...Strategic Management Lashanda Bullock BUS:341 Strategic Management As of lately, there has been a tremendous growth in the level of competition in almost all industries. Companies are continually trying to outdo their rivals by producing new products and services in the market. However, the market is almost saturated by new products because most of them are very similar and others slightly differentiated. Therefore, to survive in this competition, different companies have decided to develop strategic management plans that would ensure sustainability and relevance in the product market. As such, this paper dwells on the strategic management plan adapted by Amtrak, an American Railroad Passenger Corporation, which is partly government funded. The corporation is operated for profit making purposes and is a public company owned and funded by both the American government and the pre-existing passenger rail companies in the country. The strategic management plan was adopted in 2011 with the aim expanding safe to safer by reducing risk exposure to both the customers and the workers. It also aimed at reorganizing the corporation’s operations so as to improve responsiveness to customer’s needs. Also, it aimed at developing total rewards as well as integrated talent management strategy (Amtrak, 2014). The company also wanted to improve the financial reporting and budgeting process and also launch a vigorous enterprise risk management system among other objectives. To achieve...
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...The most important accounting statements not just for Ryanair and EasyJet but for all companies are profit and loss statements. Those statements are showing to the companies how many sales they have generated over a period of time and what expenses they have incurred. That’s why they need to know what are their direct and indirect costs and also fixed and variable cost and also what they mean and I will be talking about those in my essay. The direct and indirect cost are important as the companies have to know whether the cost item can be attributed to a single product or service, sometimes to a department. Direct cost can be linked to a particular product or service. However the indirect cost cannot be linked with a particular product or service and they are usually called general expenses or overheads. Analysing cost this way can be useful for detailed product costing or for control and accountability. For example in Easy Jest and Ryanair costs such as staff cost or rental of the aircraft will be the direct cost as they already know what money they will have to spent on those. However indirect cost will be for example fuel prices as they will not know the price of fuel every month as the fuel prices are changing all the time. Indirect cost must be apportioned to product, services or departments on a appropriate basis and this gives raise to absorption costing. However, the larger the proportion of indirect cost in a business, the less useful this type of analysis can be...
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