Functional areas of a business

Functional areas of a business Outcome 1 Avril Montgomery 1) Open System An open systems approach is a business approach that emphasizes commercially supported practices, products, specifications and standards. Motorola is an open system. Using this approach assists their long term success. They are able to produce an appropriate output as they know the importance of gaining input from their surroundings. As a global leader in a wide range of technologies, the most important aim of Motorola is to maintain their position. Motorola is knowledgeable to the fact that technology develops rapidly and in order to access these technologies customers will require the latest modern products. They aim to distinguish themselves from their competitors by creating cutting edge designs that meet the expectations of the customers. The launch of the worldwide marketing campaign Mobile Me which includes innovative design and wireless features has set them apart from their competitors. Their range of Bluetooth wireless devices enhances the mobile experience for customers. M otorola is aware of the effect mobile phones and other electronic products have on the environment. They apply technical skills to decrease negative effects to the environment at each stage of the product life cycle. One of their goals with regard to the environment is to produce products which contain minimal amounts of poisonous chemicals or to cut them out completely. 2) Structure During the 1980s, due to other mobile phone companies such as Nokia, Samsung and Sony creating strong competition, Motorola struggled to keep up. In order to reverse the slump in sales, top managers at Motorola decided to improve the quality. This change was needed due to global competitors and changing technology. The plan was to aim for zero defects in the production. Motorola implemented a system called Six Sigma. Six Sigma is a business management strategy which attempts to identify and eliminate the causes of defects and mistakes in the manufacture and business process. The program was stretched out from operations to the other functional areas sales and marketing, personnel and human resources. Reorganising into four business areas during 2005, allowed Motorola to improve their response to the needs of the customers and environmental changes that have taken place. As 58% of the companys total sales were made up from mobile devices, Motorola views this as a significant contributor to their organisation. 3) Organisational concepts Motorolas structure is based on their products, these are: Connected home solutions Connected home solutions Government and enterprise mobility solutions Networks Motorolas functional areas are: Research and development Sales and marketing Personnel and human resources Functional areas were set up by Motorola to support the product areas. Marketing is a very important area as the views of customers can be obtained to determine what they want. It is essential for the marketing and the research and development areas to work together to meet the needs of the customers. Technology is always advancing which means that the research and development area must stay ahead to include these advances in their design. To adjust to environmental changes, it is necessary for all functional areas to work together. 4) Advantages of Motorolas structure Continual development of knowledge in dealing with Motorolas complex products The structure allows Motorola to react quickly to environmental changes. This allows the company to respond to technological change. This form of structure allows Motorola to be extremely client orientated Disadvantages of Motorolas structure As the emphasis is the product, Motorola may have a problem of coordination They may be an apparent redundancy of effort and not much cooperation between product areas Managers may focus on their line of work to the disadvantage of the company as a whole. 5) Internal stakeholder Motorolas business unit is managed by Ronald Garriques. He is responsible for the mobile devices business unit and has the authority to guide the business unit for defining the strategy for mobile devices. He must guide the mobile device business to succeed otherwise he will be responsible for any failure and have to accept that responsibility. He has authority in the organisations formal structure. In terms of the informal structure of the organisation however, his authority is limited as this is normally governed by a group of individuals. His power could be undermined by the group of individuals, which could perhaps be detrimental to the business. External stakeholder Greenpeace is a worldwide campaigning organisation that acts to change attitudes and behaviour, to protect and conserve the environment. As an external stakeholder in Motorola they could have a big effect on the formal structure of Motorola. Although Greenpeace have no power in the formal organisation, they have influenced Motorolas behaviour in terms of the environment as Motorola have a policy and commitment regarding this issue. They can exert some degree of authority, by persuading Motorola to train their staff on environmental issues and getting them to have an environmental policy. Through education programmes, they have the power to influence groups of individuals, making them aware of the harmful effects that the substances in mobile devices has on the environment.

Organizational Change Essay

Organizational change is common when companies go through a transformation and need to either change business strategies or restructure the operation. Organizations are open systems that survive by maintaining good standing with the economic environment around them. By fundamentally changing the environment of a company, it means altering ways and means of production, downsizing, or even dropping dead weight as Ford did eliminating whole brands such as Mercury. In some cases the whole culture may need to change in order to rebrand a struggling company. According to McShane, effective change occurs by unfreezing the current situation, moving to a desired condition, and the refreezing the system so that it remains in the desired state. (McSane, 2014) Easier said than done because some of the main challenges when it comes to organizational change involve the employees who are restraining the driving forces of upper management. Resistance can prove toxic if untreated or left unnoticed creating silos or just counterproductive thoughts, words, and actions. Productive persuasion is tricky when you have to explain how to do things one way after explaining to do them another before. Credibility can be tarnished if reasoning and logic do not follow the definitive command. When Upper management has to restructure it can mean losing the respect of subordinates in some cases because they may be challenged more often in the future. Organizations can improve the likelihood of success in their change efforts by putting all the cards on the table. Explanations should be given that include positive results for them in the future justifying why change is needed. Communication and employee involvement reduce the restraining forces and promote an open learning environment. In Ford’s case, the fear of unemployment for many workers due to the economy was motivation enough to embrace change with open arms hoping to float by in the financial hurricane. This open-mindedness kept them ahead of the competition and rallied them behind the creation of the Fusion and Escape. Focusing more attention on smaller fuel-efficient cars has paid off mainly because of rising gas prices and environmental considerations. According to Rosevear, while the V8-powered GT version of Ford’s Mustang  sells well, higher-performance models are typically niche products. That niche is growing — Ford says that sales of high-performance models have risen 70 percent in the U.S. since 2009, and 16 percent in Europe over the same period — but it’s still small. High-performance versions of mainstream models generally make up less than 10 percent of the model’s total sales. But those sales can be very profitable. Ford’s compact Focus starts at under $17,000, but the sticker price on a loaded high-performance ST model is close to $29,000. There’s a lot of profit for Ford in that $12,000 difference. (Rosevear, 2015) The profit margin seems to be growing as production methods become faster and more efficient, creating an environment worth changing towards. When companies look back for examples to give about successful organizational changes, Ford should be on the forefront of their minds as a good example. McShane, S., & Glinow, M. (2014). Introduction to the Field of Organizational Behavior. Organizational Behavior (2nd ed., pg. 273). Boston: McGraw-Hill/Irwin. Rosevear, J. (2015, January 10). How Ford Will Chase Younger Buyers in 2015. Retrieved from http://www.dailyfinance.com/2015/01/10/how-ford-will-chase-younger-buyers-2015/

Anxiety Disorders And Its Effects On Children s Life

Sweaty palms, trembling hands, and a tendency to stutter are common, and are regarded as normal when students, or generally younger adults, are to give a presentation of some sort in front of a group, class, or crowd; excessive breathing issues, nausea, and adamant reluctance to even speak are not, and should not be treated as such. When the first three behaviors shift into the latter three, concern should arise in the parents or guardians of whomever the younger person is, as it is likely that their fear of social presentation could very well be something forming into a much more severe matter of worry: an anxiety disorder. As the mental development that takes place in the early years of life are pivotal to the rest of one’s overall health, issues such as anxiety disorders that are left untreated are very detrimental and can trail into adulthood as well (Children’s Mental Health - New Report). It is important for parents and guardians to be involved in their child†™s life so that they are able to recognize a severe shift in the perfectly normal, and beneficial, anxiety felt in one’s younger years to a kind that keeps the child from living their life properly and to their full potential. A common, but dangerous, mindset that some parents or guardians take on in the face of their child’s unusual levels of anxiety is one of dismissal in which they disregard the forming issue as a phase of some sort that every child must endure; however, such a belief is only partially correct.Show MoreRelatedAnxiety Is Not A New Disorder1182 Words   |  5 PagesWhat is Anxiety? We all know the feeling of anxiety. Some may not be able to distinguish it from fear. For others, it s a constant struggle that impedes almost every aspect of their lives. Anxiety is not a new disorder caused by recent advancements in technology. Rather, it’s always been with us and our psyche since our beginnings. From the times when mankind lived in caves, anxious about killing a large predator or other attacking humans. To today, anxious about finals or an upcoming deadline atRead MoreAttention Deficit Hyperactivity Disorder ( Adhd )1734 Words   |  7 Pagesissue amongst children and young adults. The physical health and the ability to perform at school, work and in society, highly depend on the mental health of an individual (Ollendick 2012). The Australian figures of a burden of the disease show that mental health problems occur in approximately 14% of young people aged 4–17 years, and 27 % in the 18–24-year-old age range. Most mental disorders, for exampl e, attention deficit hyperactivity disorder(ADHD), anxiety disorder, mood disorder, psychotic disorderRead MoreStuttering Is A Communication Disorder That Involuntary Effects The Fluency Of Speech1479 Words   |  6 PagesStuttering Stuttering is a communication disorder that involuntary effects the fluency of speech. Disfluencies in speech include both â€Å"nonstuttered† and â€Å"stuttered† disfluencies. â€Å"Nonstuttered† disfluencies include interjections, revisions, phrase repetitions, and other. Everyone produces disfluencies in their speech at times making â€Å"nonstuttered† disfluencies more typical in speech. â€Å"Stuttered† disfluencies are less typical and include word repetitions, sound/syllable repetitions, prolongationsRead MoreSocial Anxiety Disorder : Social Phobia Disorder1654 Words   |  7 PagesSocial anxiety is â€Å"a fear of humiliation or of being judged by others, and an avoidance of social situations where attention centers on the individual† (Martis). According to the Social Anxiety Institute, social anxiety has become the third largest psychological disorder, following depression and alcoholism (Richards). Commonly, victims of this social phobia have problems pursuing social environments, interactions, and relationships (â€Å"Social Anxiety Disorder†). The failure to fulfill daily requirementsRead MoreThe Effects Of Reinforcement On Treating Disorders And Substance Use1218 Words   |  5 PagesThe use of reinforcement has been shown in multiple studies in treating disorders such as anxiety and substance use. It is most commonly used during behavioral cognitive therapy to change people s way of thinking and actions. The outcomes of reinforcement in these treatments have shown an overall positive effect with the disorder being shown at a lesser degree or disappearing completely. Reinforcement is described as the process by which a stimulus increases the probability that a preceding behaviorRead MoreThe Effects Of Self Perception, Behavior, And Behavior Of Children From Infancy Into Adulthood879 Words   |  4 PagesDiscussion Post Week Four NURS 6541, N-11 This week?s topic is developmental and growth issues that may have an impact on mental wellness, self-perception, and behavior of children from infancy into adulthood. For the purpose of discussion I will evaluate issues of self-perception, behavior, and mental wellness in school-aged children. I will also evaluate strategies to mitigate the promotion of positive behavior, mental wellness, and good self-perception. Also, I will provide additional educationalRead MoreThe Consequences of Post-Traumatic Stress Disorder1621 Words   |  6 PagesPost-traumatic stress disorder (PTSD) is a medical condition that many people suffer from at different ages. Most of the people that have suffered from PTSD have done so due to a major trauma that occurred at some point in their life. Even though the trauma could have happened months or even years earlier, the symptoms can come back when an event or the anniversary of the trauma triggers the memory of the traumatic event. Some of the traum as that cause post-traumatic stress disorder are rape, deathRead MoreAnxiety : Stress Gone Crazy1672 Words   |  7 PagesANXIETY: STRESS GONE CRAZY Imagine a person who becomes anxious about common everyday activities,the person starts to shake, sweat, or even faint. The effects of anxiety disorders range from simple nerves to serious health issues or even death. are a small For some, anxiety is a common problem in everyday life. It is important to understand anxiety, understand the signs and symptoms, and understand how to treat the disorder. UNDERSTANDING ANXIETY In the world today, it is nearly impossible toRead MoreWhere Does Bad Behavior Do Children Come From?1515 Words   |  7 PagesWhere Does Bad Behavior in Children Come From? Many bystanders perceive that young children with bad behavior want attention from whoever is around. In most cases this is true, but sometimes there is an underlying root to this behavior. In order to handle an outraged child, one must consider why he/she is like this. Three of the reasons why a child could be acting out are separation anxiety, the size of the child’s family and birth order, and disorders. Separation anxiety is defined as the troubledRead MoreSeparation Anxiety And Its Effects On Children1560 Words   |  7 Pagesexample of separation anxiety, a developmental phase that most children go through during their early years. Separation anxiety is most likely to occur in child with a family history of anxiety/depression, child who are shy, children who have a lack of appropriate parental interaction, and overprotective parents. Separation anxiety is one of the most common anxiety disorders in children affecting one out of twenty. It is a developmental stage during which the child experiences anxiety when separated from

Abortion is Not the Reason for Lower Crime Rates Essay

What is wrong with the ivory tower? The appointment of Peter (Death to Disabled Newborns!) Singer to the bioethics faculty at Princeton University has generated considerable controversy. Recently, University of Chicago economist Steven Levitt and Stanford University Law School professor John Donohue III created a furor with their research paper Legalized Abortion and Crime. The authors contend that legalized abortion fueled the drop in crime in the 1990s because a new subclass of humanity theyve identified- women most at risk to have children who would engage in criminal activity-have higher abortion rates, thus preemptively executing the would-be felons. This subclass, we are told, is populated predominantly by women who are†¦show more content†¦Levitt and Donohue that the whole thing was just a zany joke. Swifts Modest Proposal for Preventing the Children of the Poor People in Ireland from Being a Burden to their Parents or Country ... proposes to pay mothers for breeding and nursing their children. Poor mothers with many children would not then be forced to spend their days begging and could undertake some gainful employment. And infants would be sold at 12 months, after weaning, as a tasty delicacy for the gentry. The commonwealth would then be rid of children who might turn thieves for want of work. Swift minutely calculates the monetary b enefits to the nation, just as Donohue and Levitt tote up the ever so speculative savings from executing likely criminals in utero. Unfortunately, it appears that many people are accepting Levitt and Donohues hypothesis as Revealed Truth (no matter that the paper is unpublished and not peer-reviewed). A few random observations about their methodology and assumptions may illuminate the paths which led them to error. First, the authors get one point right, but fail to draw out its obvious significance. They acknowledge that legalizing abortion leads to an increase in the conception rate among women who do not want babies. ... One recent study cited found the decline in birth rates due toShow MoreRelatedWhere Have All The Criminals Gone?1594 Words   |  7 Pagesaddresses the question of why crime rates suddenly dropped in the 1990’s. Various assumptions made by people during this time are given, such as a strong economy, increased reliance on prisons and increased use of capital punishment, innovative policing strategies and increased number of police, gun laws, change in crack and other drug markets, and the aging of the population. However, the most convincing reason for the crime decline is due to the legalization of abortion in the 1970’s. Without theRead MoreRoe Vs. Wade On Low Income Economies1325 Words   |  6 Pagesincome economies. 4.1. Abortions This theory exemplifies the law of diminishing returns, as the original shock impact of lack of children is reduced as the effect becomes more and more normalized, and abortion decreases its own consumer base as time passes. Looking at the number of abortions since Roe, it quickly becomes evident that there is a definite decline in the rate of abortions before there is a decline in the number of abortions, because although abortion rates decrease over time forRead MoreAbortion Is Killing A Baby989 Words   |  4 PagesFor recent years, people start to deny abortion and stated it as cruel and murder. While it does involve remove fetus or embryo from the mother and kill the baby before it was born, it might not be the worst thing that can happen to the baby. Most people who chose abortion is either can’t afford to have a kid or unable to take care of them. It was one of the case, while other concern about their right as a person. Some might say the baby have right to live, while others believe the mother have rightRead MoreAbortion: Pro Life vs Pro Choice Essay1748 Words   |  7 PagesAbortion: Pro-Life vs. Pro-Choice Abortion: Pro-Life Vs. Pro-Choice â€Å"Abortion is the spontaneous or artificially induced expulsion of an embryo or fetus† (Abortion, 2002). An artificially induced abortion is the type referred to in the legal context. Abortions happen in different situations. The question comes when is it the right or wrong choice. The root question becomes the moment a fetus becomes a person and entitled to rights. The fetus could be a person at conception, duringRead MoreAnalysis Of The Book Freakonomics By Steven D. Levitt Essay1502 Words   |  7 Pageswell, they would receive a bonus at the end of the year. On the other hand, the sumo wrestlers also work the same way. They were working together to better position themselves in the ranking system. Another thing that the book compares are these reasons why drug dealers still live at home with their parents. This chapter depicts no other drug â€Å"classier than cocaine. It was known to be the drug of power and panache (107).† However, this opulent image is nothing but a lie. A college student namedRead MoreProposal Draft : Sex Education869 Words   |  4 Pagesas citizens are faced with everyday. Whether it be crime, equality, poverty, or abortion. The teen pregnancy and abortion rates have dropped dramatically within the last ten years. There are several factors that come into effect when trying to figure out why there is such a dramatic decline. The main reason is because of sex education in schools; teaching teens to practice safe sex. The United States are in a period of time where the abortion rate has declined tremendously. â€Å"The latest Centers forRead MoreShould Abortion Be Legal?1452 Words   |  6 PagesTravis Lignell Argumentative Essay 04/28/2015 With forty five million abortions per year worldwide, the abortion debate is full of what people consider being right or wrong, or whether deliberately terminating a pregnancy before the birth of the child is in essence, murder. (6) Abortion is an extremely painful topic for both men and women who have put themselves in the situation of whether or not to end a pregnancy. It is one of the most polarizing moral issues and most people are very strongRead MoreEssay about Research Proposal on Abortion758 Words   |  4 PagesResearch Project Proposal Topic: Abortion Psychology 101 Jasmine Payne Summary of Background Research Abortion is a controversial topic that has plagued the country for decades. Even after the 7-2 Supreme Court trial (Roe vs. Wade) made it legal for women to choose to get abortions. This decision was based off the right of privacy coupled with the agreement between the woman and the state. Due to this decision abortion rights vary from state to state, in fact, about 85% of United StatesRead MoreShould Abortion Be Legal?1320 Words   |  6 PagesAbortion, as you all may know, is a really popular topic. There have long been many debates between the two groups, pro-life and pro-choice. People who are pro-life believe that part of the government’s job is to protect all forms of human life. Those who are pro-choice believe that every individual should have control over their own reproductive systems. Pro-life supporters strongly believe that even an undeveloped fetus has life; it is still growing and it needs to be protected. And this soundsRead MoreSocial Perspectives On Abortio n And Abortion1291 Words   |  6 PagesSocial Perspectives on Abortion Angelica Haro California State University Fullerton Sociology 308, Fall 2015 Social Perspectives on Abortion Introduction The abortion question raises a number of issues that form the core of the abortion debate. Opponents and supporters of abortions have been battling over this particular problem for decades and still cannot come to an agreement. Being one of the most common and most controversial medical procedures, abortion tends to affect people

Comparing Christianity And Islam Similarities And...

Compare and Contrast Christianity and Islam Nature of the Afterlife and Nature of the Divine Christianity and Islam: Similarities and Differences INTRODUCTION Islam and Christianity are the largest religion in the world and share many common beliefs. The two religions co-exist in many parts of the world. However, each religion has it is own territories where they are the dominant religion. The two religions share almost the same history of inception and concepts of faith. Despite, being similar in many ways, they also have marked differences. The differences have led to mutual distrust between the Christians and the Muslims. Many Muslims have come out openly to criticize the Christian religion and Christians have written many articles condemning the Islam religion. The differences and similarities appear in many aspects of the religions. As such, it is easier to discuss them intensively by restricting the discussion to selected aspects. The life after death and belief in the Supreme Being by the believers of Christianity and Islam religions has many differences and similarities. INTERVIEW The purpose of the interview is to get the views concerning each religion. In this regard, two people, a pastor, and an Imam, were interviewed, each representing their respective religion. The pastor and Imam were specifically selected because of their vast knowledge of the Christianity and Islam religions respectively. They were both asked questions about the lifeShow MoreRelatedThree Main Religions in the Middle East 897 Words   |  4 PagesIran, Iraq, etc. The religions are Christianity, Islam, and Judaism. With the close proximity of these countries, but the differing views on things, mainly religion, creates some conflicts and hostility. In America, people are allowed to worship who they want, and believe in what they choose. When someone says they are Christian, there is not a lot of judgement passed, but in these other places, religion rules all. Today we will be assessing each religion and comparing them to one another. One of theRead MoreComparing Islam And Baha I And Islam1264 Words   |  6 PagesWhether it be the various branches of Christianity, the Chinese religions, or even Judaism and Islam, they have so much in common when you work down to the roots of the religions. For starters, I will be comparing Islam and Baha’i. Part of the reason that Baha’i and Islam are so similar is because Baha’i gets its start from some of the base beliefs of Islam. Some of the similarities between the two are the fact that both have obligatory prayers. With Islam, a believer would pray five times a dayRead MoreSimilarities Between Islam And Christianity997 Words   |  4 PagesIslam and Christianity are two largely wide spread religions in the world that have a great impact on their followers, especially in a spiritual manner. Because of originality, values, and unique believes in each religion, their believers respect and try to comprehend each other’s faith. With Christianity’s record 2.2 billion population and Islam’s impressive 1.6 billion population, they both form the bases of their countries laws and are recognized by governments all around the world. Even thoughRead MoreThe Christian Bible and the Islamic Quaran994 Words   |  4 PagesSimilarities and difference exist bet ween the two sacred texts of Islam and Christianity and although the Qur’an and the Bible are considered sacred text and their impact on modern society is ever present. Sacred texts are a collection of historical writings that date back thousands of years and are used by many traditions to have a special significance especially scriptures and holy books as they are often used to show hoe to live an honest and meaningful life. The Qur’an is the sacred text of IslamRead MoreAbrahamic Religions With Similar Rituals And Practices Essay1606 Words   |  7 Pagesslam and Christianity in Comparison; two religions with similar rituals and practices. Many historical events around the globe have put a wedge between Christians and Muslims. The Christian perspective is that Muslims are set to be dangerous and violent people. The Islamic community has a perspective of hatred from the Christian community. While Islam and Christianity are distinctively separate religions; they both stem from the same beginnings and are more alike than they may admit. Should theyRead MoreCompare And Contrast Christianity And Islam1031 Words   |  5 PagesChristianity and Islam are wide spread religions which impact the lives of believers spiritually. Both religions have had substantial impact on the course of history and have formed the basis of many countries laws and are highly recognized by governments. Though Christianity is more widely known, they both pose the same challenges to each other. Considering the similarities and differences of Christianity and Islam, it can be said they are both very different. Comparing the two religions, isRead MoreA Comparison of Religions1177 Words   |  5 Pagesï » ¿Judaism, Christianity, and Islam are all different types of Abrahamic religions. Abrahamic religions are the monotheistic faiths of the world. The most prominent of these are in fact Judaism, Christianity, and Islam, all of which can trace their religious origins back to Abraham (Bowker, 2008). Abraham is considered the ancestor of Israelites, the first Jewish believers, through his son Isaac. Isaac is generally associated with the foundation of the Israelite people while Abrahams other son, IshmaelRead MoreSimilarities Between Christianity And Islam1005 Words   |  5 Pages Compare and contrast ancient Christianity and Islam. Christianity and Islam are both closely related religions, because they are branched of Abraham and other patriarchs mentioned in Hebrew Scriptures. Examples of these books are the Old/ New testament and the Quran. These books serve as their spiritual ancestors and are also know as Abrahamic religions. Although these books have a massive amount in common the clash of these two religions has caused for a mass crimes and violence across humanityRead More Comparing Christianity and Islam Essay1573 Words   |  7 PagesComparing Christianity and Islam   Ã‚  Ã‚  Ã‚  Ã‚  Christianity and Islam are two of the fastest growing religions, and they both have a lot in common. In this essay I will explain their differences and similarities, their messages, how they treat their believers and other religions, their historical relationship, and other topics along these lines.   Ã‚  Ã‚  Ã‚  Ã‚  I will start this essay by explaining Christianity, and many things about it. The word â€Å"Christianity† itself, means â€Å"Believer in Christ.† If you areRead MoreDifferences Between Christianity And Judaism Essay848 Words   |  4 Pageswant to explore the differences and similarities between Christianity and Judaism in an attempt to create more religious tolerance. Exploration and education lead to understanding and only when you understand can you feel compelled to navigate real relationships with your spiritual brothers. Christians and Jews all worship the same God; the paths are just different. Believe it or not, Christianity and Judaism are the most similar to all the major world religions. Both Christianity and Judaism believe

The Importance of Organ Donating Free Essays

Speaking from my own experience, it is not easy to make a decision to donate a loved one’s organs, however, my sisters and I knew that our mother wanted to be an anatomical donor. She had filled out an advance directive stating that upon her passing, she wanted to donate any viable organs for transplant purposes. We donated her eyes, and now someone out in this wonderful world we live in has her eyes. We will write a custom essay sample on The Importance of Organ Donating or any similar topic only for you Order Now This person can now see the beauty around them, maybe even their grandchildren for the first time. We made the decision to give this wonderful gift of renewed life and we agree that this was the right thing to do. We are thankful everyday that someone has our mother’s eyes and now has the gift of sight. There is one important fact that every person in this world can agree on: At some point in our lives, we are all going to face the reality of death. Death is imminent to everyone, and the prospect of death is generally very tragic for most people. It is the unknown that can instill the fear of dying in a person or a family. Tragic accidents and terminal diseases are often the source of many deaths, and invariably in those instances we are unable to control the inevitable outcome, which is death. However, in the course of life and death, we have the ability to control certain situations. We have the ability to control the outcome of someone else’s life. This person may be a stranger or a family member, but we can give them a very precious gift. We have a choice. We can offer the greatest gift we can give, the gift of life to another person through organ donation. Life is spared for many people through organ donation. Organ donation is truly a gift that saves hundreds of lives each day. However, even greater than the number of lives saved is the number of deaths that occur each day as people on an organ transplant waiting list continue to wait. Organ donation and transplants must become a reality and readily available to all people in need of transplants. According to the Mayo Clinic, in ancient mythology and the bible, heart transplants are referenced a number of times. Additionally, at the beginning of the 20th century Alex Carrel became a pioneer in making organ transplants a realistic possibility. Estimates reveal that in New York City alone, there are maybe three-hundred fifty people who are organ donors, however, there are at least 7,000 people in this city who are currently awaiting organ transplants. One single organ donor has the ability to save up to eight lives by donating their heart, lungs, liver, kidney, pancreas, and intestines. There are no restrictions on who can become an anatomical donor. (NYU Hospital for Joint Diseases) According to the information found on the web site organdonation. om, family consent is required for organ donation. Requesting people to become anatomical donors is never easy, especially when they are faced with the loss of a loved one, or their own imminent demise. First, consider the wishes of a loved one. Secondly, remember you are giving the gift of life to someone. Organ transplanting and organ donating can and has saved many lives. Dr. Dan Fischer writes in his article titled, â€Å"The Gift of Organ Donation† how becoming an anatomical donor will bestow the distinction of giving a lifesaving gift to a person who needs a healthy organ. This is an opportunity for everyone to give the gift of life to another human being during our lives or after we have passed. I agree with Dr. Fischer that we desperately need organ donors in this country, and everyone should consider themselves a potential donor. (Fischer) Statistics on organ donor’s . html show that well over tens of thousands of people are on waiting lists each year for transplants. Approximately 10-20% of these people will die before they can receive a viable organ that is a match for them. There are many factors to consider when looking at current problems associated with the lack of organ donation and transplants. One of great importance is demographics. Many people in the Eastern portion of the United States do not believe in organ donation for a variety of reasons. For some it is cultural, for others it is religion. Many people are just not comfortable with donating their organs or a loved one’s organs after they have passed on. One possibility may be just the fact that being an organ donor has never been brought to their attention. One way to become an organ donor is to request to be an anatomical donor on your driver’s license or state issued identification. This will show as a restriction and alert medical personnel as to your request. People can also state in their advance directives that they wish to be organ donors. When someone who has died, and has previously given permission for their organs to be donated to another human being, they are giving a gift so precious it cannot be measured by dollars, only by love. For people who cannot survive without a transplant, a donated organ can give them back their lives. How to cite The Importance of Organ Donating, Essay examples

Managing Finance Analysis

Questions: 1. Prepare a report and focus on sources of finance available to the business and discuss internal and external sources separately. Assess the positive and negative implication of the different sources of finance identified. Select a project that is typical to your organisation then identify and discuss various sources of finance appropriate for that business project. You need research the costs of each of sources of finance you have identified. 2. You need to analyse a suitable budget period at least six months and comment on performance and the behaviour over that that period .Also comment on what action should have been taken. You need to give the formula and explain the link between unit costs and selling price decisions using relevant example. Also explain the importance of information on fixed cost, variable cost and break even point. In addition, assess and evaluate the viability of a project using different investment appraisal techniques (Payback period, NPV,IRR,ARR)to ensure project is properly funded and it will be profitable. 3. You need to discuss the main financial statements by explaining what they contain, their purposes And who makes use of them. Describe and compare the formats (structure, content, detail) of main financial statements for different types of business. Analyse three consecutive years of financial statements of your chosen organisation by using appropriate ratios and comparisons , (both internal and external). Answers: 1. Evaluation of the various sources of finances (Internal and External sources of finance): There are various sources of finance available to an organization. They are the internal sources of finance and the external sources of finance. The expansion plan will help the organization to meet the future demand of the customers. The external sources of finance can be for a period of short term and for a period of long term capital. North Midland Construction PLc will use external and internal sources of finance to finance its expansion plan. The company will require 60% of the total requirements to finance their expansion plan. The sources of finance are discussed below Equity Shares Equity shares are also known as the ordinary shares. It provides ownership rights to the equity share holders. The equity share capital is considered as a permanent source of capital. The company has to pay a share of profit as dividend to the share equity share holders. This is an external and long term source of finance for the organization. The equity share holders will have legal ownership of the company. The shareholders have to bear the risk is the company faces severe turmoil. But the share holders will also enjoy higher dividend amounts when the organization will earn huge profits. The shareholders has claim over the profitability of the organization (Kumar, 1994). Preference shares - It is long term source of finance for the organization. The organization can raise capital by issuing preference shares. The preference share holders will get a fixed rate of dividend and enjoy their preferential right. The presence share holders will be repaid first on liquidation of the company. The source of capital has the characteristics of both the equity capital and debt capital. The preference shares are of various types on the basis of the amount of dividend payment, redemption of the divided and convertibility of the shares. The convertible preference shares can be converted into equity shares after a stipulated duration of time. Debenture Debenture is an external source of finance which is taken for a longer period of time. The company can raise capital or borrow money from the market by issuing debentures. The debenture is the acknowledgement of the debt that has been issued by the firm. There are certain terms and conditions of the contract. The conditions are based on the repayment of the principle amount within a specific period of time and company has to pay a fixed rate of interest to the owner of the debentures. The debentures are of two categories. They are redeemable debentures and irredeemable debentures. There are other types of debentures like naked, registered, mortgage and collateral securities. Term Loans The term loans are raised by the business organizations for a short term or medium term basis. The short term or medium term requirement of the organizations can be met by issuing term loans. The term loans are issued by the organization to finance their fixed assets and requirements of working capital. The term loan can be raised for the purpose of expansion of the organization. The term loan can also be raised for the purpose of redemption of the preference share capital, debenture and bonds. The term loan can be taken on payment of a fixed rate of interest which is paid by the owners of the organization to the lenders of the organization. The loan is taken by the owners of the organization against the security of the assets of the company (Levy, Berry and Nugent, 1999). Commercial banks - The organization can take loan from the commercial banks for raising capital for a short term or medium term basis. The commercial banks provide loan to the organization for a fixed rate of interest. Public deposits Public deposit is another means of raising capital. The organization can borrow fund from the public at a rate of interest that has been specified depending upon the period of deposit (Bhaird, 2010). Retained earnings Retained earnings is an important source of internal capital for the organization. It is a long term source of finance for the organization. The profit of organization is utilized by the business organization for its expansion. The Retained earnings will be used by the organization for purchasing the assets. The retained earnings are also used for making improvements within the organization (Sofat and Hiro, 2015). The retained earnings are used for asset purchasing. The retained earnings are the cheapest source of capital for the organization. The organization will not pay any fixed rate of interest. The retained earnings will be an important source of capital for strengthening the capital structure of the organization (Nikbakht, Nikbakht and Groppelli, n.d.). The other internal sources of finance for the organization are commercial papers, deposits etc. Implications of the various sources of finance The various sources of finance are equally important for the business organization to raise capital. The two major sources of finance for an organization will be the equity shares and the debentures. The company can issue equity shares to raise funds so that they can finance their expansion plan. The company can raise the capital without making any charge against the assets of the organization. The company will have to pay the shareholders only at the time of liquidation of the business organization. Thus the company has no burden on it. During financial crisis the company is not liable to pay the divided to the equity share holders. The company will be liable to pay the dividends only if it earns huge profits. The dividend is paid at first to the preference share holders. Then the remaining part is distributed among the equity share holders. The payment of dividend on a regular basis enhances the value of the organization. The credit worthiness of the organization will increase. The equity shares are issued by the organization to raise funds from the market for the expansion of their business. Debentures are another source of finance for the organization. The short term and medium term financial requirements of the organization can be met by raising money via debentures. The company can raise funds by issuing debentures but the share of the company will not be distributed among the share holders. The rate of interest payable to the owner of the debentures is less than the rate of dividend payable to the equity share holders. The interest paid is tax deductible. The redemption of debentures can be done in case of overcapitalization. The possibility of trading equity is enhanced by which the organization can hedge against the problems of inflation. Therefore on analysis of the various implications of the debentures and the equity shares it can be said that it will be advisable to North Midland Construction PLc . to raise money by issuing equity shares as well as by raising debentures to promote the plan of expansion of the organization. Evaluation of appropriate source of Finance The appropriate source of Finance for North Midland Construction PLc . is by issuing debentures by the organization. The issue of debentures will be cost effective for the organization. The organization has to pay a fixed amount of interest on debenture. The rate of interest paid on the debenture is lower than the dividend that is payable to the equity share holders. The interest that is paid to the owner is tax deductible. Thus issuing debentures will not be a burden on the organization. The company can pay high rate of dividend to the existing equity share holders as the burden of the company will be less. Debenture will be a stable source of finance for the organization. The company will be able to raise funds by issuing debentures. The risk of the organization will be reduced (Small Business - Chron.com, 2015). The investment of the organization in issuing debentures is also low. The company can hedge against inflation. This is due to the fact that the company will pay fixed amou nt of interest as termed during the time of issuing the shares. Thus the appropriate source of finance for Quality Window Ltd. will be by issuing debentures. This will be any ideal source to raise money for the expansion of their business (Bbc.co.uk, 2015). The company will raise 1, 00,000 by issuing debentures. The money will be invested in various projects for the purpose of expansion of the business. The company will be able to raise money from appropriate source by effective financial planning. Financial planning is important for rational decision making of the owner of the organization. It will help the organization to use its resources in an efficient manner. The current and future financial position of the company can be evaluated by financial planning (Small Business - Chron.com, 2015). It is an important aid to take major financial decisions of the organization. The future cash flow of the organization can be decided on the basis of present financial position of the organization. The financial plan can be referred to as an investment plan for making the investment decisions of the organization. The financial plan for North Midland Construction PLc will be made by focusing on the specific areas of the risk management. The financ ial planning also includes preparation of budget to organize the finances of the firm (Levy, Berry Nugent, 1999). 2. North Midland Construction PLC Expenses and Source of Funds February March April May June July Operations and Maintenance Expenses 30,000.00 30,900.00 31,827.00 32,781.00 33,765.00 34,760.00 Power and Utilities 2,500.00 2,575.00 2,652.00 2,731.00 2,813.00 2,970.00 Fees Regulatory 500.00 515.00 530.00 545.00 562.00 575.00 Materials supplies and Parts 150.00 154.00 158.00 162.00 168.00 172.00 Total Operation and Maintenance Expenses 33,150.00 34,144.00 35,167.00 36,219.00 37,308.00 38,477.00 General and Administrative Expenses Engineering and Professional Expenses 500.00 515.00 520.00 575.00 546.00 562.00 Insurance 1,000.00 1,030.00 1,060.00 1,092.00 1,125.00 1,156.00 Existing contribution to CIP 16,712.00 16,712.00 16,712.00 16,712.00 16,712.00 16,712.00 Total General and Administrative Expenses 18,212.00 18,257.00 18,292.00 18,379.00 18,383.00 18,430.00 New Funding Project Cost 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 50,000.00 Total Expenses 101,362.00 102,401.00 103,459.00 104,598.00 105,691.00 106,907.00 Revenues Received Cash Revenues 120,000.00 122,000.00 123,000.00 123,500.00 1,237,000.00 123,800.00 Other Fund Sources : Interest 200.00 200.00 200.00 200.00 200.00 200.00 Total Revenue 120,200.00 122,200.00 123,200.00 123,700.00 1,237,200.00 124,000.00 Net Loss or Gain 18,838.00 19,799.00 19,741.00 19,102.00 1,131,509.00 17,093.00 The budget for 6 months has been prepared. The budget shows that cash outflow for the expansion project will 10,000 each month. The total outflow for a period of six months will be 60, 000. The inflow from the project for a period of six months is 352,782. Fixed cost, variable cost and breakeven point are essential to analyze the budget. The volume of product to be manufactured can be ascertained from the various costs and the breakeven point (Balakrishnan, Sprinkle and Sivaramakrishnan, 2015). Calculation of NPV Calculation of NPV Month Inflow PVF PV 1 58,838.00 0.909 53,483.74 2 59,799.00 0.826 49,393.97 3 59,741.00 0.751 44,865.49 4 59,102.00 0.683013 40,367.46 5 58,209.00 0.620921 36,143.21 6 57,093.00 0.564474 32,227.51 PV of cash inflow 256,481.39 NPV = 256481.39 - 60,000 196481.39 IRR Cash Outflow -60,000 Month 1 58,838.00 -1,162 Month 2 59,799.00 58,637 Month 3 59,741.00 118,378 Month 4 59,102.00 177,480 Month 5 58,209.00 235,689 Month 6 57,093.00 292,782 IRR 97% Payback Period 1.02 month 3. Discussion of the Financial Statements The financial statements provide information about the liquidity position of the organization, profitability of the organization. The company will be able to make proper economic decisions on analysis of the financial statements. The financial statement comprises of the income statement, balance sheet and the cash flow statement. The financial statement analysis helps the organization in the process of decision making. The financial health of the organization can be determined from the information gathered from the financial analysis. The main financial statements of the organization are 1. Balance sheet The balance sheet is a statement of the financial position of the organization. It reports on the assets, liabilities of the organization. Information of the amount of equity ownership can be determined from the financial statement. 2. Income Statement The income statement provides an idea of the profitability of the organization. The major income and expenses of the organization can be determined from the income statement. It provides a report of the profit and loss of the organization. The income and expenses of the organization over a period of one year can be determined from the income statement. 3. Cash Flow Statement The cash flow statement determines the flow of cash of the organization in various activities. The flow of cash of the organization in the operating, investing and financing activities can be determined from the cash flow statement. The complexity of the financial statements can vary according to the type of organization and the size of the organization. The financial statement is presented in the annual report of the company which provides a detail of the performance of the organization in the particular year. Financial Ratio Analysis The ratio analysis of North Midland Construction Plc has been conducted. The profitability ratios, liquidity ratios, efficiency ratios and ratios of financial structure have been calculated to analyze the financial performance of the organization. The ratios have been calculated for the year 2013, 2012 and 2011. The external comparison of the financial position of the company has been done with another construction company ORASCOM Construction Industries. Ratio Analysis of North Midland Construction Plc 2013 2012 2011 Profitability Ratios Return on capital employed Net Operating Income/ ( Total Assets - Current liabilities) -0.05053 0.00688 -0.00648 Return on Equity Net Income / Equity -0.49331 0.029557 -0.03397 Net Profit Percentage Net Income / Net Sales -0.03323 0.003197 -0.00383 Gross Profit Percentage Gross Profit / Net Sales -0.03323 0.003197 -0.00383 Operating Profit Percentage Operating Income / Net Sales -0.033 0.004203 -0.00466 Liquidity Ratios Current ratio Current Asset/ Current Liabilities 1.034918 1.18726 1.211314 Quick Ratio Quick Assets / Current Liabilities 1.005238 1.155305 0.971834 Efficiency ratios Inventory Turnover Ratio Cost of Goods Sold / Inventory 119.9477 112.1467 108.3871 Stock Holding Period ( Days) 365/ Inventory Turnover 3.042993 3.254667 3.36756 Debtor's Payment Period( Days) Net credit sales / Average Debtors 3.782488 3.435631 3.778983 In Days 96.49732 106.2396 96.58683 Financial structure Interest coverage ratio EBIT / Interest Expense -49.75 8.875 -8.66667 Price/ Earnings ratio Current Share Price / Earnings Per share -2.28 30 -18.13 Dividend Yield Dividend per share / Current Share Price 3.02% 3.16% 6.07% ORASCOM Construction Industries Profitability Ratios 2013 2012 2011 Return on capital employed Net Operating Income/ ( Total Assets - Current liabilities) 0.001631 0.000945 0.100304 Return on Equity Net Income / Equity -0.02939 -0.02407 0.013597 Net Profit Percentage Net Income / Net Sales -0.54521 -0.40697 0.008218 Gross Profit Percentage Gross Profit / Net Sales 0.057502 0.09279 0.176255 Operating Profit Percentage Operating Income / Net Sales 0.040515 0.022054 0.205801 Liquidity Ratios Current ratio Current Asset/ Current Liabilities 1.204694 1.081639 -1.42112 Quick Ratio Quick Assets / Current Liabilities 0.730774 0.402723 -1.28353 Efficiency ratios Inventory Turnover Ratio Cost of Goods Sold / Inventory 0.117076 0.104938 10.52577 Stock Holding Period ( Days) 365/ Inventory Turnover 3117.631 3478.26 34.6768 Debtor's Payment Period ( Days) Net credit sales / Average Debtors 0.871208 0.639605 2.215178 418.9585 570.6646 164.7723 Financial structure Interest coverage ratio EBIT / Interest Expense -3.75907 -4.40595 5.113374 Price/ Earnings ratio Current Share Price / Earnings Per share -4.51264 -7.33138 0.11 Dividend Yield Dividend per share / Current Share Price 0.00% 0.00% 619.47% Interpretation of Financial Statements using appropriate ratios (Internal and External) Profitability Ratios The financial performance of the organization can be determined from the profitability ratios (Finkler and Ward, 1999). The ratios that determine the profitability of the organization are the return on equity, return on capital employed, net profit margin, gross profit margin and operating profit margin. 1. Return on capital employed The return on capital employed is calculated by comparing the earning before income and tax with the total funds of the business. The return on capital employed has been declining for North Midland Construction from the year 2012 to the year 2013. The company is not being able to maximize its return from the various investments (Desai et al., n.d.). On external comparison of the ratio with ORASCOM Construction Industries, it shows that the return on capital employed for this company has been increasing. The company is being able to earn positive return from its various investments. 2. Return on Equity This ratio shows the earnings available to the equity share holders on net sales of the organization. The higher the return on equity, the equity share holders will receive greater return. For North Midland Construction Plc the return on equity has been declining. As the company is suffering from loss, the equity share holders are not being able to get positive returns. On comparison of the return on equity with ORASCOM Construction Industries, it is seen that the return on equity has been declining for ORASCOM Construction Industries due to political unrest of the country in which the organization operates. 3. Net Profit Percentage The net profit percentage shows the income of the organization on the net sales of the company. Midland Construction Plc has been showing decline in the profit margin from 2013 to 2012. The construction sector has been underperforming which has marked the reduction in profit margin. On comparison of the net profit percentage with ORASCOM Construction Industries, it is seen that the company has been showing decline in the profit margin from 2011 to 2013. 4. Gross Profit Percentage The gross profit margin of the company determines the total income of the organization on net sales. The gross profit margin of North Midland Construction Plc has declined from 2011 to 2013. ORASCOM Construction Industries has shown a decline in gross profit margin from 2011 to 2013. 5. Operating Profit Percentage The ratio shows the percentage of operating profit that is earned from net sales. The operating profit is calculated after payment of the variable costs. The operating profit percentage of North Midland Construction Plc has been declined from 2011 to 2013 due to poor performance of the construction sector. For ORASCOM Construction Industries, there has been significant decline in the operating profit. Liquidity Ratios The liquidity ratio determines the capacity of the organization to meet its short term liabilities. 1. Current Ratio - The current ratio for North Midland Construction Plc has been stable. The company is using its current assets efficiently to manage the current assets. ORASCOM Construction Industries shows stability in managing its current liabilities by using its current assets. 2. Quick Ratio The quick ratio of North Midland Construction Plc is stable. It is efficiently managing its current liabilities using the current assets (Brigham Gapenski, 1988). For ORASCOM Industries the quick ratio has been increasing. It has maintained the 1:1 standard. Efficiency Ratios The efficiency ratio shows the ability of the company to manage its inventory. It is shown by the Inventory Turnover ratio. The debtors turnover ratio shows the repayment period of the debtors (Tamari, 1978). North Midland Construction Plc has been efficiently managing its inventory (Khan and Jain, 2007). The debtor turnover ratio has been stable. For ORASCOM Construction Industries, it is seen that the debtors turnover ratio is increasing. But the company has been managing its inventory efficiently (Peterson Drake and Fabozzi, 2006). Financial Structure The financial structure of the company can be determined by the following ratios 1. Interest Coverage Ratio The ratio shows the ability of the company to repay its interest with the profit. North Midland Construction Plc is not being able to repay its interest regularly (Bhattacharyya, 2011). 2.Price Earnings Ratio The price earnings ratio shows the earning of the shareholders on the price of each share. It is also negative for North Midland Construction Plc (Grier, 2007). 3. Dividend Yield Ratio It shows the ability of the organization to pay the dividend. NMC Plc is unable to pay the dividend regularly to the share holders as it is in loss (Vandyck, 2015). References Balakrishnan, R., Sprinkle, G. and Sivaramakrishnan, K. (2015). Managerial Accounting. pp.400-500. Bbc.co.uk, (2015). BBC - GCSE Bitesize: Sources of finance. Besley, S., Brigham, E. and Aberwald Clark, D. 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