In 2004, delays and stoppages to the firm’s production due to the collapse of equipment cost Alliance $2.6 million in repairs and a two-week shutdown. Alliance’s obligation to pay a divide payment of $3 million to National Industrial Supplies, and their previous $4 million annual loan repayment to their bank cripple the firm’s ability to finance expenditures. The firm is facing a difficult decision with choosing between postponing capital improvements, renegotiating debt obligations, or reducing dividend payments to National. Capital improvements will potentially save the firm money in costs for repairs, production delays, and plant shutdowns. Moreover, Alliance’s customers are sensitive to delivery times.
Factor number two is the company offering free shipping to orders over $100. Not only did this cause the company to lose the income that it brings in for shipping and add shipping costs to it’s expenses, it also added to marketing by $13,000 plus an additional $32,000 for magazine marketing when ‘Marketing and administration’ it was only budgeted at $90,000. The shift in the economy during this time frame affected the budgeted ‘labor’ expense due to the increase in pay for it’s hourly employees. All of these factors combined worked against the company to cause a negative in operating profit. Although AGM fell short in meeting it’s master budget for this quarter, these unexpected occurrences can help them to better budget for the future of agm.com.
The first three quarters for the team was a financial loss based on the company’s inability to generate revenue through sale of its computers. In the second quarter the team developed two brands of computers that were not recommended for sale. The company’s poor internal operating directives gave way to the development of two brands of computers that the market was unwilling to accept, combined with a weak market image and weak distribution network. It was very clear to the team that in order to turn the company into a profitable entity the team needed to evaluate the company’s resources and by so doing conducted an extensive internal analysis. The team looked at the company’s tangible and intangible resources.
The economy in which the read-mix industry operates may have a potential slowdown. Despite Alliance’s success and potential growth, the company is facing with a difficult decision to choose between renegotiating debt obligations, postponing long overdue capital improvement, or reducing the dividend payment to National. Being a ready-mix concrete company, Alliance’s obligation is to have their product deliver to the customers on time. However, the main issue of Alliance Concrete is the negligent to upgrade their old equipment which cost the company $2.6 million and two-week shutdown. Thus, Alliance needs to focus on improving operating efficiencies by investing in capital improvement.
The first step which is the succession programming explains how Allstate identified and developed candidates for each key position. Allstate’s management information system enables it to track and measure key drivers of career development and career opportunities for all of its employees, ensuring that the company’s future workforce will be diverse at all levels. The goal of which came to manifestation; women were empowered, minorities grew above national averages, Hispanics, and people with diverse cultures now have positions in the company. The second step is development. Through the company’s employee development process, all employees receive an assessment of their current job skills and a road map for developing the critical skills
JCT Task 1 Western Governors University Cristina Gottilla Introduction The first fiscal year has been completed for Infolab Technology. The results were not great, given that the company suffered from profit losses. This gave a financial score that was below zero, resulting in an overall score that was above zero. While this is obviously a concern for the shareholders, this report will underscore how the areas of weakness came to be, and what management is going to do about them. This report will also highlight some of the company's strengths.
Carpino Company Statement of Cash Flows Financial Accounting January 31, 2007 MEMO TO SHAREHOLDERS TO: Carpino Company Shareholders FROM: Dan Carpino, CEO DATE: 01/31/2007 SUBJECT: Annual Report ____________________________________________________________ __________________ Dear Shareholders, The purpose of this memorandum is to outline some of our key 2007 business performance metrics and generally asses our first year of operations. It pleases me to report these elements of your Company’s activities for the year ended January 31, 2007. Despite generating healthy revenues, our first year of operations ended with a net loss. Although our current year’s negative free cash flow renders us unable to declare
A number of areas could be the reason for the decrease in sales in year 8 including the economy which could have led to outside sponsorships being decreased. However CBI is continuing to plan for growth in a 3.2 % increase that is greater than could be a reality and a concern for such percentage. There is no historical data to show that a plan is in place to achieve this additional sales increase and coming off a hard economic year, it is concerning that this achievable. The Selling, General and Administrative Budget is another area to review for concerns in the budget planning area. Advertising is budgeted at a flat percentage of 2% of gross profit or $28,412 for year 9 and this has remained consistent for each of the previous 3 years.
Key Players Chester A. Wonka III, CEO: Ladies and Gentleman, I called you to this meeting to discuss the future of our company. As you are aware, our sales and profits have been stagnant the last few years. Our portfolio consists of two popular products, Willy’s Yummy Chews and Willy’s Sour Straws. No matter what we have tried, we have not been able to grow their sales, profitability and market share. In fact to maintain our market share, we have had to offer significant pricing and trade incentives.
The National Employment Law Project finds that about sixty-six percent of low-wage workers are employed by large companies or corporations, not small businesses. “It also found that more than seventy percent of the biggest low-wage employers have recovered from the recent recession and are recording strong profits, yet wages remains unchanged for their frontline employees. The minimum wage hasn't kept up with inflation, making those with families of three or more people well below the poverty level.”(National Employment Law Project) One group claims that by increasing the rate, small businesses will be strapped for making ends meet thus potentially having fewer available job positions. There is also the concern of having to layoff employees in order to make a profit. Another factor to consider is perhaps companies may have to raise the price of a consumer good or product to offset the increase in an employee’s wages.