Analysis of Profitability Ratios

Analysis of Profitability Ratios If a company shows good profitability then the shareholders can expect good profit distribution on their investment. For this purpose we should also examine the dividend payment history of the company in order to make a reliable estimate of profit distribution. So far as the Spectrum Manufacturing Company [SMC] is concerned, its profitability is decreasing. The reasons of the decrease in profitability are: Decrease in sales Increase in interest expenses Increase in the amount of depreciation [may not be a concern, since it is non cash expense. Further increase the depreciation will ultimately decrease tax liability] The disadvantages of using above ratios are that these ratios may not provide an accurate estimate of the company profitability if used individually. The ratios calculated above should be used with other techniques in order to get more accurate and reliable estimate of the company financial position. The above ratios also ignore the impact of items which may result in low profitability but may increase share holders wealth maximization. For example, depreciation charged and interest expenses paid will ultimately decrease the tax liability of the company resulting in more profits available for distribution. The are many methods to calculate the leveraging of the company some considers long term debt while others considers both long term and short term debt of the company so this ratio should be calculated as per the requirements. The ratio of ROCE ignores the impact of risk taken by the company. We may use RROCE [Risk Adjusted Return on Capital Employed] in order to get a more reliable estimate. The following additional techniques and tools can be used for the analysis of SMC: Cash Flow Analysis [Liquidity Ratios] Peer Group Comparison Inventory turn over ratio Average collection period Price earning ratio Taxation structure of the countries where the company wants to enter Exchange rate risk. The Board of Directors are the agent of shareholders (Principal). It is the responsibility of the BOD to act in the best interest of shareholders. But there are chances that the BOD may not act in the interest of shareholders due to some potential conflict of interest. The conflict of interest may arise due to difference in goals and objectives of BOD and shareholders. However different techniques can be used to reduce the chances of conflict of interest such as profit participation, performance based remuneration etc. The dividend policy is related with the profit distribution of the company. The investor would like to invest in a company which has a good dividend policy. The dividend policy is normally affected by the stage of business and future expansion plans. The dividend policy is important due to the following reasons: The dividend policy plays an important role in attracting the investors High dividends may result in higher share price of the company [market capitalization] Distribution of dividend in the form of cash shows good liquidity position of the company. The debt financing is normally encouraged due to the fact that the interest expenses are deductable for taxation purposes while the dividend paid to share holders is not considered as an expense for taxation purposes. Three main sources of financing: Debt Financing from financial institutions Subscription money from shareholders Subordinated debt form sponsors Government Grants

Utilizing Leadership and Communication in Management

Communication and effective leadership are widely considered to be the major challenges facing managers in the 20th century in their respective workplace. It is crucial in any management scenario for an effective leader to be a fluent, competent and expert communicator. In essence, this can be applied to all leadership scenarios whether it is organisational, recreational or even military based. If not utilised properly, the situation of a manager who is lacking key communication qualities can easily lead to the downfall of the organisation.It therefore gives credence to the idea that a successful organisation is one who utilises the methods of upright leadership and effective communication in their internal and external management. The process of communication is defined as â€Å"an interpersonal process of sending and receiving symbols with messages attached to them† (Schermerhorn 2011, p. 457). This in a practical sense is the ability to convey a person’s verbal or no n-verbal messages to achieve an understanding of what they require (Brown & Cliquet 2008).This can be in the form of verbal conversation stating tasks that a person is required to do or in the non-verbal form which is usually in the system of body language to emphasise certain verbal directions. In terms of a business organisation, the manager must be effective in their communication otherwise their directions will be lost to either the employee, stakeholders or even the customers (Schermerhorn, 2011). This would lead to the fact that manager’s passing of information is only successful when they are actively telling the employee in regards to a task that they have to undertake.This can be in the form of active listening sessions or improving the means of communication. This can be through improving communication techniques in technology or closing barriers which are hindering effective communication (Schermerhorn 2011 p. 460 – 467). This theory must be applied to many businesses and organisations around the world because without the necessary effective communication, information cannot be passed on therefore leading to a stagnation of possibly crucial material (Bratton et. l, 2007). Senior Professor at the University of Auckland Peter Boxall suggests that in regards to communication with human resources across transnational corporations that: â€Å"[Communication] is the attempt to build ‘constructive’ relationships with trade unions†¦broad ranging discussion are held with extensive information provided to the unions on a whole range of discussions. Emphasis is also placed on techniques designed to enhance individual employee commitment to the firm† (Boxall, 1995 p. 6-57). This quote suggests that to maintain a successful relationship between transnational trade unions, you must have apt communication from the executives to the workers otherwise the flow of material will become stagnant and the information will not be pas sed (Boxall, 1995). An example poor communication can be attributed to Michelle Smeby’s case study of a fortune 100 company named Holistic Change Ltd.They had neglected to tell the stakeholders of potential changes in the information technology section of the workplace which would vastly improve the effectiveness and efficiency of the workplace (Schermerhorn 2011), (Smeby 2011). Holistic Change Ltd. could have handled the situation better if they had planned the change; including informing the stakeholders so they could make a formative assessment on whether it would be beneficial to the company (Smeby 2011).It proved to be a hindrance to the company which led to a reduction to their share price. This was due to the shareholders not possessing a full access of all the information that the company was retaining leading to an uncertainty of future projections and profits (Smeby 2011). Many businesses fail to implement effective communication techniques due to the fact that the training initiatives and education could become very expensive and is usually regarded an unimportant part of the daily management of a company (Bratton, 2007).This does not just apply from the managers to the employees of an organisation, but it also applies with the organisations communication skills with the customer (Peterson, 2006 p. 36). It is stating that it is necessary in an organisation without proper communication with the customers, it will unable to either sell its goods or services. The ‘Business Source Complete’ journal article reflections are identical to the statements regarding the importance of effective communication with customer by suggesting that in the approach of seeking ew customers, the organisation has to undertake four key tactics. These include media relations, speaking opportunities, media partnerships and special events (Weber & Chadwick, 2004). Because the organisation is actively seeking out ways to express their company through methods of communication, it will most likely succeed in the objective of gaining new customers to improve revenue (Business Source Complete, 2004). This therefore gives credence to the fact that effective communication is necessary in the success of an organisation.In response to effective communication with to employees, it is crucial to apply with the effective and efficient communication skills which are stated by Schermerhorn as â€Å"the intended meaning of the source and the perceived meaning of the receiver are identical [which] occurs at minimum cost† (Schermerhorn 2011, p. 458). This therefore leads on to suggest that effective communication is derived from profound leadership due to the fact that if someone in a position of power can effectively delegate tasks they must be able to motivate, leading and be able to reduce the barriers of effective communication.Leadership is defined by Schermerhorn (2011) as the process of arousing enthusiasm and directing efforts towards o rganisational goals. Therefore, without proper communication skills, a manager will not be able to convey their instructions and therefore, makes the development of a leader stagnant. Claire Oldfield states her journal article that â€Å"[Leadership] unites people, develops opportunities and, crucially in these difficult times, ensures survival† (Oldfield C 2008, p. 69).This suggests that it is not only a way of future monetary successes, but a way to ensure that the organisation will survive during turbulent financial times (Oldfield 2008). Chadwick (2006) in ‘Leadership in Business Development’ states that â€Å"Successful business development leaders have a passion for their mission, and it generally shows in almost everything they do. By their positive attitude, intellectual quickness and exemplary work ethic, they inspire and lead the folks around them† (Chadwick 2006, p. 1) This shows that a leader must show some inspiration to the team in order for them to perform the tasks well.If the leader is able to communicate their vision in such a way that the employee’s will commit their resources into achieving an idealic solution for the manager, this will result in effective and efficient leadership (Schermerhorn 2011, p. 340). It also suggests that a leader must have the mental capacity to be able to inspire through motivation due to the fact that they are striving for the same result as the employee. Gage (2008) states in his journal article that the necessary leadership is one which strives on the use of reward and legitimate power (Gage 2008, p. ) (Schermerhorn 2011, p. 341). Schermerhorn (2011) defines reward power as â€Å"the capacity to offer something of value as a way of influencing them†. This is a practical sense is the ability to make an employee work to the managers standards by the use of offering an incentive (Schermerhorn 2011). This can be in the form of offering them an award or a salary bonus. Scher merhorn (2011) defines the use of legitimate power as the â€Å"capacity to influence other people by virtue of formal authority, or rights of office† (Schermerhorn 2011, p. 341).If the manager was able to exert his power by utilising these methods, there is no doubt that the workers of the organisation will work more effectively and efficiently because of the incentive which is offered for their services. There is evidence to suggest that leadership is helpful in any management scenario, but Peter Boxall states that â€Å"It takes strong executive leadership to bring about positive patterns of employment relations. In the end, it is the senior leadership of companies that should be responsible for the quality of employment relations† (Boxall 1995 p. 303).This quote by management professor Peter Boxall gives credence to the fact that it is necessary that without proper leadership, there will be no guidance for the rest of the team concluding to an inability to perform the tasks which are needed (Boxall 1995, p. 303). This will only hinder the process of management and can possibly lead to the termination of the organisation (Schermerhorn, 2011). In conclusion, communication and effective leadership considered to be the major challenges facing managers in the 20thcentury. It is crucial in any management scenario for an effective leader to be a fluent, competent and expert communicator.In essence, this can be applied to all leadership scenarios, but if not utilised properly can easily lead to the downfall of the organisation. A manager needs to also be a motivator through their leadership and communication skills because this is proven to the most effective way of getting the most efficient results from the employees. It therefore gives credence to the idea that a successful organisation is one who utilises the ideas of leadership and communication in their internal and external management effectively. Reference ListBoxall, P 1997, ‘The Chall enge of Human Resource Management’, Longman Paul Ltd. , Auckland, NZ Bratton, J & Gold, J 2007, ‘Human Resource Management Theory and Practice’, Palgrave Macmillanm New York, NY Brown, R & Cliquet F 2008, ‘Communication of Business Process Models’, BP Trends, Vol. 10, No. 9, accessed 3 October 2011, Business Source Complete Chadwick, S 2006, ‘Leadership in Business Development’, Printing Impressions, Vol. 49, No. 5, p. 114-115, accessed 3 October 2011, Business Source Complete Oldfield, C 2008, ‘Leadership’, Director. co. uk, Vol. 62, No. 4, p. 9, accessed 3 October 2011, Business Source Complete Peterson, K 2004, ‘Effective Communication promotes Business’, Kitchen and Bath Design News, Vol. 16, No. 12, accessed 3 October, Business Source Complete Ritchie, M 2008, ‘Leadership for Business’, Manitoba Business, Vol. 30, No. 1, p. 5, accessed 3 October 2011, Business Source Complete Schermerhorn et. a l 2011, ‘Management’, John Wiley & Sons, Milton, QLD Weber & Chadwick Hong Kong 2004, ‘Product & Promotion – Marketing Communications: Business’, Media, Vol. 62, No. 21, accessed 3 October, Business Source Complete

Education in Ancient Athens

No civilization can exist without education. All that didn’t perished quickly without a significant mark. Ancient Athens had an excellent system of education and therefore was able to prevail and live for a long time. Education was offered to boys in Athens and schooling started at the age of seven. All Athenians valued education. Even though schools have tuition fees, many poor people paid the money (McAllister). Students from ages seven to fourteen learned three main subjects. They learned grammar, which consisted of reading, writing and math.Music was an important subject to the Athenians and so was gymnastics (Dunkle). Reading and writing that was taught was useful for trade and business (Dunkle). Athenians learned gymnastics to promote health and strength (Dunkle). Music built up characteristics, and entertained friends, and was used to purify their souls (McAllister). The sensible education system of Athens was beneficial to their civilization. Too all students in Greece , the basic reading, writing and math were taught. Being taught reading and writing was helpful in trade.Traders all over the world commonly spoke Greek. It second language for educated people outside of Greece (Mazour). Learning Greek, would help communicate with traders in the world that don’t have Greek as their first language. After elementary school, sophists usually taught the students (Mazour). From them they learned about poetry, the government, ethics, astronomy and rhetoric (Mazour). Rhetoric was the study was public speaking and debating. Rhetoric was helpful to the democratic system that was Athens’ government.This was beneficial to the government because people could speak well in front of people and creating good arguments. Reading and writing isn’t all they valued. They also thought that music was important. The ancient philosopher, Aristole said that music served as education, but also as a pastime and amusement (Dunkle). In music class, they lea rned to sing, and play an instrument. By doing so, they were able to entertain guests at a party (Mazour). Music wasn’t always for these shows, but they supported a calm mind in a healthy body (Mazour). The type of music that a erson listened too also built the characteristics of that person, or so Plato says, â€Å"Teach them the poems of other morally good poets, setting them to the music of the kithara and compel rhythms and harmonies to dwell in the souls of the boys to make them more civilized, more orderly and more harmonious so that they will be good in speech and action† (Dunkle). Plato’s student, Aristotle also agreed to this, â€Å"Therefore it is evident that music is able to produce a certain effect on the character of the soul, and if it is able to do this, it is plain that the young must be introduced to and educated in [music]† (Dunkle).Aristotle stressed that the students must love music, and â€Å"mere appreciation would not be sufficien t† (Dunkle). Training in singing and the playing of an instrument was important. Students that learned went on competitions called Mouseia (Dunkle). This built their confidence and their morale. The Athenians had a special curriculum of gymnastics. In our time, it would be called physical education. Students had athletic training because it promoted good health, strength, courage, and it prepared them for warfare (Dunkle).Unlike Sparta that trained their children to death (Crystal), Athens were not concerned with specialization for a specific job, but to have a wide range of education (McAllister). Good health would lead to longer lifetimes and so Athen’s would be healthier overall. Strength and courage would be useful in battle or it public speeches. This means that Athenians wouldn’t be nervous and would look intimidating because of their good physique. Many kids studied from an early age. There were intelligent students that benefited Athens. The system of edu cation the Athenians had been well made and because of that Athens was able to thrive.It is similar to how our system works today, with College and able to be taught/ or tutored by teachers who are hired. How we have music classes like orchestra and choir. Also like how we have dance classes and physical education classes at school. It is a good system that our education system is based off of. Reading and writing taught the students to communicate and so they could communicate with traders. Music brought peace to the soul, but also served as entertainment. Physical education brought good health and children were able to prepare for warfare. These features of Athenian education made the Athenians stronger and more powerful.

The Impact Of Mass Media On Body Image - 1255 Words

Anyone who has ever been online has seen food, transformation, or other health related images and videos on social media, online magazines/blogs, and mass media in general. Mass media has caused an enormous amount of controversy within the last few years concerning body image and what is politically correct. However, mass media’s impact on health can be beneficial if it is used the correct way. The social media aspect of mass media has become something that is involved in most people’s everyday lives; and it’s not going away anytime soon. Mass media posts need to be controlled so companies and public figures do not promote unhealthy, unrealistic body images; and instead endorse a healthy standard to benefit readers both physically and†¦show more content†¦The Journal of Marketing Analytics conducted a study on the reliance of social media compared to traditional media. Cheong reveals, â€Å"For instance, Facebook has become the most popular Website in t he world and the second most popular in the United States, following Google.† (Cheong, Hyukjun) Also, Google is how people search for any site. So, it makes absolute sense that they are number one. That would in comparison, make Facebook the most popular non-search engine site. According to an online survey conducted by The Turkish Online Journal of Educational Technology, people use social media for many reasons. This includes maintaining relationships/forming new ones and for academic purposes. (S Gà ¼zin, MAZMAN) MAZMAN states, â€Å"Research has shown that many people connect to social network sites at least once per day.† (S Gà ¼zin, MAZMAN) This means people are constantly vulnerable to what is on social media. While social media may be deeply incorporated in everyone’s lives, it does have negative health effects. Body image ideals develop when people are children. NASDAQ released an article stating that the idea of body image can develop as early as five . Common sense media’s CEO, Jim Steyer, argued, â€Å"Kids and teens today are growing up in a world of 24/7 access and exposure to idealized, stereotypical, and often age inappropriate images of how they’re supposed to look.† (â€Å"New Report by Common Sense Media Reveals Kids Body ImageShow MoreRelatedThe Influences Of Mass Media On Society864 Words   |  4 PagesThe Influences of Mass Media on Society For the greater majority of the American society, the presence of mass media is a normal part of everyday lives. With the purpose of mass media being to educate, entertain and inform, the excessive violence, self imaging, and lack of full detail on world events, is having negative influences and unhealthy impacts on society. As early as the 1920s, a form of the media has been present in the American society. 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