623 |701 | |Cost of goods sold |475 |552 | |Gross profit |148 |149 | |PBIT |105 |89 | |Interest |22 |21 | |PBT |83 |68 | |Tax |41 |34 | |PAT |42 |34 | Solution: Common Size statements: Profit and Loss Account | |Regular ( in Rs. |Common Size(%) | | |million) | | | | |20Ãâ€"6 |20Ãâ€"7 | |20Ãâ€"6 |20Ãâ€"7 | |Net sales |623 |701 | |100 |100 | |Cost of goods sold |475 |552 | |76 |79 | |Gross profit |148 |149 | |24 |21 | |PBIT |105 |89 | |17 |13 | |Interest |22 |21 | |4 |3 | |PBT |83 |68 | |13 |10 | |Tax |41 |34 | |7 |5 |PAT |42 |34 | |7 |5 | | | | Balance Sheet | | |Regular ( in million)| |Common Size(%) | | |20Ãâ€"6 |20Ãâ€"7 | |20Ãâ€"6 |20Ãâ€"7 | |Shareholders' funds |256 |262 | |62 |55 | |Loan funds |156 |212 | |38 |45 | |Total |412 |474 | |100 |100 | |Fixed assets |322 |330 | |78 |70 | |Investments |15 |15 | |4 |3 | |Net current assets |75 |129 | |18 |27 | |Total |412 |474 | |100 |100 | 27. The Balance sheets and Profit and Loss accounts of Grand Limited are given below. Prepare the common size and common base financial statements Balance Sheet | | |20Ãâ€"6 |20Ãâ€"7 | |Shareholders’ fund |85 |85 | |Loan funds |125 |180 | |Total |210 |265 | |Fixed assets |127 |170 | |Investments |8 |10 | |Net current assets |75 |85 | |Total |210 |265 | |Profit & Loss Account | | |20Ãâ€"6 |20Ãâ€"7 | |Net sales 450 |560 | |Cost of goods sold |320 |410 | |Gross profit |130 |150 | |PBIT |85 |98 | |Interest |12 |17 | |PBT |73 |81 | |Tax |22 |38 | |PAT |51 |43 | Solution: |Balance Sheet |Regular (Rs. n million) |Common Size(%) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Shareholders' funds |85 |85 |40 |32 | |Loan funds |125 |180 |60 |68 | |Total |210 |265 |100 |100 | |Fixed assets |127 |170 |60 |64 | |Investments |8 |10 |4 |4 | |Net current assets |75 |85 |36 |32 | |Total |210 |265 |100 |100 | |Profit & Loss Account |Regular (Rs. n million) |Common Size(%) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Net sales |450 |560 |100 |100 | |Cost of goods sold |320 |410 |71 |73 | |Gross profit |130 |150 |29 |27 | |PBIT |85 |98 |19 |18 | |Interest |12 |17 |3 |3 | |PBT |73 |81 |16 |14 | |Tax |22 |38 |5 |7 | |PAT |51 |43 |11 |8 | |Common base year statements | |Balance Sheet |Regular (Rs. n million) |Common base year (%) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Shareholders' funds |85 |85 |100 |100 | |Loan funds |125 |180 |100 |144 | |Total |210 |265 |100 |126 | |Fixed assets |127 |170 |100 |134 | |Investments |8 |10 |100 |125 | |Net current assets |75 |85 |100 |113 | |Total |210 |265 |100 |126 | |Profit & Loss Account |Regular (Rs. n million) |Common base year (% ) | | |20Ãâ€"6 |20Ãâ€"7 |20Ãâ€"6 |20Ãâ€"7 | |Net sales |450 |560 |100 |124 | |Cost of goods sold |320 |410 |100 |128 | |Gross profit |130 |150 |100 |115 | |PBIT |85 |98 |100 |115 | |Interest |12 |17 |100 |142 | |PBT |73 |81 |100 |111 | |Tax |22 |38 |100 |173 | |PAT |51 |43 |100 |84 | CHAPTER 5 1. The profit and loss account of Sasi Industires Limited for years 1 and 2 is given below: Using the percent of sales method, prepare the pro forma profit and loss account for year 3. Assume that the sales will be 3500 in year 3. If dividends are raised to 40, what amount of retained earnings can be expected for year 3? |Year | | |1 |2 | |Net sales |2300 |2700 | |Cost of goods sold |1760 |2000 | |Gross profit |540 |700 | |Selling expenses |150 |180 | |General and administration expenses |120 |124 | |Depreciation |94 |84 | |Operating profit |176 |312 | |Non-operating surplus deficit |12 |10 | |Earnings before interest and tax |188 |322 | |Interest |30 |38 | |Earnings before tax |158 |284 | |Tax |56 |96 | |Earnings after tax |102 |188 | |Dividends |35 |35 | |Retained earnings |67 |153 | Solution: |Year | | | | |1 |2 |Average percent |Proforma Profit & Loss| | | | |of sales |account for year 3 | | | | | |assuming sales of 3500| |Net sales |2300 |2700 |100 |3500 | |Cost of goods sold |1760 |2000 |75. 30 |2635. 43 | |Gross profit |540 |700 |24. 70 |864. 57 | |Selling expenses |150 |180 |6. 59 |230. 80 | |General and administration expenses |120 |124 |4. 90 |171. 7 | |Depreciation |94 |84 |3. 60 |125. 97 | |Operating profit |176 |312 |9. 60 |336. 14 | |Non-operating surplus deficit |12 |10 |0. 45 |15. 61 | |Earnings before interest and tax |188 |322 |10. 05 |351. 75 | |Interest |30 |38 |1. 36 |47. 46 | |Earnings before tax |158 |284 |8. 69 |304. 29 | |Tax |56 |96 |3. 00 |104. 3 | |Earnings after tax |102 |188 |5. 70 |199. 46 | |Dividends(given) |35 |35 | |40 | |Retained earnings |67 |153 | |159. 46 | 2. The profit and loss account of KG Electronics Limited for years 1 and 2 is given below: Using the percent of sales method, prepare the pro forma profit and loss account for year 3. Assume that the sales will be 26,000 in year 3. If dividends are raised to 500, what amount of retained earnings can be expected for year3 . |Year | | |1 |2 | |Net sales |18,230 |22,460 | |Cost of goods sold |13,210 |16100 | |Gross profit |5020 |6360 | |Selling expenses |820 |890 | |General and administration expenses

Change Management Report

Through an extensive range of skills and experience, the A-Belch Group has significant engineering and design capabilities to provide a complete and bespoke first class engineered solution from design to manufacture. Electrical and Mechanical engineering excellence Bespoke design solutions New product development programmer with continuous testing and development Quality design software enabling precision design and manufacture Continuous The Group incorporates HAD Lighting, A-Belch Hazardous Area, MAP Solutions, Electrical Engineering and Industrial Connectors.The extensive product portfolio includes the HAD Hazardous area lighting range, hazardous area enclosures, witchery, electrical distribution panels, electrical accessories and innovative modular building service solutions. The Group is an established supplier to the UK and international petrochemical, energy, rail and construction markets. With over 25 years' experience in the energy sector, A-Belch excels in quality, price an d delivery and after sales support.My role within the organization is to plan and manage the production of the Had cell. A-Belch is SISSIES :2008 accredited – see attachment 1 . Part of my role is to ensure the product we manufacture is of a high quality and tests the SIRS certification requirements. Due to the highly hazardous environments our products are used in we must ensure all shop floor operatives follow controlled drawings and SOPs for each build stage. See attachment 2 for controlled drawing. Attachment 3 is an SOP that is used by shop floor operatives.The department strives for continuous improvements and all staff are encouraged to offer their opinions to develop the department further. It is important that the department continuously improves in its working practices and procedure to keep up with a growing demand for our product and changing market place. As the company is ISO accredited the quality management systems have been prepared to BBS EN ISO 9001 :2008 a nd ISO/ICE 80079-34. My department manufacture products that are certified explosion proof lighting for hazardous area.All products are TEX and ICE certified and due to this a high level of quality is required during manufacture. All products are built to drawings which have been produced from certification drawings issued to SIRS the certification body. Without SIRS certification and approval no products can be manufactured. On each drawing is a list of components required is listed for the build. Along with the manufacture drawing a wiring diagram is supplied and a works instruction for the product. All finished goods are signed off by the production supervisor after being inspected.Each build has a check sheet with stages of each Job that need to be complete and signed off by the relevant operator, these are then kept and filed for future reference and can be used if goods are returned due to a quality issue relating to the build as I am able to identify which operator manufactur ed the unit and apply the appropriate action or complete refresher training. Identify a change that is required identify a change required in the workplace and explain the potential benefits of this change to the organization.In order to identify the factors that may require the company to change I have conducted a SOOT analysis – See below. STRENGTHS Growing company New product design Influential in the market place Loyal customers Dedicated staff Repeat business Competitive products USPS Team moral Opportunities Future Product development Supplier reviews – current changes needed to our supply of major components Additional business Current BOO items moving to manufactured itemsFactory expansion Increase in current output up to millions – new factory expansion WEAKNESS Health and Safety policies Environmental policies Lack of hazardous waste disposal Lead Times Manufacturing build issues High failure rate on some products Succession Management Competitors New products released to market by competitors Supplier price increase Market change Double dip recession Previous product quality issues From the SOOT analysis I have identified a change needed to our current health and safety procedures relating to our potting machines.Changing our current potting canines and process this will reduce down time and lead times, reduce annual cost, increase additional business and add to the growth and success of the department which will allow the company to develop in line with changes in the market place. Currently both potting machines run on a manual fill system where by each operative using the machine has to fill each hopper up by hand. In order to do this they need to stand on ladders and fill each hopper.The approve. Weight of both the activator and base is KEG each. The activator is a harmful substance which can irritate the skin an eyes. Correct PEP is worn by each operative; however there is always a risk of both the activator and base splash ing the individual. Manual handling is also a concern as the operative must climb onto step ladders carrying the base/activator to fill the hopper. Handling and risks to each operative can be avoided by moving to an automated bulk feed system.By moving over to the automated system the health and safety risks will be reduced significantly as there will be no need for each individual to manually fill each hopper. The automated bulk feed system will be installed for both potting machines and will insist of twin pneumatically operated double acting diaphragm pumps with dip tubes and four off outlet hoses up to machine mounted reservoirs. Electronic high- level sensors will be fitted to each reservoir to automatically call-off material from the supply drum on demand and stop when the reservoir is full.Pneumatically actuated ball valves will also be fitted onto each reservoir. Approve. Cost for this fitment EH,386. O + vat (inclusive of control box & on-site labor to fit) The proposed mov e over to an automated bulked system for both machines will: Reduce down time Reduce lead times Improve Health and Safety Improve potting procedures Reduce cost Reduce the amount of space needed to store the potting compound Reduce waste There will also be a cost saving to the company of approve.EH,81 5 per annum based on previous usage. This is due to the unit price of the potting compound being reduced by moving over to large KEG drums. Planning and monitoring the change State the objectives of the change in order of their priority. At least one must be a SMART objective. Prepare an action plan for implementing the change. Explain the technique you would use to monitor the achievement of the primary objective. The objectives of the change are as follows:To purchase and install automated bulk feed system within stated budget week commencing 16th September 2013 To have all shop floor operatives trained on the safe use of new equipment by 30th September 2013 Priority: 1) Health and S afety Improvements 2) Reduce cost 3) Reduce down time 4) Reduce manufacturing lead times 5) Improve potting procedures waste The above has been identified by conducting a SMART analysis Specific Implementation of bulk feed system for both potting machines What: What do I want to accomplish?Improvements to health and safety of shop floor operatives Cost saving – see below. Why: Specific reasons, purpose or benefits of accomplishing the goal. Reduce down time Who: Who is involved? Potting Machine Supplier – Meter Mix Potting Compound Supplier – Greenfield Polymers Production Manager – Me Floor Manager – SST Handmaids Shop floor operatives Divisional Director – Bob Scott Chief Executive – Brian Trench Where: Identify a location. New Had manufacturing facility Which: Identify requirements and constraints.Proposal of the change and cost savings/payback and benefits will have to be presented to higher management Upfront cost needed Current stock may be an issue as we use KEG drums and not KEG – need to identify if we can use current drums or swap with supplier for larger ones Identify space needed – this could be an issue. Will we have enough space for the bulk feed system in the new factory? Measurable How much? How many? Two machines will be needed How will I know when it is accomplished in 12 months' time when cost savings can be recorded Achievable How: How can the goal be accomplished?A report will need to be drafted up to highlight the benefits Installation will be done by Intermix Training of all shop floor operatives will be complete by the Floor Manager Relevant Does this seem worthwhile? The upfront cost is expensive, however the benefits the manufacturing cell and cost saving the company will gain outweigh the cost There is also a payback time due to the cost saving of the potting compound Is this the right time?Yes, the changeover is needed to reduce downtime and to allow output to increase C ompletion of the new factory extension will be the best time to implement this Are you the right person? As the Production Manager for the department I am responsible for the improvements to the department Time Based When? Implementation/installation – September 2013 What can I do six weeks from now? Sign off from Director Arrange Meeting with potting machine supplier to get the ball rolling Arrange meeting with potting compound supplier to inform of change What can I do today?Prepare report for Director of the benefits and cost of the bulk feed system In order to proceed with the change I have prepared an action plan detailing the stages I will need to work through in order to implement the change. Action Plan: Date of activity 1) Supplier Meetings Potting Machine – Meter Mix Advise on how the bulk feed system will work Discuss Cost Delivery and installation date to be agreed Discuss Training of staffPotting Compound – Greenfield Polymers Cost of KEG drums Can current KEG drums be used on bulk feed machines December 2012 2) Prepare report for Divisional Director Highlight cost saving Payback Benefits January 2013 – See attachment 4 3) Sign off by Divisional Director and Chief Executive January / February 2013 4) Supplier Meeting Agree options Discuss payment options Agree installation date April 2013 5) Raise purchase order and send to Meter Mix September 2013 6) Discuss with Floor Manager and add new location to new factory floor plan June 2013 7) Implementation/limitations w/c 16th September 2013 ) Staff Training Include in training matrix for all Shop Floor Operatives Tool Box Talk to be auctioned SOP to be updated 9) Stock change over January 2014 10) Record cost savings monthly Monthly spend and usage Compare finding against previous 12 months sales Record findings in a spread sheet In order to monitor the achievement of the primary objective I would monitor the monetary value of the activator and base per month based on the u sage and compare this against previous months before the new bulk feed system was implemented. This would be recorded in in a spreadsheet which I would design. The health and safety of each member of staff using this equipment is vital, however the improvements to the health and safety is difficult to manage. In order to ensure highlighting the differences between the two machines relating to health and safety. I would also perform a questionnaire with the operators using the machine to record feedback on the improvements to health and safety.Implications of the change Explain the possible financial effects of the change on the organization, Explain the possible effects on people inside the organization Identify any potential barriers to change and suggest practical ways of overcoming these In order to commission the bulk feed system there is an initial outlay of EH,386. O, however this has a payback time of 43 months after which the company will save approve. EH,81 5 per annum on p otting compound based on current usages. If I factor in the saving in down time on the factory floor this equates to a saving of 0. App per 25 KEG drum so therefore the payback time will decrease to 30 months.Even though there is a financial out lay the improvements to health and safety outweigh these massively. There will be a staff training exercise to complete with each Shop Floor Operative and raining to be received from Intermix who are installing the potting machine. The training will be given by the Shop Floor Manager to each staff member and a tool box talk will be completed. Future stock of the potting compound will have to be managed differently so training will need to be given to the department buyer as to how she will manage this. Attachment 5 shows the team update that was sent to inform every one of the status of the bulk feed system and update the buyer on how she is to manage stock Sty and orders.Discussions with Greenfield Polymers have been made by me in order to inform them f our current stock Sty's and discuss when the change over to KEG drums will take place. The final batch of KEG drum stock needs to be purchased from our supplier first before the changeover happens. See attachment 6. Currently the activator and base are purchased on one part number and ordered in a 5:1 ratio. In order to simplify this I have created separate part numbers for both components which after discussing with Greenfield Polymers will make ordering and consumption of stock more manageable and straight forward. Attachment 7 shows the price breaks for both the activator and potting compound.By creating separate art numbers AL 10049 – Base and ALLELUIA – Activator will also allow us to manage the stock more efficiently when stock takes take place as each individual item will be counted separately. The biggest barrier I will need to overcome will be convincing the Had Director and Chief executive that this change needs to happen and the positive impact it will have benefits to the organization and people within it and the cost saving this change will make. This should suffice as evidence the system is needed and the benefits this will have to the team and company. See attachment 4. This report will be presented to he Had Director and the main objectives discussed.Communicating and implementing the change Identify who needs to know about the change, describe how you will communicate with them and explain why it is important to communicate the change to them. Explain how you will continually improve once the change has been implemented. Explain how you will involve your team in doing this, and identify which tools or techniques you could use and how you would evaluate these improvement activities. The Had Office team and Shop Floor Operatives need to know about the change as there are action points for some staff members. They will be made aware of the commission of the bulk feed system via email and any questions they have will be discussed. Attachment 5 shows one of the updates I will send to the team making them aware of the commission date and stock management.Once the bulk feed system has been commissioned an email will be sent with photographs of the bulk feed system and the improvements this will make to the team and Production Department. This email will be sent to the Office team, Floor Manager and Had Director. The Health and Safety Manager will also be included in this email and made aware of the change as the improvements to Health and Safety f Staff members is quite significant. Once the change has been implemented it is important to review this in order to improve the process. Some areas that I would review would be the following: Improvements to equipment – I would contact Intermix who installed the machine to see if there is any additional equipment that could be bought to reduce down time further.

Cola Wars paper

Cola Wars paper Cola Wars paper Coke and Pepsi – Cola Wars A1) Porter’s five forces analysis of why this industry has been profitable: Threat of new entry – Extremely low There are many different barriers to new entry in the CSD industry. Some of them mentioned in the case are: Bottlers – Pepsi and Coke have exclusive franchisee agreements with a lot of bottlers since they are a crucial step in the chain. The exclusivity of these restricts the bottlers from working with anyone else so newcomers would be at an extreme disadvantage having to do this in-house. Bottling is the most expensive part of the chain so this would increase the cost to entry since the firms would need a very large capital investment to start off with. New plants with a 40 million-case bottling capacity costs $75 million in 2005. The acquisition, consolidation and tight integration of the bottlers with the concentrate producers, results in very few bottlers who would want to work with any newcomer to provide distribution. The geographic area rights in perpetuity, provided in the negotiated agreements, incentivize the bottlers to stick with their current clients. Brand Loyalty: Coke and Pepsi have a large amount of Brand equity, which seems insurmountable to the competition, especially if just entering the market. Expenditure on Advertising and Marketing: The new entrants cannot even begin to compete based on the high costs of advertising and marketing, which are borne primarily by the concentrate producers. In 2004 these would have been almost $3.46 billion (0.51 per case * 6.8 billion cases). Price undercutting, a strategy frequently employed by Pepsi and Coke, would drive out new entrants as they would be squeezed on their margins constantly and would not have the advantage of economies of scale in the beginning. Retail Channel: Entrenched relationships with Coke, Pepsi and Cadbury Schweppes are hard to compete against as a new entrant. The channel members are heavily incentivized at the cost of profitability of the concentrate producers in some cases (Coke and Burger king, Page 4); a move that a new entrant can just not afford. Together the big players have taken control of buying, installing and servicing vending machines as well as developing vending technology. Buyers – Can exert power and discriminate but managed through partnerships The buyers are the channel members and include Supermarkets, fountain outlets, vending machines, mass merchandisers (Super centers, mass retailers, club stores), convenience stores, gas stations and other outlets. Their power to exert downward pressure on prices depends on their share of industry volume (relative to other buyers) and their cost of switching to another brand. Coke and Pepsi have been able to consistently maintain profitability by testing price sensitivities with expanding products, innovating to drive impulse purchases and target different segments using separate retail channels. A big reason behind this profitability is also the partnerships and ongoing investments concentrate producers and bottlers have maintained with the retail channel to distribute CSDs. Supermarkets: CSDs are a big draw to the supermarkets and annual sales reached $12.4 billion in 2004. Since they result in the highest volume of distribution, the existing duopoly fights very hard for shelf space, which is at a premium. Impulse purchases and expanding product lines keep profitability consistent. Fountain outlets: Many existing producers are already incentivizing fountain outlets to carry their product (like Coke to burger king) despite a hit on their profitability. The expectation is that over time this may lead to high profits due to consistent recurring sales. Vending machines: The bottlers have taken over the buying, installing and servicing of machines while incentivizing store owners with negotiated contracts. Concentrate producers encourage this investment and also play a role in the development of vending technologies. Mass merchandisers: An

Using the Comma in Spanish

Using the Comma in Spanish Most of the time, the comma in Spanish is used much like the comma in English. However, there are some differences, particularly in numbers and in comments that are inserted within sentences. Using Commas to Separate Items in a Series Unlike in English, where the Oxford comma  is optionally  used before the final item in a series, a comma is not used before the final item of a series when it follows the conjunction e, o, ni, u or y. El libro explicaba de una forma concisa, sencilla y profunda la crisis financiera. The book explained the financial crisis in a concise, simple and profound way. (In English, a comma could optionally be added after simple.)Mezcle bien con las papas, los huevos y las remolachas. (Mix well with the potatoes, eggs, and beets.) ¿Quieres tres, dos o una? (Do you want three, two, or one?) If an item in a series has a comma within it, you should use a  semicolon. Using Commas for  Explanatory Phrases and Apposition The rule on explanatory phrases is much the same as it is in English. If a phrase is used to explain what something is like, it is set off by commas. If it is used to define which something is being referred to, it is not. For example, in the sentence El coche que est en el garaje es rojo (The car that is in the garage is red), commas are not needed because the explanatory phrase (que est en el garaje/that is in the garage) is telling the reader which car is being discussed. But punctuated differently, the sentence el coche, que est en el garaje, es rojo (the car, which is in the garage, is red) uses the phrase not to tell the reader which car is being discussed but to describe where it is. An overlapping concept is that of apposition, in which a phrase or word (usually a noun) is immediately followed by another phrase or word that in the context means the same thing,  is similarly punctuated much as in English. El hombre, quien tiene hambre, quiere verte. (The man, who is hungry, wants to see you. The phrase quien  tiene hambre is being used to describe the man, not to define which man is being talked about.)El hombre en el cuarto quiere verte. (The man in the room wants to see you. No comma is needed because en el cuarto is being used to say which man is being talked about.)Amo a mi hermano, Roberto. I love my brother, Roberto. (I have one brother, and he is named Roberto.)Amo a mi hermano Roberto. I love my brother Roberto. (I have more than one brother, and I love Roberto.)Conozco a Julio Iglesias, cantante famoso. (I know Julio Iglesias, the famous singer.)Conozco al cantante famoso  Julio Iglesias. (I know the famous singer Julio Iglesias. The speaker is assuming that the listener doesnt know who Iglesias is.) Using Commas to Set Off Quotes When quotation marks are used, the comma goes outside the quotation marks, unlike in American English. Los familiares no comprendieron la ley, aclarà ³ el abogado. (The family members did not understand the law, the lawyer clarified.)Muchos no saben distinguir las dos cosas, dijo lvarez. (Many do not know how to distinguish the two things, Alvarez said.) Using Commas With Exclamations Commas can be used to set off exclamations that are inserted within a sentence. In English, the equivalent would normally be accomplished with long dashes. El nuevo presidente,  ¡no lo creo!, es oriundo  de Nueva York. The new president - I cant believe it! - is a native of New York. Using Commas Before Some Conjunctions A comma should precede conjunctions that mean except.  These words are excepto, salvo and menos: Nada hay que temer, excepto el miedo. (There is nothing to fear except fear.)Recibà ­ felicitaciones de todos, salvo de mi jefe. (I was congratulated by everyone except for my boss.)Fueron aceptados por todas las autoridades, excepto el vice presidente.  (They were accepted by all the authorities, except the vice president.) Using Commas After Some Adverbs A comma should separate adverbs or adverbial phrases that affect the meaning of the entire sentence from the rest of the sentence.  Such words and phrases often come at the beginning of a sentence, although they can also be inserted. Por supuesto, no puedo comprenderlo. (Of course, I cant understand it.)Por lo contrario, la realidad argentina no difiere de la dominicana.  (To the contrary, the Argentine reality doesnt differ from the Dominican reality.)Naturalmente, gana mucho dinero. Naturally, he earns a lot of money. (Without the comma, the Spanish sentence would become the equivalent of He naturally earns a lot of money, so that naturalmente would describe just the word gana rather than the entire sentence.)Sin embargo, pienso que eres muy talentosa.  (Nevertheless, I think youre very talented.)El trfico de bebà ©s, desgraciadamente, es una realidad.  (The trafficking of babies, unfortunately, is a reality.) Using Commas in Compound Sentences It is not unusual to join two sentences into one, often with y in Spanish or and in English. A comma should also be used before the conjunction. Roma es el centro espiritual del catolicismo, y su centro ha sido declarado Patrimonio de la Humanidad por UNESCO.  (Rome is the spiritual center of Catholicism, and its center has been declared a UNESCO World Heritage Site.)Muchos lagos se forman por la obstruccià ³n de valles debido a avalanchas, y tambià ©n se puede formar un lago artificialmente por la construccià ³n de una presa.  (Many lakes are formed by the obstruction of valleys due to avalanches, and a lake also can be formed artificially by the construction of a dam.) If a compound sentence is very short, the comma can be omitted: Te amo y la amo. (I love you and I love her.) Using the Decimal Comma In Spain, South America and parts of Central America, the comma and period are used in long numbers in the opposite way that they are in American English. Thus 123,456,789.01 in English becomes  123.456.789,01  in most areas where Spanish is used. However, in Mexico, Puerto Rico and parts of Central America, the convention used in American English is followed. When Not to Use the Comma Perhaps one of the most common misuses of the comma in Spanish by English speakers is its use in salutations in  letters. In Spanish, the salutation should be followed by a  colon. Thus letters should begin, for example, with Querido Juan: rather than following  Juan  with a comma. Also, as a general rule, as in English, a comma should not be used to separate the subject of a sentence from the main verb unless necessary to separate words of apposition or intervening phrases. Correct: El aà ±o pasado era muy difà ­cil. (The past year was very difficult.)Incorrect: El aà ±o pasado, era muy difà ­cil. (The past year, was very difficult.)

Enterprise Architecture and Databases - Case Study Essay

Enterprise Architecture and Databases - Case Study - Essay Example The automatic query response system is enabled in the data base which raises alarm when the desired red marked vehicle is traced any place. The reliance on man power and intuition is eliminated. Data bases are far more effective in this regard and hence removed the dependency on manual record keeping. With so many vehicles on the road, without such an integrated system keeping such a large record would be realistically impossible. Computerization has solved many problems. Hassle of manual tracing and without cameras would make the task half effective as now. There is always margin for improvement in every system, same goes for this one. The car cloning idea is seen as possible challenge that stands as obstacle as yet. In this scheme the original license is being put up on the stolen car. This needs solution in coming days. The accuracy of cameras and their presence in different suburbs of the city is a point that can help improving things. There is margin of improving the data bases, in terms of the processing time, the accuracy, and possible tracing of every nook and corner of the city through the use of more cameras since at present all parts of the city might not be monitored by the cameras. Centralization of the data base is another aspect so that the vehicles that are in other parts of the country and in other cities can be traced accordingly. The cloning idea is still a challenge which can be sorted out through investment of other type to ensure mitigation through effective means. Ease of use of data base is another aspect that can be explored for improvement and affectivity. The factor of being able to notice an individual’s activities, notably being alcoholic, being unfaithful to someone, and other habits are easy to determine and trace through this entire concept. However the affectivity of the system cannot be compromised for this purpose since it helps comprehending large number of offenders. In such case a balanced line