...behind ABC’s decision to close ABC shops (Battersby 2015) on the basis of strategic evaluation of both external and internal environment by applying analytical tools. The possible outcomes of this action will be critically assessed. Analysis 1. External As reported by Owens (2015), the main consideration of management is the disappointing profitability of ABC shop. Macro environment is evaluated by applying PEST and Porter’s Five Forces framework introduced by Jones (2015). PEST Political: Compared with industry-level, ABC group is facing more significant political impact at company specific level. On the one hand, the state-owned ABC benefits from large government funding as it enables ABC to carry out robust long-term strategy with clear income forecast. As discussed by McNair and Swift (2014), ABC has been acknowledged as producing good-quality news to serve public interest. On the other hand, being public means ABC suffers more political tension than private media. Especially when the Australia government announced to cut ABC funding by $ 254 million despite promising not to before the election (Hutchinson 2015), currently ABC is confronted with big challenge of delivering consistent service with less budget, keeping good relationship with successive government while remaining political-neutral in broadcasting, reminding people of its achievements and promoting public image to weather the storm. Overall, cutting funding gives ABC a hard time and enforces the company...
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...1. Using the information in the case, design an activity-based costing system and estimate product costs and gross margin percentages for valves, pumps and flow controllers. Justify your reasons for your ABC system design and computations. As per the ABC costing system, the 5 overhead cost drivers that can be identified are: A. Product Sustaining Activity Costs (i) Engineering Costs B. Batch Activity Costs (i) Receiving & Production Costs (ii) Setup Labor Costs (iii) Packaging & Shipping costs C. Unit Level Activities (i) Machine utilization cost Calculation for cost per unit (per piece) for each of the overhead activities for the 3 products Machine Valve Pump Flow Controller Total Machine hours 3750.00 6250.00 1200.00 11200.00 Machine hrs / unit 0.50 0.50 0.30 machine related exp. 336000.00 Cost / machine hrs 30.00 $ Machine / unit 15.00 15.00 9.00 Engineering Valve Pump Flow Controller Total Hrs Engg Work hrs 250.00 375.00 625.00 1250.00 Engg Work hrs / unit 0.03 0.03 0.16 Engineering Cost 100000.00 Cost / engg work hr 80.00 $ engg hrs / unit 2.67 2.40 12.50 Receiving & Prod.Control Valve Pump Flow Controller Total No. of Prod. Runs 10.00 50.00 100.00 160.00 No. of components 4.00 5.00 10.00 Receiving & Prod. Control Cost 180000.00 Cost / Prod. Run 1125.00 Total Cost for all components of a prod. 11250.00 56250.00 112500.00 $ Receiving Cost / unit 1.50 4.50 28.13 Setup cost Valve Pump...
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...Telefon: 0203 379-2785 Telefax: 0203 379-3048 eMail: bernd.noche@uni-due.de Prof. Dr.-Ing. Bernd Noche ABC-/XYZ Analysis Introduction tul Quelle: Powerpoint-Folien: Uta Horstmann ABC-Analysis 2 M0000 A short definition of ABC-Analysis The ABC-Analysis represents a simple method of material classification in respect of value and quantity. (G. Wöhe) Expressed in a more general way it is a process in order to identfy important kinds of customers, suppliers or articles. 3 ABC-Analysis M0000 The Pareto principle The so called Pareto principle indicates that for many phenomenons the following is valid: 80 % of effects are reached by 20 % of causes. The principle traces back to Vilfredo Pareto (Italian economist) who, related to Italy, had noticed that 80 % of property belonged to 20 % of the Italian population. Vilfredo Federico Damaso Pareto 1848 - 1923 4 ABC-Analysis M0000 However, the rule often is misunderstood: It seems that 80 % + 20 % = 100 %. But it can also be valid that: 80 % of effects are traced back to 10 % of causes. The principle can also be applied recursively, and not only used for 20% of the reasons : e.g. 64-4 Rule: 96-36 Rule: 64-4 Rule: 51,2-0,8 Rule: e. g. (80 – 16) % (20 – 16)% e. g. (80 + 16) % (20 + 16)% e. g. from (80•80/100)% - (20•20/100)% e. g. from (80•80•80/10000)% - (20•20•20/10000)% Source: Wikipedia 5 ABC-Analysis M0000 ABC classification Cumulated Value percentage 100 or Percentage share 90 of sales 80 70 60 C 50 B 40...
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...ABC Analysis The ABC analysis is a business term used to define an inventory categorization technique often used in materials management. It is also known as Selective Inventory Control. The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls. The ABC analysis suggests that inventories of an organization are not of equal value. [3] Thus, the inventory is grouped into three categories (A, B, and C) in order of their estimated importance. 'A' items are very important for an organization. Because of the high value of these ‘A’ items, frequent value analysis is required. In addition to that, an organization needs to choose an appropriate order pattern (e.g. ‘Just- in- time’) to avoid excess capacity. 'B' items are important, but of course less important, than ‘A’ items and more important than ‘C’ items. Therefore ‘B’ items are intergroup items. 'C' items are marginally important. ABC analysis on household items are given below : SL No | Item Name | Monthly Demand | Item Price (Tk)/Unit | Total Cost (Tk) | % of Total Tk Vol | % of M. Demand | Category | 1 | Rice | 40 | 55 | 2200 | 9.393 | 20.833 | A | 2 | Oil | 20 | 120 | 2400 | 10.247 | 10.417 | A | 3 | Salt | 2 | 22 | 44 | 0.188 | 1.042 | B | 4 | Daal | 3 | 90 | 270 | 1.153 | 1.563...
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...ABC analysis (Inventory) In supply chain, ABC analysis is an inventory categorization method which consists in dividing items into three categories, A, B and C: A being the most valuable items, C being the least valuable ones. This method aims to draw managers’ attention on the critical few (Aitems) and not on the trivial many (C-items). Prioritization of the management attention Inventory optimization is critical in order to keep costs under control within the supply chain. Yet, in order to get the most from management efforts, it is efficient to focus on items that cost most to the business. The Pareto principle states that 80% of the overall consumption value is based on only 20% of total items. In other words, demand is not evenly distributed between items: top sellers vastly outperform the rest. The ABC approach states that, when reviewing inventory, a company should rate items from A to C, basing its ratings on the following rules: A-items are goods which annual consumption value is the highest. The top 70-80% of the annual consumption value of the company typically accounts for only 10-20% of total inventory items. C-items are, on the contrary, items with the lowest consumption value. The lower 5% of the annual consumption value typically accounts for 50% of total inventory items. B-items are the interclass items, with a medium consumption value. Those 15-25% of annual consumption value typically accounts for 30% of total inventory items. 1 The...
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...ABC ANALYSIS In supply chain, ABC analysis is an inventory categorization method which consists in dividing items into three categories, A, B and C: A being the most valuable items, C being the least valuable ones. This method aims to draw managers’ attention on the critical few (A-items) and not on the trivial many (C-items). The ABC approach states that, when reviewing inventory, a company should rate items from A to C, basing its ratings on the following rules: A-items are goods which annual consumption value is the highest. The top 70-80% of the annual consumption value of the company typically accounts for only 10-20% of total inventory items. C-items are, on the contrary, items with the lowest consumption value. The lower 5% of the annual consumption value typically accounts for 50% of total inventory items. B-items are the interclass items, with a medium consumption value. Those 15-25% of annual consumption value typically accounts for 30% of total inventory items. The annual consumption value is calculated with the formula: (Annual demand) x (item cost per unit). Through this categorization, the supply manager can identify inventory hot spots, and separate them from the rest of the items, especially those that are numerous but not that profitable. Important Points on “ABC” Analysis * Whenever the items can be substituted for each other they should preferably be considered as one item. * More emphasis should be...
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...Individual: Communication Paper Suzanne Beal BCOM/230 October 08, 2012 Hank Parisi First I want to take this opportunity to welcome you to ABC Accounting, Inc. I am very confident that you will follow in my footsteps to lead this team to success. I want to take this time and give you a few words of wisdom that I have acquired through the years to help you make this transition go as smoothly as possible. Your main responsibility here at ABC Accounting is to maintain a cohesive working team. One of the more challenging responsibilities will be introducing new employees to the team members. Here are some of the barriers that you could encounter and some suggestions for some possible solutions. One of the most common barriers that you will come across is what I call the no it all’s. On occasion you have someone join the team who thinks they have the answers to everything. You need to be careful with this because you do not want to deter them from sharing their thoughts neither do you want them to steal the show. Always allow them the chance to give their input because sometimes their ideas are a welcomed change. Another barrier that you may come across is personality clashes. This can be tricky because you do not want to look as though you are taking sides so give each person a chance to speak and see if you can work out the differences together. You may also encounter those who are reserved and just listen without giving input...
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...Personnel research Define nature and scope of personnel research Personnel research, defined simply, is the task of searching for and analyzing facts to the end those personnel problems may be solved or that guide lines governing their solutions may be deduced. Its scope is all-inclusive. There are no subjects in personnel about which so much is known that no further research is justified. On the contrary, our tested knowledge of basic relationships is so merger that it is a wonder that we get along as well as we do in working with people. Even in fields in which business has been working for many years, a precise and indisputable basis of action is not available. Witness the following remarks on training: There is, then, little dependable research data published on industrial training. By dependable research data, I mean conclusion concerning a problem which are based on investigations which control, statistically or otherwise, all variables. This, of course, is not conclusive evidence that training men are not using a research approach. My contacts with industrial training, other than in my own organization, are not as broad as I would like. Yes these contacts have given me little evidence that an extensive use of research techniques made in industrial training. The absence of adequate research in every other field of personnel could similarly be observed. Hence the problem of research is to determine which of the many pressing problems should be studied first. It is a...
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...Good morning ABC Inc, we are aware of some problems that you have encountered in the recruitment process. First and foremost we would like to solve your immediate problem and any other problems that you incur in the future. As you know most problems occur because something is happening that was not supposed to happen or something happened that did not happen right. What we are here to do is to analyze the problems and come up with a solution that fits the needs of your company now and in the future. We will offer several solutions to the immediate problem and will also set up a plan to keep problems like this from happening again. Our main objective is to ensure that we solve the problem at hand. As we look the problem at hand we need to identify the causes and effects of what took place, as a new hire was the proper training provided and steps taken to ensure that the new hire would not be set up for failure. Not placing the blame on anyone but as a new hire there should have been someone there for him to ask questions of. Also, who was supervising and following the process to make sure that all the right steps were taken to ensure success. Was the communication process used effectively and in a timely manner, if so where did the breakdown occur. What happened between early April and Memorial Day was a complete breakdown in the communication process this was almost 2 months wasted. This caused paperwork not to be completed, mandatory drug screening, physicals...
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...Marketing analysis of ABC Learning 1. Introduction ABC learning is an Australian company that is the world’s largest provider of early childhood education services before the failure. ABC learning was established in 1988 in Ashgrove, Brisbane, Queensland by Eddy Groves (ABC Learning Centres Australia, n.d.). It had 43 child-care centres in2001. In 2005 ABC rapidly expanded, reaching 697 childhood education centres in Australia. After the influence of the financial crisis the index dramatically decrease, the company had to facing bankrupt. In order to keep centres operating the government provide investment recently. In this report, I will discuss the reasons for success and ultimate failure of the company. Then answer some question. In the end, I will give some suggestions. 2. Analysis 2.1 analysis of environment Marketing environment is a significant factor that affects business. Marketing environment can bring threat to business. It would appear in many of the marketing environment issues which are unfavourable factors to corporate marketing activities. If enterprises do not take appropriate measures to avoid the risk, these factors will lead to difficulties in marketing, pose a threat. Environment also can make opportunities to business. For enterprises, environmental opportunities are an important foundation for developing business situation. Use PESTLE analysis; there were three aspects of environment factors that impacted on ABC in this case. The first is social...
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...increased profits in the past decade (The Walt Disney Company, 2012). The biggest weakness that Disney has identified is that 75% of their revenue in 2011 was generated from customers in the U.S. and Canada. This is an opportunity for expansion of their operations to bring Disney entertainment to other parts of the world (The Walt Disney Company, 2012). The opportunities that Disney can develop include expanding their presence in emerging economies including Russia, China, Asia Pacific and India. Additionally, the distribution agreement they signed in 2012 with Comcast will allow them to expand their presence in the cable television market. This includes their cable network channels such as the Disney Channel, Disney Junior, Disney XD, ABC, ABC Family, and 12 unique ESPN channels (The Walt Disney Company, 2012). The threats that Disney must focus on is their steep...
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...1. Why are data analysis skills and thinking so important to spend analysis? Can’t software applications be used to generate the information needed automatically? In today’s world, advanced technology has provided us with a lot of tools to help sift through and process huge amount of data. However, in spite of all this, the fact remains that data is useless without the skills to analyze it. Critical thinking is still a skill inherent only to humans. Software applications are much capable of generating data automatically, however, only one equipped with data analysis skills can translate that data into information that can support corporate decision-making. Equipped with the right data analysis skills, one would be able to select the significant data from the wide array available and turn it into actionable information. These skills are important in spend analysis as the most critical stage is making sense of the output and deriving strategic solutions based on the information available. The employment of data analysis skills and critical thinking in spend analysis is necessary to reach the goal of enjoying the benefits of spend data management which include reduced material and services costs, better supplier and product management, and lower inventory costs. 2. How might a structured process such as Six Sigma methodology be useful here? The Six Sigma Improvement Model known as DMAIC can be used in implementing spend management in the enterprise with the aim of continuous...
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...A show all about wealth, greed and vengeance, ABC Revenge is filled with plot twists that keeps the viewers wanting more. Many calling it a “guilty pleasure” (Netflix Viewers), Amanda Clarke/Emily Thorne’s life never fails to capture the audience. After her dad was framed and murdered for a crime caused by the privileged Grayson family, Amanda changed her name to Emily Thorne and moved back to the Hamptons to revenge her father’s death. As a child, Emily and her father were on their own after the death of her mother. She grew up in the Hamptons, right next door to the Grayson’s. Her father worked for Grayson Global and Emily always knew that her dad was having an affair with Victoria Grayson, his boss’s, Conrad Grayson, wife. At age 8,...
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...CHAPTER 4 ° SOCIAL AND CULTURAL ENVIRONMENTS 114B CASE 4-2 Disney Learns to "Act Local" on the Global Stage The Walt Disney Company, home to Mickey Mouse, Donald Duck, and other iconic characters, has a stellar reputation in many parts of the world for its family-friendly entertainment offerings. The company's parks and resorts division operates theme parks in five global locations, including a recent $1.8 billion park in Hong Kong. Disney's fabled studio entertainment unit has an illustrious history in both animation and live-action features. The Lion King, released in 1994, is the highest grossing animated film of all time. More recently, Disney has enjoyed massive hits with live-action features. These include Pirates of the Caribbean and its sequels as well as classic American fare such as the TV show High School Musical. However, despite high worldwide awareness levels of the Disney brand, as of 2006 only 25 percent of the company's revenues came from outside the United States. Historically, the Disney team has created products at its headquarters in Burbank, California, and then exported them to the rest of the world. Now, as the company targets China, India, South Korea, and other emerging markets, it is departing from its "one size fits all" approach. One factor driving the strategy change: the first-year visitor count in Hong Kong fell short of the target figure of 5.6 million people. This prompted company executives to step up efforts to educate the Chinese about...
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...Walt Disney Case Analysis Corporate Strategy The Disney brand is extremely well known, but most may not realize how diversified the company actually is. The company is made up of media networks, theme parks and resorts, studio entertainment, consumer products, and interactive media. Walt Disney Company’s corporate strategy involves three aspects; creating high-quality family content, exploiting technological innovations to make entertainment experiences more memorable, and internal expansion. Disney wants the whole family to be involved. Much of their success is due to targeting not just children, but the entire family. The movies and shows they release are done with family in mind. Theme parks and resorts, Disney Cruises, live performances and interactive media are all aimed at creating high quality family content. Disney acquired Pixar, Marvel, and Playdom in order to satisfy their second corporate strategy. The acquisition of Marvel and Pixar was intended to enhance Disney’s animation abilities to make experiences more memorable. Playdom gave the company new online gaming capacities that Disney hoped would help to improve its struggling interactive media division. UTV was acquired to facilitate its international expansion efforts. Disney’s international expansion strategy mainly focused on opportunities in emerging overseas markets. As of 2012 The Disney Channel was available in more than 100 countries and reached 75 percent of viewers in China and Russia. This was...
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