...These costs have taken the form of increased cost of material, labor, and equipment on one hand and lost productivity and market competition on the other. These adverse effects on business have been in direct conflict with the cardinal management objective of maximization of shareholder wealth realistically measured in terms of market value of shareholder equity. Proponent for government regulations to business have argued that shareholder wealth maximization is not realistic and that there should be a balanced attention to all what they call stakeholders interest in which also the providers of risk capital are part. Nevertheless it is true that one cannot maximize interests of all stakeholders simultaneously. There is a need of prioritizing, and it would be in the best interest of all stakeholders to start with maximization of shareholder wealth since it is all-inclusive with positive spread effects to the society as a whole. References: American Law Institute (1994). Principles of corporate governance: Analysis and recommendations. St. Paul, MN: ALI Publishers.V.1, Pt...
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...mainstream theories of corporate governance in an attempt to suggest that their underlying assumptions and ideologies are misplaced and ought to give way to an emerging pluralistic view of the governing process in order to understand any governance contribution to the dynamics of the business environment. Design/methodology/approach – The paper engages with the traditional literature and views on governance models from law, business and organisational studies perspectives. It then considers the environment and changes in the environment and how those challenge the relevance of the traditional approach, drawing upon the impacts on the fluidity of management and governance perspectives and practices in the global economy. Findings – The reflections and analysis confirm the view that the underlying assumptions of existing models and regulatory frameworks for governance are misplaced and it is suggested, with reason, that a pluralistic view and framework are better than the current dualistic approach to provide a better understanding of corporate governance in today’s dynamic business environments. Originality/value – The paper develops a new model and framework for governance practice and regulation and seeks to persuade policy makers and commentators that the global business environment needs to recognise and engage with this new model and validate its...
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...Strategic Analysis of Starbucks Mission Statements Arleen Steevensz University of Redlands Strategy Capstone MGMT 697 Murad A. Zikri 1/18/2014 Introduction Starbucks is the worlds largest coffee shop chain company and continues its aggressive growth through international expansion and new product development. But at the beginning of this century affected by the economic downturn Starbucks financial growth of same-store sales and margins showed a 70% decline in net income and had experienced its first ever decline in quarterly sales (Grant, Robert Contemporary Strategy Analysis 2010). This paper will look at Starbucks’ mission statement and guiding principles to assess if their strategies during this downturn were still aligned with these principles and if these principles aided in its recovery. Starbucks Mission Statement and Principles Mission statements are always present based, talking about why a company or person exists and what they want to achieve in the here and now. (www.wisegeek.com). Starbucks mission statement from 1990 to October 2008 stated “Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow.” The six principles to help achieve their goals and governed their decision making process were 1. Provide a great work environment and treat each other with respect and dignity. 2. Embrace diversity as an essential component in the...
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...second process is the situation analysis that involves considerations of the consequences, impact on rights, and motivation demonstrated by the action. According to Figar and Đorđević, the actions should not cause discomfort; they should be right as well as consistent with company missions and code of conduct (347). Thirdly, there is a need for the study on how the applied decisions reflect on other parties and on the stakeholders. The shareholders should not be the only people at the forefront with sole objectives of short-term profit maximization. Stakeholders are the significant strongholds for any company, and they care for other things other than profits. They consider long-term goals more than short-term ones, and their interests hence come first as they have the power of influencing the business. The above steps would have affected the business outcome differently from what happened. A preliminary study of the declining profit issues for the company would have enabled determination of the main cause since quality was not the real issue but rather product quality misrepresentation used for marketing and making more sales, which, as a solution, was ambiguous. A careful study would have identified other factors such as price standardization, new branding techniques, product development, and ways of acquiring a broader market. The move to market unmatched information with goods to the public was selfish, with intentions of maximizing the shareholder profits, thus overlooking...
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...costs that bring no value to the project, often a result of a mistake or a result of something going wrong in a project. Due to lengthy projects, I have never personally encountered the cost involved, but I am interested in if anyone has personally dealt with sunk costs and how this may have affected the overall budget or outcome of the project. Earned Value Analysis: I also found when researching the history of EVM that there are 32 criteria that are used to determine an organizatin performance with Earned Value Management Systems. There are 5 categories with a total of 32 criteria. It's an interesting read because so far there is a relationship to the chapters we have read so far. Category 1: Organization ( A lot around Work Breakdown Structure and organization of costs) Category 2: Planning and Budgeting (Scheduling, sequencing, time phase planning for the ability to measure costs against budget, budget against work packages, reserves and undistributed budget.) Category 3: Accounting Considerations (Work Breakdown Structure, Direct costs, indirect costs, allocation and control accounts. Category 4: Analysis and Management Reports (Monthly reporting at control levels, At least monthlyplanned and actual comparisons, implementation of manager actions in relation to earned value informatin, revised estimating of cost at completion. Comparisoons of performance for identification of variances. Category 5: Revisions and Data Maintenance...
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...Moniruzzaman bhuiyan ID: Co265MHMH0813 Submitted to S.A. Palan Financial Markets and Investment Analysis PD Limited Financial Markets and Investment Analysis Task 1 question answer Introduction For any economy stock market is the heart, the entire economy depends on this market. Normally what do we understand by market? Market is a place where some people buy and some people sell their goods, same thing happen in stock market. In any country or economy there is few people who have innovative idea and passion to take risk but no money, on the other hand there is few people who have money but don’t have the passion to do something. Stock market is the place where this two type people meet and utilize each other. Tens of millions of people look in to stock market to get a comfortable retirement and central bankers watch it closely as they set monetary policy. (Smith, 2004) Now we will try to answer and explain these 3 question bellow….. The ownership of shares is increasingly in the hands of institutions rather than individuals. Does this matter? Shares around the world are increasingly owned by institutions rather than individual. In the UK, over 80% of all shares are estimated to be owned by institution such as pension funds, unit trusts...
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...Ethics Steven J. Ramsey University of Minnesota Introduction In this paper, I will be applying ethics – principles of right and wrong – from an administrative perspective to three specific situations. In the first situation I describe the application of two ethical principles in relation to access to healthcare at a hospital. The next situation deals with the moral issues raised by mandating the use of ultrasound technology. Here I explain which ethical principles are used to justify this practice, and which ones are violated by this practice. In the last situation, I describe an ethical dilemma I was personally faced with and the ethical principles I used to resolve it. 1. Access to HealthCare The Principle of Utilitarianism Utilitarianism is the moral theory that says the rightness of an action is determined by its contribution to the greatest good for the greatest number. This theory argues against specific actions that would benefit an individual in favor of actions that serve to benefit society overall. Using this theory as a principle for making healthcare decisions, the objective becomes to maximize the health of the population served, which is in conflict with the widely held objective to maximize the care to every individual patient. For example, when having to choose between offering a program that benefits one thousand patients every year verses a program that benefits only five patients...
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...into “The Boeing Company”, on May 9, 1917. Since that date the company grew and acquired a lot of its competitors, including the McDonnell Douglas in 1997. [pic] The Boeing’s structure consists of two main divisions and two supporting divisions: - Boeing’s Commercial Airlines (BCA) - Boeing Defense Space & Security (BDS), which in turn consists of: o Boeing Military Aircraft o Network & Space Systems o Global Services & Support - Boeing Capital Corporation (BCC) - Other segments (including own Fire department and other non-profile activities) [pic] The Boeing Company’s Commercial Airliners division took the leading market positions up to 2003. Financial Ratios Analysis Liquidity Boeing’s liquidity ratios increased in 2010 and 2009 in comparison to 2008 values, but current and acid-test ratios are still below the industry average. Reasons: - the amount of money and short-term investments increased in 2010 and 2009 - accounts payable and other accrued liabilities value decreased in 2010 and 2009 In terms of current and acid-test ratios, Boeing is less liquid than average firm in the aerospace industry. However the current ratio appears to suggest more liquidity than the acid-test ratio. This could be explained by the fact that Boeing carries more inventory...
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...into the European market due to the viability of the market. Hence, the entity puts forth the viability of the proposed investment and its ability to service the said funds if presented with the adequate funding from your bank. Our entity regards entry into the European market as high priority project due to the potential of the market to grow exponentially. Summary of issues • The entity shows a constant decline in profits for three consecutive periods from the beginning of the financial year 12 to the period through the financial year 14. This might be an indication to the chief financial officer that the entity’s profitability level is on the decline. Thus, the officer might be forced to reject the plea for the loan to avid default from the entity, as it might be unable to complete repayment of the loan from its residual funds after the deduction of operational costs. • In addition, there was a significant increase in general costs and administration expenses within the organization. This might be accrued from the increase in costs of doing business. However, from another perspective, administration costs might also be accrued from mismanagement of the organizational resources. Analysis of data and Errors Analyses of financial ratios in terms of loan repayment include: • Debt Ratio = Total Debt/Total Assets $750,000/$1,781,546 = 0.42 or 42/100 The entity has a very healthy debt ratio. This proves that the...
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...performance-based logistics and training.” (Boeing Brief, Boeing.com). Planning Functions of Management Management planning involves the conscious and systematic process of making decisions about goals and activities individuals and work units will follow to provide value to the shareholders. The planning process involves a six-step process. The first step is to conduct a situational analysis that examines past events, current conditions, and attempts to forecast future needs. The second step is to establish alternative goals and plans. The process should generate alternative goals and alternative plans that can be followed in the future to achieve those goals. Goals are the target for each manager to strive for, need to be specific, measurable, attainable, relevant, and time-bound. Plans are the actions the manager will take to achieve goals. Plans at least should outline alternative actions that lead to the accomplishment of each goal and the resources necessary to meet each goal through those plans. The third step is for managers to evaluate the advantages, disadvantages, and potential effects of each alternative goal and plan. Here goals are prioritized, evaluated for their ability to meet high priority goals, cost and payback...
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...environment at Islami Bank Bangladesh Limited, which gave me the pleasure and satisfaction to be a part of them for a while. While working in different departments of this branch I found each and every employee is friendly to me to cooperate. They have discussed in details about their respective tasks. I also participated with their works. So I learnt the Banking operations of three departments of IBBL: (1) General Banking (2) Investment & (3) Foreign Exchange etc. While making this report I tried to discuss the activities of the Bank regarding their different Investment-modes now performing and the activities I focused on their nature. 1.1 Origin of the Report: The report named “Diversified portfolio & Performance analysis” of Islami Bank Bangladesh Limited was offered by Islami Bank Bangladesh Limited on January 25, 2007 as a requirement for the completion of the Internship program as a student BBA program of Bangladesh University of Business & Technology (BUBT). The primary goal of the...
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... 4. | Limitations of the study | | 5. | Sources and methodology | | 6. | Chapter one:company * Company Description * Mission and Vision * core values * Manufacturing facilities * Product development * Quality assurance\ * International marketing | | 7. | Chapter two: Financial position * Analysis of financial position * Value Added Statement * Total sales growth * Export sales * Profit before tax * Shareholder’s equity | | 8. | Chapter three: audit Task * Our Audit Planning * Sufficient Appropriate Audit Evidence * Financial Statement Assertions * Test of Control * Test of control done by us * Substantive procedures * Independent Auditor’s Report | | Executive summary Auditing is an essential field in the modern business sector. It encompasses the overall financial aspects of a company. It provides extra confidence to the stakeholders of the organization concerned. In todays world a public organization can not be imagined without audit. When assigned by our honorable course teacher to conduct analysis based on auditing standards, first of all we did comprehensive analysis about company selection.then we moved...
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...concerns in the collapse of Enron. The collapse of Enron is less than three months, which Enron from a very prosperous company to a bankrupt enterprise. The collapse of Enron is one of the most grievous business failures in United States. This disastrous business failure had causes a large number of employees lost their jobs and retirement savings. Groupthink leads groups to make faulty judgments. Groupthink occurs when a group make wrong decisions as the pressures of group lead to deterioration of “mental efficiency, reality testing, and moral judgment”. There are several symptoms of groupthink. The issues to be resolved for Enron are collective rationalization, stereotypes of out-group, illusion of invulnerability, deceit to increase shareholders’ investments and self-censorship. The causes of the case study are illusion of unanimity, self-appointed mindguards, complicated transactions, belief in inherent morality of the group and direct pressure in dissenters. The solutions to the case study are challenge the norms, discuss with trusted associates, forbid related-party transactions for the senior officers, monitor the power of CEO and assign the role of critical evaluator. When there are symptoms of groupthink, there must be solutions to prevent and solve. TABLE OF CONTENTS EXECUTIVE SUMMARY 1.0 INTRODUCTION 1.1 Purpose of the report 1.2 Company Background 2.0 SUMMARY OF THE CASE STUDY 3.0 GROUPTHINK 3.1 Definition of groupthink 3.2 Symptoms of...
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...yearly growth in demand through 2015 to reach a volume of 400 million units. The United States white goods market is witnessing recovery due to recovery in the wider economy. Demand is expected to come from housing market recovery in 2015, and also because consumers are beginning to upgrade to superior equipment as income levels rise (Reportlinker.com, 2012). Shipments of refrigerators represented the largest share of the appliance industry and refrigerator-freezers were the most popular major appliance in the world. The total value of industry shipments in 2008 was $5.1 billion, down from the previous year's total of $5.74 billion and the 2006 total of $6.15 billion. The industry reported estimated revenues of $3.7 billion in 2010, a reflection of the...
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...1. Southeast Bank: a bank with a vision Southeast Bank Limited was established in 1995 with a dream and a vision to become a pioneer banking institution of the country and contribute significantly to the growth of the national economy. The Bank was established by leading business personalities and eminent industrialists of the country with stakes in various segments of the national economy. The incumbent Chairman of the Bank is Mr. Alamgir Kabir, FCA, a professional Chartered Accountant. Mr. M. A. Kashem a member of the Board and Mr. Yussuf Abdullah Harun were past Presidents of the Federation of Bangladesh Chamber of Commerce and Industries (FBCCI). Southeast Bank is run by a team of efficient professionals. They create and generate an environment of trust and discipline that encourages and motivates everyone in the Bank to work together for achieving the objectives of the Bank. The culture of maintaining congenial work - environment in the Bank has further enabled the staff to benchmark themselves better against management expectations. A commitment to quality and excellence in service is the hallmark of their identity. Southeast Bank takes pride for bringing women into the banking profession in a significant number for gender equality. At present, 32% of SEBL's employees are women that will rise to 45% over the next five years. 2. Organizational Overview As a service industry in the banking sector of Bangladesh, Southeast bank have a glorious organizational history...
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