Figure 1 Reported Company Profits (In billions of dollars) Average Self-esteem Scores 1. Summarize the information presented in Figure 1. According to the information the researcher collected from the employees through a self-esteem questionnaire, shows that the greater a companies profit the higher its employees self-esteem is. 2. The researcher conducting this study believes that employees are more productive when they have higher levels of self-esteem.
A rising ROE suggests that a company is increasing its ability to generate profit without needing as much capital. It also indicates how well a company's management is deploying the shareholders' capital. In other words, the higher the ROE the better. Falling ROE is usually a problem. CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies.
It will show where it comes from, and where it goes. This indicates the company’s profitability, as shown in the net income, and their ability to meet obligated debts. It is possible for a company to have success in sales and net earnings and still fail to generate enough cash flow to meet obligations. The Home Depot is reporting a well maintained cash balance as reported in the balance sheet, and its operations continue to keep the influx of cash coming. The Home Depot cash flow shows significant net earnings and the cash flow statement does not indicate a drastic drop from previous years.
Crystal Diaz MGT 451 Professor Widman June 13, 2010 1)What does customer satisfaction mean to you and how could you measure that in the stimulation? As Anderson, Fornell, and Rust state, “To compete in such a world, firms must strike the right balance between their efforts to compete efficiently and their efforts to compete effectively.” Two arguments were discussed, one that customer satisfaction and profitability are well-matched. For example, customers that are satisfied can decrease, “the time and effort devoted to handling returns, rework, warranties, and complaint management, while at the same time lowering the cost of making future transactions. The second theory believes that, “ increasing customer satisfaction should increase costs, as doing so often requires efforts to improve product attributes or overall product design.”
A growth company tends to have very profitable reinvestment opportunities for its own retained earnings. Economic growth will affect Etisalat as it would increase their profits due to more people wanting more products and wanting to spend their money. As people have more money to spend on luxuries instead of the essentials it means that the higher value products will be brought. For example the Andrex toilet rolls will be brought instead of Etisalat value, because of this it means more money is being spent in the store which is an advantage for Etisalat. Recession occurs when people involved in business become more cautious and: * Customers cut back on spending, and start to save more * Manufactures and sellers cut back on their orders, produce fewer goods and start to cut back costs in general, including by laying off workers.
Additionally, Costco has a goal of 3) maintaining its employee workforce, as high employee job satisfaction has translated into exceptional customer service and low employee turnover (Costco, 2012). The three standards to be chosen would be inventory turnover, store profitability and employee satisfaction. As I noted prior, the key to Costco’s success has been its ability to acquire popular goods and sell them quickly at minimal operative cost. A measure of inventory would be able to evaluate any significant trends in goods. If the inventory were to rise significantly for any particular item, it would indicate either the item is not popular, viewed as too expensive, or may be held up, off-site warehouses (depots) However, the turnover of goods is maximized by a seven day, 69 hour work, which includes weekends.
From 1974-1978 all the major firms saw increased sales and net income but as time progresses and the market stops growing the firms that have best positioned themselves will begin to dominate the competition. An indicator firm success can be found in looking at firm Return On Sales (ROS). ROS = Net Income/Sales Revenue, it is a measure of firm efficiency and firms with higher ROS are demonstrating an ability to control costs and/or charge a higher price for their product(s) as opposed to competition. Lower ROS firms have lower income in relation to revenue and increasing net income is harder. In 1978 Emerson (Beaird-Poulan) and Electrolux (Husqvarna) are the industry leaders in ROS at 7.9%.
To stay profitable, sellers must receive minimum prices that “cover” their marginal costs (McConnell et al., 2009). If selling a particular service generates more revenue than what it costs then sell it, if not then don’t. Pricing and Non-Pricing Strategies Pricing strategy is how a business depends on how to maximize profits. According to (McConnell et al., 2009) not all sellers must create or accept a “one-for-all” price. Most firms have “market power” or “pricing power” that allows them to set their services prices in their best interests.
| 2(5)Profitability is evident do to increased sales from no motivation needed, but expenses are accrued from training. | 3(5)Some training and expenses are accrued from developing the hybrid approach and giving the hired individuals the knowledge on the product and company. | | Product Knowledge of Sales Team(3) | 1(3)Has hands down the biggest impact on product knowledge by providing a sales team that all have company and product knowledge. | 3(3)Least amount of product knowledge by hiring a third-party sales team unfamiliar with the brand and the products. | 2(3)Some product knowledge will exist from current sales members, but some training will be needed for new sales people.
Week 2 Learning Team Reflection Team A agrees, this week introduced new concepts and understanding. Week two the main objectives we focused on were production and cost analysis. We discuss the relationship between the number of inputs and the law of diminishing marginal productivity, and analyze the relationship between productivity and the cost of production. We collectively discussed the objectives and illustrated the topic we feel comfortable with, any topics we struggled with and how these topics relate to application in our field. Colander (2010) explains the role of the firm in production and how firms strive to maximize profits through maximizing productivity and minimizing costs.