Complete the quiz on the assigned readings for the week. Internal Competencies. In planning, one component to explore is how an entrepreneurial organization’s internal competencies help to achieve a strategic advantage in the marketplace. In a 250-300 word response, answer the following: What steps/actions would an entrepreneur take to determine whether the entrepreneurial venture has the appropriate internal competencies to achieve competitive advantage? Respond to at least two of your classmates’ postings.
Sadly, this company had a lot of factors working against them when the quarter came to an end. The reason that companies budget is to help ensure that money is being spent properly and to help track where future profits and losses may occur. The unexpected decrease in revenue can be factored into many different areas. One main factor of loss is due to the internet being down for 7 days causing the company to potentially have lost 7.7 percent of it’s customers and an estimated $10,00 in profit for this quarter. Factor number two is the company offering free shipping to orders over $100.
If a new business opens and has one or both of these products in stock, we would likely lose potential customers. If they follow a similar marketing plan, we could lose our client referrals to a business with more diverse products. We’ve seen tremendous growth this year, going from taking a $4000 loss in the first year, to a $30,000 profit this year. These risks are most likely not detrimental to our business, but could prevent a profit decrease due to
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.
This may have been for any number of reasons, however if this was cut simply to conserve cash it could result in slower growth in the long term. The cash and cash equivalents have grown by 348.2% which is alarming. This is an indication that the company is not investing their cash appropriately. This cash could have been invested in the aforementioned research and development to keep the business competitive in the long term. A few smaller points that are still worth mentioning are that the receivables have dropped 15%.
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.
Legal and Ethical Issues of Financial Reporting Roberta Barker ETH/376 May 19, 2014 Sam Hinton Legal and Ethical Issues of Financial Reporting Case 7-4 Excello Telecommunications Excello Telecommunications has been a profitable enterprise for a number of years, but has faced a recent increase in competition for their products by overseas manufactures. Now for the first time in its history, it has become evident they will not be able to meet their earnings estimates, which is a concern to top management on how it will affect bonuses, stock options and share price of company stock. CFO Terry Reed discovers a December 20, 2010 $1.2 million transaction with the potential to solve the problem. This transaction would typically be recorded at time of shipment. Unfortunately in this case the customer Data Equipment Systems is unable to receive shipment until January 11, 2011 due to a lack of available warehouse space (Mintz & Morris, 2011).
financial crisis hit last year. (Associated Press, 2009).” Toyota had recently lost $3.5 billion even though they had the recent growth and financial stability. Losing this amount of money in such a short time period has scared their company and has been the first major downfall since the company started up in 1950 and having a record breaking year previously with 1.7 billion dollars in profits. With a solid growth record for the past 60 years it looked as though this would be very unlikely to happen to Toyota. This illustrates that even a multi-national company such as Toyota is not immune from financial mistakes, even with a strong past performance and competitive product line up.
How should sales managers manage these changes? MKTG 420 Week 5 DQ 2 Motivation Nick Pirrone, VP of sales and marketing for Steeltime, Inc. recently invested over $250,000 in a customer relationship management (CRM) system. He has a problem, however. His 10 salespeople either do not know how to use the system or simply do not want to use it. The CRM system was to be used to move prospects through Steeltime's sales cycle more efficiently and to improve the level of customer satisfaction.
It was hard enough with just a recession, but now banks are much stricter when it comes to lending. Surveys done show that 63 percent of companies with less than 100 employees are having trouble with credit, 12 percent had to lay off employees because of it, and 1 in 5 of 600 polled are at risk of going out of business in the next six months. In a brief interview with Mr. Paul Braungart III, entrepreneur and president of Regional Capital Group, a commercial real estate lender and investment company based in Marlton NJ, Mr. Braungart explained that the crisis has impacted values of property and the ability to buy and sell. Therefore, no one’s doing anything really, which paralyzes the market because everyone’s afraid to make any potentially risky moves. The commercial real estate market isn’t as bad off as the residential market, but it has a significant ripple effect on the mind state of the nation.