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How a college education increases one's human capital
It is a universal belief that a more educated workforce leads to an incredible human capital. Therefore, the thought of retaining higher educated graduates is important towards regions and cities maintaining competition among themselves. This eventually leads to technological and economic growth. While there has been a compilation of data from many regions and states in educational achievement, there also exist relentless research studies showing the impact universities and collage have (Frank, 2005).
A study by New York federal bank published in their Economic Geography journal in 2011 demonstrates that universities and colleges increase Human Capital in their regions. Utilizes educations Department data as from 1999 down to 2000 and also 2006 shows the magnitude of volume of college degrees attained in metropolitan regions. It also makes use of survey by American Community's data in estimating levels of human capital…… [Read More]
In the end, those new highways will be just as congested as the current ones. This option appears to fill the benefits of both the stadium and the education options, at least in the short run. The long-run benefits of more highways are questionable, whereas the long-run benefits of better education are not.
The no new taxes option argues that by keeping taxes low. There are some perceived benefits of this -- for example lower taxes attracting business and investment. It is questionable the degree to which a temporary half-cent sales tax increase would hurt business investment, however. In addition, the opportunity costs of two major long-term infrastructure projects in education and transportation should be considered. Economic growth throughout the world has been predicated on the provision of infrastructure such as improved transportation and education. It is not reasonable to assume that future investments need not be made. An inadequate…… [Read More]
Brick and mortar universities offer attractive networking opportunities for students that are not as easily utilized online.
Of course, it might be argued by a dedicated University of Phoenix student that the experience of working while attending classes is just as valuable as being a member of a university lacrosse team, university newspaper, or debate team. Furthermore, the maturity and responsibility of juggling work and school can be beneficial, and is something that more traditional university students must sacrifice. University of Phoenix students can still discuss their course matter online with students and faculty, and may be better able to see the relevance of learning in the real world, since they are a part of that world as workers. Furthermore, students can spend more time with their families while attending school.
Merit-based aid to attend a university clearly seems to be an example of an 'efficient' market -- the best…… [Read More]
Human Capital - Opportunity Cost
"Human Capital." Gary S. ecker. Human Capital. 1975. The Library of Economics and Liberty web site: (http://www.econlib.org/library/Enc/HumanCapital.html).
Purpose of Article: Gary ecker's article establishes that investment in human capital through education and training leads to increases in the standard of living and overall productivity of both the economy and the individual.
At the individual level, ecker uses the concept of opportunity cost to analyse the trends in higher education among various segments of society and at the macro level, ecker establishes the benefits of investing in human capital.
Economic Concepts Discussed: There are a whole range of economic concepts implicit in "Human Capital": human capital as an important resource, opportunity cost, cost-benefit analysis, long run cost, the 'creation of wealth,' subsidy, and wage discrimination.
The principal concept in "Human Capital" is the importance of an educated workforce in economic growth in creating increases in productivity…… [Read More]
Some poor graduate students may decide that they have better things to do than clean. "Outsourcing household tasks meant they had to take on more debt, but they calculated -- correctly -- that spending an extra hour working on a paper was better for their lifetime expected earnings than spending that same hour vacuuming" (Rampell 1). And the more people avail themselves of such sources, quite frequently the greater the proliferation of outsourcing entities and hence a subsequent downward pressure on price in a competitive market like cleaning services. The downturn in the economy has also generated many more people looking for part or full-time work doing 'odd jobs' (Rampell 2). This lowers the opportunity cost of money spent on outsourcing.
On an individual basis, outsourcing can also make time for more leisure. For example, a working mother can outsource housework to spend more time at the gym or playing…… [Read More]
If your next-best alternative to seeing the movie is reading the book, then the opportunity cost of seeing the movie is the money spent and the pleasure you forgo by not reading the book. The word opportunity in opportunity cost is actually redundant. The cost of using something is already the value of the highest-valued alternative use. Nevertheless, as contract lawyers and airplane pilots know, redundancy can be a virtue. In this case, its virtue is to remind us that the cost of using a resource arises from the value of what it could be used for instead. (Henderson, 2002)
Opportunity costs refer to the costs associated with giving up an opportunity. They are relevant in the marketing of digital products when one considers the value lost to the company when giving away a product free. Since digital goods primarily consist of fixed costs and often have zero marginal costs…… [Read More]
The relationship typically is that a decrease in supply will result in an increase in price. In this case, there is a rational explanation for the decrease in prices at the same time as the decrease in supply. New housing starts are a lagging indicator. Housing prices will typically begin to fall before new housing starts. Therefore, the two can fall at the same time, but the relationship is not as implied in the true or false proposition.
3. a) a blight killing off the Brazilian crop would result in a decrease in global coffee supply. Demand would remain unchanged. Therefore, coffee would be subject to an increase in price.
A b) a change in the price of tea may or may not impact the global coffee market. In some markets, they are substitutes but in many countries consumption is dominated by one or the other.
Thus, there is little…… [Read More]
The concept of opportunity cost reflects that when an asset is used, that asset cannot be used for something else. So if she chooses to buy a new car, the resources used to make that purchase cannot be utilized anywhere else. This is particularly important when resources are scarce. In her case, she needs to think about what the decision is. Is the choice between a new car and a used one? Is it a choice between living in an outer suburb with lower rent and a new car, or a hip inner city neighborhood with higher rent and no new car? A new car usually represents some sort of trade-off, and Stella needs to think about what those trade-offs are before committing to this purchase.
The table of total costs is as follows:
This shows that…… [Read More]
Obviously, the concept of opportunity cost is very useful for making decisions (Mankiw, 2008) because at the end of the fiscal year, the person who chose to vacation for five days in Costa ica would have $1,700 less in his or her bank account that the person who chose to stay home and work instead of going to Costa ica. Without considering opportunity costs, a person could make the mistake of considering only the actual cost of the Costa ico trip and never realize that the decision would actually cost an additional $1,000 compared to the alternative choice being considered.
Mankiw, N.G. (2008).…… [Read More]
Joint costing systems should bear in mind the legal constraints on the use of such systems, and should provide accurate information to managers in order to be most useful in the managerial accounting context.
Firms need to remain competitive, which indicates that the market will set prices to some degree. This implies that firms can make better decisions with respect to what projects/products they wish to pursue by understanding the cost structure of the product. If the product is not viable at the cost at which it can be produced, then the firm can improve profitability by dumping the product.
Banham, R. (2000). Off target? CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/2990860/c_3046531?f=magazine_alsoinside
Frederick, S. (2011).
The persuasive power of opportunity costs. Harvard Business Review. Retrieved April 5, 2011 from http://hbr.org/2011/01/column-the-persuasive-power-of-opportunity-costs/ar/1
Katz, D. (2002). Activity-based costing (ABC). CFO Magazine. Retrieved April 5, 2011 from http://www.cfo.com/article.cfm/3007694
McKinsey & Co.…… [Read More]
Opportunities to Improve elationship Banking at Al ajhi Bank
In an increasingly globalized and competitive marketplace, many banking professionals today are faced with the need to develop informed and timely responses to changes in consumer demand, as well as fluctuations in the global economy that can have a positive or negative effect on investments. In affluent nations, this need has become especially pronounced as billion-dollar deals are routinely involved, and bankers working relationship banking operations stand to assist banks in attracting and retaining wealthy private and highly fluid commercial enterprises as long-term clientele. The enormous amounts of money that are involved make it important to formulate such responses in ways that add value to the banking operation including providing a competitive advantage. In some banks, relationship banking at this level is termed "privilege banking" or "prime account management," but the common feature of these business units is targeting high net…… [Read More]
moves any sort of raw material, products or shipments in general, the subject of logistics is a very important one. Whether one is speaking of forward logistics or reverse logistics, there should be a fairly constant amount of cost/benefit analysis used and harnessed so as to maximize profit and logistical capacity. Indeed, there is almost always more than one way to do something form a logistical standpoint but the benefits of each method as well as the costs should always be assessed to make sure the proper method is used. Both cost and benefits need to be taken into full account because both matter a great deal.
Some people might be confused by forward logistics as compared to reverse logistics. However, the subjects are actually fairly easy to absorb and interpret with the proper definition. Products and materials, even if slightly compromised, typically retain their value even if…… [Read More]
Dibsa should turn towards the market-based pricing strategy, which sees the implementation of competitive prices for the 3-in-1 Lawnmower. The selection of this combination of strategies would generate several impacts upon the company, but most of them would be obvious at product lifecycle level. In this order of ideas:
The sales revenues would be significantly high throughout the first six months and they would allow the company to cover for the large costs incurred in the manufacturing of the product as well as register profits; they would however decrease with the implementation of the market pricing strategy and the 3-in-1 Lawnmower would metamorphose from a star product into a cash cow
The costs incurred in the manufacturing of the new lawnmower have already begun to decrease and will continue to do so; the actual impact of the pricing strategy is limited, with the specification however that these costs will not…… [Read More]
On the other hand, the strategic implementation occurs once the project is actually started. The challenges that a manager faces at this point are numerous, mainly due to the fact that while the strategic planning was a theoretical, probabilistic evaluation on things that had not occurred, the implementation phase will bring about real challenges, to which the manager must find solutions. The leader needs to be able to react to real-time event, many of which may be unexpected and not identified in the strategic planning phase.
Project management principles are important because they provide a theoretical background for implementing and planning a project, which could be helpful in terms of determining the success of a project. They will not provide a recipe for success, but will be a good starting point in the lifetime of a project.
3. If successful, the opportunities of implementing its new strategy are important. First…… [Read More]
" (2000) There are other factors associated with change that enhance the ability for the independent hotels to compete as there is a segment of customers with the desire to discover for themselves what best satisfies their taste. The independent hotels offer guests "the option of maintaining their differentiation while affiliating with 'soft' brands, which reflect a defined product and offer similar service support as franchisers or chains." (Swig, 2000) Swig additionally reports that Rob Cornell of Preferred Hotels believes that "global distribution brands have evolved today to provide the independent hotel owner; manager access to the latest in reservation distribution and marketing technology, partner relationships, quality stands, volume purchasing and sales infrastructure. " (2000) Technology is said to be the "new vehicle" that enables equal access..." (Swig, 2000) Finally, Swig states that "membership or affiliate organizations have matured and gained credibility with consumers. At the same time these groups…… [Read More]
The combination of these four tools can also serve as the foundation for frameworks to define the future direction of product strategies as well. Once the extent of causality is established between products, price and interpolated for markets using the State Gap and Trend Analysis, more effective pricing models can be created that provide more granular feedback on pricing elasticity (Bryan, osen, Marland, 1980). Using these techniques a company can then define product lifecycle-based strategies for managing pricing over the long-term, optimizing profitability in the process (McCue, 1993).
Combining these four analytical tools together can also quantify the overall size of market windows with much greater accuracy and precision than any of them acting in isolation can. Companies in very high churn business models including disk drives and other commodity-driven components can only partially be effective in the strategies without using these four tools in conjunction with each other. Using…… [Read More]
opportunities in Asia (South East and South Asia) are huge and so are the challenges
For the last decade the countries like Thailand, Malaysia, Singapore, Indonesia, Hong Kong and South Korea that collectively forms the part of South East Asia have registered consistent growth year after year making an impressive position in the economic development on the international level (Pempel, 1999). These countries have shown the growth in terms of Gross Domestic Product at an average rate of 6% to 9% annually. The dawn of 1997 has darkened the glory of these courtiers with a major slump in the economic conditions and financial development. Asian financial crisis that erupted in 1997 has miserably affected the local stock market and currency market of the Asian countries. The Stock market of these countries had declined by 70% and with the same figure the currency of has also depreciated against dollar, forcing them…… [Read More]
Universities are often ranked by the strength or weakness of their graduate programs and the quality of original research the university is able to provide in certain fields of study. Furthermore, in addition to offering traditional graduate programs, the University offers an opportunity for those holding bachelors degrees to earn graduate certificates through work experience. This opportunity will be appealing to those students seeking post-graduate education but who need to work rather than being full-time graduate students.
The University's outside business partnerships also offer benefits to students. Most universities have outside business partnerships, such as vendor relationships with on-campus providers. However, the University goes beyond traditional vendor-relationships. It actively cultivates a wide variety of partnerships with businesses, which increases its access to research opportunities. Furthermore, these established relationships with corporations help increase internship programs and also promote the hiring of graduates. The influx of corporate money to the school helps…… [Read More]
benefit-Costs of pursuing an MA
Even though each of us has his/her own perspective of happiness and sense of life, we all agree that the integral part of these are the financial stability complemented by personal professional success. That is why we all strive very hard to achieve ambitious financial and professional goals and choose our own paths to them. ut through historical and empirical evidence it has become clear that on average, the better education one has, the better are one's chances of fulfilling the boldest dreams.
We, Americans, spend millions of dollars on our education, which we consider as investment in our human capital. According to the public opinion research conducted by the Educational Testing Service: "Nearly all (96%) adults believe that a college education is a good investment, including 72% who say it is a very good investment."
I have achelor of Sciences degree from Hampton University…… [Read More]
Profit Analysis and Costing for the 21st Century
Value costing is about looking at the different aspects of a business paying particular attention to the opportunity cost they represent, how much they are likely to financially benefit a firm, and how much they are likely to cost it. Through this analysis, it is possible to determine the parts of the business that function the most efficiently and locate the parts that do not.
It is thought that value costing is no longer relevant because business has become far more complex than the traditional format, and with the rise of the internet and the increase in ebusiness, more and more factors must be added to the equation. It is also though that this form of costing is not only too simplistic, but takes too long to put into practice, and harder still to gain any meaningful results from. Value costing tries…… [Read More]
One example has been the printer market; firms will often subsidize the printers that are sold, with the aim of creating long-term profits by the ongoing sale of the printer cartridges (Thompson, 2007). The cellular telephone market also operates in a similar manner, with mobile phone service suppliers subsidizing the cost of the handsets in order to gain a contract from a customer, the cost of the subsidy is offset against the profit that will be gained on the service contract. Therefore, the firm will need to look at the impact that ending production may have on the sale of other goods. However unless there is a complimentary item then it would appear some changes may need to take place.
If there is a loss with the fixed costs of $1,000,000 it is will be expected that higher fixed costs will increase the loss.
Assessment with fixed costs at $3,000,000…… [Read More]
Logistics Cost Benefits
LMT 305 Cost and Benefits Analysis in everse Logistics-- Fall 2015
When it comes to a company that moves any sort of raw material, products or shipments in general, the subject of logistics is a very important one. Whether one is speaking of forward logistics or reverse logistics, there should be a fairly constant amount of cost/benefit analysis used and harnessed so as to maximize profit and logistical capacity. Indeed, there is almost always more than one way to do something form a logistical standpoint but the benefits of each method as well as the costs should always be assessed to make sure the proper method is used. Both cost and benefits need to be taken into full account because both matter a great deal.
Some people might be confused by forward logistics as compared to reverse logistics. However, the subjects are…… [Read More]
Leverage permits superior possible returns to the investor than otherwise would have been obtainable but the probable for loss is in addition superior, since the investment becomes valueless, the loan principal and all accumulated interest on the loan still need to be paid back (Kotarski, 2009).
In monetary economics it has been projected for a long time that financial capital is put into a company each time the probable return of the investment lies beyond the opportunity cost of capital. Opportunity costs point to the worth that would have been produced by another utilization of capital. In the monetary markets opportunity cost of capital matches up to the yield of an investment with a related danger. A corporation generates worth when it utilizes capital more resourcefully than the market. In order to figure out if and how much worth has been produced, the yield of the capital utilized by the…… [Read More]
Price of bond= 0.385543*1000 +6.144567*100= $385.54.64+$614.45
Price of bond= $1,000
So, price of bond B. is $1,000 b. For market interest rate equal to 12%:
Price for bond a:
Market interest rate is equal Coupon rate is equal Face value Frequency Number of years to maturity Number of Periods Discount rate annually Discount rate per period n, periods r, per period 12%
10% $1,000 Annual 20-20-12.00% annual 12.00% 20-12.00%
Now we need to calculate PVIF and PVIFA.
For calculation of PVIFA (i, n) and PVIF I is equal to 20 periods and n=12%
PVIFA= (1- 1/(1+.12)^20)/.12
Price of bond= 0.103667*1000+7.469444*100=$851
Price of bond a = $851
Price of bond B:
Market interest rate is equal Coupon rate is equal Face value Frequency Number of years to maturity Number of Periods Discount rate annually Discount rate per period n, periods r, per period 12%…… [Read More]
Opportunities Faced by Leaders, Society and Organizations
Problems and opportunities facing leaders, communities and organization are always a cause of debate in the society. They can arise in many different ways and exist in many forms and society finds it's our way of meeting these challenges and responding to such opportunities. The articles chosen for this paper focus primarily on the issue of rising tuition costs and it's impact on college enrollment and this topic is chosen because it affects leaders, communities and organizations alike.
The first article in this connection is written by Donald Heller. The article explains how rising costs impact enrollment in colleges and universities. The author found that all things being equal, rising tuition costs will lead to lower enrollment. A decline in enrollment is however a subjective issue dependent on some other factors including type of institution. For example it has been found the community…… [Read More]
The business cultue of the United Kingdom is chaacteized by the value of fee economy and pivate popety (Rendtoff, 2009). At anothe level, it is maked by a desie to manage wok and life issues. The employees in Bitish oganizations have long been maked out fo thei elatively leisuely pace of wok and thei pioity fo elationship issues ove wok elated issues. Compaed with thei Ameican countepats, employees in UK companies demonstate a less aggessive wok ethic and seek to maintain a low pofile. Display of wealth and pesonality taits is geneally discouaged in Bitish society because a highe emphasis is placed on undestatement and social modesty. Business manages typically demonstate a patenalistic elationship which is also appeciated by thei subodinates. Bypassing one's supeio is disappoved in Bitish oganizational cultue (Giffin & Moohead, 2011). At the same time, employees in UK companies enjoy geate autonomy than employees in India o…… [Read More]
Globalization has brought tremendous benefits to human society, in terms of quality of life, but as with anything, it comes with costs. Many authors have argued that there are both positive and negative effects of globalization, and to evaluate the merits of globalization is simply to balance these effects. Do the benefits outweigh the costs? This ends up being a matter of perspective, and it also often compels one to analyze the existing state of the world vs. An imaginary non-globalized state. Globalization is cited for increasing the wealth of many -- living standards have increased for billions. It is also criticized for increased wealth inequality. This paper will demonstrate that the costs of globalization do indeed outweigh the benefits. The costs are not trivial, but they are also overstated in a few key respects. A lot of these costs reflect flaws in the system design of globalization, but since…… [Read More]
The Equal Employment Opportunity Commission (EEOC) is far and away the most prolific and omni-present agency that exists in the United States, at least at the federal level, that regulates employers and protects employees from discrimination and other unlawful and/or unethical employment practices including inequity in who is hired, who is fired, who is promoted and why, who is given raises and why and so forth. While budgetary constraints and some of the EEOC's recent decisions certainly deserve attention and scrutiny, the EEOC's status as the ultimate arbiter of employee rights in the United States is not going to change anytime soon.
The mission statement of the Equal Employment Opportunity Commission (EEOC) is to "stop and remedy unlawful employment discrimination" (EEOC, 2014). The vision statement of the EEOC is "justice and equality in the workplace." The EEOC states quite clearly on their website that they know full well,…… [Read More]
Stadium Jumps" the writers discuss the cost of building a baseball stadium and renovating obert F. Kennedy memorial stadium in Washington, D.C. The cost analysts note that the original cost estimate for the project was too low, and that the actual costs of completing the project could be as much as $91 million dollars more than originally anticipated. D.C. councilmen overseeing the project expect that the total costs for the project could climb as high as $486 million dollars, a problem as the original cost estimate was less than $400 million.
The cost estimate is off because it did not account for additional costs with regard to improvements for roads surrounding the stadium, addition of sewers and Metro routes, the money necessary to completely renovate the stadium and more than $30 million dollars in contingency funds for "the likely cost of overruns."
The problems associated with the poor cost estimate…… [Read More]
Opportunities and threats faced by Toyota Module 2-Case Study [Pick the date]
Like any other organization, Toyota has its share of threats and opportunities which can either make or break this organization if not addressed properly. Toyota has been lately addressing environmental issues caused due to emission of harmful gases and also major cost cutting strategies required right after recent wave of recession. Lately, operations of Toyota have been disturbed due to product recalls caused due to compromised product quality and natural disasters, strict environmental policies and also because of increasing value of yen.
Current Opportunities for Toyota and what Toyota is doing to exploit them:
Alliance of Toyota and Ford
Toyota has been known for its light weight, user and environment friendly cars. Using its Hybrid technology, Toyota is providing an answer to user's worries caused by skyrocketing fuel prices. Furthermore, one must not forget the all-time…… [Read More]
Another dream would be to expand outside Asia in the long-term and the Taiyo team should go into specifics (or at least into rough outline) about how to achieve this.
The Taiyo team should also discuss strategies for future competition
A related subject would be how to further increase shareholder value and improve company's operation
Finally, the Taiyo team should brainstorm ideas on how to improve cash flow and increase the value of the firm by changing the firm's placement of orders and terms of payments and receipts
3. What should Taiyo do about its position in Nicera?
I think Taiyo should increase its ownership in Nicera since Nicera has a quite positive future prospect. Moreover, Taiyo seems to be versed in the complicities of Japanese firms savvy and goes for the "smart guys who have good businesses, whose companies are not well-known, and we will work with them in…… [Read More]
New payment system for parking near MBTA
The benefits of the new proposal for a pre-paid monthly scanned parking pass are twofold: it will make commuting to the city easier for regular commuters and also result in revenue increases for the city. Because of increased the ease of parking cars, more commuters will be willing to use public transportation, and there will be less congestion and pollution overall, indirectly improving the situation for all residents and pedestrians in the city.
Commuters will like the plan because it will better ensure them of a regular parking spot. It will save time in the morning, since presumably many people must rise early, just to ensure that they have time to pay for parking. In today's cashless society, the use of prepaid parking spots via a monthly pass ensures that commuters do not need to fumble with cash and coins to pay a…… [Read More]
Competitors to hallmark Cards have been creating customizable edible cards through configurators that take pictures anyplace them on the chocolate of the card. Mass customization can serve to define long-term value for a given product or service by customizing it to the need of the consumer (Pine, 2004).
The threats to the supply chain hallmark Cards will have to work with are major. This is uncharted territory for the company and they will need to get more involved in ensuring product quality of choclate is sufficient to sell the product. The second threat of costs of manufacture will also need to be closely managed and evaluated over time as well; as this is a business the company is not as familiar with as their greeting card business. The third dominant threat is from competitors who may choose to emulate them and work to overcome their market position in the…… [Read More]
Use this sample to fine-tune your questions, decide how to analyze the data, and change your questions to make your analysis easier" (p. 6). The posters described above helped to raise awareness throughout the hospital concerning the availability of the custom survey instrument on the hospital's intranet which had previously received few responses.
In reality, the problems described above were well-known throughout the hospital and steps were underway to resolve some of these problems, but at a snail's pace. These problems are also endemic to many larger organizations that have well entrenched bureaucracies.
Providing world-class healthcare in the 21st century is a challenging enterprise, but patients deserve the best care that hospitals can provide. Because resources are by definition scarce, it is therefore important for organizations of all types and sizes to maximize their resources in order to achieve a competitive advantage over those that do not. For…… [Read More]
In addition, a growing number of countries in the region have also started strict traffic sign and signal enforcement campaigns (Martin, 2005). In addition, launched in 2009, a governmental campaign to reduce traffic accidents in the Sultanate of Oman has sought to raise awareness among Omanis concerning the need to use safety belts in general and the need to use safety seats for young children every time people take to the road. In addition, the oyal Oman Police, the Ministry of Social Development and the Ministry of Education have collaborated with the Omani Society Safety on the traffic safety initiatives as discussed further below.
Civil Society. According to ajhi (2011), there are a number of civic organizations that play an important role in promoting traffic safety and raising public awareness about the need to reduce traffic accidents. These organizations include the Omani Society for oad Safety which is dedicated to…… [Read More]
With the economic downturn, beer sales are slumping. People just don't want to drink as much. But if you look at sales of microbrewed beer, those sales are not slumping. In fact, dollar sales of microbrewed beer increased 10.5% last year, and volume sales were up 5.8%. People are either unwilling or unable to spend money on expensive luxuries, but drinking better beer is a luxury everyone can afford.
I think that if we can bring in beer from local microbreweries and sell it at our ballpark, we can restore beer sales. People may not be as willing to pay $5 for a regular beer, but they will pay $7 for something better. It's a better value proposition for the customer and it gives us a higher markup.
So not only do we sell more beer, but we make more money on every beer we sell. It will cost us…… [Read More]
Nu Star Energy L.P. is a limited partnership that is publicly traded and headquartered in San Antonio. It has 9,063 miles of pipeline, eighty-six terminal facilities, four storage facilities for crude oil and two refineries for asphalt. It is the second in size among independent liquid terminal operators in the United States. It operates in the U.S., Netherlands, Canada, United Kingdom, Antilles and Mexico. The entire system of the partnership can hold up to 86 million barrels in its storage infrastructure. It has refineries for asphalt, crude oil and has pipelines for refined products. Also present are terminals for refined products, a storage facility for petroleum, a terminal operation as well as storage facilities for crude oil. NuStar strives to protect the environment and continually works to improve its programs and processes so as to meet even the most stringent of environmental practices. This has resulted in better environmental performance.…… [Read More]
Cost Benefit Analysis and the City’s Water Dilemma
This memorandum focuses on describing the value of cost benefit analysis. It does so by applying the first four steps of the U.S. Army Cost Benefit Analysis Guide as they relate to the city’s need to increase its water treatment capacity. The purpose of this memorandum is not to take the faculty of judgment away from any council member but rather to show how cost benefit analysis can facilitate the judgment process and provide support for pursuing the best possible opportunity at this time.
Step 1: Define the Problem / Opportunity; Describe the Background
Every problem is an opportunity. The problem that the city faces is with respect to its need to upgrade or update its water treatment plant which is more than 40 years old and costly to maintain. With the large automaker set to come to the unincorporated area…… [Read More]
Differentiate from other low cost providers to increase volume
Brand identity commands a premium price, increasing margin
Brand identity becomes identifiable with a specific niche
Build brand identity quickly to reduce the threat of new entrants
Lack of diversification
Diversify into many products to promote volume sales
Diversification is not part of this strategy.
Diversification is key to opening new market opportunities.
Inherent in the strategy -- low cost defends against this
Differentiation seeks to neutralize this threat
Product uniqueness defends against this threat
There should not be substitutability; if there is another innovation is needed
Sources: Porter, M. / QuickMBA.com (2007)
Brand identity is one of the major strengths of Kraft, and its brands are household names within its distribution area. hile brand…… [Read More]
New Venture Opportunity
Delish Confections has been around since June, 2013. It is a newly established family-owned business in the heart of Gold Coast city, Queensland, Australia. Delish Confections is a craft bakery that promotes and sells a wide variety of breads, cookies, cakes, brownies, donuts, rolls, fillings, snacks, muffins, batters & coaters, spreads & smears, ice creams, pretzels, waffle cone mixes, carbonated soft drinks, energy drinks, and numerous dairy and non-dairy food items. Delish Confections is committed to provide the highest quality of baked food, confectionary items, and beverage products at very competitive prices. The company is currently operating in 11 cities in Queensland State and has employed 73 people at its stores, offices, and production units.
SWOT Analysis for Delish Confections
The biggest strength of Delish Confections is its manufacturing capabilities and integrated product range. With the help of advanced production plants and machineries, Delish…… [Read More]
This will help to set off the startup costs.
The initial production costs are realistic because of the suggestion that outsourcing will be used. The company is relying on an outsourcing expert who has written several books on the subject. The software development will also expand to an offshore location which potentially can cut cost even further. USuggest plans to use search engine linked online portals as a marketing tool and they are seeking a merger or acquisition with a large, established Internet company to further increase profits for their brand. Mergers can lead to the company becoming more efficient by utilizing economies of scale. Cost saving can also be recognized by combined marketing, advertising and by cutting down on the overlap of &D (Shukla and Gekara, 2010).
Even though this venture is in the startup stages, it definitely has the potential to grow into something much larger. The target…… [Read More]
Business Plan Costs
Preparing documents is very common these days using the software like Microsoft word and other related things but in order to make more complex documents and presentation it requires much more complex and advanced software and techniques so desktop publishing includes preparing print or electronic publications (United States Department of Labor, 2010).
These kind expertise and software are generally away from the reach of general public so it makes a huge market for these desktop publishers who have the right skills, professionalism and technology to create the documents for people (United States Department of Labor, 2010).
The demand for these experts were so high that according to the data of States Department of Labor Bureau of Labor Statistics (BLS) for 2008 shows that there were 26400 employed as the desktop publishers. But as for now this figure seems to reduce or decline as it is projected to…… [Read More]
Product Costing systems (ABC, job costing, put costing, .) advanced topic managerial accounting the thesis statemenit a position body paper show evidence support position. The paper discuss opposite point view discuss position valid.
Product costing systems
Product costing system is a management tool which identifies the actual cost of producing each product. It identifies the profits and loss which can be gained or incurred on each product, hence giving companies the opportunity of identifying and promoting of profitable product while dropping, re-pricing or redesigning of unprofitable products Brierley, 2008.
Product costing is a highly sensitive area for managerial accountants, recently, most of them have changed their focus such that they give their attention to appropriate treatment costs which are directly associated with resources that are committed to support activities, which within the company do not vary proportionally to production once the initial capacities have been set. In such as an…… [Read More]
Discuss the challenges of values-based business decision making ethics in the current marketplace.
A values-based business decision is focusing on how ethical practices will influence the actions of the firm, their relationship with customers and its long-term impacts on the brand name. This can provide organizations with the tools they need to become more competitive and it enables clients to offer them with something more. In the future, this helps an organization to be able to stand out and offer stakeholders with something more. (Khanna, 2010) (McMurrian, 2006)
However, there are challenges associated with using this basic approach in the current marketplace. The most notable include: added costs and creating a congruent strategy. In the case of added costs, the use of this model has been shown to increase the amounts of training and time discussing why ethics are important to staff members and managers. The basic idea…… [Read More]
Assessing WalMart Cost of Equity
Cost of Equity Using CAPM
To calculate the cost of equity using the capital asset pricing model (CAPM), the equation requires collection of some data regarding the firm and the market. The equation tells us what data is needed, the equation is cost of equity = F + ?(M - F). F is the risk free rate, M is the return on a market portfolio, and ? is the beta.
The equation starts with the requirement to determine the risk free rate (F). The risk free rate is usually the current rate for government bonds. There is some flexibility here, as government bonds are issued over different periods, a common term used is the one year bond rates. The current rate given for 20th December 2013 is 0.13% (U.S. Department of Treasury, 2013).
The next input is the return on the market portfolio. This…… [Read More]
This provides tremendous opportunity to build market share without significant increases in infrastructure. The downside of these markets is that they tend to be less efficient, because fixed costs are higher in relation to revenues. The company can win in such markets, however, if it uses its globally powerful brand to gain a stronger presence in underserved markets, thereby pre-empting rival firms from entering these markets. ith Coca-Cola establishing market share, it will be all the more difficult for other companies to match the distribution clout and brand loyalty that Coca-Cola can build up.
In every market, competition remains a serious threat. Economies of scale can help the company in two ways. The first is that it improves margins, leaving more money left over for marketing efforts. The second is that there is often price competition in competitive markets. ith better economies of scale, Coca-Cola can withstand price wars long…… [Read More]
ervice (Porter's value chain):
Best low-fare carrier
(a) High capacity usage (few unfilled seats), and is, therefore, one of the most profitable airlines, while many other airlines are unprofitable. (b) It can maintain focus on cutting frills.
Best low-fare carrier by standardization of fleet
(a) Few unfilled seats. WA has only one basic type of aircraft. This reduces training times (b) it can continue this direction.
Price and great staff relationship
(a) Employees work very well as a team (b) Employees are encouraged to have and show their sense of humor. This should continue though within bounds
Flexible as well as unionized.
tep 4: (a) Maintains very good relationships with its unions (b) may need to set conditions with its flexibility
Operations (Porter's value chain):
Mainly operates its own booking service
tep 4: (a) Booking flights is not available except directly through outhwest Airlines…… [Read More]
ationale for the use of life cycle Management at Glazers
LCM (Life Cycle Management) is a framework which manages and scrutinises the performance and sustainability of services and goods. This framework aims to achieve the long-term objectives of the business, and gives less stress on the short-term objectives. For getting a more sustainable value chain, organizations are making use of this framework, which would in turn improve their economic and social performance. Businesses throughout the world are making use of this framework for many purposes, like to improve their standing within the market, to strengthen the relationships with the stakeholders and to produce more environment friendly goods.
LCM urges the companies to look away from their own processes, and focus on activities which are not under the direct control of the company. Such activities include the upstream and the downstream operations that become a part of value chain. In…… [Read More]
correctly identify opportunities and threats to the products of soap and laundry detergent. Specifically, three marketing environment forces will be identified that impact this type of products. These include environmental quality factors such as sewage treatment and other environmental pollution issues in the detergent manufacturing plants, allergies to chemicals or other ingredients in the products themselves and product changes dictated by various changes in washing machines. In the essay, the author will also describe each force and analyze why and how it will impact the soap and detergent industry.
One of the primary issues that the soap and laundry detergent is the issue of pollution in the manufacture of the product. hether from a desire to avoid running afoul of government fines and regulation, to avoid litigation from issues related to pollution or to avoid bad public relations or "ecotage" (actual sabotage by environmental radicals) this issue is probably the…… [Read More]
3% compared with the previous year, but earnings declined 14.1% to $0.55 per share. Analysts remain wary of investing in Abbott, due to widespread uncertainty about the direction of U.S. health reform and generic competition. Its most successful drug at present is Humira, an anti-tumor necrosis factor (TNF) drug (Abbot Laboratories, 2011, Zacks Equity esearch). However, exclusive dependence on a single drug does not bode well for the company's future. The eternal problem for profitability with drug companies is that all new drugs patents expire after a certain period, and are allowed to be produced more cheaply in generic form. A pharmaceutical company needs to show consistent innovation to stay afloat. Combined with the difficulties in curtailing overhead costs, Abbott should reconsider its approach to spending, trimming administrative costs and emphasizing &D.
Abbott needs to show sustained innovation in its &D sector, specifically in drugs that are likely to yield…… [Read More]
A Nine Step Cost Reduction Plan
Describe the Situation
Identifying the Potential Cause of the Problem
Verifying the Likely Causes by Gathering Data
Identifying Possible Solutions
Evaluating Alternative Solutions
Determining the Best Solution
Identifying and Assessing the Risks
Implementing the Solution
Evaluate the Results
Classic Airlines is currently the world's fifth largest airline which is operating a remarkable 2,300 flights daily to over 240 cities. In the previous period, net profits were roughly $10 million on $8.7 billion in revenues. However, Classic is experiencing negative publicity, declining stock prices, as well as the rising costs of fuel and labor over the past year. Furthermore the destructive reports coupled with low employee morale resulted in Classic's Board of Directors requiring a 15% cost reduction over the next 18 months. Management must quickly act to implement a nine-step problem solving method to overcome the obstacles and provide solutions to meet…… [Read More]
blogspot.com/2009/03/air-asia-flight-cancellations.html> [28 July 2010].
This source discusses a common situation that is occurring with some Air Asian flights, cancelations. This is problematic, because many are occurring because the planes are not full; leaving their passengers stranded at airports or forced to find other accommodations. This is significant, because this information can be used to show how some Thai's, were flying Air Asia based upon their low cost fares. However, once their flight has been continuously cancelled, is when many are becoming unhappy with the low cost service. This is important, because this information can be used to show another factor; that could be affecting someone's decision to fly on an LCC or FSC. Where, the lower fares and fewer frills are an advantage that they have over FSC's. Yet, when you factor in issues such as unexpected cancelations; these lack of services and sudden changes could be a turn off…… [Read More]
Clearly the collaboration lessons learned from employee training and development, also used to create a more cohesive financial reporting system, did not get implemented within customer service. As a result, JetBlue in 2007 had the worst financial year of performance ever and eventually replaced their CEO (Carey, 2007). The implications from the Valentine's Day 20007 fiasco for JetBlue at La Guardia Airport shows that when systems, processes and people are integrated together through collaborative processes, there also needs to be an orientation to the end customer, a painful lesson learned by JetBlue last year that the incoming CEO remarked in a recent interview with the Wall Street Journal that "hope is not a strategy."
Susan Carey (2007, June 21). Boss Talk: Changing the Course of JetBlue; New CEO Dave Barger eviews Discount Carrier's Strategy, Seeks Calmer Approach to Growth. Wall Street Journal (Eastern Edition), p. B.1. etrieved April 10,…… [Read More]
Price and cost variables are not fixed. At times, there are some fixed elements to these costs but in many instances these costs are subject to fluctuation. These fluctuations can derive from changes in buying power, changes in commodity prices and other considerations. Likewise, forces in the external environment can bring about changes in the prices the firm can charge. hen uncertain variables are fixed, the company can find that margins do not hold as expected, which can compromise profit. In addition, the price can be set on the basis of variables on the assumption that the costs are relatively fixed. hen these costs provide not to be fixed, the price does not deliver a strong enough margin. The impacts of these types of decisions can be far-reaching. Firms can decide to enter markets that are not profitable, and make decisions with respect to their product line-ups on…… [Read More]
There are many opportunities for Harley Davidson moving forward in the motorcycle industry. Historically, Harley Davidson has sold most of its bikes in the United States and has enjoyed success almost exclusively in the heavyweight and superheavyweight categories. This leaves a lot of opportunity for Harley Davidson to capture other markets, if it can find the right branding and niches. There are also internal opportunities to lower costs and improve quality, both of which could increase profits at the company at least in the short run.
Lehman Trikes represents one of the opportunities that Harley Davidson faces (Looney & yerson, 2011). The trike industry is a niche part of the motorcycle industry, wherein Lehman offers parts and kits for converting existing motorcycles into three-wheeled motorcycles. This industry is likely to remain niche, despite some promising growth from motorcycle enthusiasts. From Harley's perspective, the deal represents a couple of opportunities.…… [Read More]
Having all these in mind, I cannot see any reason for which a person would decide not to work for the Russian Company. Actually, "a good salary is each employee's ultimate goal." In addition, the international development the company has experienced might provide many opportunities to travel and even the leisure activities it organizes are a good reason why Lukoil employees should be proud of their workplace. On the other hand, the fact that the company is relatively young is in direct connection with the existence of young employees within its structures. Therefore, the atmosphere would surely be a pleasant one. esides this, the retirement and insurance benefits would also be an important argument; the table elaborated above has proven that not all the companies of the same kind provide such offers, just as it happens in the case of the health benefits as well.
All in all, I consider…… [Read More]
capitalize on a new opportunity was Microsoft. The company with the world's most dominant operating system completely failed to gain any traction for its mobile operating system, and is essentially a non-factor in smartphones and tablets as a result. Its longtime operating system competitor Apple is one leader, while new entrant Google is another.
Microsoft failed to recognize the opportunity presented to it in mobile, despite operating systems being its core business. As a result, Microsoft now faces a serious threat to its business. The company essentially relies on Windows for the bulk of its cash flow. If it loses dominance in PCs, Microsoft is going to struggle mightily. Thus, the failure of the company to address the opportunity in mobile has morphed into a threat. Additionally, its failure in mobile was the result of failing to recognize a major threat -- the lousy reputation of Windows. Microsoft perhaps took…… [Read More]
There is a fixed amount of output possible for any given investment in production capacity, at all possible costs, and if we plot all the potential scales of output against the resulting average cost per unit of production, the result is a long run average total cost curve (LRATC). These economies and diseconomies of scale cause the LRAC to fall from a high origin to a minimum point, and then (theoretically) eventually begin to rise, where there is a minimum where slope is zero. This is the optimum enterprise scale (Petroff, 2002 n. pag.). Each combination of output and average per-unit cost represents a discrete, short-term, short-run ATC curve for that level of production, and optimum firm size is the SRATC curve where unit cost is minimal (7 units at 32$ each, in Table 6), the MC cost curve crosses both LRATC and SRATC, no other firms enter to capture…… [Read More]
The employer, according to the rules laid out by the IMSS, is expected to contribute at least a minimum amount according to the risk factors involved in the job into the fund, that is, a sum of 17.42% of each worker's wage. Basic health care, medical facilities, accident care, as well as care for illnesses are all taken care of under the social security fund. In addition, the employer is expected to pay about 5% of a fixed payroll tax into a fund that will help the employee find a home of his own easily. This fund is known as the 'National Fund for Employee Housing' or INFONAVIT. "The goal of this federal program is to provide benefits allowing employees to more easily acquire a home"
2% or 25 times the minimum wage, of a worker's salary must also be paid into the SA or the etirement Savings System under…… [Read More]
How ad Are Compliance Costs?
The costs of Sarbanes-Oxley compliance have had huge impacts on organizations and continue to have huge impacts on the finances of organizations. In 2004, companies estimated spending $5.5 billion for SOX compliance costs, $1 million of that figure was for Information Technology, and was expecting to spend greater amounts in 2005 (Swartz, 2004). UK businesses spent $1 million for every $1 billion of revenue (Swartz, SOX compliance costs U.K. firms, 2006). Companies that only applied quick fixes are expected to spend greater amounts in the future. According to (Freeman, 2009), Section 404 is still costing more than $2.3 million a year in direct compliance costs.
Internal audit departments may have to be enlarged, or formed to meet compliance (Linda, 2006). Consultants may need to be engaged to analyze and design control systems to ensure that internal controls are proper for compliance. Organizations may…… [Read More]