Finance and Accounting in the Hospitality Industry

Finance and Accounting in the Hospitality Industry Introduction. According to the Barrows Powers (2009, pp. 3-5) hospitality industry has included hotels , restaurants and other related organisations to the food industry and it has given more emphasis on providing customer sensitive products and services in order to gain profitability and customer satisfaction. Hence, the application of finance and accounting has been done a great deal to achieve such requirements for the hospitality industry. The applications of finance in the hospitality industry has been discussed under several ways of this assignment. Further it has focused to understand the sources of funding and income generation for the business and services industries as well as understand the business in terms of the element of cost. In addition that it has given more intention to evaluate the financial statements of the selected businesses which are in the hospitality industry. Apart from that, this has emphasise the analysis of the performance of the business by using ratio analysis techniques. Finally it has focused to apply the marginal costing concept to evaluate the short term management decisions. Task 01. 01.1 Sources of funding available to business and service industries. Sources of funds are very important to decide management decisions as well as long term strategies of any organisation. As per the Sharan (2005, pp. 210-218) following funding methods should be noted. Retain Profits. Increasing the revenue and reducing the cost this can be increased in a systematic manner. Bank Loans. It is advisable to go for a loan under lower interest rate. Because if the loan interest rate is higher than the companys return on investment, then it will cause liquidity problems in the future. Bank Overdraft facility This is subject to higher interest rate and recommended only for a limited time period. Issuing share to the public Ordinary shares less cost to the organisation but more power has been given to them. But preference share has less controls over the company but subject to a higher cost to the organisation since they have to pay pre-determined dividends on time. Franchise option. This is recommended to expand the business chain with an association with medium scale merchants to promote companys products and goodwill. Hire purchase schemes This also important to manage the cash flow situations of the organisation without investing higher capital for equipments plants. Lease Schemes This also important if the company have not greater funds to invest for their assets. But this is subject to higher interest cost. Credit purchases This is important to manage the working capital position of the organisation . Since agreement with many suppliers can be obtained credit period to pay the cost of goods purchased. Debt Factoring This important to get the cash in early by giving commission chargers to the factoring company to collect their debts very quickly. Sponsorship This is ideal by collecting funds from other organisations and giving chance to promote their names. As per the Banjerjee (2010, pp. 47-58) following funding options also to be considerable. Debenture issue to investors Right issues to shareholders Business Amalgamation Mortgages Venture capital strategies to expand the operations. 01.2 Methods of generating income and contribution to business service operations. According to the Hayes Miller (2011, pp. 5-20) generating income and contribution to the hospitality industry can be identified in following way. Sales In the case of hospitality industry is concerned such as hotels, are providing rooms, foods, beverages and other supportive services in order to generate income from that. Commission. This commission income will be received from the third party supplier to the organisation. Sponsorship This will be received from other organisations to promote their names. Grants Grants are receiving from the government , any other authority. Sub letting This can be generated by sub letting the premises to external parties, such as fancy item shops , flower shops , jeweler shops, etc. Task 02. 02.1 Elements of costs, gross profit and selling prices for products services. Element of Costs According to the Davis Davis (2012, pp. 25-34 ), followings can be identified as the elements of cost in the hospitality industry. Materials Material cost is the cost component in the final product or services which incurred mainly to provide particular products and services. Eg : Linen , Cutlery, Glassware , China , Silverware, Consumables Consumables are the main cost component in the final products in the hospitality industry. This requires further processing to deliver the final product to the customers. Eg : Foods and Beverages Labour Labour cost is the cost which are incurred for the main operating functions of providing final product or services of the organisation. Eg : Salary paid to waiters, kitchen staff front office staff Overheads Overheads are costs which incurred for indirect materials , indirect labour and other indirect cost. These costs cannot be identified specifically with the final product or service. Eg : Salary of admin department, electricity, stationery Selling Price and Gross Profit Margin According to the Kotas R. (1999 , pp 99-107) pricing methods used by the hospitality industry can be identified as follows. Pricing in Tourism ( Peak / Peak off trading price ) Selling price on peak seasons prepared by adding a higher markup to the operational cost as selling price. While in peak off seasons it is adjusting by reducing mark up and offering discounts for the selling price while concerning the competition in the market. Conventional Pricing Method. ( Rate of return pricing ) Here, it is emphasised that setting separate contribution margins to the different revenue segments ( such as foods, beverages, room, other operational segments ). After that it has to select the profit maximising contribution rate. Finally, the selling price will be based on the selected profit maximising sales mix. Gross Profit will be computed by deducting cost of sales from sales. Absorption Pricing Method Here, variable cost per unit has to be computed first and after that overhead cost to be absorbed to the unit cost. Finally markup to be added to the total cost to set as the selling price in order to gain required profit. Contribution Pricing Method. ( Marginal Costing) It is required to categorise the cost as variable fixed. Then the variable cost per unit has to be computed and based on the variable cost per unit, required contribution to be decided to arrive selling price. There is no absorption of overheads and fixed cost to the unit cost of the product. The Gross profit margin will compute after deducting the variable cost of the sales. Backward Pricing Method. This is a method of adjusting the operating cost to a fixed rate. In this case local or national trade organisations has decided fixed selling price and other members have to be accepted this price . Once they need to change this rate, meet again and decide the new price. Product and Service Costing. Selling price decided by adding a predetermined percentage of service charge to the unit cost, after adding the profit mark up to the unit cost. 02.2 Methods of controlling stocks and cash in a business services environment. Stock Controls Proper stock controlling is the way to smooth functioning of daily operations working capital management in an organisation. According to the Ryan B. (2004, pp: 355-361) following inventory controls are recommended. Compute economic order quantity level and re order level of the inventory. Required to avoid the unnecessary stock purchases . Create Just in Time inventory management system. Hospitality industry, mostly dealt with the perishable goods (foods beverages). Therefore it is ideal to maintain a JIT inventory system to eliminate the wastages, losses, and inventory handling cost. Implementation of ERP software programme for the inventory management. This ensures the updated accurate information linkage within the organisation to take proper inventory related decision on time. In other hand Warren et al (2008, pp: 270 271) emphasise important two controls over inventories. Safeguarding the stock from damage and theft. By restricting the store area only to authorised staff members, and it encourages to lock the high value items in a locker while usage of a camera system and security. Reporting the stocks in the financial statements. It is required to conduct a physical stock count at the year end and take the figures into accounts, while identifying any mismatch between system physical figures. Cash Controls Holding considerable cash amount is encouraged to conduct smooth functioning of working capital management. According to the Needles and Powers ( 2011, pp: 399 403) there should be following controls over the cash. Implementation of dual control over the cash. It is important to give authorisation for two persons to verify handle the cash balances to eliminate the cash thefts or manipulations. Preparation of bank reconciliations. Required to identify the reasons for the differences in cash book figure with bank statement balance. Conduct a physical cash count in random basis. This will help to minimise the misconduct by the staff who has handled the cash. Task 03. 03.1 Final accounts analysis of Valentina Hotel Ltd. 03.1.1 Source and structure of the trial balance. Sources of the trial balance are concerned, Kotas and Conlan ( 2007, pp. 101-115) it has been categorised under three ledgers , namely general ledger, sales ledger and the purchase ledger. Purchased ledger consists the personal accounts of suppliers (Creditors). Sales ledger relates to personal accounts of customers (Debtors). While general ledger consists impersonal accounts. Such as nominal accounts and real accounts. Nominal accounts refer to income and expense accounts. While real accounts refer to the assets and equity accounts. The structure of the trial balance is concerned , Jagels (2007, pp. 20-21) it has been categorised under the following way. Current Assets Fixed Assets Contra Assets Current Liability Long Term Liability Owners Capital Contra Capital Contra Revenue Revenue Expenses Therefore the trial balance consists of accounts which having debit credit balances and which all of them are summed up at the end. The trial balance of Valentina Hotel Ltd can be summarised as follows. Current Assets Bank / Cash / Debtors Fixed Assets Contra Assets Building / Equipment / Acc. Depreciation Current Liability Creditors Long Term Liability Long term bank loan / Debentures Owners Capital Ordinary share capital / Retained Profit Contra Revenue Opening Stock Revenue Sales Expenses Salaries / Loan interest / Marketing / Energy / Communication / Rates Insurance / Purchases 03.1.2 Evaluation of final accounts 03.1.2.1 Income Statement. Income Statement of Valentina Hotel Ltd for the year ended 28th February 2010.  £ 000  £000 Sales 2, 040 Less: Cost of Sales Inventory (01/03/2009) 49 Purchases 1, 360 1,409 Less: Inventory ( 28/02/2010) (51) (1,358) Gross Profit 682 Admin Operating Expenses Business rates insurance ( 67 3) 64 Wages salary (262 + 5) 267 Depreciation ( 250 * 25%) 62.5 Communication expenses 36 Energy Cost 49 (478.5) Selling Distribution Expenses Marketing 79 (79) Finance Expenses Debenture interest (200 *6%) 12 Loan interest 4 (16) Profit Before Taxation ( PBT) 108.5 Less: Income Tax (39) Profit After Taxation (PAT) 69.5 Less: Dividend declared ( 100*0.15 ) (15) Retain profit for the period 54.5 03.1.2.1 Balance Sheet. Position Statement of Valentina Hotel Ltd as at 28th February 2010. Assets  £ 000  £ 000  £000 Non Current Assets Cost Acc. Dep. NBV Buildings 400 400 Equipments 250 112.5 137.5 650 112.5 537.5 Current Assets Inventory (28 / 02 / 2010) 51 Debtors 92 Pre -paid Insurance 3 Bank 3 Cash 1 150 Total Assets 687.5 Equity Liability Equity Reserve Stated Capital (  £1 Ordinary shares) 100 Reserves Retained Earnings ( 157 + 54.5 ) 211.5 311.5 Non Current Liabilities 6% Debentures 200 Long Term Bank Loans 60 260 Current Liability Creditors 45 Wages salary payable 5 Debenture interest payable 12 Income tax payable 39 Dividend payable 15 116 Total Equity Liabilities 687.5 03.2 Budget and variance analysis of Valentina Hotel Ltd. 03.2.1 Process and purpose of budgetary controls. According to the Needles et al (2010, pp. 966) budgetary control is the use of a comprehensive system of budgeting to aid the management in carrying out its function such as planning , coordination and controls. Purpose of Budgetary Controls. The purpose of budgetary controls can be recognised, according to the Kotas R. (1999, pp. 177-180) in following manner. Achieving business targets. Delegating responsibilities to the staff. Optimum resource utilisation. To take corrective actions. Well coordination of work. As a basis of future policy Use as a basis of performance measurement Process of Budgetary Controls According to the Needles et al (2010, pp. 966-969) budgetary control process can be identified as follows. Period of Budget. This may be one year or sometimes it can be continuous from previous time to next time. Approach of Budget. Selecting a suitable method to use a budget. Such as zero based budgeting . Implementation of Budget. Implementation should be done after preparing approving the budget for the period. Performance Measurement. Measure the actual performance with budget during the budgetary period. Identification of differences in actual with budgeted performance. By conducting a variance analysis. Take corrective action. Corrective procedures required to produce the performances which are closer to the budgeted performance. 03.2.2 Variance analysis. Computation of RM Variances Raw Material Total Variance = Standard Cost Actual Cost = ( 10,000* $ 10) $ 98, 600 = $ 1,400 F / + Raw Material Price Variance = Qty. Used ( Standard Price Actual Price ) = ( 11,700 * $ 10 ) $ 98,600 = $ 18,400 F / + Raw Material Usage Variance = Std. Price ( Standard Usage Actual Usage ) = $ 10 ( (10* 1,000) 11,700 ) = $ 17,000 (A) / Analysis of variances It has shown $ 1,400 favourable total raw material variance from the budgeted figures. It indicates that actual material cost is less than the budgeted material cost and it is in the, within the controls. Further there is a $ 18,400 favourable raw material price variance from the budgeted figures. This indicates that the actual price is less than the budgeted price. However it has $ 17,000 adverse raw material usage variance from the budgeted figures. This means, RM usage are in out of the controls. Suggestions for appropriate future management actions Take corrective actions to eliminate the over usage of RM. Setting new procedures to reduce the wastage of RM. Implement new controls to monitor the RM usages. Check whether such variance is controllable or not. If it is controllable, then corrective action to be taken. If not a revision of standards is recommended. Task 04. 04.1 Ratio analysis of Audalucia Hotel. Profitability Ratio Gross Profit Ratio of the company has been declined by 15.14% ( Appendix A) compared to the 18.33 % of this year with 21.60 % of last year. Net Profit Ratio also declined by 30.56% ( Appendix A) compared to the 3.59 % of this year with 5.17 % of last year. Apart from that Return On Capital Employed (ROCE) also decreased by 31.73% ( Appendix A) compared to the 8.24 % of this year with 12.07 % of last year. This incurred due to increase in expenses cost of sales. Liquidity Ratios Current Ratio of the company has been increased by 0. 52 times ( Appendix A) compared to the 3.68 : 1 of this year with 3.16 : 1 of last year. Quick Ratio decreased by 0. 50 times ( Appendix A) comparisons to the 2.43 : 1of this year with 2.93 : 1 of last year. This incurred due to over fund usage on closing stock. Efficiency Ratios Inventory Turnover Ratio of the company has been decreased by 36.25 times ( Appendix A) compared to the 17.37 times of this year with 53.62 times of last year. Inventory Turnover Period has been increased by 14 days ( Appendix A) compared to the 21 days of this year with 7 days of last year. Debtors Turnover Period has been decreased by 7 days ( Appendix A) compared to the 39 days of this year with 46 days of last year. Creditors Turnover Period has been decreased by 5 days ( Appendix A) compared to the 25 days of this year with 30 days of last year. This incurred due to over fund utilisation on stock, increase of debtors creditors. Investors / Financial Ratios Earnings Per Share (EPS) of the company has been decreased by  £ 0.21 ( Appendix A) compared to  £ 0.25of this year with  £ 0.46 of last year. This has incurred due to low profit earned during the period and new share issue. 04.2 Appropriate future management strategies for business and service operation. Following strategies to be taken by the management to eliminate the discrepancies identified in the ratio analysis. Reducing the selling price volume of sale should be increased to gain higher revenue. Unnecessary fund utilisation on the stock should be reduced. The JIT stock system to be implemented to minimise the stock handling cost. Take necessary steps to reduce the expenses in regularly. Negotiate with suppliers to obtain longer credit period while asking lower credit period to the customers. Follow proper cash flow management procedure within the organisation. Implement new procedures to attract the customers to the company to increase the sales while conducting discounts promotions. Non Current Asset should have used in very efficient effective manner to generate income from it. Task 05. 05.1 Categorisation of costs of Leicester Square Hotel. Fixed Cost As per the Horngren et al (2009, pp: 28-29) fixed cost is the cost which remained unchanged in total for a given period regardless of changes in volume or activity. Eg : Fixed Cost of the hotel operation  £ 1,600,000 Variable Cost According to the Drury ( 2008, pp. 32-34) variable cost is the cost which changes in direct proportion to the volume of the activity. Eg : VC of Food sales per room  £ 7 VC of Beverage sales per room  £ 2.4 Semi Variable Cost According to the Kinney Raiborn ( 2011, pp. 28-29) semi- variable cost is the cost which consists both fixed and variable components for a given activity. It remains as fixed up to a certain level and beyond that it will be variable based on the volume or activity. Eg : Variable Cost per occupied room  £ 15 VC of Minor operations departments per room  £ 1.2 05.2 Cost / Profit / Volume analysis of Leicester Square Hotel. Computation of Contribution per product / customer ( in  £ ) Description Room Foods Beverages Minor Dept. Total Selling Price 120 20 8 2 150 Variable Cost (Appendix B) (15) (7) (2.4) (1.2) (25.6) Contribution 105 13 5.6 0.8 124.4 (Per product/customer) Net Profit Computation ( in  £ ) Sales ( 150 * 100 * 365) = 5, 475,000 Less : Variable Cost (25.6 * 100 * 365) = ( 943,400 ) Contribution (124.4 *100* 365 ) = 4, 540,600 Less : Fixed Cost = ( 1,600,000 ) Net Profit = 2,940,600 Break Even Point Computation BEP ( in units ) = Fixed Cost Contribution per customer = 1,600,000 124.4 = 12,861.74 ÃŽÂ © 12, 862 ( Customers ) BEP ( in  £ ) = BEP ( in units ) * Selling Price = 12,862 * 150 = 1,929,300 Cost -Volume -Profit Relationship Value (  £ 000 ) TR Total Revenue ( £ 5,475 ) ( £5,475) Profit ( £ 2,940.6) Profit BEP BEP ( £1,929) VC ( £ 934.4) Loss FC ( £ 1,600 ) (Customers ) 0 BEP ( 12,862 ) (36,500) According to the Blocher et al (2006, pp 238-241) Cost-Volume -Profit analysis is the method of analysing how operating decision and marketing decision affects the net income based on the relationship between cost ( VC FC), volume (output level ) and selling price. The hotel is required to sell 12,862 rooms to the customers to achieve breakeven point of sales. According to the Hansen et al ( 2009, pp. 591-595) Breakeven point is the level at which revenue is equal to the total cost and the profit is zero. Since they can obtain  £ 1,929,300 revenue to cover the total cost and beyond that they can earn profit from every additional customers. If the hotel unable to achieve 12,862 customers per annum, they have to suffer with losses. The Hotel can earn contribution of  £ 124.4 from every customer and if they achieve the expected sales level of 36,500 customers , they can achieve  £ 2,940,600 profit for the period. 05.3 Justification of short term management decisions based on CPV analysis. Margin of Safety ( in units ) = Expected Customers BEP Customers = ( 365 * 100) 12,862 = 36,500 12,862 = 23,638 Margin of Safety ( in  £ ) = Margin of Safety ( in units ) * SP = 23,638 * 150 = 3,545,700 Degree of Operating Leverage = Contribution Margin Net Profit = 4,540,600 2,940,600 = 1. 54 ( low risk ) According to the Blocher et al (2006, pp 249-252) margin of safety is the amount or units of sale above the sales. In that case hotel can generate  £ 3,545,700 turnover by 23, 638 customers. It indicates that this hotel investment is worth. As per the Hansen et al ( 2009, pp. 597-598) degree of operating leverage is the ratio of contribution to the profitability. In this case, it shows a lower leverage of 1.54 since it generates lower risk to the future profitability of the hotel. Therefore it is justifiable that management has been taken an optimized and a worth decision regarding this investment. Conclusion. According to the given cases of this assignment is concerned it is clear that practical application of theories in hospitality management is really essential in order to obtain proper decisions to improve the profitability, avoid control deficiencies and smooth functioning of routine operation of the business. References. Book References Banjerjee, B. (2010), Financial policy and Management Accounting, 7 th ed. Prentice Hall Ltd, pp. 47-58. Barrows, C. W. Powers, T. (2009), Introduction to the hospitality Industry, 7 th ed. John Wiley Sons Inc., pp. 3-5. Blocher, E.J., Chen, D., Cokins, S Lin, F. (2006), Cost Management : a strategic emphasis, 3 rd ed. Tata Mc Grow Hall, pp. 238-252. Davis, C. E. Davis, E. (2012), Managerial Accounting, John Wiley Sons Inc., pp. 25-34. Drury, C. (2008), Management and Cost Accounting, 7 th ed. Cengage Learnings, pp. 32-34 Hansen, D. R., Mowen, M. M. Guan, I. (2009), Cost Management : accounting control, 6 th ed. Cengage Learnings, pp. 591-598. Hayes, D. K. Miller, A. (2011), Revenue Management for the Hospitality Industry, John Wiley Sons Inc., pp. 5-20. Horngren, C. T., Datar, S. M., Foster, G., Rajan, M. V. Ittner, C. (2009), Cost Accounting : a managerial emphasis, 13 th ed. Pearson Prentis Hall Ltd, pp. 28-29. Jagels, M. G. (2007), Hospitality Management Accounting, 9 th ed. John Wiley Sons Inc., pp. 20-21. Kinney, M. R. Raiborn, C. A. ( 2011), Cost Accounting : foundations evolutions, 9 th ed. Cengage Learnings, pp. 28-29. Kotas, R. Conlan, M. (2007), Hospitality Accounting, 5 th ed. Thomson Learning, pp. 101-115. Kotas, R. (1999), Management Accounting in Hospitality Tourism, 3 rd ed. Thomson Learning, pp. 99-180. Needles, B. E., Powers, M. Crosson, S. V. (2010), Financial and Managerial Accounting, 9 th ed. Cengage Learnings, pp. 966-969. Needles, B. E. Powers, M. (2011), Principals of Financial Accounting, 11 th ed. Cengage Learnings, pp. 399- 403. Ryan, B. (2004), Finance and Accounting for Business, Thomson One Business School, pp. 355- 391. Sharan, V. (2005), Fundamentals of Financial Management, 2 nd ed. Pearson Educations Ltd, pp. 210-218. Warren, C. S., Reeve, J. E. Duchac, J. E. (2009), Financial Management Accounting, 11 th ed. Cengage Learnings, pp. 270-271. Web References Accounting Ratio Analysis , [online], Available from: http://http://www.ratioanalysis.net [ Accessed on 25th November 2012 ]. Industry Information, [online], Available from: http://http://www.instituteofhospitality.org/info_services [ Accessed on 25th November 2012 ]. Hospitality Industry News, [online] , Available from: http://www.bha.org.uk/category/news [ Accessed on 24 th November 2012 ]. Bibliography. Brigham, E. F. Houston, J. F. (2009), Fundamentals of Financial Management, 11 th ed. Thomson One Business School, pp. 512-525. Jain, P. K. Khan, M. Y. ( 2008), Management Accounting, 4 th ed. Tata Mc Grow Hall, pp. 18-19. Maher, M. W., Stickney, C. P. Weil, R. L. (2008), Managerial Accounting : an introduction to concepts, methods and uses, 11 th ed. Cengage Learnings, pp. 138-147. OFallon, M. J. Rutherford, D. G. (2011), Hotel Management and Operations, 5 th ed. John Wiley Sons Inc., pp. 1-18. Weil, R. L. Maher, M. W. (2005), Hand Book of Cost management, 2 nd ed. John Wiley Sons Inc., pp. 539-548. Weygant, J. J., Kieeso, D. E., Kimmel, P. D. Franco, A. L. D. ( 2009), Hospitality Financial Accounting, 2 nd ed. John Wiley Sons Inc., pp. 260-280.

Case Memo as a hired consultant Essay

In this assignment, students will read and analyze a case study. In response to the case study, students will write an analysis in business memo format, addressed to the Board of Directors for the company. The memo is written by the student acting as a hired consultant for the company. The case study to be analyzed, The Case of Plant Relocation, is attached. By completing this assignment, students will meet the outcome(s): identify ethical issues that arise in domestic and global business environments using an understanding of ethical concepts and of legal and business principles; develop and evaluate alternatives to, and recommend solutions for, ethical dilemmas, taking into account ethical and legal requirements and the essential mission of the business enterprise effectively communicate to internal and external business stakeholders the complexities of ethical issues, suggesting and analyzing various solutions in order to ensure appropriate business practices and accountability Requirements of Case Memo #2: Draft memo using the prescribe format (subheadings/sections) prescribed below; All sections must be comprehensive, in-depth and fully justified; Resources from previously assigned course materials or from your own research may be used to justify and support rationale; All in-text citations and resources must be in APA style; Submit the completed case in the Assignment Folder. Memorandum Format: TO: FROM: RE: DATE: Include all the following subheadings/sections in the memo: INTRODUCTION: Brief intro to subject of memo. FACTS SUMMARY: Summarize and explain the facts that are directly significant and relevant to the ethical dilemma in this case. ETHICAL DILEMMA: Discuss either/or ethical dilemma facing the company. ETHICAL ISSUES: Discuss two (2) of the most significant ethical issues related to, and arising from, the ethical dilemma and then, explain each ethical issue and why it is an ethical/moral issue, etc. ALTERNATIVES: List, explain and justify one (1) possible alternative/solution for EACH ethical issue to address and resolve the ethical dilemma and each ethical issue discussed above. Alternatives should be feasible, logical, directly related to resolving the ethical dilemma and addressing the ethical issues in the case. Alternatives are expressed in the form of propositions or prescriptive statements suggesting action and are framed by asking the normative question, what could or should the company do? Consider consequences. Identify relevant stakeholders and the effects on them, pros and cons, etc. of each alternative. Apply ethical theories in context of your evaluations, but don’t over-do this aspect. For example, teleological or consequentialist theorists would examine who the stakeholders are, both internal and external to the company, and the positive and negative consequences for each group, etc. RECOMMENDATION: Recommend one and only one (1) alternative from the two (2) alternatives suggested above. Justify and explain your choice discussing: why you recommend this alternative; how, specifically, the recommendation will address the ethical dilemma and ethical issues; how the recommendation will likely impact relevant stakeholders; pros and cons of your recommendation; feasibility of your recommendation; how the recommendation will be implemented; Apply ethical theories, resources from previously assigned course materials, or resources from your own research to justify and support your recommendation. FUTURE IMPLICATIONS for RECOMMENDATION: Discuss potential implications arising from your recommendation for: the company other businesses within the industry other industries CONCLUSION: Summarize the case and its ethical issues, implications, etc. The Case of the Plant Relocation You are the chief executive of Electrocorp, an electronics company, which makes the onboard computer components for automobiles. In your production plants, complex hydrocarbon solvents are used to clean the chips and other parts that go into the computer components. Some of the solvents used are carcinogens and must be handled with extreme care. Until recently, all of your production plants were located in the United States. However, the cost of production has risen, causing profits to decline. A number of factors have increased production costs. First, the union representing the workers in your plant waged a successful strike resulting in increased salary and benefits. The pay and benefits package for beginning employees is around $15/hour. A second factor has been stringent safety regulations. These safety procedures, which apply inside the plant, have been expensive in both time and money. Finally, environmental regulations have made Electrocorp’s operations more costly. Electrocorp is required to put its waste through an expensive process before depositing it at a special disposal facility. Shareholders have been complaining to you about the declining fortunes of the company. Many of Electrocorp’s competitors have moved their operations to less-developed countries, where their operating costs are less than in the United States, and you have begun to consider whether to relocate a number of plants to offshore sites. Electrocorp is a major employer in each of the U.S. cities where it is located, and you know that a plant closure will cause economic dislocation in these communities. You know that the employees who will be laid off because of plant closures will have difficulty finding equivalent positions and that increased unemployment, with its attendant social costs, will result. However, you are aware of many other corporations, including your competitors, that have shut down their U.S. operations, and it is something that you are willing to consider. You have hired a consultant, Martha Smith, to investigate the sites for possible plant relocation. Ms. Smith has years of experience working with companies that have moved their operations to less-developed countries to reduce their operating costs. Based on your own research, you have asked Ms. Smith to more fully investigate the possibility of operations in Mexico, the Philippines, and South Africa. A summary of her report and recommendation for each country follows: Mexico A number of border cities in Mexico would be cost-efficient relocation sites based on labor and health and safety/environmental factors. Workers in production plants comparable to Electrocorp’s earn about $3 per day, which is the prevailing wage. There is frequent worker turnover because employees complain that they cannot live on $3/day, and they head north to work illegally in the United States. However, a ready supply of workers takes their place. Mexican health and environmental laws are also favorable to production. Exposure to toxic chemicals in the workplace is permitted at higher levels than in the United States, allowing corporations to dispense to some degree with costly procedures and equipment. Mexico’s environmental laws are less strict than those of the United States, and a solvent recovery system, used to reduce the toxicity of the waste before dumping, is not required. The only identifiable business risk is possible bad publicity. The rate of birth defects has been high in many Mexican border towns where similar plants are in operation. Citizen health groups have begun protests, accusing the companies of contamination leading to illness. Philippines Conditions in the Philippines are more favorable than those in Mexico in terms of labor and health and safety/environmental factors. The prevailing wage in the Philippines is about $1/day, and young workers (under 16) may be paid even less. As in Mexico, the workers complain that the rate of pay is not a living wage, but it is the present market rate. The health and safety and environmental regulations are equivalent to those in Mexico, but there have been no public complaints or opposition regarding birth defects, cancers, or other illnesses. South Africa Conditions in South Africa are positive in some respects, but not as favorable in economic terms as in Mexico or the Philippines. The prevailing wage in South Africa is about $10/day. Furthermore, there is a strong union movement, meaning that there may be future demands for increases in wages and benefits. The unions and the government have been working together on health and safety issues and environmental protections. Exposure to toxic chemicals in the  workplace is not permitted at as high a level as in Mexico and the Philippines. Although the equipment necessary to reduce toxic chemicals to an acceptable level is not as costly as in the United States, this expense would not be incurred in the other two countries. Furthermore, there are requirements for a solvent recovery system, which also increases operation expenses. You have to decide how you would like to proceed. Your options are to select an overseas site for relocation or to simply continue all operations within the United States.

Sar Eagle Scout Essay Samples Can Be Fun for Everyone

Sar Eagle Scout Essay Samples Can Be Fun for Everyone The Start of Sar Eagle Scout Essay Samples Working on my Eagle Project has been quite rewarding, like I got the opportunity to help promote an extremely worthwhile cause I think are going to have huge effects. State the function of the letter and be clear about what you would like from the recipient. For addresses not listed there, find the proper Web site and search for the Contact Us link usually at the surface of the page or at the exact bottom. State the function of the letter. The Meaning of Sar Eagle Scout Essay Samples A time extension to sit a board within this time period isn't automatic. The rest is going to be filled out during and following your Board of Review. I'd like to expound on such a requirement a bit today. If you exceed their requirements, you have a superb possibility of getting in. All documents alongside an advancement report has to be brought to the board of review. Keep your letter short and clear and prevent adding unnecessary specifics. You could possibly be surprised one day to observe how inspiring this statement can be, so make certain you save a copy for yourself. Please be mindful that the neighborhood application deadline dates can fluctuate, so interested applicants should reach out to their neighborhood SAR chapter for additional information. This information is designed to supplement BSA publications. The Scout should see to it that the contact information is accurate and legible, that they've informed their references they will be receiving a letter and ask they respond promptly. In order to prevent misunderstandings with dates, copy information from your own personal profile. I've had the opportunity to know him over the duration of two semesters, and in this period of time, I have begun to know him as a disciplined and hardworking youn g man. Some are extremely thoughtful. Every year, the SAR receives a mean of thirty state-level winners from around the nation to compete in the national-level contest. Ideally, it is going to be a proud reminder of a substantial accomplishment and not a sloppy or hastily assemble effort. There are lots of situations you may discover necessary that you congratulate someone. In the world today, there are several challenges that a great deal of men are attempting to cope with. When it's really hard to consider, think about any moment you did more than that which was expected of you, when you took additional responsibilities or any time you had the ability to aid someone in need. When you want assistance with essay writing it can be frustrating, but now there's a fantastic new approach to get help when it appears that there is just no way to acquire it done. The new stylized Eagle Scout badge free of text proved to be a significant change that was shown to be unpopular. To b e able to develop into an Eagle Scout, you also have to complete anEagle Scout Service Project. You might be wondering how you're able to turn into an Eagle Scout. Becoming an Eagle Scout can give you many professional and individual benefits. Choosing Good Sar Eagle Scout Essay Samples Safety-related requirements are another fantastic example. The applicant should list the whole number of words at the base of the webpage. Furthermore, you have to do well to get a strong application. There are two methods where the verification procedure can be finished. The Fundamentals of Sar Eagle Scout Essay Samples Revealed In choosing whether to permit this, unit leaders or merit badge counselors should think about the next. In real life when folks are interviewing for jobs, they present a resume to prospective employers to display their abilities and list all of the terrific things they know and have done. Likewise, a unit leaderassigned leadership project shouldn't be used in pla ce of serving in a place of responsibility. Likewise, a Scoutmaster-approved leadership project can't be used in place of serving in a place of responsibility. Keep in mind, it's YOUR obligation to earn the Eagle rank and be ready for the practice. Wallace has seen many successful service project proposals along with a number of not-so-successful ones. An organization may be a charity, union, corporation, or just a neighborhood association. So because you can see the value of the scout getting everything turned in whenever possible is critical. When it's difficult to consider, scout about any moment you did more than that which was expected of you, when you took additional eagle or whenever you explanation able to assist someone in need. At the moment it's looking like eagle scout is likely going to be the only thing which puts me over the edge on some of my college applications. Locate a quiet place and provide it some serious thought. The Fundamentals of Sar Eagle Scout Essay Samples Revealed Whether there are errors like time spans between ranks which don't meet the requirements, then the dates ought to be confirmed. A bibliogra phy is needed, but not included in the last word count. Whenever you have the last score that you're contented with, after that you can send only that score to all of your schools. Be aware that the unit leader (Scoutmaster) conference does not need to be the previous item accomplished.

Reading And Math Team Leader - 881 Words

I interviewed my boss Ann Lounsbury, who is a Title Reading and Math Team leader. She currently works at Kennedy Elementary school, located on the East side of Lawrence, Kansas. Currently there are about four hundred students at the school, it is preschool through fifth grade. Ann has been in the field of education for twenty eight years. During her time in education she was an elementary teacher, elementary school councilor, and currently a Title I Team Leader. She has been at Kennedy for the last seven years in her position. Ann’s responsibilities are being the team leader of the ten title staff, building assessment coordinator, building SIT team facilitator, and instruction coach. Ann is always busy at work, but seems to always find time to sit down with anyone if you need something. Though Ann’s title does not seem like it is in administration, she is the untitled vice principle at our school. Our school that we work in a Title I school. Seventy-eight perc ent of the students are on free and reduced lunch, though it is a low income school. During the interview Ann spoke a lot about how lucky she is to not be included in any legal issues while at Kennedy. During her time as a councilor she was not so lucky, during her time with a student years ago the student confide in her that she was being sexually abused. Because of mandatory reporting of abuse and neglect she had to call it in. She said that it was the hardest thing she has ever had to do. MostlyShow MoreRelatedEssay On School-Wide Data Analysis1068 Words   |  5 PagesMAP results for students who took Math, Reading, Science tests in grades k-9 in order to identify percentage of Students who met or exceeded their projected RIT (Rasch Unit) in 2016-2017 school year. I also analyzed the results by classroom, subject, and teacher. 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