Deutsche Brauerei Essay

The agenda attached (EXHIIBT 1) became the focus of Ms. Greta Schweitzer’s concentration for the next 24 hours. She relied on her team from her EMBA class in Frankfurt to assist her with the recommendations she would need to address this board tomorrow morning. Upon initial analysis, it became obvious that DB was in trouble with respect to the Ukraine market, much less the proposed capital expansion. Several items alarmed the team when we read the statements from both Lukas Schweitzer and Oleg Pinchuk. The sales and marketing manager has an obviously different approach than that which made DB successful in the past. Oleg Pinchuk has extended credit to its â€Å"distributors† which is causing a rise in sales and accordingly an increase in his salary (as it is based on sales). This needs to be corrected; given such a volatile environment and this firm’s recent history, a person in his position should earn a salary based on accounts receivable collections, rather than sales. Perhaps then, his discretion would be more restrictive with respect to extension of credit. Furthermore, if the distributors are in fact expanding and enhancing their stores by purchasing new equipment and restocking inventories, then obviously they have the cash to pay DB for their outstanding invoices. This raises considerable questions regarding the prudence of â€Å"trade-credit extensions† and compensation packages offered Mr. Pinchuk, and accordingly, we recommend his termination. A new salary structure and job description delineating required results can be negotiated with Mr. Pinchuk’s replacement. When considering adopting the budget for 2001, we must consider the proposed expansion and investments in new plant and equipment (warehouse and distribution center). With the overuse of short term debt and a borrowing rate over 2% higher than the government rate, it will be impossible to finance this capital expansion. We cannot recommend approval of the budget in its current form. There is not enough cash being collected, too much inventory carried on behalf of the distributors, too much risky short term debt and too many capital improvements budgeted to justify this expansion. Without actually collecting cash from the receivables, we do not recommend declaring any additional dividends, as indicated in the budget. Historically, declared and paid dividends were right at or below $2,000 (in thousands of Euros) and the proposed budget increases those to well over $3,200. We recommend restricting dividends declared to what was done in the past, without any increase. Once collections are received and with the change in marketing, credit policies, and inventory control, the company would be in a better financial position to pay additional dividends. As a matter of final note, we strongly urge the Board of Directors of DB to consider the short term effects of expanding into a new market economy. The Ukraine is just transitioning into becoming a market economy (experiencing supply and demand that guides the allocation of resources). Such a transition is politically and socially difficult for businesses because of rising inflation, unemployment, and economic uncertainty. We have serious questions about the vitality of DB and whether it can survive until the long term benefits of this transition are realized.

The individual, social, economic, legal or political factors

The war in Bosnia and the mines planted in some parts of Bosnia might also have impact on Ado current circumstances. In Bosnia during the war some mines were planted by people when they were running away from the war. This makes people to go only in areas where the mines have been cleared and to keep away from area the areas where the mines are still planted. (wikitravel 2008) This factor might be influencing Ado to move because of the danger associated with The landmines planted in some parts and the war in Bosnia.†¢ The wages given to Ado might also hinder his current circumstances. The wages might be too small to sustain his needs and the needs of his family, so by moving to Brisbane hotel in Australia he might get a better pay than what he is getting now. †¢ Ado might be interested in fulfilling his dream of working for the Brisbane Hotels given that they are one of the biggest five star hotels in the world, so that dream might be a driving force for him to move to Bris bane hotels.†¢ The â€Å"political temperature† in Australia (where Brisbane hotel are located) might be conducive compared to the one of Bosnia, this might also drive Ado to move away from Bosnia, because where the â€Å"political temperature† is cool business do thrive, hence the income of Ado is likely to increase because Brisbane hotel is located where the â€Å"political temperature† is cool, there is that strong belief that they are paying well compared to where Ado was previously working at in Bosnia.†¢ With war come insecurity, Ado might also be affected by the insecurity situation in Bosnia; this might make him to want to move away from Bosnia so that he can go to Brisbane hotels in Australia where the security is serene. †¢ Religion may also be a factor given that in Bosnia population Orthodox are 31%, Roman Catholic 15%, Protestant 4%, Muslim 44% while others are 6%, while in Australia over 70% are Christians, maybe Ado is a Christian a nd he doesn’t enjoying putting up in an area dominated by Muslims. 2.Strategies to use to help save Ado †¢ Ado will be helped in shipping his goods and other household items from Bosnia to Australia. †¢ I will enroll Ado for a cultural orientation program; this will benefit him because it will help him to make adjustment to the Australian culture. This will include habits of eating, eating joint, food eaten, understanding the local currency, his interaction with the other employees, among others. This will make Ado to familiarize himself with the culture and custom for the success of the Brisbane hotel.(Jossy. 1998) †¢ I will help him get a good school for his children. †¢ Ado, his family and his entire house hold will be insured just like other employees of Brisbane hotel, labor laws for foreigners working in Australia will have to be adhered with. †¢ Ado together with his family will be entitled to a return ticket to Bosnia once every year. †¢ I will take him through an orientation within the Brisbane hotel until he is familiar with the hotel operations †¢ I will show Ado some joints where Bosnians do meet.This will make him to be meeting his fellow Bosnians so as to make him not to fill home sick. †¢ I will take Ado for further induction training in management of hotels in Australia given that the way hotels in Bosnia operate might be slightly different from the way they operate Brisbane hotel in Australia. †¢ I will take Ado around the area so that he gets familiarizes him with the places around the hotel, this will make him not to get lost and probably he will fill at home while working for Brisbane hotel in Australia, which is far away from home.†¢ Ado will be entitled to a one month paid leave. †¢ I will also encourage him to enroll in English language classes so that he can know how to speak in English. 3. Productivity will be increased in the following ways: †¢ Given that Ado now knows English he will be communicating efficiently with the other staff, because he will be able to lead his junior efficiently. †¢ Productivity will also be increased because Ado will come with some new idea from restaurants in Bosnia which might not be in Brisbane in Australia.†¢ Productivity will be enhanced because the entire staff will be effective because of lack of communication barrier or cultural ignorance between Ado and the other people working for Brisbane Hotel. †¢ Productivity will also increase because Ado would have known Brisbane hotels environment well so he wont waste time looking up for places. †¢ Productivity will also increase because Ado will not be Home sick as such, because he will be meeting his fellow Bosnians in those places where I would have shown him. Lack of home sickness will make him concentrate fully at work.This will increase his productivity at Brisbane hotel. †¢ Ado will have familiarized himself with the culture and customs of the communities in which the hotel is situated this will make him fill part and parcel of the community, hence psychologically he will have settled. This will make him work efficiently hence increasing the production. †¢ Given that Ado will be given a month paid leave, it will give him the morale to work efficiently this will result in increase in productivity of Braisen Hotel in Australia.†¢ Given that Ado his insured he will have courage to work in odd places in order to keep the production going on efficiently. Reference Balderngen, l. (2002) new complete Executive manners. Gianneto, D. (2002) The Performance grid, Netscape press Himmelweit, S, . Simonetti, R. Trigg, A. , Microeconomics (2001) Cengage learning EMEA Window. C, employee in a new working environment, the journal of philosophy of Employees volume 12 page 21

External and Internal Environmental Analysis Essay

External and Internal Environmental Analysis - Essay Example Discussed below is the internal and external environmental analysis of Bayou Inn; a hotel in the lodging industry (Nadine & Pahl, 2009). Recommended Vision Statement Success in the hospitality industry can only be achieved if a company models its vision statement to target the customers it intends to provide services (Briggs, 1999). The vision statement must be brief, clear and concise. It must indicate the general direction the hotel aims to head, while capturing the dream of the founders of the company. Therefore, the recommended vision statement must highlight the high regard in which customers are held by the employees, management and shareholders of the hotel (Briggs, 1999). In the case of Bayou Inn, the vision statement can highlight how the business intends to look in a specified duration of time. In such a scenario, the capturing of Bayou Inn’s aspirations occurs. An analysis of vision statements of the biggest hotels in the hospitality industry indicates that these st atements capture the aspirations of their founder; for example, Conrad Hilton’s vision statement for the Hilton chain of luxurious hotels, â€Å"To achieve extraordinary things, you must first dream magnificent dreams† (Briggs, 1999). ... Drucker also emphasizes that the customers rely on the mission statement to figure out the services it provides (Briggs, 1999). Rarely do people look at the statutes, articles or names of an organization to determine the role it plays. Therefore, it is crucial to capture the main goals of the organization in the mission statement. The format of Bayou Inn’s mission statement ought to follow the guidelines used in the determination of objectives (Briggs, 1999). Meaning, the goals stated in the mission statement must be S.M.A.R.T ones. The acronym represents measurable, attainable, specific, realistic and time-bound goals. As a result, Bayou Inn can formulate strategies which will prove viable after the time allocated for their implementation (Briggs, 1999). SWOT Analysis A SWOT analysis helps an organization in the identification of the strengths, opportunities, weaknesses and threats (Nadine & Pahl, 2009). As a result, they are able to strategize with the information gathered i n mind. Capitalizing on the opportunities detected, eliminating the weaknesses found, relying on the strengths noted, and avoiding the threats becomes easier for a company (Nadine & Pahl, 2009). The procedure followed when conducting a SWOT analysis involves the analyzing of both the micro and macro environments of a business. The micro environment entails the functions found within an organization whereas the macro environment covers the aspects outside of the organization. The macro environment is further split into the broad and narrow categories (Nadine & Pahl, 2009). Information gathered from a SWOT analysis of the microenvironment reveals the employees’ outlook on the firm’s

Investment and Financial Planning Essay Example | Topics and Well Written Essays - 1000 words

Investment and Financial Planning - Essay Example Probably the most important data to a growth investor is the company's earnings per share. Earnings are bottom-line profits the company earns, after all expenses and taxes. When earnings are divided by the number of shares, you get earnings per share. Microsoft stocks was first sold to the public in 1985, and in that year it had just a penny of earnings per share. But by 1989, earnings had increased four times, to four cents a share. From then on, Microsoft earnings went on a steady climb, reaching $1.71 per share in 2000. What happened then A recession combined with a technology sector collapse caused the era of straight-up growth to end. Is Microsoft still considered a growth stock Yes, by most it is. The stock market still values Microsoft based on an expectation that growth will resume, although not at the pace of the company's early years. Most growth companies pay little or no dividends. Until recently, Microsoft paid none. So, earnings measure the money the company can reinvest back into its own growth. Earnings per share are reported quarterly, and they are the best measure of success for growth investors. A steady pattern of quarter-to-quarter earnings growth should create strong upward movement in share prices over time. But the opposite is also true. When a growth company slows its earnings growth rate, the share price can take a big tumble because investors lose faith in future growth. Growth stocks tend to be more volatile than the market as a whole, because they are in high demand when earnings keep growing and can fall out of favor when earnings falter. The sectors that are most widely followed by growth investors include technology, pharmaceutical and retailing. Value Investing Value investing is the other side of the stock market coin. Value investors believe almost the opposite of growth investors. Instead of looking for growing companies that are the stock market's darlings, they look for out-of-favor companies selling at attractive values. These values are most often defined by below average price/earnings ratio and below average price/book ratio. The slide shows both types of data for Eastman Kodak, a company that is widely known and followed. But for various reasons, Eastman Kodak has fallen out of favor with investors. Why do you think that might be so (VOLUNTEERS) Price/earnings ratio is calculated by dividing the current

Chess game Coursework Example | Topics and Well Written Essays - 250 words

Chess game - Coursework Example This is very true. Palm has even managed to convince the readers further by the use of the findings from an experiment that proved positive. In my opinion, the author is right because my performance in classroom has also been improving considerably because I regularly play chess. Christine Palm’s assertion that playing chess game improves the concentration of the students thereby making them score very high marks is very logical and right. For instance, the author asserts â€Å"Similarly, a 5‑year study of 7th and 8th graders by Robert Ferguson of the Bradford, PA School District showed that test scores improved 173% for students regularly engaged in chess classes, compared with only 4.56% for children participating in other forms of "enrichment activities† (Palm, 1990). According to my opinion, this is a clear proof that playing chess improves the academic performance of students. In my opinion, Christine Palm has managed to maintain the logic behind this issue. This is true since I have also experienced lots of improvements in my academics because I have been repeatedly playing chess game. Playing chess has improved my socialization aspects. In addition, I have realized improvements in my academics. For instance, playing Chess has made me improve in subjects like mathematics. Moreover, I have also learnt how to reason logically and critically trough playing Chess. Playing chess has also made me develop good problem solving skills. I have also developed good analytical skills through playing Chess. As such, it seems to me that Chess game improves academic performance in the students as I have experienced

How best to improve competition in the banking market Essay - 1

How best to improve competition in the banking market - Essay Example In most cases, application of the efficient structure hypothesis is projected in two primary ways depending on the nature of efficiency considered. When considering the X-efficiency form, the more efficient organizations have relatively lower costs, which results to higher profits and a larger share market. According to WISE, BLINDER & GORDON, (2001), this is true because of presence of superior ability in diminishing production costs. On the other hand, Scale Efficiency form serves the same purpose as the X-efficiency, since it works towards achieving production to the minimum average-cost point. Relationship between quiet Life Hypothesis and efficiency structure If quiet life hypothesis holds, then it implies that, the positive profit structure association is partially offset by cost increase from poorer cost efficiency, which explains why the profit-structure association is weak in numerous banks. A unified approach based on the both quiet life hypothesis, structure hypothesis can be used to define the degree to which competition, and stability in the banking sector is influenced (WISE, BLINDER & GORDON, 2001). ... Relationship between quiet Life Hypothesis and efficiency structure If quiet life hypothesis holds, then it implies that, the positive profit structure association is partially offset by cost increase from poorer cost efficiency, which explains why the profit-structure association is weak in numerous banks. A unified approach based on the both quiet life hypothesis, structure hypothesis can be used to define the degree to which competition, and stability in the banking sector is influenced (WISE, BLINDER & GORDON, 2001). Structure Conduct Performance The SCP studies of banking universally can be subdivided into two primary groups according to the measure of performance (JOHNSON, 2003). The groups include the use of measure of pieces of some banking products and service in order to capture the firm’s performance. The second involves the application of profitability measure such as return on assets or equity. Nonetheless, using the piece of a single product may be misleading sue to the multi-product nature of a bank’s output. On the other hand, profit measure may be more informative, however may exhibit difficulty in comprehending and interpreting due to the complexity of the accounting procedures. Relationship between QLH, ESH and SCP The relationship between market structure and performance treated within the framework of structure-Conduct –Performance (SCP) explains well, the competitive status of a banking system. The SCP closes relates with that efficiency Hypothesis (JOHNSON, 2003). When Efficiency Hypothesis is applied in a banking sector, the hypothesis defines that a bank, which operates more efficiently than its competitors achieve higher gains that results from low operational costs.

Globalization Essay Example | Topics and Well Written Essays - 2500 words - 2

Globalization - Essay Example Globalization we can is inevitable in this day and age. Now that it has taken place there is no turning back and no country that has been touched by globalization can reverse the process and survive and prosper. This is because today economies are more complex and complicated than ever and technology has shrunk the world to such an extent that all countries and economies are interdependent and cannot survive individually (Kustin, 1993, pp. 4-8). Long Term Befits of Globalization The benefits of globalization are many and while there are many short term benefits of globalization likewise we can also name many long term benefits of it. Some of the short term benefits of globalization have been the lower cost of goods and services that have been achieved by the use of comparative advantage and also economies of scale. For instance having goods produced in China has lowered the prices of many goods that are currently sold in the United States. Big retailers like Wal-Mart contract manufacturers in China to produce for them due to the cheap labor that is available that will give them a price advantage, which they will not be able to gain if the goods were produced elsewhere - where labor was more expensive. Likewise globalization has helped increase service levels like has been done in the health care industry in North America. The issues related to the acute dearth of radiologists in North America has been addressed by radiologists in India, based in India being hired to fill the vacancies, however unlike in the past they are not physically present North America but carry out their duties virtually with the help of modern day... The essay looks at the external forces that have to be encountered by organizations that are preparing to go global or are already global. In the next section the essay then investigates why some organizations choose to stay local or regional while others decide to go global and how the local and regionally focused organizations survive in this day and age. The impact of the internet and other technological innovations on globalization are closely evaluated in the next section. The article then goes further and looks at the broad gains and losses that have been made from globalization in the last decade or so. Next the paper goes on to look at the main reasons behind international expansion being key to the growth and survival needs of today’s multi-national companies. Last but not least the author gives his personal opinion on globalization and concludes by summarizing the main points covered in this essay. This paper makes a conclusion that globalization today is inevitable and no country nor economy that has been touched by globalization can turn back the clock and survive without globalization because all economies and countries are interdependent on each other for their survival and globalization is the thread that keeps them all connected. There have been many short and long term benefits of globalization such as lower priced goods being manufactured and individuals having access to products and services that they never had before. Likewise though, there have been many long and short term drawbacks due to globalization.