Planning and Controlling Capital Expenditures Essay

Planning and Controlling Capital Expenditures - Essay Example Thus most companies hold on capital expenditures every year, in an attempt to continuously upgrade and improve things like facilities, vehicles, buildings and equipment. A capital expenditure is considered deductible since it represents an improvement to the business and this deducted takes place over a specific life of an item, after than all at once as in the case of repair or maintenance expenditures. Sometimes it is cumbersome to determine the difference that exists in capital expenditure and a routine expense. Generally capital expenditure improves the worth of an asset while if it keeps the asset in working condition, it is referred to as routine expense. Hence, engaging in capital expenditure is a routine way of upgrading and expanding business whether done on a small scale or on a large scale (Pike and Neale, 2003). Large firms or corporations may acquire extra companies, as in the case of automotive giant which purchases another car manufacturer. Consequently, allowances are made in the budget of the company for the capital expenses, including the ones involving the replacement of items which are no longer repaired. Capital expenditures thus normally yield benefit over a long period of time resulting into fixed assets. The resource constraint is a frequent phenomenon of all the economic activities in business. In addition, when a firm is able to spend on specific items it is not willing to do so (Nice, 2002). Therefore, a systematic screening is established to accept or reject the investment proposal. Investment proposal are divided into two groups that is: Mutually exclusive proposals and independent proposals. Mutually exclusive proposals are proposals that have an alternative of doing the same thing. If one alternative is selected then the other one must be rejected for example: if in plant material facilities are required, they are grouped according to their economic benefits. The economic benefits of each of the proposal will be evaluated and the one with the contributing maximum economic benefits is chosen while the rest with less economic benefits are rejected (Pike and Neale, 2003). Ind ependent proposals are those items of capital expenditures that are always considered for different types of projects whose accomplishments are highly needed. In this case all independent proposals are independent of each other and are worthy for implementation. However, due to financial difficulties, priorities are assigned to each proposal according to the gravity of the need of the organization for example: in line with the material handling equipments, instruments such as machines for weighing, packing, stamping may be required(Cotts, 2007). Thus for mutually exclusive proposals the decision criterion is accept or reject while for independent proposals the decision criterion is mainly based in ranking. The decision taken is based on the methods of analyzing the capital budgeting decisions. The environment of capital expenditure proposals are widely grouped into: Expansion, Replacement, Diversification and Strategic proposals. Expansion proposals involve the capital expenditure t o boost the production capacity within the same line of production (Shah, 2007).The investments are basically made in the familiar areas of activity as it involves minimal business risk as compared to diversification, however, larger risk than replacement expenditure. Replacement capital expenditure implies replacement of old machinery by a new one or a modern one. This replacement only

The Impact of Markets and the Division of Labour on Social Cohesion Essay

The Impact of Markets and the Division of Labour on Social Cohesion - Essay Example This paper seeks to find out if markets and the division of labour encourage or discourage social cohesion. Impacts A market can be described as a destination for goods or services intended for sale. This market is composed of customers who are people that are willing and able to purchase the goods or services that are being sold. Social cohesion refers to the ability of people to articulate or embrace each other and co-exist peacefully (Council of Europe 67). It also refers to the ability of various groups of people to hold firmly together consistently. Scholars have revealed that markets and division of labour have had a substantial impact on social cohesion in the current society. Division of labour has led to the separation of markets and employment through the differentiation and separation of production processes (Furze, Savy, Brym & Lie 55). Instead of producing similar goods and services, the various labourers in the market are sub-divided and allowed to deal with the various specialties of the production processes so as to meet the various market demands. An example of this is a shift from mixed farming to either crop or animal production as separate production lines or dividing the entire work of an organization into different work units, each dealing with a specific task. This shift in the production processes seemingly separates people from coming together and engaging in the production process as a larger group. In a manufacturing industry for example, the work units will be organized around the skill requirements for the various steps of production and marketing like product production, packaging, IT management, sales and marketing, customer relations among others. This gives the impression that division of labour discourages social cohesion. However, a closer look on the mechanisms of division of labour reveals it encourages social cohesion both local and globally through the development of the need to exchange and which in turn brings people tog ether (Council of Europe 117). This is to say that division of labour encourages the need for trade. One country could choose to specialize in producing and supplying a given product basing on their natural and capital, for example oil and gas. On the same note, another country will produce tyres and apparel. Such a situation definitely generates some form of dependency in which case the two countries need each other. The one producing oil and gas needs tyres and apparel and the one producing apparel and tyres needs oil and gas. This gives a picture of the processes of imports and exports that is seen in today’s society. In other words, division of labour defines the lines of production and this means that no person will produce all that they need in life. This creates some deficiencies of the products that a person does not produce and thus the need to obtain it from others. After an examination of division of labour, Smith (25) concluded that unlike the savage or the ancien t man, the modern man/woman is highly dependent on the labour of others to satisfy his/her full range of wants. This structure of satisfying human wants has resulted to the need to focus attention to the importance of exchange and therefore the need for increased human interactions both locally and globally. Through international exchanges like imports and exports, people across the globe have been able to come together, interact and co-exist

Managing Financial Resources and Decisions Essay - 5

Managing Financial Resources and Decisions - Essay Example Sun and Sand Sports is the most appreciated and most preferred brand in the entire world and known for its unbeatable strategy it uses to capture the market and has launched many products in the entire world. Sun and Sand Sports stands in top 10 sports products manufacturers (sand, n.d.). Its products are diversified and have given a new passion and love to the sportsmen for their favorite sports. It has achieved many milestones from its corporate and has become the most favorite brand in the field of each sport. No other brand has such a wonderful success and more distinguished history from its incorporation as the Sun and Sand Sports had and no other brand is that stronger connection with sport than the Sun and Sand Sports. The main purpose of Sun and Sand Sports is quite simple and interesting: is to make athletes better.  Sun and Sand Sports have targeted all the sports lovers as its customers and all the customers of sub-brand are, with no doubt, are those who are athletics, sports person, sports lover and the one who is directly or indirectly associated with the sports (sand, n.d.). The capital market is a representation of agreement of an organization. Sun and Sand Sports have various kinds of stocks in the capital market and capital exchange. And it receives more of its finance from the share capital and it also has some Common stocks, equity stocks, options, rights, convertibles, bonds, futures, and others are awash in banal markets. As a share of approved well-groomed activities in Investment class (Andreff & Szymanski, 2006). Sun and Sand Sports have shown in its balance sheet about its main External Financing that is Share Capital. Share capital is that amount which a company raise by selling its shares in the capital market and get more shareholders. An increasing number of shareholders means the increased capital of the company. By having a share capital as a major and main source of finance, Sun and

LVMH’s company Essay Example for Free

LVMH’s company Essay Strengths LVMH has a strong brand positioning meaning that the company strongly placed itself as a leader in the luxury sector. The company offers more than 60 brands of high value perception and identity to their customers. Due to high customer loyalty, image of their brands and value perception those brands are less affected by economic cycles. Most evidently, LVMH expressed resilience against the economic conditions specifically in 2009 and 2008. This is an indicator that the strength of their brands enables their revenues to sustain growth even through touch economic situations. This is due to their huge customer base across the globe accompanied by their loyalty; thus, making their penetration to new markets with quick. The associations of LVMH with celebrities and major events have enabled them to enhance their luxury positioning. For example, Charlize Theron represents the J’adore perfume by Dior, while Moet Chandon positioned their communications platform to events like the Oscars and the Golden Globe. Those marketing strategies were aimed in order to increase their brand visibility and recall. Moreover, their customers are targeted successfully through enhancing their brands images. All in all, those associations would eventually augment the luxury and its value that LVMH aims at building. Weaknesses A shortcoming in LVMH’s company is their limited presence in the retail division. This means that the company is highly dependant on sales to retailers. This in turn has caused the company’s luxury goods vulnerable to destocking by their retailers in order to avoid losses. Most evidently, the wines, jewelry, and watches departments were highly affected negatively by the retailers destocking. Therefore, this has made LVMH’s revenues in danger of destocking made by retailers. There is also a weakness evident in the conflict of interest within the company, where LVMH would be categorized into two major segments: fashion vs. liquor markets. However, the company’s broad acquisition of the art  auction market Pury Luxemborg has been questioned due to some criticism that it adds more burden to LVMH. This is yet another criteria to the conflict of interest believed to be internally dealt within the company. Opportunities The luxury market is believed to be a growing market in the emerging economies. The growing high net worth individuals (HNWI) in a lot of countries across the globe is an indicator that the sales of luxury products are estimated to increase. In effect, LVMH has been focusing in increasing their investment in emerging countries, such as the Middle East, in their hopes that higher growth rates will be evident. Moreover, LVMH was able to assess the trends in those markets specifically in Asia’s market in order to succesfully penetrate them. Hence, the growth of the HNWI’s wealth accompanied by the structure of investments to reach to a broader customer base would intensify and diversify LVMH’s revenue flow. LVMH owes a great deal of their market share to their products on women’s accessories. This would include their brands in handbags, jewelry, and watches amongst many others. Although the fashion accessories has seen a downfall during 2009; nevertheless, it is hinting that it is uprising to a recovery into growth since 2010. Most notably, women handbags were the most notable in the accessories market growth inversely reacting to the market’s decrease during the same time. Those leather goods have been a great indicator in both the men and women’s categories in the market share that there is a high growth of sales and revenue. Even if key markets have been experiencing low growth due to the economic collapse and recovery, the accessories market proves as an opportunity to LVMH for growth. Selective retailing provides an opportunity to LVMH in one of the most growing markets in the world: China. Even though selective retailing has seen a decline in growth due to restrictions in spending due to less amount of travelers; however, China tourism is predicted to show a robust expansion. The economic liberalization; as well as, the constant development and transformation in China boosted their tourism industry. Some indicators  have been predicting that China would be a leading tourism destination by 2020. Therefore, LVMH has been focused on launching its selective retailing in China in order to take an advantageous stance from this growing tourism in terms of revenue.

Humorous Wedding Speech Delivered by the Father of the Bride

Humorous Wedding Speech Delivered by the Father of the Bride I want to thank all of you for coming and helping Rick and Melissa celebrate this important day in their lives! I've tried to memorize this speech, which isn't easy when you have the memory retention of a geriatric goldfish, so please forgive me if I resort to my notes - probably every five seconds. I did ask for an autocue to be set up in front of me, but apparently the wedding budget doesn't stretch that far... And neither does my eyesight The most important people here for Rick, are Ellen and Terry. It has been really good to meet them and become family-in-laws and friends. What we find gratifying, is that Rick's parents feel the same about Melissa. They have taken her to their hearts, and I believe that she is ...

To Be of Use

According to Confucius, â€Å"You should treat others the way you want to be treated. † Resembling Confucius’ golden rule, Harold Kushner’s â€Å"Shalom: The Quest for Integrity† talks about a man who did something good, when people didn’t think he would. While Marge Piercy isn’t writing about treating others a certain way, she is instead writing about being of good use. Harold Kushner’s text parallels Marge Piercy’s poem in the topic of being of good use. Due to the length of the poem, she talks about people being of use. Harold Kushner’s text talks about people who were useful.On Monday night December 11, 1995, the fire at the textile mill changed a city. Many people of Lawrence, Massachusetts, were worried about the economic impact from losing the textile mill due to the fire. However, the owner Aaron Feuerstein surprised everyone. People expected he would take advantage of the fire to move to a more profitable locatio n. Feuerstein announced that not only was he going to rebuild the factory, but also workers would receive three months of payroll, even though there was no work. â€Å"Feuerstein is a special person, a man of integrity†, are there few people with integrity?Maybe is the reason Blanchard co-author the book called The Power of Ethical Management, â€Å"there’s no right way to do a wrong thing,† using the book as a plea to the business world. Directed to the people who do things to benefit themselves, but hurt others. Confucius states: treat others the way you want to be treated; ask yourself if you do harm to others, would you like it if someone did harm to you in the same way? No because many of us wouldn’t; many don’t think about the consequences, or if it happened to themselves, before they do something. People commit wrong doing, to benefit themselves.When I hear politicians and preachers condemning the sinful ways of society around them, I often agree with their criticisms, but I don’t hear the pain in their voices. † As stated in the text by Kushner, many people lead with falsehood, tricking others to believing that they are useful people of integrity, when in the end they really are not. Marge Piercy’s poem gives her opinion of people who are useful. In the first verse, she has a high regard for people who throw enthusiasm into the work they do. She compares the people who throw enthusiasm into their work, to water buffalo.That people who enjoy their work, with patience, will in the end receive good rewards. Rewards of satisfaction, the results of their hard work, are what they receive in return for tireless hard work. To Piercy, work is as common as mud; work like mud smears the hand. â€Å"But the thing worth doing well done, has a shape that satisfies, clean and evident,† says Piercy in her poem. Piercy’s poem is more of a collection of opinions, the things that make a person useful. W hat she thinks useful people are like. Piercy has high regard for people who give care into their work.In past experience, and previous knowledge, people who work hard are reward, they move up in life. However people who don’t have integrity, who do harm eventually fail from life. Many people, who are successful, love their work; they enjoy what they are doing with enthusiasm. Treating other with respect should gain you respect. Kushner discusses more about people who had integrity, who gave back, when no one expected them to. People who made themselves useful People who try to encourage people to be ethically positive. To change their tactics to help people not harm people. The benefits, and why people did the things they did.Then also the people who are false or true prophets. The people who speak true, but don’t adhere to what they preach. Piercy, on the other had in contrast, expresses her opinion, on the factor of people being of use, having high regard for people who love working, being useful and enjoy their work. That their hard work would reward them. Piercy’s poem contrast’s Kushner’s text, in terms of the directions they go. Kushner is indirectly talking about being of use but on the topic of people with integrity, and ethical standards. Piercy directly relates to the topic of to be use. The opinion of what she thinks people who are useful.

Organisational Behaviour What Is Organisational Behaviour?

ORGANISATIONAL BEHAVIOUR What is organisational behaviour? The study of human behaviour, attitudes and performance within an organisational setting; drawing on theory, methods and principles from such disciplines as psychology, sociology and cultural anthropology to learn about individual, groups and processes. Three different OB perspectives Macro-perspective; the big picture Micro-perspective; the smaller units Meso-perspective; integration and movement between macro and micros Three levels of OB Individuals > groups > organisationsOB as a science Scientific discipline Theories and methods can be developed to better understand and explain behaviour Concerned with predictions and explanations Fredrick Windsor taylor – four principles of scientific management 1. Using scientific analysis, managers precisely specify every element of an employee’s work which replaces old rule-of-thumb methods (Job Design) 2. Managers select and then train, teach and develop employees, unl ike in the past when employees chose their own work and trained themselves (human Resource Management) 3.Managers are responsible for ensuring that all work is done according to their specification (Performance, Monitoring and rewards) 4. There is a division of labour based on expertise; managers manage because of their superior knowledge while employees do what they are best at (the development of management profession) Human relations school Elton mayo Believed that the â€Å"work problem† (dissent, disobedience, industrial unrest) was a result of psychological disturbances brought about by the alienating nature of work. Mayo thought that we can improve employee happiness bby making work more involving and by recognising its social nature.The hawthorn study Originally looked at the impact of working environment on productivity e. g. amount of light workers were exposed to during work By spending so much time around the workers, researchers began to notice a number of import ant social factors that had an impact on productivity Despite the isolating effects of standardisation and increasing technical division of labour, work remains a group activity. As a result of their need for recognition, security and sense of belonging, workers will gravitate towards informal groups whether formal work organisation reflects this or not.Informal group exercises a strong form of social control over the work habit and attitude of its members. Managers should recognise the impact of these informal groups in exerting an influence on productivity. Organisations should seek to ensure a good fit between formal and informal groups. Weber’s formal bureaucracy is characterised by: Specialised individual positions Formal hierarchy Rules and standard operating procedures Set boundaries for each dept Standardised training and career paths Changes from traditional to modern Intensifying competition meant that companies needed to become: More innovative in terms of customer serviceImplement continuous improvement in manufacturing More diverse in terms of products and services they offer New organisation model Networked; emphasis on teams, systems for sharing information, cross functional involvements Flat; reducing layers and empowering more employees Flexible; intensified completion, accounting for life cycles, unpredictability of external environment Divers; career trajectories, core and peripheral workforces Global; interactions across boarders Employment relationship Employment relationship is the set of arrangements and work practices that describe and govern the relationships between employees and employers.The relationship consists of economic, social and psychological contracts. The psychological contract refers to a shared cultural understanding of what is right, good and fair about the ongoing exchange. Key employment relationship changes Short term job security; life time employment to life time employability and being able to move from int ernal labour markets Advancement; changing notions of advancement Job titles; changing and multi-dimensional Compensation; pay for knowledge or skills, team-based pay Flexibility; telecommunicating work hours, contract and new forms of bargaining Chapter summary 1Define organisational behaviour and organisations, and discuss the importance of this field of inquiry Organisational behaviour is the study of what people think, feel and do in and around organisations. Organisations are groups of people who work interdependently towards some purpose. OB theories help people to: 1. Make sense of the workplace 2. Question and rebuild personal mental models 3. Get things done In organisations Compare and contrast the four perspectives of organisational effectiveness The open systems perspective views organisations as complex organisms that ‘live’ within an external environment.They depend on the external environment for resources then use organisational subsystems to transform t hose resources into outputs that are returned to the environment. Organisations receive feedback from external environment to maintain a good ‘fit’ with that environment. Fit occurs by adapting to the environment, managing the environment or moving to another environment. According to the organisational learning perspective, organisational effectiveness depends on the organisations capacity to acquire, share, use and store valuable knowledge. The ability to acquire and use knowledge depends on the firm’s absorptive capacity.Intellectual capacity consists of human capital, structural capital and relationship capital. Knowledge is retained in the organisational memory; companies also selectively unlearn. The high performance work practices (HPWP) perspective identifies a bundle of systems and structures to leverage workforce potential. The most widely identified HPWPs are employee involvement, job autonomy, developing employee competencies and performance/skill-bas ed rewards. HPWPs improve organisational effectiveness by building human capital, increasing adaptability and strengthen employee motivation and attitudes.The stakeholder perspectives state that leaders manage the interest of diverse stakeholders by replying on their personal and organisational values for guidance. Ethics and corporate responsibility are natural variations of values-based organisation because they rely on values to guide the most appropriate decisions involving stakeholders. Corporate social responsibility consists of organisational activities intended to benefit society and the environment beyond the company’s immediate financial interest or legal obligation.Debate the organisation opportunities and challenges of globalisation, workforce diversity and emerging employment relationships Globalisation, which refers to various forms of connectivity with people in other parts of the world has several economic and social benefits but it may also be responsible for work intensification, as well as reduced job security and work – life balance. Workforce diversity is apparent at both the surface level and deep level; there is some evidence of deep level diversity across generational cohorts. Diversity may give a competitive advantage by improving decision making and team performance on conflict.One emerging employment relationship trend is the call for more work-life balance. Another employment trend is virtual work, particular working from home. Working from home potentially increases employee productivity and reduces employee stress, but it may also lead to social isolation, reduced promotion opportunities and increased tension in family relations. Discuss the anchors on which organisational behaviour knowledge is based The systematic research anchor states that OB knowledge should be based on systematic research, which is consistent with evidence-based management.The multidisciplinary anchor states that the field should develop from k nowledge in other disciplines (psychology sociology, economics) not just from its own isolated research base. The contingency anchor states that OB theories generally need to consider that there will be different consequences in different situations. The multiple levels of analysis anchor states that OB topics may be viewed from the individual, team and organisations levels of analysis.