Strategic management Essay Example | Topics and Well Written Essays - 1500 words - 3

Strategic management - Essay Example More specifically, using the diagram in the Figure 3, Appendix, the firm’s stakeholders could be categorized as follows: a) the Owners should be found at the level of the relevant hierarchy having the strongest interest in the firm’s performance, b) the firm’s employees would follow, c) suppliers would also be interested in the firm’s position in its market – indicating its ability to continue its cooperation with its suppliers, d) customers would be at the next – lower – level; they would be benefited from the firm’s performance – but only up to the point that they could not identify other firm with similar products and lower prices; e) the state would be at the last level of the relevant list; the firm’s performance would be important for the state affecting its contributions in the national economy – tax paid for the firm’s profits. The performance of the firm within its market can be differentiated under the influence of a series of factors. These factors have been identified and explained using the Pestel Analysis; at a next level the industry globalisation drivers are presented – at the level that they are related with the firm’s operational initiatives. In accordance with Neely (2002) ‘the key benefit in the process of deciding what to measure appears to lie in the fact that the process forces management teams to be explicit about their priorities’ (Neely, 2002, p.295). In other words, the identification and the evaluation of key strategic values for the development of corporate activities are quite important for setting the criteria on which the restructuring of the firm’s strategies will be based. In the PESTEL analysis, the firm’s operations are related to specific factors, the following ones: a) Political; it refers to the government’s strategies regarding the entrepreneurial activity in the specific industry; even if in the

Data Protection Act 1998 Essay Example for Free

Data Protection Act 1998 Essay During face to face and telephone conversation you should always be well mannered, presentable and speak with appropriate language and be informative to the conversation at hand. What type of questioning you as a therapist should use; You should always use open and closed questions when dealing with a client, open question e. g. what treatments have you had before. A closed question e. g. have had this treatment before. Personal behaviour; Your personal behaviour should always be professional and informative to the client’s needs so you give the best options to your client with the next professional presentation. Personal professional presentation; Your professional personal presentation should always be clean, neat and fresh smelling and meet the salons rules and regulation, because the first person the client meets and see’s is you, and you should show a good presentation because your jobs is to make the client look and feel more beautiful whilst selling products to them. Data protection and storage information; Data protection and storage of information should always be followed to the data protection act regulations, to avoid any information being found be someone inappropriate and used in a harmful way. This information should be stored away in a locked cupboard or on computer with a password. Timings and costs; Timing and costs should always be memorised and learnt by all staff members to ensure the salon runs efficiently, that the clients are well informed on procedures and prices and so that there is no dispute with the information given and that treatments won go over causing over booking of the therapist and loss of profits for the salon. How to keep payments safe and secure; Payments should be kept safe and secure in a cash register with a key or electronic lock, and only people of authority should have a copy of a copy of the keys or codes. What types of problems that may occur in the salon; Miss-informed treatment prices leading to an unhappy customer. Clients being late for appointments and being turned away or asked to wait due to time keeping the receptionist and therapist has to keep to run a smooth salon. Contra-actions due to a reaction to certain treatments leading to an unhappy client. All of these problems should be referred to the salon manager or owner to deal with, as you as the therapist have no jurisdiction here, unless you are salon manager.

Drug Policies And The War On Drugs Criminology Essay

Drug Policies And The War On Drugs Criminology Essay The War on Drugs is an aggressive drug policy aimed at bringing the fight towards drug suppliers and cartels. It began during Nixons term when he escalated Americas problem with drugs as a moral equivalent of war (Ratliff). Presidents Ford and Carter expanded Nixons resolve when they focused the war by attacking the supply lines of drugs. Reagan followed through by militarising and launching strikes to suppliers and drug cartels and tripling its funds in drug eradication. The War on Drugs went on for years with the United States running a foreign policy that sought to encourage, persuade, bribe, or coerce its neighbouring countries (Ibid) to join them in their giant crusade against drugs. South American countries mostly supported this war because this increased their chances to receive U.S. aid. War on Drugs became a media maelstrom in the mid-80s when basketball stat Len Bias died of cocaine overdose. What followed was the signing of the Drug Policy known as the Anti-Drug Abuse Act that placed the problem of drugs as a national security problem. With the Anti-Drug Abuse Act, the U.S. government started to use military and intelligence forces in the war against drugs. What started as a metaphor actually escalated into reality when the US. Military invaded Panama to seize Manuel Noriega in 1989, who was then imprisoned for drug trafficking. Afterwards, during the Clinton administration, the United States increased its funds in countering the supply-side of drug trafficking. George W. Bush added billions more to the war on drugs effort, though by this time. The so-called war on drugs have become a very unpopular issue and many have become opposed to it. The war on drugs has also lost steam since it has been a foregone priority as the United States has become focused on countering international terrorism. Despite this the debate continues, for almost 40 years in its existence, U.S. has shuffled opinions on what to do with the decades-old policy on the crusade against drugs. Should they hang up their gloves and look for alternative solutions. The government has weighed in the pros and cons of the matter. The pros on the war on drugs are looked in the sociological importance of continuing the crusade. It is believed that drug trafficking is a flagrant disrespect of the law, and society is compelled to punish such rebellion through overt force. Punishment and retribution are the keys to stopping drug trafficking and therefore the justice system should criminalise the activity and all its forms. Therefore, putting traffickers behind bars is part of the literature of war. When theyre shut out, drug availability is reduced; and so when you decrease the availability of drugs, abuse goes down too. In short, the war on drugs is really about tackling the supply side of drugs. The U.S. government directs its efforts in purging all supply lines and drug cartels to stop the availability of drugs. When the United States elevated this priority into their foreign policies, what they actually did was to compel other countries to take care of their citizens in terms of health and safety, protect its youth from becoming corrupted by drugs and pushers. The U.S. war on drugs spread like wildfire reminding that this is not just one countries war, the problem of drugs is a global human problem that everyone should take seriously. In the process, because of the war on drugs, elaborate institutions and industries around the world emerged from prison systems, anti-terrorism, anti-money laundering-governments became more aware. However, the downside of the war on drugs is staggering. To many, the war just ended up as the militarization of Latin America. Mexico is now spending $800 million to a billion a year on the drug war (Tavis), just because they dont want Americans invading them just like what they did in Panama. So Mexicans do it themselves: 90% goes to enforcement and the military to purge drug trafficking and only 10% goes to drug treatment. A good number of local officials argue that good share of that gargantuan budget should have gone to Mexicos under-education, impoverishment, etc. The same goes with Colombia and the rest of South America. To the general opinion of many, the U.S. led war on drugs is just a silent Vietnam War that is putting civil war into a boiling point. Dissidents on the war on drugs argue that the term itself war is an inappropriate metaphor. It gives the wrong idea. Yes, there is nothing wrong about thinking war on drugs in the context of law enforcement. Law enforcement is an indispensable tool in control and outlawing drug market-related violence. Very few contend on this argument. But when you start to think a war on drugs as sending troops to other countries then that is a different matter entirely. This is something many have opposed to, like the way Americans now bitterly opposes the war on Iraq. In this case, the war on drugs truly fits its description, a war that amounts to billions that are operated from a situation room, targeting an exact enemy; the suppliers, the factories, the Colombian drug cartels, the problems they cause. But to operate the war on drugs as if America is up against the Nazis is looking at the problem from the wrong end. Here, drug trafficking runs in two ways: there are the foreign suppliers and theirs the local demand. You just cant solve the problem by military strength when the problem also comes from within? Thus, heres where the biggest criticism of the war on drugs: its too short-sighted. Its examining only one side of the pole. This war on drugs has escalated so far that the U.S. government no longer mind about collateral damage. They want to win the war conventionally. But what should be understood is that this is a war against people. For example, Colombia is a place of continued violence between left-wing guerrillas and right-wing militias. Peasants have nothing more to live on besides growing coca because theres demand for it. Now, with the war on drugs, the United States want to stop growing coca at all costs, without giving aid to peasants to do other profitable livelihoods. So the peasants end up as collateral damage. By killing the supply lines, the U.S. believes that the demand will die. And so they keep focusing on the killing supply by all means possible, even by arrogant policies such as the potential annual decertification of Latin American government that are determined not to cooperate with the United States (Ratliff). Why the war on drugs became so criticised, it is because of this very policy, which has strained and continues to strain relations with Latin American countries. The negative effect of these policies has weakened foreign institutions of garnering support from their own countries, especially if they adhere to the United States. In fact, theres a growing number of Hispanics that are already disenfranchised with the whole crusade (Tavis). There are generally two factions: one started supporting guerillas (who wants America to be decertified) and the other looking for ways to distance themselves with the U.S. and not cooperate like Mexico has done. For experts, they are of a strong opinion that America should not continue the war on drugs on the basis that focusing only on the supply side of the problem will not amount to anything, it will only be a waste of money. What U.S. should do is start facing the reality that the real problem comes from the demand side; that the root of the problem is from within. You cant call a war when the problem is within. You need alternative solutions. One example is to look at the problem not as a security threat or even a delinquency but rather as a health problem, stemming from a lack of education or youth cultural disillusionment. The way to treat drugs is to spend more money on schools, treatment efforts, not on prisons and on the military. Another problem with the war on drugs is that it looks at very limited solutions. For example, the so-called war is too focused on marijuana (Conan). Other drugs, like crack and other harder drugs, tend to be overlooked. Violent crimes are mostly committed by someone on hard drugs, not on marijuana. Now if they only focused on harder drugs, you can get a little more done. After President Obamas inauguration, the new drug policy was to drop the war on drugs term from the language of the administration. This is a drastic change from the approach of previous presidents and steer the new drug policy towards prevention harm reduction strategies that is much favoured in Europe (Glaister). The new administration embraced new drug policies supporting federally funded needle exchanges with an aim, according to David Johnson, assistant secretary of state, was to establish a policy based on public health needs (ibid). The objective of this new policy that replaces the war on drug stance is to create stronger and broader regulations than the drug policies in the past. The executive director of the Drugs Policy Alliance, Ethan Nadelman, has long sought for alternatives to the old policy of war on drugs, and the changed that Obama instigated was a welcome relief to his organisation. Washington officials reaffirmed in a congressional meeting held in March 2009 that the administration had to shift the age-old national drug policy as a response to the growing trend that drug-related violence has been transferring from the US to Mexico despite the aggressive military campaign against drug suppliers. The meeting followed a report from former presidents of South America, particularly, Brazil, Colombia and Mexico, who all opined that the war on drugs policy was a complete and utter failure (Ibid). Many conservative politicians in the South blamed the United States for emphasising more on criminalising drug use and drug supplying rather than tackling the addiction problem itself. The criminalization and the aggressive approach of the war on crime only create an increase death toll. The new approach must, therefore, be based on public health. Obama is looking at a more proactive side in creating a new drug policy aimed at reform and rehabilitation, rather than intimidation. This is a lesson learned from the damages that the War on Drugs has created. Through over-criminalization, it has so far assaulted American civil liberties, clog the jails and courts. This new policy also paved the way for police corruption, like what happened in the 1999 Rampart Scandal case that involved department-wide corruption and racketeering of the LAPD. The war on drugs is also open for abuse by misguided police officers that confiscate drugs to criminals and then enrich themselves by reselling it. Worse, the war on drugs has so far cost the taxpayers approximately $3.2 billion during the Reagan and Bush presidency and then another set of billions were spent during Clintons administration (Drug Policy). Furthermore, because of it, the United States was suddenly propelled as having the highest per-capita incarceration rate for any nation in the world. The problem is drug use has not decreased and crimes committed in connection with addiction and drug use continue the upward trend. It seems there is no stopping a great number of Americans of wanting various drugs and they always have the money to buy a quick drug fix. $3.2 billion was spent on law enforcement, not a dollar went to rehab centres. Most of them went to the military to combat alongside Latin American governments to build para-militaries against cartels. What should have been done is to spent that money back home and treat the root of the problem of addiction and lack of education on drug use. Obama, who described in his autobiography having used marijuana and cocaine, steered his administration to finally get rid of the war on crime and treat needle exchanges for intravenous drug users a healthcare issue (Sullivan). Because it is true, obviously, that putting drug users in jail would not do anything concrete if you dont treat them. Once released, they return to the same neighbourhood and is back to the same problem. This is what the new drug policy should be addressing.

Insight into Human Nature in Geoffrey Chaucers Canterbury Tales :: Canterbury Tales Essays

Insight into Human Nature in Geoffrey Chaucer's Canterbury Tales The Canterbury Tales by Geoffrey Chaucer, (written c. 1387), is a richly varied compilation of fictional stories as told by a group of twenty-nine persons involved in a religious pilgrimage to Canterbury, England during the fourteenth century. This journey is to take those travelers who desire religious catharsis to the shrine of the holy martyr St. Thomas a Becket of Canterbury. The device of a springtime pilgrimage provided Chaucer with a diverse range of characters and experiences, with him being both a narrator and an observer. Written in Middle English, each tale depicts parables from each traveler. England, in Chaucer's time, was a nation of social and economic growth. Medievalism was a dominant influence in the lives of Englishmen, but the Renaissance had assumed definite form, and the country stood on the threshold of the modern world. Medieval Europeans asserted that the ideals of spiritual community, social groups and national interests were greater than individualism. In Chaucer's time, there were many manifestations of rebellion against the old order of things, including an influx of mysticism and materialism. People demanded more voice in the affairs of their government and viewed the Catholic Church as corrupt. An emerging religious reformation, which placed emphasis on individualism and national patriotism, along with the upsurge of manufacturing and commerce, gave rise to the English middle class. The Canterbury Tales is a literary work that deals with the personal concerns and solutions of an evolving Medieval society. In Medieval Europe pilgrimages were common for personal reflection, penance, and spiritual renewal. Chaucer chose the framework of a pilgrimage for its naturally plausible diversity of people and mix of pious purpose and holiday spirit. Geoffrey Chaucer, England's first great poet, was born in 1343, during a time of social, political, religious and literary ferment. Chaucer, who was the descendent of a prosperous family from Ipswich, received the impetus for writing from fourteenth-century Italian and French poets. Chaucer--whose father was a successful wine dealer in London and whose mother, Agnes de Compton, a member of the English court--was reared in an intellectual environment of high society. He was well educated, having studied at the Universities of the Court. He lived among nobility in his service to the Court. The project of writing The Canterbury Tales took Chaucer thirteen years of unremitting toil, a work that was both continually evolving and unfinished.

Marketing Metrics Answers

Metrics Mastery Worksheets are designed to be in class exercises that your students can work on in class. This is a master document that provides all worksheets questions and answers. You can modify or change it as needed in order to prepare one page two sided exercises for your students to hand out in class. You can also easily turn the answers into powerpoint slides to review the answers in class. Table of Contents Worksheet: Metric 1 Expense Types2 Worksheet: Metric 2 Percentage Change5 Worksheet: Metric 3 Market Share & Market Analytics8 Worksheet: Metric 4 Contribution Margin11Worksheet: Metric 5 Mark-up & Margin14 Worksheet: Metric 6 Pricing Wholesale to Retail17 Worksheet: Metric 7 Break-Even20 Worksheet: Metric 8 Return on Marketing Investment (ROMI)23 Worksheet: Metric 1 Expense Types 1) The Comfy Chair Company makes reclining chairs at its plant and sells them exclusively through its own retail store. It has the following expenses: Plant rent and taxes = $12,000. 00 Office and management expenses = $220,000. 00 Machinery and equipment purchased = $100,000. 00 Direct materials = $27. 00/chair Direct labour = 4 hours/chair @ $14. 00/hour Transportation = $5. 0/chair Commercial store front unit purchase = $500,000. 00 Advertising costs = $100,000. 00 Sales staff wages before commissions = $250,000. 00 Commission = $12. 00/chair a) Identify the Comfy Chair Company’s variable costs. b) What is the total cost to produce and sell each reclining chair? c) Identify the Comfy Chair Company’s fixed costs. d) What are the total fixed costs? e) Identify the one-time fixed costs incurred by the Comfy Chair Company. f) What are the total one-time fixed costs? Answer: (a)Direct materials = $27. 00/chair Direct labour = 4 hours/chair @ $14. 0/hour Transportation = $5. 00/chair Commission = $12. 00/chair (b)$100. 00/chair (c)Plant rent and taxes = $12,000. 00 Office and management expenses = $220,000. 00 Advertising costs = $100,000. 00 Sales staff wages = $250,000. 00 (d)$582,000. 00 (e)Machinery and equipment purchased = $100,000. 00 Commercial store front unit = $500,000. 00 (f)$600,000. 00 2) Thompson Toiletries, Inc. has developed an addition to its mens’ cologne line tentatively branded Ode d’Toad Cologne. It costs 45 cents to produce each 60mL bottle, and heavy advertising expenditures in the first year would cost $900,000.Ode d’Toad Cologne is priced at $7. 50 for a 60mL bottle. a) What is the variable cost per unit to produce a bottle of Ode d’Toad? b) What are the total fixed costs to produce and sell Ode d’Toad? Answer: (a)Variable cost per unit = $0. 45 (b)Total fixed costs = $900,000 3) Executives of Radical Recordings Ltd. produced an album entitled Sunshine/Moonshine by the Starshine Sisters Band. The cost and price information was as follows: |Album cover |$1. 00 | |Songwriter’s royalties |$0. 0 | |Recording artist’s royalties |$0. 70 | |Direct material and labour cost s to produce each album |$1. 00 | |Cost of producing the album (studio fee, advertising, promotional|$100,000. 00 | |expenses, etc) | | |Selling price |$7. 00 | ) Identify the variable costs, and amounts, that go into producing each album b) Identify the fixed costs, and amount, for producing the album Answer: a) Variable costs: Album cover$1. 00 Songwriter’s royalties$0. 30 Recording artist’s royalties$0. 70 Direct material and labout$1. 00 Total Variable Cost per Unit$3. 00 b) Fixed costs: Cost of producing the album = Total Fixed Costs = $100,000. 00 4) You are the owner of a travel agency that sells trips to university students. You are creating a package to sell an overnight trip to Blue Mountain. Identify the fixed and variable costs associated with the package ased on the information below. After identifying the costs, calculate the total cost based on 3 full busses of students. The package will include ski lift tickets, access to a VIP party and one night†™s hotel accommodation. It will cost you $300 to print 1,000 full colour posters and another $400 to purchase party supplies for the VIP Party. Each room costs $80 per night, with four people per room. A bus holds 40 people and the bus company will charge you $500 per bus. The ski hill is offering you a rate of $20 per ski lift pass. You also know that you need to purchase a ? page ad in the campus paper at a cost of $100 per week for 6 weeks. Variable Costs |Total |Fixed Costs |Total | |(description & Unit Cost) | |(Description) | | |Busses ($500/bus) |$1500 |Posters |$300 | |Hotel Rooms ($80/room) |$2400 |Party Supplies |$400 | |Ski lift passes ($20/pass) |$2400 |Newspaper ad ($100/wk) |$600 | | | | | | | | | | | | | | | | |Total Variable Costs |$6300 |Total Fixed Costs |$1300 | Worksheet: Metric 2 Percentage Change 1) Ed’s is a small deli, which has had great success in its second year of operation. Revenues in Year 2 are $570,000, compared with $380,000 in Year 1. What is Ed’s year-over-year sales growth rate? Answer: Year-over-Year Sales Growth = (Year 2 – Year 1) / Year 1 * 100% = ($570,000 – $380,000) / $380,000 * 100% = 50% 2) A pair of jeans that normally sells for $75 is marked down 30% and then reduced at the cash register another 10%?Is this a total reduction of 40%? If not, what is the percent reduction? Answer: Let Price 1 be the initial price of $75, let Price 2 be the price after the 30% mark down, and Price 3 be the price after additional 10% reduction at the cash register. Initial Reduction = -30% = (Price 2 – Price 1) / Price 1 -0. 3 = (Price 2 – $75) / $75 -0. 3 * $75 = Price 2 – $75 Price 2 = -0. 3 * $75 + $75 = $52. 50 Second Reduction = -10% = (Price 3 – Price 2) / Price 2 -0. 1 = (Price 3 – $52. 50) / $52. 50 -0. 1 * $52. 50 = Price 3 – $52. 50 Price 3 = -0. 1 * $52. 50 + $52. 50 = $47. 25 Total Percent Reduction = (Price 3 – Price 1) / Price 1 * 100% = ($47. 5 – $75) / $75 * 100% = 37% 3) A small retain chain posts impressive percentage growth figures, moving from $58 million to $107 million in sales from one year to the next. Despite this dynamic growth, however, analysts cast doubt on the firm’s business model, warning that its existing stores’ growth measure suggests that its concept is failing. Based on the chart below, and assuming that stores were opened on the first day of Years 1 and 2: What is the retail chain’s year-over-year sales growth rate? What is the year-over-year sales growth or decrease for each store, as appropriate? What is the same store (existing and not expansion) year-over-year growth? Store |Opened |Revenue Year 1 (millions) |Revenue Year 2 (millions) | |A |Year 1 |$10 |$9 | |B |Year 1 |$19 |$20 | |C |Year 1 |$20 |$15 | |D |Year 1 |$9 |$11 | |E |Year 2 |n/a |$15 | |F |Year 2 |n/a |$12 | |G |Year 2 |n/a |$7 | |H |Year 2 |n/a |$18 | | | |$58 |$107 | Answer:Chain-wide Year-over-Year Sales Growth = (Year 2 – Year 1) / Year 1 * 100% = ($107 – $58) / $58 = 84. 5% Store A Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($9 – $10) / $10 = -10% Store B Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($20 – $19) / $19 = 5. 26% Store C Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($15 – $20) / $20 = -25% Store D Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($11 – $9) / $9 = 22. 22% Same Store Sales Year 1 = $10 + $19 + $20 + $9 = $58 million Same Store Sales Year 2 = $9 + $20 + $15 + $11 = $55 million Same Store Year-over-Year Growth = (Year 2 – Year 1) / Year 1 * 100% = ($55 – $58) / $58 = – 5. 17% ) Do you agree with the analysts’ position regarding the retail chain in question 3, why or why not? If you were the owner of the retail chain would you continue to open stores? If not what would you do? Answer: – Agree with the analysts. Existing stores sales decreased from Year 1 to Year 2; growth declined 5. 17%. – I would not continue to open stores. I would address the decline in revenue / find out why the stores have negative growth in year 2. Worksheet: Metric 3 Market Share & Market Analytics Use the industry overview below to answer the questions that follow: Mobile Phones in the United States The mobile phone market in the United States covers the sales of mobile phone devices, smart phones, and PDAs (personal digital assistants).Table X below provides the annual sales volume of mobile phones from 2004 to 2009. Table XX details the market share of the top handset manufacturers. Table 1: US Mobile Phones: Sales Volume & Value 2004-2009 | |2004 |2005 |2006 |2007 |2008 |2009 | |‘000 units |66,556. 1 |87,543. 1 |110,228. 1 |120,629. 4 |130,309. 9 |134,673. 5 | |US$ bn |4. 1 |5. 4 |6. 9 |8. 3 |10. 1 |10. 6 | Table 2: Mobile Phones Company Shares 2005-2009 % retail revenue share |2 005 |2006 |2007 |2008 |2009 | |Samsung America Inc |15. 7 |15. 1 |17. 3 |22. 1 |25. 4 | |L. G. Electronics USA |15. 9 |16. 5 |15. 2 |20. 6 |21. 5 | |Motorola Inc |30. 4 |34. 8 |33. 5 |22. 8 |16. 4 | |Kyocera International Inc |5. 4 |4. 9 |4. 0 |9. 2 |9. 9 | |Research in Motion Ltd |0. 7 |1. 1 |2. |6. 0 |9. 0 | |Apple Inc |- |- |- |4. 9 |7. 4 | |Nokia United States |15. 4 |18. 1 |12. 5 |7. 5 |6. 5 | |Sanyo North America Corp |4. 3 |4. 2 |4. 5 |- |- | |Apple Computer Inc |- |- |1. 4 |- |- | |Others |12. 1 |5. |9. 0 |6. 9 |3. 8 | |Total |100. 0 |100. 0 |100. 0 |100. 0 |100. 0 | 1) What is the annual 2009 revenue in dollars of the top 4 mobile phone companies? Answer: Revenue Market Share (%) = Revenue ($) / Total Market Sales Revenue ($) Revenue ($) = Revenue Market Share (%) * Total Market Sales Revenue ($) Samsung America Inc: Revenue = 25. 4% * $10. 6 billion = 0. 254 * $10. 6 billion = $2. 6924 billion L. G. Electronics USA: Revenue = 21. 5% * $10. 6 billion = 0. 215 * $10. 6 bill ion = $2. 279 billionMotorola Inc: Revenue = 16. 4% * $10. 6 billion = 0. 164 * $10. 6 billion = $1. 7384 billion Kyocera International Inc: Revenue = 9. 9% * $10. 6 billion = 0. 099 * $10. 6 billion = $1. 0494 billion 2) If the performance of the US mobile phone market is expected to continue to grow from 2009 to 2012 at a rate of 5% per year, what will the size of the market be by the end of 2012? Answer: Revenue 2009 = $10. 6 billion Revenue 2010 = Revenue 2009 + 5% * Revenue 2009 = $10. 6 billion + 0. 05 * $10. 6 billion = $10. 6 billion + $0. 53 billion = $ 11. 13 billion Revenue 2011 = Revenue 2010 + 5% * Revenue 2010 = $11. 13 billion + 0. 05 * $11. 13 billion = $11. 3 billion + $0. 5565 billion = $11. 6865 billion Revenue 2012 = Revenue 2011 + 5% * Revenue 2011 = $11. 6865 billion + 0. 05 * $11. 6865 billion = $11. 6865 billion + $0. 584325 billion = $12. 270825 billion = $12. 271 billion 3) Large retail chains form a leading distribution channel in the US mobile phone marke t, accounting for 28% of the total value in 2009. In comparison, wireless service providers account for 23%, independent retailers 15%, and other sources account for 32%. Based on the 2009 revenues for the mobile phone market in the US, what is the share of revenue in dollars for each of the different distribution channels? Answer:Revenue Market Share (%) = Revenue ($) / Total Market Sales Revenue ($) Revenue ($) = Revenue Market Share (%) * Total Market Sales Revenue ($) Large Retail Chains: Revenue = 28% * $10. 6 billion = 0. 28 * $10. 6 billion = $2. 968 billion Wireless Service Providers: Revenue = 23% * $10. 6 billion = 0. 23 * $10. 6 billion = $2. 438 billion Independent Retailers: Revenue = 15% * $10. 6 billion = 0. 15 * $10. 6 billion = $1. 590 billion Other: Revenue = 32% * $10. 6 billion = 0. 32 * $10. 6 billion = $3. 392 billion 4) Calculate the Three Firm Concentration Ratio and the Herfindahl Index for the US Mobile Phone market (using 2009 market share values).What can you infer about the market concentration from these two metrics? Answer: Three Firm Concentration Ratio = 25. 4% + 21. 5% + 16. 4% = 63. 3% Herfindahl Index = Sum ([market share)(2] = Sum (. 254(2 + . 215(2 + . 164(2 + . 099(2 + . 090(2 + .074(2 + . 065(2 + . 038(2) = 0. 167 With the top 3 companies accounting for 63. 3% of the market and a Herfindahl Index of 0. 167 the market is not highly concentrated. 5) You have just become the Director of Retail Sales for a large US retail chain. What impact will the growing sales of mobile phones have on your business? Answer: – With a 5% increase per year, impact will be minor. Large retail chains sell thousands of products. There will likely be a similar increase in related products, such as chargers, skins, cases, travel chargers, prepaid phone cards, etc. – There may be a need to increase inventory levels and shelf space devoted to mobile phones and related products – There may be a slight increase in consumer flow i nto stores, which would affect cross and upselling other products to consumers walking in for mobile phones. Worksheet: Metric 4 Contribution Margin 1) Mohan, an artist, draws caricatures on the waterfront pier. It costs him approximately $5 in materials (paper and markers) for each caricature he makes. He sells each caricature for $20. Calculate the contribution margin in terms of dollars and percent. Answer: Contribution Margin ($) = Revenue – COGS = $20 – $5 = $15Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] *100% = [($20 – $5) / $20] * 100% = [$15 / $20] * 100% = 0. 75 * 100% = 75% 2) The Hotel Grill Bar sells a set lunch for $12. The food cost of sales used in producing each set lunch is $5. Additional variable costs are $3 per lunch. The fixed costs of the restaurant are $3 per meal. What is the contribution margin expressed in dollars a nd percent? Variable Expenses = $5 + $3 = $8 Contribution Margin ($) = Revenue – Variable Expense = $12 – $8 = $4Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] * 100% = [($12 – $8) / $12] * 100% = $4 / $12 * 100% = 0. 33 * 100% = 33. 3% 3) You are an online retailer of CDs, promoting sales via a ‘no postage and packaging’ offer. You purchase your CDs from record companies for $18. 75. Packaging and a padded envelope cost $1. 00 per CD; and postage is $2. 00. If you sell the CDs for $25 what is your contribution margin in dollars and percent? Variable Expenses = $18. 75 + $1. 00 + $2. 00 = $21. 75Contribution Margin ($) = Revenue – Variable Expense = $25 – $21. 75 = $3. 25 Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sa le Price per Unit] * 100% = [($25 – $21. 75) / $25] * 100% = [$3. 25 / $25] * 100% = 0. 13 * 100% = 13% 4) You are the owner of an exclusive nightclub that is considering holding a New Year’s Eve party. You have determined that you need a minimum contribution margin of 40% in order to turn a profit for a single night event at your club.Additionally, in hosting all-you-can-eat and all-you-can-drink events in the past, you know that the food cost is $20 per person and the beverage cost is $17 per person. Finally, the house band charges a fee of $5 per person in attendance. What should you charge for a ticket? Answer: Variable Expenses = Food + Beverage + Band = $20 + $17 + $5 = $42 Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)]* 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] * 100% 40% = [(Sale Price per Unit – $42) / Sale Price per Unit] * 100% 0. 0 * Sale Price per Unit = Sale Price per Unit – $42 $42 = Sale Price per Unit – 0. 4 * Sale Price per Unit $42 = (1 – 0. 4) * Sale Price Per Unit Sale Price per Unit = $42 / 0. 6 Sale Price per Unit = $70 5) As the owner of the nightclub in question 4, you learn that a neighbouring nightclub is selling tickets for their New Year’s Eve party at $60/ticket, which is making your event less attractive. Should you lower your ticket price to match theirs given the variable costs in question 4 and knowing that your fixed costs will be $20/person? If not, why not and what might you do to increase tickets sales? Answer: No. The nightclub would lose $2 per ticket sold if they matched the neighbouring club’s price.To increase sales: – Reduce ticket price and reduce variable costs (lower priced food, drink, band) – Ensure that event is differentiated in a way that justifies the premium ticket price – Perhaps the other club is not offering all-you-can-eat or all-you-can-drink, or the b and is not as well-known, if that’s the case, ensure that your potential customers are aware of the differences Worksheet: Metric 5 Mark-up & Margin 1) A computer software retailer uses a markup rate of 40%. If the retailer pays $25 each for computer games sold in its stores, how much do the games sell for? Answer: The markup is 40% of the $25 cost, so the markup is: (0. 0) * ($25) = $10 Then the selling price, being the cost plus markup, is: $25 + $10 = $35 Therefore the games sell for $35. 2) A golf pro shop pays its wholesaler $40 for a certain club, and then sells that club to golfers for $75. What is the retail markup rate? Answer: The gross profit in dollars is calculated as sales price less cost: $75 – $40 = $35 The markup rate is then calculated: Markup (%) = Gross Profit / Cost *100 = $35 / $40 *100 = 87. 5% 3) A shoe store uses a 40% markup on cost. Find the cost of a pair of shoes that sells for $63. Answer: The cost of the shoes is calculated as follows: Se lling Price = Cost + Markup ($) Cost + (Markup (%) * Cost) $63 = Cost + (40% * Cost) $63 = Cost + (0. 4 * Cost) $63 = (1 + 0. 4) * Cost $63 = 1. 4 * Cost Cost = $63 / 1. 4 = $45 4) In 2009, Donna Manufacturing sold 100,000 widgets for $5 each, with a cost of goods sold of $2. What is the company’s margin? Identify a way that Donna Manufacturing can increase its profit margin? Answer: First we have to calculate the gross profit: Gross Profit = Selling Price – Cost of Goods Sold = $5 – $2 = $3 Now we can calculate the margin: Margin (%) = Gross Profit / Sales * 100 = $3 / $5 * 100 = 60% Ways to increase the profit margin: – Decrease cost of material – Decrease cost of manufacturing Increase sales price per unit – Decrease COGS 5) If a product costs $100 and is sold with a 25% markup at a retail store, what would be the retailer’s margin on the product? What should be the markup and selling price if the retailer desires a 25% margin? Why might the retailer be seeking to increase their margin? Answer: a) To calculate the margin, we first have to determine the sales price: Markup ($) = Markup (%) * Cost = 25% * $100 = $25 Selling Price = Cost + Markup ($) = $100 + $25 = $125 Margin (%) = Markup / Price * 100 = $25 / $125 * 100 = 20% Therefore the retailer’s margin would be 20% when the product is sold at a 25% markup. ) To calculate the markup and selling price at a 25% margin: Selling Price = Cost / (1 – Margin (%)) = $100 / (1 – 25%) = $100 / (1 – 0. 25) = $133. 33 Markup ($) = Selling Price – Cost = $133. 33 – $100 = $33. 33 Markup (%) = Markup ($) / Cost * 100 = $33. 33 / $100 * 100 = 33. 33% Therefore to obtain 25% margins, the product would have to be sold at $133. 33 with a markup of 33. 33%. c) Reasons for increase include: – Increase in fixed costs (rent, tax, commission, wages, etc. ) – Increase in demand and/or decrease in supply – Other compet itors/retailers charge more for the product and the higher margin is a result of increasing sales price to match Worksheet: Metric 6 Pricing Wholesale to Retail ) You are a manufacturer of widgets that sells your products to a wholesaler who in turn sells directly to retailers. You have developed a new widget and you know that your competition’s product retails for $23 in hardware stores. You know yours is slightly better, and are pretty sure your product could sell for $27. Assuming a retail margin of 33. 3% and a wholesale margin of 25%, what is the wholesaler’s selling price, and how much can you sell the widgets to the wholesaler for? Answer: If the suggested retail price of the widget is $27, then: Wholesaler Selling Price ($) = Retail Selling Price * [1 – Retail Margin (%)] = $27 * (1 – 33. 3%) $27 * (1 – 0. 333) = $18. 00 Manufacturer Selling Price = Wholesale Selling Price * [1 – Wholesale Margin] = $18. 00 * (1 – 25%) = $18. 00 * (1 – 0. 25) = $13. 50 2) As a small appliance manufacturer, your cost to manufacture and package your coffee maker is $10/unit. You want this to be a cash cow, so you decide to sell the coffee maker to your wholesaler for $19/unit. You know that the wholesaler’s margin is 25%, and that retailers typically take 33. 3% margins on small appliances. What will your coffee maker retail for rounded to the nearest whole number? Answer: Manufacturer Selling Price = Wholesale Selling Price * [1 – Wholesale Margin]Wholesale Selling Price = Manufacturer Selling Price / [1 – Wholesale Margin] = $19 / (1 – 25%) = $19 / (1 – 0. 25) = $25. 33 Wholesale Selling Price = Retail Selling Price * [1 – Retail Margin] Retail Selling Price = Wholesale Selling Price / [1 – Retail Margin] = $$25. 33 / (1 – 33. 3%) = $25. 33 / (1 – 0. 333) = $37. 98 Therefore the coffee maker will retail for $38. 00 3) A bearing manufacturer buys raw ma terials for $0. 50 per unit, turns the raw materials into a roller bearing, and then sells the bearings to a wholesaler for $1. 00 per unit. The wholesaler then sells the bearings to retailers for $2. 00 per unit, and finally consumers buy the bearings for $3. 00 per unit.What is the per unit margin in dollars for the manufacturer, wholesaler and retailer? What is the percentage margin for the manufacturer, wholesaler and retailer? What is the per unit margin in dollars and percentage margin for the entire chain? Answer: (a) Manufacturer margin ($) = $1. 00 – $0. 50 = $0. 50 Wholesaler margin ($) = $2. 00 – $1. 00 = $1. 00 Retailer margin ($) = $3. 00 – $2. 00 = $1. 00 (b)Manufacturer margin (%) = $0. 50 / $1. 00 * 100 = 50% Wholesaler margin (%) = $1. 00 / $2. 00 * 100 = 50% Retailer margin (%) = $1. 00 / $3. 00 * 100 = 33. 3% (c)Chain margin ($) = $3. 00 – $0. 50 = $2. 50 Chain margin (%) = $2. 50 / $3. 00 * 100 = 83. 3% 4) If the raw material cost goes up by $0. 5 per unit for the bearing manufacturer in question 3, what will be the retail price charged to consumers if all members in the chain maintain the same percent margin? What is the effect of the raw material increase to the consumer? Why is it important to understand channel margins and pricing practices? Answer: (a) Manufacturer margin = 50% Wholesaler margin = 50% Retailer margin = 33. 3% Raw material cost = $0. 50 + $0. 25 = $0. 75 Manufacturer margin = (Price – Cost) / Price * 100 50 = (Price – $0. 75) / Price *100 0. 5 * Price = Price – $0. 75 $0. 75 = Price – 0. 5 * Price $0. 75 = Price (1 – 0. 5) Price = $0. 75 / 0. 5 = $1. 50 Therefore the manufacturer sells the bearings for $1. 50 Wholesaler margin = (Price – Cost) / Price * 100 50 = (Price – $1. 0) / Price *100 0. 5 * Price = Price – $1. 50 $1. 50 = Price – 0. 5 * Price $1. 50 = Price (1 – 0. 5) Price = $1. 50 / 0. 5 = $3. 00 Therefore the whol esaler sells the bearings for $3. 00 Retailer margin = (Price – Cost) / Price * 100 33. 3 = (Price – $3. 00) / Price *100 0. 333 * Price = Price – $3. 00 $3. 00 = Price – 0. 333 * Price $3. 00 = Price (1 – 0. 333) Price = $3. 00 / 0. 667 = $4. 50 Therefore the retailer sells the bearings for $4. 50 (b) The price has increased by $1. 50 to the consumer (or 50% increase). (c) To evaluate the effects of price changes within the channel to the end consumer. Worksheet: Metric 7 Break-Even ) Apprentice Mousetraps wants to know how many units of its â€Å"Magic Mouse Trapper† it must sell to break even. The product sells for $20. It costs $5 per unit to make. The company’s fixed costs are $30,000. Answer: Break-Even Volume (#) = Fixed Costs ($) / Contribution per Unit ($) Contribution per Unit = Sales Price per Unit – Variable Cost per Unit = $20 – $5 = $15 Break-Even Volume (#) = $30,000 / $15 = 2,000 mousetraps 2) Apprentice Mousetraps wants to know how many dollars’ worth of its â€Å"Deluxe Mighty Mouse Trapper† it must sell to break even. The product sells for $40 per unit. It costs $10 per unit to make. The company’s fixed costs are $30,000. Answer:Break-Even Revenue ($) = Fixed Costs ($) / Contribution Margin (%) Contribution Margin (%) = Contribution per Unit / Selling Price per Unit Contribution per Unit ($) = Price per Unit – Variable Cost per Unit = $40 – $10 = $30 Contribution Margin (%) = $30 / $40 * 100 = 75% Break-Even Revenue ($) = $30,000 / 75% = $40,000 -OR- Break-Even Revenue ($) = Break-Even Volume (#) * Price per Unit ($) Break-Even Volume (#) = Fixed Costs ($) / Contribution per Unit ($) Contribution per Unit = Sales Price per Unit – Variable Cost per Unit = $40 – $10 = $30 Break-Even Volume (#) = $30,000 / $30 = 1,000 units Break-Even Revenue ($) = 1,000 * $40 = $40,000 3) John’s Clothing Store employs three salespeople.It gene rates annual sales of $1 million and an average contribution margin of 30%. Rent is $50,000. Each sales person costs $50,000 per year in salary and benefits. How much would sales have to increase for John to break even on hiring an additional salesperson? Answer: If the additional fixed cost of a salesperson is $50,000 and with an average contribution margin of 30%, then: Break-Even Revenue ($) = Fixed Costs ($) / Contribution Margin (%) = $50,000 / 30% = $166,666. 67 Therefore sales would have to increase by $166,666. 67 for John to break even on hiring an additional salesperson. 4) A corn farmer wishes to identify how many bushels of corn he must sell to cover his fixed cost at a given price.The farmer has costs consisting of $500 in real estate taxes, $700 interest on a bank loan, and $800 in other fixed expenses. The variable cost per bushel is $1, and covers labour, corn seed, herbicides and pesticides. If the price per bushel is $2, how many bushels must he sell to break even? Answer: Break-Even Volume (#) = Fixed Costs / Contribution per Unit Fixed Costs = $500 + $700 + $800 = $2000 Contribution per Unit ($) = Price – Variable Cost per Unit = $2 – $1 = $1 Break-Even Volume (#) = $2000 / $1 = 2000 bushels 5) If the farmer in question 4 sells only enough bushels to break even, what is his annual profit? Identify two ways the farmer could increase his annual profit.Answer: Farmer’s annual profit = $0. The farmer could increase his profit by: – Growing more corn – Increasing the price he charges per bushel – Reducing his costs: – Pay off loan or find lower interest rate – Reduce labour costs – Find lower seed costs – Find lower herbicide and pesticide costs – Changing to a more lucrative crop – Find alternative use for the land that offers a better return Worksheet: Metric 8 Return on Marketing Investment (ROMI) 1) A marketer is evaluating two marketing campaigns. It is esti mated that Campaign 1 would generate incremental revenues of $250,000, at an incremental cost of $50,000 and a contribution margin of 30%.Campaign 2 would generate incremental revenues of $50,000, at an incremental cost of $20,000 and a contribution margin of 50%. If the marketer is basing their decision solely on ROMI, which campaign should they go ahead with? Answer: ROMI for Campaign 1 is found by: ROMICampaign1 = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($250,000 * 30% – $50,000) / $50,000 = 50% ROMICampaign2 = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($50,000 * 50% – $20,000) / $20,000 = 25% Therefore the marketer should select Campaign 1. 2) A clothing retailer is considering investing in a newspaper advertising campaign to generate more sales.The campaign is expected to cost $3,000 in creative agency fees and $9,000 in circulation costs, while increasing revenues from $110,000 to $170,000. The retailer’s contribution margin averages 25%. What would be the return on the marketing investment of the newspaper campaign? Answer: Incremental Revenue = $170,000 – $110,000 = $60,000 Marketing Costs = $3,000 + $9,000 = $12,000 ROMI = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($60,000 * 25% – $12,000) / $12,000 = 25% 3) An alternative option for the clothing retailer (in the previous question) is to invest in a direct mail campaign targeting previous customers – only a fraction of the reach of the newspaper campaign .The cost of the direct mail campaign would be $1,000, but would only result in increasing revenues to $150,000. What is the return on marketing investment in this case? Answer: Incremental Revenue = $150,000 – $110,000 = $40,000 ROMI = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($40,000 * 25% – $1,000) / $1,000 = 900% 4) If the clothing retailer (in the previous questions) decides to execute both the newspaper and direct mail campaign what would be the combined return on marketing investment. Answer: Newspaper Incremental Revenue = $60,000 Direct Mail Incremental Revenue = $40,000 Total Incremental Revenue = $60,000 + $40,000 = $100,000 Total Cost = $12,000 + $1,000 = $13,000ROMI = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($100,000 * 25% – $13,000) / $13,000 = 92. 31% 5) Which campaign should the clothing retailer in the previous questions execute for maximum return on marketing investment? If the retailer is more concerned with maximizing revenue growth, should they execute the newspaper campaign, direct mail campaign or both? Why? Answer: a) Direct mail campaign (900% ROMI) as it is significantly greater than the newspaper campaign (25%) and combined execution (92. 31%). b) Execute both as the revenue increase is $100,000; greater than the $60,000 as a result of the newspaper campaign and the $40,000 as a result of the direct mail campaign .

MITIE plc is a UK FTSE 250 business Essay

There are three main business divisions of the group which are: 1) strategy & consultancy, 2) facilities and project management and 3) services. The facilities management group includes business services, catering services, cleaning, facilities management, landscaping, Pest control, PFI, and security. Under the property management division the company offers building refurbishment, fit-out, roofing and maintenance. Under the asset management division the company offers services such as mechanical and electrical engineering & maintenance, energy generation and management, ICT and infrastructure. Strategy Review of the Company. In 2009 the company’s business had a 59% and 41% ratio of private and public clients respectively. This split is in terms of revenues and the company believes as the government expenditure is a major proportion of the total GDP therefore this split might change in the short-run. The company believes that the next 12-18 months would be a difficult time as the world economic situation remains uncertain. However, the major focus of companies (clients) is on cost cutting and cost optimization. (Annual Report MITIE, 2009) In the transport and logistics sector the company’s main client base includes BAA, FirstGroup and Euro-star. The size of the target market is 11 billion Pound Sterling and the company’s share is 0. 7%, social housing is another sector which offers great amount of opportunities this is because the government has a number of programmes to provide better housing facilities and maintenance facilities. The government has a number of plans in partnership with the Homes and Communities Agency to support communities and the local governments. Healthcare is also an important market for the company as the higher levels of ageing population of UK will spend a lot on healthcare facilities and create opportunities for outsourcing. The market share was 0. 8% in 2009 for the company out of a total market size of 11 billion pounds. (Annual Report MITIE, 2009) Financial Analysis for 2008, 2009 of MITIE The revenue of the company in 2008 was 1. 4 billion pounds and it increased to 1. 521 billion in 2009 which is an 8. 2% rise on a year on year (YoY) basis. In terms of the business segments the highest revenues were recorded in the facilities management sector in both 2008 and 2009 with 2008 revenues exceeding 820. 4 million pounds and 2009 revenues for the facilities division topping 942 million pounds. A major change was the increase in margin contribution from property management services from 5. 3% in 2008 to 6% in 2009. From the total revenues of 1. 52 billion pounds, 297. 9 million were from property management and 281. 8 million were from asset management in 2009. The net profit margin for the year 2009 was 3. 57% whereas the net profit margin for 2008 was 3. 4%. The operating profit for the company increased from 70. 3 million pounds in 2008 to 78. 6 million pounds in 2009. This represented an increase of 11. 8% in the operating profits of the company. It is an indication of the higher level of productive efficiency at the company. The basic EPS (Earning per Share) increased by 16. 8% from 2008 to 2009. In 2009 the basic EPS was 16. 7p. The dividend per share in 2008 was 6. 0p and it increased to 6. 9p in 2009. The current ratio for 2008 was 1. 007 which meant that on aggregate there were more current assets available to pay off current liabilities. But an important thing that was noticed the fact that trade and receivables in 2008 were 314. 4 million pounds which is about 87. 5% of the total current assets. This means that the company is dependent on the timely payment from debtors in order to pay off creditors and other short-term liabilities. The 2009 current ratio for the company stood at 1. 09 which represents a slight improvement from the previous year. One of the main reasons for the slight improvement was that trade payables declined slightly in 2009 compared with the year end 2008 figure. In 2008 long-term liabilities as a percentage of total assets stood at 6. 2% which means that a very small amount of assets were being financed by long-term liabilities this also implies that the company has a potential to leverage its position and benefit from cheaper capital and ensure tax savings. In 2009 the long-term liabilities to total assets ratio decreased to about 5% which again implies a declining trend toward a long term borrowing regime. The company follows certain guidelines to ensure best practices in the finances of the company. It follows a number of key performing indicators (KPI); the conversion of EBITDA to cash is another financial KPI. This is an important indicator of a company’s success because the long-run sustainability of operations is dependent on positive cash flows that the company will ultimately generate. The company converted 97. 5% of its EBITDA (Earnings before interest, tax, depreciation and amortization) to cash for the year ended 31st March 2009. The same conversion rate was 90. 3% in the year 2008. The company also reported operating cash of 94. 4 million pounds in 2009 which represents an increase of 20. 7% in operating cash from previous year levels. This also shows that the company has improved its ability to meet its debt obligations throughout the two years and it has reduced its interest costs in the process.