...expectations or demands placed on organizations by individuals. Organizations express demands on individuals through job expectations, mission statements, and performance feedback. 2. Contributions Contributions are the basis for satisfying the demands expressed by the other party in the relationship. Individual contributions include knowledge, skills, abilities, and professional contacts. Organizational contributions include status, benefits, income, and affiliation. B. Adams’s Theory of Inequity Adams's developed a theory of social exchange that analyzes inequity in the workplace. Specifically, inequity is the situation in which a person perceives he or she is receiving less than he or she is giving, or is giving less than he or she is receiving. Individuals calculate an inputoutcome ratio for themselves and compare it with an inputoutcome ratio for another person. If the ratios are not equivalent, perceived inequity results. C. The Resolution of Inequity Individuals seek to resolve inequity because it produces tension. The seven strategies for restoring equity are (1) to alter the person's outcomes, (2) to alter the person's inputs, (3) to alter the comparison other's outcomes, (4) to alter the comparison other's inputs, (5) to change who is used as a comparison other, (6) to rationalize the inequity, and (7) to leave the organizational situation. D. New Perspectives on Equity Theory New examinations...
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...Apple Inc Financial Report Analysis FINC 330 Business finance instructor: Philip Bradley Prepared by: Table of Contents Page 1) Company Description……………………………………………….…...... 2 Company background………………………………………..….. 2 Industry analysis………………………………………………..... 2 Products and services…………………………………….…......2 Investment strategy…………………………………….……...…3 2) Market Analysis……………….………………………………................... 3 Direct competitors…………………......…………………………. 3 Financial performance comparison…………………......………3 Growth comparison…………………......…………………...…...4 Trailing total returns comparison…………………......…………4 Ratio comparison…………………......…………………………. .5 Detailed ration comparison…………………......……………5 3) Financial Performance Analysis………………………………………...... 6 Ratio analysis........................................................................... 6 Detailed analysis................................................................. 7 4) Recommendations ……………………………………………………..… ..8 5) Conclusions……………………………………………............................ ..9 6) Reference…………………………………………………………………...10 7) Appendix……………………………………………………………….....…11 Income statement....................................................................11 Balance sheet.......................................................................... 12 Cash flow........................................................................
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...summarizes your evaluation. Prior to writing the paper, you will need to research your chosen company and conduct an industry comparison to determine how your company’s financial performance compares with others in its industry. To begin your research, you can refer to the work you completed in the Week One CheckPoint and the Ch. 1 PowerPoint®. As you conduct your research, consider the following factors as a guideline for determining the financial health of your company: Financial data from the company’s annual report or 10-K report Current and future financial performance of the company Success of the company’s operations Policies and strategies of management Performance of the economy How the company is doing in comparison with its competitors in the same industry You can also refer to the information and examples in Ch. 6 to complete your evaluation: pp. 194-196 outline various sources you can use in addition to financial statements, pp. 195-196 focus specifically on library resources for help with comparative research, and Figure 6.2 on p. 212 lists the steps of a financial statement analysis. The following information must be included in your paper: A summary of your company’s current financial performance The importance of industry comparisons and trend analysis An assessment of your company’s financial performance compared with others in its industry Use APA formatting guidelines, and submit your paper as a Microsoft® Word attachment. Be...
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...Exercise #1 | Group Aerospace | Part 1: The objectives of executive compensation: The issue of executive compensation is a topic of much debate. Executives are often ridiculed as their compensation packages may not coincide with the performance of their organization or be deemed too lavish by shareholders or advocacy groups. However, compensation is not decided arbitrarily. Organizations enlist boards and outside consultants, and with the aid of industry benchmarks establish packages that fairly represent the duties of high ranking company employees. Executives inherently shoulder more responsibility as spokespeople for companies and being tasked with difficult endeavors such as company-wide change, company direction, and company morals and values. As such, the compensation packages need to accurately reflect the responsibilities of an executive. The objectives of objectives of an executive compensation program can be summarized in three main points: * Align the interests of executives and shareholders. Companies seek to align the interests of executives with shareholders through equity-based compensation and share ownership requirements1. * Link rewards to performance. Companies seek to implement a pay-for-performance philosophy by tying a significant portion of executives’ compensation to their achievements of financial and discretionary goals that are linked to a Company’s business strategy and each executive’s contributions toward the achievement of those...
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...work adequately for all three; therefore, three theories were used. Production workers utilize the Two-factor theory; sales people use Vroom's expectancy theory and the Equity theory works for the administrative staff. Combining all three theories into one organization helps the organization run smoothly, while gaining successful motivation on all levels. Sales People Sales people rely on motivation that is accomplished through a process; this method that best fits them is known as Vroom's expectancy theory. The expectancy theory, as stated by Victor Vroom, is motivation that has a high performance result due to value being placed on the sales person and their ability (2003, p. 20). Sales people are motivated to the degree that he or she believes "(1) effort will yield acceptable performance, (2) performance will be rewarded, and (3) the value of the rewards is highly positive" (2003, p.20). For sales people to reap rewards or benefits, they first need to know the expectancy of their position. During this first stage, the managers will layout the training that is needed and will set their goals. The managers are also responsible for continued follow up and coaching. Often times this type of follow up is accomplished on the sales floor, so they may continue to have a high level of performance. The coaching is kept positive so that the sales person may continue to exert a higher level of performance. Floor coaching and...
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...Mackenzie Lamm Finance 450 11/18/14 Mutual Fund Paper Analysis of Northern Small Cap Value Fund The following information will outline and overview the Northern Small Cap Value Mutual Fund and whether or not the fund should be chosen as one of the investments currently offered for the employees’ 401-K plan at Rick Lamm and Associates. This report will first, cover the category and nature of the mutual fund, the strategy involved, and what type of investor would be interested. Second, the performance of the mutual fund, comparing the fund’s various returns to its respective category and index. Third, analyze the risks of the fund, and compare those risks with category averages. Fourth, the costs of the fund and how they compare with other funds of its nature. Fifth, the funds’ manager. To conclude, a recommendation will be offered whether or not the Northern Small Cap Value Mutual Fund should or should not be included in Rick Lamm and Associates’ 401-K plan. The Northern Small Cap Value Fund is an open ended mutual fund which looks for value potential (worth more than indicated current prices) by in the stocks of smaller companies. According to Northern Trust, the fund has 500 holdings and is mainly made up of four economic sectors. 37.5% of those holdings in financials, 15% in industrials, 12.2% in information technology, and 10.2% in consumer discretionary goods and services (Northern Trust). As stated on Northern Trust, the funds strategy to gain capital appreciation...
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...Article summary for Tom Kennedy and John Affleck-Graves on The Impact of Activity-Based Costing Techniques on Firms Performance Janetha Brown This article discusses how a management accounting system like activity-based costing (ABC) may or may not have a significant impact on a firm’s value. With the samples that are shown, it is proven that the companies that use an ABC technique outperform other companies that don’t use an ABC technique by 27% over a three year period. It also shows that using an ABC technique will add value to the firm through better cost control and asset utilization. Because it had never really been proven that an ABC process really does bring an increase in shareholder value through increased profits, it is being reviewed here. The primary purpose of this article is to see if the many documented successful case study implementations of ABC are, on average, translated into superior stuck performance. (Kennedy and Affleck-Graves, 2001, p. 20) A sample of firms that do adopt ABC and some that don’t is gathered to do a comparison of the two. Comparing the ABC adopted firms to its counterparts for three years, it is revealed they have a 61% return for the ABC adopting firms compared to 34% return for the non-adopting firms which is a 5% difference. Other factors could play a role in the superior performance but when comparing other factors between the companies, nothing significant is found to stand out. The next section discusses several difference cases...
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...Arroyo Fresco Arroyo Fresco Community Health Center (AF) is a community health center serving western Arizona from 11 clinics and 4 mobile service vans. Community health centers have been established over the past 40 years in underserved areas in all 50 states, and they are nonprofit, community-owned health care organizations that offer patients high-quality primary care and preventive services regardless of their ability to pay. They also provide enabling services, such as transportation, translation, case management, health education, and home visitation, which increase access to care. AF serves three counties – Yuma, Mohave, and La Paz – with diverse populations and needs. The service area of over 23,000 square miles has fewer than 400,000 people – about one-third of the state’s overall population. AF provides ambulatory medical (i.e. obstetric/gynecologic, family medicine, pediatric) and dental services, which are supported by routine laboratory and X-ray services, vision and hearing screening, behavioral health and substance abuse screening, and pharmacy services. AF also ensures that its patients can access all services required across the continuum of care through partnerships or contractual relationships with hospitals, physicians, and agencies throughout the tricounty area and these arrangements are spelled out in the annual plan required by the Bureau of Primary Health Care (BPHC). Arroyo Fresco’s mission is to provide residents of Yuma, La Paz, and Mohave counties...
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...statement elements and making comparisons with relevant information. The analysis is a powerful tool used by a variety of people like creditors, investors, and managers, etc. who all have different reasons for learning about the financial circumstances of an organization (Financial Statement Analysis, 2014). There are a variety of tools that can be used to evaluate the financial statements data. The three most commonly used tools are the ratio analysis, horizontal analysis, and vertical analysis. In this paper I plan to evaluate these three methods and discuss how the financial information is used to make certain business decisions, while giving an example that may be seen in the health care arena. The ratio analysis is a method of analyzing data to determine the overall financial strength of a business. The broad method by which the financial data is converted into simple mathematic ratios for comparison makes it easy very user friendly. An advantage to this method is that it can be used by anyone with access to organizations public financial statements since the data is widely available. Calculations created from these formulas provide crucial information for decision-making (Ratio Analysis, 2014). Another advantage to the ratio analysis method is that the conversion allows for comparison of different companies no matter how small or large the company is. These ratios are most useful when comparing things like trends of growth and increased performance. Now while ratio analysis...
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...Manufacturing implemented significant productivity improvements over Westwood. But these improvements were not reflected in the financial statements (Exhibit 1). Morgan Manufacturing used LIFO as its inventory costing method, while Westwood used FIFO. Additionally, comparison of three key ratios indicated relative differences between these two competitors: gross margin percentage, pre-tax return on sales, and pre-tax return on assets. And calculations of these three ratios are below: Ratio | Calculation | Gross margin percentage | Gross margin/ Sales | Pre-tax return on sales | Income before tax/Sales | Pre-tax return on assets | Income before tax/ Total assets | Based on the two different methods they used to account for inventory, here is the 2006 comparison of the three ratios between Morgan Manufacturing and Westwood: Ratio | Morgan Manufacturing | Westwood, Inc. | Difference | Gross margin percentage | 44.5% | 45% | -0.5% | Pre-tax return on sales | 14.5% | 15% | -0.5% | Pre-tax return on assets | 13.4% | 13.4% | 0 | Since Westwood uses FIFO as its inventory accounting method, conversion of Morgan Manufacturing’s accounts from LIFO to FIFO makes some adjustment so that the comparison could be done on a comparable basis. According to the relationship between Inventory, purchase and COGs, also the definition of LIFO reserve, we can get the equations as...
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...FINANCIAL PERFORMANCE REVIEW AND ESTIMATING COMPANY VALUE OF PT ANEKA TAMBANG (PERSERO) TBK IN COMPARISON WITH OTHER LOCAL MINING COMPANY: PT VALE INDONESIA TBK Muhammad Naufal Aflah and Ana Noveria School of Business and Management Institut Teknologi Bandung, Indonesia naufal.aflah@sbm-itb.ac.id Abstract: The researcher will try to analyze about the past, current, and future financial condition and make a valuation about firm’s value of two companies that dominate the mining sector of industry in Indonesia which are PT Aneka Tambang (Persero) Tbk (ANTAM) and PT Vale Indonesia Tbk, formerly PT International Nickel Indonesia Tbk (VALE). To assess the financial performance of PT Aneka Tambang (Persero) Tbk, researcher will use several methods which are time-series analysis (Compound Annual Growth Rate), cross-section analysis, common-size analysis, and DuPont Analysis (ROA and ROE). Then make a valuation of the firm’s value using three valuation approach which are asset based method, market approach, and income approach better known as discounted cash flow approach. Based on the results, ANTAM has better performance in their net working capital through total current assets, current liabilities, retained earnings, and share capital. Nevertheless, VALE has good capability in attract the investors and controlling their non-current assets, non-current liabilities, and additional paid in capital. In overall, ANTAM has better financial performance than VALE in terms of CAGR comparison...
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...The basic idea behind benchmarking is by doing a comparison. An organization finds another organization that is similar and compares them. By studying the achievements of such results; make plans for improving the business performance; implement plans monitor and evaluate the results. By doing the comparison it allows the organization to make the necessary changes, but it is not a quick fix. Benchmarking is vital, by using this practice it can identify costs and provide efficient information that can implement best practice by becoming a central instrument for improvement and the performance of an organization; under the right conditions comparison can be a key driver of performance (OECD, International benchmarking, p. 1). Through benchmarking, many organizations realize that more can be achieved through collaboration between leaders in an industry. There are three primary types of benchmarking used today; first is process benchmarking, which is done at the lower levels of the organization. It focuses on the day to day activities and operations to include anything from customer complaints to the billing process. The changes made on this level improve performance quickly. Second there is performance benchmarking, focuses on competitiveness by looking at where the company’s products and services are in relation to other competitors referring to things such as speed, quality and reliability. Third there is strategic benchmarking, focusing on top management. Discussions are about...
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...that is based on the item-by-item comparison that are consisting of two or more comparable alternatives. Which also are processes, products, qualifications and are important to listing sets of data and systems which they consist. Purpose would be to present together to detect the emerging trends in the company’s operations and results. In a ratio analysis knowing that in all in accounting can help a company keep score in dollars, stake holders may desire further analysis on those set of numbers. In accounting ratios allow stakeholders to determine how well a company operates in specific segments the base purpose and importance of a ratio analysis allows for much deeper review overall and comparison of a company’s operations. The difference between a comparative and ratio analysis are that in a comparative analysis in assessing the financial performance within a company, investors are interested in the core which are sustainable earnings of a company. So to add, investors are interested in making comparisons from period to period. There are three types of comparisons to improve the decision usefulness of such financial information. One way is Intracompany basis; comparisons within a company are often useful to detect changes of in relationships that are significant trends. Another would be intercompany basis; comparisons with other companies provide insight into a company’s competitive position held. And last would be industry averages, comparisons with industry averages they provide...
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...theFrumiGroup Great by Choice Notes by Frumi Rachel Barr, MBA, PhD. Authors: Jim Collins and Morten T. Hansen Publisher: Harper Business Copyright year: 2011 ISBN: 978-0-06-212099-1 Authors’ Bios: Jim Collins studies and teaches how great companies endure, specifically – how they grow, how they attain superior performance, and how good companies can become great companies. Having invested nearly a quarter of a century of research into the topic, Jim has authored and co-authored six books that have sold more than ten million copies worldwide. The books include: the classic Built to Last, a fixture on the Business Week bestseller list for more than six years; the international bestseller Good to Great, translated into 35 languages; and How the Mighty Fall, a New York Times bestseller that examines how some great companies destroyed themselves. Morton T. Hansen is a management professor at the University of California, Berkeley (School of Information), and at INSEAD. Formerly a professor at Harvard Business School, Morten holds a PhD. from Stanford Graduate School of Business where he was a Fulbright scholar. He is the author of Collaboration and the winner of the Administrative Science Quarterly Award for exceptional contributions to the field of organization studies. Previously a manager with the Boston Consulting Group, Morten consults and gives talks for companies worldwide. Authors’ Big Thought: Ten years after the worldwide bestseller Good to Great, Jim Collins returns with...
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...American Corporation Analysis Week 3 Learning Team B Reflection XXXXXXXX Accounting 561 March 12, 2016 Professor Jason Williams American Corporation Analysis (Kellogg’s) Comparative and ratio analysis are important tool for investors and top company management in order to analyze and to determine organization’s financial performance. Comparative analysis is “changes in a financial statement's items over several accounting periods presented together to detect the emerging trends in the company's operations (Kimmel, 2010-2016). The three comparative analysis parts are intracompany basis, intercompany basis, and industry averages. In addition, “ratio analysis is a quantitative analysis of information contained in a company's financial statements (Business Dictionary, 2016).” There are three types of ratio analysis: liquidity, solvency, and profitability ratios. For this assignment, we will conduct a comparative and ratio analysis to measure profitability and liquidity for Kellogg’s Company. Kellogg's Analysis Report “Solvency ratios measure the ability of the company to survive over a long period of time. Long-term creditors and stockholders are interested in a company's long-run solvency, particularly its ability to pay interest as it comes due and to repay the balance of debt at its maturity” ( Kimmel,Weygandt & Kieso 2011). There are 4 major ratios in: Solvency Ratio Formulas: Debt to total assets: Total liabilities/Total assets Cash debt coverage ratio: cash...
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