Management Report for T&H Airlines Executive Summary T&H is a domestic airline that until now has been self-insured. Current Company CFO, Bill Albertson, is studying the best option in terms of insurance for the company, to minimize risk at the lowest possible cost. To analyze this issue a simulation model for T&H Airlines was developed using the company data and the industry information. Two quotes were presented and considered by the company CFO. Quote number one has a premium of 150% of actual losses and a minimum and maximum of $5 and $12 per 1,000 insured, while policy two has a premium of 100% of actual losses and a minimum and maximum of $6 and $9 per 1,000 insured.
The vendor will be function in effort to make a profit as is with all businesses. The problems can come when the vendor needs to increase profit and since the contracts are normally a fixed price, the only way for them to do so is to decrease expenses. This is a viable option as long as they meet the conditions specified in the contract (Bucki, 2012). When outsourcing to another company, your organization is now tied to the financial well-being of the vendor. The problem can arise when after contracting out the IT functions of the organization and paying the fees negotiated, the vendor goes bankrupt leaving the companies who have contracted to them without an IT resource (Bucki,
By following the matching principle all of the costs associated with a particular product, not just its wholesale price, is expensed when the item is sold. Requirement 2 - A Generally, the lower of cost or market method is used to value inventory in order to “avoid reporting inventory at an amount greater than the benefits it can provide” (Spiceland, Sepe, & Nelson, 2013, p. 476). According to Spiceland, Sepe, and Nelson (2013) the “change in replacement cost usually is a good indicator of the direction of change in selling price” (p. 477). When the change in replacement cost is negative the LCM method allows companies to apply the conservatism principle. The conservatism principle involves “recognizing expenses and liabilities as soon as possible when there is uncertainty about the outcome, but to only recognize revenues and assets when they are assured of being received” (The conservatism principle).
Loss of income for the company as a whole C. Which federal, state or local laws could be broken because of these legal issues/ why? 1. Issues with the Federal FAA for overlooking the safety of airplanes just to make a scheduled flight D. Recommendation to minimize possible litigation 1. To continue the talks with the company and union to come to a conclusion that will not only support the union but also benefit the company. II.
Identifying Limiting Resources In order for Huffman Trucking to identify its limiting resources, one must first understand the nature of the business itself. In a nutshell; Huffman provides ground transportation services primarily to the US government. With that being said, is now easy to identify those resources that Huffman must have in order to operate. At a glance, we have identified the following; Human Capital, Oil, and Truck Parts. While Human Capital and Oil might seem more important than replacement parts; should Huffman’s access to such parts be limited or eliminated, the wear and tear of their assets will eventually catch up to them and keep them from operating.
Bargaining Agreements: American Airlines In order to plan for a better future for American Airlines’ stakeholders, it is necessary to evaluate past and present labor-management relationships, including labor disputes, assessing how these stakeholders have assumed and directed power in negotiating the terms of contracts. Upon analyzing the collective mindsets and actions of the members of each stakeholder party, this paper evaluates the various roles of authority each stakeholder group maintains internally and experiences externally by looking at the histories and laws that govern these groups as predictors of future bargaining events, which in turn suggests that while it may be possible to sustain a final, solid collective bargaining agreement, it may not be probable. The long-term effects of a standing or binding agreement on the culture of labor-management relationships and American Airlines as a whole would primarily depend on financial costs incurred by the stakeholders. Mitchell, Agle, and Wood (1997) propose that there are classifications of stakeholders that are based on the levels of power that influence the legitimacy of a stakeholder’s relationship with an organization (p. 854). The results of this evaluation define which stakeholders are fundamental to decision-making.
If the CEO and Chief Financial Officer (CFO) would use the holistic marketing approach the airline would benefit with the change. Both the CEO and CFO are ignoring good marketing and customer relations. By ignoring both of these principals Classic Airlines revenue is suffering. With holistic marketing everything matters. If the CEO and CFO adopt this principal Classic Airlines will thrive in the future (Kotler & Keller,
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.
Highly competitive industry 2. Unsuccessful implantation of growth strategy 3. The hiring of competent staff who maintain the culture of JetBlue JetBlue’s strategy of maintain customer excellence and providing needed low cost service is a definite way to stay up above the competition, customers want a low cost airline that gives them what they need in terms of pricing as well as destination. JetBlue, will be in a position of failure if a growth strategy is not in place to increase capital and foresee methods in which to cover debt and make a profit “ Achieving our growth strategy is critical in order for our business to achieve economies of scale and to sustain or increase our profitability” (JetBlue,2004) Gating is an important issue that must be looked at, due to the fact it could limit their sales “We will also need to obtain additional gates at some of our existing destinations. Any condition that would deny, limit or delay our access to airports we seek to serve in the future will constrain our ability to grow” (JetBlue, 2004).
These issues are to be compared with the threats of existing airline services in overseas destinations and also their competitive advantages over RyanAir and vice versa. The innovative technologies like internet booking without agent cost and its own advertising efforts are to be studied to compare the effects of those business strategies for international markets. In our argumentation we would like to tell NO for RyanAir to provide overseas services like transatlantic, as the existing successful strategies of the company inside the domestic market should be altered to go overseas. We analyse the value chain advantages of RyanAir within its existing market and also determine the internal and external factors supporting the development. And these factors are associated with company’s generic strategy involved in different situations to support our view of not going overseas.