...countries around the world. As globalization increases everyday, many countries have created agreements to reduce barriers such as tariffs, export fees, and the reduction of restrictions on the movement of capital and investment. In 1994, the North American Free Trade agreement was created to remove most barriers to trade and invest between the United states, Mexico and Canada. Mexico has become the United States’ second-largest export market and third-largest trading partner due to demographic and geographic factors. Monterrey, the third largest city in Mexico and base of many multinational corporations, has taken advantage of this agreement to expand its businesses. This is the case of Grupo ALFA, leader in the production of processed meats and cheese and one of the most important telecommunications service companies in Mexico. This company acquired Bar-S Foods Co. leader in the U.S. packaged meat business to expand their market and generate additional profits. According to Armando Garza Sada, ALFA’s Chairman of the Board: “This is an important milestone in Sigma´s growth strategy. With this acquisition, Sigma will become a meaningful player in the...
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... Topics/Case Descriptions Measuring Product Costs Case: Seligram, Inc.: Electronic Testing Operations Case Description: Explores the obsolescence of a cost system when technology changes. In particular, it asks students to increase the number of cost centers and allocation bases. The firm moves from a one-center, direct labor-hour system to a three-center, direct labor-hour and machine-hour systems. In addition, the case demonstrates how cost systems can induce subtle and not so subtle shifts in the strategy of the firm. In particular, we see how certain businesses are made to look inappropriately attractive or unattractive. Cost Behavior, Capacity Analysis and the Downward Demand Spiral Case: Bridgeton Industries: Automotive Component & Fabrication Plant Case Description: Bridgeton Industries was experiencing reduced sales. To become more competitive it introduced a classification procedure for products based upon their productivity and other factors. Products were classified into three groups: world class, potentially world class, and non-world class. The firm outsources the non-world class products. This outsourcing causes the costs on the remaining products to increase because some fixed costs associated with the outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass...
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... Topics/Case Descriptions Measuring Product Costs Case: Seligram, Inc.: Electronic Testing Operations Case Description: Explores the obsolescence of a cost system when technology changes. In particular, it asks students to increase the number of cost centers and allocation bases. The firm moves from a one-center, direct labor-hour system to a three-center, direct labor-hour and machine-hour systems. In addition, the case demonstrates how cost systems can induce subtle and not so subtle shifts in the strategy of the firm. In particular, we see how certain businesses are made to look inappropriately attractive or unattractive. Cost Behavior, Capacity Analysis and the Downward Demand Spiral Case: Bridgeton Industries: Automotive Component & Fabrication Plant Case Description: Bridgeton Industries was experiencing reduced sales. To become more competitive it introduced a classification procedure for products based upon their productivity and other factors. Products were classified into three groups: world class, potentially world class, and non-world class. The firm outsources the non-world class products. This outsourcing causes the costs on the remaining products to increase because some fixed costs associated with the outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass...
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... Topics/Case Descriptions Measuring Product Costs Case: Seligram, Inc.: Electronic Testing Operations Case Description: Explores the obsolescence of a cost system when technology changes. In particular, it asks students to increase the number of cost centers and allocation bases. The firm moves from a one-center, direct labor-hour system to a three-center, direct labor-hour and machine-hour systems. In addition, the case demonstrates how cost systems can induce subtle and not so subtle shifts in the strategy of the firm. In particular, we see how certain businesses are made to look inappropriately attractive or unattractive. Cost Behavior, Capacity Analysis and the Downward Demand Spiral Case: Bridgeton Industries: Automotive Component & Fabrication Plant Case Description: Bridgeton Industries was experiencing reduced sales. To become more competitive it introduced a classification procedure for products based upon their productivity and other factors. Products were classified into three groups: world class, potentially world class, and non-world class. The firm outsources the non-world class products. This outsourcing causes the costs on the remaining products to increase because some fixed costs associated with the outsourced products did not go away. These residual costs caused more products to become non-world class and hence candidates for outsourcing. The firm has entered the death spiral. Activity-Based Costing Case: Destin Brass...
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...health of the economy. In the mid 1970's AT&T ,a provider of Local and long distance telephone service, had either destroyed or bought most of the company's competition, becoming the country's largest and most influential telecommunications company (AT&T Breakup, January 2015). Thus creating a government regulated monopoly. The FCC was created to monitor the actions of AT&T. In 1974 The Antitrust Division of the U.S. Department of Justice sued AT&T. If the FCC had not stepped in and demanded more competition we may not have the likes of Sprint, Verizon, and T-mobile in today's marketplace, making it more expensive for the consumer. LEARNING ACTIVITY 2 Determining ethical boundaries can sometimes be a challenge, since ethics is both based on individual beliefs as well as societal standards. Would receiving a holiday gift from a client be considered bribery? Would it be wrong for a person in a position of power, like a mayor, to ask a bank manager friend for a personal loan? On a more practical level, is it unethical for a cashier to provide a coupon to a customer who did not have one at the register? Is it unethical for someone to complete a timesheet recording eight hours of work, when they left 45 minutes early? Select a case study of an ethical dilemma in the workplace. You may use an example from this week’s readings, your professional experience, or a website. Please answer the following questions: 1. What is the ethical dilemma? Describe...
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...SAIL'S VOLUNTARY RETIREMENT SCHEME Case Code-HROB002 Published-2003 INTRODUCTION At a meeting of the board of directors in June 1999, the CEOs of Steel Authority of India's (SAIL) four plants - V. Gujral (Bhilai), S. B. Singh (Durgapur), B.K. Singh (Bokaro), and A.K. Singh (Rourkela) made their usual presentations on their performance projections. One after the other, they got up to describe how these units were going to post huge losses, once again, in the first quarter[1] of 1999-2000. After incurring a huge loss of Rs 15.74 billion in the financial year 1998-99 (the first in the last 12 years), the morale in the company was extremely low. The joke at SAIL's headquarters in Delhi was that the company's fortunes would change only if a VRS was offered to its CEOs - not just the workers. BACKGROUND NOTE |SAIL was the world's 10th largest and India's largest steel manufacturer with a 33% share in the domestic market. In |[pic][pi| |the financial year 1999-2000, the company generated revenues of Rs. 162.5 billion and incurred a net loss of Rs 17.2 |c] | |billion. Yet, as on February 23, 2001, SAIL had a market valuation of just Rs. 340.8 billion, a meager amount | | |considering the fact that the company owned four integrated and two special steel plants. | | |SAIL was formed in 1973 as a holding company of the government owned steel and associated input companies. In 1978, the| | |subsidiary companies...
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...An Opportunity to join SAIL as Management Trainee (Technical) or Management Trainee (Administration ) SAIL, a Maharatna Company, is the leading steel-making company in India with a turnover of Rs. 49,350 crore (FY 12-13). SAIL is in the process of modernizing and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market. To man front-line executive positions in its Plant/Units/Mines, SAIL invites applications for 650 posts of Management Trainee (Technical) and 60 posts of Management Trainee (Administration) in E-1 grade from young, energetic, result oriented and promising talent in the country. ELIGIBILITY: Upper Age : 30 years as on 1.1.2014, i.e., not born earlier than 1.1.1984 Minimum Qualification : Management Trainee (Technical) Degree in Engineering (full time) with 65% marks (average of all semesters), in the disciplines of Mechanical, Electrical, Metallurgy, Electronics, Instrumentation, Ceramics, Civil, Computer Science (IT), Mining or Chemical Engineering. For Computer Science discipline, MCA (3 years full time) with 65% marks ( average of all semesters) are also eligible. Management For HR, Marketing and Materials : Bachelors’ degree in any discipline with 60% Trainee marks ( average of all subjects) with at least two years full time MBA/PG Diploma in (Administration) Management with 60% marks in Human Resources/ Personnel Management & Industrial Relations/ Personnel Management/ Masters...
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...SAIL (Management Trainee (Administration)) Job Description An Opportunity to join SAIL as Management Trainee (Technical) | or Management Trainee (Administration ) SAIL, a Maharatna Company, is the leading steel-making company in India with a turnover of Rs. 49,350 crore (FY 12-13). SAIL is in the process of modernizing and expanding its production units, raw material resources and other facilities to maintain its dominant position in the Indian steel market. To man front-line executive positions in its Plant/Units/Mines, SAIL invites applications for 650 posts of Management Trainee (Technical) and 60 posts of Management Trainee (Administration) in E-1 grade from young, energetic, result oriented and promising talent in the country. ELIGIBILITY: Upper Age : 30 years as on 1.1.2014, i.e., not born earlier than 1.1.1984 Minimum Qualification : Management Trainee (Technical) | Degree in Engineering (full time) with 65% marks (average of all semesters), in the disciplines of Mechanical, Electrical, Metallurgy, Electronics, Instrumentation, Ceramics, Civil, Computer Science (IT), Mining or Chemical Engineering. For Computer Science discipline, MCA (3 years full time) with 65% marks ( average of all semesters) are also eligible. | Management Trainee (Administration) | For HR, Marketing and Materials : Bachelors’ degree in any discipline with 60% marks ( average of all subjects) with at least two years full time MBA/PG Diploma in Management with 60% marks in Human...
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...Special Advertising Section 2008 Abu Dhabi Plan 2030 Innovation and Sustainable Development Abu Dhabi is the capital of the seven-member United Arab Emirates and its largest and wealthiest member. It has enormous reserves of oil and natural gas, as well as a pristine and beautiful natural environment encompassing sea, islands, coastline and desert. The Plan Abu Dhabi 2030 details how Abu Dhabi will succeed in managing its growth in a way that is good for business, for residents and for the environment. And by doing this, Abu Dhabi will achieve its goal of becoming a global capital city, worldrenowned for its cultural, tourism and business offerings. Special Advertising Section 2008 Abu Dhabi 3 Abu Dhabi: Creating a Modern Metropolis isit Abu Dhabi, even for a short time, and the quiet confidence of this dynamic capital city is quickly apparent. It’s a confidence that prioritizes planning and getting things right from the start. What’s the source of this confidence? Perhaps it’s the $350 billion in infrastructure, real estate and industrial projects already in progress for the city. Maybe it stems from the Persian Gulf emirate’s enormous oil and gas reserves and growing human capital base. It could also be the awareness that most elements of the city’s future growth have already been studied and planned out. But it is likely a combination of all these factors. This city’s ambitious and deliberate approach to growth was behind the creation of “Plan Abu Dhabi 2030:...
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...Future outlook Contact For Information A report by KPMG for IBEF 2 4 9 12 13 17 18 Market Overview The metal industry is a key sector in the Indian economy as it meets the requirements of a wide range of important industries such as engineering, electrical and electronics, infrastructure, automobile and automobile components, packaging etc. The metal industry consists of two major groups: ferrous metals and non-ferrous metals. Non-ferrous metals, which include aluminium, copper, zinc, lead, nickel and tin, are used to make alloys, castings, forgings, extrusions, wires, cables, pipes, etc., and find their application in a number of sectors such as agriculture, infrastructure facilities like power plants, automobiles, railways, telecommunications, building and construction and in engineering and chemical plants. There are significant reserves of non-ferrous metal ores in India. India is rich in bauxite (aluminium ore) and has grades of zinc, lead and copper reserves. Copper, lead and zinc are also imported as scrap or concentrates to be processed by secondary/custom smelters. Nickel and tin are also imported by India. Ferrous metals primarily consist of iron and different varieties of steel. Indian steel industry has shown strong performance in the recent past in terms of production, capacity utilisation, exports and consumption. India is now a major competitor among steel producers in the world. The sSteel industry contributes 1.3 per cent to India’s GDP and accounts for 10...
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...IMPACT OF INTELLECTUAL CAPITAL ON FINANCIAL PERFORMANCE - AN EMPERICAL STUDY ON THE INDIAN BANKING SECTOR. Abstract: Purpose: Present study makes an attempt to examine the impact of intellectual capital on financial performance of firms based on a sample consisting of 12 Indian banking companies which constituted the CNX Banking index of NSE during 2012-13. More specifically, it seeks to examine the impact of the IC represented by VAIC and the value added, on corporate financial performance measured by return on assets, earnings per share, and return on equity. Design/methodology/approach: In this study VAIC™ is considered as a key valuation model for measuring the IC performance of Indian Banking Companies. Capital employed, human capital and structural capital are used as components of intellectual capital and return on assets (ROA), return on equity (ROE) and Earning Per Share (EPS) indexes are used as criteria of financial performance. The value of three performance measures i.e. Return on Equity (ROE), Return on Assets (ROA), and Earning Per Share (EPS) are obtained from the annual reports of respective banks, whereas the values of VAIC and Value added are computed using appropriate formula and the ranking is made. The companies having highest value is ranked 1, next highest is ranked as 2, and so on. Next, a bar chart is prepared using the computed values of HCE, SCE, CEE representing various components of intellectual capital efficiency which constitute the VAIC...
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...A Survey of Electronic Cash, Electronic Banking and Internet Gaming 1 2 TABLE OF CONTENTS PREFACE ..........................................................................................................................5 FOREWORD ..........................................................................................................................7 INTRODUCTION ............................................................................................................... 11 ELECTRONIC CASH .......................................................................................................... 15 INTRODUCTION ................................................................................................... SMART CARDS/STORED VALUE CARDS........................................................ The Basics ..................................................................................................... Stored-Value Card Issuers ............................................................................ COMPUTER E-CASH ............................................................................................ The Basics ..................................................................................................... E-Cash Issuers ............................................................................................... REGULATORY POLICY ......................................................................................... SUMMARY OF ELECTRONIC CASH...
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...International trade is the exchange of capital, goods, and services across international borders or territories.[1] In most countries, such trade represents a significant share of gross domestic product (GDP). While international trade has been present throughout much of history (see Silk Road, Amber Road), its economic, social, and political importance has been on the rise in recent centuries. Industrialization, advanced transportation, globalization, multinational corporations, and outsourcing are all having a major impact on the international trade system. Increasing international trade is crucial to the continuance of globalization. Without international trade, nations would be limited to the goods and services produced within their own borders. International trade is, in principle, not different from domestic trade as the motivation and the behavior of parties involved in a trade do not change fundamentally regardless of whether trade is across a border or not. The main difference is that international trade is typically more costly than domestic trade. The reason is that a border typically imposes additional costs such as tariffs, time costs due to border delays and costs associated with country differences such as language, the legal system or culture. Another difference between domestic and international trade is that factors of production such as capital and labor are typically more mobile within a country than across countries. Thus international trade is mostly restricted...
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...1. Ramada Demonstrates Its Personal Best In 1996 the latest D. K. Shifflet survey of customer satisfaction in the hospitality industry showed mid-tier hotels continuing their downward trend in perceived customer service, reflected by more and more respondents giving ratings on customer service in the 7 or lower range on Shifflet’s 10-point scale. While Ramada’s satisfaction rates held steady, “It was only a matter of time before we experienced the problem,” says Tim Pigsley, director of operations for Ramada Franchise Systems (RFS). Shifflet research highlighted three critical areas for study that could influence customer satisfaction: hiring (finding the best people to deliver Ramada’s brand of exceptional service), training (giving employees the tools to deliver exceptional service), and motivation (providing the impetus for Ramada employees to deliver exceptional service). Unlike some of its competitors, RFS is a totally franchised system. In such an environment, not only must headquarters contend with the variable human factor of all service operations, but additionally, RFS must contend with differing “exceptional service” standards among owners of the nearly 900 Ramada properties. “Due to the franchised system of property management, we needed for each management team and each employee to be committed to the change—to buy in to any new program—whatever shape it would take,” explains Pigsley. “We wanted to learn and borrow from the best so we started with Disney. In...
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...5 Cost Allocation and Activity-Based Costing Systems L E A R N I N G O B J E C T I V E S After studying this chapter, you will be able to 1. Explain the major purposes for allocating costs. 2. Explain the relationship between activities, resources, costs, and cost drivers. 3. Use recommended guidelines to charge the variable and fixed costs of service departments to other organizational units. 4. Identify methods for allocating the central costs of an organization. 5. Use the direct, step-down, and reciprocal allocation methods to allocate service department costs to user departments. 6. Describe the general approach to allocating costs to products or services. 7. Use the physical units and relative-sales-value methods to allocate joint costs to products. 8. Use activity-based costing to allocate costs to products or services. 9. Identify the steps involved in the design and implementation of activity-based costing systems. 10. Calculate activity-based costs for cost objects. 11. Explain why activity-based costing systems are being adopted. 12. Explain how just-in-time systems can reduce non-value-added activities Cost Accounting System. The techniques used to determine the cost of a product or service by collecting and classifying costs and assigning them to cost objects. A university’s computer is used for teaching and for government-funded research. How much of its cost should be assigned to each task? A city creates a special police unit to investigate a series...
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