High operating expenses and ineffective management of A/R have led the company to insolvency by demonstrating a quick ratio of 0.38. DECISION CRITERIA * Reduce operating expenses by 6% or more within next year Option 1: Reduce Salaries By 8% Reducing the salaries by 8% might affect the motivation and productivity. But how much of productivity and motivation is linked to financial rewards? Several psychological and economic studies suggest that money does motivate people to work but they also want to “feel autonomous, competent, and related to others.” (Piekema, 2012)Since many of the supervisors have been with the company since it started, it is unlikely they would be willing to leave the company. By the end of 2006, this option will reduce the selling and admin expense from $160m to $148m.
The Erih T should have asked the HI to do a study on RDH even before signing a contract. Whatever happened at RDH was pretty much predictable. Almost 50% turnover within 3 months cannot be a cost cutting but a question in the mind of people that why would someone do so. This would then affect the business because the entity which is in controversy has always suffered loss and took time to come on the track. It also shows that there was a miscommunication between the HI and Erih T as HI took the task as a long term plan and gradual change.
This means that Costco is doing a very efficient job in using its assets in creating sales. Costco’s equity multiplier has ranged from 1.88 to 2.27 from 1999 to 2008. The average equity multiplier in this time period was 2.06 compared to the industry average of2.34. Costco is slightly lower than the industry average. To increase their financial performance the company should increase their financial leverage and rely on more debt to finance their assets.
Of the $49.4 billion, $42.7 billion was managed by the Pension and Institutional Trust Services with 300 full-time employees and $6.7 billion was managed by Personal Trust Services with 240 full-time employees. The trust industry is highly competitive with demanding clients that push firms to be very efficient in order to survive in the business and avoid clients to shift to another firms. Trust companies started to use new switched to information technologies and implement softwares to run their operations. Another key reason for this initiative was the fact that Providian’s Trust officers where often compensated for late and inaccurate statements costing the company up to $5 millions every year. Also there was lack of control in the trust division for many years in way that officers had control of the client’s account.
Ethics and Compliance Paper FIN/370 FINANCE FOR BUSINESS Dr. Terry Dowdy Univ. of Phoenix Leslie Morris Mauney, Derek Mazon, Stephanie Landry, Victoria Wilbert, Donna Spoljarick, Tihesha Horton Ethics and Compliance Paper Microsoft In today’s fast pace society corporate America seems to be above scrutiny. The time of the watch dog presence seems to have become lack and almost non existent. Giant corporations offer extremely attractive salaries and bonus packages to their employees. Employees in exchange do a good job but loyalty to the company is the most important thing.
However, choosing option one has particular strong suits. It would save Rosewood hotels from having to invest 1 million dollars per year into a corporate branding strategy, as well as, not having to persuade hotel managers/co-op owners of why the branding must be done. On the other hand, John has identified that the Rosewood brand has low recognition and brand-wide usage from their guests; a direct result of the soft branding strategy. In addition, it is noted in the case that competition within the luxury hotel segment is intense which is beginning to make it difficult to position the Rosewood hotels. Ultimately, if Rosewood continues their soft branding strategy they will begin to diminish within the luxury hotel industry.
The focus of the company was shifted to centralization; standardization of business processes, and new metrics for performance measurement was established. Due to such heavy prioritization on processes and profitability, Home Depot slipped on customer service and experienced loss of market share to its competitor Lowes. In 2007, Frank Blake was appointed to save Home Depot from plummeting further. Frank Blake and his leadership team turned back to the foundation principles on which the business was built- customer service and entrepreneurial culture. Even though there was a decline in sales due to recession, Home Depot was able to make a comeback by gaining market shares, aligning its business units and improving its information technology systems, merchandising, supply chain and employee morale.
Is College Worth it? With rising costs of college, a college education becomes a gamble rather than an investment. Although it works out well for millions of Americans, many college graduates have found themselves unable to get a quality job in their field in this economy with inescapable debt to their school. Purchasing an education to make more money only to end up owing money may not be the best solution. Despite the benefits of a college education, such as a better starting pay in entry level jobs and some better opportunities to find world, these benefits are only individual and do not outweigh the price it takes to achieve them.
Week Five Assignment Ronald Reeves Intro to Business and Technology Professor Angela Garrett Many people shy away from careers in selling, often because they think they are not outgoing enough or because salespeople are dishonest or pushy. In this weekly research paper, describe your most memorable experience with a salesperson that was positive and made you feel comfortable. Then in the next section, describe an experience with a salesperson that was unpleasant and made you feel uncomfortable. In comparing the two experiences, answer the following questions. In reflecting on the positive experience, what one thing about the experience made you feel good about it?
It is unethical to give pay rises of up to 170% when you need to cut costs. “Morphett got a big pay rise — from about $680,000 to a potential $1.8 million. But it also became clear the pay rise followed a promotion from a divisional head (hosiery) to the top job.” James Kirby 2009, Morphet is not the 'worst boss', but she could learn a few things Viewed 22 March 2013 <http://www.theage.com.au/business/morphet-is-not-worst-boss-but-she-could-learn-a-few-things-20090314-8yfq.html>. So yes, Sue Morphet’s salary raise was in fact part of her promotion from Divisional GM to the CEO position. Yet the question is why the raise will be from $680,000 to $1.8million, in a crisis situation.