...Risk Management Overview February 21, 2011 FIN/415 Risk Management Overview Paper Risk management is a systematic process of managing the exposure of the organization to a variety of risks. This process has become increasingly important for the success of any organization in current competitive markets. The successful identification of threats and opportunities is crucial in risk management as it allows to create the processes and procedures allowing the company to maximize opportunities and minimize threats. Many organizations treat risk management seriously and create separate department responsible solely for risk management. Royal Caribbean Cruise Line incorporated risk management department into its structure. This step allowed this organization to improve the risk assessment procedures and introduce the necessary processes to minimize the impact of threats. The organizational risk relates to the organizational governance, operations, and information systems. The organizational risk management “provides assurance for reliable and accurate financial and operational information and reporting, effectiveness and efficiency of operations, and safeguarding of assets, as well as compliance with regulations, contracts, and the organization’s code of ethics” (Aghili, 2010, p. 23). Organizational risk management treats the relates to the organization as one entity and...
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...Originally, an Ethics and Compliance team was formed to monitor the formation and operation of the company guidance towards ethical issues in BP’s company. Just like to set up a communication consistent standard for all the employees of BP for different location, culture and language. Originally, this is a good way to guide the company staff to maintain company standard and reputation. But the code did not effectively address specific high-risk activities for the scope of daily operations. It was quite reasonable because at the very beginning stage of drafting the related guidelines, not every experience or assumed circumstancs were fully considered in the daily operations. Unfortunately, after the spill happened, several reports have pointed out that BP's internal problems were the main causes of the disaster. In 2009, the Occupational Safety and Health Administration had put a record largest fine of $87 million upon BP’s company. In the investigation, the OSHA has issued as many as 271 notifications to BP’s company. The notifications were mainly dealing with a series of misconducts which BP’s company performed in the 2005 Texas refinery explosion hazard. Moreover, BP’s company improper management and lack of adequate safety precautions were once again been found in the Deepwater Horizon oil spill at Mexico in 2010. Millions of gallons of oil were discharged into the Gulf of Mexico in this incident. The nearby environment was highly deteriorated and many precious lives had lost...
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...CASE STUDY # 1 JETBLUE AIRWAYS PROF. AHSAN DURRANI Submitted by: IMRAN UL HAQUE (4282) Q.NO.4 WHAT IS YOUR ASSESSMENT OF JETBLUE`S FINANCIAL PERFORMACE DURING FISCAL YEARS 2003-2007? ANALYZE THE FOLLOWING RATIO`S. | 2007 | 2006 | 2005 | 2004 | 2003 | Gross Profit Margin | | | | | | Operating Profit Margin | 0.0595 | 0.0537 | 0.0282 | 0.0877 | 0.1673 | Net Profit Margin | 0.0063 | (0.00042) | (0.01176) | 0.0364 | 0.103 | Return on Total Assets | 0.0398 | 0.032 | 0.0394 | 0.0949 | 0.1984 | Return on Stockholder Equity | 0.017 | (0.0011) | (0.022) | 0.061 | 0.154 | Earnings Per Share | 0.10 | - | (0.13) | 0.30 | 0.71 | Current Ratio | 1:0.89 | 1:1.085 | 1:0.94 | 1:0.85 | 1:1.75 | Quick Ratio | 1:0.74 | 1:0.909 | 1:0.855 | 1:0.998 | 1:1.733 | Working Capital | (146) | 73 | (41) | (74) | 276121 | Debt to Asset Ratio | 0.544 | 0.586 | 0.598 | 0.5524 | 0.508 | Long-term Debt to Capital Ratio | 1:0.46 | 1:0.542 | 1:0.54 | 1:0.5 | 0.463 | Debt to Equity Ratio | 2.942 | 2.983 | 2.55 | 2.0491 | 1.655 | Times Interest Earned | 1.23 | 1.062 | 0.74 | 2.67 | 8.25 | Common stock A $100 investment in JetBlue common stock on December 31, 2002, was worth only $49 five years later. In contrast, a $100 investment in the S&P 500 index was worth $182 at the end of the same five-year period. Industry observers quipped that it was better to place money under a mattress than invest in an airline stock. According to the expert, “Airlines are...
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...Introduction Airasia is an airline started by the Malaysia government conglomerate, DRB-Hicom in 1993 and it’s first operation was carried out on 18 November 1996. The current Airasia country CEO of Malaysia is Aireen Omar. Since 2001, Airasia had been growing rapidly and received recognition award for largest low fare airlines in the Asia. It now served over 60 domestic and international countries with a fleet of 72 aircrafts all airbus A320-200 with 108 routes network. Airasia is well known for its belief ‘Now Everyone Can Fly’ and flies over millions of customers believing in the no frills without hassle, cost effective business concept and high efficiency of air travel which more and more customers choosing Airasia as their favourite choice of air transport. Management Approach From studying the management strategy that AirAsia has been using, the management approach that AirAsia is currently using is the contemporary approach. The contemporary approach can be separate into two different parts; they are the system approach and the contingency approach. Closed systems are not influenced by and do not interact with their environment. In contrast, open system approach is which organization is described as an open system, that it takes inputs from the environment and transforms these resources into outputs that are distributed into the environment. On the other hand, contingency approach states that organizations are different...
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...An Overview on Multinational Corporations INTRODUCTION Multinational corporations (MNCs) are firms that engage in some form of international business. Their managers conduct international financial management which involves international investing and financing decisions that are intended to maximize the value of the MNC. Management is motivated to achieve a number of goals and objectives, some of which conflict with each other. However, the commonly accepted objective of an MNC is to maximize stockholder wealth on a global basis, as reflected by stock price. Managers of an MNC may make decisions that conflict with the firm’s goal to maximize shareholder wealth. This conflict of goals between firm’s managers and shareholders’ is often referred to as the agency problem. For the firm to achieve its goals, it needs to put in place mechanism for control of agency problem. MNCs are recognized as the main actors of e international business, international business financing and global economies. According to Goshen and Bartlett, MNC is a firm that has substantial direct investment in foreign countries that it actively manages.2 the value of their sales in host countries overpasses the value of trade (imports and exports) in today’s World economy. Multinational companies attracted scientific and public attention from the moment of their appearance, and especially from the beginning of their intensive growth (during the 1960s). There are many interesting and important issues...
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...Contents * History of Blackwater company * Management * Issue * Action * End of organization History Blackwater USA and Blackwater Worldwide – is a private military company founded in 1997 by Erik Prince and Al Clark, Blackwater Worldwide says it has trained tens of thousands of security personnel to work in hot spots around the world. The company, now called Xe Services, was once the United States’ go-to contractor in Iraq and Afghanistan. It has been under intense scrutiny since 2007, when Blackwater guards were accused of killing 17 civilians in Nisour Square in Baghdad. The company and its executives and personnel have faced civil lawsuits, criminal charges and Congressional investigations surrounding accusations of murder and bribery. In April 2010, federal prosecutors announced weapons charges against five former senior Blackwater executives, including its former president, Erik D. Prince. Nearly four years after the federal government began a string of investigations and criminal prosecutions against company personnel, some of the cases have fallen apart, burdened by legal obstacles including the difficulties of obtaining evidence in war zones, of gaining proper jurisdiction for prosecutions in American civilian courts, and of overcoming...
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...Amante, Georgetown University Mike Cadigan, Noble Drilling Services Inc. Noble Corporation Noble Corporation’s International Expansion Introduction As Jim Day, the CEO of Noble Corporation for 12 years, looked at the reports before him, he made a list of the many uncertainties inherent in the potential acquisition of Neddrill—the oil and gas drilling services subsidiary of Royal Nedlloyd N.V., a Dutch shipping company. First was the quality of the drilling assets. As far as his people could tell, the rigs would all require significant investment to bring them up to Noble standards. But the exact amount was unknown. Second was the industry’s inability to accurately forecast future dayrates (daily revenue for drilling on behalf of clients) for the rigs. Many insiders expected rates to rise but they had been wrong before with major consequences. Acquiring costly drilling assets could prove very risky if the dayrates went down instead. Third was the complexity introduced by buying a large international firm whose employees were not overly enthusiastic about joining a U.S. based driller. An inability to efficiently integrate the Neddrill assets and people into Noble would reduce the value of the acquisition as well as put Noble’s reputation at risk. A number of factors, however, argued for continued growth through acquisition and by entering deepwater markets. Most analysts in the industry believed that expanding operations outside the U.S. was imperative. Over the past century...
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...THE USE OF OPERATIONS OBJECTIVES AND PERFORMANCE MEASURES IN PRIVATE AND PUBLIC ORGANIZATIONS White Paper February 15, 2010 Prepared for: Federal Highway Administration Federal Transit Administration FHWA-HOP-10-029 Quality Assurance Statement The Federal Highway Administration (FHWA) provides high-quality information to serve Government, industry, and the public in a manner that promotes public understanding. Standards and policies are used to ensure and maximize the quality, objectivity, utility, and integrity of its information. FHWA periodically reviews quality issues and adjusts its programs and processes to ensure continuous quality improvement. Technical Report Documentation Page 1. Report No. FHWA-HOP-10-029 4. Title and Subtitle The Use of Operations Objectives and Performance Measures in Private and Public Organizations White Paper 7. Authors Jocelyn Bauer, Kelley Pecheux, Michael Smith, Zachary Fletcher 9. Performing Organization Name and Address Science Applications International Corporation (SAIC) 8301 Greensboro Drive McLean, VA 22102 12. Sponsoring Agency Name and Address United States Department of Transportation Federal Highway Administration 1200 New Jersey Ave., SE Washington, DC 20590 15. Supplementary Notes Mr. Richard Backlund, Federal Highway Administration, COTM 16. Abstract This paper examines lessons and insights from private companies and public organizations that may apply to agencies in the United States working to advance transportation...
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...05/2011-current Supply Chain Analyst (Independent Consultant) Dorf Ketal Specialty Chemicals & Catalyst Stafford, TX • Manage transition of Employee roles. Assist in creation and update of Oracle procedures and Employee desk manuals. • Manage transition of carrier selection to maximize on-time shipments. Track inbound and outbound shipments. Inform Customer Service/Supply Chain of delays. Work in cooperation with Customer Service, Freight Forwarders and Expeditors for shipment/delivery of material. • Review forecast for Catalysts and Chemicals and advise Inventory Replenisher of PO’s that need to be entered immediately. • Driving continuous improvement in on Logistics for the various modes of transportation: Truck, LTL, Rail, Ocean, and Air Freight. File claims with carriers. • Compile Special Instructions, develop lead-time requirements and material reference #’s from Customers and enter into Customer Master and Item Master. • Monitors and trained warehouses on Shipping/Receiving Processes. • Maintained Business Continuity Plan. 11/2009 – 05/2011 Ascend Performance Materials Order Management Analyst - Chemicals Houston, TX • Served as the...
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...and ultimate issues that Kathy faced opening these stores, we will concentrate on the internal and external drivers of her innovation. We will show-case how innovation, design and creative thinking help cultivate the business know as Kudler Fine Foods. Internal driver is one key success in creating an innovative organization. Top executives and leaders at Kudler Fine Foods Incorporation must have a vision and a mission statement. Kudler’s management team hires knowledgeable employees in the gourmet foods industry. Management offers their employees educational opportunities for growth in the company. Employees are rewarded with pay bonuses and pay raises as well as food discounts when performing exceptionally. Kudler employees believe the leaders are listening to their ideas. Kudler’s strengths are an all inclusive store with large selection employees demonstrates excellent customer service. Kudler customers are loyal to the company. Customers continue to re-visit the company because of the excellent customer service. Kudler maintains advance systems, which allows the employees to stay up to...
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...Corporate governance Corporate governance: basic stance Honda considers corporate governance one of the most important management issues. We’re strengthening it on the basis of our fundamental corporate philosophy, aiming to have the global community—including our customers, shareholders and investors—place even greater trust in us as we strive to be a company society wants to exist. To ensure objective oversight of management, Honda appoints outside directors to its Board of Directors and outside auditors to its Board of Auditors. To strengthen its business execution system in each region and workplace, as well as enhance the supervisory function of the Board of Directors, Honda has introduced an Operating Officer System. To help its Board of Directors respond quickly to changing business environments, as well as to improve the flexibility of its decisionmaking process, Honda limits directors’ assignments to one year and Corporate Governance: Organization Board of Auditors: 5 Auditors (Outside Auditors: 3 Auditors) Business Ethics Committee: 6 Officers Compliance Officer Regional Sales Operations (Japan) Regional Operating Board Risk Management Officer Regional Operations (North/ Central America) Regional Operating Board determines their compensation in accordance with business results. Based on its fundamental corporate philosophy, Honda has refined its organizational structure. A general manager from the Board of Directors or an Operating Officer is now assigned to...
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...employees feel homely and stay with your organization for a very long time. Capture their pulse through employee surveys. Open Book Management Style Sharing information about contracts, sales, new clients, management objectives, company policies, employee personal data etc. ensures that the employees are as enthusiastic about the business as the management. Through this open book process you can gradually create a culture of participative management and ignite the creative endeavor of your work force.. It involves making people an interested party to your strategic decisions, thus aligning them to your business objectives. Be as open as you can. It helps in building trust & motivates employees. Employee self service portal, Manager on-line etc. are the tools available today to the management to practice this style. Performance linked Bonuses Paying out bonuses or having any kind of variable compensation plan can be both an incentive and a disillusionment, based on how it is administered and communicated. Bonus must be designed in such a way that people understand that there is no payout unless the company hits a certain level of profitability. Additional criteria could be the team's success and the individual's performance. Never pay out bonus without measuring performance, unless it is a statutory obligation. 360 Degree Performance Management Feedback System This system, which solicits feedback from seniors (including the boss), peers and subordinates has been increasingly...
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...plan (BCP) that the company would follow if faced with a major business disruption (e.g., hurricane, tornado, terrorist attack, loss of a data center, the sudden loss of a call center in a foreign country, the collapse of a financial market or other catastrophic event) in which you include the following: Business Contingency Plan (BCP) Definition: “Business continuity planning (BCP) ‘identifies an organization's exposure to internal and external threats and synthesizes hard and soft assets to provide effective prevention and recovery for the organization, while maintaining competitive advantage and value system integrity’. It is also called business continuity and resiliency planning (BCRP). A business continuity plan is a roadmap for continuing operations under adverse conditions such as a storm or a crime,” (Business continuity planning, n.d.). 1. Analyze strategic pre-incident changes the company would follow to ensure the well-being of the enterprise: Notes: outline proactive suggestions that can be made in advance of potential risks actuating into disaster, e.g., training, drills, company policies and procedures and so forth. Create strategic pre-incident strategy that incorporates the following elements and considerations: • Identify potential risks for each IPC business operation in all its domestic and international locations. This identification process may include: Potential risks may be inherent to the various IPC business operations. For example, refinery...
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...1. INTRODUCTION OF PROJECT Information system is the study of complementary network of hardware and software that people and organizations use to collect, filter and process, create and distribute data. The system is many have in all organization or company in this world that act as a catalyst in managing their data perfectively. For this case, the company has chosen to identify what the system that they use in managing their information and data in their company. The company that has chosen is Air Asia Airlines. Air Asia has been successful low cost carrier in operating in Asia region for these past few years and IT is one the major enables for the Air Asia’s low cost business model. Every single primary activity is supported by specific information technologies, for example, utilization of Computer Reservation System (CRS) and Yield Management System (YMS) are critical in the aviation Industry. Besides that, without employing these systems, no airline including AirAsia can operate. In addition, all airlines in LCC industry compete on costs, AirAsia Airlines needs to offer the lowest possible fare in order to win the competition in lower the costs as possible as need. In the way they want to lower the cost regarding the others airlines agency also do the same thing in lower the cost, AirAsia Airlines must more cheaper and affordable. However, this AirAsia Airlines are situated in many place in Malaysia. AirAsia Airlines opened many branches in this country to make sure...
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...Everyone agrees that business managers must understand finance and marketing. But is it necessary for them to study ethics? Managers who answer in the negative generally base their thinking on one of three rationales. They may simply say that they have no reason to be ethical. They see why they should make a profit, and most agree they should do so legally. But why should they be concerned about ethics, as long as they are making money and staying out of jail? Other managers recognize that they should be ethical but identify their ethical duty with making a legal profit for the firm. They see no need to be ethical in any further sense, and therefore no need for any background beyond business and law. A third group of managers grant that ethical duty goes further than what is required by law. But they still insist that there is no point in studying ethics. Character is formed in childhood, not while reading a college text or sitting in class. These arguments are confused and mistaken on several levels. To see why, it is best to start with the question raised by the first one: why should business people be ethical? Why Should One Be Ethical? There is already something odd about this question. It is like asking, “Why are bachelors unmarried?” They are unmarried by definition. If they were married, they would not be bachelors. It is the same with ethics. To say that one should do something is another way of saying it is ethical. If it is not ethical, then one should...
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