Thus resulting in employees being unsatisfied with the management of the business which later could impact the businesses relationship with its stakeholder through the recession, however this strategy in the long run could result in employees not losing their jobs as BA are benchmarking their competition who significantly seceding in the recession without tarnishing its relationship with its employees. This could result in the business surviving and becoming less likely to end up like Woolworths and what happened to their employees. On the other hand, during a recession I believe BA would not damage its relationship with its stakeholders. A reason for which is customers, who can be seen as the most important stakeholder to any business would try to spend as less money as possible during a recession. So with this in mind the cost minimisation strategy employed by BA would mean that
ACC/291 Week 1 Discussion Questions 1. How are bad debts accounted for under the direct write-off method? What are the disadvantages of this method? The direct write-off method is when a company determines that an account is uncollectible and it charges the loss to the Bad Debts Expense. An example of this would be when a customer is not able to pay their bill because due to a downturn in the economy, money may be tight if they have been laid off from their jobs or faced with unexpected hospital bills.
Tootsie Roll Industries Inc. Loan Package In the current corporate arena, the steady decline of business has been evident with company closures, loss of jobs, and foreclosures on properties. For a business to survive in such a harsh environment, a sound business plan is necessary along with knowledge of the marketplace and the needs of consumers (The U.S. Small Business Administration, 2012). A company also needs to review operations to ensure its processes are efficient and cost effective. As a business expands and ages, it requires updating equipment that integrates advanced technology. The proposed plan for financing new equipment and technology will reduce costs, increase product gross margins, and maximize opportunities for dividends.
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
Nathan Osborne Phil 186 It’s Good Business: Robert Solomon The author Robert Solomon argues that ethics play a big part in the business world. He does not believe that in order for business management to succeed that they must include unethical or illegal methods to be able to succeed. Solomon believes that business management is not as simple as making revenue. He acknowledges that while illegal and unethical practices in business management could bring positive results in the short run, eventually the business is going to fail in the long run. This is why Solomon recommended eight important rules that can help businesses in including ethics into their business operations.
Week Two Learning Team Reflection During Week 1, we discussed the basic components of business research. We were shown how to recognize dilemmas and address issues related to corporate America, such as declining sales, increase in costs and any other issues that may have adverse impact on business. With that, business research becomes a problem solving tool in the decision making. However, ethics must first be weighed to ensure the social bottom line and productivity remains at its highest. Unethical behavior undermines positive gains.
The importance of revenue is that tells you how much money overall is coming into the business and subtracting the costs you can see what your overall profit is. An increase in revenue could also lead to more investments back into the business, for example by staff training, extending a department etc. A decrease in revenue will mean a decrease in profit, and probably having to cut budgets. If Shafal doesn’t cover her expensive her business shut down. The way revenue helps the business is a by money coming in from different areas such as rent.
BAIT Case Analysis I Royal Caribbean Cruises Ltd Issues: External Issue: There appeared an overall depression in traveling industry since 2001. On the one hand, the outside business climate has become perilously changeable. In addition, customers tended to book more at the last minute, putting the company to a disadvantage position due to the mis-prediction of customer resources and an average 15% commission given to agents. On the other hand, the economic downturn also impacted the travel industry. Internal Issue: There is a misalignment of IT Strategy and the whole business strategy in RCCL.
Risk Factors of Bloomingdales Risk factors play a major role in today’s economy. Since we are stuck in the stagnation period and do not seem to be recovering for quite some time, businesses have to come up with a proper marketing plan that will help sell their products. All businesses suffer from the same risk factors. Some common risk factors include: product quality, price, brand loyalty, competition, managerial skills, etc. Many customers are shopping at lower priced stores because the economy is not allowing them to spend extra money.
The works left by resigned employees would be distributed to the remaining staffs, and they would be burdened by the additional job.This can make them have much pressure and want to leave the workplace more and more. Thus, number of turnover will increase even more badly. * Affect operational efficiency: the organization’s operation is heavily relied on part-time workers, so it is essential to reduce its turnover. When there are not all of them, the operation process will become worst due to insufficient workers. Moreover, when they leave, the organization needs to hire new inexperienced staffs with highly paid and full benefits to fill the responsibilities, this adds up to dollars and cents.