Case 13-2 According to the case, revenues of Athenian Press were down over the past 2 years by 7%, while the company made its targeted growth of 2%. Steve Womble, the sales manager for the Athenian Press, felt that most of the decrease in sales was due to the need for change in the sales organization. However, there are several factors that impact the sales: 1) Competition for retail advertisements is strong in this area 2) Each salespeople handle too much customers (8 sales reps: 800 accounts) 3) each sales reps has too many responsibilities. Reorganizing sales division can solve those problems. Revising sales territories can be the most hurried things to do because it can be seen that in past two years the sales division has never reorganized.
Their Variable costs differ from fixed costs such as rent, advertising, insurance and office supplies. They will also need to make a change in marketing to make sure that they survive as a limited company, i.e. if a certain part of the company is not bringing in enough money, the executive would have to fire some certain employees. Another aspect that Hays Travel does is to maximise their chances to make a profit on selling holidays. Bulk buying would be perfect making a profit as you are selling more items.
I feel lack of proper management is causing most of the issues at the tire company. Foreman’s top priority in a day is to start the production line in the morning; if we have so many unhappy Foremen in a company then it is logical to see issues like low quality out of the production line or improper usage of the lines which might reduce in productivity. Exhibit 5 states one of the primary reasons of job satisfaction for the employees was not because the employees were lazy; employees were upset because they could not get the job done as they had no proper training. I recommend the Top Management at Lima should realize their drawbacks and make sure proper human training is provided to the employees. The company will automatically see reduction in attrition and increase in productivity, and they can follow positive KITA by rewarding the employees with annual or semi-annual incentives.
Lower taxes increase disposable income and therefore help to increase consumption, leading to higher aggregate demand. With an increase in AD, there will be an increase in Real GDP. If firms produce more, there will be an increase in demand for workers and therefore lower demand-deficient unemployment. There are however limitations to its effectiveness as it only potentially only deceases demand deficient unemployment but not any of the other three forms of unemployment: structural unemployment, frictional unemployment and real wage unemployment, which are mostly long term and will be better solved by the application of supply side policies. Furthermore, a cut in taxes depends on It depends on other components of AD.
An economy of scale is the reduction in long-run average and marginal costs arising from an increase in size of an operating unit. It can be external or internal; external will increase the productivity of the industry and will result in a reduction of costs and internal is related to the shift in average production costs for a business as it boosts its overall product output and the average cost per unit falls until maximum efficiency is attained. Albatross could save money if they bought items in bulk but since they make items as orders are received, the items would sit in the warehouse and take up space that would be used quicker. It is very expensive to store raw materials because
Retirements cannot lengthen indefinitely without massive gains to productivity, or increases in the supply of younger workers; the math doesn't work. Eventually, living standards start to fall. The combination of the deadweight loss from taxation and the shift of workers from production to dependence makes it harder to pay for the retirement benefits--effectively, Social Security undercuts its own political sustainability. This is the real problem we face, and it's barely hinted at in the Trustees report. 2.
But its payout ratio was unsustainable. Hence, the optimal way is to reduce its shares outstanding with a stock repurchase. by repurchasing shares, the company could adjust its unbalanced capital structure, and even raise debt to finance its purchase. It also will send a signal to the market that the share may currently be undervalued, and thus boost the share price. If the share is fairly priced, market could also interpret the repurchase behavior as a positive signal that the board has confidence in the company’s future performance.
With this as the case, there is an improvement in the desired business outcomes: lower turnover, increased sales and profitability, higher customer satisfaction and higher productivity. Statistics are available and the following chart shows the results from one of many sets of results. It indicates that, on average, the higher the score on the exam, the better the job performance and vice versa, the lower the score the weaker the job performance. Cost savings is another benefit to administering the tests. The cost of making a wrong decision is high and testing may be a particularly worthwhile venture to prevent these decisions.
An automatized process will be more cost effective and will also permit to have less overhead, therefore reducing the labor risk of unionized employees demanding privileges through stikes or walk outs. Airborne needs to increase the advertising spending in order to keep their position in the market and gain market share from UPS taking advantage of the credibility loss they got recently over the 16 day strike. Airborne should emphasize the advertisement into the low cost position and reliability it holds.
So while the league is taking place, people will generally spend money during these hours creating additional revenue. The total sales for one year is $1,844,000. They also are busy somewhat during the hours of Friday night, Saturday night and Saturday mornings. Their Saturday mornings consist of a kid’s league and they also have four Ladies leagues on Monday and Wednesday afternoons. One of their problems is that Monday thru Friday until 6pm they are consider slow.