...A Critical Thinking Analysis of the Penn-Mart Memo Kristin Daniels University of Maryland, University College DMBA 610 Professor Jackson The issue that caused this memo to be written is in regards to the rising cost of employee benefits pertaining to healthcare. The Human Resources department was asked to come up with a solution to the problem of the increase in company spending and to find the root causes of expenditure. They proposed the “Get Well” program that will supposedly cut costs, making the perceived effectiveness of this program the main issue of the memo. The conclusion of this memo is that the Senior Vice President of Human Resources, Mr. Monella, wants Penn-Mart to institute a “Get Well” program that would cut down on costs to the company by means of preventative care and getting the employee population more involved in their healthcare. The employees that don’t abide by the new program features will either pay $1,000 towards costs, will break away from the company in some form or will have to rely on another way to get healthcare coverage. The author uses many indicator words in order to make his conclusion clear: he believes that his research shows that “Get Well” will not only make employees feel better about themselves, but will also have a positive impact on Penn-Well’s situation. By conducting internal research into the matter and causes of the increase in healthcare cost for employees, Mr. Monella is communicating what his department feels...
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...MANNING’S SCHOOL AGRICULTURAL SCIENCE DEPARTMENT AGRICULTURE SBA TEMPLATE Guidelines for Cost Analysis of Farm Production Project (Crop Production) Item | Description | KCMarks | Total | (I) Introduction | Name of projectLocationDurationDescription of activities, sketch of layout of plot,materials and equipments Schedule of operation | 3 1 | | (ii) Complete budget | Projected income (output x price)Projected expenditure (itemized)surplus | 1 1 1 | | (iii) Actual income And expenditure | Income (from sale to produce) ExpenditureSurplus or shortfall | 2 2 1 | | (iv) Analysis (v) Language | Comparison of projected and actual income,Expenditure and surplus or shortfallGeneral commentConclusionRecommendationsCommunication of information in a logical manner using correct grammar | 2 2 1 1 2 | | TOTAL | | 20 | | NAME OF PROJECT: Crop Production LOCATION: Manning’s School Farm DURATION: Six –Sixteen Weeks (or you can write the date started and the date when project completed) Description of Activities This will include activities that will be carried out during the production period that are important for growth and development of the chicken. These include: * Site Selection * Land Preparation * Seedling production seed bed Management * Planting and transplanting * Irrigation * Weed control * Fertilizer/Fertilizing ...
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...Utilitarianism is a moral principle that holds that the morally right course of action in any situation is the one that produces the greatest balance of benefits over harms for everyone affected. So long as a course of action produces maximum benefits for everyone, utilitarianism does not care whether the benefits are produced by lies, manipulation, or coercion (Andre,Velazques). Gene G. James in his book Business Ethics:Readings and Cases in Corporate Morality, defines whistle blowing as, “the attempt of an employee or former employee of an organization to disclose what he or she believes to be wrongdoing in or by the organization” (Griffin). How does one choose if wrongdoing has happened in a utilitarianistic view? To present the process of utilitarian theory in a whistleblowing case, I ran across documentation referencing Ford Motor Company’s manufacturing of the Ford Pinto the early 1970’s. Petersen and Farrell discuss the ethical dilemmas faced by engineers highlighted by the 1980 Winamac, Indiana trial of Ford Motor Company (1986, p.3). The Pinto was created as a response to the Japanese competition emerging in the US. Due to competition, Ford was eager to get the subcompact car released in 1971. Changes were made, and Ford was able to reduce the lead time of production by a year and a half to get the car on the road. Frank Capps, a principal design Engineer charged that management’s weight and price goals along with time requirements resulted in engineers having to place...
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...Alternative “C” Economic Analysis * Contains: 1. Tangible Benefits Worksheet 2. One Time Cost Worksheet 3. Recurring Cost Worksheet 4. Discount rates * Used to create Cost/Benefit Analysis Spreadsheets for possible alternative solutions. Cost/Benefit Analysis spreadsheet is located in doc sharing. * Description of Alternative C – Nova Corporation. (see page 151 in the book) 1. Industry Leader in CRM solutions 2. Large and complex 3. Pricing only based on modules purchased 4. License for the use of the system is middle of the row 1. Tangible Benefits Worksheet - Nova Nova - Alternative “C” Tangible Benefits Worksheet | A. | Cost reduction or avoidance | $12,500 | B. | Error reduction | $ 3,500 | C. | Increased Flexibility | $ 5,500 | D. | Increased speed of activity | $ 7,500 | E. | Improvement management/planning control | $15,000 | F. | Ease of interfacing with business partners | $16,000 | Total Tangible Benefits | $60,000 | 2. One Time Cost Worksheet – Nova Nova - Alternative “C” One Time Costs Worksheet | A. | Development Costs | $ 2,000 | B. | New Hardware | $ 1,000 | C. | Software License or Purchase cost | $19,500 | D. | User Training | $ 3,500 | E. | Site Preparation | $ 4,000 | Total One Time Costs | $30,000 | 3. Recurring Cost Worksheet – Nova Nova – Alternative “ C” Recurring Cost Costs Worksheet | A. | Software Maintenance | $ 2,500 | B. | Incremental Data Storage...
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...the materiality thresholds used on individual audit engagements? Would it be feasible for auditors to conceal this information from their audit clients? Absolutely, auditors should do their utmost in concealing such critical audit aspects as that of materiality thresholds because they can very well jeopardize the genuinity and conclusion of the audit engagement as was evident in the case. Of course, it is nearly impossible to eliminate such doubt because of the fact there is so much interaction between the client and the auditors, whether it be handle inquiries or prepare documents. Clients can very use such interaction to their advantage and develop a sense as to how the auditors work and what accounts they will look into. The cost benefit analysis would come into play...
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...Cost/Benefit analysis of Employee Training programs University of Phoenix HRM/531 Training is a process that can provide significant value and rewards that far outweigh its financial costs. The effects of training touches the lives of employees from the first day of a new job through retirement The purpose of this paper is to show how employee training benefits not only the organization but also the environment as well. The reader will be introduced to an oil distribution company undergoing costly problems because of poorly trained employees. These problems have resulted in repeated environmental violations. An analysis of the company was conducted to weigh the cost/benefits of incorporating an effective employee-training program to address the problem. The outcome of the analysis will determine whether the training is financially feasible, or if another project should be pursued. In addition, the effect of management behavior on productivity, the definition and use of behavior costing, effects of high performance work policies on business financial performanceas that relate to the company; along with recommendations based on researched data gathered will be given in this paper. Training is defined as an activity leading to skilled behavior. Employee training involves a set of planned activities that organization will have their employees complete in order to increase their job knowledge, skills, and abilities. In practice, training gets employees accustomed...
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...the company and come up with two alternatives, which will help determine the best choice to maximize labor productivity for Taylor Inc. The cost-benefit matrix below will show which alternative management technique will maximize productivity with less worker’s compensation claims. Cost Benefit Matrix Current Alternative One Alternative Two Number of employees 17 6 9 Payroll costs per 8 hour day $5,848.00 $2,064.00 $3,096.00 Payroll costs per week $29,240.00 $10,320.00 $15,480.00 Payroll savings per week 0 $18,920.00 $13,760.00 Payroll costs per year (52 weeks) $1,520,480.00 $536,640.00 $804,960.00 Claims per year 4 0.3 1.9 Claims costs per year $436,000.00 $32,700.00 $207,100.00 Claims costs savings 0 $403,300.00 $228,900.00 Wages and claims per year $1,956,480.00 $569,340.00 $1,012,060.00 Wage and claims savings per year $0.00 $1,387,140.00 $944,420.00 Physical lifting in pounds 42 12 23 Capital expenditures $0.00 $1,300,000.00 $967,000.00 Cost difference in capital expenditures $1,300,000.00 0 $333,000.00 Outputs of finished widgets 208 392 288 Life in equipment 0 7 5 Wasted motion in % 27% 1% 7% Effect of Alternative on Productivity Based on the above cost-benefit matrix, the best option for Taylor Inc. would be Alternative One. Although Alternative One is the more expensive management technique, it is more cost-effective over the course of seven years. Alternative One requires a capital investment of $1,300,000.00, which is $333,000.00 more than...
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...Ford's Risk/Benefit Analysis The main controversy surrounding the Ford Pinto case was The Ford Motor Company's choices made during development to compromise safety for efficiency and profit maximization. More specifically, it was Ford's decision to use the cost/benefit analysis detailed in section 11 to make production decisions that translated into lost lives. During the initial production and testing phase, Ford set "limits for 2000" for the Pinto. That meant the car was not to exceed $2000 in cost or 2000 pounds in weight. This set tough limitations on the production team. After the basic design was complete, crash testing was begun. The results of crash testing revealed that when struck from the rear at speeds of 31 miles per hour or above, the Pinto's gas tank ruptured. The tank was positioned according to the industry standard at the time (between the rear bumper and the rear axle), but studs protruding from the rear axle would puncture the gas tank. Upon impact, the fuel filler neck would break, resulting in spilled gasoline. The Pinto basically turned into a death trap. Ford crash tested a total of eleven automobiles and eight resulted in potentially catastrophic situations. The only three that survived had their gas tanks modified prior to testing.55 Ford was not in violation of the law in any way and had to make the decision whether to incur a cost to fix the obvious problem internally. There were several options for fuel system redesign. The option most seriously...
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...Written Analysis and Communication I Submitted to Prof.Rohini Patel Ms.Pooja Thomas By Prabu.T Parmar Niravkumar R. Section-D On 23rd July, 2011 Letter of Transmittal To Mr. Paul Stevenson, Vice-President, Manufacturing, W. C. Wood Company. Subject: Analysis report on proposal to change the packaging of the Company’s product line With reference to your request for a report on the proposal to change the packaging of the Company’s product line, please find attached the same. After careful analysis and consideration of the options, I recommend that we should adopt clear pack packaging and install Lachenmeier equipments simultaneously at all plants. Detailed analysis is presented in the enclosed report. Regards, XYZ, Assistant to the VP, Manufacturing, W. C. Wood Company, 8th January, 2004. Executive Summary W. C. Wood Company has been considering a proposal to change the packaging of their product lines from cardboard to ‘clear pack’. A shift to clear pack would bring down the high expenditures on damage warranty claims and increase ease of handling. But the huge capital expenditure involved with the shift should also be taken into account. We should decide whether to shift to the new packaging and if so the timeline for the implementation. The strategy could involve a one-time or phased implementation. This should be done after taking the cost benefits...
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...found in most previous studies. We use these results to estimate coverage expansion under the Affordable Care Act, with and without an individual mandate. We estimate that 39 million uninsured individuals would gain coverage and find limited evidence of adverse selection. In the United States, the economy shapes the complex interactions among employment, health coverage, and costs, as well as financial access to care and health outcomes. In economic downturns, few employers drop health coverage or restrict employee eligibility. More commonly, they reduce costs by changing benefits and cost-sharing provisions. Employees in low-wage jobs, working in small firms, and those in certain industries have been far more likely than others to have been uninsured when they lost their jobs, but this recession is affecting a broader swath of the workforce. Research on the effects of economic cycles on health status is confusing. Apart from the current economic downturn, the design and cost of employer-sponsored coverage have also changed over time, and more people are finding work that does not offer health benefits. The recession has kept patients from seeking inpatient and elective services. Physicians and...
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...Uttarakhand Regional Economic Development (RED) Prgramme: A joint venture of GTZ & NABARD 1. What is RED programme? RED is a joint venture of GTZ & NABARD for the economic development of Uttarakhand state through development of certain pre selected value chains in agro based sectors, improvement in business and investment opportunities for the private sector and promotion of rural MSMEs in the state in Specific Agro–Based Industries. 2. Which sectors are eligible for support under the RED programme ? Seven sectors viz. ■ Medicinal and Aromatic plants (MAP) ■ Spices ■ Vegetables ■ Pulses ■ Dairy ■ Traditional/Non-traditional fibers ■ Agro Processing 3. What will be the form of assistance under the RED programme? Grant assistance in the form of ✓ seed capital for start-up ventures, or ✓ “Margin money” for existing business to enable them to access bank loans. ■ Grant to be used to create or acquire infrastructure, technical or managerial know-how, inputs like seeds or implements, aggregation or processing of farm produce by value chain intermediaries. 4. To what extent the support will be granted? ■ GTZ grant to be based on merit, to the extent of 30 to 40 percent of project outlay with maximum limit of Rs. 8.00 lakh per project. ■ The selected MSME to arrange the remaining 60 to 70 percent (as the case may be) from either own resources or from bank as loan. (Including NABARD’s support from its own...
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...Conglomerate mergers HORIZONTAL MERGERS WILLIAMSON’S FRAMEWORK: • The issue of appropriate public policy to deal with horizontal mergers is discussed below in a frame described by Williamson. • If a horizontal merger simply has the effect of increasing the market power of the merged firms, enabling them to raise prices and profits, then a prima facie case against the merger exists. • Williamson in particular focuses attention on economies or real cost savings as a defense of horizontal mergers. [pic] (fig.1) • Assume for simplicity a competitive market with constant costs, AC1, and a market demand curve, D, as shown in the figure. • In a competitive equilibrium, price is equal to marginal and unit cost, p1, and competitive output is x1. • Assume that a series of mergers now takes place giving rise to real cost savings which reduce costs to AC2. • Such costs may arise, for example, from rationalization of production and the exploitation of economies of scale. • If the merged firms continue to charge price p1 or below then consumers are no worse off and there is a saving in resources in producing output x1 equal to area p1cge. • The merger is therefore strictly beneficial. • Suppose, however, that the post merger price rises above p1, to say, p2. Output is restricted to x2 and consumer surplus is reduced by area p1bde. ...
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...Estimating Project Times and Costs Estimating ESTIMATING PROJECTS Estimating The process of forecasting or approximating the time and cost of completing project deliverables Types of Estimates Top-down (macro) estimates: analogy, group consensus, or mathematical relationships Bottom-up (micro) estimates: estimates of elements of the work breakdown structure WHY ESTIMATING TIME AND COST ARE IMPORTANT Estimates are needed to determine how long the project should take and its cost. Estimates are needed to schedule work. Estimates are needed to develop cash flow needs Estimates are needed to develop time-phased budgets and establish the project baseline. Estimates are needed to determine whether the project is worth doing. Estimates are needed to determine how well the project is progressing. Estimates are needed to support good decisions. FACTORS INFLUENCING THE QUALITY OF ESTIMATES Other Factors Other Factors Other ((e.g. e.g. .downtime) ..downtime) downtime) Organization Organization Culture Culture Padding Padding Estimates Estimates Planning Planning Planning Horizon Horizon Horizon Quality of Quality of Quality Estimates Estimates Estimates Project Project Duration Duration Task Task Task Definition Definition Definition People People People productivity productivity productivity Project Project Project Structure and Structure and Organization Organization Organization ESTIMATING...
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...Image creation-BP is in the mature stage of its life cycle, has been involved in multiple mishaps over the years. They have lost focus of their duty to the environment, the public, and its shareholders. 1) SWOT analysis Strengths-they have alot of money that can be reinvested in enhancing/repairing their image and focusing on the environment, their connections (with the British government and Navy), alternative energy (wind, solar, biofuels), infrastructure, carbon footprint toolkit, they were the first energy company to acknowledge global warming/environmental awareness Weaknesses-image, oil spills, poor ethics (price gouging,wire/mail fraud, etc.) Opportunities-technological opportunities (alternative energies, improved drilling capabilities, jumping onto the environmentally sustainable movement-and is also a threat to their original business model) Threats-politics (policies/regulations), economics (supply and demand fluctuation, improved commodities markets), competition, natural disasters 2) Problem Analysis (this should be clear and to the point-a few sentences is all that is necessary): Their image is tarnished, so they are concentrating on rebuilding this. They started this process by changing their name from British Petroleum to simply BP (Beyond Petroleum-suggesting that they will focus their efforts on multiple energy sources). Why is their image tarnished? What led to this occurring? What measures have they taken to address this issue? 3)...
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...possibility of expanding into foreign markets, specifically developing countries. Management accounting focuses on subunits of the business, which allows the analysis of a variety of aspects of the business, such as processes, departments and specific products to ensure that the actual results are tracking close to the plans. Whereas financial accounting is an overall view of the business which produces reports for the external stakeholders and must adhere to the NZ accounting standards. Management accounting is not governed by such standards, if something can be measured it can be analysed, controlled and influenced. The differentiation strategy of innovation means that GTH Ltd needs to continually design and develop innovative products. Management accounting information is important and it must be received by managers in a timely manner so that production processes can be changed rapidly in response to innovations within the R&D team and in response to changes in the competitive environment. Management accounting can track the innovations with regards to the number of products making it to market and the sales/costs of these products. It can also help with comparisons to competitors in the hearing aid market. With regard to expansion, the potential hearing aid market in developing countries is extensive, but the costs of production need to be economical because developing countries do not have much money available to...
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