Sainsbury's is a hierarchical organisation. One of Sainsbury's aims is to make shopping more quick and effortless for customers. In order to find out how this can be done the marketing and research department has to look into this case. By doing this Sainsbury's are able to meet their targets. As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department.
401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success. Making profit is important to people. Most of all, improving the bottom line is the primary objective for major companies. “For Robert Shively, learned that his employer, Occidental Petroleum Corporation, or also-known-as Oxy Pete,” wanted to forgo the guaranteed-employer pension plans for the less demanding 401(K) system where it is based on contributions from employee’s pay rather than from the employer’s profit. This forces the employee to save without any effort but, due to this, workers began to neglect the social security and entirely dropped the use of the original pension plan.
At this time they would need to provide cheaper price to attract their consumers and to increase the demand. They would have to reduce the number of staffs as it may become difficult to pay wages. This leads to rise in unemployment. During recession businesses also tries to get loan from the bank and the bank wants to see their financial statements and if they find out that the business is not capable of paying the money back then they won’t lend any money therefore, the business may have to find new way of catching customers attention. For instance, they may be able to start up with a new idea.
They have shown this by closing a few stores in a higher-crime-rate area because they were losing money, by only offering a very limited amount of health-conscience and organic products because they are high margin items and by declining to donate to the local food bank because of worries over lost revenues. Company Q is not displaying an obligation to its stakeholders; particularly the customers, community and employees by not maximizing a positive impact through ethical and philanthropic actions. In order for Company Q is improve their reputation they need to take on a socioeconomic approach to social responsibility. This approach focuses not only on profits but on the benefit of the business to society. Company Q can improve their social responsibility in three areas; customer satisfaction, community outreach and employee trust.
This week we learned that companies are required to prepare a statement of cash flows because it gives a more accurate snapshot of the actual cash flow of a company. Financial statements give an overall picture of how much revenue a company is reporting, but high revenue does not guarantee that the company has the ability to pay its bills. The statement of cash flows is a tool designed to help external users make sound economic decisions about the company. The statement of cash flows is divided into three sections: 1) operating activities, 2) investing activities, and financing activities. The operating activities section analyzes the company's flow of cash as it relates to a net loss or net income.
Consequences and solutions to cash flow problems Factor | Why It Causes a Cash Flow Problem | Low profits or (worse) losses | There is a direct link between low profits or losses and cash flow problems. Remember - most loss-making businesses eventually run out of cash | Over-investment in capacity | This happens when a business spends too much on production capacity. Factory equipment which is not being used does not generate revenues – so is often a waste of cash | Too much stock | Holding too much stock ties up cash and there is an increased risk that stocks become obsolete (i.e. it can’t be sold) | Allowing customers too much credit | Customers who buy on credit are called “trade debtors” Offering credit to customers is a good way to build revenue, but late payment is a common problem and slow-paying customers put a strain on cash flow
In the next chapter we learn how sellers set the prices in which we pay for an item, why things cost what they do and not what they are worth. The key to prices are sellers that can sell their products as close to the cost of making the item. In a regular market, prices are the key. Businesses cannot afford to charge a higher price, customers are normally looking for a lower price and the lower the better, in today’s economy. Many customers ask the question, “What affects prices?” We learn that things happen beyond the sellers’ and buyers’ control to raise and lower prices in today’s market.
America Outsourcing. By Dwayne Berry This paper will walk through many of things that go on in America. Outsourcing jobs is one of the main things that are not helping America grow as a greater nation. Outsourcing jobs are taking away from us “AMERICANS” who have tried to work hard with what we are giving. The outsourcing of jobs is not a bad thing for the company because it makes them more money, but for the people who don’t have what young people talk about as bank!
Many businesses do not realize the consequences of their actions when they hire older, more skilled employees for jobs just to save a few dollars. These businesses are slowly but surely destroying the future of the United States economy because it is easier and less costly to hire older employees that they do not have to spend money training. It is easy to think about how raising the minimum wage could be beneficial, but it is much more difficult to see how such a thing could leave devastating effects on the United States economy. It is important to fully think about the lasting effects of controversial topics such as this one concerning the raising of minimum wage, because there is an enormous chance that they will affect
If a company’s internal controls are not working properly customers and investors will be more doubtful and have second thoughts on their investments and money being safe which will lead to having less investor and the stocks will drop. It is very important for companies to have their internal controls up to date and making sure they are working properly because this can cause major setbacks financially. But there are some instances were internal controls cannot even stop unethical behavior from happening such as shoplifting in a shopping mall or even a bank