...| | | | | | | | | | | | | | | | |North Country Auto | | | | | | | | | | | | | | | | | ...
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...have 3 services: * Sale of new mowers * Sale of used mowers * Service mowers: * Purchased from the dealership under warranty * Other mowers that local people brought in for repairs * Bailey has had a long-standing policy of emphasizing new-mower sales as the principal business of the dealership * Good reputation and close attention to customer relations generated a substantial amount of repeat business, and increased company’s sales * Bailey (nearing retirement) wanted to make organizational changes to relinquish his control over the company, and withdrawal from day-to-day managerial responsibilities * He divided up business into three departments and named trusted employees as managers of each department: * Kevin Foyle, new-mower sales * Grace Chen, used-mower sales * Peter Stockwell, service department * Each manager was told to run her or his department as if it were an independent business (in other words, treated as profit centres) * Managers’ salaries are to be calculated as a straight percentage of their department’s gross profit * A particular customer wanted to trade his old mower as part of purchase price of a new one * Kevin had to decide what amount he would offer for a trade-in value * Kevin would deduct 8% of the new mower’s list price to be competitive in the market without the trade-in * The customer had an inflated view of the worth of his old mower * The new mower the customer wanted to...
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...from different sources, in reference to demand for used car versus new cars. The supply and demand for used car continue to increase. We see a trend from 1995 to 1999 and again from 2009-2010 (2011 not release yet) for used car sales increased. Increase in demand due to high gas prices and the short supply of Japanese small new cars. We find a significant demand response, as nearly half of the decline in sales of U.S. manufacturers from 2002-2010 was due to the increase in gasoline prices. On the other hand, a gasoline tax increase would have a modest effect on average fuel efficiency. The effect of prices of used cars on the demand for new cars are mixed, customers are looking for more efficient cars, and less payments. The recession in the United States is driving more costumers to buy used cars since they are more affordable; also the earthquake in Japan created a short supply for small cars in the market, bringing more opportunity for the used car to be in demand. One thing to keep in mind because of the demand for small cars and compact cars is rising, the dealerships are selling used cars for more than their actual MSRP, and the customers are buying them, therefore moving the economy in the right direction. We the used car prices increasing and Japan being able to continue manufacturing small and compact cars, customers are beginning to lining more and more for new cars. We the high prices of gasoline, the used car mind set is changing creating a demand for more...
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...Running Head: HOW A USED BOTTLE BECOMES A NEW BOTTLE 1 How A Used Bottle Becomes A New Bottle Mark Dalton Baker College HOW A USED BOTTLE BECOMES A NEW BOTTLE 2 First of all, There has been an increase in the curbside recycling programs in the last few decades. This has led to more glass recycling centers. Because of new technological advances that were not available in the last 20 years it is now common place to turn recycled glass into the raw materials for new glass bottles. Before, without the technology glass bottles were used primarily for covering landfills and used as a cheap construction material (Jiang, Thuy Vo, 2013). Today with the technology to sort glass collected at the curbside recycling centers, there has been an increase in turning used glass bottles into new bottles. Glass bottles can be recycled into new items over and over again. Did you know that it takes less energy to produce a new bottle from recycled glass than from raw materials? This reduces all of the problems caused through the burning of fossil fuels, such as air pollution, habitat destruction and ocean acidification (EPA, 2013). Recycling also stops the glass from going to a landfill, where it would take up space. (E How website (1999) stated that, it may take up to 4000 years for a bottle to start to decompose...
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...walking, but why do people buy a used car? In today's society, the car is an indispensable part of life. Because many people don't have much money to pay for a new car, so they choose a used car. You think about the practicality of the car when you buy a used car. Most people when they buy a used car, they only look at the dashboard to display Numbers that is hard to see the problems. In terms of price, used car price is very lower than the new car. Different age of used cars prices also different. You need to check the car new or old. If want to know the used cars are good or bad, not only look at the appearance and age, but also look at car maintenance level. Lacetera, Pope and Sydnor agrees that “For example, cars with odometer values...
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...and recreation are a growing part of the local economy. In fact the New Forest has more visitors per square kilometre than any other national park (7.5 visits/km2). Leisure and tourism is the world’s second largest industry in terms of income generated. In recent years there has been an explosion of tourism in the UK. This is due to: • Increase in personal incomes • Increase in leisure time • Paid holidays as part of employment contracts • Shorter working week • Earlier retirement • Increased mobility • Improved availability of information (especially through the internet) This fact sheet looks at the number of people who visit the New Forest and how they spend their time when they get here. For further information on how the New Forest National Park Authority aims to identify and manage both the positive and negative effects of the number of visitors and the level of recreation within the Park see the Tourism and Recreation: Managing the Impacts fact sheet. The following facts and figures come from a result of a number of surveys carried out by Tourism South East Research Services, September 2005. Volume and Value estimates The total visitor volumes using the New Forest Park is estimated at 13,555,400 visitor days (excluding business tourists and personal and social visits to friends and relatives). Total spending associated with leisure visits to the New Forest National Park is estimated at around £107.6 million. Taking into...
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...Landau Company should best represent Landau Company’s Monthly Income Statement? Objectives: 1. To cite Pros and Cons of the chosen costing system 2. To choose and adapt a new costing method that better manages the cost of Landau Company’s Monthly Income Statement Areas of Consideration: 1. The significant Increase of sales in July over June. 2. Lack of control over long run costs that can bankrupt a company. 3. Landau’s margin on products for the months of June and July. 4. The company is looking for a new approach for internal managerial purposes. Alternative Courses of Action 1. Variable Costing System Pros * Provides benchmark on the profitability of manufactured products * It simplifies the bookkeeping of the company * It helps in establishing a responsible accounting in the company from which it identifies what the costs should be, who are the responsible personnel and whether costs are still under control. * Reduce time consuming efforts of allocating fixed overhead to individual products * Advantageous in making periodic management decision for the use in internal reports * Profit for a period is not affected in the changes in inventories Cons * Variable costing is usually prepared on a monthly basis. The information in the reports may not be used or too insignificant for the next accounting period. * Variable costing cannot produce reliable tax reports or any external reports such as the government. * In variable...
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...Case 5-2: North Country Auto- teaching notes (case facts in red) Internal Environment – key facts about the Company • North Country Auto is a: Franchised dealer & factory authorized service centre– 3 manufacturers (SAAB, Ford, VW) o Began operations in 1968 o 5 departments (new car sales, used car sales, service, body, and parts) o Situated in upstate NY- pop. 20,000, served two nearby towns of 4,000 people as well as rural areas covering a 20 mile radius • George Liddy & Andrew Jones – equal share ownership in the corporation and involvement in operations (Mr. Jones one of the founders), Mr. Liddy (since 1988)(front end), Mr. Jones (back end)) External Environment – 5 forces – Threat of New Entrants –HIGH/LOW o Proliferation of new entrants o 6 acre lot & 25,000 sq ft facility o Costly to be a franchised dealer - Each manufacturer used a different computer system for tracking inventory and placing new orders and required dealers to maintain an adequate service facility with a crew of trained technicians and spare parts inventory, level of investment per product line, o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales Rivalry among Competitors –HIGH o Aggressive discounting and small margins o depressed sales (vehicles) o Fewer than 50% of dealers were expected to make a profit (US) in 1990 o margins to fall below 1% of sales o multiple franchises common in the 1980s o Industry parts...
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...auto loan to buy a new or used car. I was very much interested with a Honda accord. I have $2000 in my saving account to be used as a down payment. During my window shopping I found it very difficult to find a car that I’m willing to pay for it. The main reason not to come into clear decision was which one of these cars will save me some money and spares my driving for longer time. Since I know how discount rate works, I have been able to make decisions easily than I expected. New 2015 Honda accord costs $24000 with zero mileage on it. The interest rate for this car over a period of five years is 1.49%. I f I put down payment of $2000, and then finance $22000. Therefore the total loan owed after five years will be approximated to $27000. On the other hand I have a used 2008 Honda accord for $11750 under interest rate of 17% for five years. After $2000 down payment, the total amount owed after five years is approximately to $23400. Based on the simple financial analysis above I found that the discount rate on a new car is much lower than that of the used car. This lead me to a better decision of choosing a new Honda accord over used one. New Honda accord has lower uncertainty compared to a used one. Over that period of time new Honda is more likely to survive driving more than a used one. Uncertainty can be mechanical problems or maintenance issues that incur more operating costs of the car. Therefore, my discount rate is 1.49% for a new car over a used...
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...4 What advice do you have for the owners regarding the new NCA structure? 6 2 Other Frameworks 6 2.1 Control 6 2.1.1 Input 6 2.1.2 Process 6 2.1.3 Output 6 2.2 Profit Plan 7 2.2.1 Profit wheel 7 2.2.2 Cash wheel 7 2.2.3 ROE wheel 7 2.3 Measuring divisional performance 7 2.4 Balanced Scorecard 8 2.5 Transfer Prices 8 2.6 Incentive system 9 2.7 Control levers to manage risk 9 2.7.1 Operations risk 9 2.7.2 Asset impairment risk 9 2.7.3 Competitive risk 9 2.7.4 Franchise risk 9 2.8 Final framework 10 3 Exhibits 10 Overview: The link between control systems and strategy The link between control systems and organizational structure (spans, cost/profit centers) The choice of what to control The profit plan Strategic profitability analysis (SPA) Designing asset allocation systems Measuring divisional performance The Balanced Scorecard (BSC) Transfer prices (TP) – calculation of prices, which method was used? Incentive systems Control levers to manage risk PM&CS as control levers The Case Content Background Company information Centralized company Franchised dealer and authorized service center for Ford, Saab and Volkswagen The dealership was situated in an upstate New York town with a population of about 20.000 The company maintains its competitiveness by providing full services to its customers. Owned as a corporation by George Liddy and Andrew Jones. Mr. Liddy focused on new and used car sales, while Mr. Jones concentrated on managing the...
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...management role and not to be involved in the day-to-day operations of the dealership. The profits of the dealership were fundamentally important to Rusty’s future lifestyle. As the founding owner of the dealership in 1968, he had seen the dealership grow to the current sales level of approximately 600 new cars and 600 used cars annually. His service facility has also expanded to 18 service bays. In Rusty’s opinion his long standing policy of emphasizing new car sales as the principle business of the dealership had lead to the growth. He also attributed this to developing the customers and playing close attention to the customer’s needs. Most customers both new and used had returned to the dealership several times to make additional purchases. The latest income statement is shown in the exhibit along with an analysis of the service department expenses. To accomplish semi-retirement Rusty needed to make organizational changes. Talking with his daughter, a recent Laurier MBA graduate, he felt that the profit centre approach would best fit his requirements. Thus the dealership was divided into three profit centres. The new cars sales department was to be run by Sue Me, the used car sales department by Le Mon and the service department by Otto Baun. All of these people had been key players at the dealership for the past ten years. Each manager was told to run their department as if it was an independent business. Under the profit centre approach each manager would receive their...
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...were forced to adjust from the older methods of communication to the ones used now in all first word nations. I researched the lack of personal isolation, the ways that members of society used to communicate with one each other, along with examining the...
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...Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and wholesale markets will be the main target.Executive summary: A new industry of ready-made garment is to be set up in Bangladesh. The reasons on which this decision is based includes, flexible business and investment policy of Bangladesh government, economic security, cheap labour, tax exemption etc. Garment industry requires less investment capital. Raw material would be purchased from the local markets, this will save time and money. Different brands will be launched according to the financial conditions of the consumer, this will capture maximum market. New export markets will be sort out and this will help in generating foreign exchange. Internet, catalogue, television, bill boards, radio, will be used as source of advertisements. Retail and...
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...Compare marketing techniques used in marketing products in two organisations In this assignment I will compare marketing techniques used in marketing products in McDonalds and Maxfactor. I will outline the similarities and differences of the way the two organisations use marketing techniques. My chosen products are: McDonald’s McFlurry Ice-cream and Maxfactor ‘masterpiece’ mascara. Technique | McDonald’s McFlurry Ice-cream | Maxfactor ‘Masterpiece’ mascara | Similarities | Differences | Market Penetration | McDonalds focuses on selling its ice-cream in the same and to the same customers by using methods such as BOGOF or offering a free one with a large meal. McDonalds also promotes its product by giving out ice-cream discount flyers to its customers. | Maxfactor focuses on selling ‘masterpiece’ mascaras to existing markets and uses methods such as advertising the product in a manner that will attract their chosen markets audience. Maxfactor promoted its product by demonstrating the effect of the mascara and free tutorials for its customers. | Both McDonalds and Maxfactor focus on selling their product to an existing market and both use promotion methods. | The differences is that McDonalds uses marketing penetration by giving out offers and discounts whereas Maxfactor can’t afford to do that with the ‘masterpiece’ mascara and therefore uses advertising to encourage the customers to buy the new product. | MarketingDevelopment | McDonalds has used market development by introducing...
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...Brave New World: The use of mass media and propaganda The society is determined by the nature of people within it and how they relate. The influence of external factors like religion, politics, and technology contribute a lot to the structure and development of the society. In the novel Brave New World, the concept of social media and propaganda are explicitly expressed through various accounts. The author has used the influence of social media to bring a deeper understanding of how various characters, decisions, and acts are influenced. Social media in the novel act as a channel through which propaganda is manifested. Social power and influence is an attribute of propaganda that is directed through the masses via social media. Hence, in the context of this essay will address how mass media and propaganda are used in novel Brave New World. The human society has been dictated by their role in social media and how they influence decision and choices in life. Aldous Huxley in his novel describes a community that has been infiltrated by untruth and misguided by some beliefs and information from a selected group of people. The basic set up in the society is controlled by those who feel superior and elite compared to the others. Propaganda is spread of wrong information that causes a severe impact to the community or a group of people. In the novel Brave New World, the conflict between individual and the society being different and unique is an act of propaganda. The use of Soma...
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