Fewer companies are willing to enter the market because of the SOX requirements that make going public too costly. Plus, the maintenance required to stay public is too expensive for smaller companies, forcing companies to look elsewhere to raise capital. Rising costs persuade large numbers of companies to exit the public markets to sidestep SEC regulation, creates two problems. First, the overall economy could suffer because corporations limit investment projects due to the higher-cost sources of capital to fund potentially new operations. Second, financially stressed companies that go dark are the very companies’ shareholders need to monitor usually and where transparency is most important.
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
As Sainsbury's have a hierarchical structure they are most likely to lose a lot of money because for the marketing and research and development departments to carry out their functions they would need funding from the finance department. For this information to get to the finance department a lot of time would have been wasted and also for the finance department to reply to them, all this would cost them a lot of money. Advantages of Sainsbury's is that the power they have would be successful for the business as when work is being done the communication of the workers together when given commands from the manager and having to work better for the manager to impress them in order for more work to be done and at a more well-organized rate then if there was no pressure from the manager. Disadvantages would be that the workers would start to get stressed from having to complete the workload at too fast a pace for them to work at all times that they will start to work less and dislike there job and some days may not want to work as they are stressed to do work which is too much for them to cope as they are trying too hard to impress, this could lead to employees wanting to quit their job. Advantages are that when having to complete work set out by the manager to the employees it can be done efficiently so that the manager will be able to assess the employee and they could get a promotion to a higher part of their job.
Credit crunch and recession are great examples of external factors influencing the business. If the people are suffering from recession, they will not have money to spend money and this is how it affects the businesses. The current instability in Iraq is a good example of what may happen to businesses. In business it’s very important to understand, monitor and adapt to the political environment, because it crucially affects every business. Some of the very important factors are: Government stability effects businesses in a great range by competing with businesses to lower their costs, transparency is another important factor where anything the business does is revealed to the government and the government know exactly what they are up to.
Because the company must produce all financial information to the SEC many businesses find it to be very stressful and time consuming which takes time and money away from a company that is thriving like Kudler Fine Foods. Legal liability is important when conducting an IPO and those offering the shares can be personally sued. The expenses continue after the company goes public with the SEC reporting requirements. Kathy Kudler will not only lose control of some of the decision making for Kudler Fine Foods with an IPO, but she will also lose some of the profits, as a portion will go to the
| Customers | Customers can stop buying products displaying the john Lewis logo, word of mouth means that john Lewis can be seriously damaged by customer shifts. They have a huge influence on the aims and objectives of john Lewis. However john Lewis may feel that it has sufficiently strong, brand loyalty to ignore customer input. | Employees | Employee can make john Lewis alter their aims and objectives to include staff needs and wants, john Lewis altered their company objectives to include the working conditions of its staff, however a set time when unemployment is high, employers are in a position of greater power as employment is harder to find. | Trade union | Unions mainly focus on the treatment and pay of the employees.
Expansion means career growth and other opportunities for the LPN’s If Happy Trails closes this facility, the organization will lose money and business opportunities. An alternative that Happy Trails can use is to explain to the LPNs that unions have made many American businesses less competitive so the employer has no option but to make budget cuts elsewhere. Those budget cuts could come from less recognition programs, pay raises less frequently and in an extreme circumstance the facility would be forced to close their doors. Many employees have come to the realization that unionization may in the long run put their jobs at risk by making their employers less competitive. The National Labor Relations Act forbids employers from interfering with, restraining, or
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
Economic Issues Simulation Paper Heather Pennington University of Phoenix Mark Williams HCS/440 Making financial and economic decisions for a business is never an easy task. It is a lot harder because employees have to know what is best for the business in order to profit from it and grow larger. There are three types of Castor plans which are Castor Standard, this covers any incidentals but will not cover any pre-existing health issues. Then there is Castor enhanced, this covers pre-existing health issues and then there is Castor enhanced minor which covers pre-existing health issues and coverage such as obesity, substance treatment, etc. can be excluded and this include mental health.
401(K) has become ineffective because of the corruption of big business, the misunderstanding of and as a result a mishandling of the 401(K) accounts, and its correlating dependency on the market’s success. Making profit is important to people. Most of all, improving the bottom line is the primary objective for major companies. “For Robert Shively, learned that his employer, Occidental Petroleum Corporation, or also-known-as Oxy Pete,” wanted to forgo the guaranteed-employer pension plans for the less demanding 401(K) system where it is based on contributions from employee’s pay rather than from the employer’s profit. This forces the employee to save without any effort but, due to this, workers began to neglect the social security and entirely dropped the use of the original pension plan.