...Ajax Electr on-time. Improved inventory management - Purchases have fallen to $10,000 per month from $20,000. This decision will improve the company's working capital by $100,000, by the end of 2002. Improved EBIT Margin as of YTD July 2002 - Extra funds for working capital will increase overall sales. Expanding the business translates into increased production and bigger foot print in the market. At the end the company will be able to take advantage of economics-of-scale, which will improve its bottom line. Ajax has a good product - The sensors are fine, however company's focus should be geared towards defibrillators. Reasons: 1) the plant has excess capacity (40%) and can reach economies-of-scale, while improving on its gross profit margins from 25%; 2) defibrillators are easier and faster to manufacture compared to sensors: 8 –10 weeks vs. approx. 3 months for sensors; 3) Ajax must take advantage of the void that is left by PhysioControl. Ajax Electronics is a manufacturing company owned and operated by Mr. Bob Roberts. The company manufactures industrial grade sensors, and defibrillators used by hospitals and emergency vehicles. The company's sales have been growing steadily. However, because of a tight working capital, the manufacturing plant has only been running at 60% capacity. Mr. Roberts is looking to change his banking relationship from Webster Bank to SaveMe Bank. This case analysis will discuss why SaveMe Bank should seriously consider...
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...Importance of HR in sales Human Resources, as a discipline, has been going through a great deal of change in the past two decades, there is a need to be more strategic and business-linked .The types and intensity of global changes affecting organizations increasingly have human capital implications in both strategy and operations. While some HR functions will continue to require similar, tactical execution, the need for higher level strategic HR perspectives is growing hence making it necessary for HR to understand the different needs and functions of business. To support this a true partnership between the sales team and human resources (HR) can be one of a company’s most valuable relationships. When companies need to improve sales, they often look to HR to help improve sales capability and motivation. To truly create results, HR should look to some of the most impactful drivers of sales performance. Few aspects that make HR indispensable for the sales function are selection, training for product and for keeping up with the market nuances, engagement of the sales force, talent management and retention. Understanding the sales strategy, territory, market and competition helps HR to better understand the skill set or the competencies required, talent acquisition, assessing training needs proactively and designing compensation plans. For better performance evaluation it is important that HR understands the market spread, market maturity, product that gives the maximum margin...
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...business contacts is positive but not strong. Bankers expect only slight growth in lending over the next two quarters. Contacts in commercial real estate expect market conditions to improve slowly during the year. Manufacturing Third District manufacturers reported strong increases in shipments and new orders from January to February.Producers within the furniture, petroleum, and fabricated metals sectors reported no overall change in demand.Third District manufacturers expect business conditions to improve during the next six months.Among the firms surveyed in February, about half expect increases in new orders and shipments, and less than one-tenth expect decreases.Capital spending plans among area manufacturers remain positive, but lessened somewhat over the past two months, mostly from January to February. Retail Third District retailers generally reported modest year-over-year increases in sales in January and February. Snowstorms deterred shopping and limited the advance in sales in January, retailers said, but most of those contacted for this report indicated that sales rebounded in February.The consensus among merchants in the region is that sales will continue to grow as the spring selling season gets underway. Auto dealers anticipate sales this year to exceed sales last year, although some remained concerned...
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...[pic] [pic] PRICING POLICY Introduction The fastest and most effective way for a company to realize its maximum profit is to get its pricing right. The right price can boost profit faster than increasing volume will; the wrong price can shrink it Just as quickly. Yet many otherwise tough-minded managers shy away from initiatives to improve price for fear that they will alienate or lose customers. Consider the example of JCPenney stores for Queen sized mattress. The list price is $1699 and after giving away all discounts, the pocket price comes down to $630. Price realization is about decreasing price leakage, increasing pocket price and hence keeping a higher proportion of the list price that adds to the bottom line (profit). The leverage and payoff of improved pricing are high. Compare, for example, the profit implications of a 1 % increase in volume and a 1 % increase in price. For a company with average economics, improving unit volume by 1% yields a 3.3% increase in operating profit, assuming no decrease in price. On the other hand, 1% improvement in price, assuming no loss of volume, increases operating profit by 11.1 %. Improvements in price typically have three to four times the effect on profitability as proportionate increases in volume. Reverse also applies in this case: a mere 1 % price decrease for an average company, for instance, would destroy 11.1 % of the company's operating profit dollars. ...
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...purpose of the simulation is to identify bottlenecks in the queue and select a solution that improves profit and efficiency. With changes made during the simulation, the learning curve will also apply. In this paper, the learning curve will be defined, discuss the alternative approach, and discus total quality management (TQM) approach to continuously improve the processes set forth in the Mario’s Pizzeria Simulation. The learning curve is “a line displaying the relationship between unit production time and the cumulative number of units produced” (Chase, Jacobs, & Aquilano, 2006, p.134). This means there is a decrease in the time to produce a unit as the number of units produced increases. It is based on three assumptions: “1. The amount of time required to complete a given task or unit of a product will be less each time the task is undertaken, 2. the unit time will decrease at a decreasing rate, and 3. the reduction in time will follow a predictable pattern” (Chase, Jacobs, & Aquilano, 2006, p.134). The efficiency of the service provided after a change is made will improve as the service is repeated. Mario’s Pizzeria’s metrics to gauge the efficiency of the restaurant is the percent utilization of the two-person tables, four-person tables, wait staff, kitchen staff, ovens; average wait time; average queue length; number of two and four person group who balked and were served; and lost sales. These metrics shown in Table 1 shows how the changes made in the...
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...focus on serving customers and systemic problem solving teams made up of front line workers. Benefits Total Quality Management: * Strengthened competitive position * Adaptability to changing or emerging market conditions and to environmental and other government regulations * Higher productivity * Enhanced market image * Elimination of defects and waste * Reduced costs and better cost management * Higher profitability * Improved customer focus and satisfaction * Increased customer loyalty and retention * Increased job security * Improved employee morale * Enhanced shareholder and stakeholder value * Improved and innovative processes Advantages of Total Quality Management: * Improves reputation- faults and problems are spotted and sorted quicker * Higher employee morale– workers motivated by extra responsibility, team work and involvement in decisions of TQM * Lower costs – Decrease waste as fewer defective products and no need for separate * Quality Control inspectors (Quay,2012) Lean Manufacturing Lean manufacturing is all about creating value by bringing in fierce efficiency in every aspect of production, by minimizing wastefulness in all its manifestations. With its origins in eastern philosophy of 'Kaizen', lean manufacturing focuses on reduction of 'Muda' which is the Japanese word for anything in a manufacturing or business process, that is wasteful or not directed towards...
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...Assignment, Fall 2015 Submitted by – Protik Neogi Kaizen The term Kaizen is known as continuous improvement which basically a long term approach to work systematically seeks to achieve small incremental changes in process in order to improve efficiency and quality. Kaizen can be applied to any kind of work, but it is perhaps best known for being used in lean manufacturing and lean programming. If a work environment practices kaizen, continuous improvement is the responsibility of every worker, not just a selected few. This word bassically came from Japan which mean "good change''. One approach to continuous, incremental improvem47ent is called kaizen. It originated in Japan and the word translates to mean change (kai) for the good (zen). Kaizen is based on the philosophical belief that everything can be improve. Some organizations look at a process and see that it's running fine; Organizations that follow the principle of Kaizen see a process that can be improved. This means that nothing is ever seen as a status quo – there are continuous efforts to improve which result in small, often imperceptible, changes over time. These incremental changes add up to substantial changes over the longer term, without having to go through any radical innovation. It can be a much gentler and employee-friendly way to institute the changes that must occur as a business grows and adapts to its changing environment. Because Kaizen is more a philosophy than a...
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...in 2012 have been terrible for Tesco. We have experienced a huge fall in our economics. Previously it went really well for Tesco, and we had a higher sale than we have today. Investors once called Tesco a darling of the U.K. stock market, until January where everything went down for us. The shares has fallen by 20 percent. After this fall in market shares, my boss the longstanding chief Terry Leahy who have been CEO for Tesco for 14 years, have just gone off. The new CEO for Tesco is Philip Clarke, and it was not a nice sight he met the first couple of weeks. Experts have said that Mr. Clarke need to reconnect with customers and change the business’ culture. We did also launch the Fresh and Easy at the worst time possible, just one year into the financial crisis in 2008. We did also make some obvious mistakes though. We had no coffee in the store, as the first thing in the morning, there was no frozen food as Americans like and so on. That is why investors have called 182 Fresh & Easy stores to fail. The U.S. stores Fresh and Easy did also fail to take off and we did not catch that many customers. Still, we have some big international investors such as Warren G, BlackRock and the Singaporean Government. As a matter of fact, one in every seven pounds spend in UK are spend in one of our stores but we still needed to improve the business. Many customers...
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...Company’s reputation. Mrs. Fields’ Cookie Company succeeded from their good quality products. It gave a stronger influence to the customers. Moreover, As Mrs. Fields’ Cookie Company pursuing the tender loving care, Mrs. Fields would consider product liability for their cookies. Product liability is very important when making products. The sellers and manufacturers should always be aware of any kinds of injury or causes from the product, which means, they should fully understand the product. Higher quality means better performance, nicer features, and other improvements. Improvements in quality would help the Mrs. Fields’ Cookie Company to increase sales and reduce costs, both of which can increase profitability. Increases in sales often would occur as firms speed response, lower selling prices as a result of economies of scale, and improve their reputation for quality products. Indeed, Quality was the critical success factor for Mrs. Fields’ Cookie Company. Ethical decisions are important to the long-term success of any organization. Therefore, if some products in Ben and Jerry’s are politically incorrect, their profit will decrease. Even though their some products have received much favorable, their reputation will decrease at the same time. It is because the media is quick to find and publicize cases of their misbehavior. Activist groups and governments pressure organizations to respect and protect everything from human rights to the natural environment. Moreover, some large...
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...scenarios presented. There is often more than one way to improve a performance measure. Unfortunately, some of the actions taken by managers to make their performance look better may actually harm the organization. For example, suppose the marketing department is held responsible only for increasing the performance measure “total revenues,” Increases in total revenues may be achieved by working harder and smarter, but they can also usually be achieved by simply cutting prices. The increase in volume from cutting prices almost always results in greater total revenues; however, it does not always lead to greater total profits. Those who design performance measurement systems need to keep in mind that managers who are under pressure to perform may take actions to improve performance measures that have negative consequences elsewhere. For each of the following situations, describe actions that managers might take to show improvement in the performance measure but which do not actually lead to improvement in the organization’s overall performance. * Concerned with the slow rate at which new products are brought to market, top management of a consumer electronics company introduces a new performance measure–speed-to-market. The research and development department is given responsibility for this performance measure, which measures the average amount of time a product is in development before it is released to the market for sale. * The CEO of a telephone company has been under...
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...Summary The article by Michael Porter and Jan Rivkin, titled What Business Should do to Restore Competitiveness, revolves around the idea that American business and America as a whole are losing their global competiveness. With this premise, the authors shared a key perspective or idea which combined two present believes in that country. The perspective they provided is that businesses can and should enhance the commons, or its business environment, which the government has set. This would mean that it is the responsibility of both the government and the businesses to improve the commons. Long-run profits may be derived by the businesses employing this method. They, the authors, defined competiveness as the ability to operate in the United States and successfully compete with the global economy while supporting the high and rising living standards in that country. The article then discussed several ways to improve or restore competiveness. The ways may be classified into three categories. The first method was to pursue productivity. Productivity is not only found by producing more but also by emphasizing unique strengths that the American sector can provide. The article also states that it’s not necessary to always stay within the United States. This became evident in the fact that there are several multinationals expand faster in the States when they are also expanding in other countries. This is also coupled with the fact that there are instances when activities are brought...
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...PART A From the case study of ARGO, select one sub criteria from the leadership section and assess it using the RADAR methodology and the EFQM requirements of the Leadership criteria. Then write 1. Two strength areas (things ARGO did well as related to applying the requirements stipulated in the criteria or the RADAR) Answer: 1C. Leaders engage with external stakeholders. Looking at the points as mentioned in the criteria for 1C, ARGO ID has done quite well in accordance with the application of the criteria and keeping it up. ARGO has a small a customer base of large organizations and they don’t find it difficult to reach them, hence they can understand and respond to the customer’s expectations and needs. Moreover, the four senior managers including ARGO ID CEO manages themselves with their important customers which helps them understand customer’s apprehensions and concerns. ARGO ID CEO while visiting their key customers found out complaints about the Utilities’ department regarding unexpected interruptions due to bad weather conditions. So, with the help of ARGO’s customers, improvements were seen in the simplification of the tendering process and introducing billing by email for key customers etc. This shows ARGO’s compliance with the criteria’s second point which says that leaders should establish such approaches which would involve partners, customers and society in creating new concepts and improvement. ARGO uses Strategic Partnership initiative to maintain...
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... and that occasionally I make a wrong decision, but it is how you react and handle the situation that matters most and shows who really are. I am comfortable with ‘modeling the way’ largely because of my work ethics. I truly do love working and am okay with working more hours or working harder than others because it is one thing that I can control and be proud of. I believe that everyone has room for improvement and that by keeping an open mind, and by always continuing to learn that I can continue to become a better person and role model. Areas for Improvement According to the chart my lowest percentile score given by myself is ‘encouraging the heart’. With a self-score of 24, I fell roughly in the 25th percentile. I believe I can improve in this area because of two main problems that I have identified. First, I know that sometimes others view me as pessimistic or cynical because of many views that I have. I respond by saying that I am a realist and that it is not...
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...How managing resources and controlling budget costs can improve the performance of Schuh Subject: Personal evaluating the business performance Dear Sir/Madam The purpose of this letter is to share my personal evaluation of how your business ‘Schuh’ performance can be improved through effective management of resources and controlling of budgets. There are 5 main resources in a business which can help it become successful. Human resources, financial resources, educational resources, physical resources, technological resources and emotional resources. HUMAN RESOURCES Human resources are needed within a business, an example of a human resource is staff and employment, businesses employ staff members who obtain skills which can create a positive impact and benefit the business. Human resources can improve the performance of a Schuh in many ways; human resources are in charge of employing the correct people who are suited for a job, and to make sure that they have everything in place in order for them to make the best out of the job. Human resources have to have a bond with each staff member making sure they treat each staff member individually and treat them with respect and sometimes sensitivity as they are ran and organized by legislations and laws. In Schuh through different seasons and peaks, human resources have to make sure that all staff members are trained to handle these kinds of stressful times; this also involves having a look at potential employee’s...
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...workforce too. The revenue per employee of App Holster LLC is $ 8,333, which is increasing by 57% in 2014, and by 73% in 2015. In 2013 the revenue per employee of App Holster LLC is 82% lower than the Digitilus LLC, improving by 57% lower in 2014 and further improved by 41% in 2015. The revenue per employee of Digitilus LLC is $68,000. To put this in perspective, a typical company in the United States brings in $57,500 per employee, suggesting that companies in this industry generate more revenue per employee on average. Based on your analysis, what are the financial strength and weakness of your organization today? The financial strength of the App Holster is their innovative application for the smartphones, this innovation can boost the sales of their application which will have direct impact over App Holster financial stability and...
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