Chic Paints Plan Introduction to business (Section 4)Which accounting function will you be reviewing?Accounts Receivable/Credit ControlOverview of the business (PC 1.3)How big is the business – staff, offices, turnover?Chic Paints Ltd manufactures and supplies specialist paint products such as those used on boats, cars and industrial machines. It operates business to business. The company was formerly part of Ashstead Plc, but was the subject of a management buyout (MBO) from its previous owners in 2008 by five of its directors, whom had managed the company for many years. Prior to the MBO the Ashstead Plc operated a conglomerate manufacturing a wide range of products but this was considered to be no longer viable and as a result Chic Paints Ltd was sold off. Following the MBO the company moved away from the household paints market and towards the niche market of specialised paints as there is less competition and profit margins are higher.
The firm is currently having problems cost effectively meeting run length requirements as well as meeting quality standards. The general manager has proposed the purchase of one of two large six-color presses designed for long, high-quality runs. The purchase of a new press would enable LI to reduce its cost of labor and therefore the price to the client, putting the firm in a more competitive position. The key financial characteristics of the old press and the two new presses are summarized in what follows. Old press – Originally purchased 3 years ago at an installed cost of $400,000, it is being depreciated under MACRS using a 5-year recovery period.
Capital Renovation Proposal As soon as Lucy Morris assumed the management of the Merseyside plant in 2007 she easily discovered several that needed efficiency improvements in polypropylene production. The equipment was suffering of a deferral of maintenance for the last five years and the plant design was antiquated. Other improvements were to relocate and modernize tank cars unloading areas, refurbish the polymerization tank for quicker throughput and to renovate compounding plant in order to save energy. Her proposal for restructuring had an estimated cost of £12 million and they would have to shut the plant down for 45 days. This measure was a problem because considering the fact that the sister plant in Rotterdam was operating almost in full capacity and could be that the clients had to buy from another competitor during this period.
Before working for Microsoft in 1980, he worked for two years as an assistant product manager at Procter & Gamble. He has being working for a little more than 30 years for Microsoft, while the average holding time of a CEO is about 5 years. During his more than 10 years as a CEO he has tripled revenue and double net income. He has guide Microsoft into two growing markets, console gaming and search. Bill Gates had been CEO before Steve Ballmer and now holds a position as Chairman.
Activity_3: P P is a major quoted company that manufactures industrial chemicals. The company’s Board comprises a Chief Executive and five other executive directors, a non-executive chairman and four non-executive directors. Two of the non-executive directors have served on P’s board for five years. The company has a policy of asking non-executive directors to stand down after six years and so the Chairman has established a Nominations Committee to start the process of selecting replacements. Three replacements have been suggested to the Nominations Committee.
| HOW THE STOCK HAS FARED: Stock performance between the day before P&G announced acquisition of Gillette on Jan. 28, 2005 and market close on Feb. 11, 2010. | Five years later, though, things haven't exactly gone as planned. Most of the acquired Gillette businesses have been a drag on P&G's top line, not a boost. Most of Gillette's senior managers (with the notable exception of current P&G Vice Chairman Ed Shirley) have left. P&G's stock has lagged behind key competitors', including Colgate-Palmolive Co. and Unilever, which have beaten P&G 4 to 1 and 3 to 1, respectively, in the stock market.
FOX ENTERPRISE Ltd TRAINING AND DEVELOPMENT EVALUATION Compiled by Nikki 25 May 2012 CONTENTS Background 1 Terms of Reference 2 Procedures 3 Findings 4-5 Conclusions 6-9 Recommendations 10 Bibliography 11 Appendix A 12 1.0 Background Fox Enterprises Ltd is a major pipe manufacturing company having been in existence since 1962. Up until the late 1980’s, Fox Enterprises, had been the leading pipe manufacturer within the UK and profits had been high, however, from 1987, profits had started to steadily decline and this year the company registered a loss of £240’000. This loss has meant Fox’s are now lagging behind their competitors and are going through a period of strategic and operational change which has affected all divisions of the company. As a result of recent changes and employment of new staff, it is necessary that the training and development of individuals and teams is reviewed. As the new Office Manager at Fox Enterprises, I have been delegated the task of evaluating the effectiveness of training within the organisation covering the following areas: • Staff appraisal systems • Training needs analysis • Development of training plans • Different methods of training • Methods of evaluating the effectiveness of training 2.0 Terms of Reference On the 11th May 2011, the Managing Director, Mr John Fox, instructed Angela Brown, Office Manager, to evaluate the effectiveness of training within the organisation whilst linking it to existing and potential problems apparent within the company.
But as competition intensified through the early 2000s, Schwab had found it harder to straddle the divide between full-service 2004, revenues were flat, and net income had declined by 39% in just 12 months. Upon his return as CEO, Chuck out both costs and prices to restore the brand’s perceived value among retail investors and hopefully improve market share. Though that corporate marketing budget was among the first to be cut, Saeger had argued that brand-building initiatives would have to play a role in driving future growth and brand revitalization. Six months into the TTC test market, she persuaded management to invest a further $30 million in the TTC campaign for the fourth quarter of 2005. She was confident that the campaign could take at least some credit for Schwab’s turnarround: a 6% increase in revenue from year-end 2004 to 2005 and a 153% increase in net income for the same period.
Issues The issue in this case is the problem of high turnover at the Telesouth company. Currently, Telesouth employs approximately 400 people. Over 200 of those employees were recruited since 2005, and of those recruited since 2005, sixty percent were under age thirty and for many of them Telesouth was their first employer. Telesouth’s approach to the HRM areas involves a three step process, including Recruitment/Selection, Induction/Orientation, and finally Socialization. Employees surveyed had a high regard for the Recruitment/Selection and Induction/Orientation steps to the HRM Approach, but felt somewhat slighted during the Socialization process, claiming that “managers were so busy doing their own jobs that they could not deal with the individual concerns of new employees.” Despite their threefold process, Telesouth currently suffers a high turnover rate, estimating, at minimum, the cost of turnover at $20,000 per person.
Proctor & gamble’s organization project 2005 The case takes us back in June 2000, facing two main issues slumping in stock price and leadership crisis when Jager the CEO at that time steps down and is replaced by Lafley. Jager initiated one year ago a reorganization of P&G called ‘Organization 2005’ in order to regain growth of sales. Mainly the new organization consists of a shift from geographical structure to a global product business division’s structure. But Wall Street seemed to punish this move in spring 2000 when the stock price felt by 50% from its peak. P&G internal low confidence was also punishing this move and was the expression of the internal resistance to these changes.