...by Cynthia McNeese mcneese_cynthia@bah.com Eduardo Alvarez alvarez_eduardo@bah.com Chris Disher disher_chris@bah.com No Place Left to Squeeze Rethinking IT Cost Management Strategies 1 No Place Left to Squeeze Rethinking IT Cost Management Strategies Current economic conditions are forcing companies to significantly rebase General & Administrative costs. For many organizations, the cost cutting in the IT function is expected to deliver 40% or more of overall savings. The problem is, many organizations are already struggling with budgets that are barely adequate to the demands being placed on their IT function. With no place else to squeeze, the traditional approaches to IT cost management aren’t effective anymore. It’s time for a new approach. Our recent experience indicates that managing the “demand” for IT services yields as much, if not more, benefit than traditional “supply” focused cost reduction programs. We are sure it comes as no surprise that current economic conditions are forcing companies to search for ways to reduce G&A costs—and that for many organizations the IT function is expected to deliver a large proportion of the anticipated savings. Our customers tell us that typically they are being asked to find 30%-40% or more of overall savings from cutting costs in their IT function. The problem is, many of our clients are already struggling with budgets that are barely adequate to performance demands being placed on their IT function. There...
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...similar under IFRS & GAAP. GAAP has a more detailed guidance for capital lease. They have dissimilarities for rules over sale-lease back. Telecom Italia should refer to IAS 17 for its lease reporting, while AT&T should refer to ASC 840 for its financial reporting. Capital lease is “finance lease” under IFRS. Compared to Telecom Italia, the capital lease of AT&T is not significant because of the strict rule for a lessor to claim a capital asset under GAAP. The accounting for the treatment of sale-lease back is slightly different. However, the two companies do not have much information about sale-lease back transactions. Pensions The primary difference between the GAAP and IFRS is the funding method for pension. U.S. GAAP requires the use of projected unit credit funding method, which matches the pension expense to periods of service performed by...
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...the 1995 liberalization of the mobile operators market in Europe, Omintel acquired the license to become the 2nd mobile GSM provider in Italy. Their competitor Telecom Italia Mobile (TIM), had a monopoly of a 4 million strong customer base. Due to its dominant position and its strong retailer presence TIM was able to keep its marketing costs low. TIM aimed their phones at high-end personal consumers and business users, marketing them as an exclusive accessory. Omnitel entered the Italian mobile market in 1995, launching a similar priced product to TIM, with “American” customer services values as their competitive advantage, They aimed to gain a large market share from TIM, but not to start a price war with them, due to TIM’s financial strength. Their perceived competitive advantage seemed to match the requirements of the current high-end Italian consumer and business market, who expected quality customer service in return for their monthly fees. The cornerstones of Omnitel’s customer service was polite customer service operators who could help customers with all their issues and reducing the waiting time to speak to an operator to near zero. In signing up only 180,000 customers in the first year, Omnitel’s strategy failed due to having a near identical product and pricing strategy to that of TIM and they were unable to differentiate...
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...What motivates Frank and how has that changed over the years? Frank seems to be a “natural entrepreneur”. By this I mean he has a natural talent and the vision to connect a market with a solution as well as being attuned to seeing possible great ideas which others might miss. His first venture took off while in college when he worked for himself installing car alarms and automatic auto remote starters. This shows he had a strong work ethic and motivation to succeed and manage his life. The first chance he had to | | | | | | |1. Entrepreneurial Motivation | | | |Frank Addante got his motivation to work from financing his college life in the first years. He worked on his own, sold and | |installed car alarms and automatic starters. From this time on he continued to earn money through ad-hoc jobs to make his way ...
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...Table of Contents Assignment – Part A 3 Section 1: 3 Section 2: 5 Assignment –Part B 7 Section 1: 7 Section 2: 8 References 10 Assignment – Part A Section 1 – Site Breakdown: The SCR website has been entered and reviewed with the following acknowledgement and understanding applicable to the corporate request conducted by Jesse: • The data library includes essential corporate information including personnel records within each subset identified below: o SCR Function and Organizations - This includes senior management, as well as existing groups with assigned personnel and, applicable objectives and missions associated with these groups. o SCR Training Records (2-months) - Shows training data with personnel contact information for past two month time period. o JAD Session Example - Outlines effective utilization and employment of JAD team members through correspondence and brainstorming of techniques and processes for efficiency honing. o Cost - Benefit Summary- Outlines potential impact associated with salaries, training, supplies and misc. in conjunction with earned revenue to establish baseline for potential profit achievements and ROI possibilities. o Sample of Questionnaire Results - Establishes sample questionnaire for students taking courses to include, top classes and applicable rating trends associated with classes achieved by instruction presenters...
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...Establishing a new technology company poses many challenges since the technology world is a very competitive industry. Steve Jobs and Stephen Wozniak founded the company in their garage in 1976. The technology available in 1976 to now has greatly changed. The company since inception has faced several business challenges to remain competitive in the technology sector. Challenges range from acquiring sufficient funding and capital to run a business, product development, finding new ways to satisfy customers, and maintaining strong relationships between management and employees. Today when Apple releases a new product that is well received by customers, Apple’s competitors may release similar versions of their product at cheaper prices or similar design with added features. Apple has many competitors including Dell, IBM, and Hewlett Packard. To stay on top of the technology industry is a constant struggle. In order to remain competitive you must develop new products or create new product features for existing products. Apple spends a large amount of money annually on research and development. Establishing a business also requires maintaining relationships with management and employees. During his first stint with Apple, Steve Jobs and CEO John Scully began to engage in a power struggle as sales decreased in 1984. As a result on May 24, 1985 John Scully removed Steve Jobs from his managerial duties as head of the Macintosh division. Steve Jobs later resigned and founded NeXT Inc...
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...EXPLANATION AND GUIDE |Form: |Sample Short Form Business Plan | |Purpose: |This is a sample short form business plan. It can be used as a way to introduce the company to | | |potential investors and lenders. It does not substitute for a longer, more complete plan. | | | | Sample Short Form Business Plan Picture Perfect, Inc. 900 Remington Road Philadelphia, PA |Phone: (215) 976-4000 |Fax: (215) 976-4001 | |E-mail: mpeterson@aol.com |Website: www.ppi.com | Business Description: Picture Perfect, Inc. (the “Company”) was founded by an experienced management team to develop and market new types of consumer products in the picture frame, photography products and photo album markets. The Company has applied for patents on several of its new innovative products. Industry and Market Description: The picture frame, photography products and photo album markets have annual sales in excess of $15 billion, expected to grow to $20 billion by 2001. The picture frame industry is dominated by three large players (Burnes, Fetco and...
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...The room was bathed in a mesmerizing night sky of green and blue, synchronizing with the sway of the vibrating bed. Still, “Tim’s” brow was furrowed as he repeated, “Why won’t we do that?” The classical music in the background was not enough to calm his echolalia. As I adjusted Tim’s weighted blanket, I began to hum a harmony to the song. Since Tim was not fond of noise-blocking headphones, this was the closest I could get to relaxing him. Why did this happen, and how could we dampen it? Since sensory input and pain has an effect on all our daily activities, it is a crucial treatment focus in occupational therapy. My first exposure to occupational therapy was a required class for direct support professionals at Bridges. To introduce us to sensory...
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...Introduction Negative income tax (NIT) is a tax refund to anyone whose income falls below the cut off line and the NIT brings it back above the line, it is also know as the Basic Guaranteed Income. BIG is a form of income distribution in the society. According to Gary Becker “any state intervention, any income redistribution, creates disincentives and distortions, but if society decides that a certain level of redistribution must take place, the NIT is the best, the most minimally distorting, solution ever devised." The three countries that are adapted to NIT or basic guaranteed annual income (BIG) mentioned in this paper are Canada, The United States of America and Namibia. Many different sources of funding have been suggested for this form of redistribution and these are: incomes taxes, sales taxes, luxury taxes, wealth taxes, inheritance taxes, capital gains taxes, pollution taxes, tariffs, sin taxes, universal stock ownership, fees from government created monopolies and a national mutual fund. Most citizens of a country do not want money to be deducted from them through taxes. The unhappy citizens will end up moving provinces or countries if the money being deducted from, for examples incomes according to Tibeout. According to the Altruism theory, people might feel the need to help others because they are uncertain about future Canada The Manitoba Mincome administered a negative...
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...wrote that “Some art activities do not operate in a money economy. Instead, a central government agency may allocate recourses for art projects.” According to Becker, with the creation of “culture industries”, organizations with profit motives have successfully latched on forms of arts with commercial value. He also said that their dominance needs to be stopped by the federal government to ensure equitable opportunities among artists. The earliest patronage of the arts dated before the First World War with the formation of the Commonwealth Literary Fund in 1908 and the Commonwealth Arts Advisory Board in 1912. However, an official committee to cultural and arts funding began with the formation of the ABC in 1932. The ABC broadcasted mainly music performed by its own orchestras. Eventually the primary focus on such funding was solely on music, opera and ballet as it was deemed fitting for high cultural aspiration of the federal government. Media became a...
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...Respond to the following scenario with your thoughts, ideas, and comments. This will be the foundation for future assignments. Be substantive and clear, and use examples to reinforce your ideas. Because this is your first week as vice president (VP) of finance at Apex, several members of the top management team have stopped by your office. Timothy Russell, chair of the audit committee, comes in first to talk with you about the Sarbanes-Oxley Act of 2002 (SOX). “Welcome to Apex,” he says. I hope you’re getting comfortable with us here. We have a lot on our plate, and we need your assistance with some important compliance issues.” “Thanks, Tim,” you say. “Mary Francis mentioned Sarbanes-Oxley when I talked with her last week. Maybe we can start with that.” “Right. As you know, our company is private and will eventually need to seek external funding. Currently, we're not compliant with all of the requirements of SOX. Apex is compliant with Section 404 regarding internal control, but not 302 relating to the certification of the chief executive officer (CEO) and chief financial officer (CFO)." He continues, "As you know, compliance is necessary for an initial public offering (IPO) of equity shares. If John and Mary aren't confident that the internal control is sound, then they need to take steps now to change procedures.” “So, let's discuss the requirements and considerations for the CEO and CFO to achieve compliance with Section 302 of SOX,” you say. “Exactly,” he responds. “We also...
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...Capital and Financial Plan Expansion Plan To support the rapid growth and further cost reductions, our company plan to re-design the factory layout by integrating factory A and factory C (see Appendix 1). We expect the whole operation will be run in a more coordinated manner after the integration. The production process will be streamlined to reduce waste in labour hour and materials costs. The integral parts of achieving the synergies will be moving to factory C and fitting additional equipment into factory C. After moving into C, factory size will be increased from 2,750 square meters to 4,100 square meters and the capacity increased from 420 to 1,000 cars per year. Timeline of moving to C and fitting additional equipment: The total capital expenditure for the expansion and growth strategy is detailed in Appendix 1. Financial Projections Our growth has been very strong - 72% by end of19X3. We expect that our company will continue its strong...
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...Media Reaction SOC/315 Abstract I am a firm believer that education should be available to anyone who wants to continue their education after High School. But there is one issue that I do have a problem with and that is the state of California offering Financial Aid to “Illegal” undocumented students who have come into the country to better themselves. Don’t get me wrong, I don’t think that they should be banned from doing so; I just think there needs to be a line that has to be drawn. During this article I am going to write I will point out some of the drawbacks I see from the “California Dream Act” the way it has affected my family directly and how it has prevented them from continuing their education and get to where they want to be in life. I believe every one is entitled to their opinions on anything that is brought up regardless of what the topic is. Financial Aid for Undocumented Students The “California Dream Act” states “An undocumented high-school graduate or GED recipient would be eligible to adjust to conditional lawful permanent resident (LPR) status if they have been physically present in the United States for at least five years and were younger than 16 when they first entered the country. (Immigration Policy Center, Para 6, 2010) I am all for today’s youth receiving an education and moving forward with their lives, but I have a problem when them receiving their education and continuing their lives gets in the way of my family...
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...Alicia Cannady Week 3 FIN/419 David Walker P2-1 Reviewing basic financial statements The income statement for the year ended December 31, 2009, the balance sheets for December 31, 2009 and 2008, and the statement of retained earnings for the year ended December 31, 2009, for Technica, Inc., are given on pages 82 and 83. Briefly discuss the form and informational content of each of these statements. Income statement: Technica, Inc. showed a net profit for 2006 and the ability to pay cash dividends to its stockholders. Balance sheet: The financial condition of Technica, Inc. at December 31, 2005 and 2006 is shown as a summary of assets and liabilities. They have an excess of current assets over current liabilities, demonstrating liquidity. The firm’s fixed assets 270,000 represent over one-half of total assets $408,300. The firm is financed by short-term debt, long-term debt, common stock, and retained earnings. It also shows that Techinica repurchased 500 shares of common stock in 2006. Statement of retained earnings: Technica, Inc. earned a net profit of $42,900 in 2006 and paid out $20,000 in cash dividends. The reconciliation of the retained earnings account from $50,200 to $73,100 shows the net amount ($22,900) retained by the firm. P2- 2 Financial statement account identification Mark each of the accounts listed in the following table as follows: a. In column (1), indicate in which statement—income statement (IS) or balance sheet (BS)—the account...
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...function that deals with gathering resources, personnel, money for the project, and any information to complete the task. Organizing also involves grouping people into work units and specifying job responsibilities and allocating resources to the proper positions to achieve a common goal. Organizing plays a major role in the management process. Once the planning process has completed it is time to start the organizing. The manager steps in to administer his or her part by delegating, issuing resources, and procuring finances. The process of acquiring funding for projects or for new equipment is a process that involves filling out a capital expense form for my company’s corporate head quarters. The capital expense form is used to monitor the exact destination of the funding. We also have a departmental budget for each department in the organization and are adjusted on a yearly basis depending on the amount of funding used in the previous fiscal year. I am a frontline maintenance supervisor and we keep a close eye on the parts inventory flow and what we are spending as compared to the previous year. When we install new equipment that was approved by a capital expense, we in turn have to stock each wearable part for that machine and then adjust the maintenance department budget accordingly. We try to spend at least as much as we did the year before because whatever we don’t spend we lose. When we have an emergency and need to order a non- stock Item and it cost more...
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