Introduction. This Report Discusses The Situation Faced

Introduction This report discusses the situation faced by Adam Jacobs of Tower Foods Ltd. regarding the retention of their largest client, Flatrock Limited. Flatrock recently issued a request for proposal (RFP) with the unreasonable requirements of 100% success on performance audits, 100% of the time and complete operational transparency. The aim of this report is to resolve this issue in preparation for Jacobs’s meeting with Albert Wong in two weeks. Analysis The desired culture of Flatrock is bottom-line oriented and to maintain this, bonuses are tied to employees’ ability to produce more while lowering costs. Given the high-cost nature of the mining industry, this desired culture is appropriate. Flatrock’s functional†¦show more content†¦Flatrocks bottom-line oriented culture creates the misperception that Tower’s margins are 30% when they are actually 16%. In accordance with Equity Theory, Flatrock feels under-rewarded and to re-establish equity, requests additional services. However, due to ambiguous wording in the contract, Flatrock believes they are entitled to these services which, following their removal, restores their perceived inequity. Martha Bakes’s misinformation confirms this notion to Clyne and motivates him to increase Tower’s output to a level he perceives to be fair. Increasing transparency into Tower’s finances will resolve the misperception about their profitability and re-establish equity. Clyne’s perceived inequity is also a consequence of his leadership character, more specifically, his overdeveloped sense of drive, courage, and lack of temperance. Clyne is passionate about his job which leads to unwarr anted drive. Combined with his underdeveloped temperance, exhibited by his outburst during the meeting, this results in Clyne’s emotion-based decision making. Clyne’s sense of courage is also overdeveloped as seen in his determination to increase profit sharing. As a result, Clyne lacks judgment which augments his inability to appreciate Tower’s long-term benefits and widens the equity imbalance. Clyne’s leadership is also responsible for the issuance of the RPF for multiple suppliers. By hiring employees who share similar attitudes to his own, Clyne coachesShow MoreRelatedThe Leadership Qualities Of Present Prime Minister Of Australia1595 Words   |  7 PagesContent Page Executive summary 2 Introduction 3 Describe the leader’s background 3 Describe their approach to leadership 4 What are two key challenges they have faced as a leader ? 7 What have you learned about leadership from studying this particular leader 8 References 9 Executive Summary This report analyses the political career of the present Prime Minister of Australia, Malcolm Turnbull. 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Marxism-Leninism in Vietnam Essay - 684 Words

Marxism-Leninism in Vietnam In the region of Vietnam there had been many uprisings. All of these uprisings were for one reason, freedom. The Vietnamese were willing to accept Communism in return for what they had been fighting for over 2000 years: self rule. In 1950 the United States, owing a debt of gratitude towards France, sent several advisors to aid French control in Vietnam. Over the next decade and a half, the United States would send an entire Army and Navy to aid the French in maintaining control in South Vietnam, which had separated from the Communist North Vietnam by treaty in 1954. Communism is when all property and business is owned by the government and the people work for the government. In turn, the people all get†¦show more content†¦France had ruled Vietnam for more than a century and they had hoped to maintain that rule. Communism has long been heralded in capitalist countries as the root of all evil. 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Inventory Systems Comparison free essay sample

Running head: INVENTORY SYSTEMS Inventory Systems Summary Derrick Abrams, Lasonya Jewell-Antoine, Kristin Bachman, Marcia Rhoden-Mccatty University of Phoenix QRB 501 August 1, 2011 Inventory Systems Summary The principal role of inventory management systems is to ensure that stores are adequately stocked. Companies use various methods to track and report inventory. Retail companies are perhaps the best entities to examine when attempting to understand inventory management systems. The type of inventory a company has determines the method they use. Retail companies use the retail inventory method as a base system. Last-in-First-Out (LIFO) and First-in-First-Out (FIFO) are the two systems that appear to be used more frequently. Other systems used are the Just in Time or JIT method and the Average Cost method. The following paragraphs will describe different companies and the type or types of inventory systems they use. Also the advantages and disadvantages of their systems are discussed. Best Buy CO. Inc. Best Buy Co. Inc. is a multinational retailer of consumer electronics, appliances, entertainment software, home office products, and related services. The company operates retail stores, calls centers, and conduct online retail operations. Best Buy Co. Inc. uses the retail inventory method as the basis of its inventory management system. This method requires that a record be kept of the total cost and retail value of goods purchased, the total cost and retail value of the goods available for sale, and the sales for the period. There are different versions of the retail inventory method. Specifically, Best Buy Co. Inc. uses the Last-In-First-Out (LIFO) retail method. This method assumes the last unit that comes into inventory is sold first. An advantage of the LIFO method is the ability to pay lower taxes. Using the LIFO method of inventory means that when you count the cost of goods sold, you use the current price rather than whatever price you paid for the specific inventory in stock according to O’Farrell (2011). Reported profits are lower when using LIFO leading to a reduction in the amount of taxes a company has to pay. Conversely, the LIFO method causes a company to report lower earnings. Depressed earnings can be unfavorable when presenting financial statements to investors and other stakeholders. Presenting financial statements with low earnings to banks, creditors, and suppliers can lower the chances of acquiring credit and funding. Best Buy Co. Inc. improved its inventory management system by revamping its supply chain. The company uses a customer focused process within the inventory method. Store location is considered when stocking products. The executives noticed that sales differ across markets. The products shipped to stores in specific markets are particular for that demographic. They also instituted higher delivery frequency and smaller shipments. Distribution centers are located closer to retail outlets to allow for faster shipping of items. The changes made allow better control of inventory, less waste, and the reduced need for markdowns. These factors alone can lead to drastic loss of revenue if not controlled. Tiffany Company Tiffany Company is a specialty jewelry store that has quality jewelry as well as the exclusivity of their products. The largest asset of the company is the inventory of goods that consists of unfinished and finished products that haven’t been sold. The company uses the average cost method to value its inventory during a certain time period. Tiffany Company use this method for many reasons. This method is convenient to measure the value of a group of like assets without an in-depth appraisal of each individual piece of jewelry. The formula is simple and easy to understand, total costs of all individual assets, divided by the number of units, equals the average cost per unit. This method also takes into consideration that the company sells the inventory simultaneously. There are a few disadvantages to the method such as being at risk of value loss and that inventory may be high at times due to seasonal production such as Valentine’s Day or Christmas. The high demand in products requires the company to sustain a large inventory; however unsold products are costly to a company. An ideal situation is to market and sell products as quick as possible or at least keep a balance of production and the sale of products as close as possible. Target Corporation Target Corporation is a retail organization that specializes in the sales of goods such as clothing, house wares, small electronics, furniture, music, pharmaceuticals, toys, and groceries. The company also makes many of its products available on their online store. Target Corporation uses the retail inventory method (RIM) to account for inventory. Target uses last in-first out (LIFO) method under RIM. â€Å"Under RIM, the valuation of inventory at cost and the resulting gross margins are calculated by applying a cost-to-retail ratio to the retail value inventory. RIM is an averaging method that has been widely used in the retail industry due to its practicality. The use of RIM will result in inventory being valued at the lower of cost or market since permanent markdowns are currently taken as a reduction of the retail value of inventory† (Target Corporation). The disadvantages to using this method include: (1) â€Å"damaged goods may have less value than what the store paid for them†, (2) â€Å"changes in market prices may lower the value of the inventory below cost and some items may be obsolete†. (Target Corporation). The cost method of valuing inventory may mislead the organization into thinking there is more value in the business than what actually exist. COSTCO Wholesale Corporation Costco has a lot of assets in their inventory system that include merchandise, land, buildings, and equipment. During the period of 2007 to 2010 it states that business has certainly improved for this company and in particular this store in Atlanta. They have moved from thousands of dollars in merchandise inventory to millions in 2010. There are advantages and disadvantages to that much inventory. The advantages are that the company and their investors can see growth and stock prices will be on the rise. It also means that sales are up and more people are coming through the doors of the store. Some disadvantages are that they will have to hire more employees to man the store, ay roll goes up, and employee benefits. Due to the risks of theft and burglary, the company will need to improve their security system to protect a larger inventory. All of these changes cost money and therefore although COSTCO has increased their merchandise they will have to make spending adjustments in other areas. Systems Comparison Best Buy Co. Inc. and Target Corporation both use the retail inventory method (RIM). Specifically, both companies utilize the LIFO method of retail inventory management. Best Buy and Target experience similar advantages and disadvantages of using this system. Some advantages are tax breaks when reporting profits and the practicality of the retail inventory method. They also experience some of the same disadvantages of using this type of inventory management system. The valuation of damaged goods may be less than what the company paid for them. Another disadvantage is reporting lower earnings which are not favorable when attempting to secure funding or credit. The cost method of valuing inventory may mislead the organization into thinking there is more value in the business than what actually exist (Target Corporation). Tiffany Company uses the average cost method. This method is quite clear. It takes the weighted average of all products available to sale during the accounting period and then uses the average cost to determine the value of cost of goods sold and ending inventory. The average cost method works well for a company such as Tiffany Company because of the type of products it sells. It enables the company to measure the value of a group of products without an in-depth appraisal of each. Conclusion Inventory management systems ensure that stores are adequately stocked. They enable companies to track and report inventory. It is important for companies to research the advantages and disadvantages of the inventory system to figure out what system will best suit the needs of their business. There are different types of inventory systems such as FIFO, LIFO, and average cost method. The inventory management methods of Best Buy, Tiffany Company, Target, and COSTCO were examined. Systems of inventory management vary from company to company. It is at the company’s discretion to choose which system works best for it and its stakeholders. References O’Farrell, R. (2011). The Pros vs. Cons for the â€Å"Last in, First Out† Inventory Method. The Houston Chronicle. Retrieved from http://smallbusiness. chron. com/pros-vs-cons-last-in- first-out-inventory-method-10648. html U. S. Securities and Exchange Commission. (2010, February 11). Edgar system company search. Retrieved from http://www. sec. gov/edgar/searchedgar/companysearch. html What Are the Disadvantages of Using the Lower of Cost or Market to Value Inventory? www. ehow. com/info_8511215_disadvantages-cost-market-value-inventory. html Retrieved on July 29, 2011 from www. target. com Table 1 Best Buy Co. Inc. Quarterly Inventory Data |Values in Millions |Q4 |Q3 |Q2 |Q1 | |2010 |5. 90 |10. 06 |6. 35 |6. 34 | |2009 |5. 49 |8. 98 |5. 74 |5. 49 | |2008 |4. 75 |8. 21 |6. 11 |5. 1 | |2007 |4. 71 |7. 45 |4. 65 |4. 30 | Table 2 Tiffany Company Quarterly Inventory Data |Values in Millions |Q4 |Q3 |Q2 |Q1 | |2010 |1. 63 |1. 65 |1. 55 |1. 47 | |2009 |1. 43 |1. 4 |1. 54 |1. 55 | |2008 |1. 60 |1. 64 |1. 51 |1. 47 | |2007 |1. 37 |1. 47 |1. 37 |1. 34 | Table 3 Target Corporation Quarterly Inventory Data |Values in Millions |Q4 |Q3 |Q2 |Q1 | |2010 |9. 5 |7. 73 |7. 25 |7. 18 | |2009 |9. 38 |7. 53 |6. 99 |6. 71 | |2008 |9. 05 |7. 31 |6. 84 |6. 78 | |2007 |8. 75 |6. 65 |6. 39 |6. 25 | Table 4 COSTCO Wholesale Corporation Quarterly Inventory Data |  Merchandise |9/2/2007 |8/31/2008 |8/30/2009 |8/31/2010 | |inventory | | | | | | |$4,879,465 |  $5,039,413 |$5,405 |  $5,638 | | | |   |   | | Graphs Figure 1. Best Buy Co. Inc. Inventory Data [pic] Best Buys quarterly inventory data shows an increase in the third quarter for each year reported. The company’s fiscal year causes the third quarter to come about around Thanksgiving and Christmas holidays. Items are in demand for gifts, and sales occur more frequently during this time of year. In addition, the data displays a consistent increase of inventory across quarters for each year reported. This can be attributed to many variables; to include consumer spending habits, introduction of new and better products and decreased prices. Figure 2. Tiffany Company Inventory Data [pic] Tiffany Company’s quarterly inventory data shows a slight increase in the third quarter for each year reported. In addition, the fiscal years of 2008 and 2010 show similar trends in inventory numbers across quarters. Figure 3. Target Corporation Inventory Data [pic] Target Corporation’s quarterly inventory data shows a consistent increase in inventory in the fourth quarter for each fiscal year. This can likely be attributed to the fourth quarter occurring during the holiday season. In addition, inventory has increased overall each year from 2007-2010. Figure 3. COSTCO Wholesale Corporation Inventory Data

“The Psychological And Physical Aspects Of D Essay Example For Students

â€Å"The Psychological And Physical Aspects Of D Essay rug Abuse In Today’S Adolescence†Ã¢â‚¬Å"The psychological and physical aspects of drug abuse in today’s adolescence†Unfortunately the abuse of illegal drugs is not uncommon in today’s adolescent communities. Many teenagers today use illicit drugs as a way to deal with everyday pressures such as school, after school jobs, sports activities, domestic violence and peer pressure. Adolescence has been found to be a period of weakening bonds with parents and strengthening bonds with peers (Flay, 1994). Numerous states have experienced an increase in drug related deaths (http://www.usdoj.gov/dea/stats). More than 1 in 10 of today’s youth aged 12-17 were current users of drugs in 1999 (www.usdoj.gov/dea/stats). The number of young adults’ aged 18 to 25 using illicit drugs in 1999 was at a high of 17.1 percent (www.usdoj.gov/dea/stats). In this paper I will describe some of the most popular drugs in today’s adolescent communities and why t he use of illegal drugs is most common between the ages of 12 through 25. I will also describe what the tell-tale signs are in a person with a drug problem and how you can help. Among high school and college students, the drug marijuana is most frequently used in America today. Marijuana is a tobacco-like substance that varies in its potency, depending on the source and selection of plant materials used (http://www.well.com). Marijuana is usually smoked in the form of loosely rolled cigarettes called â€Å"joints, hollowed out commercial cigars called â€Å"blunts† and in water pipes called â€Å"bongs†. Street names for Marijuana include pot, grass, cannabis, weed, Mary Jane, Acapulco Gold, dope, and reefer. When Marijuana is smoked, THC goes quickly into the blood through the lungs. It then goes to the brain and this is when the â€Å"high† is felt. This can happen within a few minutes and can last up to five hours. There are many reasons why some children an d young teens start smoking marijuana. One of the main reasons is because there may be a close family member or friend that may pressure them to try it. Other times, it is because they think it is cool to use marijuana due to societal pressures; they hear songs about it on the radio and see it on TV and in movies. â€Å"Whether it’s from TV, movies, or music, young people are receiving too many mixed messages about marijuana† says Donna E. Shalala, U.S. Secretary of Health and Human Services (Sora, 1997, page 69). According to one study, marijuana use by teenagers who have prior anti-social problems can quickly lead to dependence of the drug (T.J Crowley, 1998, page 57). Statements such as â€Å"everybody is doing it† or â€Å"it will make you feel good† highly influence middle school and high school students. Usually at the time that the drug is being offered, potential users do not think about the harm this drug can cause in the future. Marijuana is als o very popular in today’s community because adolescents are turned off by the harder drugs and believe that pot is not a gateway drug that may lead to more lethal substances (Sora, 1997, page 71). While marijuana users do not move on to harder drugs, smoking weed does increase a teen’s chances of being exposed, according to the National Institute of Drug abuse in Washington, D.C (Sora, 1997, page 71). So why do teens smoke marijuana? After many case studies and psychological theories â€Å"curiosity† is often the most logical reason. Ecstasy the common name for MethyleneDioxyMethAmphetamine. Ecstasy (E) is a synthetic drug usually sold as small tablets, which come in a variety of colors and sizes. It is also available as a powder and can be snorted or injected. The effects of ecstasy depend on various factors, individually: the amount taken, the users experience with the drug and their expectations (http://www.gethereforfreeinformation.com). The effects of ecstasy can also depend on the quality and purity of the drug, starting about an hour after being taken and lasting up to six hours. Ecstasy may also produce a â€Å"hangover† effect. Like marijuana, adolescents use ecstasy because of peer pressure. Many teens turn to this drug because it is as an escape from a variety of problems that they might be experiencing at home or in school.