The weakness of Kudler Fine Foods is that an IPO (Initial Public Offering) has many inherent and potential weaknesses that must be examined prior to selection as a means for expansion. An IPO is the first sale of stock by a company. There are many advantages and disadvantages for the Kudler Fine Foods to go public through the IPO. The advantages include generating more capital needed to expand their three locations The IPOs are very expensive undertaking, and a large portion of any capital acquired will be lost to this cost. Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods.
STAKEHOLDERS For this assignment I will identify and explain the external factors that affect two contrasting businesses which are McDonalds and NHS. TASK 1 - POLICITCAL FACTORS Political Political factors are the changes that take within the government and that’s how it affects businesses. The stability of the government can hugely affect businesses or what type of government is ruling, their ideas such dictatorship, capitalism and others. The economic and trade policy makes it difficult for businesses. Credit crunch and recession are great examples of external factors influencing the business.
|Learning objective |Place in Assessment | |1.1 Explain reasons for change in a business environment |Question 1 Page 1 | 1. Explain why change happens in a business environment. You should include at least three reasons in your answer. [1.1] Changes happen in a business due to political, economical, social or technical reasons and these reasons are all reactive. Political changes are changes that occur outside of the business and therefore out of the businesses control, say for instance a change in the law which could affect the business and it has to change the way it runs things to fulfil the requirements of the law.
"Working Capital Management" Please respond to the following: Examine the key reasons why a business may not want to hold too much or too little working capital. Provide two (2) examples that illustrate the consequences of either situation. The right level of working capital depends on the industry and the particular circumstances of the business. For example, businesses that only sell services, and do not need to pay cash for inventory need a lower level of working capital. Businesses that take a substantial amount of time to make of sell a product will need a higher level of working capital.
These statements now may be used in evaluating the performance of Lee College. Evaluating the performance and financial position for not-for-profit organizations and governments is difficult because they vary greatly in size. Their relative performance based on gross amounts reported in the financial statements does not provide a clear picture and in order to facilitate comparisons; many that use the financial statements often calculate ratios. The most commonly used measure of not-for-profit efficiency is the program expense ratio. This ratio is calculated by taking a total of the program expenses and dividing by the total expenses for an organization.
When it comes to availability, Cliff Bar & and Company has very limited, if any, control over the companies they outsourced. In the event that these companies faces critical issues such as financial difficulties and decides to go out of business, Cliff Bar & Company will be at risk of failure. Another risk factor is when outsourced companies expand internationally, since the process integration can
Conflicts between stakeholders I am going to describe how the stakeholders of the Marriott conflict. The stakeholders conflict as they all have different interests. The stakeholders I will be discussing are: ▪ Financiers ▪ Managers ▪ Owners/Shareholders ▪ Local community ▪ Government ▪ Customers ▪ Associates Financiers Financiers lend money to a variety of businesses. In return, they want to know what the money will be used for. However, if the business does not use the money for this, and they spend it on something else, the bank will ask for their money back immediately.
The unwritten rules that tend to accompany informal structures appear to have created inconsistencies between how each restaurant operates and has adapted to change. The concepts that I find most relevant and address the problems mentioned above are the difference between a formal and informal structure. Book 1 What is a business? (2012) Pg.36 mentions that the structure of a business will be dependent on assessing the size, culture, and history of a business. Evidence suggests that little consideration was taken into assessing this before the implementation of the new informal structure.
With a more competitive environment, Hallington was facing restructuring and reorientation challenges. The company could no longer ignore the external competitive pressures to reduce costs. Since HUS was failing to address these issues, employees were concerned about their future within the organization. As a result, company morale and productivity had been affected. The CEO of Hallington Utilities Services, has identified three main issues that are major concerns: privatization, downsizing, and unionization.
With this system direct material and labor costs are standard prices. Overheads are charged as 300% of the direct labor cost and is applied to the total costs pool. The system the company is using is inappropriate and leads to wrong assumptions in terms of profitability and price decisions, as well as ineffective cost management. The company needs to use Activity Based Costing to find a relationship between the volume of product producing and the overhead. For this method, we need to categorize costs pool and their costs in separate categories.