...OMISCh.1 Operations MGMT = mgmt of systems that create good or provide services. 3 main functions = Operations, Finance, Marketing Operations = creation of goods/services Finance = Providing funds ($) for operations/marketing Marketing = Promoting and/or selling goods and services POM decisions characterized by tools Scope of POM = System desing and system operation System desigin = before production can begin (layout, design) System operation = production itself (scheduling) Classify production systems = Volume and variety Volume = dictated by number of production and may vary Variety = examples (tires, tv’s, eyeglasses, dental work) Recent trends = managers must pay attention and keep up with technology Agility = ability to respond quickly to demands and opportunities. Systems approach = “whole is greater than the sum of the individual parts” Pareto principle (80-20 Rule) = few (20%) items, factors account for the share (80%) of the problems. All things not equally important, identify key factors. Ch 2 7 ways to be competitive: Price, quality, special features, flexability, delivery time, service, location. Mission statement: a clear statement of companies purpose Strategy: need to be competitive and satisfy customers. Strategy Formulation: Distinctive competencies, environmental scanning Distic competencies: special abilities that give comp edge. (ex. Price, location) Environment scanning: consider events and trends that present threats and opportunities...
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...AUDIT RISK MODEL Audit Risk (AR): risk that auditor will opine (render an opinion) with an unqualified opinion when unknown to auditor, FS are materially misstated (ultimate risk) Inherent Risk (IR): risk that errors (or misstatements or deviations) will occur," clientcontrolled Control Risk (CR): risk that client's internal control system will fail to prevent/ detect/correct errors ... clientcontrolled Detection Risk (DRI_ risk that auditor's procedures will fail to detect errors ... auditorcontrolled AR IR * CR * OR Audit risk = inherent risk * control risk * detection risk Audit risk: always set priority at a low level (.0 1, 05, 10) Inherent risk: controlled by client ... function of type of business, degree of liquidity, complexity Control risk: controlled by client ... relates to effectiveness of client's control system in preventing, detecting, and correcting errors. Detection risk: controlled by auditor ... function of nature, timing, and extent of audit procedures applied ... allowable or acceptable Solution Set: (1) Detection risk = audit risk / (inherent risk * control risk) (2) Detection risk low ... the more evidence you have to collect (3) Detection risk high ... the less evidence you have to collect Audit Risk: risk that auditor issues unqualified opinion when statements are materially misstated, audit risk and detection risk exactly related. IR/CR and detection risk inversely...
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...MGMT 215 9/15/15 Reflection 2 When creating a new product or an idea, entrepreneurs must consider ventures. With a creation of a new product there are always risks involved. Once someone decides to build a new venture he should lay out all the risk factors that may be detrimental. Personally, I would have a clear written statement to show my vision for stakeholders along with future customers in order to gain trust once I decide to build an entrepreneurial venture. To gain further trust and respect I would look around for investors for credibility. By doing this customers gain extra assurance since the majority are hesitant when hearing about a new product. If the product is supported by a solid financial banking it is more admirable. On the mission statement I would emphasize the authenticity of my product as well as its durability. Furthermore, ethics is one of the most important factors in good business. I would stress the importance of reliability in order to build a strong group that truly supports my venture. I believe that good business starts from forming good relationships with partners and customers. To do so, I would have to be as truthful about myself as possible. I do think that all businesses tend to bend some rules, whether in a moderate or immoderate amounts. However, I want to be as truthful as I could be. As mentioned, trust is vital in business. If you lose trust from the stakeholders your venture would not be supported, which would ultimately lead to a...
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...globalisation and explain the level of risk inherent in each. Introductory paragraph * Definition of global business: ‘The buying and selling of goods and services by people from different countries’ (Williams & McWilliams 2010, p.151). * Phase model of globalisation- Exporting, cooperative contracts, strategic alliances, wholly owned affiliates. * Purpose: To outline the level of risk inherent in each phase model of globalisation. Paragraph 2 Exporting Risk: * Trade barriers. * Problems with local marketing agents. * High costs of transportation (Schultz and Speiser 2003, pp.3). * Lack of certain knowledge and experience. * Uncertainty effects (Belu and Caragin 2008, pp.88). Paragraph 3 Cooperative contracts (Licensing and franchising) Risk: - Licensing * Licensees may become future competitors. * Disclosure of accumulated knowledge and experience. * Lack of control over the qualities of products. * Interact with foreign market passively. * Organizing licensing operations require high costs of controlling, transfer and adaptation (Belu and Caragin 2008, pp.94). - Franchising * Other franchisees’ bad performance or unforeseen problems can bring a damaged, system-wide image. * High initial franchise fee, royalties and advertising fees (Belu and Caragin 2008, pp.97). * Loss control over technology (Schultz and Speiser 2003, pp.3). Paragraph 4 Strategic alliances Risk: * Inability to engage in global...
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...(75) | 183 | EPS (Bt) | 2.42 | 2.59 | 0.61 | 1.71 | EPS growth (%) | 19 | 7 | (77) | 183 | BV (Bt) | 10.1 | 16.6 | 15.6 | 16.4 | DPS (Bt) | 1.2 | 1.1 | 0.6 | 0.9 | P/E (x) | 10.2 | 9.6 | 41.0 | 14.5 | P/BV (x) | 2.5 | 1.5 | 1.6 | 1.5 | Yield (%) | 4.8 | 4.4 | 2.4 | 3.6 | ROE (%) | 24.0 | 15.6 | 3.9 | 10.4 | Category: | Rating | 1. Understandability | A | 2. (Value 1) Prospective Growth | B | 3. (Value 2) Capital Scarcity | A | 4. (Value 3) Volatility | B | 5. (Risk 1) Strategic Position | A | 6. (Risk 2) Leadership | A | 7. (Risk 3) Financial Strength | C | 8. (Risk 4) External Influences | A | 9. (Acid Test) Informed Buyers | | Category: | Rating | Rationale: | 1. Understandability- Do we understand the company well?- Familiarity w. management and industry- Results readily adjustable for 1x items- Visibility to market or operating changes- Understandable derivatives risks | | * In processing and manufacturing of cooked food...
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...Aryon Nekoi February 07, 2012 MGMT 1P52 5026273 For the duration of this course I was asked to create a portfolio of the stock market and try to collect the most money possible by the end of the term March 19th, 2012. At the moment, I am profiting a total of $336.50 as of February 06, 2012 when the stock market had closed. From the start of this assignment I have invested in a wide variety of companies ranging from airplane manufacturers to healthcare. I am currently invested in three companies including Luxottica, Bombardier, and Novartis. I had been investing in Research in Motion, however they proved too unstable to invest in at the moment. The reason’s that I have invested in these companies is fairly simple, to profit large amounts of money in a short period of time while minimizing the risk of losing the money I have already invested. In my opinion these are very low-risk stocks that generate a large amount of profit during the set time given. Luxottica is one of the world’s number one eyewear manufacturers. They focus on premium quality and style for all of their buyers. The reason I have chosen this company is mainly because my father is in the eyewear business. He owns the optical store The Vision Clinic. Through his guidance I had landed on investing in Luxottica because eyeglasses are always needed and therefore the stock would rise in price more frequently than not. Bombardier manufactures regional and business planes. Initially I had chosen Bombardier...
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...consider. Will the benefits outweigh the risks? Will the profits gained outweigh the cost? What risks are involved and to what extent can they be minimized or alleviated? Will the current staff be able to create and maintain a Web presence safely, securely and properly, will new staff need to be hired, or will the project need to be outsourced? What level of security is needed for the particular business? What types of communication should be available between the business and its suppliers and distributors and between the business and its customers, and just how much business should and can be conducted online? This paper hopes to clear up these questions and many others, and also help with the many concerns leading up to a business owners’ decision whether to establish a Web presence or not. The first thing that a business owner should take into account when considering establishing a Web presence is whether an E-Business is appropriate and feasible. What are some concerns a business should consider as it considers developing a Web presence? What are the risks of having a Web presence versus the risks of not having a Web presence? The risks associated with having a Web presence pertain mostly to security and privacy issues. Keeping customer and company information out of the hands of hackers and crackers, avoiding credit card fraud, malicious attacks by viruses and worms, along with many other threats, is paramount. These are risks that need to be considered when trying...
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...Obtaining the Resources to Pursue the Opportunity For your case write-up, please answer the following questions. Please be also prepared to discuss these questions in class: 1. What is the Organization Type of ICEDELIGHTS (the Franchisee)? Why? - PJ 2. Is the ICEDELIGHTS opportunity a good one? -Borg 3. What are the key risk elements?- Chuck 4. Did they pull together a good management team? -Borg 1) What is the Organization Type of ICEDELIGHTS (the Franchisee)? Why? a. Product/Service i. Their objective is to own a business and survive as entrepreneurs, nothing too extreme. They have projections, but no real formal strategic objectives besides make a profit. 1. They displayed formal projections and profit margins for the next 10 years, but no real plan of how they will go about it. 2. They have a plan of attack for investors: go after contacts of Mr. Rogers, but no real plan of how to convince them. ii. Leadership is craftsmen/technicians in the sense that they want to use their HBS experience in management, as well as their technical experience in Finance. 1. No promoter 2. No past industry experience or professional mgmt. a. ICEDELIGHTS will train them, though. iii. Family/Entrusted structure 1. They are all friends, all with a respect for each other. a. No one top dog, no charismatic leader among them, no force field around them b. Their relationship and company...
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...C** C** J* 9/14/15 MGMT 221 Part 1: 1) How can information technology support a company’s business processes and decision making and give it a competitive advantage? Give example to illustrate your answer. In an organization number of transactions occurs every day. It’s almost impossible to keep the record of these transactions manually. So in order to keep the systematic record of day to day transaction, considering the value of time, in the most accurate form, organizations use Information Technology. Use of information Technology has made a workplace more productive and scientific. During the entire business process from dealing with supplier to reaching a costumer, information technology plays a very important role to make things happen smoothly. Business decisions are based on the data’s and information provided to decision makers and information technology ensures the accuracy and reliability of the information collected. In this competitive business environment it’s very important that decisions taken are as per the scenario and in the favor of organization considering the competitors around so here we can see the direct impact of information technology in decision making. Through the use of information technology, data’s and information are to be collected and are to be supplied to all the sectors of organization as per the importance. Decision making department uses these data’s to evaluate the performance of organization and all the plans and policies are...
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...Running Head: FINANCIAL MANAGEMENT Financial Management MGMT 312 Financial Management Businesses must have a plan to succeed; if the original plan is not a success, there must be a few alternative plans available. First, the roles of a financial manager will be discussed. Second, a scenario was given to find a future value during a five year time frame and the results will be discussed. Finally, risk contracting will be evaluated including the various financial incentive structures and how they could be used to improve the efficiency of care in risk contracts. First, the roles of a financial manager will be discussed. As a manger, one is required for “effective risk management” (Farley, 2000). “More desirable options include growth, structuring incentives to reduce or eliminate unnecessary variation in resource use, and capturing information about why variations in resource use occur,” (Farley, 2000). Farley explains that larger organizations have more options than smaller businesses because it allows more room for risks (2000). A financial manager should be capable of strategic planning. Benoff mentions in 2000 that the strategic planning should consider, “a variety of market approaches before settling on a specific future market strategy.” Benoff (2000) strongly believes, “to account for the needs and perspectives of all stakeholders, therefore the strategic –planning...
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...DeVry University Keller Graduate School of Management Pomona, California The Challenger- Nasa’s Decision MAking Process By Briana Bass Brianacbass@gmail.com Leadership & Organization Behavior MGMT-591-20623 John Poore 2/19/2015 The Challenger- NASA’s Decision Making Process Introduction: I am researching the decision making process that allowed on space shuttle, called the Challenger to go up into space, but was destroyed upon take off. I will analyze the reasons why NASA allowed this aircraft to take off, and the reason why it should not have. I will also research the aftermath and how this huge error could have been avoided. The National Aeronautics and Space Administration was created on October 1, 1958 by the President of the United States and Congress. It was to provide research into the problems of flight within and outside the Earth’s atmosphere. The main reason NASA was invented was due to World War 2. The United States and the Soviet Union were engaged in a cold ward. During this time, space exploration become the one of the highest priority discussions. This became known as the space race. (American Psychological Association, 2011) The United States launched its first Earth satellite on January 31, 1958. It was called Explorer 1. Then the United States started several missions to the moon and other planets in 1950 and the 1960’s. It had 8,000 employees and an annual budget of $100 million. Nasa rapidly grew. They...
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...HAZARD* Karl S. Okamoto ** How do we prevent excessive risk taking in the financial markets? This Essay offers a strategy for regulating financial markets to better prevent the kind of disaster we saw during the Financial Crisis of 2008. By developing a model of risk-manager decisionmaking, this Essay illustrates how even “good people” acting in utterly rational and expected ways brought us into economic turmoil. The assertion of this Essay is that the root cause of the Financial Crisis was systemic moral hazard. Systemic moral hazard poses a unique challenge in crafting a regulatory response. The challenge lies in that the best response to systemic moral hazard is “predictive prevention.” It is inherently difficult to reward individuals for producing predictive prevention. Unsurprisingly, markets fail to produce it at optimal levels and thus cannot prevent systemic moral hazard and the kind of crises that ensue. The difficulty in valuing predictive prevention is seen when we model how risk managers make decisions regarding the prevention of excessive risk. The model reveals how the balance can be tipped in favor of risk taking that leads to systemic failure and broad social harm. The model also reveals how regulation might work to reset the balance to one that is superior for society. We can achieve optimal risktaking decisionmaking in two ways: (1) by requiring all asset managers in the market to put their own money at risk in their trading decisions; and (2) by requiring all...
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...Honeywell, Inc. and Integrated Risk Management Case Analysis Submitted to: Prof. A. Kanagaraj By Vivek Gupta Section C, 944 Executive Summary: Honeywell was a multibillion-dollar, International Corporation employing 53000 people and managing operations in 95 countries. It was the largest producer of control systems and products used to regulate heating and air conditioning in commercial buildings and of systems in avionics systems. Carrying out business in 95 countries firm faced a number of risks. Honeywell’s risk management activities were dispersed throughout the firm as shown in the table. Other risks were managed operationally. [pic] The committee voting for this new program depends on whether the anticipated savings of the program would be realized, and whether the coverage provided by the new contract would be adequate. The proposed plan is a first step in a firm wide integrated risk management program that would extend to cover all of Honeywell’s financial and operational risks, the finance committee’s decision would establish Honeywell’s risk management strategy for some years to come. Honeywell’s existing strategy was consistent with its risk management objective of minimizing earnings volatility and its cost of risk. The team wondered about the applicability of the relatively new concept of enterprise risk management, which is grouping many risks together into a portfolio of risks, rather than managing each risk separately. The team thought...
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...– Fraud for the Entity b. Misstatements arising from misappropriation of assets – Fraud against the Entity c. The overall process: i. Identify client fraud risk areas ii. Consider client anti-fraud programs and controls iii. Respond to results of the fraud risk assessment d. Responding to misstatements identified in the audit i. Effects, if due to fraud, likely immaterial ii. Effects, if due to fraud, could be material e. Detection and reporting responsibilities within the client organization – how do we respond to fraud internally f. Responsibilities for reporting fraud to outsiders – is the same criteria for reporting fraud externally as we had to do with illegal acts. g. Audit documentation responsibilities h. Typical fraud warning signs and red flags (AU 316.85) – they are arranged by 3 elements that typically exist in some kind of combination of fraud. AU 316.85 “Examples of Fraud Risk Factors. Separately presented are examples relating to the two types of fraud relevant to the auditor’s consideration – that is: 1. fraudulent financial reporting and 2. misappropriation of assets For each of these types of fraud, the risk factors are further classified based on the three conditions generally present when material misstatements due to fraud occur: ➢ Incentives/Pressures ➢ Opportunities ...
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...Betriebswirtschaftslehre | | |BWL 1 Betriebswirtschaftslehre | |ZF_Betriebswirtschaftslehre | | | |BWL1.doc | Volkswirtschaftslehre befasst sich mit 3 Grundfragen: (die gesamte Wirtschaft des Landes steht im Zentrum) 1. Welche Güter/Dienstleistungen sollen mit den beschränkten Ressourcen hergestellt werden? 2. Wie sollen die Ressourcen (Wissen, Kapital und Natur) eingesetzt werden? 3. Für wen sollen solche Güter/Dienstleistungen hergestellt werden? Betriebswirtschaftslehre (ein Einzelnes Unternehmen steht im Zentrum) ▪ BWL untersucht das Zustandekommen von unternehmerischen Entscheidungen über die Zielsetzung der Unternehmungen und Entscheidungen in den verschiedenen Funktionsbereichen (Marketing, Personal, Produktion) o Allgemeine BWL ▪ Technik (Methoden: RW, Versicherungen) ▪ Theorie ▪ Politik (Wie kann man das Unternehmen am besten rentabel machen?) o Spezielle BWL ▪ Funktionelle Betriebswirtschaftslehre (Welche Aufgaben haben die Unternehmen) ▪ Institutionelle Betriebswirtschaftslehre (Aussagen über die Branche) 2. Betriebswirtschaftliches Denken und Handeln Wirtschaft ▪ Alle Institutionen und Prozesse, die der Befriedigung menschlicher...
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