...Case for critical analysis: Pinnacle Machine Tool Co. Introduction Pinnacle Machine Tool Co., it is a small, publicly held Indiana-based machine tool Company, it was founded in 1976. This company specializes in manufacturing all kind of machine centres. They too have excellent experiences in Technology, Quality and Service (Pinnacle Machine Tool Co. Ltd.). Problem Statement How is Pinnacle going to avoid its company to fall off the market? Is entering a new market the only solution to defend itself from rival companies to take over the market or company? Don Anglos mentions in the case that the current situation of the Pinnacle shows that it is facing an increasing amount of rivalry with foreign manufacturers. Anglos managed to slightly increase Pinnacle’s revenue growth and market share however it came with a price which is a drop in profitability. This issue can lead to the loss of the business, this is causing Anglos to make a change as there is a credible rumour of Pinnacle’s chief competitor’s plan to take over the company Porter’s Five Forces Analysis: Economies of Scale Brand Identity Proprietary Product Access to Distribution Economies of Scale Brand Identity Proprietary Product Access to Distribution Diversity of competitors Industry Growth Brand Identity Product & service Differences Exit Barriers Diversity of competitors Industry Growth Brand Identity Product & service Differences Exit Barriers Buyers might tend to...
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...AUDIT MISSION ANALYSIS PROJECT Integrated Case Application- Pinnacle Manufacturing Table of contents Organizational History INTEGRATED CASE APPLICATION — PINNACLE MANUFACTURING: PART II a. Identification of specific considerations from Parts I and II b. Assessment of acceptable audit risk c. Identification inherent risks INTEGRATED CASE APPLICATION — PINNACLE MANUFACTURING: PART III (1) Controls (2) Deficiencies (3) Control risk Assessment Integrated Case Application- Pinnacle Manufacturing I. Organizational History Pinnacle was set up in 1996 in Pithampur, near city of Indore in Madhya Pradesh (INDIA). Over the last several years the company has continuously invested in and expanded its technology partnerships, manufacturing systems, product range and clientele to emerge as India’s largest commercial vehicle, bus seating and Interiors Company. [pic] INTEGRATED CASE APPLICATION — PINNACLE MANUFACTURING: PART II a. Identify specific considerations from Parts I and II of the case that affect your assessments of engagement risk and acceptable audit risk. Use each of the three factors in the text to...
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...g. Analysis account balance for Account Receivable, inventory, and short/current long-term debt. Account Receivable * 2011: 7,936,409 * 2012: 8,619,857 * 2013: 13,042,165 Based on these account receivable, the number is slightly changed between 2011 and 2012 around $683,448 and there is significantly increased from 2012 to 2013 about $4,422,308. The reason why the number is extremely high for 2013 could be because Pinnacle just recently acquired the second division, which is Solar-Electro, and the third division Machine-Tech is only operated for two years. Since those two divisions only operated for a short period of time, company might have promotion for existed customers to be able to be their loyal supplier. They also could have programs for new customers to purchase their engine equipment with long-term installment payments. Inventory: * 2011: 25,271,503 * 2012: 25,537,198 * 2013: 32,236,021 From 2012 to 2013, Pinnacle’s inventory is slightly increased for $265,695. However, more than $6,698,823 inventory they have on hand from 2012 to 2013. Once again, they want to maximize productivity of two new divisions and keeping up with the existed Welburn division to be able to meet their customers’ orders. They needed to have more variety of their inventories so they can have it ready to ship. Short/current long-term debt: * 2011: 9,672,670 * 2012: 10,298,668 * 2013: 15,375,819 Short/current long-term debt is increased over 3 years...
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...I. Introduction and Overview Ever Solid Plastic Manufacturing Company is a plastic manufacturing company owned by Rosario Tan. The company is a distributor of high quality plastics. It manufactures different set of products such as sando bags, plastic cups, paper cups, spaghetti boxes, and etc. It has been operating for approximately 17 years and is located in Valenzuela City, Metro Manila. The study of the researchers were focusing on the business operations of the said company. Based on the company visits and interviews we have conducted in the company, the researchers have discovered that the main problem of the company is having problems with regards to their manual business operations or processes. In line with this, the researchers took time to study the company’s situation and were able to further identify the company departments’ concerns regarding their overall system. Most of its operations were manual, its records were only stored in a booklet and such manual processes are being practiced. Thus, the company experiences inconsistent data flow. II. Company Background Ever Solid Plastic Manufacturing Company is engaged is wide range of products. The company consists of 300 employees, 100 persons inside the admin and office, and the remaining 200 people in charged in the manufacturing processes. It is owned by Rosario Tan. The company is based in Valenzuela City, Metro Manila. The company started its operation in 1997 with a small warehouse in MMS compound...
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...Situation Analysis First of all I consider your instant closing of old branch as a major setback from the operations point of view. Since last two years you built an amazing rapport there with your customers and established your technical acumen as a brand, you should have atleast provided some overlap plan rather than shifting instantly to the new Arcade so that it could have contributed to your image building at new location and consequently you should shut down this premise once your brand attained pinnacle in terms of value creation. Secondly also looking at following projected Sales (in case if you continued at the same place) and Actual Sales at new place (considering the uniform trend for the next 6 months as initial 6 months), it can be easily inferred that continuing at the same place assuming you maintain uniform profit margin over second and third year, would have helped you to achieve higher sales projections than what you achieved in Arcade owing to lack the visibility substantially. Hence arcade should have been an option of extension of your services and visibility rather than core and sole functional premises. You should have invested part of amount recieved from partners into aesthetics development at same outlet and part of that should have been invested in your services improvement aspect. Also, business lacked the important aspect of having a common mission among all the three partners, because of varying operating philosophies, at a very critical time...
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...11 ANALYTICAL PROCEDURES—RATIO ANALYSIS FORM The auditor can use this form to document the performance and evaluation of ratio analysis in connection with analytical procedures performed in an audit. The form is only a guide and is not a substitute for professional judgment. The form may be modified by adding or omitting certain ratio analysis. CLIENT NAME: | Pinnacle Manufacturing Company | DATE OF FINANCIAL STATEMENTS: | Year Ended December 31 of 2007, 2008, 2009 | LIQUIDITY RATIOS 2007 | 2008 | 2009 | 1. Current ratio = | | | | Current Assets | | | | Current Liabilities | 2.20 | 2.06 | 1.72 | Comments: A liquidity ratio is the readiness of assets to be converted to cash. A current ratio of 2 indicates that the company has twice as many current assets available as current liabilities. Comparing a company’s obligations that will shortly become due with the company’s cash and other assets that, by definition, are expected to shortly be converted to cash, the analysis offers some indication as to ability to pay those debts. Comparing a company’s liquid assets with its short-term obligations, we can obtain a general idea of the firm’s ability to pay its short-term debts as they come due. | 2007 | 2008 | 2009 | 2. Quick or acid test ratio = | | | | Current Assets - Inventory | | | | Current Liabilities | 0.86 | 0.79 | 0.64 | Comments: The current assets are highly...
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...McDonald’s (in 2013): How to Win Again By MGT 4800: Strategic Management March 27, 2016 Table of Contents Analysis: Focus on External and/or Internal Environments 3 External Environment Trends 3 Position in Relation to Competition 3 Formulation: Focus on Business, Corporate, and/or Global Strategy 4 Business Level Strategy 4 International Strategy 5 Implementation: Focus on Recommendations and How to Execute Them 5 Organizational Structure 5 What Role Does Thompson Need to Play? 6 References 7 Analysis: Focus on External and/or Internal Environments External Environment Trends There are several trends that could have a negative impact on the ability that McDonald’s has to sustain their competitive advantage. The first is that consumer spending habits have changed due to the economic recession. People have less discretionary funds, which inevitably leads to more careful consideration of what they buy. In addition, people are eating out less due to the 8% unemployment rate as well as the 15% underemployed rate (Rothaermel, 2015, p. 534). The second trend is rising health concerns. With consumer preferences switching from beef over to other lean meats, the gluten-free movement, and the Patient Protection and Affordable Care Act which stipulates that all nutritional information must be displayed on the food menus; it is difficult for a fast food restaurant to continue to grow without making changes (Rothaermel, 2015, p. 534). Finally, the increasing supply...
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...STRAYER UNIVERSITY | Business diversifications of Boeing and Ford Motors | Victor Adejayan | | PROFESSOR WALTER WILLIAM DINGMAN | BUS 508 | A qualitative analysis of the diversification efforts of Boeing and Ford Motors. | Diversification:- Diversification is the process of entering new business markets with new products. Such efforts may be undertaken either through acquisitions or through extension of the company's existing capabilities and resources. The diversification process is an essential component in the long range growth and success of most thriving companies, for it reflects the fundamental reality of changing consumer tastes and evolving business opportunity. But the act of diversifying requires significant outlays of time and resources, making it a process that can make or break a company. Small business owners, then, should carefully study diversification options—and their own fundamental strengths—before proceeding (Gale Encyclopedia of Small Business). Barron’s Marketing Dictionary defines Diversification as; Corporate growth strategy whereby a business builds its total sales by acquiring or establishing other businesses that are not directly related to the company's present product or market (Barron's Business Dictionary). Barron also identified the three major diversification strategies as the following; Concentric diversification, where the new business produces products that are technically similar to the company's current...
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...Leadership is defined as the ability to influence a group toward the achievement of a vision or set of goals. (Robbins and Judge 2005). Leaders have the task of planning, organizing, solving problems, motivating, supporting, delegating, rewarding, networking and rewarding their employees or group members, among numerous other tasks. Consequently it can be said that the performance and effectiveness of an organization is directly related and depends upon the leadership that it has. With reference to Fiedler’s Contingency Model/ Theory, Hersey and Blanchard Situational Leadership Theory, Path-Goal theory and Participative Leadership Model, the validity of this statement shall be proven. The very first complete contingency model for leadership was developed by Fred Fiedler. The Fiedler contingency model proposes that successful group performance depends on the proper coherence between the leader’s style and the extent to which the situation gives the leader control. (Robbins and Judge 2005) In Fielder’s contingency model, first the leadership style of the individual needs to be identified through a special questionnaire referred to as the “least preferred co-worker questionnaire”. This evaluates whether the person is relationship oriented or task oriented. The next step is matching the leader to the situation using leader-member relations, task structure or position power variables. Finally we evaluate. Fiedler concluded that task-oriented leaders perform better in situations...
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...Group Members: Eitan Balloul Bitoodeep Singh Mahammad S. Siddiqi Waqas Yaqoob Ducati Case Analysis Overview Ducati was founded on July 24, 1926 in Bologna, Italy by the Ducati family and a group of investors. Ducati was initially named Società Radio Brevetti Ducati because the founder’s intentions were to manufacture electronics and to penetrate that industry. In fact Ducati’s first task was to produce a component for the growing field of radio transmission. The first product Ducati manufactured was called Manens and it functioned as a condenser for radio equipment. The product was very successful throughout the world and in result it allowed the company to expand and win international respect and prestige. (Ducati's History, 2012) The first motorcycle Ducati manufactured was after the Second World War- the "Il - Cucciolo". It turned out to be a big success and that marked the beginning of a new era for Ducati. During the 1950's Ducati introduced, developed and manufactured powerful motorcycles that were reliable and technically advanced. Ducati’s success was interpreted to rapid growth and reputation in the industry. (Gavetti, 2002) In the process to evaluate Ducati, it is essential to understand the aspects from the management perspective. During the 1980's and early 90's Ducati changed their management constantly which resulted a lack of overall strategic direction. Ducati was on the verge of bankruptcy before Federico Minoli took the reins in 1996...
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...Strategic Report for Harley Davidson April 4, 2006 1 Table of Contents Executive Summary ………………………………………………………… 3 Company History ……………………………………………………………. 4 Five Forces Analysis Internal Rivalry ………………………………………………………. 8 Entry …………………………………………………………………….. 9 Substitutes and Complements …………………………………. 9 Supplier and Buyer Power ………………………………………. 10 Financial Analysis ………………………………………………………….. 11 Strategic Issues and Recommendations ………………………….. 17 2 Executive Summary Harley Davidson remains a financially strong and stable company. During 2005 the company reported the 19th consecutive year of record revenues and record earnings. While Harley Davidson’s growth has slowed over the past several years the decline in growth rates are primarily attributable to a maturing market, which results in lower growth rates for all member of the motorcycle sub-industry. During 2006 Standard and Poor’s predicts that the motorcycle sub-industry will grow between 1% and 3%, a much slower rate than the double digit annual gains the sector saw throughout the 90’s and late 80’s. Despite the company’s strong financial outlook the stock price has not been performing well over the past year. The stock price fell dramatically in April 2005 when Harley Davidson management lowered guidance of new motorcycle shipments to the network of independent dealers. Wall Street analysts proceeded to predict doom for the company as it appeared that it would be unable to continue its...
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...discovered that led to the recalls. Sticky gas pedals, pedal entrapment, and software glitches that affected braking in some models were some of the problem areas (Trudell, 2014). Over time, the safety related recalls continued growing. In fact, by May 2011, the automaker had recalled close to 20 million vehicles (Trudell, 2014). Naturally, the numerous recalls and lawsuits that ensued threatened to damage Toyota’s image; thus, to rectify this the company should organize its decision processes more efficiently. Keywords: organizational change, recall, total quality management Introduction For decades, Toyota set the standard for quality and reliability in the automotive industry. In fact, the Toyota brand has been touted as the pinnacle of automotive excellence by rating industries and industry consultants (Piotrowski & Gray, 2010). The automaker founded in 1937, has strived over the years to manufacture superior quality automobiles (Rajasekera, 2013). Toyota has built a global reputation for engineering affordable, quality vehicles, capitalizing on the principles of Just-In-Time (JIT), the Total Production System (TPS), and the Japanese concept of Kaizen, or continuous improvement (Rajasekera, 2013). Known...
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...Coca-Cola Company Case Study GB 518 Financial Accounting Principles and Analysis Kaplan University SUMMARY Accounting is an important aspect of business because it is the foundation that offers support to management for planning, and controlling activities as well as decisions. When an organization is doing business they need a way to keep score of operational financial activities. The purpose of my research paper is to discuss the details of my interview with an accountant at Coca-Cola Company, Atlanta headquarters. Mr. Joe Angus has worked with the company for twelve years and sat down with me for a 25 minutes interview in his office to eagerly share the accounting practices of the company, and the operating activities within the business that generates revenue and move the business forward. Company Overview The Coca-Cola Company is the largest beverage company in the world that provides consumers with more than 500 sparkling and still brands of refreshing drinks. While Coca-Cola is the most valued brand in the company’s portfolio, it features 15 billion dollar brands including Diet Coke, Fanta, Sprite, Coca-Cola Zero, vitamin water, PowerAde, Minute Maid, Simply, Georgia and Del Valle. Globally, Coca-Cola Company is the number one provider of sparkling beverages, ready-to-drink coffees, juices, and juice drinks. Throughout the world’s largest beverage distribution system, consumers in more than 200 countries enjoy Coca-Cola Company beverages at a rate of more...
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...ELITES – THE GEN Y TRANSFORMERS Nature abhors vacuum, and so do homo-sapiens. The latter, in its unrelenting quest, goes a step further and evolves to improvise, adapt and overcome. Given the nature of how non-conformist descended from the same ancestor, we’re all the same; and yet we’re so different. At the very outset, the elite, since time immemorial, has enjoyed a stellar reputation by virtue of their elevated status, which was, is and continues to be shaped by their social status; political background; cultural hegemony and/or economical might. There is no doubt in mentioning that the elite has toiled hard, slogged painstakingly and worked tirelessly to mount on the pinnacle in every walk of life. However, the existential question still looms large; to what extent the ‘elite’ has contributed and is contributing in the national and global discourse. The answer may well be fraught with complications, and full of labyrinth cross-questions, but this is what this essay seeks to do. I live in India, a developing economy whose population is over 1.2 billion. Though it is the seventh largest country in terms of area it houses the maximum number of people second to China. If we are optimistic, then in one way we have the second largest manpower in the world and we can use it to do wonders. Infact the steady progress which India has been doing in the past has made the developed nations be wary and cautious of India’s achievements. But, on the contrary, if we look at the real...
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...EXMBA 2012-14 Sem-2 Economic Environment of Business Faculty : Ms Simirit Kaur Project Report on Major obstacles to India s growth Submitted By: Harish Kumar (S-25) Manoj Paweria (S-36) Kumar Sikander (S-76) ACKNOWLEDGEMENT We owe a great many thanks to a great many people who helped and supported me during assignment . Our deepest thanks to professor, Ms. Simrit Kaur for assisting us at every stage of this project from the objectives, techniques and analysis to fine-tuning our entire findings. We owe a great many thanks to a great many people who helped and supported us during field assignment . We also extend our heartfelt thanks to our family and well wishers. 2 CONTENTS ~Acknowledgements~ _________________________________ 2 ~Objectives of this project~ ____________________________ 4 ~ Brief detail about factor effecting India s growth ~ ________ 5 ~ Q1 - Infrastructure Shortages effects ~ __________________ 6 ~ Key Initiatives / Information ~ _________________________ 6 ~ Q-2 - Large Fiscal Deficit ~ ___________________________ 10 ~ The Indian scenario ~ _______________________________ 12 ~ Bibliography ~ _____________________________________ 16 3 ~Objectives of this project~ India s economy has grown very rapidly in recent years. Since 1991 it has been among the top 10% of the world s countries in terms of economic growth. The primary challenge for India is to sustain this growth while spreading its benefits more widely. This requires continuous effort as international...
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