Even though the acid-test ratio is less than 1 which rates in the lower third quartile in the industry of 1.6, 0.9 to 0.6, it indicates a concern with repaying current liabilities. This could be due to quick expansion of inventory with the intention of increasing sales. While this is currently considered a weakness and is concerning, a rise in the ratio should be seen by 2013 due to the increase of suggested sales. 3. I calculated an “inventory turnover ratio” which measures the number of times a company sells its inventory during a year.
Founded in 1989, Boston Chicken positioned itself as a provider of home meal replacements. The firm relied heavily on regional developers to open new stores, leading to a growth rate of nearly 500% each year between 1991 and 1994. While some analysts praised this fast expansion, others questioned the profitability of the new stores and the firm’s ability to succeed in the future. Our group analyzed the company’s business strategy and accounting policies, finding that Boston Chicken was not as stable as it presented itself to be. 1.
(www.sainsburys.co.uk) 1. B. Explain a few various marketing concepts and evaluate the cost and benefits of adopting marketing orientation in your organization. To improve a good marketing and to have a orientation every company is using their marketing orientation: Product orientation of marketing is focuses on high quality products to satisfy the customers’ wants and needs. Production orientation is a business orientation who believes in reduction costs through mass production which will reduce costs and maximise profits.
Identify a preliminary set of tangible and intangible costs you think would occur for this project and the system it describes. What intangible benefits do you anticipate for the system? The tangible cost of building this system are the resources needed to finish the project (The right human technical skills, equipment, hardware, software,). The intangible cost are potential problems that might occur, unexpexcted delays, and mistakes that might occur. The intangible benefits that I anticipate for this system are making work less stressful on the users allowing them to perform better and create a more coordinated and easier way to obtain information.
Both would incur costs, but implementing an automated inventory tracking system will save time. An automated supply chain system would be significant to ordering products in a timely manner and the correct amount of products. Inventory tracking and ordering have been manually managed by one person who is the owner of Kudler Fine Foods. New Technology will reduce time spent on manually ordering products, performing clerical duties, and focus on the hub of managing the
The importance of monitoring all the transactions coming and going from each location plays a key role in maintaining not only accuracy in inventory but also accuracy with the general ledger. Although, it would benefit the Kudler Fine Foods if there were written policies on security of the financial and accounting systems. This will minimize any possibility of threats on the systems and will make it easier to notice discrepancies on reports. Through the proper use of the critical information system at Kudler Fine Foods they will be able to properly know where they are spending money, how well their inventory is being maintained, keeping records of their vendors, and making sure vendors are being paid or paying in a timely
Value and cost of information. Competent marketing researchers show concern for estimating the value of information against its cost. Value/cost evaluation helps the marketing research department determine which research projects to conduct, which research designs to use, and whether to gather more information after the initial results are in. Research costs are typically easy to quantify, while the value is harder to anticipate. The value depends on the reliability and validity of the research findings and management's willingness to accept and act on its findings.
Very importantly, workers should be better protected from employer intimidation when attempting to organize unions. Businesses need to take employees seriously and understand that although it will cost more to pay a union income, it benefits the employees’ welfare and may improve their individual performance. Mass transit should also be improved. It will help economically and environmentally. And finally, employment insurance should be extended as well.
If the JIT system is adopted, what changes, if any, should occur in the relationships between Ballenger’s firm and his suppliers of components? Discuss. If JIT is adopted, the relation between Balanger (manufacturer) and suppliers of components might be a concern, as suppliers must be considered to be the part of production team as per tenets of JIT. In normal case Balanger used to purchase components from suppliers who usually go out of business and it was more flexible for Balanger. As the suppliers have to provide components of higher quality, the overall costs might increase.