BMGT 364 -Project 1

Biotech Health and Life Products Inc.

[Name of the Writer]

[Name of the Institution]

Introduction

In the process of planning, the essential element is the understanding of business operation and environment. It allows to determine opportunities and threats related to specific area of business. Internal and external analysis of an organization look at the factors that are affecting the business such as environmental factors, strengths, and weaknesses. It is notable to mention that the internal and external analysis provide an organization the complete picture of the prevailing situation. After analysis, steps can be determined to plan the effective marketing exploration. There is a rapid growth of the infant’s product industry in the recent decade, which has caught the attention of global players. In particular, there is an increasing growth of the economies in the Asian region, due to which different companies are interested to expand their business in these regions. Biotechnology is the broad area of biology that utilizes different living organisms in order to develop products.

Biotech products are remarkably effective and are attributable to the change in lifestyles. People tend to use new and innovative products for infants due to their significant efficiency. Biotech Health and Life Products, Inc. is a global, family-owned American company which become a product of household in the United States, Europe, Canada and some parts of Asia. Headquarter of the company is in Yonkers, New York and it has specialization in natural products for maximum health and beauty. This Biotech industry seeks to market its new infant products in the major regions of Asia. For that purpose, there is a need for a comprehensive analysis of the market as well as the company itself to develop an effective strategy for launching its products in the Asian region. The company has interests to enter in the Chinese and Malaysian market due to the increasing growth of economies in the region. Based on this view, the focus of this paper is to provide a comprehensive overview of the external and internal factors that are affecting both the market and the company (Fayol, 1949). This report will help in developing a comprehensive business strategy for Biotech Health and Life Products Inc. in order to enter the fast-growing industry.

PESTEL Analysis

A PESTLE analysis helps in identifying external threats and opportunities in the desired market. The political factors determine the trade agreements among different countries, while social factors empathize on the consumer’s confidence and exchange rates. Social factors give an idea about the ageing population and different lifestyles in the preferred country. Technological factors give an overview of the growing technology and its use in a particular country. Environmental factors determine the impact of the products of that industry over the environment of that country and give a better understanding of the environmental features. In the end, legal factors will tell about the existing legislation of that country.

Political factors

There are many political factors that influence the economy such as employment, environmental, trade, consumer protection, tax, regulations on labors and standards. Nations are more likely to affect from the trade and diplomatic relationships. Both China and Malaysia are among the most attractive locations in the world (Mayo, 1933). This rise boosted the international business and both formal and informal rules effect China as these rules must be obligated. It is a well-known fact that the political force is the most unsettled force that can impact the business of any industry (Hariman, 1995). Despite the fact that China is the largest market in Asia, certain political factors are more likely to affect the potential to support the proliferation and growth of foreign industries. Malaysia is a multiparty federal parliamentary monarchy, and it is increasingly focused on bringing capital and technology in order to support their local labor. New Malaysian government imposed a large tax on infant formula products. China and Malaysia have some trade issues which can affect their business and trade. In this regard, the United States and China have imposed certain taxes on imported products from each other. It is obvious that Biotech will establish its manufacturing plants in China as it has increased importation tax on the infant formula products in the recent time and these taxes may hinder the profit margin for Biotech. In order to avoid tax regimes, it is better to establish manufacturing plants in China.

Economic factors

Over the past few years, China has experienced a remarkable GDP and growth rate. It has potential urban growth, abundant and skilled labor as well. Due to the cheap labor cost, many brands and companies are boosting to establish their business in China. Biotech can hire cheap labor in China to increase their profit. It is obvious that the GDP rate is increasing in China, which adds more values to society. That's the reason behind the increase purchasing power of the consumer. However, Biotech should keep it in mind that the inflation, interest, and exchange rate of China can impact their business as well. The inflation rates in China tend to be dynamic, and interest rates are lower than most of the other countries in the Asian region. According to the decreased interest rate, people have money at their disposal for spending in China. It is a recognized fact that companies are willing to invest in countries where interest and growth rates are lowered. Despite the impressive growth rate, Biotech should keep in mind few potential trends that can significantly impact their business in China. In China, there are high property prices and high inflation rate, but there is a low-interest rate. Consequently, it is a preferable country for Biotech as it will attract more sales due to low-interest rates.

Social factors

The cultural and social aspect of China has a vital role as the demographics are changing consistently. Biotech should understand the fluctuation in the age distribution and population growth, which can modify both cultural and social values. Based on Geert Hofstede’s value dimensions, China is a collectivistic culture, and social factors that can impact a business in China include religion, education, lifestyles, family size, social behaviors, and immigration. Biotech is willing to enter in the Chinese market, so it should clearly consider these social factors due to their remarkable importance for the market segmentation (Fogel, 2010). There are more than 420 million internet users in China who often shop online. Regardless of a large amount of internet users, there is still a group who prefer physical shopping in order to dodge the risk related to online shopping. People are willing to spend on the infant formula products as health care has become a concern to many people. People concentrate on the health of their newborn babies due to which the economies and human income level are increasing in China. The above-mentioned trend proves that there is a real opportunity for infant formula products to excel in the Chinese market. China is a large market whose economy has been increasing in the last decade. To conclude the above discussion, it is obvious that China is a fast-growing market. Therefore, Biotech has a great opportunity to excel its business in that market.

Technological factors

There are some technological factors which are involved in the development of new products. Major technological factors include new products being developed, new production technology, and mobile telecommunications. Technology is an important factor in China which is driving the economy. Biotech works with technology as suggested by its name. Biotech develops infants’ formula products in unique designs and ways. The exclusive designs make Biotech’s products economical advantage in the market. In China, the economy is usually run by technological innovations and developments. People are willing to buy the products that result from modern technologies. China is home to some of the major technology companies in the world. Due to these factors, Biotech will need to portray itself as a high tech company. By doing so, people will tend to buy infant formula products from it, and Biotech just need to portray that its products are made from modern technologies.

Environmental factors

China is more concern about environmental protection than most of the countries. China is the second largest country regarding the emission of carbon dioxide in the environment. It is willing to reduce its overall carbon emission in the atmosphere. Biotech will have to introduce online shopping in China in order to avoid any environmental issue. Online shopping will increase the usage of an e-commerce website, which is often used in China. The country is well aware of the macro-environment, so Biotech must adhere to environmental protection laws.

Legal factors

Biotech Life and Health Products Inc. is likely to affect from the Labor laws as it enters in the Chinese market. Although, China does not have strict laws on employment, but it dictates minimum wages level for employees in different sectors. China's overall employment laws are not strict; therefore, Biotech has a great opportunity to enter in this country. Labor minimum wages are fixed, but these wages are relatively less than other countries, so Biotech will be able to gain maximum profit from China. The analysis of the legal factors show that Biotech should establish sales outlets and manufacturing units in China.

SWOT Analysis

In order to prosper the business, Biotech needs to understand its internal strengths and weakness. It will summarize the strengths, weakness, opportunities, and threats.

Strengths

Biotech is a global, family-owned American company which has built a strong and influential profile in the United States, Europe, and Brazil. Biotech has become a successful player in these regions. Its fame and status will help it to attract a large number of consumers in order to compete with local competitors in China (Hossain, et al., 2017). Biotech will use its innovativeness and professionalism to influence and convince more customers. Company's reputation in Europe and the United States is mainly attributable to these characteristics. Due to the rapidly developing economies in China, there is a great opportunity for Biotech to sustain in the Chinese market. Infant formula products offer complete nutrition. The infants, who are allergic to cow's milk or lactose, can frequently use soy protein-based formulas. Biotech contains high-quality infant formula products, which can definitely increase their demand in China. There has been an increase in consciousness of people regarding the health and nutrition of their infant. Due to the high tech products, Biotech can easily thrive its business.

Weaknesses

It’s obvious that Biotech is new in the Asian region. Therefore, it will need some aggressive strategies in order to compete with its competitors. There are many industries that have established their strong household in China, which will make it difficult for Biotech to establish itself. It is obvious that costumers will stick clearly to brands that they are familiar with and different people have different behavior towards infant formula products as the population in the target market are highly diversified (Shi, 2016). There is a diverse culture in China, so it is difficult for new entrants such as Biotech to effectively understand the Chinese market. Hence, it is a weakness for Biotech.

Opportunities

There are a lot of opportunities for Biotech Health and Life Products Inc. to establish itself in the Chinese market. These strong opportunities for Biotech are due to the ever-growing economies in this market. China has shown an abrupt growth in various sectors, which provide a ready market for manufactured services and goods. Biotech also has a great opportunity to flourish in China because of its long history of developing natural products which are exported to many Asian regions. Other competitors have mixed product profile in the Chinese market, while Biotech's profile shows its specialization in natural products. Above mentioned factors show that the company has an incredible chance to establish and flourish as an exclusively the brand developer. Additionally, the increase in income per person has given people the power to purchase different products regardless of any financial issue. It gives Biotech a chance to inaugurate itself as a modest provider of infant formula products.

Threats

It is significant to mention that the major threat for Biotech is to enter in the competition in the Chinese market. Biotech is a multinational company, which can be affected by the change in laws and politics of China. Changing political situation is always a real threat for multinational brands. If the diplomatic relations between the United States and China changes, then the market of Biotech may have to go through a critical crisis. In the past, China and the US have had stressful trade relations which are more likely to affect Biotech. In addition, having a long history of providing natural products is not worthy for Biotech in China as people are less likely to understand its profile. Many competitors in the market which could prove to be problematic for Biotech.

Porters Five Forces Analysis

The framework of Porter five forces is referred to as a significant tool to critically assess the feature of business competition. It is helpful to model for business entities to recognize the preventional competition prevails in the corporate world. Following are the major prospects of the porter five force analysis in the particular context of the organization of Biotech.

Competition in the Industry

It is worthy to observe that potential Asian market recognized as the growing business world having an immense form of opportunities for the new entrants. Many stakeholders in the market involve the infant products (Mathooko and Ogutu, 2015). China is one of the major business market which has the potential to grow by offering business paradigms to new companies. Referring to the growing domain of this market, it is essential to consider that the phenomenon of competition is high. The company needs to develop business strategies concerning the risk factor of competition in the market.

Potential of New Entrants

The market of China is ranked as a chief corporate region to offer business chances to the new business organizations. The company of Biotech needs to develop a comprehensive business plan to attain a strong position in the market. Products with natural ingredients are the new interest in the market of China, so many business corporations want to invest in this paradigm.

Power of Suppliers

A thorough analysis of the market of China indicates that there are many potential suppliers of the natural products which are relevant to the infant product industry. The company should focus on the alternative means of raw material and make the most suitable decisions.

Power of Customers

The power of customers can also never be ignored as it critically explains the potential demands of the products introduced by the company in the market. A keen analysis of the market of China shows that the buying power of customers is high. It is important for the company to target the major portion of the market.

The threat of Substitute Products

The threat of substitute products is relatively low as it seems difficult for customers to switch to other products when it comes to finding alternatives against natural commodities. Substitution of the infant formula product is not an easy task for the buyers.

Goals and Objectives

Biotech's business unit strategy should look to attain some critical goals according to the findings of PESTEL, SWOT, and the Five Forces analyses. Biotech should need to develop an aggressive marketing strategy before starting its venture (Serbin and Serbin, 2018). For this purpose, Biotech needs to create awareness among people regarding the importance of their infant formula products. Here, the main objective is to make sure that the market is well studied. In addition, a company needs a well-developed entering strategy in order to gain an initial competitive edge. An aggressive start will help Biotech to get a competitive edge. A company should need to maintain its sustainable approach in the Chinese market. By doing so, the company can retain a competitive advantage over the rivals. The objective behind this is to consolidate its market after entry. Moreover, business should need to meet the existing goals along with the demand and needs of the market. For this purpose, the company needs to provide pertinent information about the constituents that are used for making infant formula products. Social and internet media should be used as an effective strategy to create awareness among people so that they can understand their needs.

Competitive Analysis

The internal and external analysis provides an overview of the Chinese market situation and chances of Biotech to prosper. Data from the PESTEL analysis, SWOT analysis, and Porter's Five Forces analysis suggest that Biotech has a great opportunity to enter in the new market. China is a well-known market due to low-interest rate. Labor minimum wages are also less as compared to most of the countries which give Biotech an edge to prosper in China. The analysis proves that Biotech can establish itself as a worthy competitor in the Chinese market. Strong and increasing GDPs and growing purchasing parity of people show that it is a reasonable company to establish a new business. SWOT analysis shows that the strengths exceed the weaknesses which are an edge for Biotech. The political, social, environmental, economic, and technological factors can affect the industry, so Biotech need to design a customized and aggressive entry strategy. An effective strategy will help Biotech to maintain a strong position in the market as the buyer power is quite strong in the Chinese market.

References

Fayol, H. (1949). General and industrial management (C. Storrs, Trans.). London: Sir Isaac Pitman & Sons

Fogel, G. K. (2010). Business environment in China: Economic, political, and cultural factors. Lawrence Technological University.

Hariman, R. (1995, October). Political style: The artistry of power. University of Chicago Press.

Hossain, K. A., Zakaria, N. M. G., & Sarkar, M. A. R. (2017). SWOT Analysis of China Shipbuilding Industry by Third Eyes. Procedia engineering, 194, 241-246.

Mathooko, F. M., & Ogutu, M. (2015). Porter’s five competitive forces framework and other factors that influence the choice of response strategies adopted by public universities in Kenya. International Journal of Educational Management, 29(3), 334-354.

Mayo, E. (1933). Human problems of an industrial civilization. New York, NY: Macmillan.

Serbin, S., & Serbin, A. (2018). Bromic Heating Co business exposure project to the Chile market. Economics, Management and Sustainability, 3(1), 79-93.

Shi, X. (2016). The future of ASEAN energy mix: A SWOT analysis. Renewable and sustainable energy reviews, 53, 672-680.

Book Critique

Book Critique

[Name of the Writer]

[Name of the Institution]

Book Critique

Subject

The subject of book, “The Art of Social Media” by Guy Kawasaki and Peg Fitzpatrick affirms that effective use of social media to promote anything such as business is an art and it is a collection of skills. This book is a set of tips that can teach optimization and the benefits of integration of social media with a blog.

Creating platforms

The baseline of art of marketing is “adequate profile”. Art of start act as a predecessor of art of social media, inferring the "optimization of profile." It includes different features such as the use of images and biographies to URL. (Kelly Schuknech, 2016). Creating profile is more like an analysis of the "idea of crafting a mantra," adhering to few words that can act as a bio or the purpose of existence. Author demonstrated and inferred his mantra, "I empower people," highlighting an evidence that can act as a guide for others. (The Art of Social Media by Guy Kawasaki and Peg Fitzpatrick, et, al., 2014). 

Content

Guy and Peg brought into limelight a prime step, i.e., "content curation”, in contrast to content creation. It inferred that one should curate content. The book depict an in-depth analysis of system that can reach out to plan, find, create and calendar posts and material on social media. An important aspect to note is that the book acts as an instructor to the aggregation and curation services such as Feedly, Altop, Reddit and Buffer. “The art of social media” a tool to narrate groups and communities that can help to find out "what's new" such as Gooogle+ communities and LinkedIn Groups. (The Art of Social Media by Guy Kawasaki and Peg Fitzpatrick, et, al., 2014). 

Perfecting posts

In the third step, authors argued the major section of perfection, negating tradition and typical ways that were used to make social media posts perfect and more attractive , adhering to the use of, "content master" in an adequate way.

Commenting and socializing events

Authors addressed the central issue of "commenting and sharing” by arguing psychological stance of glass half full approach in the determination of benefit of socializing by using specific techniques such as sharing buttons on blog posts, using slide shares and pinning posts on Pinterest, starting an email list and adding hyperlinks. Authors inferred a unique strategy of socializing an event, including empowering live video chats on different apps and use of equipment such as event pages and trailers. (Kelly Schuknech, 2016). Using hash tags to support and energize sharing of posts and materials and twitter chats is another main idea given by authors, highlighting that twitter chats can speed up marketing.

Optimization of platforms

Authors highlight that platforms should be optimized in terms of social media platforms and content by using strategies such as Facebook insights and Facebook pages, Google+ to analyze posts, comments, and polls, using replies to attract audience and text formatting to make it more attractive. LinkedIn and Pinterest can be used to specify choices and categories along with descriptions to share pins with other social network platforms. (Lim, et, al. 2019).

Aim

The book aimed at the analysis of tricks, insights, and tips that can help readers to inculcate arts efficient enough to promote a business. The book is focused on “content curation," i.e., “finding and sharing other’s content:” as compared to the self-creation or imparting theoretical instance to an idea or a fact. It would not be wrong to say that the book aimed at a practical and detailed explanation of system of “manipulating and using social media” with certain concerns. The book aims at the provision of complete insight that is necessary to facilitate individual in becoming an efficient businessman by adhering and fulfilling all the desired requirements of innovation. It would not be wrong to say that "innovation" and "interactivity" are the catchwords of this book, taking into account that there are certain concepts that were only treated as a word of mouth rather than the practical implication of said initiatives.

Scope

The book has a diverse scope that infers future pathways of using social media taking into account certain examples that are given in the book. “The art of social media” act as a guide for students to incorporate their business goals in practice by using certain techniques and tips, an account regarding each tip and its applicability is also given. The book opens avenues of innovation and concreteness of goals by adhering the integration of blogs and social media. One can find a full-fledged guide that can guide an overwhelmed social media user to use social media as a competent tool to promote business. (Kelly Schuknech, 2016). Collection of 123 tips can be used by an individual to give positive enforcement to business and use of social media by negating the traditional and old tips of ensuring efficiency through words and understandings such as "swearing," moreover the incorporation of practical examples can guide a reader to adequate performance.

Thesis

“The art of social media” is a reflection of bottom-up strategy focusing ideas and tips that can be used to lay down the foundation of social media as optimization of the business profile as well as a source to attract more followers by integrating blogging and social media." Art of Social Media” is a hallmark of more than a hundred tips that can treat social media as business enforcement by using a bottom-up approach to attract people towards business brand and product.

Bias

An in-depth analysis infers that the book is concerned with highlighting the facts and figures that can impart and enhance productivity in business in an active way; however, the writing is biased in terms of traditional marketing practices. There is no actualization of practical implication of offline strategies, taking into account that online strategies can also be used in offline marketing actions. (Kawasaki, et, al. 2014). Too many options have bound the readers to the realms of "confusion," and all the options are confined to online practicality rather than doing something that can involve human efforts physically.

Main contentions

“The art of social media” is all about the analysis of effective use of media in order to promote a business for which the authors have presented several tips. Written by two authors, the book is a detailed account of the practical ideas, efficient enough to empower the experience of content marketing and social media. It would not be wrong to say that the authors argued the place of social media in marketing in contradiction with the traditional paradigms. (Kawasaki, et, al. 2014).  However, there are several arguments that are addressed such as, ‘privacy concerns” taking into account that there is a detailed account of analysis of facts and figure related to cybercrimes and bullying. Moreover, one can find an exegetical analysis of step by step procedures that are usually negated in terms of marketing, considering trends and styles as only aspect of attraction. Authors argued the use of apps and services that were only limited to entertainment and the analysis of the integration of services that can act as a tool to enhance marketing. The set pattern of social media use is negating taking into account a platform that can be business oriented.

Strengths

Major strengths of the book include realistic and detailed examples. Everything mentioned in the book is quite understandable and interactive, accompanied by motivation. Major Cyber concerns and catering to such problems is being mentioned by the authors. It is also important to note that the book highlights everything from using social media for casual purposes to the use of social media for marketing and business proceedings. There are more than a hundred tips that can guide an individual to undergo analysis and suitability of a particular option. It is also important to note that the aspect of “self-reflection” and “practical examples” has brought readers to a better understanding of reading. (Kelly Schuknech, 2016). Step by step analysis reveals a clear depiction of tips, how can such tactics be used to achieve the required goals. The use of pictures and illustrations added to the narration of the theory that can impact success and practicality.

Weaknesses

One of the major weaknesses of book is, "less feasibility of reading because of e-book version." Although a lot of effort has been made to let readers know the basics of online marketing, still too much versatility confuse readers regarding the choice of options. Side by side, the book is not a complete guide for people who are new to social media; however, this book enlists all the tips and tactics that can infer and empower someone who is already using social media for marketing purposes. (Kelly Schuknech, 2016). There are several topics that can be covered such as, "a recap for professionals and marketing aspirants," such as strategies that can act as a shield against barriers. It would be more effective if problems much like cyber concerns can be included from real life rather than a theoretical account of all happenings. As already mentioned, an account on the offline marketing strategies relevant to online marketing through social media can also be used because although online marketing is prevalent still, there are certain tradition-bound entities that believe in the implication of traditional procedure of marketing.

Survey

The addition of hyperlinks has eradicated the need for references, taking into account that all the illustrations are covered adequately. Side by side there is no index; instead, there is a list of apps and services that can be used to get a better understanding of a text. However there are certain topics that are not yet covered such as relevancy of online and offline marketing strategy, adequate implication of “specific suitable choices” as per professional classification.

References

Kawasaki, G., & Fitzpatrick, P. (2014). The art of social media: Power tips for power users. Penguin.

Lim, W. (2019). [Review] The Art Of Social Media | Young Upstarts. Youngupstarts.com. Retrieved from http://www.youngupstarts.com/2015/10/16/review-the-art-of-social-media-2/

The Art of Social Media by Guy Kawasaki and Peg Fitzpatrick, My Key Takeaways. (2015). Vickie Siculiano | Say WOW Marketing | Online Marketing Coach. Retrieved from http://saywowmarketing.com/070-book-review-art-social-media-guy-kawasaki-peg-fitzpatrick-key-takeaways/

The Art of Social Media by Guy Kawasaki and Peg Fitzpatrick. (2014). Live to Write-Write to Live. Retrieved, from https://nhwn.wordpress.com/2014/12/18/book-review-the-art-of-social-media-by-guy-kawasaki-and-peg-fitzpatrick/

The Art of Social Media by Guy Kawasaki and Peg Fitzpatrick. (2016). Kelly Schuknecht. Retrieved from, from https://kellyschuknecht.com/2016/04/20/book-review-the-art-of-social-media-by-guy-kawasaki-and-peg-fitzpatrick/

Book Critique

Book Critique

[Name of the Writer]

[Name of the Institution]

Book Critique

1. A brief description of the subject, aim, and scope of the book

Tim Brown, who is also a CEO of the IDEO explains the possible techniques and strategies based on the design that is required at each level of the business. The author of this book has chosen the subject of the book as the role of design in the way of developing and organizing the governments, companies, communities, and organizations (Brown, 2009). The subject of this book tries to sup[port the proposed thesis that design plays a very important role for not only design and creative industry, but it is equally significant for other existing industries. Moreover, the content of this book revolves around the subject of the significance of the change that can be created with the help of design.

This book aims to provide insight into the design and its role in flourishing the industries as well as a leading change in the different models of business. The book also aims to give a detailed note to the readers how they can use design as a leader for bringing the creative entity in their business. Businesses can use the design by utilizing design thinking for solving different problems with the help of creating multiple ideas and organizing the information in a creative way (Kimbell, 2011). This book aims to explain the importance of design and analytical thinking in leading the businesses, by practicing the creativity and change in the design of the structure.

The book is an interesting investigation of the subject matter, which covers the significance of design and creativity in any business or industry. In this way "change by design" is very successful in assessing and covering all the relevant aspects on the subject matter, with the help of different examples and case studies in the book. Moreover, the author has also quoted and related his own experiences in the creative industries, as Brown has been serving as a known design industrial. Hence, all these elements point at the successful scope of the subject on the basis of its relevance and practical examples.

2. An outline of its thesis and its bias

The argument of this book is based on the stance that design thinking and creativity is equally important for every industry despite the type of business they are doing. As to extend the way for success every business needs to put in more creativity along with analytical thinking so that they can serve the field of business with something innovative (Badke, Roozenburg, & Cardoso, 2010). Moreover, the theme of this book also includes seeking creativity for the innovative leaders so that design thinking can be included at every level of the industry, from product and service to the drive of bringing new and latest alternatives for the business and society.

In the way of providing support for the thesis the Change by Design addresses to the designers and industrialists. The book captures the significant difference between the major difference that exists between the existing and classical management thinking with that of the design and creative thinking (Westley, Goebey, & Robinson, 2017). By this, the author provides support to the bias that design thinking is more innovative than that of already existing conventional methods. Moreover, the book attempts to cover the important entities and elements that are required for the collaboration of industrial designer and the analyst. The book also highlights the framework of the design thinking by emphasizing the role of observational, experimentation and prototyping.

The author also emphasizes the value of the design thinking at every step and part of the methods existing in an organization (Kupp, Anderson, & Reckhenrich, 2017). The book also explains the basis for the development and utilization of design thinking and how this essential skill can be fostered in an industry. Furthermore, The book is split into two parts, the first explains the bias of importance and implementation of the design thinking. However, the second part explains how the implementation of design thinking is possible, and by which ways this skill can be adopted. In other words, the second part of the book takes a practical approach to provide a road map in the application of acquired knowledge.

3. A detailed assessment of the author's main contentions

The major contention by the author of this book includes that design thinking is very important for the developing world of business to bring innovation in the methods, skills, and services of the industry. In this way, the author disagrees with the already existing methods of management and provides the explanation and distinction of the major difference between being a designer and thinking like one (Bjögvinsson, Ehn, & Hillgren, 2012). The author provides arguments and logical answers for supporting the significance of design thinking, as he highlights the principle of design thinking with that of linear thinking so that the stress can be based on the application of design. The author, after emphasizing the importance, gives the processes through which the continuum of design thinking can be adopted, for example with the help of ideation, inspiration, and implementation (Gobble, 2014). To consider more explanation for the practice of this skill, the book covers constraints of innovation in more detail by covering viability, feasibility, and desirability. Leading the same applicability of the concepts, the author gives examples from his own life and experience.

To shed light on the aspect of author's contention, Brown has outlined everything in a very understandable way, as taking from the differentiation and then taking everything from basic concepts to the application the author has provided support to every argument with the help of storytelling which is easy to understand by every type of reader. To support his attempted contentions, Brown has also given examples of multiple case studies to describe the difference between linear thinking and design thinking in the way of creating a more practical chance for the incorporation of innovation. To assess the author’s contention, considering his examples, briefs, and supports for his proposed ideas, the author has performed a very great job. He had not merely stated his contentions but also has supported them with sound and logical reasoning.

4. An evaluation of the book's major strengths and weaknesses

As a piece of writing, regardless of the significance and creativity of the topic, Change by Designing also contain many strengths along with weaknesses. Considering the strengths of this book, the author was taking a very understandable and easy approach to a very complicated and important topic. The book also provides theoretical understandings as well as a practical approach for making the content of the book more significant and attractive. The book has also covered major techniques of the design thinking which makes it possible for the industrialists and readers to pave the way for practically adopt the process of design thinking in the organizations and industries. The insights of this book are clearly described by adapting the minds of readers into the process of design thinking. Furthermore, covering the case studies and examples in this book for explaining the concepts in more practical ways can also be considered among one of the strengths. On the contrast, along with the strengths of this book there are also some weaknesses that also needs to be highlighted. The book has covered a very important topic existing in the continuum of creativity for industries. However the author has provided so much stress on the advantages of design thinking, but linear thinking also important to an extent but the author has undermined the strengths of this process to prove design thinking more important. Giving account to this aspect, the book has provide emphasis to the creativity of design in the book continuously, by negating the significance of linear thinking along with the conventional management systems.

5. A survey of topics not yet covered (sources, illustrations, indexes, etc.)

Overall it can be said that the book was an important piece of writing, providing a detailed and practical approach to the topic. However, in the way of putting extra importance to the topic, the author has done a great job. He has given a detailed insight into every part of the book. The author, along with a theoretical and practical explanation, illustration and prototyping are also covered so that the emphasis on designing and innovation can be exemplified more practically.

The outline of the book is also able to cover the important elements of the book and can make it easy for the readers to choose it for their reading by merely looking at the table of content. However, along with the content, examples, and visuals of the design thinking, if the indexes, researches, and data were quoted in the book, it would have supported the thesis of the book. As the book does not contain any table, figures or research, which can tend to provide support for its use in industries and its success. Hence, to provide more solid emphasis on the importance of the concepts, the inclusion of researches done in this field could have proven helpful in this field. The researchers, surveys, and numerical data always provide high importance to the argument, thus considering the author' s great job if such data was added in the book, this piece would have served more significant in terms of the research on design thinking.

Refrences

Brown, T., & Katz, B. (2011). Change by design. Journal of product innovation management, 28(3), 381-383.

Westley, F., Goebey, S., & Robinson, K. (2017). Change lab/design lab for social innovation. Annual Review of Policy Design, 5(1), 1-20.

Brown, T. (2008). Design thinking. Harvard business review, 86(6), 84.

Kimbell, L. (2011). Rethinking design thinking: Part I. Design and Culture, 3(3), 285-306.

Brown, T. (2009). Change by design: How design thinking creates new alternatives for business and society. Collins Business.

Wynd, W. R., & Mager, J. (1989). The business and society course: Does it change student attitudes?. Journal of Business Ethics, 8(6), 487-491.

Badke-Schaub, P., Roozenburg, N., & Cardoso, C. (2010). Design thinking: a paradigm on its way from dilution to meaninglessness. In Proceedings of the 8th Design Thinking Research Symposium (DTRS8) (pp. 39-49). Sydney: DAB documents.

Bjögvinsson, E., Ehn, P., & Hillgren, P. A. (2012). Design things and design thinking: Contemporary participatory design challenges. Design Issues, 28(3), 101-116.

Gobble, M. M. (2014). Design thinking. Research-Technology Management, 57(3), 59-62.

Kupp, M., Anderson, J., & Reckhenrich, J. (2017). Why design thinking in business needs a rethink. MIT sloan management review, 59(1), 42.

Book Report: “Getting To Yes: Negotiating Agreement Without Giving In”

Name

Instructors’ Name

Course Title and Code

Date

Book Report: “Getting To Yes: Negotiating Agreement without Giving In”

Getting to Yes: Negotiating Agreement without Giving In is one of the best-selling nonfiction books which was published in the year 1981. The book was authored by Roger Fisher, William L. Ury, and Bruce Patton, who were the members of the “Harvard Negotiation Project.” The book introduced a new concept of principled negotiation, instead of positional bargaining, which changed the negotiation strategies of the business world. Getting to Yes may have been one of the most important books in the business field, which has highlighted that negotiations should work in the favor of both parties and should not only be done on the basis of compromise.

One of the most important issue with positional bargaining is that both of the parties try to get their purpose served, without caring about the consequences and impacts of the negotiation on the other party. An important reason it does not work is that the parties become rigid about their stance and requirement, ignoring the margin of resolution of the matter. The authors have described in their book,

When negotiators bargain over positions, they tend to lock themselves into those positions. The more you clarify your position and defend it against attack, the more committed you become to it. The more you try to convince the other side of the impossibility of changing your opening position, the more difficult it becomes to do so (Fisher, Ury, and Patton, 7).

The example of positional bargaining from the book is the case of shop owner and customer, negotiating the deal of a brass dish. The customer wants to buy it at the minimum price, while the shop owner wants to sell it at the maximum price. Both parties want to make a deal; however, their strong positions hinder their ability to reach some common point.

Principled negotiation is the concept which is based on, as well as emphases the interest of the involved parties. It also greatly stresses conflict management and resolution. The very first point of principled negotiation is separating people from the problem under negotiation. The second point is focusing on the interest of the negotiating parties and not on their positions. The third point is that the negotiating parties should generate ideas and invent new option to ensure a mutual gain. The last point of principled negotiation is that the outcome should be based on objective criteria and not on the position or stance of the negotiators (Fisher, Ury, and Patton, 42).

The book has mentioned that basic human needs are the most powerful interests. If the agreement or the negotiation can ensure or increase the economic prosperity, security, sense of control and belonging, as well as recognition of the involved parties then it is a commendable deal.

The authors of the book coined the term BATNA, which means “Best Alternative to Negotiated Agreement.” The authors have explained that the composition of negotiating skills and strategies is called BATNA. It is quite important to know the BATNAs when at the negotiating table, because it can help the people know that they are agreeing on an equal deal and the negotiator is not making them agree on a position which will secretly increase his leverage (Fisher, Ury, and Patton, 50).

One of the most common tricky tactic explained by the authors of the book is deliberate deception by the use of phony facts. One party may represent a defective product as the most efficient one. The strategy of separating the problem from the person can be utilized to have a background check about the facts, before finalizing the negotiations. Another common tricky tactic is the use of psychological warfare, through personal attacks. One party may attack the confidence and clarity of mind of the other party by commenting on appearance and not maintaining an appropriate and ensuring eye contact. The strategy to overcome this is to focus on interest and not the position, by not letting the other party ruin the mood of the negotiation and presenting the point firmly (Carnevale, 2).

The most recent international negotiation is between the United States of America and China. The president of the U.S., who is not in favor of the import of Chinese products in the country, has finally ordered Google to stop selling its services to Chinese mobile company Huawei. The American side used the tactic of psychological warfare of arranging a meeting with the Chinese representative and cancelling it at the last moment. The Chinese party utilized the positional pressure tactic of extreme demands by raising the tax amount on U.S. imported goods.

In case of being provided with the opportunity to get significantly more than what is fair, one should not take it, in order to ensure the equality of both parties. One should negotiate in the case the other party is showing the interest, as well as making an effort to finalize the deal. On the other hand, one should not negotiate if the other party is using dirty tactics to increase its personal gains while ignoring one's perspective (Brett, 218). The book is quite knowledgeable and impressive and the specific part of the utilization of dirty tactics makes sense to me. Moreover, there is no part which specifically seems flawed to me.

The most important thing which I learned from the book is principled negotiation and its points. Moreover, the BATNAs and common tricky tactics are quite informative as well. I see myself using the techniques in professional life by specifically focusing on separating people from the problem and not getting influenced by the dirty tactics. I would surely recommend the book to others, so they can learn about BATNAs, common dirty tricks and principles of negotiation to make their deals by negotiation and not by compromising.

Works Cited

Brett, Jeanne M. Negotiating Globally: How to Negotiate Deals, Resolve Disputes, and Make Decisions Across Cultural Boundaries. John Wiley & Sons, 2012.

Carnevale, Peter J. "Strategic time in negotiation." Current opinion in psychology (2019).

Fisher, Roger, William L. Ury, and Bruce Patton. Getting to yes: Negotiating agreement without giving in. Penguin, 2011.

Book Review: Payoff The Hidden Logic That Shapes Our Motivations By Dan Ariely

Book Review

Martin Gutierrez

[Institutional Affiliation(s)]

Author Note

Book Review

This book successfully unravels the intricate and complex construct of human motivation which is the experience of desire or aversion. Motivation has simultaneously an objective and a subjective side and this book deeply scrutinizes each of these. One of the torch-bearers and pioneers of cognitive psychology, Dan Ariely is a best-selling authors and his other works have also managed to establish a conspicuous position in the fields of business and management. This book encompasses all the important elements of human motivation and the processes with which it impacts an individual in the pursuit of his daily goals. Eternity, social connections, meaning, and the right creation are some of the elements of motivation which the author has discussed in this book. With meticulous detail and care, the author has shed light on every element, convincing the reader about the powerful abilities of motivation as a subjective and objective emotion.

Firstly, the author has deconstructed the concept of ‘meaning’ acting as pre-cursor behind most of our actions. The effects of connections and meaning take a leap beyond the conventional wisdom, thus motivating us beyond our social circle. Even if a small ‘why’ surfaces up behind any one action of an individual, the completion of that particular action becomes easier and fathomable. The initial chapters have provided the best depiction for proving this. The attitude of janitors in the hospitals is central for understanding this element behind motivation. A major group of those janitors may find their job requirements to be inferior from their status and a lot of times, they have been seen complaining about the arduous and torturous nature of their job. On the other hand, some janitors do not think on these lines, rather they find their service as a contribution towards the well-being of the mankind. The latter group of janitors found a meaning in their job which pushes them further and is a manifestation of motivation. Attempting to psychologically reframe the current actions and viewing them in a holistic image helps to find meaning. On the contrary, destroying someone’s motivation is extremely easy. Displaying ignorance towards other people’s efforts or rejecting their hard work can easily bring a decline in the level of motivation that people have.

Humans are largely egocentric by nature. The level of effort than an individual puts into a task is directly corresponding the increasing sense of identity being cast into that process. Resultantly, more joy is gain when the aims or objectives of a particular task are accomplished. Similarly, if any organization proffers valuable opportunities and chances for connections and meanings to its employees, there is an increasing likelihood that its employees will strive harder and put in more efforts to accomplish the collective goals of the organization.

This book does a pretty impressive job in its documentation of unique and interesting aspects of human motivation. In a short book, the author has managed to break down the idea of this poignant abstraction and led many people, specifically managers in various organizations to closely reflect on the dynamics of human productivity and the motivating factors behind it. An individual’s intrinsic need of recognition and validation are also analyzed in this book and the verdict about this need is affirmative. The author establishes that if this need is not satisfied, it can have adverse effects on the productivity and progress of an individual. This can also be proven by many studies where by organizational and employee feedback offers various chances of improvement and provides subsequent opportunities.

There are four main chapters of this book, revolving around different stories in an attempt to shed light on various aspects of motivation. All the stories and their results are based on actual research which increases the credibility of this book. Although the main theme of this book is basic in nature and many people are mostly aware of the drivers that motivate them to do what they do in a routine life, yet the deployment of various interesting stories in this book engages the attention of the readers and provides a lot of insight. This book is an investigation into the true nature of motivation. Additionally it also indicates towards our partial and /or complete blindness and ignorance to the way it works, and looks for solutions in the pursuit of bridging this gap. Effective incorporation of studies that range from Intel to a kindergarten classroom the author, Dan Ariely digs deeper and deeper to find the root causes of human motivation. The dynamics of motivation influencing every single action of an individual are also analyzed in the book. The author has not only stated the processes but he has also reinstated various blueprints that how individuals and groups use this knowledge to approach and evaluate important choices in our own lives. In his meticulously detailed overview of motivation, Ariely propagates that it is time to recognize the payoff that is confirmed when we stop thinking in terms of trade-offs.

In one of the chapters of the book, Dan Ariely stipulates that more than fifty percent of employees in various organizations are disengaged CITATION Dan16 \l 1033 (Ariely, 2016). Besides this, he notes that more than seventeen percent of the employees are actively disengaged from the overall goals of their organization. There are many reasons for the disengagement of employees in an organization, for instance, lack of recognition, excessive workload, poor leadership, poor management, and lack of training. One thing can be noted while reflecting upon these reasons which is that all these reasons can be traced back to a sheer lack of motivation. The question arises that how can employers reverse this perturbing trend of increasing disengagement among employees. An associated query with this question searches realistic solutions so that employers can fully ensure that their employees are motivated to give their best performance. The employers chiefly want that instead of going with the flow, their employees should be actively engaged and associated with the collective goals of the organization. Traditionally, these questions can be answered with one simple word: money. Financial incentives are key to increasing the workplace performance of many individuals as has been established many studies. If any individual is asked about the top reason behind his productivity, the answer will undoubtedly signify the financial incentives. The author of this book, Ariely agrees and affirms the central role played by money and purchasing power, yet he signifies that money is only one of a multitude of factors that trigger human motivation. Various achievements, increased levels of happiness, meaningful purpose, a sense of progress, relationships with your colleagues, concerns about your legacy, pride, even the number of young children at home will all play a part in one’s motivation. The main focus of this book are the ways and techniques which boost up the motivation levels of individual employees in a workplace. Moreover the author also delineates that it is very easy to kill the level of motivation in an individual.

The best attribute of this book is that the contents are not repetitive or long to read and one can easily finish it in one sitting. Ariely gracefully condenses the seminal thoughts of his TED talk in this book and provides the readers a different view on the dynamics behind motivation. According to the author, money is a poor motivator and in some instances, it has alo proved to be demotivating. In controlled laboratory experiments, Ariely proves his exegesis at the concluding, slightly under-developed chapters of this book.

Most often, the books of social psychology and behavioral economics deploy a proximate perspective and so has been the case of the in-depth analysis of this book. Various things instilling different feelings in humans, our likings and disliking, and the way our motivation work are the main thematic areas entailed in this book. Consequently, the holistic picture is missed by the author as he draws some misleading implications about the topic. It is an obvious matter of fact that people are chiefly passionate about those prospects and horizons that are highly valued by the society. Similarly it is also a fact that people are demotivated when their efforts and hard work go unnoticed. These implications should only pose as a shock or surprise if we start to believe in a pre-defined assumption that the correlation between level of motivation and the corresponding passion is perfectly optimized. People devoting almost half of their lives in playing chess or spending a significant portion of their lives in laboratories marveling on the innovative powers of science are also some examples behind which motivation is playing the key role. The inspiration behind collecting the largest number of postal stamps or reading the most number of books in a given year are also triggered by motivation. These are some of the thought provoking precedents of human experiences, especially when they are seen from an evolutionary frame of reference. The focus of the author in this book is particularly on the productivity of employees in an organization and the level of motivation behind it, therefore he has not been able to draw a broader picture about motivation.

Summing up, it can be said that the book is a concise and short read with highly informative and interesting observations. Upon reflection, the readers be able to think about motivation in a counterintuitive manner.

References

BIBLIOGRAPHY Ariely, D. (2016). Payoff: The Hidden Logic That Shapes Our Motivations. TED Books.

Branding Strategy

Branding Strategy

Your name

Affiliation

This article states six branding strategies that should not be ignored by the chief marketing officers. Branding of a product is the keystone in its progress. The new technologies used by social media, young generation or second screening, have made things challenging for the brands to think innovatively. The first branding strategy stated in the article is to provide such engagements to the consumers that others do not and to provide innovative and creative ideas for engaging the brand with the consumers. It's a fact about human nature that they like change, hence branding companies should refresh their strategies every year and be less predictable. The second strategy is to establish an identity that is easy to relate (Llopis, 2014). For grabbing the attention of the consumers, many brands complicate their unique value of proposition which frustrates their consumers and shareholders. The brand identity is powerful when it is always changing but in a relatable and straightforward manner. The third strategy is to provide a lifestyle platform that inspires people and communicates hope. Consumers expect that the message that is being conveyed by the brands should be inspirational and educational. The fourth strategy is to innovate with flawless timing and execution continuously. The significant point here is to provide innovative products at the right time. The brand should synchronize its launching of innovative products with the demands of the customers. The fifth branding strategy is to establish the true spirit of giving. It is a responsibility of the branding company to pay their gratitude and thankfulness to their customers. Through this approach, they will be able to gain the loyalty of the customers and a better place in the market. The sixth branding strategy is to serve in such a great way that it leaves a legacy behind. To make a legacy the branding company should be accountable and responsible for achieving the requirements of the customers. All these brand strategies are equally important for the sustainability and for gaining the ultimate satisfaction of the customers (Doyle, 2001).

References

Doyle, P. (2001). Building value-based branding strategies. Journal of strategic marketing, 9(4), 255-268.

Llopis, G. (2014, March 11). 6 Brand Strategies Most CMOs Fail To Execute. Forbes.

‌

Bringing NBA To Kansas City

NBA for Kansas City

Name of Student

Institutional Affiliations

EXECUTIVE SUMMARY

This report is about a sports equipment company in Kansas City which will sell sports equipment and clothing. The majority of revenue will be used in the efforts to make sure that there is an NBA team representing Kansas. A four membered management team will be chosen with accounting, marketing, human resource, communication expertise. Further hiring will be done to make sure that there are some members directly from the playing field. The major focus will be on the NBA but our company will promote all the sports played across the country. Market skimming strategy will be used to gather more and more revenue for the company. Social and electronic media will be used as primary source of advertisement.

BACKGROUND

The company is involved in the business of making sports wear and has been in the business for the last two decades. It chose to operate in the Kansas City because it comprises of two states at the same time. The city is the biggest in Missouri state and has many other major sports activities taking place at different places. The major services offered by company include the gymnasium for various players and officials along with trainers who suggest different diet plans for players. The vision of the company is to promote all sports in the Kansas City specially to bring an NBA team to the city. The mission will be to properly guide every person interested in any sport in terms of fitness and training. The company will also sponsor teams from Kansas City which will take part in major tournaments in any part of the country. The major goal of the company will be to train and prepare a team which can represent the Kansas City in the NBA over a period of time. The second goal of company is to give prominent names to the USA in the field of every sports. The last goal is to attract experienced people to the management who can communicate to the NBA management in a better way.

MANAGEMENT

The company will take people who have worked for the other companies or are still working with them CITATION MAC18 \l 1033 (Camilleri, 2018). We will offer a competitive salary package to the management team. The main responsibility of the management team will be to organize the resources to manufacture the various sports equipment. The second responsibility of the management team will be to hire the best trainers for the physical and sports training of the sportsmen. There will be 4 people in the management team. There will be an accounting and finance specialist who will prepare the annual financial statements of the company. This person will have 5-8 years of relevant experience in his field. There will be one communication specialist who will be responsible for communicating to the NBA management in order to make sure that they listen to our part of the talk and give us a serious consideration of taking part in the NBA. This person will have at least 5 years of experience in the relevant field. One person will be responsible to hire the trainers and other relevant staff members for our company. He will have at least 7 years of experience in the relevant field. The last person will be responsible to make the marketing plan of the company which will include definition of all the 4 p’s for our products. Due to the critical nature of this job, this person will be having at least 10 years of relevant experience. We will offer a market package of salary and benefits to all the members of management team.

The strength of the management team is the experience that it has and the clear direction that is provided to it by the mission and vision. The weakness of the management team is that it will have to work with a limited amount of resources. With a long-term experience in their fields, these persons will not be used to working with a limited budget at hand. Another weakness of this team is that there is no professional sportsman as its member. The team will find further members by giving print advertisements in the local newspapers. Preferably, the next member of the team will be some sports person.

31718241308100030384752070100022288502260600064770012128500CEO

(Communication Specialist) (HR Specialist) (Marketing Specialist) Accounting and Finance

MARKETING STRATEGY

The population of Kansas City is approximately 500 000. We will target around 10000 people who are young and are interested in training for sports. The dollar amount of this target market will be $ 90000.

In which Geographical area will the company’s sales be concentrated (Kansas City, Missouri)

Customers will purchase our products or services because they also want to be a part of the big sport teams. The training services will be open for all people residing in the city but sportsmen will be preferred over all others. Our products and services will be carefully targeted so people will buy them according to their needs CITATION Maj11 \l 1033 (Seric & Gil-Saura, 2011).

The customers will get physically fit by using our services. A major part of our revenues will be used towards initiation of dialogue with the NBA to enter our team in the competition. This will benefit the players and their families. People from our training floor will also take part in other competitions all around the country. The overall target market will benefit from these events.

Pricing

The company will charge a higher price of its products and services. We will skim the market to capture the top paying clients in the star CITATION Ste15 \l 1033 (Liozu, 2015)t. The higher prices will be accompanied by a higher level of service provided to the clients a commitment towards participation in the biggest leagues of all sports. With the passage of time, the prices will be lowered to match the competitors. The prices will be set by adding a certain percentage of mark up to the cost of purchasing CITATION Ger86 \l 1033 (G.Tellis, 1986). This may show that the profit margin will be very high but the ultimate goal is to create a team for the NBA.

Promotion

There are many ways to promote our products. The primary way is to use the social media and company website to offer the products to our target market CITATION Par16 \l 1033 (Deshwal, 2016). There will also be a physical store from where we will sell our products and a neighborhood training floor. All the promotional materials and campaigns will have the ultimate aim of NBA presence written on it. The logo of the company will read “DREAM” so that all customers know what we are trying to achieve. The marketing person in our management will seek sponsorships in various big events taking place in the states which are nearby to us. We will offer free training sessions and sports equipment to various teams. There will be an offer made by our company for free training and equipment for sportsmen from Kansas City who get selected for any national level sports. The city has an indoor facility which can host the NBA matches, our company will try and take its rights for a certain period of time. This will make sure that we can practice and pick raw talent from the emerging population of the city. Television advertisements will also be prepared so that more and more people become aware of our products and services.

References

BIBLIOGRAPHY Camilleri, M. (2018). Integrated Marketing Communications. In M. Camilleri, Travel Marketing,Tourism Economics and the airline product,Tourism, hospitality and Event Management (pp. 85-103). Springer International Publishing.

Deshwal, P. (2016). Online Advertising and its impact on Consumer Behavior. International Journal of Applied Research, 200-204.

G.Tellis, G. (1986). Beyond the Many Faces of Price: An Integration of Pricing Strategies. Journal of Marketing.

Liozu, S. M. (2015). The pricing Journey: The organizational transformation toward Pricing Excellence. Stanford University Press.

Seric, M., & Gil-Saura, I. (2011). Integrated marketing communications and information and communication technology in the hotel sector: An analysis of their use and development in Dalmatian first-class and luxury hotels. Journal of Retail and Leisure Property, 401-414.

Brown Eyes/blue Eyes

Monsef Khamlichi

Enter the name of Instructor

Business and Management

September 5th, 2019.

Brown eyes/ Blue eyes

Throughout history, discrimination has remained a problem in societal and organizational well- being. In today’s world, many new trends are playing crucial roles in success of individuals, organizations and societies, therefore, the organizational hierarchies have started understanding the severity of the negative effects of discrimination. Discrimination not only distort a person’s mental health, rather it badly impacts his or her physical well- being also. At the workplaces, many people consider that the negative impacts of discrimination cannot impact the performance of other employees, however, facts suggest otherwise. Other people who share similar characteristics as the victim will start creating space for feelings like discrimination, hate, suppression and stress in themselves, which in any way will replicate on their performances. These negative emotions are much contagious as they result in spreading negative vibes among employees. The effect of discrimination develops the space for bad feelings which consequently reduce communication among employees, reduce teamwork and annihilates the focus and creativity of the people working for same organization. In order to avoid the potential problems emanating from discrimination education for all employees, encouragement and quick response toward such complains can soothe the negative results emanating from discrimination.

The concepts of the informational and decisional role remain pertinent in creating a case against discrimination. For example, the managers working at different organizations gather information relevant to anti-discriminatory practices to create an incomparable environment in their organizations. Such information is normally collected by analyzing the social media, news media and print media, as they remain the largest medium for disseminating the anti-discriminatory mechanisms. The managers then transmit the latest practices among the employees to reinforce a positive environment which resultantly benefits the organization in many ways. The decisional roles on other hand require making choices. For example, Mintzberg has authored four areas in which a manager requires making choices for adopting anti-discriminatory choices ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"nBlBMSKw","properties":{"formattedCitation":"(Robbins et al. 8)","plainCitation":"(Robbins et al. 8)","noteIndex":0},"citationItems":[{"id":53,"uris":["http://zotero.org/users/local/s8f0QVnP/items/9BFUVENR"],"uri":["http://zotero.org/users/local/s8f0QVnP/items/9BFUVENR"],"itemData":{"id":53,"type":"book","title":"Organizational Behaviour by Pearson 18e","publisher":"Pearson Education India","ISBN":"93-5343-831-4","author":[{"family":"Robbins","given":"Stephen P."},{"family":"Judge","given":"Timothy A."},{"family":"Vohra","given":"Neharika"}]},"locator":"8","label":"page"}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Robbins et al. 8). Being an entrepreneur, the managers’ search for new projects, as handlers they take corrective measures, as resource allocators they allocate best persons at the task and finally as a negotiator they bargain issues among different units.

Works Cited:

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Robbins, Stephen P., et al. Organizational Behaviour by Pearson 18e. Pearson Education India.

BSBFIM501-Assessment-Task-1

Plan financial management approaches

Submission details

Candidate’s name

Jasvir Kaur Mander

Phone no.

Assessor’s name

Phone no.

Assessment site

Assessment date/s

Time/s

The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

The candidate will demonstrate the ability to plan financial management approaches.

Assessment description

In response to the scenario provided, you will clarify budget plans with your manager and negotiate changes to the budget. You will then identify and analyse a risk to the budget and prepare a contingency plan to prevent or minimise the risk.

Procedure

Read the scenario provided in Appendix 1 to this assessment task and tasks A and B.

Prepare to meet with your manager (assessor) to clarify budget and negotiate changes:

identify areas of the budget that are not achievable, inaccurate or unclear

prepare to negotiate necessary changes to the budget

set up a time with your manager to meet.

Meet with your manager (assessor) to clarify budget and negotiate changes:

identify at least two issues for clarification

negotiate at least two changes

include discussion of basic accounting principles

refer to relevant legislation and ATO requirements

refer to principles and techniques of managing budget items

take and keep notes of agreed changes.

Use the template provided in Appendix 3 to this assessment task to prepare a contingency plan document for persistent risks after budget changes

Submit all documents required in the specifications below to your assessor. Ensure you keep a copy of all work submitted for your records.

Specifications

You must:

meet with your assessor to clarify budget and negotiate changes

provide a contingency plan

submit your notes.

Your assessor will be looking for:

numeracy skills to read and understand a budget and negotiate budget re-allocations

knowledge of basic accounting principles to identify and use account balances

knowledge organisational requirements related to financial management such as contained in organisational policies and procedures

knowledge of principles and techniques involved in budgeting.

Adjustment for distance-based learners

No variation of the task is required.

Documentation can be submitted electronically or posted in the mail.

Appendix 1 –Scenario

Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles which it sells to retailers in the domestic Australian market.

The senior management structure of the company appears below.

Person

Position

Michelle Yeo

Chief Executive Officer (CEO)

Tom Copeland

Managing Director

John Black

Chief Financial Officer (CFO)

Stuart LaRoux

Operations General Manager

Pat Roberts

Senior Accountant

Sam Gellar

Sales General Manager

Charles Pierce

Production Manager

Holly Burke

HR Manager

According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000. The chief risks to this goal are:

poor sales due to economic downturn

increases in expenses such as wage expenses.

In addition to Australian operations, the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product.

Role

You are the manager of Sales Centre A, based in Adelaide. The centre has achieved great success over the last year and consistently outsells other sales centres. In fact, due to the large number of accounts managed by your sales team and larger staff, your centre is expected to sell as much volume as the other two sales centres put together. Naturally, you expect cost allocations to reflect the both the needs and importance to the business of Cost Centre A.

Task A

The Sales General Manager, Sam Gellar, has asked you to review the master budget and cost centre budgets prepared by the Senior Accountant. She would like you to meet with her to discuss the whether the budget projections are achievable, accurate, understandable and fair.

She would like you to look closely at the budget for your cost centre, note any changes you think are necessary, develop an argument for the changes and negotiate those changes with her.

Information you are aware of includes:

Sales in the first quarter (Q1), third quarter (Q3), and the fourth quarter (Q4) are generally 30% less than the second quarter (Q2).

Sales in Q2 depend on completion of 90% of repair and maintenance.

Sales for Q2 have been estimated to be $1,000,000.

Commission negotiated with members of the sales team is now at 2.5%.

Task B

It has come to the attention of the Managing Director, Tom Copeland, that due to the current economic climate, sales volume may be 20% below target this financial year. Tom is worried that this may severely impact profit projections. The company can accept as much as a 10% variance in profit projections; however, more than this could severely affect the company’s ability to pay obligations and invest. Reliable data to determine whether the risk has eventuated should be available by mid Q2, when sales data for the company’s product are in.

As a special project, the Managing Director has asked you to perform a risk assessment and develop a contingency plan to manage the risk of sales falling 20%.

As per organisational policy you should use the contingency plan template provided.

Appendix 2 – Budgeting and finance policy

Budget preparations

The business plan will set the key parameters for all financial budgeting.

Variations to the business plan must be approved by the CEO and senior management strategic committee.

Prior period results are to be analysed to identify the profit level of cost centres, identify correlations between financial statistics and to set key performance indicators and benchmarks for future budgets.

The budget planning committee will meet prior to budgets being developed and agree on budget parameters. The committee will consist of all department managers plus the CEO and CFO.

A CAPEX budget will be developed from the approved business plan.

A detailed sales budget must be completed before completing the profit budget for the year.

A cash flow budget covering the first three months will be prepared after the profit budget is completed.

A master budget including profit projections will be completed from which cost centre allocations will be made.

Budget notes that contain all the assumptions used in the budgets should accompany the master budget or be made available as a separate document. Where possible, the notes should justify the basis on which the estimates were made.

Overheads (non-direct expenses) will be apportioned across the cost centres equally. Exceptions need to be negotiated with relevant authorities.

All expenses and income will be spread equally throughout the year unless otherwise required by business needs or business environment.

The financial cycle for budgeting purposes will be yearly ending 30 June.

Financial delegations

Each manager is responsible for achieving the revenue budgets agreed to by the budget committee.

Each manager is responsible to approve, by signing the necessary paperwork, all expenditures that fall within their area of responsibility.

Expenditures must be within the budget guidelines for the individual departments.

Format for budgets and reports

All budgets must include the following details:

name of the person who prepared it

cost centre (if applicable)

name of the budget/report, i.e. sales, expenses, CAPEX, cash flow, budget variation report

period of the budget.

Appendix 3 – Budgets and templates

Master budget with profit projections

Big Red Bicycle Pty Ltd

Master Budget FY 2011/2012

FY

Q1

Q2

Q3

Q4

REVENUE

Commissions (2% sales)

60,000

15,000

15,000

15,000

15,000

Direct wages fixed

200,000

50,000

50,000

50,000

50,000

Sales

3,000,000

750,000

750,000

750,000

750,000

Cost of Goods Sold

400,000

100,000

100,000

100,000

100,000

Gross Profit

2,340,000

585,000

585,000

585,000

585,000

EXPENSES

General & Administrative Expenses

Accounting fees

20,000

5,000

5,000

5,000

5,000

Legal fees

5,000

1,250

1,250

1,250

1,250

Bank charges

600

150

150

150

150

Office supplies

5,000

1,250

1,250

1,250

1,250

Postage & printing

400

100

100

100

100

Dues & subscriptions

500

125

125

125

125

Telephone

10,000

2,500

2,500

2,500

2,500

Repairs & maintenance

50,000

12,500

12,500

12,500

12,500

Payroll tax

25,000

6,250

6,250

6,250

6,250

Marketing Expenses

Advertising

200,000

50,000

50,000

50,000

50,000

Employment Expenses

Superannuation

45,000

11,250

11,250

11,250

11,250

Wages & salaries

500,000

125,000

125,000

125,000

125,000

Staff amenities

20,000

5,000

5,000

5,000

5,000

Occupancy Costs

Electricity

40,000

10,000

10,000

10,000

10,000

Insurance

100,000

25,000

25,000

25,000

25,000

Rates

100,000

25,000

25,000

25,000

25,000

Rent

200,000

50,000

50,000

50,000

50,000

Water

30,000

7,500

7,500

7,500

7,500

Waste removal

50,000

12,500

12,500

12,500

12,500

TOTAL EXPENSES

1,401,500

350,375

350,375

350,375

350,375

NET PROFIT (BEFORE INTEREST & TAX)

938,500

234,625

234,625

234,625

234,625

Income Tax Expense (25%Net)

234,625

58,656

58,656

58,656

58,656

NET PROFIT AFTER TAX

703,875

175,969

175,969

175,969

175,969

Sales cost centre expense budget

Sales Centre A

Sales Centre B

Sales Centre C

Commissions

$20,000

$20,000

$20,000

Wages

$100,000

$100,000

$100,000

Telephone

$3,000

$3,000

$3,000

Office supplies

$1,000

$1,000

$1,000

Contingency plan template

Contingency Plan

Company name: Big Red Bicycle Pty Ltd

Person developing the plan:

Name:Position:

Risk identified:

Strategies/activities to minimise the risk

By when

By whom

Task A

The budget proposal sent by me has a few mistakes I would like to clear up based on the information provided to me. I am aware of the facts that:

Sales in the first quarter (Q1), third quarter (Q3), and the fourth quarter (Q4) are generally 30% less than the second quarter (Q2).

Sales in Q2 depend on completion of 90% of repair and maintenance.

Sales for Q2 have been estimated to be $1,000,000.

Commission negotiated with members of the sales team is now at 2.5%.

The corrections to be made in the budget include,

Correction#1:

On the budget, it is mentioned that the sales for Q1, Q2, Q3 and Q4 are $750,000. According to the information, this needs to be changed. The sales from Q2 must be $1,000,000 and sales for Q1, Q3 and Q4 is generally to 30% of the sales made in Q2. This makes the sales required for Q1, Q3 and Q4 to be $700,000. These changes are essential and must be made as they would produce changes to the entire budget.

Correction#2:

The changes to be made in the sales (mentioned above) would also require changes in the commission given to the members of the sales team which has already been negotiated at about 2.5%. With respect to the Q1, Q3 and Q4, the members of the sales team would have to be paid about $7,500 with respect to the 2.5% of $300,000. Similarly for Q2, the amount to be paid to the members of the sales team would be $25,000 with respect to 2.5% of $1,000,000 sales made in Q2.

Correction#3:

The expenses for the telephone have been calculated for all the sales centers combined to be $3,000 while mentioned in the master budget is $2,500. This must be changed to $3,000 for the budget to be on par with the expenses of the sales centers.

The changed budget would come out to be,

Changes Prepared By: Jasvir Kaur Mander Position: Manager – Service Centre A

Big Red Bicycle Pty Ltd

Master Budget FY 2011/2012

FY

Q1

Q2

Q3

Q4

REVENUE

Commissions (2.5% sales)

77,500

17,500

25,000

17,500

17,500

Direct wages fixed

300,000

75,000

75,000

75,000

75,000

Sales

3,100,000

700,000

1,000,000

700,000

700,000

Cost of Goods Sold

400,000

100,000

100,000

100,000

100,000

Gross Profit

2,322,500

507,500

800,000

507,500

507,500

EXPENSES

General & Administrative Expenses

Accounting fees

20,000

5,000

5,000

5,000

5,000

Legal fees

5,000

1,250

1,250

1,250

1,250

Bank charges

600

150

150

150

150

Office supplies

3,000

750

750

750

750

Postage & printing

400

100

100

100

100

Dues & subscriptions

500

125

125

125

125

Telephone

9,000

2,250

2,250

2,250

2,250

Repairs & maintenance

50,000

12,500

12,500

12,500

12,500

Payroll tax

16,500

4,125

4,125

4,125

4,125

Marketing Expenses

Advertising

200,000

50,000

50,000

50,000

50,000

Employment Expenses

Superannuation

45,000

11,250

11,250

11,250

11,250

Wages & salaries

500,000

125,000

125,000

125,000

125,000

Staff amenities

20,000

5,000

5,000

5,000

5,000

Occupancy Costs

Electricity

40,000

10,000

10,000

10,000

10,000

Insurance

100,000

25,000

25,000

25,000

25,000

Rates

100,000

25,000

25,000

25,000

25,000

Rent

200,000

50,000

50,000

50,000

50,000

Water

30,000

7,500

7,500

7,500

7,500

Waste removal

50,000

12,500

12,500

12,500

12,500

TOTAL EXPENSES

1,390,000

347,500

347,500

347,500

347,500

NET PROFIT (BEFORE INTEREST & TAX)

932,500

160,000

452,500

160,000

160,000

Income Tax Expense (25%Net)

233,125

40,000

113,125

40,000

40,000

NET PROFIT AFTER TAX

699,375

120,000

339,375

120,000

120,000

It can be seen in the master plan above that the net profit before the deduction of income tax comes out to be $932,500 which is closer to $1,000,000 i.e. only $67,500 less than the company’s desired target. To reach the target, I propose that changes be made in the grey highlighted part of the master budget provided above, which include:

Electricity

Rent

Waste Removal

Cost of the Goods Sold

By reducing the cost of electricity, rent and waste removal by one third of their present costs, the target of $1,000,000 is achievable. Along with this, if the cost of goods produced is reduced to about one third of its total amount, it will add about $100,000 to the bucket, achieving the desired target set by the company as well. Payroll tax has been calculated as the 5% of the wages collected by the employees as per the Australian Rules and Regulations for the payroll tax ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"VdpVAmDW","properties":{"formattedCitation":"({\\i{}About Payroll Tax}, no date)","plainCitation":"(About Payroll Tax, no date)","noteIndex":0},"citationItems":[{"id":460,"uris":["http://zotero.org/users/local/PwL0F8bO/items/5PGMVIGG"],"uri":["http://zotero.org/users/local/PwL0F8bO/items/5PGMVIGG"],"itemData":{"id":460,"type":"webpage","title":"About Payroll Tax","URL":"https://www.finance.wa.gov.au/cms/State_Revenue/Payroll_Tax/About_Payroll_Tax.aspx","accessed":{"date-parts":[["2019",1,25]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (About Payroll Tax, n.d).

Proposed changes in Budget:

It can be seen that the sales made by sales centre during Q2 depend mainly on the repair and maintenance carried out and I believe it is better if we raise the budget of the repair and maintenance required by the company to make sure sales do not drop during this time period of the year. It has been highlighted in bright green in the master budget.

Proposed Changes with respect to the Sales Centres:

With respect to the data provided for every sales centre, it is visible that the Sales Centre A (managed by me) generates revenue which is equal to the revenue generated by both Centres B and C combined. This requires that there must be an extra bonus for the team or their wages must be raised at the rate of about $10,000, so they can feel that they are rewarded due to the efforts they put in their work. This would boost their morale and I am sure this will be essential in digging out the best from the teams working in Sales Centres B and C. If the wage is increased at about $10,000, there will be no massive effect at the target revenue to be generated by the company if the above proposed changes are taken into consideration.

Task B

If the sales are projected to be less than the current rate, as mentioned in Task A, this means that there will be an effect on the overall revenue generated that year. For the identified risk, it is considered that the financial target or profit to be achieved must show no variation which should be more than 10% of the projected target this year. The profit for this year (before income tax) has been calculated to be about $932.500. For the sales to drop by 20% of the present value, the sales would drop from the present value i.e. $3,100,000 with a loss of 620,000 to about $2,480,000. Subtracting the loss i.e. $620,000 from the net profit (before tax), the net profit comes out to be $312,500. It would be a massive blow to the financial targets set by the company, as this set back would reduce the profits generated by the company at about 60%.

There is a desperate need for the contingency plan. It would hold different risks the company might face which would hinder the rate of profits generated by the company ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"lShnTojL","properties":{"formattedCitation":"(Payne, 1999)","plainCitation":"(Payne, 1999)","noteIndex":0},"citationItems":[{"id":458,"uris":["http://zotero.org/users/local/PwL0F8bO/items/5HDRPVHB"],"uri":["http://zotero.org/users/local/PwL0F8bO/items/5HDRPVHB"],"itemData":{"id":458,"type":"article-journal","title":"Contingency plan exercises","container-title":"Disaster Prevention and Management: An International Journal","page":"111-117","volume":"8","issue":"2","source":"emeraldinsight.com (Atypon)","DOI":"10.1108/09653569910266157","ISSN":"0965-3562","journalAbbreviation":"Disaster Prev and Management","author":[{"family":"Payne","given":"Christopher F."}],"issued":{"date-parts":[["1999",5,1]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Payne, 1999). The contingency plan is provided below,

Contingency Plan

Company name: Big Red Bicycle Pty Ltd

Person developing the plan:

Name: Jasvir Kaur manderPosition: Manager – Service Centre A

Risk identified: Due to the current economic climate, sales volume may be 20% below target this financial year with net profits going as low as 60%.

Strategies/activities to minimise the risk

By when

By whom

Blend up the sales centre B and C, by shifting the team of sales centre B to C or vice versa, to minimize the cost utilized by electricity, rent, water, waste disposal.

As soon as the sales volume begins to go down

Michelle Yeo

Reduce the incentives provided to the employees.

Immediately

Tom Copeland

Reduce the budget utilized by the office supplies; making sure the employee breaking something pays for it.

Immediately

John Black

Increase the budget for advertising.

As soon as the sales volume goes down

Stuart LaRoux

Decrease the rate of commission for the employees.

As soon as the sales volume goes down.

Sam Geller

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY About Payroll Tax (n.d). Available at: https://www.finance.wa.gov.au/cms/State_Revenue/Payroll_Tax/About_Payroll_Tax.aspx (Accessed: 25 January 2019).

Payne, C. F. (1999) ‘Contingency plan exercises’, Disaster Prevention and Management: An International Journal, 8(2), pp. 111–117. doi: 10.1108/09653569910266157.

BSBFIM501-Assessment-Task-2

Implement financial management approaches

Submission details

Candidate’s name

Jasvir Kaur Mander

Phone no.

Assessor’s name

Phone no.

Assessment site

Assessment date/s

Time/s

The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

The candidate will demonstrate the ability to implement financial management approaches.

Assessment description

In response to the scenario provided, you will access and communicate details of budget to a team member (assessor). You will then support the team member to perform their required role with respect to software resources and systems.

Procedure

Read the scenario provided in Appendix 1 to this assessment task and tasks A and B.

Prepare to meet with your team member (assessor) to communicate budget and then coach and train them in new role:

access required budget information from assessor

determine organisational needs

identify coaching/training needs of team member.

plan coaching/training session:

outcome: team member produces spreadsheet to meet management requirements

include activities/elements to instruct, practice, test, motivate

keep notes

Set up a time with your team member to have a coaching/training session.

Meet with your team member (assessor) to coach them in role:

Explain budget and relevance to team member’s accountabilities

Use appropriate coaching techniques or models such as GROW

Use appropriate motivational theory

Train learner in required spreadsheet techniques, include elements of instruction, practice and testing/feedback

Include recordkeeping requirements for Australian Taxation Office (ATO) and auditing purposes, for items such as petty cash, and GST.

Submit all documents required in the specifications below to your assessor. Ensure you keep a copy of all work submitted for your records.

Specifications

You must:

meet with your assessor to role-play support of team member

submit coaching/training plan.

Your assessor will be looking for:

numeracy skills to read and understand a budget and to communicate a budget

technology skills to use software associated with financial recordkeeping

knowledge of basic accounting principles to identify and use account balances in communication and training

knowledge of organisational requirements related to financial management, such as those contained in organisational policies and procedures

requirements for organisational recordkeeping and auditing with respect to petty cash

knowledge of principles and techniques involved in budgeting and electronic spreadsheets.

Adjustment for distance-based learners

No variation of the task is required.

Documentation can be submitted electronically or posted in the mail.

Appendix 1 – Scenario

Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles which it sells to retailers for on-sale in the domestic Australian market.

The senior management structure of the company appears below:

Person

Position

Michelle Yeo

Chief Executive Officer (CEO)

Tom Copeland

Managing Director

John Black

Chief Financial Officer (CFO)

Stuart LaRoux

Operations General Manager

Pat Roberts

Senior Accountant

Sam Gellar

Sales General Manager

Charles Pierce

Production Manager

Holly Burke

HR Manager

According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000. The chief risks to this goal are:

poor sales due to economic downturn

increases in expenses such as wage expenses.

In addition to Australian operations, the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product.

Role

You are the manager of Sales Team A. You manage a small team of sales team members. Your duties include accessing budget information for your team, explaining relevant aspects of budgets and features of budget documents to your team, and supporting team members to achieve performance goals.

Task A

You have determined that you will need to access budget information from the Senior Accountant to explain to your team. You will explain the overall financial objective of the business, provide an overview of the budget and explain how the budget translates to expense allocations for the team.

Task B

You have determined that one team member, Bill Goodale, will be responsible for tracking expenses and petty cash throughout the financial year. To meet organisational needs, this duty will need to be performed in accordance with policies and procedures.

You have determined that expenses will need to be divided equally and tracked by quarter. Bill will need to develop a spreadsheet to keep track of actual expenditure by account. To help control expenses, the spreadsheet will need to provide an ongoing tally of expense by account.

Bill’s skills include basic accounting. Bill needs to be informed of Big Red Bicycle policies and procedures for petty cash. Bill is familiar with Microsoft Excel but does not know how to use formula and functions to sum columns or rows of figures.

Appendix 2 – Financial policies and procedures

Expense reimbursement

Purpose of the policy

To detail procedures to be followed in relation to expense reimbursement of expenses that have been incurred on behalf of the organisation.

The policy

Big Red Bicycle will reimburse staff for reasonable and authorised expenses that have been incurred by them on behalf of the organisation or in the course of conducting Big Red Bicycle business.

Procedure

Staff will not be reimbursed in the following circumstances:

any late payment penalties, e.g. overdue interest on credit cards

expenses that are usually recovered from a third party

penalties and fines, e.g. parking, traffic

those claims that should have been made using the purchase order system

those expense claims made by staff as a tax deduction

those expenses that were not made for business purposes.

Travel expenses claims:

insurance for trip cancellation will be reimbursed

mileage allowance will be given for the use of a staff member’s vehicle when used for work-related travel

personal stopovers or indirect routes will not be reimbursed

travel reimbursement is provided for the most direct and economical mode of travel available; circumstances will be considered on a ‘case-by-case’ basis.

Accommodation expenses:

reimbursement will cover moderate accommodation expenses; circumstances will be considered on a ‘case-by-case’ basis

items of a personal nature that are charged to a hotel account will not be reimbursed.

Employee’s own meals:

employees on Big Red Bicycle business will be reimbursed for any reasonable and appropriate meal expenses.

All relevant and original source documents must be attached to the Expense Reimbursement Form. A statutory declaration may be required where these original documents are not provided.

Appropriate advance payments may be authorised.

Employees have authority to approve expenses up to the amount detailed in their individual job description. Any expenditure claims above the level prescribed must be forwarded to supervisors for approval.

Employees incurring authorised expenditure must submit their reimbursement requests on a signed Expense Reimbursement Form.

Source documents (including tickets, receipts, vouchers, invoices) must be kept for all purchases and expenses claims.

The CFO will use discretion to reimburse reasonable but unauthorised expenses.

Those claims that have not been adequately prepared, have not been duly authorised, or are lacking in original documentation, will be returned to the employee with reasons that outline why the claim has not been processed.

Petty cash

Purpose of the policy

To detail procedures to be followed in relation to tracking petty cash expenditure.

The policy

Big Red Bicycle maintains a petty cash system to allow authorised personnel to pay for small expenditures in connection with business activity.

Procedure

One team member is authorised to disburse petty cash with one alternate in case of sickness or emergency.

Petty cash is to be kept secure, locked in safe.

Receipts for cash must be issued.

Receipts must be reconciled at the close of each business day.

Amounts over $800 must be banked.

Petty cash expense will be recorded as miscellaneous expense.

Task A

Budget Objective

To provide the entire cost of the operation carried out by Big Red Bicycle Pvt. Ltd., along with the net profits generated before and after tax. The objective of this report is also to focus on the costs which are taken up by the wages, commissions, telephone costs and the office supplies.

Budget Explanation

The wages of the Sales Centre A make up about $100,000 with the commission agreed upon at about 2.5%. With the sales team of Sales Centre A making up about the same number of sales as both sales Centre B and C combined, we will take a closer look at the commission which is set for the sales team of Sales Centre A.

Sales Commission (Sales Centre A)

The commission for Sales Centre A is calculated in the table below,

Budget Plan (Sales)

Revenue

FY

Q1

Q2

Q3

Q4

Total Sales

3,100,000

700,000

1,000,000

700,000

700,000

Sales made by Sales Centre A

1,550,000

350,000

500,000

350,000

350,000

Commission for Sales Centre A (2.5% Sales)

38,750

8,750

12,500

8,750

8,750

The budget for the Sales centre A referring to the commissions is double than the commissions for the sales team of sales centre A and B. This has been collected with respect to the total budget and provided in the form of highlighted text provided in the table above. This is due to the fact that the sales made by the sales team A is equal to the sales made by the sales teams of sales centre B and C.

Wages (Sales Centre A)

The wages for the sales team A can be seen in the table below,

Budget Plan (Wages)

Revenue

FY

Q1

Q2

Q3

Q4

Direct Wages (Fixed)

300,000

75,000

75,000

75,000

75,000

Wages budget for Sales Centre A

100,000

25,000

25,000

25,000

25,000

It can be seen in the table provided above that the budget plan for the wages are set at about $100,000 for each sales centre. This is under negotiation as we are trying to increase the wages of employees and specifically our sales centre as the sales made by our centre are more than all of the other sales centres (B and C) combined.

Employment Expenses (Sales Centre A)

The budget for the employment expenses can be seen below,

Budget Plan (Employment Expenses)

Revenue

FY

Q1

Q2

Q3

Q4

Superannuation

45,000

11,250

11,250

11,250

11,250

Staff amenities

16,500

4,125

4,125

4,125

4,125

Superannuation budget for Sales Centre A

15,000

3,750

3,750

3,750

3,750

Staff amenities budget for Sales Centre A

5,500

1,375

1,375

1,375

1,375

It can be seen that the budget for superannuation and staff amenities is presented in the table above. The total budget for the superannuation and staff amenities has been equally divided among the sales centres.

Occupancy Costs

Occupancy costs include the costs taken up by the bills and other essential costs taken up by the office and its employees. These are provided in the table below,

Budget Plan (Occupancy Costs)

Revenue

FY

Q1

Q2

Q3

Q4

Electricity

40,000

10,000

10,000

10,000

10,000

Insurance

100,000

25,000

25,000

25,000

25,000

Rent

200,000

50,000

50,000

50,000

50,000

Water

30,000

7,500

7,500

7,500

7,500

Waste Removal

50,000

12,500

12,500

12,500

12,500

Electricity budget for Sales Centre A

15,000

3,750

3,750

3,750

3,750

Insurance budget for Sales Centre A

33,333.33

8,533.33

8,533.33

8,533.33

8,533.33

Rent budget for Sales Centre A

66,666.66

16,666.66

16,666.66

16,666.66

16,666.66

Water budget for Sales Centre A

10,000

2,500

2,500

2,500

2,500

Waste Removal budget for Sales Centre A

16,666.66

4,166.66

4,166.66

4,166.66

4,166.66

The occupancy costs are fixed and are provided above for the sales centre A.

Expense reimbursement

Purpose of the policy

This section of the report includes the detail which is to be followed with respect to the expense reimbursement of the expenses which have been incurred on behalf of the organization.

The policy

The company will reimburse the staff for the authorized and reasonable expenses which have been incurred by them on behalf of the organization or in course of conducting the business by Big Red Bicycle Company.

Procedure

Staff is not going to be reimbursed by the company if:

Late payment penalty i.e. if there is an overdue interest on the credit cards.

There are expenses which have been recovered from a third party.

Fines and penalties i.e. traffic and parking.

Such claims which are made through the purchasing order system.

Expenses made by the staff as the tax deductions.

Such expenses which are not made for the business purposes.

Claims can be made regarding the reimbursement of the travel expenses in case of:

If a trip is cancelled, the insurance cost would be reimbursed by the company.

Any trip related to work would mean that the mileage allowance would be provided to the staff members.

The travel allowance to be provided would be for the most economic and direct mode of travel available and would be up to $1,000.

Indirect routes and personal stopovers are not going to be reimbursed while travelling, and the employee could be fined up to $500 i.e. half of the maximum travel allowance. If repeated i.e. up to 3 times, the employee might be fined up to $2,000 which would be deducted from the salary of the employee.

Claims can be made for the accommodation expenses and:

The reimbursement would be covered by the company for covering moderate accommodation expenses for a maximum of seven days. The cost to be reimbursed would be provided by the employee and then confirmed by the company itself before reimbursing. Maximum limit would be $1,500.

Items consumed by the employee which are charged by the hotel will not be reimbursed by the company.

The employees on a business trip for the company would be reimbursed for the expenses for the meal being appropriate and reasonable. Maximum amount to be reimbursed would be about $500.

Every original and relevant document must be attached with the Expense Reimbursement Form. For the documents not provided, the employee would have to submit a statutory declaration.

Appropriate payments in advance must be authorized.

Employees must have the authority for approving the expenses up to the amount which is detailed in the individual job description. Any of the expenditures which are claimed to be above this prescribed level shall be forwarded to the respective supervisors for approval.

Employee incurring the authorized expenditure should be submitted through the reimbursement requests on the Expense Reimbursement Form which must be signed.

The source documents which include ticketing, receipts, invoices and vouchers must be submitted for every purchase and expense claims.

The CFO would use the discretion for reimbursing the reasonable but unauthorized expenses.

The claims which have not been prepared adequately, have not been authorised duly, or lack in the original documentation, would be returned to the employee with the reasons which outline the claims which have not been processed.

Task B

Petty cash

Purpose of the policy

For providing the detailed procedure, which is to be followed for tracking the petty cash expenditure.

The policy

Petty cash system is maintained by the Big Red Bicycle Company for allowing the authorised personnel for paying the small expenditures in relation with the business activity.

Procedure

Each team member is authorized for disbursing the petty cash with any alternate in case of emergency or sickness.

Petty cash must be kept safe and secure.

The receipt for the cash should be issued.

The receipts should be reconciled and checked at each closing day of the business.

The amounts over $800 are to be credited in the company’s bank account.

Petty cash expenses are to be considered as the miscellaneous expenses.

Team Training

Objective

The objective of the training team members is to make sure they are up to date with the modern software technologies. This would help the employees in making sure they get more work done in lesser time.

The Policy

The team training would include conducting training sessions for the employees to be up to date with the software which are essential for the improved performance of the employees and company, improving the profits for the company.

Procedure

The training sessions would include training the teams with the software such as Microsoft Excel and other finance related software.

The training sessions would take about 7 days in every month after each quarter time of the year.

All of the employees would have to pay 1% of the training fees.

BSBFIM501-Assessment-Task-3

Monitor and control finances

Submission details

Candidate’s name

Jasvir Kaur Mander

Phone no.

Assessor’s name

Phone no.

Assessment site

Assessment date/s

Time/s

The assessment task is due on the date specified by your assessor. Any variations to this arrangement must be approved in writing by your assessor.

Submit this document with any required evidence attached. See specifications below for details.

Performance objective

The candidate will demonstrate the ability to monitor and control finances.

Assessment description

In response to the scenario provided, you will create a simple spreadsheet budget to capture monitoring information. Using information provided to you by your assessor, you will then use the budget spreadsheet to produce a report on expenditure in accordance with organisational policies and procedures. You will also modify a contingency plan.

Procedure

Read through the scenario provided in Appendix 1 to this assessment task and tasks A and B.

Design and develop a spreadsheet to capture budgeted and actual figures to produce a variance report.

Access actual budget figures from relevant managers and accounting systems (assessor).

Monitor and record actual figures.

Consider feedback from team members.

Produce a variance report as per organisational requirements.

Consider the scenario information and contingency plan provided and analyse the variance report.

Modify the contingency and implementation plans provided in the scenario to improve effectiveness.

Submit all documents required in the specifications below to your assessor. Ensure you keep a copy of all work submitted for your records.

Specifications

You must provide:

a budget variance report

a modified contingency plan and modified implementation plan

your notes on procedures.

Your assessor will be looking for:

numeracy skills to read and understand a budget and to produce a variance report

technology skills to use software associated with financial recordkeeping

knowledge of basic accounting principles to identify and use account balances

knowledge of organisational requirements related to financial management

knowledge of organisational requirements for records and reports

knowledge of principles and techniques involved in budgeting, profit and loss statements, electronic spreadsheets.

Adjustment for distance-based learners

No variation of the task is required.

A follow-up interview may be required (at the discretion of the assessor).

Documentation can be submitted electronically or posted in the mail.

Appendix 1 – Scenario

Big Red Bicycle Pty Ltd is a bicycle manufacturer based in Bendigo, Victoria. The company produces bicycles which it sells to retailers in the domestic Australian market.

The senior management structure of the company appears below.

Person

Position

Michelle Yeo

Chief Executive Officer (CEO)

Tom Copeland

Managing Director

John Black

Chief Financial Officer (CFO)

Stuart LaRoux

Operations General Manager

Pat Roberts

Senior Accountant

Sam Gellar

Sales General Manager

Charles Pierce

Production Manager

Holly Burke

HR Manager

According to company strategic plans, the company aims to achieve a net profit before tax of $1,000,000. The chief risks to this goal are:

poor sales due to economic downturn

increases in expenses such as wage expenses.

In addition to Australian operations, the company is considering manufacturing overseas to take advantage of reduced costs. The company is also considering diversifying its product range to reduce exposure to poor sales of one product.

Role

You are the Senior Accountant at Big Red Bicycle. A major component of your role is setting budgets and monitoring budgetary performance for the organisation.

Task A

The Managing Director, Tom Copeland, has asked you to implement a process to monitor expenditure and income. He has asked you to prepare a spreadsheet to capture and compare actual income and expenditure to budgeted figures. Your spreadsheet must contain columns for each of the four quarters of the financial year. You are required to gather data from the relevant managers (your assessor) to complete a budget variance report.

The report should conform to organisational requirements in policies and procedures and contain:

columns to show actual account values

absolute variance

percentage variance.

Task B

It has come to the attention of the Managing Director, Tom Copeland, that due to the current economic climate, sales volume may be 20% below target this financial year. Tom is worried that this may severely impact profit projections. The company can accept as much as a 10% variance in profit projections; however, more than this could severely affect the company’s ability to pay obligations and invest. Reliable data to determine whether the risk has eventuated should be available by midway through the second quarter (Q2), when sales data for the company’s product are in.

Consider the contingency plan and the implementation plan for the contingency below. You have already implemented a portion of the contingency plan, namely the monitoring of budget performance in the variance report you have prepared. You should now analyse the report to determine the effectiveness of the contingency plan and its implementation.

You have received the following feedback from team members:

Full-time workers and sales people are resentful of time wasting and distracting contract employees.

Overtime not used but employees resentful of suggestion it might not be approved if needed.

Training suited the needs of many sales team members but was not relevant to about half the team members.

Sales team members were happy with the incentives program and tried hard to make sales in the third quarter (Q3); however, they were also resentful at the threatening tone of emails and soon lost enthusiasm.

Effect of one-day training wearing off.

Fifty percent of direct wages costs are attributable to short-term contract employees whose contracts have expired and who are no longer needed.

Employees concerned about lack of attention paid to wastage: water; electricity: paper; raw materials.

Employees feel left out of budgetary decision-making in general.

The Managing Director would like you to submit a revised contingency plan and contingency implementation plan to bring income and expenses under more effective control.

Contingency plan for Task B

Contingency Plan

Company name: Big Red Bicycle Pty Ltd

Person developing the plan:

Name : Tom CopelandPosition: Managing Director

Risk identified: Profit for FY more than 10% less than budgeted

Strategies/activities to minimise the risk

By when

By whom

Produce quarterly variance reports to identify income/ expenditure and profit shortfalls over 10%.

Q2

PR

Implement sales training/coaching.

Q2

PR

Implement incentives program.

Q2

PR

Reduce overtime.

Q2

PR

Contingency implementation plan for Task B

Risk identified: Profit for FY more than 10% less than budgeted

Activity

Monitoring activity and date

Person/s

Monitor variance.

Completion of variance report: Q2.

PR

Analysis of report to identify issues.

Management report: Q2.

PR

Email to warn employees of risk to jobs.

Monitoring of variance report results: Q4.

PR

Email to announce rise of commission from 2% to 2.5%.

Monitoring of variance report results: Q3.

PR

Email to inform employees that overtime will no longer be approved.

Monitoring of variance report results: Q3.

PR

Email to inform employees of mandatory sales skills training: set program.

Monitoring of variance report results: Q3.

PR

Mandatory training conducted.

Monitoring of variance report results: Q3.

PR

Appendix 2 – Budgeting and finance policy

Budget preparations

The business plan will set the key parameters for all financial budgeting.

Variations to the business plan must be approved by the CEO and senior management strategic committee.

Prior period results are to be analysed to identify the profit level of cost centres, identify correlations between financial statistics and to set key performance indicators and benchmarks for future budgets.

The budget planning committee will meet prior to budgets being developed and agree on budget parameters. The committee will consist of all department managers plus the CEO and Chief Financial Officer.

A CAPEX budget will be developed from the approved business plan.

A detailed sales budget must be completed before completing the profit budget for the year.

A cash-flow budget covering the first three months will be prepared after the profit budget is completed.

A master budget including profit projections will be completed from which cost centre allocations will be made.

Budget notes that contain all the assumptions used in the budgets should accompany the master budget or be made available on a separate document. Where possible, the notes should justify the basis on which the estimates were made.

Overheads (non-direct expenses) will be apportioned across the cost centres equally. Exceptions need to be negotiated with relevant authorities.

All expenses and income will be spread equally throughout the year unless otherwise required by business needs or business environment.

The financial cycle for budgeting purposes will be yearly ending 30 June.

Reporting requirements

Software applications to be used in reporting:

Environment – MS Windows.

Accounting information system – MYOB AccountRight.

Data analysis – Microsoft Excel 2007.

Actual results will be produced monthly by the MYOB accounting system. Actual variances to budget will be produced using Excel with a report prepared for senior management for significant variances.

Financial delegations

Each manager is responsible for achieving the revenue budgets agreed to in the budget committee.

Each manager is responsible to approve, by signing the necessary paperwork, all expenditures that fall within their area of responsibility.

Expenditures must be within the budget guidelines for the individual departments.

Format for budgets and reports

All budgets must include the:

name of the person who prepared it

cost centre (if applicable)

name of the budget/report, i.e. sales, expenses, CAPEX, cash flow, budget variance report

period of the budget.

Task – A

Master Budget Plan – 2018 – 2019

Objective

The objective of the budget plan is to provide the planned budget vs. the actual amount taken up by the budget during the course of events. The plan also holds the variance in budget which is also calculated after comparison with the actual and planned results of the budget.

Budget Variations

The budget variations have been approved by Michelle Yeo, the CEO of Big Red Bicycle Pvt. Ltd. and Tom Copeland, the Managing Director of Big Red Bicycle Pvt. Ltd.

Proposed Cost

The cost proposed by the company for the Master Budget.

Actual Cost

The real cost which is actually taken up by the company and different departments as proposed in the master budget ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"FoN59U5e","properties":{"formattedCitation":"(Horngren, 2009)","plainCitation":"(Horngren, 2009)","noteIndex":0},"citationItems":[{"id":490,"uris":["http://zotero.org/users/local/tjMYMZX7/items/42ZICXPH"],"uri":["http://zotero.org/users/local/tjMYMZX7/items/42ZICXPH"],"itemData":{"id":490,"type":"book","title":"Cost accounting: A managerial emphasis, 13/e","publisher":"Pearson Education India","ISBN":"81-317-2368-2","author":[{"family":"Horngren","given":"Charles T."}],"issued":{"date-parts":[["2009"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Horngren, 2009).

Variance

The difference between the Actual Cost and Proposed Cost is known as Variance ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"LpQM6rml","properties":{"formattedCitation":"(Webb, 2002)","plainCitation":"(Webb, 2002)","noteIndex":0},"citationItems":[{"id":488,"uris":["http://zotero.org/users/local/tjMYMZX7/items/6HMLXC3G"],"uri":["http://zotero.org/users/local/tjMYMZX7/items/6HMLXC3G"],"itemData":{"id":488,"type":"article-journal","title":"The impact of reputation and variance investigations on the creation of budget slack","container-title":"Accounting, Organizations and Society","page":"361-378","volume":"27","issue":"4-5","author":[{"family":"Webb","given":"R. Alan"}],"issued":{"date-parts":[["2002"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Webb, 2002).

Budget Plan

The budget plan is for the year 2018 – 2019 and contains the information regarding the costs and expenses along with the revenues which would be generated by the company during the entire year. It also holds the actual cost in comparison with the proposed costs for the Q1, Q2 and Q3 as they hold the same expenditure and costs taken up during this time and the budget for Q2 is separately provided being different than the rest of the year.

Budget Plan Q1, Q3, Q4:

Plan Prepared by: Pat Roberts Position: Senior Accountant

Big Red Bicycle Pty Ltd

Master Budget FY 2018/2019

Proposed for Q1, Q3 and Q4

Actual for Q1, Q3 and Q4

Absolute Variance for Q1, Q3 and Q4

Percentage Variance for Q1, Q3 and Q4

Revenue

Commissions (2.5% sales)

17,500

18,750

1,250

7.16%

Direct wages fixed

75,000

70,000

5,000

7.5%

Sales

700,000

750,000

50,000

6.65%

Cost of Goods Sold

100,000

110,000

10,000

-10%

Gross Profit

507,500

551,250

43,750

8%

Expenses

General and Administrative Expenses

Accounting Fees

5,000

5,500

500

-10%

Legal Fes

1,250

1125

125

10%

Bank Charges

150

150

0

0%

Office Supplies

750

825

75

-10%

Postage and Printing

100

115

15

-15%

Dues and Subscriptions

125

150

25

-20%

Telephone

2,250

2,925

675

-30%

Repairs and Maintenance

12,500

10,000

2,500

20%

Payroll Tax

4,125

3,500

625

15%

Marketing Expenses

Advertising

50,000

40,000

10,000

20%

Employment Expenses

Superannuation

11,250

10,125

1,125

10%

Wages and Salaries

125,000

125,000

0

0%

Staff amenities

5,000

5,000

0

0%

Occupancy Costs

Electricity

10,000

12,000

2,000

-20%

Insurance

25,000

25,000

0

0%

Rates

25,000

25,000

0

0%

Rent

50,000

50,000

0

0%

Water

7,500

9,000

1,500

-20%

Waste Removal

12,500

12,500

0

0%

Total Expenses

347,500

337,915

9,585

2.75%

Net Profit (Before Interest and Tax)

160,000

213,335

53,335

33.33%

Income Tax Expense (25% Net)

40,000

53,333.75

13,333.75

-33.33%

Net Profit After Tax

120,000

160,001.25

40,001.25

33.33%

Budget Plan Q2:

Plan Prepared by: Pat Roberts Position: Senior Accountant

Big Red Bicycle Pty Ltd

Master Budget FY 2018/2019

Proposed for Q2

Actual for Q2

Absolute Variance for Q2

Percentage Variance for Q2

Revenue

Commissions (2.5% sales)

25,000

30,000

5,000

16.7%

Direct wages fixed

75,000

75,000

0

0%

Sales

1,000,000

1,200,000

200,000

20%

Cost of Goods Sold

100,000

130,000

30,000

30%

Gross Profit

507,500

965,000

457,500

90.14%

Expenses

General and Administrative Expenses

Accounting Fees

5,000

7,000

2,000

-40%

Legal Fes

1,250

1250

0

0%

Bank Charges

150

200

50

-33.33%

Office Supplies

750

900

150

-20%

Postage and Printing

100

120

20

-20%

Dues and Subscriptions

125

150

25

-20%

Telephone

2,250

3,500

1,250

-55.55%

Repairs and Maintenance

12,500

12,500

0

0%

Payroll Tax

4,625

5,250

625

13.51%

Marketing Expenses

Advertising

50,000

40,000

10,000

20%

Employment Expenses

Superannuation

11,250

11,250

0

0%

Wages and Salaries

125,000

125,000

0

0%

Staff amenities

5,000

5,000

0

0%

Occupancy Costs

Electricity

10,000

14,000

4,000

-40%

Insurance

25,000

25,000

0

0%

Rates

25,000

25,000

0

0%

Rent

50,000

50,000

0

0%

Water

7,500

10,000

2,500

-33.33%

Waste Removal

12,500

14,000

1,500

-12%

Total Expenses

347,500

350,120

2,620

-0.75

Net Profit (Before Interest and Tax)

160,000

614,880

454.880

284.33%

Income Tax Expense (25% Net)

40,000

153,720

113,720

-284.3%

Net Profit After Tax

120,000

461,160

341,160

284.33%

Note

The negative sign in the percentage variance section of the budget proposal means that the company would be losing money at that point.

Task – B

Analysis

There must be policies against the permanent employees to make sure they don’t cause any trouble for the employees on contract.

The overtime should be approved if the sales team performs well.

A survey must be conducted about the relevance of field and then the training shall be conducted.

Only emails of high importance should be sent to the team members.

Training to be conducted must be of high quality and must be provided for a week and conducting tests to make sure employees learn it by heart.

Wages costs must be reviewed immediately

More attention and budget to be allocated to the services employees are concerned about i.e. water, electricity, waste material disposal, raw material.

A representative from the employees must be taken up to the budget making committee to represent the concerns of the employees.

Contingency plan for Task – B:

Contingency Plan

Company name: Big Red Bicycle Pty Ltd

Person developing the plan:

Name: Jasvir Kaur ManderPosition: Senior Accountant

Risk identified: Profit for FY more than 10% less than budgeted

Strategies for minimizing the risks

From when

By whom

Identify the expenses in each quarterly report to get a better idea of how to reduce expenses and increase the profits.

Q1

Senior Accountant and Managing Director

Coaching and training sessions for the employees.

Q1

CEO

Incentives to be given to the employees exceeding the sales of about $5,000 in a month.

Q1

CEO

Reducing overtime which would save the company money for electricity and other costs.

Q1

Managing Director

Contingency Implementation Plan for Task B

Risk identified: Profit for FY more than 10% less than budgeted

Activity

Monitoring activity and date

Person/s

Monitoring variance from the beginning of each year.

Completion of variance report: Q1, Q2, Q3 and Q4.

Senior Accountant

Analysing the report for better understanding of the cost and expenses during each quarter.

Management report: Q1 – Q4.

Senior Accountant

Employees not performing well would be given a warning and meeting with the employee to discuss if the employee is facing with some personal issue.

Monitoring the variance report of each quarter.

Senior Accountant

Have a meeting session with the employees to inform them of the increase in commission and other policies related to deductions.

Monitoring the variance report of each quarter.

Managing Director

Informing the employees in the meeting that the rate for overtime would be reduced.

Monitoring the variance report of each quarter.

Managing Director

Asking for suggestions about the suitable type of training in the form of a survey sent via email.

Monitoring the variance report of each quarter.

HR Manager

Mandatory training conducted.

Monitoring the variance report of each quarter.

HR Manager and CEO

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Horngren, C. T. (2009). Cost accounting: A managerial emphasis, 13/e. Pearson Education India.

Webb, R. A. (2002). The impact of reputation and variance investigations on the creation of budget slack. Accounting, Organizations and Society, 27(4–5), 361–378.

BSBFIM501-Assessment-Task-4

RUNNING HEAD: BUSINESS AND MANAGEMENT

BSBFIM501-Assessment-Task-4

By Jasvir Kaur Mander

[Name of the Writer]

[Name of the Institution]

TASK A

Calculations

For Debtor Days:

We know the formula for average debtor days can be given as,

Debtor Days=DebtorsAverage Daily Sales

Or,

Debtor Days=Debtors(Sales365)

From the table in the given question, we get,

Debtors=Trade Debters=$362,500

From the Appendix 2, we get,

Sales=2,900,000

Putting in the formula, we get,

Debtor Days=362,500(2,900,000365)

So Debtor Days can be given as,

196215029591000

Debtor Days=45.62 days

For Creditor Days:

We know the formula for average creditor days as,

Creditor Days=Trade PayablesCost of Sales×365

By putting the values from the table in the given question and the Appendix 2, we get,

Creditor Days=80,0002,900,000×365

189547527432000So,

Creditor Days=10.06 days

For Average Stock Turnover:

We know the formula for the average stock turnover as,

Average Stock Turnover=Cost of Goods SoldAverage Inventory

For the average inventory, we get the formula as,

Average Inventory=(Opening Stock+Closing Stock)×0.5

For the values of Opening Stock and Closing Stock, we refer to the table provided with the question, and we get,

Average Inventory=(100,000+300,000)×0.5

So, the average inventory becomes,

Average Inventory=200,000

Putting the value of average inventory in the above formula and taking the value of cost of goods sold from Appendix 2, we get,

Average Stock Turnover=2,900,000200,000×365

171450030480000So,

Average Stock Turnover=5292.2

For calculations, please refer to the part a, b and c of this task.

The two ways to increase the cash flow include:

Reducing the trading terms: To reduce the trading terms to about 7 days rather than 30, 60 or 90 days.

Ceasing supply for non-payment: To improve the cash flow, it is required to cease the supply to the dealers who do not pay on time until their payments are clear.

Three sources of information include:

Statement of Financial Position with current ledger account.

Statement of Financial Performance.

Ageing Debtors Budget.

TASK B:

(a). Solution: We get,

The price of each bike produced= $500 (exclusive of GST)

The current variable costs= $250

Fixed costs= $1,280,000

We get our total costs as,

Total costs=Fixed costs-Total variable costs

Total costs=$1,280,000-($250×8,000 units)

Total costs=1,280,000+2,000,000

So,

Total costs=$3,280,000

For the price of each bike, for 8,000 units we get our total earning as,

Earning=$500×8,000

Earning=$4,000,000

Now, for the profits, we get,

Profits=Earnings-Total costs

Profits=$4,000,000-$3,280,000

Profits=$720,000

So, the profits for 8,000 units under the current fixed and variable costs are not equal to the target i.e. $1,000,000. So we need a bigger plant to shift our production unit. To calculate how short are we in terms of units, we get,

Difference in units=$720,000$500

So, we get our units as,

Difference in units=1,440 units

116205030670500So,

Total required units=8,000+1,440=9,440 units

Hence the total units required for the producing the profits of $1,000,000 under the current variable and fixed costs are 1,440 units. The company needs to work more on the Indian unit to reach the desired amount of the profits, having a production capacity of 10,000 units.

(b). Solution: Under the current variable cost i.e. $250, we get out profits as (calculated in part a),

Total profits=$720,000

This means we have a cost deficit of about $280,000. To calculate the desired variable cost, we first find the total price for the 8,000 units for each bicycle to be about $500. We get,

Earning=$500×8,000

Earning=$4,000,000

So, for the current fixed costs i.e. $1,280,000 we need to restrict the total cost to about $3,000,000. For that, we subtract the total target cost i.e. $3,000,000 and total fixed cost i.e. $1,280,000. We get,

Required total variable cost=$3,000,000-$1,280,000

Or,

Required total variable cost=$1,720,000

So, for a single variable cost, we divide the required total variable cost with the total number of units i.e. 8,000. We get,

Required single variable cost=$1,720,0008,000

159067532385000So,

Required single variable cost=$215

Answer: It is recommended for BRB to utilize the Indian production plant for its overseas operation as it is possible for the BRB to reach the required target of profits i.e. $1,000,000 easily with reference to the production capacity of the plant.

Answer: The three sources of information include:

Per unit price of the bicycle.

The variable costs.

The fixed costs.

TASK C

Answer: Though the time limit for keeping the records is five years, to claim the GST credit, the time limit set by the ATO is four years. This means the GST record must be kept for a minimum of four years.

Solution: The calculations can be seen as below,

July

August

September

Budgeted cash receipts incurring GST:

Cash sales

20,000

10,000

10,000

Cash revenue (besides sales)

0

0

0

Cash receipts from sale of assets (not stock)

0

0

0

Total receipts for GST

20,000

10,000

10,000

Budgeted non-cash receipts incurring GST:

Debtors sales

180,000

230,000

150,000

Total non-cash receipts

180,000

230,000

150,000

Total budgeted receipts incurring GST

200,000

240,000

160,000

Budgeted cash payments incurring GST:

Cash purchases of stock

0

0

0

Cash expenses

4,300

5,200

5,250

Total cash receipts incurring GST

4,300

5,200

5,250

Budgeted credit payments incurring GST:

Credit purchases of stock incurring GST

25,000

30,000

25,000

Credit purchases of assets (besides stock)

4,300

5,200

5,250

Total cash payments incurring GST

29,300

35,200

30,250

Total budgeted cash payments incurring GST

33,600

40,400

35,500

GST cash budget calculations

Cash receipts

20,000

10,000

10,000

Cash payments

29,300

35,200

30,250

GST liability

12.15%

12.15%

12.15%

TASK D

Answer: From Task B, it is recommended that the company shifts its overseas production to Indian production plant. To ensure the appropriate activities, timelines, accountabilities and monitoring and to develop an action plan for the implementation and monitoring the recommendations. The plan is provided below,

Objective of the plan: To shift the production plant to India for improving the profits generated by the company.

Activities to carry out before implementation: The following activities are to be carried out before shifting the plant to India. This includes,

Surveying the entire place where the plant is to be run.

Run an estimate again of the costs involved.

Make sure appropriate dealers are available for purchasing the bicycles.

To make sure the staff is competent enough.

Run a cost analysis and final market analysis again before starting the plant.

Monitoring: The following steps are to be carried out related to monitoring, which include,

To have a close eye at the quality of the units being produced.

To make sure the desired profit margin and target is being achieved.

To make sure the desired number of units are being produced during each quarter.

Timelines: The time line to be followed would comprise of each quarter of the year with the year divided into four quarters. This includes Q1, Q2, Q3 and Q4. The fiscal year must end at March 31, of each year with reference to the financial policy followed in India.

Accountabilities: The dealers must be given the appropriate number of units on credit with a period of 7 days. This will ensure that the cash flow is improved which helps strengthen the company.

TASK E:

Answer:

Basic Accounting Principles: The basic principles of accounting include,

Revenue Recognition Principle

This principle corresponds to the revenue which is provided in the income statement of an enterprise.

Historical Cost Principle

This principle states that the asset is recorded ordinarily in the records of accounting at the cost paid for acquiring it at the time of its acquisition and the cost becoming the basis for the accounts during the acquisition and subsequent accounting periods.

Matching Principle

This principle states that the expenses which have been incurred in the accounting period must be matched with the revenues which are recognized in that very period e.g. if the revenues are recognized on all the goods being sold at that specific period, the costs must be charged based on that period.

Full Disclosure Principle

This principle states that the financial statements of a company must act as the means to convey and not conceal. Every relevant and real information must be stated in the financial statements of the company (Nyquist, 2000, pp. 178-185).

Objectivity Principle

This principle states that the data related to accounting must be verifiable, definite and free from every personal bias of the accountants.

Cash Flows: The cash equivalent and the net amount of the cash which is being transferred in and out of the business. The positive cash flow shows the ability of the company for creating the value for the stakeholders (Almeida et al, 2004, pp. 1777-1804).

Ledgers and Financial Statements: The financial statements of a firm are generated by ledger and is widely used by the accountants. The role of the ledger is to provide the entire record of the company’s financial transaction throughout the company’s lifetime. The account information is held in the ledger, necessary for preparing the financial statements and including the accounts for assets, owner’s equity, revenues, expenses and liabilities.

Profit and Loss Statements: The role of these statements is to provide a summary of the revenues, expenses and costs which have incurred during a specified period, which corresponds to the fiscal quarter or the entire year. These statements shed light on the ability of the company to generate the profits by generating an increase in revenue reducing the costs or both.

What do you think?

The list provided surely holds everything needed to help with the crucial management of the company. Everything provided in the list is essential for the growth of the company.

References

Almeida, H., Campello, M. and Weisbach, M.S., 2004. The cash flow sensitivity of cash. The Journal of Finance, 59(4), pp.1777-1804.

Nyquist, S., 2000. Accounting theory and financial environmental reports. Eco‐Management and Auditing: The Journal of Corporate Environmental Management, 7(4), pp.178-185.

BSBMGT608

BSBMGT608

[Name of the Writer]

[Name of the Institution]

BSBMGT608

Introduction

This report is prepared to clarify and provide a detailed understanding of incessant development/improvement and the managing innovation. The report comprises a deep analysis of the case study about a much-known company which produces toys for children and adults. The company is named as A.C Gilbert. The report further includes some strong theories and concepts which are associated to the conception of innovation management and continuous development. As well as the report covers the strategies of A.C Gilbert regarding mentioned concepts which include their sustainability and performance strategies of the company as well as report trends are determined in the report. Beyond that, the report presents some crucial technological solutions t A.C Gilbert regarding the problems noticed in this report.

Furthermore, this report is concerned with the provision of information for the company which is associated to the usage of fresh strategies and tactics and construction of new technology as well as the basic principles of innovation and management are used in this report. In addition, the cost-benefit and risk analysis of the newly adopted strategy by the company are key points of the report. This also covers the implementation of the strategy and several tactics to be used in the implementation. Detailed information regarding the company and its new strategies and tactics are used in this report.

Executive Summary

Every aspect of A.C. Gilbert has been analyzed in this report such entire organization, its management, operation, other practices and the case study about A.C. Gilbert. The report covers operation of A.C. Gilbert regarding supply chain management, changing trends and performance. Beyond that, the production, innovation and performance improvement practices and policies of the company have been reported. Beyond that, all of the critical reasons and issues have been identified which were the real reasons of failure of the company. As well as in the next phase of the report, several strategies regarding performance improvement, getting success and elimination of possible risks and failure have been recommended. In terms of implementation, several strategies, plan have been developed and advised as well as contingency plan have been established for the company in case of managing any failure in implementation.

Purpose of the Report

The core purpose of the report is to analyze A.C. Gilbert from every perspective. To know the facts which pushed company into trouble. In addition the purpose is to know that what factors are crucial for the companies and what factors were there which brought harsh time for the company. Apart from that, it is also a purpose of the report that how to analyze a company or business, study its operations, know the facts and figure, and recommend strong strategies and tactics for improving business, operations, performance and get succeed in today’s competitive business world.

Key Processes and Systems

Supply chain

The supply chain management is the management of all operations which are taken into action for bringing the products to the reach of end consumers. The process of the supply chain is to transfer the goods or goods from the producers to the final user or consumer. The supply chain is managed by every level of organization to encounter the wants and demands of consumers as well as to move products from the company to the final consumer(s). Proper and efficient management is required for this purpose. The supply chain management which was adopted by A.C. Gilbert includes suppliers, producer and retailers. A.C. Gilbert moves and provides toys to their customers through the use of mention supply chain.

Operating Systems

Operational systems of A.C. Gilbert cover several steps. The activities which are used by the organization to deliver the operating organisms include;

Designs: To design all of the products and toys according to the product which has been intended by the company’s designer. The designs are customized as per the requirements of customers who are kids and adults. As well as the preferences and changes in the choices of girls and boys are also well-thought-out while designing the products.

Planning: The overall planning is made for developing the perfect product which meets customers’ needs and wants, sales of the products (toys) and meets customers’ demands and to achieve them with efficiency.

Buying: The buying step is considered in the operative/operational system to provide the overall planning regarding acquiring raw material and other things like packaging from the suppliers of A.C. Gilbert.

Manufacturing: The overall manufacturing covers the operations of manufacturing toys, their packaging and distribution activities. The operations of manufacturing or manufacturing are covered in the production of the company.

Distribution: Distribution of A.C. Gilbert includes the activities undertaken for storage, warehousing and finally distribution of toys.

Delivery of Product and Service

The Delivery of Product and Service is that wherein all organization delivery of product and services is done by the company. The product and services delivery of A.C. Gilbert is highly efficient because of it on time provision of products and services to the customers. The delivery management of A.C. Gilbert includes planning for product or service distribution and then the final delivery management to make the product available on time for the consumers.

The overall analysis of the systems which the company has used and still used by the company has increased and enhanced the overall company performance. The systems and all of the processes regarding product and service delivery which are provided by A.C. Gilbert have managed the resources and functions for gaining extreme accomplishment.

Measures

Number assessment tools and techniques exist which can be used to measure and asses the process and systems used by A.C. Gilbert.

KRAs: The KRAs raises to the overall parts of the diverse roles and responsibilities. The KRA (Key results Areas) of the A.C. Gilbert comprises the outcomes of the roles and responsibilities of the departments of the corporation which further include attained profit of A.C. Gilbert.

KPIs: The KPIs of the company (A.C. Gilbert) are the actual customers’ satisfaction and the quality of their products and related services.

Performance Review System: The performance review process of A.C. Gilbert offers the overall performance appraisal of the company which are used by A.C. Gilbert to enhance the level of confidence.

Evaluation of Efficiency of New Strategy and Necessary Improvements

There are three key tools through which the performance A.C. Gilbert can be evaluated, which are also mentioned above. The theory of quality management and consistent improvement. There are several tactics and techniques which have been used by the company to empower quality and bring continuous improvement to the company where the continuous improvement means improve daily operations of A.C. Gilbert to bring improvement in operations which improve, product, process and product related services of the company. There is no doubt that the supply chain of the company was enough efficient but the systems used by the A.C. Gilbert for improving performance, the company have to face a loss of more than one billion dollars in 1961-62 which made the company unable to stay. And the compan6y has been sold out to a businessman named as Jack Wrather. Here the company’s performance had not enhanced and A.C. Gilbert survived with lost for more than 6 years.

For having continuous improvement practices, it is extremely important for A.C. Gilbert to adopt the PDCA cycle which will provide and improve the company’s performance as this cycle delivers different steps for completing improvement related steps. The steps of the improving quality involve;

Plan

Do

Check

Act

As well as six sigma tools and total quality management also there for improving quality and performance. But the recommended tools for improvement of quality and keeping consistent improvement is total quality management. The company use the tool of TQM for improvement and quality enhancement. The most useful strategy to improve the quality of the products of the company is the customers’ satisfaction strategy and analysis of customers’ satisfaction.

Analysis of the Variances and the Result Areas of Performance Up To 1966

A.C. Gilbert increased the production of new 50 toys which result to increase up to 307 lines business. The production and designing of the firm have changed to ranges for school children (6-17 years aged) from the traditional boy’s designing. The producing elements of the firm have increased with 55 new lines where the year of 1963 has been found a poor period of designing because of lack of innovation in the products. While in 1964, the quality of producing toys has been decreased and the company started using weaker parts. Afterwards, the company has not brought any innovation till 1965 and face a huge loss in the year of 1966.

In the year of 1961, the accumulated loss of A.C. Gilbert is marked as $20,011 while it has increased and reached to $281,000 in the next year. As well as the profits of the company faced decreased in the next years till 1966 which create huge trouble for the company.

During 1961-66, A.C. Gilbert lost its supply chain and delivery performance. The supply of A.C. Gilbert was efficient till 1962 but after the lack of innovation and financial loss, the supply of the company got affected as well as demand has been affected too. Plus, the overall operations and performance of the company have been affected because of the reduction in profits.

In terms of staff, the turnover increased as well. The new owner has changed a huge number of staff members each year and many changes in staff have been brought by the new owner. The top management and bodies of A.C. Gilbert were also changed which has been found an increase in staff turnover and performance of the company.

Changing Trends of A.C. Gilbert

Changing trends means continuous improvement in performance on an ongoing basis. In the year of 1950, the company (A.C. Gilbert) has not introduced any changing trend like innovation in toys. For being highly competitive, the organization needs to have strong changing trends.it is important to get success in the market and gain customers.

Before and after 1960, A.C. Gilbert has certain key strengths and crucial weaknesses.

Strengths

Before 1960, the business had huge amount of market share which was the core strength of A.C. Gilbert over competitors.

The company had a huge reputation and high-quality products to launch.

The continuous increase in the earnings and profits ad market share of the company for some years.

Continuous provision of the increment of the company in the sales.

Highly efficient production and manufacturing as well as continuous innovation in toys until 1961 than any other rival in the industry.

Weaknesses

Weak stability intends and performance of the overall operations.

Lack of persuasive image and nature which led to weakness in adopting changes promptly.

Weak in meeting customers’ needs and expectations as well as poor customer services.

The lowest rate of innovation in some specific years out of this period.

With the changing financial position of the company, the performance of employees was becoming weaker in that period.

Technology Opportunities (Missed)

There are number several opportunities which have been missed by A.C. Gilbert which includes innovation, competition and adopting change.

In terms of innovation, the company always used the same patterns for both boys and girls and didn't work to bring innovation. The major products of the company were dolls and traditional boys while A.C. Gilbert kept the focus on it all the time. In competition, a number of new toys have been launched in the market which became a reason of failure for the A.C. Gilbert’s strategy. In that time, Barbie doll and race cars gotten attraction of kids, as well as new design and different varieties, could be the potential opportunities for the company.

Action plan

Actions

What to accomplish

Days Needed

To analyze innovation or change

Advanced methods

0.5 month

Analyzing the competitor’s innovation.

To deliver better excellence and designs

0.25 month

Computing the financing required for innovation.

Profit edge

0.66 month

Approximating the required raw resources/material.

Raw resources/material

0.5 month

Cooperating the modernization and techniques

Advanced designs and technologies

0.5 month

change implementing

Appropriately implementation of innovation

25 days

Recommendation If the Company Runs

For improving the business and enhance the level of profitability, A.C. Gilbert needs to ensure the adaptation of new technologies and capture the potential opportunities. The important consideration of potential opportunities involve;

Internally, the engineering of the company is required to adopt new technology to manufacture the toys efficiently as well as the department and engineers have to adopt the quality improvement management practices like TQM. Manufacturing should work on improving production processes and operations. As well as sales and marketing professionals should work on customers’ satisfaction. Beyond that, Human resource management should improve employees’ performance and decrease the turnover rate.

In terms of external improvement, the outside consultants should be marked highly valued by the company. As well as A.C. Gilbert needs to use the expertise of outside marketing experts and utilize them for increasing the sales and enhancing marketing operations. In the innovation, the IT consultants and A.C. Gilbert should provide all and accurate info so that better decision will be made and related activities will be done more efficiently.

Task No 2

Performance Improvement Strategy

The strategy regarding performance improvement is to improve the company’s strategies. The strategies and tactics which enhance and improve the overall performance of A.C. Gilbert.

Strategic Goal/Objective

First of all, the company should identify the opportunities and problems or threats. The strategic goal of the company is the set objectives which A.C. Gilbert wants to accomplish at the end of the coming financial year. The strategic objectives of the company;

To make sales of $20 million in 1963.

To gain a huge profit and make huge sales.

Replace some employees and retain the efficient ones.

To improve promotions and introduce more products

Proposed Process and Amendments

The proposed process of the company covers designing, planning, purchasing, producing and distribution. So the company should add marketing and advertisement to their proposed process which will make the company able to be more efficient and profitable. By having a competitive product at hand, the company can increase customers’ satisfaction, so A.C. Gilbert needs to work on and bring highly competitive products to the market. As well as the marketing department should be trained and motivated to make more sales and do effective marketing. Beyond that, the product manager must ensure product quality, product management, control cost, and check the quality. So that the company would be able to have a competitive product.

Beyond Proposed Process and Amendments in Process, the company also needs to develop;

Management brief and consultation

Lead Sessions

Group suggestions

Develop creative techniques and tactics for improvement.

Problem Regarding Implementation of New Strategy

There are highly crucial challenges and issues exist when implementing a new strategy. They might affect the strategy and implementation of inversely. These challenges maybe;

Excessive expenses and costs

Increased competition

Complex processes

Possibility of reduction in revenues

Accepting Success and Failure of Ideas

In case of having a prosperous indication and strategy, the company enjoys revenues and improved performance but the company must have contingency plans in case of failed strategy. This plan includes some crucial parts which are;

Strategy’s Risk Analysis

A strategy risk analysis is the process of assessment of the associated risks with the implementation of a innovative approach by the company. So the company also has to consider risk analysis strategy which would include the following steps.

Mapping the Strategy

In this, the management of A.C. Gilbert must state the company’s objectives, mission and vision to provide accomplishment set by the company. In this, the economic and other perspectives should be considered by the company while focusing on the customers, growth, processes and operations of the A.C. Gilbert when defining the actual goals and mapping strategy.

Risk Identification

After mapping the strategy, the next step is to identify the risks. The perspective of customers, processes and growth would be considered while identifying the risk of the strategy.

Risks Assessment

Assessing the risk means to assess the risk and know its impact on the company and its performance. This is done identifying the risk. The risk assessment covers the steps like risk mitigation, avoiding the risks and accepting them.

Design Risk Control System

A proper and effective designing must be there to control the risks. There are several risk control systems which can be used by A.C. Gilbert. Some of them are; boundary control, diagnostic control and internal control.

Cost-Benefit Analysis of the Strategy

The cost-benefit analysis of strategy is a system where the management decisions are analyzed. These analyses are done for the purpose to know the key strengths and weaknesses of possible alternatives. It provides A.C. Gilbert with the utilization of cost and benefits of the product or service. The cost and benefits of the new adopted strategy are the performance of the strategy as well as an enhanced level of risks.

The cost and benefits of the new adopted strategy is it would provide advertisement, marketing and promotion department to empower and improve its performance and operations and enhance the profitability of the company but it would also a reason which would increase the costs and would make the structure and processes more complex. It would also be increasing the competition for A.C. Gilbert as well as it would help the company to enhance the number of customers.

Importance of Gaining Approval of Innovations through Agreed Organizational Processes

Gaining approval of innovation through the agreed organizational process is very crucial and important for every organization. For A.C. Gilbert, it would help the company to adopt any strategy regarding innovation in products or operations with having proper approval of the management. As well as it is important because you would not have any issues or problems when implementing any innovation when you have gained the approval of innovation with the agreed organizational process.

Task No 3

Implementation

Examination of all Aspect of New Process

The concern of the production manager of the company (A.C. Gilbert) is to plan the new process and implement for the purpose to enhance the productivity, reduce wastage and empower sustainability of the company. It will also be helpful to reduce the possibility of errors. The plan of the manager is to increase the specialization and expertise in the company. Another crucial goal or concern of the production manager is to reduce the rate of turnover as well as to enhance the employees’ performance and decrease the costs and expenses associated with the selection and recruitment of the employees. As well as he has the concern to decrease the costs and expenses regarding employees’ training and development.

The overall concern and planning of the manager would enhance the level of productivity, decrease the possibility of errors which would have a direct and positive impact on performance and productivity. The actual plan is to divide the staff members into different five teams. Every team would work under the expert of the particular field or department as well as every team will be assigned with a target which they would achieve. It would enhance productivity and increase quality. There, the possibility of errors would also be decreased like from 27% to 55 while productivity would get increased up to 40%. Beyond that, the staff members would also be trained and developed which would also be a positive contribution.

Costs

This entire plan costs much as the progressive predictable cost is up to $150,000. Here the cost of implementation is $70,000 while the cost of re-machining is aro8und $1.2 million. The ongoing cost for the company would be $150,000. As the company accomplish savings from this plan, the plan has been found effective and well efficient.

Development costs

Initial trial

$150,000

Implementation costs

Re-tooling the production line

Training

Loss of productivity

$1.2 million

$20,000

$50,000

Ongoing costs

Initial errors and reduced productivity

$150,000

Anticipated Savings

The saving also has part of savings from employees’ turnover which is $300,000 annually while 1 million is from errors and issues and lower productivity as well as $200,000 is from repair costs and servicing annually.

Benefits and Fears of new Process to the Company

Benefits

It would improve in morale

Would enhance the contribution in the decision-making process of the company

Concerns

Employees would be bored by working on single lines

Absence of education regarding specialized skills and knowledge

Productivity reduction because of higher transition

Action Plan for Transition

Actions

Goals

Measures

Deadline

Process implementation

New process implementation

Keeping worthy operational environments

1 month

Sustainability enhancement

Allocating new professionals on responsibilities

Utilization of best source

0.33 month

Reduction of negative impact on individuals

To eliminate errors

Improvement of the process

1 month

Action Plan for Communication

Activities

Objectives

Measures

Timeframe

Process implementation

Provision of execution of communication systems

Improvement of the process

0.66 month

Sustainability enhancement

Communication enhancement

Improvement of the process

0.33 month

Reduction of negative impact on individuals

To improve actions of communication

Improvement of the process

0.66 month

Contingency Plan

The possible problems that may happen during execution stay to eliminate the mistakes and to deliver the best communication structures set-up. The effective execution of these strategies may decrease the occurrence of possible errors/faults while enhances communication plans. In the contingency plan, the A.C. Gilbert should consider the major two activities which tolerate the hazard. The decrease of the occurrence of errors should be managed through the efficient training and development of the employees and staff members. All of the staff members should be well trained and developed for the application of the new process to decrease the possibility of errors. The specialist or concerned expert can improve the errors but cannot be improved by others in the company if they have not been well trained and developed regarding errors management.

Another contingency plan which would be utilized by the company for implementation of various communication systems is the provision of proper and effective enhancement and empowering the communication system in the company. For this concern, the company is required to make payments of enough costs and related expenses because the installation of various communication systems may cost the organization higher. The contingency plan is crucially important for the company of every organization to minimize the costs and expenses as well as to provide highly efficient communication in the company.

How long the company do or operate without?

Effects of doing without.

Contingency in case of Calamity

Decreasing the occurrence of errors

30 to 40 days

The efficiency of the company will be impacted and the results or outcomes would be poor.

Needs and take much enough time from the client to finish up the project after correcting it from all aspects.

Systems set up of Communication

30 days

The confusion, issues and higher repetition may have occurred which could also create huge and crucial disaster in the overall process.

The inefficient activities and work and product or service can be taken risk for maximum 30 days after that no contingency is there.

Follow Up

Examining the Problems, Issues and Failure of the Implementation

The following issues and failures regarding the implementation of the newly adopted process cover below assumptions. The problems or issues that may occur in two months of the implementation are;

The decrease in productivity by 8 per cent

10 per cent increase in the wastage

Delays have increased up to 10 per cent

Resignation of more 15 employees

Issues and complaints of the employees regarding the difficulty in managing the machines

Poor training provides no professionalism

Bored staff members because of working for longer shift timings

Increase in the injuries of employees.

A number of major concerns exist here which have the capability to affect the people to destroy the new process of implementation. The more number of hours beyond shift timing or hours can risk the employees' life because of tiredness which may put an impact on their health. The decrease in production and increase in wastage can increase the costs and expenses for the company. The possibility of employees' injuries may also be increased because of using machines by untrained employees. Complaints increase the employees' turnover and this can also be increased. These concerns or problems have an impact on the company to set up a new implementation process.

Changes in Action Plans

Action Plan for Change

Actions

Goals

Measurements

Deadline

In occasion of failure

Process implementation

Implementation of the new procedure

Upholding fine efficient working settings

1 month

2 months

Sustainability enhancement

To assigned new experts and specialist with duties

Best resource utilization

0.3 month (10 days)

0.6 month (20 days)

Decrease negatives effects on employees

To decrease the occurrence of errors

Process improvement

1 month

2 months

Action Plan for communication

Actions

Goals

Measurements

Deadline

In occasion of failure

Procedure implementation

To deliver the actual execution of communication systems

Improving the procedure/process

0.6 month (20 days)

1.3 month (40 days)

Enhance sustainability

Communication enhancement

Improving the process

0.3 month (10 days)

0.6 month (20 days)

Decrease negative effects on employees

Enhancement of communication activities

Improving the process

0.6 month (20 days)

1.3 month (40 days)

Contingency Plan

How long the company do or operate without?

Effects of doing without.

Contingency in case of Calamity

In case of failure

Decrease of Errors

30 days

The efficiency of the company will be impacted and the results or outcomes would be poor.

Needs and take much enough time from the client to finish up the project after correcting them from all aspects.

Alternate plan will be developed and used

Setting up the communication system

30 days

The confusion, issues and higher repetition may have occurred which could also create huge and crucial disaster in the overall process.

The inefficient activities and work and product or service can be taken risk for maximum 30 days after that no contingency is there.

Alternate plan will be developed and used

If the contingency plan of the company gets fail then the company would not have any other plan at hand but the company will be required and would develop alternate plan and will be using it. As well as company can also d it from the very first step again which would give an option to the company to implement the entire work and plan again.

Evaluation and Continuous Improvement

Continuous improvement and evaluation means analyzing every aspect of work and activities. The competition among work activities give the evaluation to the company which further provide the organization with the effective evaluation. Evaluation and continuous would make the company to have fine, correct and successful future.

Schedule

Activities Evaluation

Frequently Repeating Over Time

To gain learning from work and activities

After each month

Learning application into the work process

Daily if easily possible

Conclusion

It has been concluded from the report that every organization need proper management of its resources and other aspects. A.C. Gilbert was required to consider all of the points which would be used to provide fine and efficient management to such branded company. The weak management, wrong use of resources, poor employees’ performance and lack of innovation decreased sales and productivity of A.C. Gilbert and weaker the performance. As well as ignorance of improvement and innovation in production gave a tough time to A.C. Gilbert where the company faced a difficult situation during 1961-1966 and the company gone closed in 1967 because of huge and continuous loss. This report pointed out key factors which the company had to consider to get succeed in the harsh time. For effective improvement, A.C. Gilbert should consider the action and contingency plans given for the strategy and process which would improve the company’s working and overall performance.

Appendecies

Exhibit 1:

Exhibit 2:

Exhibit 3:

End Notes

Anantwar, Swati G., and Rajeshri R. Shelke. "Simplified approach of ANN: strengths and weakness." Int. J. Eng. Innov. Technol 1, no. 4 (2012): 73-77.

Arzu Akyuz, Goknur, and Turan Erman Erkan. "Supply chain performance measurement: a literature review." International Journal of Production Research 48, no. 17 (2010): 5137-5155.

Oke, Adegoke. "Innovation types and innovation management practices in service companies." International Journal of Operations & Production Management 27, no. 6 (2007): 564-587.

Bessant, John, and Sarah Caffyn. "High-involvement innovation through continuous improvement." International Journal of Technology Management 14, no. 1 (1997): 7-28.

BSBMGT616 Develop And Implement Strategic Plan

Instructions to the Writer:

1. There are 3 different documents attached to this email, necessaries to answer this Assignment.

Doc 1. Aussie Fitness – Case Study

Doc 2. Milestone Project Phases

Doc 3. AF Centre Corporate Marketing Plan Performance Review

2. Please, do not modify the questions or sub-titles in the tables of this Assignment. Fill up the tables just with the information the trainer is asking for in each table. Otherwise, the trainer will mark them as “Unsatisfactory”.

- I just want to avoid any similar situation as happened with the last Assignment -

3. Some questions got 2 or 3 small questions on it.

Those questions are identified as (Answer a & b) or (Answer a, b & c). Do not forget to answer all of them, otherwise the trainer will mark them as “Incomplete Answer”.

- I just want to avoid any similar situation as happened with the last Assignment -

4. Please, I would like just the questions and answers identifies by Number or letters in another document.

I do not want the answers in this template.

Thank you in advance.

Kind Regards

BSBMGT616 Develop and implement strategic plan

Assessment description

You will prepare a formal SP (Strategic plan) for the owners Mary and James Franklin of the Aussie Fitness Centre Chain/Brand.

Assessment Procedure

From the Aussie Fitness case study – Attached to this email, you will create a SP (Strategic Plan) for the organization, prepare the plan following the formal report style layout:

Introduction to AF

The Aussie fitness center is one of the fastest-growing fitness corporations which was founded in 2001 in Perth and is owned by Mary and James Franklin. The Chief Executive officers of fitness centers are Mary and James Franklin. Its Head office consists of General Manager Human Resource, Finance, Marketing, and other training and support staff. Rented facilities of Aussie Fitness center has located near to each city largest shopping center and in future Aussie fitness center has to expand its business nationally and internationally. With the increase in demand Aussie fitness center mission is to increase its number of centers. In the United States and the United Kingdom (UK), Aussie is expanding its branches. Per center investment required by Aussie fitness center is $300,000. The Aussie company use to conduct seminars for its promotion in 30 kilometers of its radius of the business. One of the key success of Aussie fitness center is the ability to offer Cardio Equipment, Barbells and weights, fitness accessories, strength equipment, supplements, commercial gym, and boxing MMA. Lambert consultancy has expertise in market research data and due to its expertise, Aussie fitness center has to contract the services of Lambert consultancy. Aussie does not require adaptation and they have to keep their standardized product and services while expanding its branches internationally. Aussie offer high-quality training because its trainers are highly qualified and have special training in their field of industry experience and interest. Marry and James has to use fair leadership skills in organization and they are increasing the skills and knowledge of employees to increase the organization productivity and reducing the employee turnover. To achieve the vision and mission of the company the organization is providing modern fitness techniques to its customers; this required an open honest and open communication of high management with its employees. In the future success of the business, the organization required more attention towards changing physical techniques with time and adopt a new one to retain loyal members and increase its reputation for future business.

Executive Summary

The makeup of the industry that we will be working on has been continuously changing. A healthy growth aspect can be seen in the industry as a whole. The industry suffered a lack of revenue during the global financial crisis. Now the spending on fitness has been on an increase. A major change in the industry is the induction of such provisions as the 24-hour gyms. The main features of these new additions are that they are affordable and accessible at any point in time. The importance of health and fitness has increased over some time. The obesity level in Australia is on an increase. The need of the hour is that the gyms provide services that are affordable as well as better in quality. The industry will slow down as the number of competitors has increased over time. The customers have a large number of options when it comes to fitness centers. These factors will affect the business of the fitness center that we are considering.

The Aussie fitness center is one of the biggest fitness centers contains several branches near or at biggest malls of the shopping centers. The Aussie fitness center is very popular in all age group people because of its best services. The CEO of Aussie fitness center required to expand his business nationally and internationally and increase sales up to 5% at the end of this year. The market shares are expected to increase by 20% at the end of this year.   It is required that Aussie fitness Should advertise the business to achieve its strategic plan. The employees should be trained and qualified enough that the new techniques and technology adaptation is easy for the business. The company is working 24 hours to provide the services. This is done to take up the maximum share in one of the fastest-growing markets in the country. The company started work in the year 2001. The company sees growth as one of its major objectives as the demand for the service increases. The business is expected to cater 30 people per day while having to recruit 5 people as staff members. There will be a certain percentage of these people who are repeat visitors. The company was targeting the people who were born from the years 1946 to 1964. The company is now trying to attract other age groups as well. This will help the company to expand its customer base as well as to cover up the running costs of the business when the season is off. The company is also making its presence felt on the internet by making a new more attractive website.

Purpose of the report

There are many purposes of this comprehensive business report on an Aussie business that is working in the fitness industry. If we talk about the company, we see that the company will take the direction from this report as it contains the mission, vision and similar strategic management aspects. The investors will be more closely looking at the sections showing the growth aspects of the business. The company will also know better about the environment that it is working in. For the internal environment, it will see the strengths and weaknesses while for the external environment it will see the opportunities and threats. The company can also take help from this report as this provides ample information on the various aspects of running the business. The report also describes the various aspects of growing the business which will help the company when such decisions have been taken by the company. The other important party that will keep a close eye on this report is the investor section. The investors will see what the company has to do and how it would approach the desired scenario. They will see whether the company has the resources to successfully undertake the proposed growth projects and then they will decide whether or not to invest in the company. The employee will also have a look at this report to know exactly what is expected of them during the business. The general public will also have a look at this report to know the facts about the company. Customers will be helped in assessing the marketing efforts of the company and the ways in which the company will approach them. Competitor’s analysis will help the company to analyze the overall stature of the industry.

Vision Statement

By applying the historic approach, Aussie fitness center distinguishes themselves from other competitors through providing its services to all age people in the community. Our vision is to be considerate one of the top entertainment centers focused on the health and well-being of its members under innovative and specialized training systems

. Mission Statement

AF mission is to provide an entertaining and educational experience that meets the requirements necessaries for a healthier lifestyle adjusted for each member of the family and/or the community.

Values

Inclusive - AF aim to include the whole community, young and elderly generation, in the same environment.

Quality Assurance – Assuring quality of products and service to AF internal and external stakeholders.

Commitment - by integrating the entire community.

Lifestyle – Promote and encourage a healthy quality way of life.

Education - Inform the community about the different ways we can support them in living a more mindful way of life.

Connect: Incorporate a fun and safe culture into everything we do without community.

Key Performance Indicators (KPI’s) Objectives and Goals

From the Human Resource/Business Plan bring across and or provide the SMART KPI’s/objectives for AF using the SMART format and goals that you have identified they want to achieve. * Note: KPI’s should always be SMART

Objectives:

Achieve a market share of 27% by June 2020

Open two branches one in the UK and one in the USA by the end of next year.

Within one-year time open another center to cater to the needs of Perth residents.

Provide services to sportsmen and women within three months.

Reduce all the expenses by 10 percent within the next year

Update all the processors to the latest technology within the next quarter.

Marketing Objectives

Conduct seminars to increase sales up to 5% at the end of this year.

Attract niche customers to gain competitive advantage

Increase market shares 10% at the end of this year by expanding business nationally or internationally.

CM’s and ACM’s are to work with the Sales and Marketing (S&M) Team to discuss tactics and trends to attract new members and keep existing members interested in their respective centers. Milestones (Answer a & b)

Project milestones are flagged as important events and positive accomplishments for AF (Aussie Fitness) and the workforce team.

AF would like to implement a Dash Board System in to the fitness centers for more accurate reporting with regard to monitoring Key Performance Indicators and Milestones.

a). Complete the framework below providing four (4) points in each section for AF in reaching a milestone of implementing the Dashboard System as a pilot test initially in to the Sydney Centre.

b). Discuss above your framework what the milestone will achieve consider:

Benefits of the introducing the Dashboard system

Live, reliable/timely data

Shows trends

Morale

Efficiency/Productivity

Team work

Achievement

Recognition

Read the following and use the information as a guide before completing the chart (Doc 2. Milestone Project Phases – Attached to this e-mail)

Figure 1 - Milestone Framework

Initiate

Plan

Execute

Close

E.g. Produce a proposal for the owners of the details of introducing a dashboard software system

Obtain quotes

Set Quality control Checks

History

1.Increase the market shares of the company up to 27%.

Increase sales

Market research to increase the number of branches.

Continue

2.To cover the deficiency of professional and qualified staff

To increase customer satisfaction

Two staff members with professional certificates and specific field qualification should be select recruit and induct in each fitness center

History

3.Reduce turnover and absenteeism of Employees

Set standards during recruiting process.

Follow the standards to retain employees.

History

4.Increase net earnings at least 10%.

Control the expenses

Minimize the variable cost of per customer.

Continue

b) To increase market share, it is required to increase the sale and it the goal of the organization to increase the market shares up to 27%. The company has to focus on market research and increase the number of branches in those areas which have more demand for the gym and they are neglected by the competitors. The company should plan to open 2 branches at the end of this year for increasing the customer base. It is required to do more advertisement for the gym through conducting seminars and increase the productivity and efficiency of gym staff. Teamwork is required for the advertisement of the business which accomplishes goals at a specific time. If any business wants to expend itself then it is necessary to consider the wants and needs of the customer and for customer satisfaction more professional and experienced staff with having a certificate in professional training. The company has to reduce absenteeism and turnover of the employees by setting policies at the time of recruitment that may help to reduce the absenteeism and turnover rate. The compensation of employees should be adjusted according to skills and experience. The employees should be bound to follow the rules of the company and show morale in the future. The AF company should control the expenses and increase net earnings of at least 10% at the end of this year. It is only possible with efficient teamwork to minimize the variable cost of per customer. The goals can only be achieved if they are executed inefficiently. The AF fitness should set a goal to achieve success in future time. The reputation of the company can only be achieved by giving better product and services at a lower cost which is affordable for all income person.

Training and Development (Answer a & b)

a). From identifying the above KPI’s/objectives complete the Communication Skills example and provide three (3) more training sessions would be relevant for the owners of AF to provide for their internal stakeholders, and the benefits for all the stakeholders involved.

b). Above your table discuss the importance of AF training their internal workforce, and the benefits it has for all parties.

Table 1 – Training and development Benefits

Initiate

Plan

Execute

Close

Communication Skills

All AF staff will be trained to communicate with internal and external stakeholders in a consistent manner, no matter which state or country the AF center is located.

Consistency in service from AF staff

Everyone trained the same so all employees are sending the same consistent message.

Feel confident in their communication skills

Participation certificate

AF benefits as membership retention remains consistent.

Productivity increases.

Absenteeism reduces.

1.Sales training

All staff should be trained in terms of needs of the customer and their other characteristics.

Train the staff to handle dissatisfied customers.

Conduct the seminars near to the branches of the AF.

Give incentives to employees on achieving specific targets.

Use modern promotional strategies and make advertisement through internet e.g. Instagram, Facebook and twitter and other social media

Sales increases.

Market shares increases.

2.Proffessional accounting training

Staff should be trained to make accurate accounting records giving ample information.

Make proper budgeting to improve the efficiency of the business.

Accounting staff get professional accounting training through good training centers.

Recruit more competent and qualified Accounting Staff

Install latest accounting software and train staff upon them.

New software’s are implemented in AF.

Budgeting is proper.

Sales increases.

3.Customer services training

All staff should be trained in terms of needs of the customer and their other characteristics

Increase customer satisfaction ratings from 87% to 89%

Qualified employees appointed with having specific specialization

Give employees customer training during duty hours by conducting training sessions.

Improved customer satisfaction

Increase of customers in AF.

b) It is important for AF company to give proper communication training to employs so that they can easily communicate all age group customers. To improve Sales and market shares the sales related training is very essential. For accurate accounting analysis it is important to take professional accounting training to handle the software. The customers satisfaction is the key of success it is required to give proper customer training to all employees and conduct training curses during the duty hours.

Financial (Answer a & b)

a). Using the AF corporate marketing plan performance review for year end, complete the tables with the variance between the forecasted/budgeted amount and actuals.

(Doc 3. AF Centre Corporate Marketing Plan Performance Review – Attached to this e-mail)

b). Identify the highest favorable and unfavorable variables and discuss why this might have occurred.

Table 2 – Sales Forecast Year 1

Forecasted Amount

Actual Amount

Variance

-/+

Favorable/Unfavorable

U/F

Sales

Corporate Employees

$298,783

$258,935

+ $39,848

F

Regular Clients

$242,077

$280,952

-$38,875

U

Total Sales

$540860

$540,860

$0

BE

Direct Cost of Sales

Corporate Employees

$29,878

$47,357

-$17,479

U

Regular Clients

$24,208

$28,349

-$4,141

U

Subtotal Direct Cost of Sales

$54,086

$75,706

+$21620

F

Table 3 – Marketing Expenses Year 1

Forecasted Amount

Actual Amount

Variance

-/+

Favorable/Unfavorable

U/F

Marketing Expense

Pamphlet Production

$1,400

$1400

$0

BE

Website Production/Maintenance

$9,200

$9,218

-$18.00

U

Other

$14,000

$38,600

-$24,600

U

Additional Salaries

$0

$24,600

-$24600

UF

Total Sales and Marketing Expenses

$24,600

$73,818

-$49,218

U

Table 4 – Website Development Year 1

Budget

Amount

Actual Amount

Variance

-/+

Favorable/Unfavorable

U/F

Web Development

Website Completion

$9,200

$8,100

+$1,100

F

Total Web Development Budget

$9,200

$9,200

$0

BE

Totals

$19,400

$17,300

+$2100

F

In the first section, corporate employee sales are favorable because the actual sales are more than expected sales and sales to regular clients is unfavorable because the actual amount of sales are greater than the forecasted amount. Total sales are at the breakeven point that total sales actual value is equal to forecasted total sales. In the second section of sales, actual sales to corporate employees are more expensive as compared to it was forecast so it is unfavorable. The regular clients in the second section of Sales show unfavorable results because the actual cost spent on sale is more than the budgeted cost. In marketing expenses for the production of the pamphlet, the actual expenses are equal to forecasted and it is at breakeven point. Web production maintenance expenses are unfavorable with a negative variance of $18. Other expenses are unfavorable because actual expenses reached to 38,600 and they were forecasted only $14000. Total sales and marketing expenses are unfavorable because the variance is negative 49,218. Which means that sales and marketing expenses are more than double as compared to it was expected. There is a need to make proper marketing strategies which saves cost for future projects.  The total website development budget is favorable and the company is expending less than it was expected in the past.

SWOT Analysis (Answer a & b)

a). Conduct a SWOT analysis of the business with a minimum of four (4) in each quadrant.

b). above your SWOT discuss the main areas that you have identified for the owners of AF to be able to take action and make informed decisions.

Table 5 - AF SWOT Analysis

Internal

Strengths

Weaknesses

Loyalty of customers

Convenient location

Among 370 clubs it's the biggest fitness center

Technology

Technological advances

material development

usage change and customer preference

Strong supply chain management

Competitive prices

24/7 Service

Consumer equipment brand awareness

Advance technology – that has room to be

Upgrade

Classes of fitness doesn't match with every person time table

High cost as compared to competitors

short on space

Inability to use technology

Language barriers

Limited financial resources

External

Opportunities

Threats

To meet the needs of customers innovation can produce new product and services.

Increase sport popularity

Daily routine / Habits

Increase interest in fitness shown by social media

Government incentives to reduce unhealthy lifestyle

Championships in bodybuilding in the country give them a high recognition

A campaign by educational institutions against obesity.

It is easy for smaller competitors to focus customers more easily

The economic downturn

High energy cost impact our profits

Political Instability

Changes in taxation Laws

Constant advancements in Technology

A campaign by some people against the use of Protein drinks

b)  The technological aspects that are involved are the availability of the latest equipment, the speed at which the current technology can out date. This is a very critical aspect as the technology changes at a very rapid pace. The businesses that are not paying need to each and every aspect of the technological environment will not be able to survive for long (Phadermrod, Crowder & Wills, 2019). The owner of AF has to adopt the new technology because the rapid change in technology may make them outdated and this may create a space for competitors to grab the customers. The customers’ needs and preferences have changed very rapidly and the need for any business to adopt new techniques and provide new services according to the need of the customer. The change in the legislation of technology is also expected. The company will have to keep an eye on any happenings in the external environment that can affect the company in the normal course of the business. The owner has to focus on the downturn in the economy and make remedies according to it. It is necessary to reduce the cost of the gym accessible to all classes of the community to take competitive advantage. The companies have to follow the regulations for their protein diet and all food supplement products. The government gives incentives for reducing the healthy diet and AF have to be very careful about using those food supplements which are unhealthy and that may cause serious health issues. The taxation policies change with the passage of time rapidly. The company should be aware of the change in the policies of taxation and the owner should go through the policies of taxation. The availability of credit is a big issue for the companies who purchase their products on lease. The company has to make proper policies for credit purchases. The new business should have enough space that every department is managed easily. The location selection is a very important factor for the success of any organization. It is necessary that the company should reduce its expense and cost that is easily approachable for the whole community.

PESTLE Analysis (Answer a & b)

a). Conduct a PESTLE analysis for AF in a table format with four (4) in each quadrant.

b). Above your table discuss the important factors that you see AF need to be particularly aware of.

Table 6 – PESTLE Analysis

Political

Economical

Political instability

Changes in labor law

Tax implementation

Amendment in legislation

Instability in economy

Inflation

interest rate

Credit availability

instability income of customer

Social

Technological

Referencing of family and friends

Influence of social media

Life style

Fitness trends

Competitor technology

Innovations

Change in equipment

Technology legislation

Legal

Environmental

Health & safety laws

consumer protection

Ethics of Marketing

Labor law

Severity in temperature

Natural disaster

Change in climate

Weather

The political instability is unpredictable and it is very critical for the business of the company if there is an instability in political environment. The labor laws may change with the change in government. The new government may implement high taxes on the business of AF company. The rates of taxes will also directly affect the organization as it has to charge the customers a higher amount if the taxes are higher. With higher taxes, it will become a little expensive and difficult for the company to provide the same quality of services to its customers. The state of the economy also affects the organization as this aspect directly affects the purchasing power and disposable incomes of the general public. The company will benefit by consulting the government as it will know about the various obligations that it has towards the government. On the other hand, the company will also know the ways in which it can acquire certain benefits from the government. The discussion will also include the steps that the government can take to improve the current situation of the industry. This will help the company to draw a complete picture of the scenario that it will face regarding the government. The stakeholders include the external parties that are directly or indirectly affected by the actions of the firm. The stakeholders can be external as well as internal. The most important external issue these days is the environment that is affected negatively by any business activity. By studying the stakeholders in a greater detail, the business will be able to know what improvements can be made to the existing model of the business. The environmental issues can create some problems for the business and they can also provide some very attractive opportunities for the companies. In a recession, the organization should expect to have a lower amount of revenues while in the boom, the revenues of the company will prosper. This will affect the commitment aspect of the business objectives. The business will not be able to serve the customers with the same level of commitment as before. If we see the change in legislations, the government may change the laws regarding usage of certain food supplements. This may affect the business of the organization. This will hurt the organization in a sense that the business will not be able to include all the societal groups in the business that it is doing (Johansson, & Andreasson, 2016). The people who want to use certain supplements will be excluded from the scenario. The socio aspects that will affect the business will be the availability of the proper training staff. This will in turn depend on the availability of the trainers. The remuneration paid to them will also play a crucial role in this decision (Richardson, Smith, & Papathomas, 2017). A very important aspect that relates to this particular business is the effect that family and friends have on a person to join in.

Competitor Analysis (Answer a & b)

a). Create a competitor analysis of four (4) fitness center’s that offer similar productsand services to AF.

b). Above your table discuss AF Unique Selling Point in (USP) comparison to the competitors you have identified.

Table 7 – Competitor Analysis

Business Name/Location

Strengths

Products

Services

E.g. Aussie Fitness

Owners strong industry experience Locations

Fully equipped fitness center with a range of weight resistance equipment

Group Fitness Timetable

Personal Trainers

Various classes available for all member age groups

2.Good Life

Various amenities

Membership has many perks

Nationwide numerous clubs

Fitness exercise ball

Fitness resistance tube

Fitness deluxe kit

Provide latest machine and equipment

Training for use of food supplements

3 . Jets

Providing good services at low price

High customer satisfaction

Efficient franchiser system

Treadmill

Smith machine

Leg press

Jet physical fitness training

Nutritional counseling

Cardiovascular training

Negative resistance training

4 . Anytime fitness

Skilled workforce

Franchise owner takes constant training

Detailed and in-depth operation and marketing training.

No close day

Form rolling

Boxing kit

Machine fly

virtual coaching,

wellness consults

Private restrooms

4. F45

New programs of workout

Multi-Screen TVs display daily exercises 

45-minute-highconcentration training with heart monitoring

Apps for booking and management-

Ab mat

Power pushups

Resistant loop bands

Kettle bell

Exercise group Classes

Personal training

b)  AF is providing best services among all competitors and has a high position in the market. The 24/7 services of AF fitness company gives them a competitive advantage. The AF is popular in using the latest techniques and technology according to the wants and needs of the customers. The AF branches are present near or at the biggest malls in Australia. The services provided by AF company to all age group people. The access to the AF centers is very easy for all class of the community. The products use for fitness is healthy and safe to use. These things give AF company a great competitive advantage among the whole fitness industry.

Drafting Priority Issues (Answer a, b & c)

a). From conducting the above SWOT and PESTLE environmental analysis, identify four (4) issues that will affect the fitness centers business and place them in the below table.

b). Place the issues in order of priority for AF to be able to deal with them.

c). Provide a reason for each issue of the advantage of addressing problem area and the disadvantage of not addressing the matter.

Table 8 – Priority Issues

Priority Order

Subject

Issue

Advantages

Disadvantages

E.g. Competition

Local competitor has opened up close by

This will lift the standard of the AF Fitness center e.g. Customer Service

Possibility of losing members.

Competitor might force down membership costs which AF cannot compete with

1.

Growth

Increase off-peak

memberships.

Increase the market shares by 10% at the end of this year.

Off peak business pay higher rates and it could be expensive for the AF company.

2.

Technology Modification

Introduce more advance technology

To take competitive advantage of being more efficient in technology adaptation.

Costly

Difficult to implement

3.

Increase in sales

Increase brand awareness such as: promotions, advertisements in social media

Increase sales up to 5% at the end of this year to increase in retained earning up to 10%

High cost on Promotion

4.

Health and Safety rules

unhealthy food supplements

Safety of health and no fear of any illegal activities and default.

Competitor may use products which gives better results of fitness.

b. The company is showing low growth due to its off-season. The AF company management has to make a proper strategy for increasing off-season membership. The cost may be higher at offseason but the strategy should be relevant enough to keep all the cost and expenses in balance. The AF company have to focus on technological innovations and modification which can give a big competitive advantage to the AF company. To increase in sales, it is necessary to make good promotion to areas which are across 30 km of the branch of AF fitness. Sales promotion can also be done through the internet by using different applications and social media websites. To avoid the bad reputation of the company by giving unhealthy food supplement company should take care of the health and safety standards of the food supplements. The company should appoint and train those people who have health and safety standards awareness and they have good information about all food supplements to select those food supplements which can give better results in fitness and health.

C. The strategic goal of the company is to increase growth This includes the increase in market share with the help of promotion and increasing brand awareness. This is also evident from the fact that the company wants to increase the number of members that it is catering. In fact, almost all the objectives are pointing to the same strategic direction for the company and that is the growth aspect. The increase in off-peak membership will help to increase market shares in off-peak of the gym and it is also helpful to increase sales target at the end of this year. The increase in technology intense competition among the business class. THE business which adopts the new technology will be more successful as compared to business which is using outdated technology. Outdated technology maybe results in losing customers and their loyalty. Increase brand awareness such as: promotions, advertisements in social media by 2020. This issue is specific as it describes what to do. The cost related to this objective will be known to the company so it is measurable, the attainability aspect depends upon the execution. The company should follow health and safety standards because the government has stick rules regarding health and safety. This will be helpful for the company to gain the loyalty of the customers and it will be also helpful to get rid of the fear of default.

Gap Analysis (Answer a & b)

From the above identified issues there will be gaps with regard to what AF will be required to do to address the issues. Therefore, a gap analysis is required to be conducted of what AF strategies AF are required to implement in order to fill those gaps. These could include Human, Physical and Financial Resources.

a). Complete the table below bringing down the issues from above, identify the gap that AF is missing, provided a strategy and assign responsibilities to the task of filling the gaps.

b). Above your table discuss the importance of conducting the gap analysis to identify for AF what strategies they need to implement to be overall a high competitor within the overall market of the fitness industry.

Table 9 – Gap Analysis

Issue

AF Gap

Strategy

Responsibility for Gap

E.g. New Local Competitor

Competitor offering no lock in contracts

Compete by offering any new member signing up for the month of July free no lock in contract

Offer any new member who signs up for 12 months one month’s free membership for them and a friend.

Owners

Centre Managers

Sales Manager

1. Less space

Competitors offering more space

New projects should have sufficient space which are launching at the end of this year

acquire space from other businesses.

operation manager

Manager admin

2. Costly

Costly as compared to competitors

to reduce per client cost.

membership discounts offering.

Finance manager

Sales manager

3. Niche customers

Small competitors easily access niche customers.

conduct seminars to attract niche customers

advertisement through social media, messages and email etc

Marketing manager

Finance manager

4. Off- peak

The machines and trainers remain idle during off peak period.

discount on membership during off- peak period

launching off- peak projects.

Operation manager

Sales manager

b) The AF company should make and execute the strategies to provide good space to customers and giving them a good environment that they feel relax to visit the gym. Space should be managed according to the need and number of customers. The AF corporation should try to increase the space by acquiring floors or buildings beside the gym. The responsibility of providing enough space for all activities of the gym is on the Admin & operation manager. The AF gym is costly as compared to competitors the sales and finance manager should make strategies to reduce per client cost and give membership discounts annually, semiannually and quarterly. The Niche customers are the focus of the competitors and AF management should try to target the niche customers by advertisement through conducting seminars and the use of other resources to attract them. The responsibility of the Marketing Manager to advertise the Services at less cost. AF company have fewer sales during the off-peak season and the machinery and instructor remain idle during this time. It is required to launch different counseling classes and techniques to increase sales at the end of this year. To attract customers during the off-peak period the AF should give membership discount during that period.

Assessing Cooperative Ventures (Joint Venture) - (Answer a & b)

Mary and James Franklin are planning to introduce some supplementary services (particularly, remedial/sports massage, physiotherapy and chiropractic) on the second floor of the AF in the Sydney Centre. This will be the ‘pilot test’ for other centre’s.

a). They are considering a Joint Venture for this project, provide a discussion above your table about the advantages and disadvantages of Mary and James going in to a Joint Venture, include some of the information with regard to ‘Due Diligence’.

b). Additionally, identify the risks associated with a joint venture for AF.

Table 10 – Cooperative Venture Benefits and Risks

Joint Venture

Benefits

E.g. Access to established expertise and additional staff without huge expense

1. Both parties share the cost of initial capital and alleviating financial burden on each business.

2. Access to specialized knowledge at a low cost.

3. The credibility of the business may be enhanced because of the strong customer base.

4. Both companies will target the Large market easily and gain a competitive advantage in it.

Risks/Disadvantages

E.g. Clash of corporate culture and management styles

1.The Joint venture partner could get access to resources and technology.

2. Because of the compatibility problem and liability of partner mistake may cause a chance of failure of JV.

3. It is difficult to structure the agreement and it may create issues in the future.

4. It is sometimes difficult to withdrawal from some joint ventures.

a).Marry and James has recently plan to introduce the Joint venture with FILEX fitness center to introduce some supplementary products which may include remedial/sports massage, chiropractic, and physiotherapy on the second floor of the AF in the Sydney branch. The FILEX company had proved itself best in these supplementary services and Owner of the company is planning to make a Joint Venture with them. It will be easy for both organizations to alleviate the financial burden together of the new joint venture. The cost and expenses incurred in the expansion of the project will be divided among both organizations. The AF company could get specialized knowledge and experienced staff in those supplementary services at low cost. The customer credibility may be enhanced by providing those supplementary services and this will result in making a strong base of loyal customers. This may increase in growth of the business and sales may increase up to 5% at the end of this year. The market shares can also be increased by the successful implementation of this Joint venture. By the increase in market shares, the company may get a competitive advantage in the large market easily. The JV company may be easily accessing the resources and technology of the AF company. The contract will bind both parties for a specific time and sometimes the company bears huge loss due to a long contract agreement. It is difficult for an organization to quit from the JV.

B) The risk associated with this joint venture may be involved the exposure of technology and resources of the company with the new firm which could be dangerous in the future by having the same firm in a competitive environment. Joint venture firms may also have some issue of compatibility. The failure in plan execution from one company may create a loss for another company. It is difficult to make such a joint venture agreement which can address all conflicting issues. The company has to be very vigilant while making JV agreement because sometimes it is difficult to quit from the joint venture.

Cost Benefit Analysis (Answer a, b & c)

A cost and benefit analysis/pilot test will help the Franklins on deciding whether to go ahead with the project of renovating space for potential joint venture opportunity of introducing supplementary services such as remedial/sports massage, physiotherapy and chiropractic.

a). Conduct a CBA, fill/edit the blank spaces, you can add more fields, or create your own information in the CBA. List the benefits of the costs, so that the payback period can be identified.

b). Above your table discuss the importance/benefits of conducting a CBA and a pilot test before launching products/services across an organization.

c). Below your table calculate the payback period and your recommendations for the Franklins as to whether they should go ahead with the suggested project or not.

b) Cost and benefit analysis gives the company information about the benefits taken from incurred cost. If the value shows more benefits then the launching of product and services will be beneficial for the organization and if the cost is more than the launching of product and services should be avoided. This analysis gives clarity about the unpredictable situation. There is a risk associated with the development of the product and providing new services. The cost and benefit analysis gives a proper understanding of the future product and services launch. It is helpful for setting goals and also helps the company to estimate the net benefit of the business. It is a very useful tool for decision making.

Table 11 – Cost Benefit Analysis

Costs

Category

Detail

Cost per year

COST

Construction

(1/2 Second floor)

Walls, painting, ceiling

$15,000

Furniture

Stools, Benches, Yoga seating

$15,000

Sound and light system

Premium sound towers, Virtual A/V system, speakers

$5,000

Personnel (4)

Salary including benefits

$120,000

Recruitment costs

$1,000

Incentives

$2500

Software license’s

JAVA, EViews

$2500

Advertising

Seminars and social media advertisement

$12500

TOTAL

$173500

Benefits

Category

Detail

Cost per year

BENEFITS

Extra Rooms for Services

Remedial Massage

$25,000

Use Updated software

Faster system increases in productivity/enroll new member in 15 minutes instead of 25.

$15,000

Modern technology

Improved customer service and retention as a result of advanced technology

$30,000

Joint venture with FILEX

Remedial/sports massage, chiropractic, and physiotherapy

$90,000

Market penetration

Better control over market research

$20000

AF Application development

Improve customer services

$7000

Accounting software

Time saving for clients

$5500

Virtual A/v system

For counseling sessions

$6300

TOTAL

$198800

C) Pay Back Calculation:

Costs $173500 (divided by) Benefits $198,800 = 0.87 of a year (approx.)

The calculations show that the benefits are more and costs are lower. The payback period comes out to be 11.5 months. The organization should take on the project as the benefits of the first year are more and costs are lesser.

Consultation (Answer a & b)

When considering a project as per the above scenario, consultation with relevant internal and external stakeholders will need to be conducted.

a). Complete the table identifying stakeholders, what information is required (sought) to be given by the stakeholder, when will this information be required and how will the information be provided.

b). Above your table discuss the importance of identifying when information is required within a task (project management). E.g. renovation of a building, certain stakeholders would be required to be consulted with before construction could take place.

Table 12. Stakeholder Consultation

Stakeholder

Information sought

When within the task/Project

Method

Architect/Builder

Plans drawn, Quotations, Timeframes (how long)

Beginning stages

Formal Meetings

Investors

Amount required and uses of finance

All stages

Formal Meetings

Customers

Benefits of the project

Beginning Stages

Interviews

Employees

Benefits of the project

All Stages

Formal Meetings

Front line staff

members of gym

All stages

Informal interviews

Chief executives

Planning about the project

All stages

Formal meetings

Mid line managers

Execution of the project

All stages

Formal meetings

Finance manager

Funds

Beginning stage

Formal meeting

b)The first and most important stakeholders are the investors and shareholders of the gym. It is essential to take information from them about the use of finance in the project. The investors should be consulted by conducting formal meetings in all stages of the project. The customers can give information about the services required for the gym in the beginning stage. The important consultants are also employees of the AF gym, they have direct dealings with the customers and they have information about the wants and needs of the customers. They are consulted in all stages of the business. The front line managers are required to conduct informal interviews with members of the gym to know about the requirements of the project. Chief executive should be consulted about the planning and development of the project in all stages of the project. Midline manager gives information during the execution of the project. The finance manager should be consulted at the start of the project about the availability of the funds required for the new project. Formal meetings should be conducted at the beginning stage of the project.

Gaining support for the plan

Discuss in a paragraph why a Draft of the Strategic Plan should be circulated to specific/relevant stakeholders:

Include in your discussion:

a) What important information will this provide for all parties involved?

b) What will you do with this information once you have received it back?

a) The information will be useful in planning and execution of the project. The investors are the Important stakeholders and it is important know about their will to plan a new project. The chief executive offices are important to consult because the planning of the project is totally depend upon them. The Finance manager gives the information about the finances needed for the project and the availability of the funds required to execute the project. The mid line managers gives important information about the project at all stages of the project. The front line employees get information from the clients about the wants and needs of the customer. The customers are the main focus in this competitive environment.

b) The information will be helpful to know about the expected success of the project. This information will also be useful to make strategic plan of the project and set goals to meet the expectations of the investors and customers.

Communicate the Strategic Plan (Answer a & b)

A communication plan outlines who you need to communicate with, about what, how you’re going to do it, and how often.

a). Complete the table below of how AF (Aussie Fitness) will effectively communicate the strategic plan with their workforce.

b). Discuss above your table the importance of clearly communicating the strategic plan to the relevant stakeholders, with a focus on how the plan will benefit them so that they will have more buy in to reaching the organizational objectives.

Table 13. Communication Plan

Key message

Sender

Audience

Method

When

e.g. Brief of organizational change

Owners

All departmental heads and center managers

Face to Face formal meeting with follow up Email

Beginning stage

Brief of organizational change

Departmental heads and center managers

All other staff in their respective department / center

Face to face formal metings

Beginning Stage

1.Increase in Sales

Marketing manager

Field staff in the advertising department

Presentations on the past figures of sales.

All stages through continuous feedback

2. Increase market share 10%

Sales manager

Marketing department

Forrmal meetings

Beginning stage

3.Increase branches

Owner

All departments

Formal meeting

All stages

4.Joint venture

Owner

All departments

Formal meetings

All stages

b) To increase in sales at the end of this year by 5 % it is necessary for the marketing manager to communicate the plan with all staff of respective department or centers and conduct face to face formal meetings at the beginning stage of the plan. To increase market shares it is required for sales manager to conduct massage to the marketing department that it could make some marketing strategies to advertise the AF gym in all classes and all age groups of the customers. The owner should communicate all department about the expansion of business nationally o internationally at the need of this year. The formal meetings should be conducted at all stages of the project. To increase the flexibility in business it is required to make a joint venture with firms having specialization in a specific area of the field. The owner should communicate the message to all departments and formal meetings should be held at all stages of the project.

Distribution of the Strategic Plan (Answer a, b & c)

Certain groups of stakeholders will receive particular parts of the plan.

a). Provide a list of which part of the plan is distributed to who and where parts of the plan will be displayed/show/uploaded?

b). Discuss above your table the importance of only providing only relevant information to particular stakeholders.

c). Additionally, discuss that the plan needs to be written a style that suits the audience using the organisationaltemplatesorstyle guideto create the report.

Table 14 – Distribution

Stakeholder

Relevant Part of Plan / Where (Displayed/Stored/Shown)

E.g. Front-Line Staff

Key Goals placed in a newsletter on the Intranet

1. Physiotherapist

To get up to date about techniques of physiotherapy.

2. Finance staff

To implement new software’s to make budgets and conduct analysis of the business.

3. Chief executive

Supervise to improve products and services of AF gym.

4. Owners

Make strategy for development of business internationally.

b) The physiotherapist should be up to date from the latest techniques of the physiotherapy because it is important for customer satisfaction. The customer has information about the trend and they may demand the latest techniques of physiotherapy. The Finance staff should maintain proper records in the latest software to conduct the accounting analysis and it will be helpful in future decision making. The chief executive office should try to focus on the quality of services that are providing in the gym. He should focus on new techniques which should be implemented in the gym. The owner should try to expand the branches of the business nationally or internationally to gain maximum market shares and recognition all over the world. The owners should try to maintain the quality of services in all branches through proper supervision.

Monitoring and evaluating the SP

Comparing performance of whether AF are on track to reach the organisational objectives is important.

Discuss the following:

1. Who is responsible for monitoring the SP?

2. What tools/method AF will use to monitor progress and how if the KPI’s are not working will be adjusted?

3. What software system this data can be obtained from?

1. The top management is responsible to monitor the strategic plan with the help of feedback of all the lower level managers and staff.

2. Benchmarking can be one of the tools that can be used to analyze the performance of this strategic plan. These benchmarks may be set up against the performance of competitors or the company’s own performance. Benchmarking should be done against the key performance indicators as standards.

3. The data can be taken from the company and competitor’s annual reports and financial statements.

Final Recommendations – Conclusion

The company has to maintain a good level of services that is provided to the customers. This aspect is related to the commitment that has been considered one of the values of the company. This will require a regular assessment of the environment and to adapt to these changes by bringing in the desired changes in the goals, objectives and other relevant documents. These changes have to be put in place and the review systems should also be there. The review system should be allowed to take effect and improve the things whenever there is some gap in the documented aspects and the delivery aspect.

Discuss the recommendations that you are providing to AF under each of the following headings:

Human resources/Invest in Workforce: Recruit more professionals and well-educated employees having specialization in specific area.

Communication plan: Span of control should be democratic which is helpful in giving better services.

Continuous improvement/KPI: It is necessary to adopt new technology and new machines for AF fitness center.

Physical, and financial resources: AF company finance manager has to make strategy while spending money on lease purchasing of new machines.

Technology/Dashboards: To gain a competitive advantage it is necessary to adapt new technology.

Financials: Budgets/Forecasting: – Financial specialist should be consulted to make financial budgets.

Conclude the headings by confirming the importance of AF ensuring continuous improvement of the SP and that the SP should not remain a static document.

The AF company should plan to recruit more educated and experienced professionals who have specialization in specific area. The span of control should be democratic for easy communication of all level of hierarchy. The new technology adaptation is essential to provide up to date product and services to the customers of all age groups. The company high staff should make a proper strategy with the help of finance manager to check the retain earnings and resources of the projects to make investment according to budgeted cost.

25. Electronic References

Johansson, T., & Andreasson, J. (2016). The Gym and the beach: Globalization, situated bodies, and australian fitness. Journal of Contemporary Ethnography, 45(2), 143-167.

Phadermrod, B., Crowder, R. M., & Wills, G. B. (2019). Importance-performance analysis based SWOT analysis. International Journal of Information Management, 44, 194-203.

Richardson, E. V., Smith, B., & Papathomas, A. (2017). Crossing boundaries: The perceived impact of disabled fitness instructors in the gym. Psychology of Sport and Exercise, 29, 84-92.

***************************END OF ASSESSMENT****************************

Budget Context Assignment

Revenues and Expenditures

[Enter name of student here]

[Enter name of Institution here]

Answer 1

The average of general sales tax for 6 states has come to be 8.82 % whereas percentage of my state is 9.4% which is a bit higher than average. West Virginia State is placed at fourth rank among the six states under consideration CITATION Wil02 \l 1033 (F.Fox, 2002). Western Virginia collects much lower sales tax as compared to country average and relies heavily on property taxes for income generation. This will also mean that overall prices of residential property will be lower in the state because people will not be willing to buy houses on which they have to pay heavy taxes

The imposition of taxes on various transactions can be found in much of the modern civilizations. Some tax collection has been reported as early as 2000 BC when sales tax was levied on general commodities. Romans took sale tax concept to rest of the Europe. Spain had national sales tax in the year 1342 with rates which escalate to 10 to 15%. There were many taxes imposed during the U.S. civil war which were combined to form the general sales tax. In the US, using sales tax dates back to the Pennsylvania license tax that was applied initially in the year 1821. The modern state taxes were developed as a result of depression of 1930’s. Initially theses taxes were progressive in nature which means that higher priced products will have a higher percentage of tax. This method was replaced by a flat rate of three percent in the year 1934. The first sales tax was levied in West Virginia in the year 1933 CITATION Wil02 \l 1033 (F.Fox, 2002) There are some states in the country which have no sales tax including Alaska. In the year 1999, sales taxes for state raised $ 164.4 billion while local sales taxes also raised an additional $ 36.2 billion making a total of $ 200.6 billion for the year. This collection of sales tax represented 2.58% of the personal income, consistent with the figures of almost whole decade. Percentage of sales taxes to personal income increased in the 1960’s till 1980’s, but stabilized gradually towards the year 2000 CITATION Wil02 \l 1033 (F.Fox, 2002). For a very long period of time, sales tax was the largest source of income for government and it still provides about one third of the total government revenue. The replacement of sales tax with the personal income tax was done because personal income tax is a form of direct tax. Revenues from direct taxes come straight from the pockets of consumers. Direct taxes have progressive rates and are charged to a wider range of people as compared to the indirect taxes. Indirect taxes have a single fixed rate that is charged to all people (F.Fox, 2002).

Answer 2

Property taxes are one of the major sources of revenue for both local and state governments. In 2011, property taxes made up 34.6 percent of total local revenues and 63.9 percent of local own-source revenue CITATION Ton19 \l 1033 (Moreno, 2019). In public finance, expenditures are pointed out first and then revenues are collected to meet these expenditures. Property and other taxes are adjusted according to the specific needs of economy.

State and local governments typically rely on income, sales and property taxes as their sources of tax revenues. There is a flow of resources from the federal government to state government and from state government to the local governments. Some states rely on the transfers from federal government to meet their expenses but most of the states initiate their own revenue streams in form of property taxes. From 1981 to 2008, property taxes remained stable as a percentage of total revenues and tax revenues for local governments. Due to a decline in other revenue sources, the percentage contribution of property taxes increased after 2008 CITATION Ton19 \l 1033 (Moreno, 2019). The housing crisis that led to the great recession did not have a considerable impact on property tax revenues. If there is a change in value of property, property taxes will be affected after some time because property taxes are calculated at the year-end values of any property. When property taxes were at their highest value in 2009, values of houses had already gone down for the last two years. Consequently, there was a continuous decline in property tax revenues for six quarters on the trot. Lutz (2008) suggested that the time lag between housing prices and property taxes is generally three years and elasticity of property taxes with respect to house prices is 0.4 which shows that a decline in price of houses will result in a lower reduction in revenues from property taxes. Thus, government will have to increase the taxes at lower percentage as compared to the decrease in housing prices.

If we talk about local governments, property tax is more important to areas in the Northeast than in the Southern part of the country. All six states mentioned in this discussion lie to the North east of the USA. Thus, property tax will be less important to these states as compared to states in the South. Louisiana and Hawaii are two states with lowest property taxes and both these states are in southern parts of the country. On the other hand, New Jersey and New Hampshire have the highest rate of property taxes and both these states are in the Northeastern part of the country (Moreno, 2019). In some of the Northeast states, property taxes account for more than 30% of total revenues whereas in the Southern part, most states rely on property taxes for less than 20% of their total revenues. Average property tax burden for an individual tend to be close to $ 1000 per year. A very small number of counties have an amount more than the average. From 2007 till 2011, 60 percent of the counties had an average burden between $ 500 and $ 1500. In about 13 percent of the counties, people paid less than the country average. Only a few counties had an average individual tax bill exceeding $ 4000. There is a less concentration of property taxes as a share of home prices as compared to taxes in terms of dollars paid. Small percentage of counties had a property tax bill that is in excess of 2 percent of value of homes in that area.

There is a difference among states when self-reported property tax burdens are considered. Most states have a property tax revenue per person from $ 1000 to $ 3000 but many states fall out of this range. From 2007-2011, ten states exceeded $ 3000 in terms of average property tax collection. Eight southern states had an average tax burden of less than $ 1000. When payments are considered in terms of value of houses, fourteen states paid between 0.5 and 1.5 percent in taxes. 11 states paid more than 1.5 percent of the value of houses. Variation in property tax burden is due to the differences in laws followed by various states. There is not much difference between housing prices or tax rates across various states. New York has the most variation in property tax burden relative to other states both in terms of absolute dollars paid and property taxes as a share of housing prices. New Jersey has a high variance in property taxes paid in dollar terms. Counties surrounding the New York City was among those which paid the highest property taxes per homeowner. All these counties paid property taxes in excess of $ 8500. The counties with highest property tax burden are from New York and New Jersey areas with twenty-two of the top25 counties were from these states in terms of property tax revenue earned. The counties that earned lowest amount of property taxes were in majority from Alabama and Louisiana. States towards the North East part of the country tend to have higher percentage of property taxes as calculated against housing values.

Property tax will continue to serve as an important source of revenue for the various states. As far as the current scenario is concerned, we see that there are higher property taxes in all the states under consideration with New Jersey being on the top. As discussed earlier, the difference between various states is due to different laws followed by them. If we see in detail, there is a higher percentage of local government revenues in property taxes as compared to the receipts from federal government. This means that Western Virginia government relies heavily on property taxes from the local sources. Property tax is usually tied to the education spending and has important implications for school financing and health of education as a sector. When we study property tax as a percentage of housing expenditure, it affects cost of residential investment, the housing sector and the personal finances of people.

Answer 3

Over a period of time, local school districts were responsible for funding K-12 education in the country with the help of property taxes. Since 1970, the burden of K-12 education has been equally divided among the state and local governments. The federal support has been less than ten percent of the total amount. Across the states, there is a considerable variability in the expenditure made ranging from 28 percent in Illinois to more than 90 percent in Vermont and Hawaii. States and districts share costs theoretically but state governments have greater power to influence education spending and distribution of funds to the concerned school districts. Policies set by the state governments affected both state and local funding to the public education. Education funding formulas are used by states to estimate their ability to contribute towards education and determine the minimum amount of funding per student in each area. There is a considerable difference between goals set by states in terms of education funding which means that all students across one state will have same resources available in terms of education funding. Students with higher needs should have more access to resources. There is another concern for the policymakers to ensure equity for the taxpayers. One form of this equity is that all people pay the tax at same rate regardless of where they live. Another form of equity is that the districts are funding education according to the tax collection made by them and their overall fiscal capacity. People who have experienced an unusual increase in property value will not have to pay increased property taxes and state funds have to be targeted to districts which do not have enough resources. Lastly, policy makers have to analyze whether the model used by states to fund schools provides sufficient resources so that adequate level of education can be provided to the children.

These issues are further complicated by the fact that there is no direct correlation between student needs and ability of district to fund education. Most states consider the ability of districts to fund schools as part of their funding model. A simple way to think about this is in terms of the total value of property that can be taxed as per the number of students in that district. At any given tax rate, a district with more wealth per student will raise more revenue as compared to a district with less property wealth. The students in districts with less property wealth need more resources to fund their education. Property wealth depends upon the amount and type of property in the district along with the house prices. Some cities have large population of disadvantaged students and abundant property wealth at the same time. In many states, there is no or weak relationship between wealth per student and median family income and poverty rates. Average correlation across 16 states was 0.25 CITATION Mat17 \l 1033 (Chingos & Blagg, 2017). These 16 states included three states which have been studied by us and more specifically, they included my designated state Western Virginia.

Many funding formulas try to provide more resources to students with higher needs because the relationship between district ability to pay and student needs is not a strong one. For every district, there is a basic level of combined contribution from state and local funding which may be adjusted for student needs depending upon characteristics of district and students. This will allow that more funds flow to students having higher needs. Many states adjust the level of funding based on the size of various districts. Smaller districts will have lower funds per student available to them and districts will huge areas will have a higher transportation cost to incur. Most states analyze student’s characteristics in order to fund schools. Some states see special education as their primary funding base while others see English language learners as a funding base. Another aspect to decide on funding base for districts is to use a weighted average and number of enrolled students is used as a weight. With weights allocated, there will be a little more amount of funding required but the distribution will be equitable. Weights can also be attached to the amount of funding allocated for each category. There are certain disadvantages of using weights for funding allocation. Some states might try to increase the number of students who will be weighted higher and thus will try and increase the funding. There is another important consideration for states regarding the enrollment calculation at any given point in time. Funding based on attendance will result in lower funding for schools having lower attendance rates. These schools will have problems in allocating fund proportionately to all the students CITATION Ken17 \l 1033 (Shores & Ejdemyr, 2017). These schools will have to allocate more resources to serve disadvantaged students. Some states have tried to implement a variant of weightage formula by allocating higher weights to the students having higher needs.

There are separate funding formulas which result in 72 percent of the funding to go to K -12 schools in any district. In the discussion such as this, district is used as a basic unit of analysis. The first calculation for states is the funding level of each district and later student needs are categorized into different bases. A number of states calculate the resources required to provide education to children e.g. school staff salaries. Once the district targets have been identified, states will have to decide on the percentage of this funding provided by the state government. States typically contribute more towards the districts that have higher number of students and it generates lower amount of money in terms of property taxes CITATION Mat17 \l 1033 (Chingos & Blagg, 2017).

Foundation aid or grant has been used by 37 states as of 2015 CITATION Mat17 \l 1033 (Chingos & Blagg, 2017). A minimum amount per student is decided by the state and then an estimate is developed regarding the district’s ability to pay.

Some states will not get any funding in this scenario because they can meet the basic amount on their own. In the scenario studied by us, West Virginia is already earning a higher percentage of property taxes as compared to the country as a whole. This means that it can generate enough funds for financing the education on its own. Among the six states which are under consideration, only Delaware is the state that will receive some portion of funding from the federal government. All other states are self-sufficient in this regard. The expenditures made by the various states present a logical picture. The state that receives some funding has to spend a huge percentage on education because there will be more students and less tax generated. In other words, the tax per student is low in this case. The Western Virginia state is also spending high percentage on education meaning that there may be a very large number of students to be catered in this state. Maryland is the state that is ranked number 5 on tax collection as well as spending on education. This means that the state is undertaking proportionate spending on education out of its tax revenues. Pennsylvania is another strange example because it is earning taxes which are just above the US average but it is spending huge amount on education that is well above the US average spending. We can conclude that education spending is almost equally important for all the six states considered.

Answer 4

Public welfare expenditures include helping the needy and poor families through cash payments, security incomes and other payments made directly to individuals. Some payments are made to physicians and other service providers under various programs. In the year 2016, state and local governments spent $ 638 billion or twenty-two percent of total spending on public welfare. Almost all the spending on welfare was undertaken as a part of operational costs, such as payments made to medical practitioners etc. The largest payment with respect to operational costs were vendor payments for medical services which was $ 451 billion in 2016 or 84 percent of state and local welfare spending. The remaining amount was used to provide cash assistance to the needy families. Public welfare funding is directly provided to individuals by state agencies. Some of these programs are partially funded by the federal government. A larger percentage from state direct general spending goes to public welfare as compared to local direct general spending. 91 percent of state and local direct spending on welfare happened on the state level. In 35 states, local spending is less than 5 percent of total direct general spending on public welfare. In all states, local spending accounts for less than 20 percent of the total direct spending on public welfare. California, NY and Wisconsin were the top three states that spent highest amounts on public welfare. The major source of funds for public welfare spending is federal transfer which amounted to $ 422 billion in 2016 and measured up to 66 percent of state and local public welfare spending. The remaining 34 percent were managed by state and local funds.

In 1977, state and local spending on welfare amounted to $ 137 billion while in 2016, the same spending amounted to $ 638 billion. Much of this expenditure was made due to the increasing cost of healthcare. From 1977 to 2016, there was a slow growth in state spending as compared to public welfare spending. In 1977, 13 percent of the amount went to public welfare whereas in 2016, this proportion was 22 percent. State and local government spent $ 1972 on public welfare per person in 2016. Federal rules are used to identify people who will benefit from public welfare spending CITATION Hea17 \l 1033 (Hahn, Aron, Lau, Pratt, & Okoli, 2017). The accessibility options for different people are specified from within the available programs. There is a difference in proportions of population that take up social welfare programs offered by the federal government. States must take serious actions to simplify the processes required to undertake some social welfare payments CITATION Cro17 \l 1033 (Cross-Center Initiatives, 2017).

The highest welfare spending per capita is recorded in the District of Columbia and it amounted to $ 5332. The least spending was undertaken by Georgia which amounted to $ 1139. Among the six states under consideration, VA spends less than $ 1500 on public welfare. DE is the only state that has spent more than $ 2500 on public welfare. Three of these states fall in $ 2000- 2500 category CITATION Cro17 \l 1033 (Cross-Center Initiatives, 2017). There is a problem with using per capita spending as a metric to measure public welfare spending. The reason is that there is no information regarding state demographics in this measure. The states which spend heavily on medical facilities show that they have a higher number of old age and disabled persons as compared to other states because these two segments account for almost two thirds of total spending on medical aspects. States which spend lower on healthcare tend to have a higher number of children in their population because children are inexpensive to cover in terms of medical aid. Another factor affecting lower per capita spending is the strict eligibility criterion for such payments. Another metric that can be used to measure health care spending is spending as a share of low-income population. The District of Columbia spent $ 19426 according to this measure. There are certain rules set by federal government for eligibility of health care payments but states can alter these eligibility criteria according to their own needs. These alterations are referred to as waivers in the system. States that have higher proportions of African American population tend to implement much strict policies regarding eligibility criteria including harsher initial screening. There are no clear documentation for decision making criteria of welfare payments if we do not consider the racial differences. Policy maker and case workers have been found to be racially triggered when accessing a case. Policy makers should consider the effects of previous reforms on a majority of population before implementing new programs. One aspect may pertain to the restructuring of programs according to local needs which results in many deserving families and individuals being deprived of their rightful receipts CITATION Hea17 \l 1033 (Hahn, Aron, Lau, Pratt, & Okoli, 2017).

There are certain programs undertaken by the Western Virginia state in terms of welfare. Children health Insurance program provides health insurance to children who are eligible to receive such payments. The main aim of this initiative is to make sure that there is an equitable health system for all children across the state. The eligibility for this program includes residence in West Virginia and being under 19 years of age. Another initiative is named head start which is aimed at increasing the number of students registering at schools especially from the lower income families. The eligibility criteria also includes a maximum level of income that individuals must have.

Name: (please print)

In taking this quiz, I have complied with the UB policy on academic integrity (reference http://www.ubalt.edu/policies/academic-affairs/academic-integrity/).

Signed: (if submitted electronically, just re-key your name)

References

BIBLIOGRAPHY Chingos, M. M., & Blagg, K. (2017, November). https://www.urban.org/sites/default/files/publication/94961/making-sense-of-state-school-funding-policy_0.pdf. Retrieved from https://www.urban.org/sites/default/files/publication/94961/making-sense-of-state-school-funding-policy_0.pdf: https://www.urban.org/sites/default/files/publication/94961/making-sense-of-state-school-funding-policy_0.pdf

Cross-Center Initiatives. (2017). https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/state-and-local-backgrounders/public-welfare-expenditures. Retrieved from https://www.urban.org: https://www.urban.org/policy-centers/cross-center-initiatives/state-and-local-finance-initiative/state-and-local-backgrounders/public-welfare-expenditures

F.Fox, W. (2002, March 12). http://cber.bus.utk.edu/staff/mnmecon338/foxipt.pdf. Retrieved from http://cber.bus.utk.edu: http://cber.bus.utk.edu/staff/mnmecon338/foxipt.pdf

Hahn, H., Aron, L. Y., Lau, C., Pratt, E., & Okoli, A. (2017, June 5). https://www.urban.org/research/publication/why-does-cash-welfare-depend-where-you-live. Retrieved from https://www.urban.org: https://www.urban.org/research/publication/why-does-cash-welfare-depend-where-you-live

Lutz, B. F. (2008). https://www.federalreserve.gov/pubs/feds/2008/200848/200848pap.pdf. Retrieved from https://www.federalreserve.gov: https://www.federalreserve.gov/pubs/feds/2008/200848/200848pap.pdf

Moreno, T. (2019, January 17). https://www.thebalance.com/best-and-worst-states-for-property-taxes-3193328. Retrieved from https://www.thebalance.com: https://www.thebalance.com/best-and-worst-states-for-property-taxes-3193328

Shores, K., & Ejdemyr, S. (2017). https://cepa.stanford.edu/content/do-school-districts-spend-less-money-poor-and-minority-students. Retrieved from https://cepa.stanford.edu: http://brook.gs/2qo9qGR

Budget Estimates

Title Page

Budget estimates

Chosen goal

The company has selected the goal of placing the customer experience at the core of everything. Online platforms will be used for marketing that will target the brooder audience. Delivering good and quality service will improve the customer experience. Delighting customer depends on focusing on the goal of the extra meal and by engaging them directly with the company's culture. Employees having direct interaction with customers would be able to provide quality service in different areas. By investing in customers, the company will aim at maximizing customer loyalty and satisfaction. Investing in different communication tools will increase probability of engaging customers.

Operating budget

The operating budget for the attainment of goal identifies the areas that will need funds. The operating budget is divided into three main aspects; market research, communications, and others. The expenses for the market research will comprise of research fee, web research, independent research, and marketing research. Through market research, the company will identify the areas that need improvement for enhancing customers experience. McDonald's will need adequate investment for financing such activities. This will provide information about customer preferences and segmentation. To build effective communications the company will invest in branding and promotions.

Market Research

2018

2019

2020

2021

2022

Firm Research Fees

7,100

6,500

6,000

6,100

7,500

Web Research

7,000

4,200

3,400

2,100

……

Independent Research

4,000

2,100

2,000

3,000

3,100

Market Research Total

18,100

12,800

11,400

11,200

10,600

Communications

Branding

521

323

274

451

104

Promotions

10,000

9,000

9,500

7,000

7,500

Newspaper Advertising

9,900

9,500

6,000

5,500

4,400

Web Advertising

10,572

14,514

10,561

13,170

12,478

Direct marketing

250

428

165

1,168

345

Communications Total

30,722

33,442

26,226

26,838

24,732

Other

Postage

521

323

274

451

104

Travel

12,000

13,000

14,000

12,000

11,000

Phone

100

100

100

100

100

Computer/Office Equipment

200

300

400

500

200

Other Total

12,821

13,723

14,774

13,051

11,404

Long-term assets

The long-term assets of the company rely on cash flow and balance sheet. The financial positioning of MacDonald’s depicts that it is generating adequate cash flow that will support its marketing campaigning. The net income of the company was estimated at $5,924,300 in 2018. The cash flow is determined by operating activities, cash flow used in investing and financing activities. The cash flow will have a significant impact on the marketing activities. The operating, investing and financial cash flow depicts that the company's financial position has improved consistently that will thus ensure the provision of adequate funds for the marketing activities.

2017

2018

Net operating cash flow

5.55 billion

6.97 billion

Net investing cash flow

736 million

2.46 billion

Net financial cash flow

5.31 billion

5.95 billion

The financial budget is also dependent on the revenue stream and profitability of the company. The analysis of the financial statement depicts that the sales/ revenue of McDonald's increased from 22.82 billion to 21.03 billion. There has been an increase in gross income from 10.62 billion to 10.79 billion. The estimates depict that the financial position of the company has improved. This also reveals the organization can use its revenue as a long-term, asset for financing its goal. The goal of valuing customers can be attained due to continuous financial support. The EBIDTA in 2017 was accounted as 9.75 billion indicating that the company is capable of financing its activity CITATION NYS19 \l 1033 (NYSE, 2019).

The company will thus rely on existing assets for accomplishing its goal of placing customers experience at the core of everything. Revenue stream and cash flow are two evident assets that the company will utilize for funding its research and value creation for customers.

References

BIBLIOGRAPHY NYSE. (2019). McDonald's Corp. Retrieved 03 02, 2019, from https://www.marketwatch.com/investing/stock/mcd/financials

Stancil, J. L. (2012). Has the S corporation Outlived Its Usefulness? CPA Journal, 82(2), 40-45.

Budget Proposal To The Executives

Budget Proposal to the Executives

[Name of the Student:]

[Name of the Institution:]

Budget Proposal to the Executives

Date: mm/dd/yyyy

To: All Employees

From: [Student’s Name]

Finance Manager

Subject: Collection of Data for Preparing a Budget Proposal

We have to make a budget proposal that would be presented to the higher management for approval. It is an important task, and should be completed carefully. You will be provided with the necessary information and guidance below so that you can submit relevant data from your departments needed to complete this budget proposal. We hope you all will do your best in completing the assigned tasks.

Defining Budget and Budget Proposal

A ‘budget proposal’ entails the anticipated costs associated with a proposed work or project. These costs are the closest estimates made by an investigator who has been appointed to analyze the system and ideate the relative costs. It is written to convince an individual or organization that the investigator is capable enough to analyze the system well (Maher, Fakhar, & Karimi, 2018). A budget proposal presents a document that will outline financial information to provide an assessment of the project’s scope. The developed paper is reviewed by management before its practical implementation.

A ‘budget’ is an estimate of the anticipated costs that would occur in the implementation of a program, or completion of a project. A company’s budget reflects its goals, plans, and strategies. It provides direction of activities that will achieve the goals of the company. It gives an idea, a control over the projects and their implementation. A budget is made after adequate analysis of the current systems and problems. It is a tool to evaluate the feasibility of a project or plan. It provides alternatives to the proposed solutions addressing the identified problems (Chong & Law, 2016). It allows the management to choose among available options for a particular project or a specific period of operations. It entails details of plans or projects, reflection of the company's strategies, positions to be filled in for fulfilling the tasks related to the project, and costs associated with the implementation of these projects. A budget provides financial data that is used in allocating funds for a specific project.

Budgets may be short-term or long-term. Projects or plans that need one year or less are considered to be short-term; those which require more time are long-term budgets. Long-term budgets usually last for five to ten years or more. Short-term budgets applied successfully result in the successful implementation of long-term budgets. Budgets can be made for specific projects as well as the whole company. A budget made for the whole company will forecast its future achievements for a certain period, projects to be completed, and production levels. Budgets help the management in making precise and clear decisions (Widiawati & RS, 2019).

Budgets are prepared to demonstrate the needs of a company for a certain period or project. In any case, all the related departments, resources, and time constraints have to be considered in the light of sufficient supporting data. The data needed to complete a budget is collected on request from the respective departments, units, and/or professionals.

Instructions for Providing Necessary Data

Since the budget proposal contains project description, personnel involved, and estimated costs, data related to all these aspects is needed from each relevant department. Further, the information required for making the budget proposal should be accurate, clear, and up-to-date. To collect appropriate information, quantitative methodologies should be used. These methodologies provide numeric data that can be used for precise estimates of elements constituting the project. The information collected by every department will be sent directly to the finance manager of the company who will assemble all reports to compile the proposal. The departments will work collaboratively in collecting the necessary data to increase feasibility and access.

The budget proposal has to be made for a project of developing a new unit that will manufacture certain niche products for the company. This unit is to start operations in ten months. For developing these products, the company needs a research and development team, a manufacturing team, and a marketing team. Further, services of finance professionals are also required. The administrative team will manage the department's inner and outer operations. There will also be personnel that have to carry out operations related to logistics, supply chain, and procurement. It is expected from the departments of this company to provide data necessary for the appointment of these employees. All the relevant departments will be provided with the project's details promptly. They have to review the project details and suggest people for it. Since there are enough employees in every department, it is expected that they will suggest the transfer of some employees from their department to this new project. In case more employees are needed, they will suggest the number of employees related to their particular field to be recruited by the HR department. They will provide results of their investigation through a report that describes the personnel required for the project from their field of expertise.

The direct costs of the project include staff salaries, recruitment and training of new staff, product development, product testing, promotion costs, etc. The instructions needed for estimating staff salaries have been given above. The costs of other departments will be calculated based on the information provided by different departments of the company (Mauskopf & Earnshaw, 2017). The research and development department is involved in creating new products. They will give information given the products intended to be developed. The procurement department will help in assigning the number of employees and their specific tasks for the new project. Similarly, other departments will assist in appointing people to the project.

The data related to the employees should consist of their job description, grade, and salary. These employees are the workforce that will ensure successful implementation of the project and its subsequent completion. Therefore, they are the backbone of the proposed plan to be accomplished. To compile their relevant data, the departments have to make lists that consist of their names, job designations, brief job descriptions, type of job, and their compensation plans or wages, daily or hourly rates. This information is required in properly developed formats used for accounting purposes. It should be noted that the purpose of making these lists of employees' data is to get an estimate of how much they will cost to the completion of the project. The labor or personnel costs have an inevitable role in assessing which and how many workers shall be employed for the project. The management will also decide about the period each employee is going to work for the project.

The HR managers are requested to provide lists of employees’ data with details of their compensation plans. They will be provided the list of workers who are required to work on the project. These are the lists that have been compiled from the data collected regarding the workers needed from every related department. The HR management is supposed to compile an accurate data list of salaries that would be given to the workers from the beginning of the project to its completion (Azzimonti, Battaglini, & Coate, 2016). The salaries should be prepared for would-be staff of all related departments required to establish for the new unit. The details of these employees’ salaries should be given for the staff of the research and development department, production department, procurement, distribution, testing and evaluation, marketing and promotional departments.

For making the budget proposal, costs occurring in acquiring materials and services are required. The costs of distribution and promotion have to be managed. There are overhead costs like maintenance, rent, utility bills, etc. These costs must be included in the proposal budget. There will be expenses of traveling of the related employees. These travels may be intended to make promotions, acquire new economical suppliers, or fulfill regulatory requirements of the products. The expenses incurred on staff accommodation will be included. Further, expenses made for their health insurance, allowances, and incentives will also be included in the budget proposal. The costs of equipment, machinery, materials, and other installed items will be added to the proposal. These materials and supplies can be directly involved in developing the product or they may be related to administrative or other offices. The communication costs should be given due importance. Communications are meant to be inside the new unit as well as outside it.

This is to inform all addressees that the information required for the aforementioned project, positions, and costs have to be provided given the project requirements. Since this project is about establishing a unit of production wherein specific niche products are going to be manufactured, there will be an increased focus on quality. The employee profiles, requirements of product development, and their promotional plans will be developed based on quality requirements and the desired data list will be developed accordingly.

The required information is to be submitted within two weeks from this date. Once the submissions are finished, the information provided will be reviewed and analyzed for the requirements of the new project. The data lists that need to be revised as per the given criteria will be returned to the relevant departments. The final submission of the reports is scheduled to be after three weeks from now.

Your participation will be appreciated.

Works Cited

Azzimonti, M., Battaglini, M., & Coate, S. (2016). The costs and benefits of balanced budget rules: Lessons from a political economy model of fiscal policy. Journal of Public Economics, 136, 45–61.

Chong, V. K., & Law, M. B. (2016). The effect of a budget-based incentive compensation scheme on job performance: The mediating role of trust-in-supervisor and organizational commitment. Journal of Accounting & Organizational Change, 12(4), 590–613.

Maher, M. H., Fakhar, M. S., & Karimi, Z. (2018). The relationship between budget emphasis, budget planning models and performance. Journal of Health Management and Informatics, 5(1), 16–20.

Mauskopf, J., & Earnshaw, S. (2017). Reporting Budget-Impact Analyses. In Budget-Impact Analysis of Health Care Interventions (pp. 165–188). Springer.

Widiawati, D., & RS, T. Y. (2019). EFFECT OF BUDGET PARTICIPATION ON MANAGERIAL PERFORMANCE MEDIATED BY JOB SATISFACTION AND ORGANIZATIONAL COMMITMENT. JOURNAL OF BUSINESS STUDIES, 4(1).

Budgetary Priorities

Budgetary Priorities

Your Name (First M. Last)

Date

Budgetary Priorities

Introduction

Proper assessment of the actual needs of the funding referring to the specific fields is the one main responsibility of the government. It is crucial for the federal and state government to critically identify the sectors or the specific programs that require necessary attention. It is worthy to mention that the entities of the president and the Congress have the objective to identify the budgetary priorities and deliver the funds to achieve all the related spheres of the public programs. Inappropriate evaluation of the budgetary priorities ultimately leads to chronic issues identify as public policy problems ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"zpqoqVZu","properties":{"formattedCitation":"(Chingos & Blagg, 2017)","plainCitation":"(Chingos & Blagg, 2017)","noteIndex":0},"citationItems":[{"id":641,"uris":["http://zotero.org/users/local/7Hi3kAOD/items/6W8D4EIL"],"uri":["http://zotero.org/users/local/7Hi3kAOD/items/6W8D4EIL"],"itemData":{"id":641,"type":"article-journal","title":"Making Sense of State School Funding Policy","container-title":"Urban Institute. Retrieved December","page":"2017","volume":"4","author":[{"family":"Chingos","given":"M."},{"family":"Blagg","given":"Kristin"}],"issued":{"date-parts":[["2017"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Chingos & Blagg, 2017). It is important for the governments to remain vigilant about the actual expenses and deliver adequate funds to meet the need of the public program. Here the prime focus is to critically explain the policy issue of education and investigate the actual funding situation considering its impact on all the stakeholders.

Discussion

Education is characterized as the one mandatory and important feature to apprehend the objective of developed society. It is one core objective of the federal and the local governments to invest an adequate amount of funding in the specific sector of education to make it possible to achieve the actual objectives of this segment ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"cyIhGPEB","properties":{"formattedCitation":"(Strauss, 2014)","plainCitation":"(Strauss, 2014)","noteIndex":0},"citationItems":[{"id":637,"uris":["http://zotero.org/users/local/7Hi3kAOD/items/MRN2DXQQ"],"uri":["http://zotero.org/users/local/7Hi3kAOD/items/MRN2DXQQ"],"itemData":{"id":637,"type":"webpage","title":"America's School Funding Problems, State by State","container-title":"Washington Post","URL":"https://www.washingtonpost.com/news/answer-sheet/wp/2014/02/05/americas-school-funding-problems-state-by-state/?utm_term=.b12f68462ae2","author":[{"family":"Strauss","given":"Valerie"}],"issued":{"date-parts":[["2014"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Strauss, 2014). It is observed that the education sector of the country never achieved the satisfactory form of funds from the federal government in the form of Washington State to achieve the actual target of ensuring learning domains for all the children. Existing situation of the education sector makes it essential to critically analyze the current public policy and funding structure set by the government for the education sector of the country.

The main concern relevant to the main idea of public policy for the education sector is to evaluate the fairness of the funding structure. Today, this concern is immensely increasing that the government of Washington is more concern to invest in weapons contrary to the productive sector of education. The demand for increasing funds for the education public policy increases with each day as it referred to as the most neglected sector by the government. The issue of public policy for the education sector is expanding after the quick cut in the funding structure for this specific paradigm ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"wKQO5A5T","properties":{"formattedCitation":"(Litvinov, Alvarez, Long, & Walker, 2018)","plainCitation":"(Litvinov, Alvarez, Long, & Walker, 2018)","noteIndex":0},"citationItems":[{"id":638,"uris":["http://zotero.org/users/local/7Hi3kAOD/items/SRCFSPBA"],"uri":["http://zotero.org/users/local/7Hi3kAOD/items/SRCFSPBA"],"itemData":{"id":638,"type":"webpage","title":"10 Challenges Facing Public Education Today","container-title":"neaToday","URL":"http://neatoday.org/2018/08/03/10-challenges-facing-public-education-today/","author":[{"family":"Litvinov","given":"Amanda"},{"family":"Alvarez","given":"Brenda"},{"family":"Long","given":"Cindy"},{"family":"Walker","given":"Tim"}],"issued":{"date-parts":[["2018"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Litvinov, Alvarez, Long, & Walker, 2018). Undoubtedly, the funding situation for the paradigm of education is getting worse as the federal government never show the serious concern for this specific form of development.

The overall funding situation of the education policy never favors all the needs of this sector as there is need of more funds for each level of education. It is observed that the entities of schools facing an immense form of troubles when it comes to the implementation of the ideas of learning in their true and effective prospects. It is revealed that now school organizations are not able to pay off student debt or it ultimately appears in the form of stagnant salaries ADDIN ZOTERO_ITEM CSL_CITATION {"citationID":"I4iN9y0F","properties":{"formattedCitation":"(Leachman, Masterson, & Figueroa, 2017)","plainCitation":"(Leachman, Masterson, & Figueroa, 2017)","noteIndex":0},"citationItems":[{"id":642,"uris":["http://zotero.org/users/local/7Hi3kAOD/items/IAVDELHI"],"uri":["http://zotero.org/users/local/7Hi3kAOD/items/IAVDELHI"],"itemData":{"id":642,"type":"webpage","title":"A Punishing Decade for School Funding","container-title":"CBPP.Org","URL":"https://www.cbpp.org/research/state-budget-and-tax/a-punishing-decade-for-school-funding","author":[{"family":"Leachman","given":"Michael"},{"family":"Masterson","given":"Kathleen"},{"family":"Figueroa","given":"Eric"}],"issued":{"date-parts":[["2017"]]}}}],"schema":"https://github.com/citation-style-language/schema/raw/master/csl-citation.json"} (Leachman, Masterson, & Figueroa, 2017). The existing circumstances of the education sector demand to increase the focus of public policy and enhance the aspect of budgetary priorities for this specific sector.

Conclusion

To conclude the discussion about the insufficient consideration of the public policy in case of the education sector, it is vital to mention that it is right time for the federal government to enhance its focus and reestablish the funding structure. Insufficient funding cause different forms of concerns for the school management and educational professionals. The inadequate approach of funding in the education sector ultimately affects the learning domain of the students. It is important for the federal government to address the issue of the public policy of education on priority and offer a better form of funding to assure the achievement of the learning objectives for all the students.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Chingos, M., & Blagg, K. (2017). Making Sense of State School Funding Policy. Urban Institute. Retrieved December, 4, 2017.

Leachman, M., Masterson, K., & Figueroa, E. (2017). A Punishing Decade for School Funding. Retrieved from https://www.cbpp.org/research/state-budget-and-tax/a-punishing-decade-for-school-funding

Litvinov, A., Alvarez, B., Long, C., & Walker, T. (2018). 10 Challenges Facing Public Education Today. Retrieved from http://neatoday.org/2018/08/03/10-challenges-facing-public-education-today/

Strauss, V. (2014). America’s School Funding Problems, State by State. Retrieved from https://www.washingtonpost.com/news/answer-sheet/wp/2014/02/05/americas-school-funding-problems-state-by-state/?utm_term=.b12f68462ae2

Building Effective Workplace Communication

Building Effective Workplace Communication

[Name of the Writer]

[Name of the Institution]

Building Effective Workplace Communication

Introduction

The world consists of a huge amount of information, especially in current times. This information needs to be imparted in some form so that it can be utilized in a useful manner. This exchange or imparting of information or knowledge is known as communication. Communication holds extreme importance for both humans and animals alike (Perera, 2015).

There are two major ways of communication; Verbal and Non-verbal. Verbal communication refers to the use of language, words, sounds, and clear expressions in order to express oneself. Both written and spoken conversation come under the umbrella of verbal communication (Modi, Chhatwal, Gupta, & Singh, 2016). On the other hand, the type of communication that makes use of expressions, gestures, postures, and body language to send and receive messages is known as non-verbal communication. Non-verbal communication does not make use of words or sounds to carry on the communication process.

Communication garners even more important in the case of professional life, where the verbal and nonverbal communication is carried on at the workplace to pass on important messages. Effective communication at the workplace is imperative in a leadership role (Watson & Reissner, 2014). The following piece of writing will look into the factors that contribute towards building a positive and strong communication process at a workplace, especially at multinational organizations, and why these practices are necessary for the proper working of and at the workplace.

Discussion

There is an old aphorism which says, “It’s not what you say, but how you say it." Exceptional communication skills separate a good leader from a poor one, and good leaders buil a excellent and progressive organization. Effective communication poses to be the key to good leadership. There are a number of ways to build a strong, workable, and effective workplace communication process (Angelo, 2014). Some of them have been elaborated as under:

Open Door Communication

The doors of communication in an organizations should always be open for everyone. The communication process should not be one-sided; rather it should flow from both the ends (Nazim, 2014). It should not be in a way that orders only flow from upward to downward direction, but the ideas should also flow from downward to upward direction and in parallel directions.

Create a Receptive Environment

The leadership at the organization should try to create a receptive environment instead of a tense and stressful environment. If the leaders try to maintain a stressful and intense environment at the workplace, it may demotivate the employees, and the message being shared may lose its actual meaning.

Usage of Appropriate Language

Use of language matters a lot in case of communication, especially verbal communication. So a leader should pay special heed to the language he or she is using (Deveugele, 2015). He should choose appropriate words according to the designation of the employee and the matter under discussion.

Using Simple Words

As already discussed, language plays a very crucial role in the communication process, so the organization should pay special attention that the language is kept as simple and as understandable as it can be. The simpler the language, more clear and understandable will be the message.

Usage of Body Language

Not only the words but body language also play an important role in the whole communication process. Thus a leader or manager at the organization should make use of appropriate gestures and expressions in order to make the message more meaningful and convincing (Zulch, 2014).

Be Appreciative

Always appreciate the input from your subordinates or lower staff, regardless of their position and designation. No matter how impractical their idea may be, always appreciate them for at least speaking up and communicating their ideas. This will encourage them and make them feel valued.

Importance of Effective Communication Practices

Effective communication holds extreme importance in the case of professional life, especially at the workplace (Austin & Pinkleton, 2015). Effective communication practices help a lot in building a positive environment at the workplace and encourage the employees to form efficient teams. Effective communication practices in an organization also encourage the employees to give maximum input, and thus, the culture of diversity and freedom of expression is encouraged (Jadhav, & Gupta, 2014). Moreover, these practices also encourage brainstorming, which results in the form of many new and unique ideas, which may prove to be very useful for the organization (Okoro, E., Washington, M. & Thomas, 2017).

Effective communication practices in a n organization also increase the level of job satisfaction in the employees as they feel heard and valued. An open and receptive communication process makes the employees feel that their opinion matters for the organization, and their voice is being heard, which boots up their confidence and motivation level. This motivation is both towards their job and the organization. This feeling not only keeps the employees motivated but also kept them committed to the organization for a longer period of time.

The Role of Vision and Mission in the development of Effective Communication

In the case of an organizational setup, the development of effective communication depends largerly upong many factors. As the organization is a big unit or body being run by a number of people, and not a single entity, hence, a single entity also does not control the processes being carried on in the organization. There are a number of factors that contribute in building or breaking up the systems of the organizations, in a positive or a negative manner. The factors play a vital role in strengthening or weakening the sytems of the organizations. One of the major systems that is effectd by this is communication systems.

What is a Vision Statement?

A dream explanation is utilized to depict the future condition of the association, i.e., what the association wants to move toward becoming later on. It is, in this way, a long haul objective gives guidance for the association. It likewise conveys the motivation behind the association to the workers and different partners and gives them the motivation to accomplish that reason.

What is a Mission Statement?

A statement of purpose depicts the present condition of an association and its essential objectives or targets. It gives point by point data about what the association does, how it does it, and who it does it for. In contrast to the vision explanation, it is present moment in nature. In any case, it is identified with the vision proclamation in that it plots the essential objectives that will accomplish the future the association wants (i.e, the vision).

Significance of Vision and Mission Statement in an Organization

Both the vision and statements of purpose assume a significant job in the association. The following is a glance at these jobs:

The vision and statements of purpose or mission statement characterize the reason for the association and impart a feeling of having a place and personality with the workers. This propels them to work more earnestly so as to make progress.

The mission statement goes about as a "North Star", where it gives the bearing that will be trailed by the association while the vision proclamation gives the objective (or the goal) to be come to by following this course.

The vision and statements of purpose help to appropriately adjust the assets of an association towards accomplishing an effective future.

The statement of purpose gives the association a reasonable and viable guide for deciding, while the vision explanation guarantees that all the choice made are appropriately lined up with what the association wants to accomplish.

The vision and statements of purpose give a point of convergence that adjusts everybody to the association, along these lines guaranteeing that everybody is moving in the direction of a solitary reason. This builds effectiveness and profitability in the association. The vision and statements of purpose are significant devices of key arranging, and therefore they help to shape the methodology that will be utilized by an association to accomplish the ideal future.

Conclusion

In a nutshell, it can be seen that effective communication at a workplace is vital for the propagation of a culture of diversity and corporation. There are a number of ways in which an effective and strong culture of communication can be developed at a workplace so that the flow of work runs smoothly and efficiently. The practices include keeping the doors of communication always open, giving respect to everyone, providing feedback, and encouraging the inflow of ideas. Effective workplace communication in an organization boosts up the confidence level of the employees and motivates them to work more passionately towards the organizational goals. Moreover, it makes them feel heard and valued, which makes the employees more committed to their job and the organization. The communication system in an organization is also heavily affected by the presence of a vision and mission statement. The crucial vision explanations are significant and they can best be depicted as a compass and goal of the association separately. In this way, every company or organization ought to grow clear vision and statements of purpose, as not doing so would resemble going on a voyage without knowing the course you are to pursue or the goal.

References

Angelo, G. (2014). The 7 effective communication skills: How to be a better communicator now. Seisnama.

Austin, E. W., & Pinkleton, B. E. (2015). Strategic public relations management: Planning and managing effective communication campaigns. Routledge.

Deveugele, M. (2015). Communication training: Skills and beyond. Patient education and counseling, 98(10), 1287-1291.

Jadhav, T., & Gupta, S. K. (2014). Global communication skills and its relationship with emotional intelligence. American Journal of Management, 14(4), 82.

Modi, J. N., Chhatwal, J., Gupta, P., & Singh, T. (2016). Teaching and assessing communication skills in medical undergraduate training. Indian pediatrics, 53(6), 497-504.

Nazim, M. (2014). Communication skills.

Okoro, E., Washington, M. C., & Thomas, O. (2017). The Impact of Interpersonal Communication Skills on Organizational Effectiveness and Social Self-Efficacy: A Synthesis. International Journal of Language and Linguistics, 4(3), 28-32.

Perera, H. J. M. (2015). Effective communication skills for medical practice. Journal of the Postgraduate Institute of Medicine, 2.

Watson, G., & Reissner, S. (Eds.). (2014). Developing skills for business leadership. Kogan Page Publishers.

Zulch, B. (2014). Leadership communication in project management. Procedia-Social and Behavioral Sciences, 119, 172-181.