The importance of international view of hrm - Free Essay Example

Sample details Pages: 5 Words: 1446 Downloads: 8 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? By analyzing the current business environment intensively, it is clear that it has got a tendency to get leveraged or enhanced to other countries through strategic alliance between the corporate structures in different countries. Activities in the current global business environment would not be carried out effectively without extending their brand globally by international investment. Globalization of business is done to accomplish this competitive advantage. Don’t waste time! Our writers will create an original "The importance of international view of hrm" essay for you Create order It can therefore be argued that globalization is in one way working towards enhancing the global business environment by escalating the competitiveness of the business and improving their performance and goodwill. Globalization give way to cultural diffusion and human resource is transferred between the nations for expediting the growth across borders making IHRM more important. If a domestic company is not interested in such sort of international investment, it cannot avoid or move away from the pressure exerted by the rival multinationals in the same domestic market. IHRM IN NATIONAL CONTEXT- The aspects of IHRM cover the common concepts of HRM at the national level which mainly includes the employment system and employment law which prevails in a country. The critical analysis of the strength that the trade union and the employer union posses should be taken into consideration while framing up a strategy as this matters in policy formation. In social context, culture is given importance. It is important not to lose sight of the significance of individual cultural work force that structures job and employment condition. IHRM frames up subtle business strategy based on climate and political environment in which the firm operates. Local adaptability of IHRM is carefully studied and in what standard they have to implement it is analyzed. There is a chance that employees with very different national characteristics works within a national company.In this context, integrative IHR framework is needed to coordinate between departments in the same company. 2.2 IHRM IN INTERNATIONAL CONTEXT- While promoting the business to a foreign location from the home country a company is subject to more political, economical and cultural pressures.HRM is an important aspect in this context in which the management should achieve some conflicting strategic objectives and policies which encompasses more function and blend with the cultural and social settings of a particular country. Managing a diverse workforce is necessary while the business is propelled international. The approach is focusing upon constructing specific skills and it includes drafting the practices which gets best to the employees. Heterogeneous workforce is established to perform to its full potential in an equitable work environment. To be triumphant, a comprehensive IHRM should posses a tactic that is manifestly articulated and continuously refocuses to match the International Human resource management targets and objectives to achieve the competitive advantage.ÂÂ   The entire association of employees wh o all are working in the firm having the same depiction, speculations and opinion will generate a well-built organizational structure.ÂÂ   To provide a competitive edge in international business world and to develop the international human resources to be more prolific, the companies having international branches must advocate a global view by integrating the HRM policies and propagating linkage between countries taking into consideration the cross cultural management issues, expatriate cost etc. IHRM involves constantly changing perspectives. It requires more involvement in employees personal lives and consideration should be taken while implementing strategies. The HR manager must synchronize policies and actions to handle expatriates. COMPETENCIES OF IHRM IN BUSINESS ENVIRONMENT- 3.1 BUSINESS COMPETENCIES- Knowledge of the industry and the competitor understanding is essential for a firm and IHRM deals with it. Having a global perspective and by implementation of strategic analysis, IHRM can pulse the multiple stakeholder sensitivity. Knowledge about partner orientation is also worked out by IHRM. MNCs are flourishing day by day which makes more participants involved all over the world and making economic environment more complex and competitive. 3.2 LEADERSHIP COMPETENCIES- IHRM deals with managing cultural diversity and acknowledging diversity as the distinguishing attribute of global workforce. A manager should be the creator of learning culture and value shaper. Beside leadership competency, IHRM deals with the professional and technical competency to succeed the international business. . UNIQUE CHARACTERSTICS OF IHRM IN RELEVANCE TO BUSINESS- The specialist skill is resourced from overseas market and recruitment is done in context of an internationalization strategy. IHRM department takes the responsibility for such sort of overseas recruitments. Managing diverse workforce with standardization of policies. By enriching the company with skilled workforce, making the company internationally more competitive and attractive. Analyzing the needed technical competence or skill of the new employees and formulating assessment process. Achieving talent management inventiveness at a global level. Systematic development of HR policies which includes efficient expatriate management, more innovative in-country operations, talent management and human resource business partner role. Globalised strategies for recruitment, selection and reward systems. Managing to get a balance between the internationally coordinated HR policies and the employee needs including the cultural differences. This balance is also set up t o align both business needs and senior management philosophies together. Development of wide range of competence within the employees who have to work across changing or different cultural, political and organizational boundaries. Developing coordination between the different strata of the global business to work closer by the implementation of various formal and informal methods. Managing the benefits and pay determination based on special requirements of expatriates and host country nationals. Gives insight into international finance as company has to pay its employees in different currencies which are subject to change over a period of time. Providing specialist skill for carrying out overseas business opportunity assessments. Providing deeper insight into the international geopolitical forces and their linkage to the business. More inputs to build up a sophisticated HR practice in recruitment and selection. More knowledge about the international labour le gislations as the various aspects of employment differs from country to country. Good knowledge about the local labour market. Reducing the burden of expatriate cost if the company posses skilled promotable staffs through training and support. More sophisticated than the plain HRM as it gives more light towards risk exposure. The analysis for the chances of failures and dangers are figured out. Analyzing the level of adaptability of the companys HRM policies and objectives to other countrys local political and social environment while globalization. ENCOURAGEMENT FOR THE FIRM TO STICK ON IHRM- While operating a business in the present global environment, a company is facing many disturbances that can root out from the cultural diversity or pattern of thinking by each individual human resource. Different pattern of thinking might be because the workforce comes from different countries and use different languages. Each individual posses different attitude towards labour and way of life. In some companies distribution of managerial positions are based on national or ethnic distinctions and professional qualification is not taken into consideration. Some other issues are as follows; Different opinion about the leadership style to be undertaken. The difference in the understanding of roles to be performed is another one. Lack of consistency between the firm-internal functional significance of managers position and his social status which is a firm-external function. Tendency of the employees from the same nationals or ethnic origin sticking together and neglecting ot her employees in the team which eventually results in bad communication and thus lower overall performance. As it is necessary for the company to make the diverse workforce to work together under the same roof, proper focus should be made to overcome these problems by implementation of IHRM based strategies. Some of the measures include, Homogenizing the behavior of managers and other employees from different cultural background as they are the part of same workforce. To assure an effective language for good communication. An effective working language is developed. To develop a consciousness for the firm along with its global and intercultural employees based on written guidelines and un written team born norms of behaviour. Through application of IHRM, recruitment process is standardised by which professional qualification is given consideration rather than racial or ethnic preferences. CONCLUSION- Already today, and certainly in the near future, firm must undertake an international view of HRM as managers should understand the cultural differences to successfully implement global research and development, international marketing, global production and global financial strategies. Awareness about the culture has become important not only within the global firms but also structuring and integrating activities among the employees in the national or domestic business too. Multiple level of analysis is to be taken while implementing international HRM as it takes into account political, cultural, social and economic environment. The industry, the firm, the sub unit, and its each employee is also important. By recognizing and managing these issues, firm will be a success.

Short Story - 906 Words

The lime green walls were covered in various painting, some of which were there to teach the students about love and peace. However, the students were selfish and careless and even oblivious to their surroundings. They prioritized their designated group of friends, being strict and all with who could and couldn’t sit at their lunch tables. It was the same with good treatment and respect, only the most favorable ones received that. (Maybe remove this and change it) With some voices louder than others, the cafeteria seemed to be all over the place. The lunch line was overflowing with hungry scowling faces, seething despair as they waited for their turn to be served by the old lunch ladies. (Add some senses such as smell, maybe even some†¦show more content†¦It represents peace and serenity.† I nodded in deep understanding. There was a moment of silence before Jake spoke up again. â€Å"This place clearly doesn’t have any of that.† I pouted. â€Å"Why do you say that?† He sighed and placed his hands over his face, frustration evident in his voice. â€Å"What is it?† â€Å"Lesly, I haven’t been completely honest with you.† â€Å"Can you elaborate on that?† I asked with a slight hint of humor. He rolled his eyes at me and looked down at his shaky hands. I looked at them too, wondering why he was so nervous all of a sudden. â€Å"People are bothering me lately.† â€Å"Bothering you? In what way?† He gulped. â€Å"Uh... well...† I tilted my head to the side and placed my hand on his reassuringly so that he would trust me. He sqzueezed his eyes shut, contemplating for a bit, then opened them again. We had some sort of staring contest until he uttered a few words under his breath. I only somehow managed to catch what he said perfectly. â€Å"There’s these guys...† – he tugged at the sleeves of us his hoodie anxiously– â€Å"I’m really scared.† â€Å"Is someone hurting you?† I asked. He nodded and kept his eyes on our hands. â€Å"Since when?† I asked softly. Again. The words were left hanging in the air, uncomfortable silence making its way between us. â€Å"It doesn’t even matter.† I looked at him in disbelief. â€Å"It does matter!† â€Å"WhyShow MoreRelatedshort story1018 Words   |  5 Pagesï » ¿Short Stories:  Ã‚  Characteristics †¢Short  - Can usually be read in one sitting. †¢Concise:  Ã‚  Information offered in the story is relevant to the tale being told.  Ã‚  This is unlike a novel, where the story can diverge from the main plot †¢Usually tries to leave behind a  single impression  or effect.  Ã‚  Usually, though not always built around one character, place, idea, or act. †¢Because they are concise, writers depend on the reader bringing  personal experiences  and  prior knowledge  to the story. Four MajorRead MoreThe Short Stories Ideas For Writing A Short Story Essay1097 Words   |  5 Pageswriting a short story. Many a time, writers run out of these short story ideas upon exhausting their sources of short story ideas. If you are one of these writers, who have run out of short story ideas, and the deadline you have for coming up with a short story is running out, the short story writing prompts below will surely help you. Additionally, if you are being tormented by the blank Microsoft Word document staring at you because you are not able to come up with the best short story idea, youRead MoreShort Story1804 Words   |  8 PagesShort story: Definition and History. A  short story  like any other term does not have only one definition, it has many definitions, but all of them are similar in a general idea. According to The World Book Encyclopedia (1994, Vol. 12, L-354), â€Å"the short story is a short work of fiction that usually centers around a single incident. Because of its shorter length, the characters and situations are fewer and less complicated than those of a novel.† In the Cambridge Advanced Learner’s DictionaryRead MoreShort Stories648 Words   |  3 Pageswhat the title to the short story is. The short story theme I am going conduct on is â€Å"The Secret Life of Walter Mitty’ by James Thurber (1973). In this short story the literary elements being used is plot and symbols and the theme being full of distractions and disruption. The narrator is giving a third person point of view in sharing the thoughts of the characters. Walter Mitty the daydreamer is very humorous in the different plots of his dr ifting off. In the start of the story the plot, symbols,Read MoreShort Stories1125 Words   |  5 PagesThe themes of short stories are often relevant to real life? To what extent do you agree with this view? In the short stories â€Å"Miss Brill† and â€Å"Frau Brechenmacher attends a wedding† written by Katherine Mansfield, the themes which are relevant to real life in Miss Brill are isolation and appearance versus reality. Likewise Frau Brechenmacher suffers through isolation throughout the story and also male dominance is one of the major themes that are highlighted in the story. These themes areRead MoreShort Story and People1473 Words   |  6 Pagesï » ¿Title: Story Of An Hour Author: Kate Chopin I. On The Elements / Literary Concepts The short story Story Of An Hour is all about the series of emotions that the protagonist, Mrs. Mallard showed to the readers. With the kind of plot of this short story, it actually refers to the moments that Mrs. Mallard knew that all this time, her husband was alive. For the symbol, I like the title of this short story because it actually symbolizes the time where Mrs. Mallard died with joy. And with thatRead MoreShort Story Essay1294 Words   |  6 PagesA short story concentrates on creating a single dynamic effect and is limited in character and situation. It is a language of maximum yet economical effect. Every word must do a job, sometimes several jobs. Short stories are filled with numerous language and sound devices. These language and sound devices create a stronger image of the scenario or the characters within the text, which contribute to the overall pre-designed effect.As it is shown in the metaphor lipstick bleeding gently in CinnamonRead MoreRacism in the Short Stor ies1837 Words   |  7 PagesOften we read stories that tell stories of mixing the grouping may not always be what is legal or what people consider moral at the time. The things that you can learn from someone who is not like you is amazing if people took the time to consider this before judging someone the world as we know it would be a completely different place. The notion to overlook someone because they are not the same race, gender, creed, religion seems to be the way of the world for a long time. Racism is so prevalentRead MoreThe Idol Short Story1728 Words   |  7 PagesThe short stories â€Å"The Idol† by Adolfo Bioy Casares and â€Å"Axolotl† by Julio Cortà ¡zar address the notion of obsession, and the resulting harm that can come from it. Like all addictions, obsession makes one feel overwhelmed, as a single thought comes to continuously intruding our mind, causing the individual to not be able to ignore these thoughts. In â€Å"Axolotl†, the narr ator is drawn upon the axolotls at the Jardin des Plantes aquarium and his fascination towards the axolotls becomes an obsession. InRead MoreGothic Short Story1447 Words   |  6 Pages The End. In the short story, â€Å"Emma Barrett,† the reader follows a search party group searching for a missing girl named Emma deep in a forest in Oregon. The story follows through first person narration by a group member named Holden. This story would be considered a gothic short story because of its use of setting, theme, symbolism, and literary devices used to portray the horror of a missing six-year-old girl. Plot is the literal chronological development of the story, the sequence of events

Research Proposal Essential Business Element

Question: Describe about the Research Proposal for Essential Business Element. Answer: Introduction It has been found from several research studies that customer satisfaction is an essential element for the growth of the hospitality industry (Ahmed, 2011). Brand position, superior service quality and implementation of the new advanced technology are considered as central factors to enhance the customer loyalty and satisfaction and directly impact the total revenue of this industry. In regards to formulate strong bond with the customers the customer relationship management (CRM) department must be well maintained by the respective hotel (Ali, 2014). Research topic The researcher is adopting the research topic as the application of the CRM software in the hospitality industry in order to improve the customer satisfaction. The researcher has selected the Citi Club Hotel located in Melbourne Australia. The researcher will also examine the customer management relationship in the context of the chosen hotel. Research Aim and Objective The aim is to determine various factors related to the use of the CRM software in the hospitality industry. The objectives are as follows: Analysis of the business relationship of the Citi Club Hotel with their customers based on the CRM software The imperative factors required to hold the old customers and acquire new customers with the help of CRM techniques The analysis of the essential practices adopted by the selected hotel to enhance the profit Central Research Questions These questions are prepared based on the aim and objective related to the research topic. These questions would be answered at the end of the research work based on the research analysis and obtained outcomes. What are the major factors related to the CRM software which are of significance for the hospitality industry? How the hotel can hold their customers by relying on the Customer relationship management techniques? What are the crucial practices adopted by the City Club Hotel in order to enhance the profit based on the effective usage of CRM software? Background Study and Literature Review On the basis of the literature review, it has been observed that the efficient use of advanced CRM software in the hospitality industry will improve the relationship with the customers (Yadav and Singh, 2014). Most of the hotels have commenced to use CRM software in order to standardize and accumulate the key information of the customers into specified databases that provide an ease to the management to manage various contacts, mails and information of the visited customers (Kanchan and Sharma, 2015). Research Methodology and Techniques Research methodology includes selection of the suitable methods and techniques along with the research plan layout to conduct the research work. Based on the literature review data, the researcher has decided to collect both types of data i.e. primary data and secondary data from authentic sources. To analyse the collected data, both qualitative and quantitative data analysis methods will be adopted. Descriptive research design will be taken into consideration for conducting the research work. The collected and analysed data will be expressed in mathematical model by using SPSS (Flick, 2015). Research Process The initial process step is to understand the research topic and the relevant issues and opportunities of the research statement in a detailed manner. The imperative step is to commence the literature review and study the previous research studies related to the research questions. This would provide an estimate about the current research work as well as the research structure and layout of the research project plan. The outcome of the past research work will help the concerned researcher to compare the variation in the current research outcome with the previous outcomes (Hillier, 2006). After reviewing the literature, the next step is to formulate the suitable research model. The researcher has selected the mathematical research model in the given case. Research design is the crucial element for the research study as the total resource requirement for the research is dependent on the research design, which includes project cost, time and efforts. The collection of data and information is conducted based on the selected research design. Descriptive research design will be selected by the researcher (Hair et. al., 2015). Based on the research design, the concerned researcher will collect the data from the relevant data sources. Primary and secondary data will be collected by the researcher. Qualitative and quantitative types of data analysis methods will be taken into account to analyse the collected data (Eriksson and Kovalainen, 2015). The obtained results based on the analysis will be represented in the tabular form, charts and graphs and so on. Data Collection and Analysis The researcher has decided to collect both type of data and thus, for the primary data set of questionnaire will be formed on the basis of the research objective and research questions. Additionally, semi-structural interview sessions will also be conducted for a select group of target population from the selected hotel. The sample size is selected as 55, which comprises 30 visitors of the selected hotel, 20 employees of the hotel and rest 5 managerial level employees (Eriksson and Kovalainen, 2015). The questionnaire will be conducted either in online mode or in offline mode based on the availability of the targeted sample besides conducting interviews with some of the sample subjects for more clarity. The secondary data will be collected from website, eBooks, articles, journals, newspaper and the memorandum of the company along with the companys webpage (Hair et. al, 2015). Finally, the collected data will be analysed in detailed manner. The data and information collected from the primary and secondary data source would be assembled in well-defined pattern likely in the tabular form (Flick, 2015). The quantitative data resulted from the survey- questionnaire would be examined based on the decided number of variables and used to derive the mathematical forms expression and the qualitative data set will be analysed based on the thematic analysis method. After significant interpretations, the final best possible outcomes will be expressed in tables, graphs, ratios, percentage and charts in SPSS (Hillier, 2006). Expected Research Outcomes The researcher will able to examine the various aspects related to the implementation of CRM software on the hospitality industry. This will also provide a plethora of recommendation on the part of the customers and employees for the improvement of the business relationship with customers and subsequently, the profitability of the hotel. The City Club Hotel would be able to view the various obstacles and suggestions in regard to the existing practice in the Hotel along with the quality of the service provided by them to the customers. Some essential factors related to the customers preference and satisfaction would be highlighted in the current research outcomes, which will be evaluated in the future research work. References Ahmed, A. (2011), Customer Relationship and Satisfaction, International Journal of Customer Relationship Marketing and Management, 2(1),19-35. Ali, M. (2014),CRM activities in the growth and expansion of hotel industry, SaarbruÃÅ'ˆcken: LAP LAMBERT Academic Publishing. Eriksson, P. and Kovalainen, A. (2015), Quantitative methods in business research, London: Sage Publications Flick, U, (2015), Introducing research methodology: A beginner's guide to doing a research project, New York: Sage Publications Hair, J. F., Wolfinbarger, M., Money, A. H., Samouel, P., Page, M. J. (2015),Essentials of business research methods, New York: Routledge. Hillier, F. (2006), Introduction to Operations Research, New York: McGraw Hill Publications Kanchan, and Sharma, A. (2015), Application of Customer Relationship Management (CRM) practices in Hotel Industries: A Review.International Journal of BRIC Business Research, 4(3),1-6. Yadav, B. and Singh, A. (2014), Analyzing the Influence of Customer Relationship Management on Firm Performance:.International Journal of Customer Relationship Marketing and Management, 5(3), 69-97

Business in China free essay sample

What challenges do foreign firms face when they seek to transfer their home management style to China? 2. Discuss the reform of Chinese state-owned enterprises and related government policy changes. Evaluate the impact within the state-owned businesses and the chinese society. Chinese management Doing business in China requires a throughout understanding of their management philosophy and practices. Their management style is different in many respects from mainstream Western Management and is characterized by a combination of a paternalistic approach and an intuitive, entrepreneurial, and fast-decision making style. Challenges for foreign firms in China MNEs generally start off with clear advantages in that they have better industry specific technology, know-how and innovation capabilities and also they have higher level of managerial competence in such functions. There are many advantages of operating in China: * Cheap factors of production, especially labour * Benefit from tax breaks * Operating in a low cost base for export to 3d countries * Secure access to market. China has reduced many of import quotas but remain high in some sectors Challenges: Everything is possible, but nothing is easy’. Disputes with Joint Ventures partners due to differences in management style. Family is hierarchical and extended. Family power distance is evident with most major business organizations. Chinese families retain administrative control and family members hold the top management positions. Western worker will need to balance his or her interdependence within the highly collectivist Chinese business and family structure. * Unfamiliar local HR practices * Insufficient infrastructure (shortages of power and electricity) Many MNEs are equipped with sophisticated marketing and brand building skills. But in order to deploy their skills, MNEs need specialised inputs like detailed market research that is often poorly supplied in China. If they perform these function skills in-house, they often lack the required skills. * Difficulties in retaining skilled people * Tortuous supply chains Many MNEs rely on strong distribution channels to deliver their products reliably and also educate customers about more subtle advantages they offer. But efficient logistics are new concepts in China. MNEs cannot deploy their competitive advantage of supply chain management. They are confronted by a lack of component local suppliers. draw value chain * Communication barriers : culture and guanxi Chinese management tend to rely on personalized relationship. These are divided in two groups: trust based relations( in- group) and strangers relations( out-group). Trust based relations are built on intimate and interpersonal trust. These groups are smaller and more family based. Strangers relations mean that it is very difficult for Chinese to build personalized relationships with people they by fate have to work with. Also, Chinese are used to be masters in their own house and will not accept if the expatriates will treat them as ‘employees=machines’. Moreover, in comparison to west, which tends to have more individualistic relationships, China relies on collectivism, where everyone takes responsibility for fellow members of the group. Guanxi The foreign firms may face difficulties due to different perception of relationships. For firms operating in Chinese society, understanding the role of guanxi is crucial and how it affects all the major dimensions of firms performance. Knowing and maintaining guanxi networks are essential for corporate success. The concept therefore contains implicit mutual obligation and governs Chinese social and business relationships. gt; Russian BLAT is the equivalent. Guanxi bases are divided into blood bases, which is family members and relatives and social bases, which arise from social interactions. 1)Guanxi is transferable. It means that one group maintaining guanxi can recommend one of the members to a friend, and then they also become in a relationship of guanxi. For example, Avon was unsuccessful until the time when the head of Hong Kong Bank of East Asia recommended it to Chinese government. )Guanxi is intangible and people who share it are committed to each other. Disregarding this commitment can lead to damage of one’s reputation. 3)Guanxi is social capital. It is an investment in a relationship and should be clearly distinguished from the Western conception of networking that is virtually associated with commercial-based relations. Many Western businesses are often in danger of overemphasizing the gift-giving of Guanxi relationship, thereby coming closely to bribery. Guanxi is not similar to a fee for service, it is given to strengthen personal relationship. Organisational guanxi: Companies suffer when their Chinese staff leave because they take their valuable guanxi with them. To prevent such loss, one Chinese manager designed to transform individual guanxi into organizational guanxi. This was achieved through organizing regular meetings and social activities for the staff of two partner companies. Also, it is important to audit company’s guanxi with its outside stakeholders, such as customers, suppliers, and government bodies. Such an audit will allow to identify strength and weaknesses of guanxi network. * Tough from local Chinese players competition Local competitors have a better understanding of what will work in the local environment. They are leaner, more flexible and have lower costs. * Salary differences between western and Chinese players * Uncertain political environment and unpredictable policy changes * Lack of reliable statistics and market information Learning market in China is important as sometimes foreign companies fail to understand what Chinese consumer wants. They should do a careful research before entering the market. Example can be the low ales of Apple iPone in China. The reasons for failure were the no wi-fi due to government regulations and also gray market. The Copycat of Iphone was sold on twice lower price than the original. However, there have been successful cases as well. Wal-Mart learned how to do business Chinese way. The initial problems were that consumers wanted fresh harvested products and no ‘packaged’ products. Then Wal-Mart reacted and began to display fresh meat uncovered, installed fish tanks and began selling live turtles for soup. Conclusion: Foreign firms do face various obstacles in entering the Chinese market, however they can be overcome if the right levels of research is carried out and they come to terms with the differences in business structure and social environment.

Code of Ethics Essay Example

Code of Ethics Essay Code of Ethics for IT Professionals For purposes of this Code, the following terms are defined as follows: Information Technology the preparation, collection, creation, transport, retrieval, storage, access, presentation and transformation of electronic information in all its forms including but not limited to, voice, graphics, text, video, data and image. Information Technology Professional ne who develops or provides information technology products and/or services to the public. PREAMBLE: I will use my special knowledge and skills for the benefit of the public. I will serve employers and clients with integrity, subject to an overriding responsibility to the public interest, and I will strive to enhance the competence and prestige of the professional. By these, I mean: I will promote public knowledge, understanding and appreciation of information technology; I will consider the general welfare and public good in the performance of my work; I will advertise goods or professional services in a clear and truthful manner; I will comply and strictly abide by the intellectual property laws, patent laws and other related laws in respect of information technology; I will accept full responsibility for the work undertaken and will utilize my skills with competence and professionalism; I will make truthful statements on my areas of competence as well as the capabilities and qualities of my products and services; I will not disclose or use any confidential information obtained in the course of professional duties without the consent of the parties concerned, except when required by law; I will try to attain the highest quality in both the products and services I offer; I will not knowingly participate in the development of Information Techno logy Systems that will promote the commission of fraud and other unlawful acts; I will uphold and improve the IT professional standards through continuing professional development in order to enhance the IT profession. We will write a custom essay sample on Code of Ethics specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Code of Ethics specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Code of Ethics specifically for you FOR ONLY $16.38 $13.9/page Hire Writer

Eskimo Pie Case Essays

Eskimo Pie Case Essays Eskimo Pie Case Paper Eskimo Pie Case Paper Statement of Purpose: The purpose of this analysis is to determine if Reynolds Metals (â€Å"Reynolds†) should accept Nestlà ©Ã¢â‚¬â„¢s offer of $61 million for its holdings of Eskimo Pie. The crux of the issue is whether or not the projected income from a proposed Initial Public Offering (â€Å"IPO†) by Wheat First Securities (â€Å"Wheat First†) is reasonable and will actually result in proceeds between $61 and $68 million to Reynolds, the Reynolds family and the Reynolds foundation, as projected. To get at this question, this paper will seek to value Eskimo Pie as a stand-alone company, if the IPO option is selected. Discount Rate: The first task is to estimate the discount rate, or the rate that investors will require on this type of investment. In 1990, the last year for which we have data, Eskimo Pie had $744,000 in long-term debt obligations and $19,496,000 in Stockholders’ equity. This amounts to 3.67588% of their financing coming from debt and 96.32411% of their financing coming from equity. Exhibit 9 reflects the corporate borrowing rates as of 1991. Being that Eskimo Pie is a small operation with fairly thin margins, they would not qualify for an A or AA bond rating. Thus, I am assuming that any bonds they have issued have a BB rating. The long-term bond yield for BB bonds is 11.44%. The case does not provide any information regarding the required return on equity. However, by imputing the data from Exhibit 8c into a spreadsheet we can calculate Beta for comparable companies. I calculate the Beta for Ben Jerry’s to be 1.5994. I calculate Beta for Dreyer’s to be 1.2524. This averages out to 1.4259, which is the Beta I estimate for Eskimo Pie. Using the risk free rate of 4.56% from Exhibit 9, and an expected market return of 13.99% , I calculate the expected return on equity to be 17.9968%. Thus, calculating the Weighted Average Cost of Capital: (.0367588)(11.44%) + (.9632411)(17.9968%) = 17.7558%. The applicable discount rate is 17.7558%. Growth Rate: There are several factors to consider in estimating Eskimo Pie’s growth rate. As measured by net sales, the growth rate fluctuated greatly between 1987 and 1991. According to Exhibit 1, half of the growth experienced in 1991 is attributable to increased prices and the assumption of advertising responsibility. I view this large increase as a one-time event. As competitors adjust, whatever advantage Eskimo Pie gained from these methods will dissipate. One advantage that Eskimo Pie has is that they hold patents for various sugar and fat substitutes. They largely attribute their 3% increase in unit market share over a four year period to their patent on a sugar free coating. They also have a patent in the works for a fat substitute. However, any growth they see from the fat substitute will be limited because those sales will cut into their sales of the sugar-free product. In Exhibit 6, Goldman Sachs makes very conservative growth estimates. From 1991 to 1992 they project growth, in terms of net sales, of 4.5415%, and from 1992 to 1993 they project 1.2376% growth. These projections are tempered by the fact that they underestimated Eskimo Pie’s net sales and net income in 1991. Finally, according to Exhibit 4, the market for frozen novelties has leveled off, so most of Eskimo Pie’s growth will have to occur by grabbing market share. Eskimo Pie’s growth in the past is tied, at least to some degree, to their presence in grocery stores. Between 1987 and 1991 the presence of at least one Eskimo product in U.S. Grocery Stores grew from 76.3% to 97.9%. The fact that they are in nearly 98% of all stores in 1991 suggests that they have very little room for growth in this area, especially when you consider that the percentage change of their presence in grocery stores is related with the market share of Eskimo products, and is also related to their net sales. In considering all of these factors, and recognizing this is a low figure, I estimate that their growth rate in perpetuity, beginning in 1994, will be 5% per year. Valuation: Valuing the company begins by estimating sales, net income and the free cash flow. As previously mentioned, net sales will be estimated beginning with the $61 million in net sales projected for 1991, then relying on Goldman Sach’s projected growth rate for 1992 and 1993, and using a 5% growth rate from that point forward. Net income is estimated for 1992 and 1993 using Goldman Sach’s estimate of the margin. Free cash flow is then estimated from the net income by subtracting capital expenditures, which are estimated to be less than $1 million for 1992. Additionally, there are several additional expenses for 1991 that I believe are ignored by Goldman Sach’s estimate. The first is the potential clean-up costs from the spill in the New Jersey plant, estimated at $300,000. However, weighing other possible outcomes, I estimate the cost to be $374,000, occurring by the end of 1991. Further, even in the pre-Sarbanes-Oxley era, the cost of an IPO, and the subsequent filing documents required by the SEC, is significant. I estimate the cost of the IPO to be $1 million in 1992, and $500,000 each year after for the filing requirements (or the cost of being public). These amounts are subtracted from the free cash flows in the appropriate years. Thus, I estimate the value of Eskimo Pie, as a stand-alone company, to be $31,770,219. This is significantly lower than the $61,412,000 or $68,044,000 that Wheat First predicts the IPO will generate. Further Analysis: This of course begs the question of why Nestlà © would be willing to pay $61 million for Eskimo Pie. The most obvious answer is that they estimate the growth rate to be much higher than I do. However, such high levels of growth seem unlikely, especially when you consider that capital expenditures are minimal. However, I believe that the answer for Nestlà ©Ã¢â‚¬â„¢s high bid lies elsewhere, and that their bid may even be too low. The first factor is the $61 million in sales that Eskimo Pie experienced in 1991. Using Goldman Sach’s own net sales multiplier of 1.2 means the sales price should be around $70-75 million. There are several other reasons why Eskimo Pie would have more value to a company such as Nestlà © than as a standalone company. The first is that Nestlà © could slash operating expenses, such as the Richmond management, advertising expenses and selling expenses, which would increase the net profits and the free cash flows. They would also be able to reduce personnel and possibly consolidate the manufacturing components of each company. Most importantly, however, is that the acquiring company would also assume ownership of Eskimo Pie’s patents on the sugar and fat substitutes. The sugar substitute was largely responsible for Eskimo Pie’s increased market share and is thus a very valuable asset. Nestlà © would be able to use those patents on all of their products and potentially see their market share grow as Eskimo Pie’s did. These patents, along with Eskimo Pie’s name, may be the most valuable parts of Eskimo Pie. Two strong mitigating factors remain that would keep Nestlà © from increasing their bid. The first is the potential litigation arising from the spill in the New Jersey plant. If Nestlà © acquires the company, then they are acquiring the potential lawsuit as well, exposing their entire company. While the likelihood of litigation is small, the potential still exists. The second mitigating factor is Eskimo Pie’s licensing approach, yet Nestlà © would have the opportunity to end these agreements once the current agreements expire. Conclusion: Eskimo Pie should reject Wheat First’s IPO proposal. Their estimates of sales at $14 and $16 per share, generating $61 million and $68 million respectively, are too generous. The most they should expect to raise is approximately $32 million, the total value of the company. Even if they cannot get Nestlà © to increase their offer in light of the 1991 sales figures, Eskimo Pie should accept Nestlà ©Ã¢â‚¬â„¢s offer.

Comparative Study of State and Local Governments Research Paper

Comparative Study of State and Local Governments - Research Paper Example Government of California The Californian government differs from other governments in a number of ways - from the laws to how it offers its services to its residents. It possesses one of the longest constitutions in the history of the world, caused by construed individual provisional rights that have been made broader than any other bill of rights. These rights help protect individual against oppression and illegal practices in relation to securing their life and rights of living. The law extrapolates on how every citizen is dealt with in any case of any happening or occurrence. The difference is also triggered by execution of three branches of governance which are: the executive, the legislative and the judicial branch. The California government differs from other states and governments in that it has an institution, even though not stipulated in the constitution but plays a major role in implementing laws. The institution comprises of the governor, assembly speaker, assembly minori ty leader, president of the senate and senate minority leader. The big five meet in private closed meetings to discuss pending bills in the formal legislature since it is an informal institution. California’s direct democracy system is approached with high aggressiveness contrary to all other states. It gives the population free will of giving their unprecedented opinions collectively in choosing good governance rather than electing representatives. Its gives the people pure and preferred choice in passing executive motions, conducting trials, making laws, election of officials and dismissing errant officials. The Californian system of direct democracy has positive effects on the government, in that it protects grievances of the people majorly done by them. This type of government gives audience to all its residents and deals with each of their problems. Contrary, a representative government will only shed light to problems that affect particular areas especially when they ac crue vested interest. Such a government ensures that services are consumer friendly so as to reduce uproars from the population. When such a population decides to take on the streets for a demonstration, the whole economy is left at a stand still. The governor in California State has accrued extensive powers in running the state. He or she heads the executive branch, which includes lieutenant governor, attorney general, state secretary, state treasure and state controller. The governor has powers and responsibilities to sign laws passed by legislature, appoint judges, command state militia, propose state budget and grant pardons among others. These aspects grant the governor more powers than the legislature since he approves all the decisions and without his consent, they are doomed for failure. Provision of funds to state and local governments have given a boost to direct democracy in that the channels of communications are dropped to reach people at grass root levels. This idea at tributes many people in bringing out their opinions on possible castigations they are experiencing and end up with a rapport with the government. Similarly, local governments and states reduce the distance covered by people when they require services from the government. Funs provided are used to construct offices and support