Acf Case O.M. Scott Sons Company Essay Example

Acf Case O.M. Scott Sons Company Paper Estimating Funds Requirements Short-Term Sources of Funds Subject:O. M. Scott Sons Company Problem:Should the O. M. Scott company keep with its Trust Receipt Plan in order to maintain 25% growth rate. Options: 1. Sell receivables to a third party at a discount rate to receive cash. 2. Issue preferred equity to help finance retailers in holding higher Inventory levels 3. Reduce growth rate to a sustainable Recommendation: In order to maintain the 25% growth, we need to first of all, abandon the trust receipt plan which causes sales growth rate to drop ever since implementation. we need to adopt alternative 1 (selling receivables) in order to reduce the cash cycle and free up some cash to meet our short term liabilities. Our external fund needed exceeds the maximum allowed line of credit of 12. 5 million according to the performa for March 1962, which means that we have to also incorporate alternative 2 which is to issue equity to cover for extra fund outside of the limit. Analysis: O. M. Scott Sons (Scott) is a lawn-care company that has its operations centered in Ohio. The company has successful established a customer base and has a positive outlook for future operations. Their goal for future years is to maintain a growth of 25% for sales and income, however, we believe that this is not plausible because receivables are not being collected at a rate that supports the growth in sales. This is the main source of the problem for the company is not getting paid for its inventory until they have been sold by the dealers. We will write a custom essay sample on Acf Case O.M. Scott Sons Company specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Acf Case O.M. Scott Sons Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Acf Case O.M. Scott Sons Company specifically for you FOR ONLY $16.38 $13.9/page Hire Writer This places significant financial strain on the company, as it is responsible for obtaining the finances necessary in order to maintain the inventory levels at each of its 10,000 dealers. Starting with an analysis of the inventory period, we see a poor trend. Logically, the inventory period has also gone from bad to worst. Also alarming are the company’s accounts receivable turnover ratios, decreasing by 72% and its accounts receivable period going up by 253% from 1957 to 1961. What is most interesting is that these numbers were fairly stable prior to 1960, the year the O. M. Scott Sons Co. started implementing its Trust Receipt Plan. Pushing further, the ROA reflects a poor corporate ability to extract value from its assets, as the numbers are getting worst from year to year. The operating cycle was 106. 7 days in 1957, growing by 126% to 241. 3 days by 1961, demonstrating poor management efficiency. The cash cycle was extended by 100 days during the same period, which is not the direction in which you want cash flow to go. The cash cycle needs to be shorter in order to allow cash to flow into the company sooner, easing the financial strain on the company. Regarding profitability, the company’s net income over sales ratio was in an upward trend from ‘57 till ‘59 but dropped as soon as Scott implemented the Trust Receipt Plan. Higher operating expenses as well as interest expenses have had a non negligible impact on bottom line results. The ROE in 1961 is of 13. 53%, down from 19. 98% in 1959, demonstrating that the shareholder’s return is alarmingly going down. To dig deeper into the recent ROE results, we did a Dupont analysis and were able to relate the drop in return to the longer receivables collection and higher inventory levels. In turn, higher inventory levels grossed up total assets and dropped the ROA. A free cash flow model was constructed to further prove our point that the Trust Receipt Plan is not successfully claiming receivables from Scott’s dealers. By looking at the numbers in 1959 and 1960, we see that free cash flow in the company decreased by 72% after the implementation of the Trust Receipt Plan. This further proves our idea that the Trust Receipt Plan is not successful in bringing cash into the company. Despite these negative outcomes from the trust receipt plan, sales have been improving ever since the implementation. This is due to the fact that the trust receipt plan requires trustees to carry enough inventory to match seasonal peak demands as well as the full array of Scott and Son’s products. However, this growth in sales have been dropping ever since the implementation. The market for Scott and Son’s products is estimated to be $100 million yet sales in 1961 reached on $43 million. So the drop in sales growth cannot be explained by a saturated market. It can only be attributed to the trust receipt plan. Based on our analysis, we believe that in order to keep up with the projected 25% growth in sales the O. M. Scott Co. has to abandon its Trust Receipt Plan. There few things that we noticed that can improved with some change to the current plan, below is an analysis of the alternatives we suggested. Alternative 1 An alternative for Scott is to sell its receivables to a third party such as a bank. After implementing the Trust Receipt Plan in 1960, accounts receivables nearly tripled, increasing from $5,788,400 to $15,749,700. Due to this increase, Scott will need to hire additional labour to ensure the collection of their receivables. From, we can clearly see that the Trust Receipt Plan significantly slowed down the collection process for Scott. Scott is able to collect 75% of its receivables in the month it is due, therefore it only needs to sell the rest of the 25% to obtain cash that is equivalent to 100% of its accounts receivables. It is likely that the bank will only buy the receivables from Scott at a discounted rate, from internet research, we found that this is usually a 20% discount. This means that Scott will receive 20% instead of the full 25% of the receivables that they sell. However, when taking into consideration the time value of money, as ell as the 3% of receivables that Scott is unable to collect, obtaining 95% of the receivables by selling it to the bank seems to be the better option. Also, by selling their receivables, Scott will no longer need to implement methods such as hiring more staff to collect late receivables. By selling its receivables, Scott will immediately shorten its cash cycle, as accounts receivable period will only be 30 days. This brings the cash cycle to 23. 1 days, and the operating cycle to 89. 4 days. Alternative 2 A second alternative is to issue preferred equity in the open market. Preferred equity would be preferable because we assume that the market is not perfectly efficient and does not follow the irrelevance of financing construct according to Modigliani and Miller. Because equity prices are going down, existing shareholder`s benefit more from issuing equity such as preferred shares. Raising equity would help finance the dealers in holding higher levels of inventory, which was the initial problem being targeted by the Trust Receipt Plan. The raised amount of equity could also be used to reduce the high debt level and also reducing the high interest payments. This method would take pressure off the repayment timeline imposed by bank debt. Repayment to shareholders can be done on an longer schedule and dividend payments are also optional, compared to interest payments that are not. The problem with this alternative is that shareholder`s will not want to further dilute their profits while not having dividend payouts as tax deductible items. Another reason to raise equity is that our calculations of external fund needs for March 1962 is calculated to be $16. 4 million, $3. 8 million more than the maximum allowed line of credit of $12. 5 million. Alternative 3 After conducting a proforma forecast for the next four quarters, from Dec. 1961 to Sept. 1962, growing at a 25% rate for Sales and Net Income, we noticed that Scott and Sons’ short-term fund needed is not feasible, $12 million cannot cover $16. 4 million that is needed, and that Subordinated debt also exceeds that of the allowed maximum limit, 12million exceeds $11. 135 million that was calculated (Appendix: Equity Working Capital). Thus Scott and Sons’ will not be able to cover the EFN needed in March when sales peak, consequently, we must reduce the demand of EFN through reduction of the targeted growth rate of 25%. Through analyzing Scott’s Balance Sheet, we performed a Dupont analysis, it showed us that a worse situation as the trust plan and financial target of 25% have been implemented. For example, assets turnovers have been reducing from 1. 2840 top 1. 2071 and assets turnover period lengthened from 284 to 304 day (Appendix: Ratios). As Scott and Sons’ business process have been worsening lately, we strongly suggest the firm to stop growing at a farfetched rate of 25%. However, the sales and net income were indeed growing, but at a marginal diminishing fashion. Both sales growth and income growth showed us that the firm has been experience lower growth rate in Net Income and Sales in comparison to the prior period (Appendix: Growth in Accounts). As a result, ROA, ROE and turnover ratios also reflected that profit margin and turnover periods are getting worse in relative terms( Appendix: Dupont Analysis Ratios). As the peak season getting closer, even though income and sales are growing, we still believe that the low profitability certainly needs to be improved by lowering operating expenses and to create a cost effective process in shipping methods EOQ. In summary, with the violation of bank’s covenant and the lack of external fund, Scott will have to grow at sustainable 18. 27% (Appendix: Sustainable Growth Rate) and improve internal business processes to reach a higher level of profit margin, which brings us to the conclusion that 25% growth rate needs to be adjusted in a realistic manner towards better state of business. Conclusion In order to maintain the 25% growth, we need to first of all, abandon the trust receipt plan which causes sales growth rate to drop ever since implementation. e need to adopt alternative 1 (selling receivables) in order to reduce the cash cycle and free up some cash to meet our short term liabilities. Our external fund needed exceeds the maximum allowed line of credit of 12. 5 million according to the performa for March 1962, which means that we have to also incorporate alternative 2 which is to issue equity to cover for extra fund outside of the limit. We will not go with alternative 3 and redu ce growth rate because by capping growth to a sustainable rate, we are also reducing our income. Appendix | | |1957 |1958 |1959 |1960 |1961 | | |1 |Current Ratio |Current Assets/Current |2. 1273 |2. 4821 |1. 9712 |4. 2999 |3. 5864 |getting better | | | |Liabilities | | | | | | | |2 |Quick Ratio |(current assets Inv. )/C. |1. 2245 |1. 5799 |1. 0217 |3. 5346 |2. 8840 |getting better | | | |L. | | | | | | |3 |T. A. Turnover |(operating revenue/avg. |2. 1037 |2. 0360 |1. 4058 |1. 2840 |1. 2071 |getting worse | | | Period |total Assets) | | | | | | | | | | |173. 8 |182. 5 |260. 7 |284. 3 |304. 2 | | |4 |ROA |NI/Total Assets |0. 0508 |0. 784 |0. 0683 |0. 0597 |0. 0439 |getting worse | |5 |Net Profit Margin|NI/operating revenue |0. 0242 |0. 0385 |0. 0486 |0. 0465 |0. 0364 |getting worse | |6 |ROE |NI/Equity |0. 1927 |0. 2768 |0. 2945 |0. 2030 |0. 1679 |getting worse | |7 |Equity Multiplier|Total Assets/ Total shares|3. 7910 |3. 5308 |4. 3107 |3. 4014 |3. 8201 | | |8 |ROE |Profit margin * Assets |0. 1927 |0. 2768 |0. 945 |0. 2030 |0. 1679 |getting a lot | | | |Turnover * equity | | | | | |worse | | | |multiplier | | | | | | | Operating cycle | | |1957 |1958 |1959 |1960 |1961 | |INV Turnover |COGS/ Av INV |6. 62347 |5. 59640 |3. 44899 |7. 7069 |6. 14108 | |Inv Period |365/ INV turnover |55. 10709 |65. 22054 |105. 828 |46. 97139 |59. 4358 | |AR Turnover |Credit Sales/Av AR |7. 07420 |4. 99311 |5. 28016 |2. 43791 |2. 00647 | |AR Period |365/AR Turnover |51. 59591 |73. 10076 |69. 1266 |149. 7182 |181. 911 | |AP Turnover |COGS/AV AP |10. 06029 |8. 86100 |5. 82568 |10. 89817 |5. 0258 | |AP Period |365/AP Turnover |36. 28125 |41. 19172 |62. 6535 |33. 49185 |66. 3325 | | | | | | | | | |Operating cycle |Inventory period + A/R period |106. 703 |138. 32131 |174. 955 |196. 6896 |241. 347 | |Cash cycle |operating cycle A/P period |70. 42175 |97. 12959 |112. 301 |163. 1977 |175. 014 | Free Cash Flow |1957 |1958 |1959 |1960 |1961 | |EBIT |1094. 6 |2165. 5 |3567. 3 |4541. 8 |4368. 1 | |1-Taxes |0. 5 |0. 5 |0. 5 |0. 5 |0. 5 | |Depreciation/Amortization |263. 2 |185. 9 |377. 6 |584. 2 |589. 6 | |Change in CA |- |3784. |5219. 7 |7474. 7 |6552. 6 | |Change in CL | |1154. 1 |3619 |-2250. 5 |2844. 7 | |Change in NWC | |2630 |1600. 7 |9725. 2 |3707. 9 | |Capex | |186 |4925. 1 |638. 8 |366. 8 | |Free Cash Flow | |-1547. 5 |-4364. 55 |-7508. 9 |-1301. 05 | Sustainable Growth Rate | |Earing per share |Dividend |NI |ROE on Beginning Equity |Sustainable Growth | | |0. 99 |0. 099 | $ 2,109. 90 | | | |Retention Rate |0. 99-0. 099 = |0. 891 | $ 10,291. 68 |20. 501% |18. 266% | 1962 March Equity Working Capital Current Assets | | | |$ 28,324 | |Current Liabilities | | |$10,138 | | |LT Debt | | |$ 12,000 | | |Total Debt | | |$22,138 | $ 22,138 | |Equity working Capital | | | |$ 6,186 | | | | | | | |Maximum allowed parent company debt |300% |x |$6,186 |$ 18,558 | | | | | | | |Subordinated Debts Allowed |0. 6 |x | $ 18,558 | $ 11,135 | Ratios Dupont Analysis [pic] QuarterlyPr oforma[pic] Growth in Accounts [pic]

Losing Independence of India Essays

Losing Independence of India Essays Losing Independence of India Essay Losing Independence of India Essay All of us have gathered here to celebrate the 67 th Independence Day of our great Bharath Varsha. At this juncture, I want to express my perspective of Independence. Independence is such a beautiful word that reminds us of Freedom and all niceties associated with it.In all these 67 years we have managed to talk what we want, see what we like, develop technology, invade space, build nuclear bombs, choose our brands, elect our leaders, create business empires, chat and tweet and so on and so forth. What we have gained so far has been heart-warming but what we have truly lost is heart-rending. What is Independence? Independence is simply non-depending, a stand-alone. We have the right to call us Independents only when we are back to what we were? I am about to espouse on the Independences we are still to possess. Shocked? Sad? But true.Cultural Independence For Millennia, India has been the beacon of culture and civil. No other culture can compare with ours. We, Indians, can proudly say that we have actually sown the seeds of Civilization. Having been pioneers and peers of lifestyle, the current happenings in our lives is bitter and disappointing. Sad, but true. Having been slaves to a 300 year old regime, we have submitted ourselves so completely and shamelessly. We have totally ignored our glory and heritage. We are DEPENDANT and have adopted their language, dress, education, and manners. Where is our sense of Propriety?Do we lack the talent or are we inferior to anyone? No, No and No. Our immense talent and IQ have been proved beyond doubt. We have to obtain our independence from this cultural catastrophe. Folks I can quote China, Russia, France, Germany, Japan all undisputed technological giants and members of G8 learning and augmenting their skills only in their respective mother tongues and nobody has changed their identity or their culture in the past millennia. But, what about us? We have sacrificed our mother tongue, and have miserably succumbed to the Im perialist’s ploy.Friends, I am no enemy to any language, but as an independent Indian, I am only trying to get off my dependency of foreign language and foreign culture. Sad, but true Eating Independence Our great Bharat varsha is home to multiple delicacies to the vast multitudes, all well-balanced diet, rich in proteins and vitamins. This food that has nourished our bodies and souls, through these millennia, is now perceived as outmoded and outdated with the advent of Imported junk snacks. The youth of the present have become dependent of these and have become obese. Let us gain our Independence from these agents of obesity.Sad, but true. Character Independence I am pained to own up that we Indians have taken for granted that dishonesty is the way of life†. We have started voting for â€Å"Not the Honestâ€Å", but â€Å"the least Dishonest†. Sad, but true. Whilst our ithihasas, puranas, Upanishads and Vedas keep extolling honesty, and we being paradigm of tr uth once upon a time, now have lost ourselves in myriad of lies and corrupt practices perpetrated by our 300-year Masters. No doubt, Gandhiji is the epitome of truth to this world, but we Indians have managed to keep him only in our currency but discarded him from our lives. Sad, but true.Education Independence I have a complaint against on not what we learn but on what we don’t learn. Our exhaustive culture always aims at making every individual a worthy one. Through shlokas, poetry, epics and tales, our ancestors have always strived to bring the best potential in every human being. But where are those now. Not even grandmothers of this day know them. I strongly request the appropriate Authorities to reinstate those Moral Science classes and nurture those epics, which have been part and parcel of our lives for so long. Lifestyle Independence Odi Vilayadu Pappa, Nee Oynthirikka lakathu PappaSang the great Mahakavi. But where is the space now. Living in a concrete jungle, hard pressed for time we end up doing different things but no things differently. We do not have time for outdoor games, we are so engrossed with television and computers. We can’t frequent out because of pollution and traffic. Late to bed and late to rise is the order which ends up in losing. We have lost our originality and deprived our kids of what the Great Mahakavi sung. We do not even go for excursions, where we can enjoy each others’ company, as these days most of us are allergic to bus travel.Whither gost the comradeship? Whither gost the friendship? Sad but true. Parents, Teachers, all elders and the revered Chief Guest, please make us Independent. Kindly bring us back our epics, culture, food, honesty as a habit, and the brilliant childhood that you had enjoyed. We deserve it. I am feeling sad, nevertheless it is true. Fortunately we have full Independence to do what we think. I request you to think and provide us with the Independence that makes us complete pers onalities, say humans with virtue, not just Engineers and Doctors. Thanking you in advance. Jai Hind. Jai Bharath

Role of the European Capital of Culture Research Paper

Role of the European Capital of Culture - Research Paper Example There also lies a threat of consistency â€Å"as the cities are seeking to fulfill a format of the ideal ECC† (Palonen, 2011, p.246). After studying three applications related to the ECC 2008 as well as the argument surrounding the bid, various researchers, including Griffiths, has claims that â€Å"the ECC bidding process managed to articulate differences between the cities, and their distance to the local and regional strategies† (Palonen, 2011, p.246). Hitherto, while creating dissimilarities between cities, areas and even presenting insights to Europe which vary, the thoughts of culture are somewhat similar. And also are the characteristics of the programmes as well as their applications (Palonen, 2011, p.246).  Ã‚   In respect to the policy process, all the European cities become symbols of Europe as the ‘family of cultures’. The examination on this super-occurrence could center on the institutions as well as on the actors of the procedure; however, in various articles, a novel viewpoint is required. This explores how the process of institutionalization associated with the cultural models of Europe, partaking as well as special effects (habitually gentrification) are restricted in the liberty of the city performance artistic interferences as an element of the official programme related to two closely linked with ECCs. The degree of inspection is related to the micro-context that is associated with ‘an encounter between the locals and the intervention staged by ‘cultural workers’ including the author herself’. Originally, it has been the thought of nominating the â€Å"European City of Culture† that has been voiced in the year 1983 by the â€Å"Greek Minister of Culture†, Melina Mercouri. In this regard, ECCs has been chosen since the year 1985 and also the policy has been shifted over the passage of time.  Ã‚  

Social Networking Practices and Interactions Essay

Social Networking Practices and Interactions - Essay Example The paper tells that social sites to have a contrast with the real lives that people lead. The likes and interests often posted on social sites are only meant to give people social status but are different from the reality; thus firms will be targeting virtual people who will eventually not consume the products. People fall into various social classes, and the way in which one person lives is not the manner in which the next person will live. But in social media due to the imminent influence, people always strive to fit in certain social classes just to stay in touch with the current trends in the world. For instance, if a new fashion line of designer clothes is released and someone posts a photo wearing that clothes his/her followers will always be influenced by purchasing the same cloth to be at a bar with the current trend. Social media is emerging to be essential in business as it is perceived to be the marketing platform that takes heed of the needs of consumers. The 21st centur y is characterized by massive technological advancements that have led to the emergence of new methods in which people interact. Previously people were limited to telephone calls or at least sending emails and thus was a preserve of a few individuals with the internet connection. Today, virtually every locality inhabited by people has internet signal and thus people are accessing the World Wide Web from anywhere. With a technological improvement in mobile gadgets such as smartphones, tablets, iPads and even microcomputers, many people have gained access to the internet connection. This has revolutionized the modern era of information processing, and dissemination has become almost instant. Online presence in social sites like Facebook, Twitter, Instagram, WhatsApp has been soaring by each day now running into hundreds of million subscribers, thus creating a new niche of consumers for businesses with an online presence.

Movie 'Guess Who's Coming to Dinner (1967)' review about race

'Guess Who's Coming to Dinner (1967)' about race according to reading 'In Characters - Movie Review Example The following movie is wonderfully and benevolently an entertaining film. Its production is much in the way of arena drawing humor that seems to involve something more severe and difficult than it really looks. Racism becomes the center problem in the movie. In this relation, Jackson’s article reveals that blacks face a higher percentage of racism in the movie production sphere. Basing on the movie, the marriage between the black man and white miss does not go through because of social bias and race. Thus, the article tries to uphold the concept of racism in Hollywood. In relation to acts of the movie, the theme of racism reflects in different situations. Firstly is the determination of white apprehension about race in the current universal privileges period. Moreover, accepted customs hardly ever challenged the people who had run away from thorough media analysis earlier kept for the whites. In rare instances, the movie tries to analyze prejudice around the south. Thus, the result is cautious and straightforward. In this relation, a problem notable in this movie bases on Spenser Stacy and Katherine Hepburn who viewed themselves as very influential and successful white people. Their moment busts when their daughter came in with a black boyfriend. They became disappointed due to the spirit of racism in them (Hamilton137). Basing on the article, people who have been in supremacy for a very long era were the whites. They tended to employ other white in supporting them. In addition, when they saw a chronicle, people involved were white men or particular kinds of their women. However, as several generations come into place different looks come into play. Thus, this integrates all actors around the globe to the movie industry. Basing on above, understanding of racism becomes clear. In relation, the movie is all about the whites and only a few blacks like the black fiancà © emerge. Basing on the

Managerial Accounting And Shareholders Accounting Essay

Managerial Accounting And Shareholders Accounting Essay 1. What obligations did the financial managers have to their shareholders to do whatever is possible to avoid major financial losses associated with these products? According to Ask (2002), all major business institutions nowadays are being forced to continuously upgrade their financial status, technologies, innovate their products and services that they offer as well as extend their customer reach to avoid major financial losses associated with problems about their products particularly in developing countries, and utilize resources through financial strategies. Apparently, the main effect of the situation to the company is that it is forcing all types of costing systems, from small to large scale causes, to amend their current financial strategies and processes, and to restructure their production and processes. Financial manager of Dalkon Shield must set some necessary changes to effectively and efficiently respond to the continuously evolving needs of the company. Financial managers make sure that shareholders get their investments fully. It is also their role to make sure that shareholders are receiving their entitled maximum returns for their investment. To avoid major financial losses associated with these products, financial managers are facing with the task of engaging in different activities that brings value to the shareholders and the company. Financial managers can implement different strategic plans to inform providers and top management for the development of strategies and implementations of plans. Narrowing the companys strategic partners through engagement in narrowly defined financial areas is also helpful for the financial mangers (Chua, 2006). As implementers of strategies, the role of financial managers also consists of shareholder value maximization. Financial managers can increase and create value from the financing, budgeting, and networking activities such as buying assets which create more cash than they cost or they can sell stocks and bonds and other instruments financially which all generate more finances than their costs. When the financial manager will try to a healthy balance between the shareholder and the company needs, they also need to follow ethical standards by ensuring that all statements and their financial transaction are true and correct (Chua, 2006). In this situation, the company has experienced on maximizing their business by smoothly ensuring that all services are working and provide the expertise for the generation of financial System. This is an important in the field of financial management for the company and financial managers should developed basic information and concepts regarding the employed effective strategies to avoid major financial losses associated with these products. The objective of these actions is to identify and present the most important features of product and planning to sell products in a well established amount. These include product analysis, competitor analysis and marketing operations that focus on channel distribution, costing objectives, market analysis, customer satisfaction and a great tool in order to cope with the challenges of product placement. Consumer and environmental analysis are important area made by a continuous effort to make connections and form relationships with finances, custom ers, and finance and distribution channels designed financing strategies. Business network of the company can help the financial managers to contribute to effective supply management that support and investigate the influence of the situation on financial management processes (Ask, 2002). In a perspective of this company, strategies used by the financial manager must suggest that the financial losses be prepared to respond appropriately to random costing agreement with the shareholders. If long-run performance is not greatly impacted by shareholders and if it is caused by random impacts, then firms must monitor these shocks and transform them into opportunities. Importantly, these impacts cannot be readily predicted. Thus the firms must have an agile mechanism scan in conjunction with a flexible marketing organization. Before any of these implications are strongly adopted much more marketing strategy refinement is necessary. The financial strategies employed by financial managers are effective tools that may be used by the marketing manager to aid in more effective planning and strategy development of product and business. This is an important factor that provides framework for more specific mix strategies and tactics in the products or services, distribution, promoti on, and pricing areas (Van Horne Wachowicz, 2005). Another factor to consider is the strategy which is effective tools that may be used by the firm to aid in more effective strategy and planning development. This is an important factor that provides framework for more specific financial mix tactics and strategies. Throughout the years many international business organizations has invested in propagating their marketing strategies as well as the flow of investments. The financial manger must have been investing on effective services and production to aid in its goal. Strategic financing process also affects the decision making as it affects the capital opportunities and company capabilities in developing a total return of investments to their shareholders (Van Horne Wachowicz, 2005). 2. Was the dumping in this case ethical? Those involved in the dumping might have argued that the people receiving the pajamas would not have otherwise had access to such clothing and were notified of the health and safety hazards. Does this affect your feelings about the case? What do you think about the exportation of the Dalkon Shield? Can it be justified because the rate of dying during childbirth in Third World countries is extremely high, and, as such, any effective birth control device is better than none? International laws presented that a firm is dumping if its foreign price is either below its marginal cost or below domestic price. In this case, ethical consideration must be consider by the company since the firm often claim that a low-cost is engaged in a long term strategies in harming domestic consumers and destroying the domestic industry (Viner, 1991). It was also a most unethical way and a clear indication of how money always eclipses the significant issue in this case. Whatever causes that these children would have access to fire-retardant pajamas, they would also not have had opportunity to have kidney cancer had they not been exposed unduly to the chemical toxic for their health. The same is true Dalkon Shield of exportation; many serious and worst physiological problems associated with utilizing this product do not have advantages or benefits. A complete fundamental tenets breakdown in social responsibility will aid such blatantly unethical global practices (Ramadan, 2007). In exportation of the Dalkon Shield, planning strategies in the context social responsibility and safety hazard is important. Exportation management fails because of factors including the current environment, feasible methods and the security system. The planning and resources must be value information. In some areas, failure of information dissemination happens automatically especially when there is a problem with the product itself or the safety and the integration of this information to a certain period. Another dimension of challenge in this kind of market environment is the complex and evolving regulations which this institution conducts business. In contrast, there are handfuls of effective strategies for the exportation of the Dalkon Shield that may help the firm implement strategy from a global perspective. Foremost, the planning must concern with the Dalkon Shield organizational governance, with decisions making capacities, and the processes for making sure that the export d ecisions made are implemented properly. There are several factors for export trends including the market mass liberalization, technological impact, and the ever changing distribution and communication and method worldwide. The safeties in the markets are increasingly becoming more important to public, multinational companies, and this phenomenon directed to philosophy and organizational shift of the export, research and marketing companies. The advantage of this approach to research buying include better coordination and control of the research in many economies, research findings comparability, and better view and understanding of transnational basis in terms of the functions (Viner, 1991). The rate of dying during childbirth in Third World countries is extremely high, and the draw back of focusing too much on material success is the tendency to neglect ethical issues and may tolerate corruption. These firms must be committed in strengthening public confidence and understanding in clinical research and biotechnological expertise in all aspects of the clinical research. Regulations on effective birth control device are better than none because all information and activities of related to this issue must be regulated through information submitted to authority. Moreover, industry related to biotech, pharmaceutical and medical device companies, as well as their regulations and legislations which involves academic organizations, peer associations, patient groups, and the public must assures the safety and ethical considerations in clinical trials through collaboration and working with the public and their stakeholders globally to explore different possibilities and paradigms for contraceptive research and development. The product of the company must promote efficient and better clinical trial process especially in developing new drugs biotechnology while demonstrating the strategic values of clinical outsourcing and reiterating the importance of public contributions as partners in the new treatments and new birth control contribution (Atkinso, 2004). In this case, different laws enforces by the government and other related agencies includes reports which identifies the approved drug products approved on the basis of effectiveness and safety of their products under the Drug, Federal Food, and Cosmetic Act. In terms of controlling contraceptives and other related products, the company requires any manufacturer to dispense by prescription only with exemptions in emergency cases and is closely regulated by other sub laws. These drugs must have a warning on the label when given out to the client. The manufacturer must comply with approved good manufacturing practices set by the agency. It must also have a uses section that presents the uses of the drug under appropriate testing so the client or patient is aware of the definite usage or application. The firm must enforces its regulations through various methods such as investigations, punishments, licenses to improve these processes; and must closely monitor the companys processes in r esponse to testing of the product for safety and efficiency and to adequately label the product to avoid violations of the law (Fishbein, 2005). Q4. Compare and contrast job order and process costing. Support your answer with examples relevant academic references. The job order costing system is used for the estimation of production cost for various jobs included in specific orders of the customer. Within the organizations treating every single job as a single unit output, or when production of different products within a specific time, this costing system type is most important. In this regard, it appears that firms in developing countries need to pay some attention to new techniques, so they can help their society and their country to be able to compete in the international market by conducting studies on these new techniques, and show its advantages and disadvantages. The company should also employ job order and process costing strategy for product development on fact finding, analysis, generation of technical and management plan goals (Atkinso, 2004). Labor hours, materials, and machine hours will be different from a specific product to another and one order of the customer to the next, and may be different further in the demand that is placed inherently on overhead manufacturing. One example of a specific job or customer order is customized production that might need greater resources for support than general activity of production. If a firm specializes for the manufacturings were to produce a specific product patented and designed by another firm, it may need some re-engineering process; materials utilized not used in overall production, or another factor for change such as a different description or product logo. In this case, management would need to be sure that the specific customer order equates all relative costs; otherwise information for product cost will not be correct. In the circumstances where the company is producing different product type within a specific period of time, job order costing system employment would also be applicable as management would require in recognizing the overall actual costs for each product. Service companies may not get benefit as much from job order and process costing as compared to other industries because their costing can be hard to assign as they may not have a visible relationship of cause and effect (Kaplan, 2007). Nowadays, traditional cost systems became unpopular among companies, since these cost systems were designed long time ago for different circumstances. For example, companies used to produce a small number of products and indirect cost (overhead) was quite small, compared to the total cost at that time overhead did not cause any problems to the managers. On the other hand, in the 1980s many companies started produce different variety of products and indirect cost started to play an important role. Therefore, the traditional cost systems are no longer desirable by managers. Managers started to think to change these systems after realizing that these systems are not reliable for managerial purposes anymore. Recently, many companies are facing a real competition in the world market, due the fact that some companies produce high quality products at low costs. For that reason managers attempts to adopt a cost system which can give them accurate information and the exact cost for each produ ct, so managers can take right decisions at the right time (Laughlin, 1995).

Mohandas Ghandi Essay -- Biography Biographies

Mohandas Ghandi Satyagraha. Meaning "force or firmness of truth, Mohandas Gandhi worked and lived by this word. By peaceful, non-violent demonstrations he little by little took hold of the people of India's love and honor and freed them from British rule. This is his story: On October 2, 1869 in Porbandar, India, a region of Queen Victoria, Mohandas Gandhi was born to Kaba Gandhi and his wife. Although his father, Kaba, was the chief Minister for the Maharaja of Porbandar, he and his family lived in a small house and belonged to a Hindu caste of merchants called "banjas." As he grew, Mohandas became a small, shy and skinny boy, afraid of others' opinions. He never spoke out, but although he was never a clever child, others were surprised by his gentleness. At the age of thirteen, he was married to Kastaurbai, a pretty yet strongwilled girl of the same caste. He would now live with his wife, instead of his mother and father whom he had cared for for so long. Before this, Mohandas had told lies, had smoked, and had eaten meat, which was strictly forbidden of Hindus. Now, suddenly, he felt guilty and that he had hurt himself and in some ways those who he cared for. So, in desperation, he told his father, and they cried together. One year later Kaba Gandhi died. Mohandas was sixteen. At eighteen he traveled to England to study law and secretly to see for himself what made the English so powerful. He enrolled in a college of law but quit after one term. He felt that he didn't fit in, so he studied the " Standard Elocutionist" for use and knowledge of proper ettiquitte. After a while he quit this also because he saw no use anymore. Quitting became a popular theme in his early life. Sometimes he quit because he was bored with something and just grew out of it, or sometimes when he just couldn't accomplish anything. For example, he took English dancing and violin lessons to become more distinguished, but he was very clumsy and quit after six lessons. He did not quit every thing though. He worked at some things if he thought that it would in some way help him. He studied material on Common & Roman laws and had to pass major exams on it. Despite all of the quiting and studying, he became a lawyer. He was not a very distinguished or even good one at first, but later became respected by his friends and clients after his work on a case in South A... ...he was killed though, all of that changed. Everyone was sad, and the Hindu people were ashamed that it was one of them who had killed him. People began to worship Gandhi in the ways that he had hated. They knew that if he would have been able to speak a few words before he died he would have said to the people to "have mercy on the misguided Godse", but knowing this, they still hanged his assassin. Gandhi once said: "I have no strength, save what God gives me. I have no authority over my country men, save the purely moral." And he more than anyone knew how weak that authority could be. Over time, Mohandas freed India from the British rule, earning rights and respect for his people and a lasting place in history. In my opinion, like everyone else's. he was a great man putting others ahead of himself, but above all else wanting, hoping, and dying for peace. BIBLIOGRAPHY Franda, Marcus and Vonetta J. " Gandhi, Mahatama." The New Electronic Encyclopedia. 1991, Grolier Electronic Publishing. Iyer, Raghavan. " Gandhi, Mohandas." The World Book Encyclopedia. 1989 ed. Reynolds, Reginald. The True Story of Gandhi, Man of Peace. Chicago: Children's press, 1964.