Compare and analyze the various and sometimes competing considerations attending diverse stakeholder interests and inherent in cross-cultural multinational environments. 5. Recognize the necessity of developing a strategy to deal with congruent as well as adverse considerations posed by respective business environments. 6. Understand concepts of social responsibility and ethical principles, and ascertain how the concepts and principles are used in business, government and society relationships.
How can different sources of funds help a business achieve its financial objective? Businesses usually have five main financial objectives. They are efficiency, growth, solvency, liquidity and profitability. Sourcing different sources of funds and interdependence with other key business functions (operations, marketing and human resources) is the way that businesses achieve these goals. It is important that these funds match their needs, for example, short-term funds to match short-term goals.
Understanding the difference between static budgets and flexible budgets are also beneficial to management in making the educated decisions on which budget will be more beneficial. Flexible budgets, for many companies, assist with continued profitability as long as management recognizes the aspects of a flexible budget. Fixed and Variable Costs A flexible budget is a great tool used in many companies for comparing actual to budgeted performance levels. The flexible budget has a higher usage rate in companies that have multiple costs that correlate with business activities. In budgets, the fixed costs are separated from the variable costs in those accounts that play into overhead rates can be considered fixed and then understand that variable costs will be in correlation with the operating activities.
Pro forma financial information is generally used to illustrate the effects of transactions such as business combination, and change in capitalization. There are countless reasons on why companies use pro forma statement in their business, the most significant is the planning and control received when using pro forma. The process of using pro forma statements are less time consuming, they help businesses evaluate and make a better distinction between business plans (Scarborough, Wilson, & Zimmerer, 2009, p. 196). Pro forma statements are an excellent outlet for resources that will help a business forecast expected earnings should the company chose to merge with another company or even if the company wanted to sell off part of it operations (Scarborough, Wilson, & Zimmerer, 2009, p. 196). The pro forma statements are commonly used when applying for a business loan.
The problem to be investigated is the relationship between leadership, ethical stewardship and trustworthiness in corporate organizations. The relationship of the three elements is based on the culture of the organization. Since global market is very competitive, organizations depend on employees’ creativity, commitment and ability to make advancement (Caldwell, Hayes & Long, 2010). According to Caldwell, Hayes & Long (2010), “the importance of understanding the relationships between leadership behavior, perceptions about leader’s trustworthiness, and the ethical duties implicit in the psychological contract have become increasingly important”. The relationship is related to the needs of stakeholders and the ability to expect peculiar things from the organization so that they can maintain a trustful relationship in the organization (Castaldo, 2007, p. 57).
A proper design bridges the gap between the enterprise business models on one view and business functionally on the other function. Analysis of the business architecture The business model and the enterprise model of Smart Home’s Inc. cover various aspects such as stakeholders to be affected by the business architecture which forms the basis of operation of the business. The study will also explore on the level of technology architecture employed by the business. Through implementing the high level technology architecture, Smart Homes Inc., should manage the complexity of the work done by supporting the design, change, and the realization of objects which are of concern to the business. Definition of the business architecture of the organization In defining the Smart Homes Inc., business architecture, it is important to understand the business rules which are designed to provide guidance, and offer a flowing structure and understanding of the business’ product line.
Organizational formats which allows you to combine simple, functional, and geographic, and matrix organizations. There are organizations with too many layers of management. You can simplify your organization by using a hybrid organizational structure to interject a chain of command that maximizes speed and proficiency, while adding extra management oversight where needed. For example, you may need a functional organizational structure for accounting or finance personnel to maintain checks and balances, and a geographic structure to provide support and product customization for different regions. In addition, hybrid organizational designs allow you to modify your organizations reporting and the needs of your company.
“Economic data and the signals they contain are central to business conditions analysis.” Economists spend much of their time gathering, interpreting, and manipulating macroeconomic data. This is important because the data they obtain provides signals which are used to predict what will happen in the trade over a set period of time. Signals are divided into two categories that economists focus on, and they are direct and indirect signals. There is a difference between direct and indirect signals. Direct signals are signals that are measurable in terms of validity and reliability.
In this paper will be discussed the flexible theory of leadership and its function to the procedure in Costco Company. In addition to the role of the chief executive officer plays in flexible leadership theory. A corporation’s directorial effectiveness such as Costco has to be supported on the durable willingness to compete to succeed. In today business world the model for organizations is to become accustomed to an international globalization, diverse cultures and growth, the necessary to do better than the competition and to be able to draw attention and keep a substantial marketplace is desired to stay on the top. Marketplace frequently changes and drifts fast, for this reason leadership quality is required to guarantee the business survival and domination.
Disharmony might arise when people felt the system was not fair, for example, when large bonuses are paid to bankers during a recession. Parsons and inequality Parsons developed Durkheim’s ideas and said that: In industrialised societies stratification, and therefore inequality, exists on the basis of which roles are agreed by the most important, and therefore the most functional for society. The agreement occurs because people are socialised into the shared norms and values for society, initially by the family, and subsequently by education and the other agents. The value consensus that results is what holds society together and it gives it social order.