Due to her concerns, Maggie has used all of the company’s cash to pay off the increased inventory immediately to receive the two percent discount offered by suppliers. (Horniman Horticulture: Chapter 9) Issues/Problems According to Exhibit 1, cash has significantly declined over the past four years for a number of reasons. Both inventory and accounts receivable have increased substantially. Inventory accounts for nearly half of the total assets value which hinders Horniman Horticulture from having more cash on hand because the inventory is not very liquid. Horniman Horticulture would have extreme difficulty creating cash from its inventory is an
In 2002, tariffs on imported steel intended to aid the ailing steel industry raised the price of steel within the United States to between 35% and 60% above pre-tariff prices. As a result, customers of steel companies struggled to stay in business and overall demand for steel dropped sharply. Tariffs are not the
In recent months, she has single-handily renegotiated the renewal of BIMS presence at the center. Although this seems to be a blessing to upper management, the lower-level employees are losing moral at an alarming rate. Greater numbers of employees are quitting the company, and employees are using much more sick time and not doing quality work while on the job. The turnover rate has jumped from the previous 55% to 60% range, to the more recent 64% for unknown reasons. Barbara Tucker is determined to figure out the root of the problem for the new rate.
For a family of four that level is $22,000 annually or less. The thing, is a lot of people have to live way under that level because the jobs that they can get do not pay much at all. Many high school students are dropping out of school to get restaurant jobs to help their families out. Also, people who want to go back to school to better their lives can’t because the cost is too much and there is not enough aid to pay for college. Because of the recession many Americans are forced to leave their houses and move in with family.
Massive Layoff of employees Massive layoffs of employees will affect everyone’s money that they spend. Let’s take an example of this. Blackberry recently cut 4500 people out of their workforce. Blackberry has offices in Europe, Canada, and the United States. These people had a good salary and now they have none.
This means that employees may be disgruntled about the socialization process, and not by the job itself. Analysis of reasons for leaving revealed that the main reasons were for career advancement, to travel and work elsewhere, for a complete career change, and because of dissatisfaction with the job role. According to the US Department of Labor, Bureau of Labor Statistics, the average annual turnover rate for any industry in the US in 2006 was 23.4% (nobscot.com). Telesouth is losing nearly twice as many employees in the first year after the recruitment/selection process. The consequences if this issue is not dealt with are the loss of $20,000 per person and a decreased sense of
Ove the past year, due to current economic conditions, the company has experienced a significant loss in the stock values. This significant loss led to a layoff of several employees. Flooding, forest fires, protest groups and the economic crisis are all reasons for the company to experience a loss in sales of about 30 percent based on the previous year’s sales. The loss in sales as well as the other rivals offering substitutions in the equipment manufacturing industry the company has requested a situational analysis. This analysis of the situation will determine a way to turn the company around and get back to the status they once held in the industry.
Nadic Construction Case Analysis Nadic Construction Company was a family-owned mechanical subcontractor business and although the gross profit had increased sharply, the profit as a percentage of sales declined drastically. Project managers are expected to report into Nadic Jr. the company president. However, due to his regular absence from work each month, project managers are seen making their own decisions and in constant struggle for power. The estimating department is controlled by one individual John and the assigned project manager is expected to manage the effort within the estimates and required to provide feedback on standards. This seldom happens as there is a perception that by helping John, he may be next in line for an executive promotion.
Overview HS Holdings, one of James teams’ accounts, had a situation where their entire system was down for two hours. During the technology interruption, HS Holdings lost thousands and was seeking the $300k service contract money returned to them. HS Holdings was dissatisfied with their customer service and expected James’ team to acknowledge their problems much more efficiently and effectively. Although HS Holdings support team contacted Sun Microsystems, Inc. for support, nobody engaged their needs. Hence, this was a direct violation of their service contract.
An interesting thing to remember is shareholders of a company cannot pay them first before, employees, suppliers, creditors, the government, and stakeholders they will receive nothing. Shareholders take on many risks when running a firm and if the firm is not managed properly to maximize the shareholders wealth, the investors will have no desire to accept the risks for that business to succeed. Does the firm appear to have an agency problem? Reading the case study, yes the firm does appear to have an agency problem. The firms stock has declined $2 per share over the last nine months but the firms profits have been rising.