What is Business Ethics - 741 Words

In today’s business world businesses face the challenge of doing the right thing over doing the profitable thing more than ever before. For many years the sole purpose of business was to be make profits for the shareholders. This view has now been changed. The propriety of business actions is being challenged by the modern day consumer. One of the major issues or opportunities (depending on which way one may see it) is the issue of ‘going-green’. Consumers in today’s society have access to a large archive of information and the consumer will take up the opportunity to look up the practices of a business. This can place a strain on business as they are constantly being watched by consumers. The role which business plays in its surrounding community is one that has been mistakenly avoided by many companies in the past. The focus of this study is to point out the role that the ethics and corporate social responsibility play in the sustainability of a business in today’s world. The study will seek to an extent point out the importance of good business practices in respect to ethics and social responsibility. What is Ethics? Before we diverse into the understanding of the role of ethics in business it is vital we have a firm and clear understanding of the word ‘ethics’ itself. The word ethics has Greek roots derived from the word ‘ethos’ which means accepted behaviour. After reading a number of definitions of the word one has come to the conclusion that ethics has to dealShow MoreRelatedWhat Is Business Ethics?1294 Words   |  6 PagesMIS 6308 – Assignment: Business Ethics Essay (50 points) What is business ethics? Business ethics can be understood as codes that define the actions and behavior of the employees in an institution. Standards are set by every company to define what is accepted as ‘Right’ and each employee is expected to abide by these standards. For a business to run successfully it is important to abide by the set of standards that are defined. Companies around the world observe these ethical principles strictly;Read MoreWhat Is Business Ethics? Essay1117 Words   |  5 PagesA. Ethics In business everyone has the power with their ability to spend an amount of money. People have the capacity to change situations in which many individual does not. As an organization may affect some people, they might have the obligations to their employees, consumers, community and the outside world. They have the responsibility to manage or control the business in a way that it will not harm, positively the benefits like people as possible and themselves. This can be simple, thereRead MoreWhat Are Business Ethics?2080 Words   |  9 Pages Business Ethics Naveed Ahmed Saleem Janvekar Introduction: The survival of an organization depends upon the integration of business codes with the societal ethics. Ethics concentrates on the general nature of morals and the specific moral choice an individual makes in relationship to others. It represents the rules and regulations governing conduct of the member of a profession. The area of focus in this essay is to explore the effects of business ethics. Business ethics are a setRead MoreWhat Is Ethics in Business2390 Words   |  10 PagesWhat is Ethics in Business? In general, personal ethics can be described as the moral guidelines each of us uses in our daily lives. It is these guidelines which govern how we behave including how we speak and act towards others in our everyday interactions no matter if they are face to face, by way of telephone or in writing. Much the same can be said for ethics in business. Business ethics are the moral philosophies and written rules of conduct which govern how the business treats not only itsRead More What Are Business Ethics? Essay1259 Words   |  6 PagesBusiness ethics; what does it really mean? Some say it’s an oxymoron and the two words can’t exist together as a concept. These people will tell you that within business, there is no room for ethics and ethical behavior. Others will explain the need for businesses to practice good ethical and moral values within their company, and the importance of this to our society. For me, in the past, I honestly never gave the idea or term a second tho ught. Now after learning so much of business in our societyRead MoreWhat Is Business Ethics? The Public Interest1047 Words   |  4 PagesSocial Responsibility Executive Summary Corporate social responsibility (CSR) has gain a considerable amount of attention in recent years. Much of this has been driven by the publics expectations of their products to be produced under ethical business models. With the aid of technology consumers are becoming more aware of the operations that are responsible for the products they buy. Therefore the pressure for maintaining a CSR program has come from multiple sources. This paper will provide aRead MoreWhat Drives Ethics Education For Business Schools? Influences On Ethics709 Words   |  3 Pages What Drives Ethics Education in Business Schools? Influences on Ethics in the MBA Curriculum Rasche, A., Gilbert, D. U. (2013, January). What Drives Ethics Education in Business Schools? Influences on Ethics in the MBA Curriculum. In Academy of Management Proceedings (Vol. 1, 2013, pages 1-31). Academy of Management. Introducing week’s one entry I chose the title article above, â€Å"What Drives Ethics Education in Business Schools? Influences on Ethics in the MBA Curriculum.† This articleRead MoreWhat Are The Differences Of Ethics In Chinese Business?963 Words   |  4 Pagesdifferent organizations such as the American Psychological Association (APA, 2017), the American Counseling Association (ACA, 2014), and may also be provided for specific industries or organizations. These codes of ethics can be used as a way to demonstrate differences in perception of ethics from one country to another, but are only guidelines rather than exhaustive rules or regulations. However, these are American institutions, which may be helpful for TMI in understanding differences between the USRead MoreWhat Are Ethics And Their Importance? Global Banking And Business Today? Essay963 Words   |  4 Pages1. What are ethics and their importance in global banking and business today? Ethics are an extremely important in today’s day and age, especially in the global banking and business industries. As far as banking goes, there have been many scandals and this has all been caused by low morals. The morals that are displayed and acted upon by every countries financial sector have been shown to drive the economy and as displayed by the 2008 financial crisis, it is self-evident that a lack of morals canRead MoreOp 10 Principles For Positive Business Ethics Essay799 Words   |  4 Pagesop 10 Principles for Positive Business Ethics By Philip E. Humbert | Submitted On January 04, 2005 Recommend Article Article Comments Print Article Share this article on Facebook 10 Share this article on Twitter 2 Share this article on Google+ 2 Share this article on Linkedin 2 Share this article on StumbleUpon 1 Share this article on Delicious 2 Share this article on Digg Share this article on Reddit 1 Share this article on Pinterest 2 This morning, I read about a company using on-line auctions

The Discrimination And Unequal Treatment Of Individuals...

A very prominent social justice issue, gender inequality, is the discrimination and unequal treatment of individuals based solely on their gender. It is a major problem all over the world, but it’s effects are especially seen in developing countries with strong, lasting cultural traditions and social regulations that don’t give females the opportunity to be equal members of society. Gender inequality can be expressed in many ways, but one form is child marriage. Child marriage happens because of culture, tradition, lack of education, and poverty. It violates a girl’s right to happiness, health, and education, and it traps her in a never ending cycle of poverty and, often times, violence and abuse. Child marriage is a very sad and unfortunate practice that happens to millions of girls around the world and hinders their ability to reach their full potential as human beings. It is an important issue that, unfortunately, people aren’t really aware of in todayà ¢â‚¬â„¢s society because it is not prominent in developed nations. To put it simply, child marriage is a horrible atrocity that needs to be dealt with before it escalates even more. An organization that supports this position and is effectively working to increase awareness about the injustices surrounding child marriage by educating the public while also ensuring that every girl around the world has a voice and a choice for generations to come is Girl Not Brides. Girls Not Brides is an organization that makes people aware ofShow MoreRelatedGender Discrimination : An Ethical Problem Essay1043 Words   |  5 PagesAbstract: Gender Discrimination is a type of discrimination where basing on a particular person’s gender (or) sex a person is discriminated, majorly this type of discrimination is faced by women and girls. In this globalized world, where interaction between two individuals became easy as seams of finger touch and where we always debate, speak about the equality rights for men and women, we still see many instances of many individuals being discriminated based on the gender difference. This paperRead MoreGender Wage Gap Of The American Association Of University Women1236 Words   |  5 Pages Gender Wage Gap Lisda Lara Professor Akpo GOVT 2305-P50 August 4, 2016 Throughout our world’s history we have seen many grievous instances where discrimination caused severely negative repercussions on how our society functions. The inequity demonstrated by our nation in the past has estranged its residents based on their religion, the color of their skin, their beliefs, and even their gender. With time, our community has become more accepting which has led to the abolishment ofRead More The Different Types of Discrimination Essays999 Words   |  4 PagesDiscrimination Religion, national origin, race, and social status are the suspect classifications of discrimination, but are these the only categories that should not be discriminated against? People today are searching for equal rights and opportunities. No one should be suffering from any type of discrimination, but they are. Discrimination is an unfair treatment of a person or group based on prejudice, therefore sex, disability, and age should be included in the suspect classifications of discriminationRead MoreGender Discrimination : The Glass Ceiling Affect Gender Groups, Stereotyping, And Discrimination1623 Words   |  7 Pages(Marley S. Weiss, 2007, page 64). Discrimination against gender is very common in the workplace. The purpose of this explanatory research is to discuss the discrimination women face in society and the workforce as well as the challenges faced by marital status. The sociological theories on the macro level that will be used to analyze this subject include; the conflict perspective theory, the feminist theory and the functionalist perspective. On this topic of discrimination, the research done will discussRead MoreFInal Paper1429 Words   |  6 Pagesï » ¿Gender Inequality Within Society Society has conformed our minds to view gender based on one’s role in society. This labels the person as a man or a woman and then classifies them based on the â€Å"roles† that society has assigned for each. Gender inequality is caused by the unequal perceptions or even the way someone is treated, based on them being a man or woman. It tends to be the result of what is seen as socially constructed differences of the typical gender roles. This is a social problem I findRead MoreDifferences Between Equal Employment Opportunity Initiatives, Affirmative Action Initiatives and Diversity Initiatives in Organizations1120 Words   |  5 Pagesrecord, disability, ancestry, marital status, political affiliation, or membership in the National Guard to allow all individuals access to the benefits and privileges of the workplace. In short, this means that everyone has an equal opportunity in employment based on his/her qualifications. Both federal and state legislation have pro vided that no one can be discriminated against based on their protective class. Not entirely true! ‘Federal law’ does not protect sexual orientation. It applies to allRead MoreGender Discrimination And The Field Of Science1498 Words   |  6 Pagesthe idea that gender discrimination could occur in the field of science as a concept was completely alien to me. However it has come to light that gender discrimination in the field of science is not a myth but in fact a harsh reality for which the reasons remain skewed. As according to Linda S. Dix, it is not an easy matter to assess the magnitude of gender discrimination and how that affects the careers of scientists, both men and women, positively and negatively. Discrimination is often subtleRead MoreHomosexuality1131 Words   |  5 Pagesobserved in most animal species. Many homosexuals prefer to be called gay or, in the case of women, lesbian. When individuals engage in both heterosexual and homosexual behaviors, they are called bisexual. Sexual orientation refers to an enduring pattern of emotional, romantic and sexual attractions to men, women or both sexes. Sexual orientation also refers to a person’s sense of identity based on those attractions, related behaviors and membership in a community of others who share those attractionsRead MoreSocialization And Discrimination Of Gender Within Our Education System1738 Words   |  7 Pagesbelieve that being part of the same classroom with the same textbooks, desks and pencils that boys and girls receive the same exposure to education and what it may hold, right? The socialization and discrimination of gender within our education system assures that young women are made aware that they are unequal to their male peers. Every time a girl is oppressed in a setting where she has the right to feel comfortable and safe in, it not only shows the young girl how society views her but it changes theRead More The Justification of Reverse Discrimination in Hiring Essay1580 Wo rds   |  7 PagesReverse Discrimination in Hiring,† Tom Beauchamp displays statistics of underrepresented races and genders in institutions. The inequality is due to the underlying persistent racism originating decades ago. It has been pervasively executed despite federal laws for equality. The expectation for a level-playing field is not a reality, as statistically show with underrepresented African Americans (1. Beauchamp, CC2011, p 0228). Beauchamp points out that at first sight, reverse discrimination appears

Accounting for Managers Financial Performance

Question: Discuss about the Accounting for Managers of Financial Performance. Answer: Introduction Interpretation of company financial performance over the years using ratios provides the increase or decrease in overall performance of company. Competitor analysis is also important to measure the relative performance of company in the same industry. The Present report has been undertaken in order to conduct financial analysis of publically listed companies for developing an in insight into its financial performance in year 2014 and 2015. The company selected in the report for the purpose is Qantas Airlines and Virgin Australian Airlines. Company Description Qantas Airlines Qantas Airways Limited is an Australian based company that offers both international and domestic transportation and freight services globally. The company has presence mainly in Australia, New Zealand, Asia, the United States and the United Kingdom. It has a workforce diversity of about 28,000 people belonging to various ethnic backgrounds. The company is headquartered in New South Wales and is publically traded on Australian Securities Exchange (ASX) with the code QAN (Qantas, 2016). It has a fleet of about 299 aircraft that includes about 11 freighters and provides services to domestic as well as international destinations. Qantas is recognized as largest domestic as well as international airline of Australia and thus has attained a strong brand position in the country as well as on a global level. The good brand position of the company is due to its excellent quality customer services in terms of safety, operational reliability, engineering and maintenance (Annual Report 2015: Qa ntas Airlines Limited). The company conducts its transportation services through the use of two airline brands that are Qantas and Jet Star. The main objective of the company is to expand its business operations through continually investing in new aircraft and products for optimizing operational efficiency and become one of the worlds largest airlines. The company is also recognized as one of the topmost airline of Asia-Pacific region (Qantas, 2016). The company aim to compete effectively across all sectors of the aviation marketplace and become one of the strongest global brands in the aviation sector. Virgin Airlines The strongest competitor of Qantas airline is Virgin Australian Airlines Limited in Australia. Virgin Australian is airlines based in New Zealand and is a fully owned subsidiary of Virgin Australian Holdings Limited (Annual Report 2015: Virgin Australia Limited). The company was previously known as Pacific Blue Airlines (NZ) Limited and was renamed as Virgin Australian Airlines (NZ) Ltd in the year 2011 (Virgin Australia Holding Limited, 2016). The company mainly operates its transportation services between Australian and New Zealand and too many other international destinations. The main international destinations of the airline include Brisbane, Gold Coast, Middle East, Pacific Island and South East Asian routes. Virgin airline is emerging as one of the strongest competitor of Qantas airlines having its own Boeing 737 and Boeing 777 aircraft to provide high quality services to the customers. It has also undertaken loyalty program similar to that of Qantas Airline and is also engage d in the operation of both domestic as well as international business (Virgin Australia Holding Limited, 2016). Thus, Virgin airline is also one of the strongest brands in Australia in aviation sector. Financial Analysis of financial report of Qantas Airlines and its competitor Virgin Airlines In this part of section interpretation of financial statements of the Qantas Airlines and its competitor Virgin Airlines will be performed in order to provide complete view of financial performance of the both the companies. The main motive is to evaluate the performance of Qantas Airlines and it is the reason why financial performance of Qantas Airlines is compared with the performance of Virgin Airlines. It will provide the actual performance of Qantas Airlines when compared with the industry average. In order to perform the financial statement interpretation financial data have been extracted from the annual report of both the companies for the years 2014 and 2015. Both the annual reports have been taken from the company websites and necessary details are presented in section of analysis. Financial Ratio Analysis Using ratios analysis as the financial tool to interpret the financial performance of the entity helps investors to gain the insight view of company overall performance in current year as compare to past years. Liquidity Analysis The analysis of liquidity ratios helps to know the company ability to pay the short term liabilities over the one year time period. Short term liabilities means liabilities that have to be paid in the one year span of time. The most common ratios that are used to determine the liquidity position of the company are current ratio and quick ratio. It can be said that higher the values in liquidity ratio means higher safety of margin and it shows the perfect position of company to meet their short term liabilities (Brigham and Ehrhardt, 2011). Items 2014 2015 Qantas Airways Limited Current Assets $ 4,932,000,000.00 $ 5,049,000,000.00 Current Liabilities $ 7,525,000,000.00 $ 7,470,000,000.00 Inventory and Prepaid Expenses $ 317,000,000.00 $ 431,000,000.00 Quick Assets $ 4,615,000,000.00 $ 4,618,000,000.00 Cash and Cash Equivalents Virgin Australia Holdings Ltd Current Assets $ 1,235,000,000.00 $ 1,586,000,000.00 Current Liabilities $ 1,921,000,000.00 $ 2,300,000,000.00 Inventory and Prepaid Expenses $ 113,000,000.00 $ 113,000,000.00 Quick Assets $ 1,122,000,000.00 $ 1,473,000,000.00 Ratios Formula 2014 2015 Liquidity Ratio Current Ratios Current Assets/Current Liabilities Qantas Airways Limited 0.66 0.68 Virgin Australia Holdings Ltd 0.64 0.69 Quick Ratio Quick Assets/Current Liabilities Qantas Airways Limited 0.61 0.62 Virgin Australia Holdings Ltd 0.58 0.64 Current Ratio Current ratio represents ratio of current assets divided by the current liabilities. Current refers to the assets that are convertible into cash and cash equivalents within one year span of period. It is ability of company that how frequently inventory can be converted into cash and cash equivalents. Current liabilities represent the amount that have to reimburse within one year time through using the working capital. On calculating the current ratio of Qantas Airlines for the year 2014 it has been found that results drawn are not satisfactory and it continue the same position in year 2015 through minor increase in proportionate values of current assets. The current ratio of Qantas Airlines in year 2014 was 0.66 and it increased to 0.68 in year 2015 that shows company has no sufficient current assets to pay the current liabilities (Annual Report 2015: Qantas Airlines Limited). On the other hand current ratio of Virgin Airlines was 0.64 in year 2014 and 0.69 in year 2015 (Annual Report 2015: Virgin Australia Limited). It reflects that both companies maintain same level of current assets in both the year. Overall comparison shows that current ratios of both the companies are not satisfactory and they need to put more focus on the level of working capital. Quick Ratio Quick ratio is also called as acid test ratio and it is similar to current ratio as it also measures the liquidity position of the company. The only difference between current ratio and quick ratio is that quick ratio measures the liquidity position in much better way as compare to current ratio. Quick ratio ignores inventory and prepaid expenses they cant be treated as cash and cash equivalents due to time taken by inventory to be turned into cash. Both Qantas Airlines and Virgin Australian Airlines keeps low level of inventory as both companies belong to service sector that requires no inventory or very low inventory depending upon the level of service they provide. Quick ratio of Qantas Airlines was 0.61 and 0.62 in year 2014 and 2015 respectively and on the other hand the quick ratio of Virgin Australian Airlines was 0.58 and 0.64 in year 2014 and 2015 respectively (Annual Report 2015: Qantas Airlines Limited). Looking at values of quick ratio in both the years it can be said that liquidity position of Qantas Airlines and Virgin Australian Airlines was not satisfactory and there is need to maintain good amount of current assets in order to easily render the amount of current liabilities (Annual Report 2015: Virgin Australia Limited). Profitability Analysis Profitability analysis checks the companys ability to earn the revenue through use of capital employed by the owners of the company. It tells the company profitability position over the period of time generally one year through measuring the net profit earned using assets and equity of the company. The two profitability ratios that are used to measure the earning capacity of the company are net profit margin ratio and return on equity (Buckle, Buckle and Thompson, 2004). Items 2014 2015 Qantas Airways Limited Net Revenue $ 15,155,000,000.00 $ 15,532,000,000.00 Gross Profit $ 7,552,000,000.00 $ 8,389,000,000.00 Net Profit $ (2,843,000,000.00) $ 560,000,000.00 Shareholders Equity $ 2,862,000,000.00 $ 3,442,000,000.00 Virgin Australia Holdings Ltd Net Revenue $ 4,303,000,000.00 $ 4,706,000,000.00 Gross Profit $ 3,095,000,000.00 $ 3,514,000,000.00 Net Profit $ (356,000,000.00) $ (111,000,000.00) Shareholders Equity $ 1,048,000,000.00 $ 1,077,000,000.00 Ratios Formula 2014 2015 Profitability Ratios Return on Equity Net Profit/Equity Qantas Airways Limited -99.34% 16.27% Virgin Australia Holdings Ltd -33.97% -10.31% Net Profit Ratio Net Profit/Revenue Qantas Airways Limited -18.76% 3.61% Virgin Australia Holdings Ltd -8.27% -2.36% Net profit margin ratio Net profit Margin ratio tells the profitability position of the company by reflecting the percentage of profits earned by the company from its operations after meeting all the expenses. It is vital to note that positive profit are essential to keep pace with the on going market conditions and to provide tough competition to the competitors. Here net profit ratio of Qantas Airlines and Virgin Australian Airlines was analyzed and it was found that both have poor profitability in both the years. It was Qantas Airlines that has earned positive 3.61% net profit in year 2015. Apart from it, both Qantas Airlines and Virgin Australian Airlines have faced negative returns in both the years. It shows that airlines industry in Australia had faced tough time during year 2014 and 2015. Return on Equity Return on equity is one the most important profitability ratio as it tells profit earned by using the own capital i.e. share capital. It shows the percent of profits earned using the shareholders equity. It has been found that both Qantas Airlines and Virgin Australian Airlines have employed very share capital as compare to debt capital. It shows that both the companies earn maximum part of revenue using the debt capital as the source of finance. Return on equity was -99.34 % in year 2014 and 16.27 % in year 2015 in case of Qantas Airlines whereas in case of Virgin Australian Airlines it was -33.97% in year 2014 and -10.31% in year 2015 (Annual Report 2015: Virgin Australia Limited). Overall analysis shows that profitability position of both the companies had been worst in year 2014. In year 2015, there was some improvement in profitability position in case of Qantas Airlines but no change was recorded in case of Virgin Australian Airlines (Morning Star: Qantas Airlines, 2016 and Vir gin Australia Holding Limited, 2016). Asset Efficiency Analysis Asset efficiency analysis is important as it tells how asset has been exploited by the companies to earn the maximum revenue. It has been noted the airline industry in Australia have faced many downturn due lack of passengers and increase in price of crude oil internationally. It is the reason why airline companies in Australia fail to utilize 100% of its assets and it results in decrease in revenue in year 2014 and 2015 (Houston and Brigham, 2009). Items 2014 2015 Qantas Airways Limited Net Revenue $ 15,155,000,000.00 $ 15,532,000,000.00 Fixed Assets $ 12,386,000,000.00 $ 12,481,000,000.00 Inventory $ 317,000,000.00 $ 431,000,000.00 Virgin Australia Holdings Ltd Net Revenue $ 4,303,000,000.00 $ 4,706,000,000.00 Fixed Assets $ 3,444,000,000.00 $ 4,194,000,000.00 Inventory $ 113,000,000.00 $ 113,000,000.00 Ratios Formula 2014 2015 Asset Efficiency Ratios Fixed Asset Turnover Turnover/Fixed Asset Qantas Airways Limited 1.22 1.24 Virgin Australia Holdings Ltd 1.25 1.12 Sales to inventory Turnover Turnover / Inventory Qantas Airways Limited 47.81 36.04 Virgin Australia Holdings Ltd 38.08 41.65 Fixed assets turnover ratio Fixed asset turnover ratio tells amount of sales earned upon total fixed assets applied by the company in the business. It shows the efficiency of fixed assets and how frequently they provide the revenue through proper use of assets. Larger the ratio will be more will be the efficiency of the fixed assets. In airline industry fixed assets make up the most important part for earning the revenue therefore this ratio is vital for he airline industry. The calculation of fixed asset ratio shows that Qantas Airlines has earned 1.22 times the revenue when compared with fixed assets in year 2014 while Virgin Australian Airlines has earned 1.25 times the revenue using its fixed assets in the same year (Annual Report 2015: Qantas Airlines Limited). It shows that performance of both companies is almost equal in year 2014 (Annual Report 2015: Virgin Australia Limited). Making comparison of ratio in year 2014 with ratio of year 2015, it can be said that performance of Qantas Airlines was almost e qual with ratio of 1.24 times in year 2015 while there was decrease in fixed asset ratio of Virgin Australian Airlines in year 2015 by 10.40%. It reflects that performance of fixed assets was decrease in case of Virgin Australian Airlines in year 2015. Other analysts believe that fixed assets turnover ratio behaves as the vital source for measuring the financial health of the airlines companies. As per the opinion of three party analysts the performance of Qantas Airlines was better when compared with the performance of Virgin Australian Airlines in year 2015 (Yahoo Finance: Qantas Airways Limited, 2016 and Yahoo Finance: Virgin Australia Holdings Limited, 2016). Sales to Inventory Ratio Sales to inventory ratio measures the performance of management through evaluating the use of inventory to make it convert in revenue. This ratio measures the efficiency of inventory for being convertible into revenue. More the ratio will be higher will the efficiency of inventory. In airline industry companies generally keep low level of inventory as main source of income comes from the fixed asset hold by the company. A sale to inventory ratio of Qantas Airlines was 47.81times in year 2014 and that of Virgin Australian Airlines was 38.08 times in the same year. It shows that performance of Qantas Airlines was far better than Virgin Australian Airlines in year 2014 as it was able to utilize maximum inventory to convert them into sales. In year 2015, the performance of Qantas Airlines goes down and it has not able to keep the same pace as in year 2014 (Annual Report 2015: Qantas Airlines Limited). The sale to inventory ratio of Qantas Airlines in year 2015 was 36.04 times showing a d ownfall by 24 %. While the sales to inventory turnover ratio of Virgin Australian Airlines in year 2015 was 41.65 times, reflecting increase in efficiency of inventory being used in year 2015 (Annual Report 2015: Virgin Australia Limited). Capital Structure Analysis Capital structure analysis helps to evaluate the proportion of capital being equity and debt used by the companies as the major source of finance their operation and to purchase the fixed assets. In the airline industry the major expenses occurred on purchase of fixed asset being planes for commercial purposes. Some part of capital is also been used in working capital for smooth working of operations (Bull, 2007). Items 2014 2015 Qantas Airways Limited Debt $ 6,931,000,000.00 $ 6,618,000,000.00 Equity $ 2,862,000,000.00 $ 3,442,000,000.00 Total Assets $ 17,318,000,000.00 $ 17,530,000,000.00 Virgin Australia Holdings Ltd Debt $ 1,711,000,000.00 $ 2,403,000,000.00 Equity $ 1,048,000,000.00 $ 1,077,000,000.00 Total Assets $ 4,679,000,000.00 $ 5,780,000,000.00 Ratios Formula 2014 2015 Capital Structure Ratio Debt Equity Ratio Debt/Equity Qantas Airways Limited 2.42 1.92 Virgin Australia Holdings Ltd 1.63 2.23 Debt Ratio Debt /Total Assets Qantas Airways Limited 0.40 0.38 Virgin Australia Holdings Ltd 0.37 0.42 Debt Equity ratio Debt equity ratio shows the proportionate amount of debt and equity being employed by the company in this business. Company must use equity as the major source of capital as compare to debt capital as it requires paying fixed rate of interest over the years. On the other hand equity is the owner capital and does involve payment of interest at regular intervals. Ratio of below 1.00 represents ideal proportion of capital being employed. Debt equity ratio of Qantas Airlines was 2.42 times I year 2014, while it was 1.63 times in case of Virgin Australian Airlines (Annual Report 2015: Qantas Airlines Limited). Therefore, it shows Qantas Airlines uses more debt capital as compare to Virgin Australian Airlines. In year 2015, the debt equity ratio of Qantas Airlines was 1.92 reflecting the decrease in debt capital when compared with year 2014. On the other hand, there was increase debt equity ratio Virgin Australian Airlines in year 2015 by 36.80% showing that company has raised debt capital to finance either purchase of fixed assets or to provide capital for smooth working of operations. Debt Ratio Debt ratio tells amount of debt the company holds as against the assets. Higher debt ratio represents the sign of leverage firm being charge on the fixed assets of the company. Debt ratio of Qantas Airlines was 0.40 in year 2014 and 0.38 in year 2015. On the other hand, debt ratio of Virgin Australian Airlines was 0.37 in year 2014 and 0.42 in year 2015. It shows that both companies keep more than 35 % of debt capital as the charge against fixed assets. Overall capital structure of both the companies was not sound as they use debt as the major source of capital and there was very less dependency on equity capital as source of finance (Annual Report 2015: Virgin Australia Limited). Market Performance Analysis Market performance analysis provides the vital source of information for the investors as it measures the relative performance of the companies based on market information. Ratios Formula 2014 2015 Market performance Ratio Earning Per Share Net profit for shareholders / Number of Shareholders Qantas Airways Limited $ (1.37) $ 0.27 Virgin Australia Holdings Ltd $ (0.11) $ (0.03) Earning per share Earning per share ratio tells net profit earned by the company over total number of shares issued in the market. It is calculated as net profit attributable to shareholders divided by total number of common shares issued in the market (Sagner, 2010). The EPS of Qantas Airlines was negative $ 1.37 in year 2014 and it got increased to $0.27 in year 2015. While in case of Virgin Australian Airlines the EPS was negative $0.11 in year 2014 and negative $0.03 in year 2015. Market performance of Qantas Airlines was better in year 2015 as compare to market performance of Virgin Australian Airlines in year 2015 (Morning Star: Qantas Airlines, 2016 and Virgin Australia Holding Limited, 2016). Conclusion Financial analysis using ratio helps to get the overall performance of company in the current year as compare to previous year. In his report financial performance of Qantas Airlines was evaluated for year 2014 and 2015 and it was than compared with performance of Virgin Australian Airlines. It was found that overall performance of Qantas Airlines was better than Virgin Australian Airlines in year 2015 and there was scope of increase in financial performance in case Qantas Airlines. It is recommended to investors to hold the shares of Qantas Airlines in order to earn a better return in future period. References Annual Report 2015: Qantas Airlines Limited. Retrieved 14 October, 2016, from https://www.qantas.com.au/infodetail/about/investors/2015AnnualReport.pdf Annual Report 2015: Virgin Australia Limited. Retrieved 14 October, 2016, from https://www.virginaustralia.com/cs/groups/internetcontent/.../annual-report-2015.pdf Brigham, E. F. and Ehrhardt, M. C. 2011. Financial Management: Theory and Practice. Mason: Cengage Learning. Buckle, M.J., Buckle, M. and Thompson, J. 2004 . The UK Financial System. 4th ed. New York: Manchester University Press. Bull, R. 2007. Financial Ratios: How to use financial ratios to maximise value and success for your business'. UK: Elsevier. Houston, J.F. and Brigham, E.F. 2009. Fundamentals of Financial Management. Cengage Learning. Morning Star. Qantas Airlines. 2016. Retrieved 14 October, 2016, from https://financials.morningstar.com/ratios/r.html?t=QUBSF Morning Star. Virgin Australia Holding Limited. 2016. Retrieved 14 October, 2016, from https://financials.morningstar.com/ratios/r.html?t=VAH Qantas. 2016. Our Company. Retrieved 14 October, 2016, from https://www.qantas.com/travel/airlines/company/global/en Sagner, J. 2010. Essentials of Working Capital Management. USA: John Wiley Sons. Virgin Australia Holding Limited. 2016. Reuters. Retrieved 14 October, 2016, from https://www.reuters.com/finance/stocks/companyProfile?symbol=VAH.AX Yahoo Finance: Qantas Airways Limited. 2016. Retrieved 14 October, 2016, from https://in.finance.yahoo.com/q?s=QAN.AX Yahoo Finance: Virgin Australia Holdings Limited. 2016. Retrieved 14 October, 2016, from https://finance.yahoo.com/quote/vah.ax?ltr=1

Managements Definition

The term management as often used in English is derived from the Italian word managgiare, which literally means to handle, the Latin word manus which means hand and lastly from the French word mesnagement which founded the modern day management. This brief explanation on the development of the term management is very crucial in coming up with an absolute definition of management in the scope of this study.Advertising We will write a custom research paper sample on Management’s Definition specifically for you for only $16.05 $11/page Learn More The term management can be defined as the articulate process in which any system systematically combines all its resources ranging from the financial to the human capital in the organization by effectively and efficiently coordinating them in a manner that guarantees that the cardinal objectives and goals of that particular system are achieved (Murugan, 2007). Mintzberg, a renowned researcher and scholar in the field of management defined management roles as the specific managerial behaviors that are exhibited by managers in any system. It is evident from his work that this specific behaviors are articulated on a number of factors are include interpersonal relationship, transfer of information and lastly the decision making process of the organization. These three factors interlink around ten interrelated roles of the management (Dubrin, 2011). The interpersonal role includes the leadership roles, the figurehead and the liaison roles. These roles involve the people in the organization and the ceremonial duties of the organization. The information managerial roles include the monitoring, disseminator and spokespersons roles and they are involved with the collection, receivership and the dissemination of information in the organization. Lastly, the decisional roles that entail the choosing of an alternative over the others that is, making of a decision that is expected to benefit the org anization. This facet of the managerial roles has the following sub-roles under its umbrella: entrepreneurial, negotiator, resource allocator and disturbance handler roles (Murugan, 2007). In any kind of a system, management is paramount and this creates a similarity in the functions that are undertaken by management teams in the quest of ensuring that their organizations run smoothly. It is the goal of the management to ensure that organizations are working as a unit in pursuit of their goals and responsibilities in an organization. The organization’s objectives are achieved via the planning, organizing, leading and controlling functions of the management. These functions are vital and none has precedence in its application over the other.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The planning function encompasses the generation and development of strategies or plans of action that are expected to affect the organization in the medium term or long-term. This function of the management demands that the managers be aware of the environmental conditions that the organization is facing and from the observations made, it should be able to forecast the conditions that are in all probabilities are going to face it in the future and thus it is paramount that the managers be good decision makers (Shim Siegel, 2009). The organizing function of the management entails the development of organizational structures that run the organization and the allocation of duties to the organization’s human capital with the objective of attaining the objectives. The organizational structure that governs the organization is the framework that coordinates the efforts in the system. The leading function encompasses influencing the organization human resource towards the attainment of the organizational objectives. It should be noted that an effective management shou ld motivate its workers through effective and efficient communication processes by using the power and authority bestowed on it effectively. The controlling process of the management is involved with ascertaining that organizational performance in the production of goods and services is up to standard and it does not deviate from the set out processes or procedures (Dubrin, 2011). An important tenet in analyzing management issues in the organization is the behavioral perspective that is exhibited by a faction of the organization employees. Behaviorism entails all things people do an organization do in response to the decisions that the organization management undertakes. It should be noted that at times, the employees could embrace or resist the decisions of the management (Murugan, 2007). There exist a number of moral challenges that affect multinational companies or persons who are involved in doing business in different countries. This is because the expectations are projected on these businesses are staggeringly high. For instance, in the developed countries, the moral expectations that are projected towards the business person or company are stringent, while in the third world countries, the expectations are quite lax thus creating room for the production realms of multinational companies to produce substandard goods in these countries.Advertising We will write a custom research paper sample on Management’s Definition specifically for you for only $16.05 $11/page Learn More The most major moral challenges that are faced by business people or multinational companies in doing business in different countries include: demand for bribes by authorities especially in the third world countries, influence from foreign countries to the host country and lastly exploitation of the host countries by the uncouth business people (Fieser, 2011). Operations management is a tenet of management that is mandated with overseeing the design ing and subsequent revision of the designs that were adopted by management in the production of the goods and services in the organisation. This facet of the management is responsible for ascertaining that production processes of the organisation are effective and efficient. This is achievable by use of as little raw materials that are needed as possible, establishment and subsequent attainment of the customer requirements. It is in this facet of organisation management that is held liable with approving the production processes that are employed by the organisation in converting inputs that are in form of raw materials such as lime used in the production of cement, the labour employed and lastly the energy required into outputs such as goods or services that are consumed by consumers (Shim Siegel, 2009). The term â€Å"team† has become a buzzword in many organizations in the recent past and this has arisen from the benefits that are being derived from the formation of teams . Teams have benefited individuals making them more effective in comparison to performance as isolated individuals. The benefits that have been derived from teams include: teams have given all the team members the opportunity to attain new skills that enhance their capabilities to solve more complex issues in the future. Also, teams encompasses persons from different factions of the organization and therefore, enhance creativity thus ensuring that more ideas are generated leading to formulation of better solutions to problems that could be facing the organization. It is evident that teams offer the team members a platform on which they can seek help if they need it (Midura Glover, 2005). It should be noted that the benefits highlighted in this study are not conclusive, but depict a tip of all the benefits that are derived by the organization and the individuals from the team. References Dubrin, A. J. (2011). Essentials of Management. Upper Saddle River: Cengage Learning.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Fieser, J. (2011). Business Ethics. Web. Midura, D. W., Glover, D. R. (2005). Essentials of team building: principles and practices. New York: Human Kinetics. Murugan, M. S. (2007). Management Principles And Practices. New York: New Age International. Shim, J. K., Siegel, J. G. (2009). Operations Management. London: Barron’s Educational Series. This research paper on Management’s Definition was written and submitted by user D00msdayMan to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Carlos Ghosn and Renault

Introduction Nissan being the second largest company in the automobile industry in Japan recorded a significant increment in their sales profit in the year 2006.Advertising We will write a custom case study sample on Carlos Ghosn and Renault-Nissan: Leading for Global Success specifically for you for only $16.05 $11/page Learn More However, due to unpredictable shifts in the market they suffered substantial losses before Renault chipped in and appointed a new CEO; Carlos Ghosn. Carlos then took charge of the company and his leadership brought it back to a profitable level in the competitive market. This paper, aims at discussing Carlos Ghosn leadership, the strategy used by Nissan Motor Company globally and its efficiency, the company’s organizational culture, its characteristics when doing business in the world and the view of Nissan’s recognition at home as compared to the way it is picking up worldwide. Carlos Ghosn Leadership On Carlos Ghosn appointment as the new CEO of Nissan, he outstandingly transformed the company’s status by focusing on the goals of the organization entirely in his leadership. In his vision for a lasting solution, he addressed the bankruptcy problem by using a unique approach; cutting down the company’s expenditure, expanding the profit-making avenues globally and sharing costs through the introduction of another stockholder. This highlighted his global mindset trait. Additionally, the partnership approach that he adopted not only saved the company but also created the visionary sense in the company and its employees. Carlos Ghosn had a vision by acting and committing himself to the goals of the company instead of just leading with words. It is evident when he took his own initiative in supervising and pressurizing the employees into meeting their targets on sales.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More As a charismatic leader, he displayed his best leadership trait through constant communication with employees. Hence, he motivated them into increasing their output because they felt they belonged in that company. Another trait he had, as a visionary leader, involved his tactical introduction of the proactive style in the company’s decision-making; and his adequate preparedness in anticipation for any problems arising. Additionally, he displayed boldness and creativity by refusing to follow Japanese culture of business. Instead, he introduced the proactive style approach in his Nissan’s organizational culture with a vision for its success. Nissan’s International Strategy The company continuously invested in new technologies and products that evolved often. Nissan did not limit its business to Japan only instead, it ventured globally for example; they established the Mississippi plant in America. In order to meet the alarming dema nd from its customers, Nissan expanded to China and erected another plant to design new products for the growing market. The company ideally established more plants in other countries in the world to increase their production output and expand their territory with the aim of closing in on the foreign markets. The company focused its strategy primarily in the global market rather than domestic. Nevertheless, in search of cheap but high quality labor, it acquired some business territory in the underdeveloped countries and established more automobile production plants.Advertising We will write a custom case study sample on Carlos Ghosn and Renault-Nissan: Leading for Global Success specifically for you for only $16.05 $11/page Learn More This global strategy reported positive benefits for Nissan such that they improved uniformity in its branches and their attractive business image portrayed to the world. The financial benefits Nissan observed as a result o f this strategy grew to over $500 million every year for every model the company sold hence their remarkable profit-margin increase. Furthermore through establishing their roots in other countries Nissan ensured it met its rapid growing customers’ demands and in return, they closed in on the foreign markets; adding their profit percentage. Strategizing globally, especially in the United States regarded as the biggest competitive market earned Nissan free publicity through the high quality brands displayed and sold there such that they started gaining control over the motor world exporting industry. Organizational Culture The bureaucratic culture commonly used in Japan never featured as Nissan’s organizational culture; instead, Carlos Ghosn took a massive risk in an effort to achieve his vision for the company; by introducing the proactive approach style in decision-making. It was an assumption in Japan that giant companies always failed, but Ghosn maintained the expans ive Nissan and even cut down on its suppliers to three. Nissan had a centralized structure, which included senior management and the staff that worked together as a team in meeting the targets in sales hence improving the company’s profit.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Nissan’s top management always acted fast in readiness for any problems that arose. This wiped out most obstacles to the company’s productivity before hand. They operated business in urgency; there was rush decision-making, fast handling and solving of business-related matters and problems. Ghosn played a crucial role in developing Nissan culture by introducing the new style of decision-making, a strategy that challenged all Japanese competitors. He set the fast pace culture in Nissan’s performance through delegating duties and pressure on his staff into accomplishing the set targets in sales. Having been fluent in English, he further went ahead and made English the standard language used in Nissan because the company is at a better chance of competing globally than the limitation of speaking only Japanese. He channeled the hardworking spirit in all Nissan employees by his hands-on approach when leading his staff; though he pressured them for results, he also co mmunicated and interacted with them at their level. These build the culture of integration in the company and team spirit that ensured Nissan high productivity. The Global Integration Trend Most company’s continuous efforts towards expanding their markets in other countries aim into global integration. The trend characteristically entails having a fast growing international network, leadership that skillfully manages all the international branches, increased ties and collaboration from other countries and a technologically equipped economy of scale. Nissan demonstrated this by a structured leadership of four directors who had an international base; which they used to congregate and strategize on how to increase the value of their chains in the global market. It also went further and expanded its manufacturing base, production and its market for selling its products; the most remarkable being the installation of more centers to spread their engineering activities international ly. Nissan also competed in the biggest world market hence increasing their global efficiency and control in the foreign market. Integration Responsiveness Framework and Local Responsiveness The main objective for this framework goes in achieving cohesion internationally and positive feedback from the domestic market, as well. Evidently, Nissan expanded its operational base by having new structured plants and engineering centers in Europe and other countries. It reduced its production costs by adopting cheap labor for the neighboring countries like Philippines hence the significant improvement in their economic efficiency globally. However, they faced pressure in trying to meet the different tastes and demands of their customers in different parts of the world. They even incorporated new technique in engineering to achieve uniformity in their models. They never suffered when sourcing for raw materials though they tasked for cheap and high-quality labor in the underdeveloped countrie s. Nissan faces the challenge of keeping itself afloat in the competitive market like in the U.S and still maintain itself as fast growing distribution chain and purchasing market. Hence, their investment in the U.S. is the aim of leveling with other competitors in the automobile industry. Turning to Local Responsiveness, Nissan had to shift its design to the Chinese to satisfy its clientele base. In an effort to remain competitive but maintain its distribution chains, they manufactured hybrid design of vehicles to satisfy their clients. This stretched their labor, production, and operational costs hence the partnership in sourcing for raw materials. Despite the pressure, Nissan benefited through this IR framework by gaining fame in the world market and uniformity in its model production. Their market efficiency also increased tremendously and as they took advantage of the high demand rate, they acquired control and competitive power in the foreign market. The local response towards Nissan gave the company and its shareholders freedom to venture and expand their business into the world market due to the improvement in their distribution structure. Conclusion Nissan’s success and the emergence in the future global market mimicked the dimension of all global companies constituting all the discussed components in organizational management. Globalization may not be easy, but strong leadership and This case study on Carlos Ghosn and Renault-Nissan: Leading for Global Success was written and submitted by user Mario Ferrell to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Beer, It Does a Body Good.

Beer, It Does a Body Good. On the Grasslands of Africa, the packs of lions turn the grassy feeding ground of the zebra into their slaughterhouse floor. The lions hang back observing the herd. They eye out the old, lame, or very young to maximize their assurance of success. They stay low and out of sight of the zebra, being careful not to be spotted.... Although some zebra will die today, the lions are indirectly assuring that the "herd" of zebras will continue.Darwin believed that by the killing of the weak of a species that the stronger, more vertile of the group would be left. Thus maximizing their ability to feed, multiply, and otherwise function to the maxim of their ability. By the weak zebras dying, they are streamlining the heard and increasing the herds amount of grazing land, not to mention the gene pool being saved from their inferior seed.Just as some in society believe you can take this basic theory and apply it to social issues, a small group as people think we college students can do the same wit h our brains through the mass consumption of alcohol.English: Rose Street Pedestrianised shopping stree...Exactly what is a mass amount? Binge drinking is defined as taking five or more alcoholic drinks in a row. (Wechsler ET al., 1997) A local "Brain Trust" that I asked while doing research for this subject had this to say about this definition of binge/mass consumption of alcohol. " Think this is pre-posterous, this Wechsler person is a real panty waist. How can someone be an expert on the binge drinking if they can't drink more than five beers?"If more than five beers are not a sufficient amount used to define binge drinking? I headed back to Mr. Burton for an answer. As luck would have it Mr. Burton "the local...

The importance of integrity and leadership Essay

The importance of integrity and leadership - Essay Example As employees are instrumental in driving a company’s bottom-line integrity and leadership impact organizational performance. The review also found a positive correlation between profits and focus on corporate social responsibility. As the world is still struggling to come out of the 2008 financial crisis, people have realized the need to follow strong ethical conduct in business dealings. Most of the organizations in the early 21st century started following the practice of rewarding the managers, who showed high profits, with huge bonuses and pay packets with no regard to the means they were adopting. Corruption, back stabbing and data fudging by managers were accepted as part of the game and the performance linked bonuses increased their greed at every success. This review aims to understand how ethics and leadership impact an organization. It attempts to understand how a leader can demonstrate ethical behavior and what impact it has on the overall performance of the organization? The importance of integrity and leadership has always been an important topic for study by researchers. This can be demonstrated by a number of studies that were done during the late 20th century to show the link between ethics and business performance as well as leadership integrity. Preston conducted a research on 67 companies over a period of 11 years to find out whether there was any causal relationship between financial performance and the company’s CSR policy (Corporate Social Responsibility which can be considered as a proxy to integrity) (Verschoor, 1998). He found that there was no significant negative relationship between the two. However, he found that both were positively related implying higher the CSR performance (integrity perception) higher the business performance. Other studies too found a positive relation between the two. There were some studies which found no or mixed relation