Flexible Learning Essay Example for Free

Flexible Learning Essay Education is a broadly debated topic, now there is a new concept emerging, ’flexible learning’. This essay will discuss what is understood by this term and how it could affect the way of the future in education. Furthermore it will discuss how flexible learning has engaged technology and how it has made education more accessible and equitable. Next it will demonstrate how individual students have benefited through the use of technology with flexible learning, and how students are able to be the central focus of their own education. Technology brings with it many advantages for the future of education, however not without some setbacks, this essay will also discuss these. This essay will argue that because of the increasing accessibility and improvements in technology, flexible learning should be the way of the future in education. Flexible learning is quickly becoming the way of the future for education, as it engages and implements the use of sophisticated technology. According to George and Luke (cited in Andrews Ferman 2001) flexible learning is a multi-directional approach to learning using different methods of delivery. On the other hand, Nunan (cited in Andrews Ferman 2001, p. 2) considers that ‘flexible delivery is often taken to mean the same thing as increasing flexibility in learning’. Summarising Harmes (2010) explains flexible learning engages technology, allowing the use of the internet, e-mail, and other digital interactive technology. It also allows the student to freely access online lectures and study material and more importantly it enables teachers to position the student as the central focus of the learning experience. This can be seen at universities including the relatively new University of Queensland campus at Ipswich who are using technology to promote flexible learning. It was in fact the purpose built with this in mind; and included computer rooms, a self-directed learning centre and even wireless laptops (AndrewsFerman 2001). Another example of flexible learning is discussed by Huijser, Bedford and Bull (2008) who describe the Tertiary Preparation Program (TPP); this is a course which is accessed online and on-campus. TPP students can engage in online lectures, Wimba classrooms and forums, study material can also be submitted online and feedback returned to student, again online. Using technology students have engaged in flexible learning all over Australia, including international students. Furthermore TPP is currently funded by the government making it free; this allows students to prepare for higher study prior to investment. The outcome of this should be a higher intake of fee paying students, which in turn should lead to increased government funding for universities. Flexible learning through technology has made education more accessible and therefore equitable. Harmes (2010) discusses how the internet has increased the number of students to able to study degrees through online study material and lectures. As a result of technological advances the world has become a â€Å"global village â€Å"and students can participate in a global classroom. Worldwide opportunities using technology and flexible learning should be funded locally (Zhao 2009). Ultimately this will enable there to be proximity through distance, and will allow students to study anytime and anywhere, thus making education more equitable explains Harmes (2010). There are students from as far away as remote Western Australia studying through the University of Southern Queensland (USQ). They are able to access all the lectures and tutorials online, and USQ plans to offer many more academic programs online by 2012 (The Chronicle 2009). ‘Technology is the tool used to provide a facility for a teacher facilitated, learner centred environment’ (Bonanno, 2005). It is only through the many improvements and advances in technology that education has been so accessible and with it flexible learning has been implemented. Flexible learning has made education more accessible because, study is teacher facilitated and enables the student to be positioned as the central focus of education. According to Harmes there are many benefits of flexible learning, students are able to access their study any time they like, and this means that they are able to co-ordinate study around work and family life. The flexibility that technology provides has enabled students to study at their own pace (Andrews Ferman, 2001). Additionally students have a sense of freedom with their study, slotting it in whenever they please. Knowles (cited in Choy and Delahaye 2002) researched how adult learners are more likely to be motivated and experienced in life, and that they are ready to embrace learning with deeper appreciation and understanding. Knowles (1973) continues by discussing how this self-driven learning is assisted through flexible delivery and how students benefit from a mature independent approach to education with the option for teacher help when needed. As a result of this Bonanno suggests that with good self-discipline and time management students are able to have freedom and access to study anytime and place, thus enabling many styles of learning. Technology has increased the flexibility that students have, thus allowing greater access to education. Despite the fact that education has embraced technology, there are still some problems which must be resolved. According to Ralston (1999) it appears that although many have embraced technology for learning, there are still many who are either too afraid to or do not have the skills and confidence to do so. Furthermore he suggests that that those who do not attempt to engage technology will be severely disadvantaged, because the twenty-first century is the age of technology. Andrews and Ferman (2000) noted on their study of the University of Queensland, -Ipswich campus that many students found the course material limited, that there was a lack of structure, and there were also a significant number of technical difficulties. Additionally Bonanno (2005) discusses some of the disadvantages of technology and states that the learner can easily lose motivation partly due to a lack of classroom spirit and teacher facilitated learning. Technology can be out of date or difficult to understand and often it can be confusing and sometimes it can just be that there is no technical support available. Bonanno’s (2005) comments that many problems occurring are learner related and that in order to be successful the learner must be self-motivated and have a reasonable degree of self-competency. She also comments that the facilitator or teacher must be motivated as well and be able to produce engaging study material for the student to work with; they must also be able to direct, listen and support students. Despite some complications, changes in technology help to make sure education is more accessible and equitable. Universities are able to capture larger numbers of students enabling more funding from the government. Students are able to be in control of their own education pathway and are able to be flexible about when and where they choose to study. Students can also choose to study gregariously in online classrooms and even traditional classrooms. Problematic areas will in time be improved as technology upgrades on a daily basis; including faster internet options. With this evolving technology people’s knowledge and experience will increase and in time student numbers and study options will grow. It is realistic that flexible learning will be and indeed should be the way of the future in education and that there will be a worldwide classroom. References Andrews, T Ferman, T 2001, ‘The flexible learning experience – how good is it really? ’ in L Richardson J Lidstone (eds), Flexible learning for a flexible society, pp. 39-45. Proceedings of ASET-HERDSA 2000 Conference, Toowoomba, Qld, 2-5 July 2000. ASET and HERDSA http://www. aset. org. au/confs/aset-herdsa2000/procs/andrews-t. html. Bonanno, K 2005, Online learning : the good the bad and the ugly, Proceedings of the XIX Biennial Conference Meeting the Challenge, Australian School Library Association, Zillmere, QLD, pp. 1-7 Choy, SC Delahaye, BL 2002, Andragogy in vocational education and training: learners perspective, Proceedings of the Fifth Annual Conference, Australian Vocational Education and Training Research Association (AVETRA), Melbourne, VIC University of Southern Queensland 2009, University offers online options to its students, The Chronicle, 10 Jul, p. 41. Collis, B Moonen, J 2002, Flexible learning in a digital world: experiences and expectations, Kogan Page, London, UK, pp. 8-10,17,26-27. Harmes, M 2011,TPP7120 Studying to succeed ,Appendix 3’Flexible and Blended Learning’, University of Southern Queensland,Toowoomba,viewed 25 September 2011,http://usqstudydesk. usq. au/ Huijser, H, Bedford, T Bull, D 2008, OpenCourseWare global access and the right to education: real access or marketing ploy? , International Review of Research in Open and Distance Learning, vol. 9, no. 1, pp. 1-13. Ralston, P 1999, Education for IT equity, The Australian, 12 Jan, p. 44. Zhao, Y 2009, Catching up or leading the way: American education in the age of globalization, ASCD, Alexandria, VA, pp. 98-113.

Strategic Analysis Of Nestle Company Management Essay

Strategic Analysis Of Nestle Company Management Essay The purpose of this paper is to critically evaluate the strategic decisions that have occurred over the corporate history of Nestle mentioned in the case and to what extent has Mergers and Acquisitions and Strategic Alliances played a role in NESTLEs strategy in that period. In order to evaluate these strategic decisions, the paper shall outline Nestlà ©s historical strategic decisions; give a brief description of each decision and how mergers and acquisitions contributed to the growth of the company. The paper goes on to explain the current strategies of Nestlà © and how sustainable these strategies may be in the future. It explains the rationalisation of these current strategies and the new strategies that ought to be developed. The paper then looks at the future strategies of Nestle to outline the issues that are likely to be faced when these strategies are implemented .Likely actions are then suggested which may help give solutions to problems faced by Nestle on implementation of its future strategies. The strategic decisions involve new product development, extensive research development and entry into new product category which were mostly achieved through mergers and acquisitions. The current strategy was noted as unsustainable in the long term due to the fact that most of the products of Nestlà © cannot be classified as healthy .The suggestion made was that Nestle should come up with strategies that will make them healthier than their competitors. Nestlà ©s future strategies were also scrutinized and possible solutions given to overcome some of the strategic implementation issues the organization is likely to face. 1.  Ã‚  Ã‚   Evaluate the strategic decisions that have occurred over the corporate history of NESTLE mentioned in the case and to what extent has Mergers and Acquisitions and Strategic Alliances played a role in NESTLEs strategy in that period?    Expansion According to Bell and Shelman (2009), Nestlà ©s sales expanded rapidly across Europe a few years after its inception. The company started developing an international reputation, and in 1905 it took the strategic decision of acquiring its main competitor, the Anglo-Swiss Condensed milk company (Bell and Shelman, 2009). The Federal Trade Commission refers to this as a horizontal merger where a firm acquires a former competitor allowing for a consolidation of companies in the same industry (Barney, 2011). As a result, Nestle in the early 1900s began positioning itself as a powdered milk, and infant food company. Furthermore, the combined companies through the Nestle brand name continued to grow through product and market extension mergers. Barney (2011) describes a product extension merger as one which adopts a complementary product through an acquisition, as seen in the case of Nestle which aligned product adoption in categories such as sugar, milk, cocoa and coffee. Nestlà © further undertook market extension mergers which involve gaining entry into complementary markets through acquisitions (Barney, 2011); whereby Nestle entered the confectionary, coffees, cereals, soft drinks, ice cream, water and prepared foods markets (See Ansoff Matrix below). Ansoff (1965) would argue that Nestlà © uses four different approaches to grow its products and markets. To explain the reasoning behind Nestlà ©s past MAs they can be assigned into these categories of growth which include: market penetration, product development, market development and diversification (See Ansoff Matrix above). During the 1920s, Nestle diversified its portfolio from infant formula to include Milo. This was its first powdered drink not created for infants. Spanning from 1938 to 1948, Nestlà © made the decision to enter into coffee and tea sector with the launch of Nescafe and Nestea. Nestle also diversified into the confectionary market, prepared foods, water, pet foods, energy bar and weight loss markets with the acquisitions of Peter, Cailler, Kohler Swiss Chocolate Company, Maggi, Vittel, Friskies, Powerbar and Jenny Craig respectively. Diversification outside the food and drink industry to enter pharmaceuticals and cosmetics was executed in the 1970s when it became a minority shareholder of LOreal (25%) and later acquired Alcon Laboratories. Barney (2011) highlights that acquiring new companies leads to reduction in production or distribution costs through economies of scale and vertical integration. Mergers and Acquisitions are also beneficial In increasing market share For industry know how and positioning For Financial leveraging (See appendix 3) Reasonable for this industry To improve profitability and EPS (See exhibit 2 for EPS 2006 and 2007) Source: Lasserre (2012) According to Lasserre (2012), MAs can also create several types of values for a company. He argues that they are justifiable if the economic value of the two entities is worth more combined than the sum of independent values before the merger (2012). Thus, the businesses must create shared economic values through synergy by increasing revenues whilst decreasing costs. Lasserre assumes these created values can be both short-term (one-off value) and long-term (synergistic effects). Diversification and global reach were the main values created for Nestlà © in its acquisitions. For example, Carnation enabled Nestle to extend not only in its product range but also to reach new areas around the world. The following table outlines the values created through Nestlà ©s MAs. Nestlà ©s MAs Value created Anglo-Swiss Condensed Milk Company  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Consolidation Maggi  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Acquisitions in canned and frozen foods, water, ice cream and pets food  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Alcon Laboratories  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Options (to monitor the evolution of the technology) Carnation  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Global reach  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Ralston-Purina  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Jenny Craig  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Diversification Novartiss Gerber  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Global reach  ·   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Options (to monitor the evolution of the technology) Table: Nestlà ©s MAs and their value created. Source: Authors own creation based on information from Bell and Shelman (2009) and Lasserre (2012). Furthermore, the relationship between Nestle and LOreal developed further when they created two joint-ventures: Galderma and Laboratories Inneov. According to Barney (2011), joint ventures are undertaken in order to manage risk, share costs, and enter into new markets and industries. It is assumed that Nestle saw the benefits of alliances rather than acquisitions into the cosmetics market due to its lack of knowledge on the industry. Once Nestlà © diversified its portfolio, they followed-up by expanding brands through what Ansoff (1965) refers to as market penetration. In order to utilise its current resources, and take advantage of the market opportunities created by Milo and Nescafe, Nestle developed new brands such as Nesquik and Nespresso (Bell and Shelman, 2009).   Additionally, Nestlà © acquired more brands consistent with its presence in the water and pet foods market: e.g. Vittel and Friskies.   Ã‚   According to Ansoff (1965), market development is the introduction of existing products into new markets. This can be seen through Nestlà ©s acquisitions of Stouffer, which enabled the company to sell its food products to different markets: frozen prepared meals. Lastly, Nestle used product development to introduce new products such as Buitoni, Carnation, and Kit Kat to grow within its existing market of food, powdered drinks and confectionary. Nestlà ©s diverse portfolio provides it with a competitive advantage, and has enabled the company to become the worlds largest food and Beverage Company (Bell and Shelman, 2009). However, it seems that some product diversifications through mergers and acquisitions led to the downfall of its profits; especially visible in the years leading up to Mauchers administration (Bell and Shelman, 2009). Barney (2011) suggests that mergers and acquisitions between strategically unrelated businesses do not necessarily create significant economic profits. Thus, it can be assumed that Nestlà ©s strategically unrelated acquisition of Alcon and partial acquisition of LOreal between 1974 and 1977, contributed to a decline in profits between 1978 and 1981. Supply Chain Rationalisation As Nestle grew and entered new markets, they worked towards horizontally integrating their supply chain. According to Christopher (2005), companies such as Nestle seek to spread geographically, whilst reducing costs through economies of scale by prioritising manufacturing and operational processes. This can be seen throughout the 1900s as Nestle invests in its value chain by: opening processing plants within the U.S., Britain, Germany and Spain; manufacturing in Australia; warehouses in Singapore, Hong Kong and Bombay; and factories in the U.S. and Brazil (Bell and Shelman 2009) (See Nestlà ©s value chain). Firm infrastructure Decentralized organization Executive Committee consists of the CEO and 12 top managers The company is structured through 43 regional organisations reporting to directors of three geographic zones (zone Europe, Asia/Oceania/Africa and zone Americas). Country managers are given a large degree of autonomy when dealing with customer matters. Nestlà ©s Value chain Human Resource Management Focus on developing local management Investment in training and providing cross experiences People start from the bottom and move their way up in the organisation Unique culture/ focus on long term results Developing people from acquired companies. Technology Development Strong RD platform/ open innovation model Big investment in RD (investment to support pharmaceutical businesses and food, nutrition, health and wellness) Creating an innovation acceleration team to support rapid product introductions. Initiating a common technology infrastructure/ a comprehensive information system named the GLOBE. Margin Procurement Purchasing some raw materials instead of processing them in-house. 60% of materials purchases from emerging economies Direct sourcing -In developing countries agricultural commodities are bought from local markets and often directly from farmers- rather than on the world market Service Jenny Craig -personal nutrition counselling / Jenny Direct website and phone /Home delivery. Personalized services 24/7 service though telephone and internet help line for Nestlà ©s premium products. Marketing sales Positioning the company as healthy Strong brands product and brand differentiation. Dealing directly with consumers. Medical nutrition: market to professionals Outbound Logistics Synchronization of data between manufacturing and retailers- through the GLOBE system. Introducing new distribution channels for some brands (e.g. Nespresso corners, boutiques and home delivery) Inbound Logistics Ware- Housing Operations -Manufacturing, food processing plants -Producing locally -About half of the factories are in developing countries/ production for the local market. -Partnership with local farmers -providing advice and support -Implementing quality control processes. Moreover, Nestle made the strategic decision of establishing local supply chains which meant deploying its agricultural capabilities down to  the farm level through strategic alliances. This is referred to as their milk district model which allows farmers to supply milk to the company directly and in exchange Nestle provides its resources and know-how, such as providing storage and chilling facilities (Nestle, 2012). This highlights the fact that Nestle was seeking to establish its value chain activities, or Global business system, earlier on in its history (See value chain above).   According to Hill and Hill (2009), this type of model has the capability of reinforcing a companys competitive advantage as it is able to overcome barriers to integration, better respond to delivery speed, simplify sharing of information and reduce costs of production (Bell and Shelman, 2009). Adapting to a Global Role Nestle recognised that for it to sustain its competitive advantage it needed to establish a global technological platform to capture data, manage information and create knowledge (Bell and Shelman, 2009). Consequently Brabeck made the strategic decision of initiating the GLOBE system. Using this common technological infrastructure, it would be able to share information amongst all Nestlà ©s businesses and allowed for a synchronization of data in its supply chain (Bell and Shelman 2009). Refocused Strategy: Nutrition, Health and Wellness Nutrition has always been an integral part of Nestlà ©s vision, dating back to its first nutritious infant formula. However, due to Nestlà ©s realisation of consumers being increasingly aware of the link between food, health and personal wellbeing, there has been more of a shift away from a technology and processing-driven image towards health and wellness (Bell and Shelman 2009). Under Brabecks tenure, a Nutrition Strategic Business Division was created, along with the acquisitions of Proteika, Musashi (nutrition business), Jenny Craig (diet centres) and Novartis Medical Nutrition (Bell and Shelman 2009). Restructuring of Research and Development Unit Nestlà © also made a strategic decision of restructuring its RD unit to satisfy customer needs and internal growth. This was by shifting away from small decentralized units set up globally to limited large resource-intensive centres. This was done to renovate old brands by finding multiple uses for its product. Under Brabecks tenure, a 60/40 preference rating system was introduced where products were either discontinued or sold if they did not achieve the 60% level. This was done in order to ameliorate the companys performance and market orientation (Bell and Shelman, 2009). 2.  Ã‚  Ã‚   To what extent is the current strategy of NESTLE competitively sustainable in the future? How should it be rationalised and what new strategies ought to be developed in the future? Current strategy Nestlà ©s current strategy was to achieve worldwide sustainable competitiveness through four strategic pillars: low cost, efficient operations, renovation and innovation of the Nestle product line, universal availability and improved communication with consumers through better branding. They also had a vision of transforming the company from a technology-and processing-driven food and beverage company towards a vision of nutrition, health and wellness. (Bell and Shelman, 2009, p.3). Nestlà ©s current strategy of reorganizing its operations did come as an advantage as in some cases moved away from its agricultural and processing roots to buying the ingredients from outside suppliers (Bell and Shelman, 2009). This can be argued on the basis of Nestlà © reducing the steps of its value chain activities as Brabeck explained some of these activities could not add value to some businesses. An example would be the fact that Nestlà © exited from cocoa roasting but still carried on producing chocolate. This in turn reduced the costs and made the value chain more efficient. In fact, in terms of strategic operations, Lasserre (2012) argues that making fundamental changes in the value chain can lead to developing new products and services which can help a company sustain its innovative advantage. Moreover, to enhance the reliability of its suppliers, Nestlà © implemented a strategy of forming partnerships with its suppliers by creating direct links with them and providin g them with support and technical advice. This helped the company cope with the volatility of the supply market and enhance its operations.   Therefore, in terms of operational efficiency, Nestlà © can be seen to be sustainably competitive. Secondly, Nestlà ©s current strategy was focused on renovating and innovating its product line through reorganizing its RD.   Lasserre (2012) suggests that organizations such as Nestlà © could be trying to gain a critical mass advantage. He further explains that in order to achieve this, a minimum amount of resources needs to be mobilized for an activity to perform efficiently and effectively. Hence, Nestlà ©s shift from decentralized units of RD to few large resource-intensive centres. As a result of its RD centralization, Nestlà © was able to reinvigorate old brands; an example was finding multiple uses of the Nesquik brand from not only being a powder but to also present it as syrup and into ready to drink varieties. However, this strategy came at a disadvantage to Nestlà © as they lost the benefits of decentralization. These benefits include proximity to markets which gives a firm the ability to create products that fit local customer specificities, gaining access to geogr aphical clusters of knowledge creation and development access to good-quality scientists and the capability of a firm to learn from different market and cultures (Lasserre, 2012). Therefore, in terms of its RD strategy, it could be argued that Nestlà © will have trouble sustaining its competitive advantage in the future since part of its future strategy is to expand to other markets. Thirdly, with the introduction of GLOBE in the mid-2000s, Nestle initiated an era of capturing data by tying all of Nestlà ©s entities together under a common technological platform. This led to the company standardizing its data to manage its vast information and create and share knowledge among its Strategic business units, manufacturers and retailers. The main idea was to use shared knowledge to enhance the collaboration between all the different units of the company which can reduce costs and produce value all over the organisation. Bauwens (2012) outlines this as a social innovation where knowledge is shared and can be used by others. A good example would be the fact that the Globe system allowed for a synchronization of data leading to an improvement in order fulfilment between manufacturers and retailers. This has allowed Nestlà © to sustain its competitive advantage by adapting much faster to change and delivering value to customer (Lasserre, 2012). Therefore, knowledge sha ring has the potential to play a big role in helping Nestlà © maintain its competitive advantage.    Nestlà ©s final strategic pillar of improving communication between the organization and consumers through better branding could signify the companys efforts to differentiate its products. Barney (2011) would argue that Nestlà © could be trying to alter perceptions of current and potential consumers by altering its product features. In fact, Nestlà © focused on reducing fat and calories as well as incorporating healthy and natural ingredients into a wide range of products. It could be argued also that better branding is linked to its vision of moving from a food and beverage company to a wellness, health and nutrition company. This could also be Nestlà ©s way of differentiating its products by taking advantage of its reputation in the marketplace as a leading company in its industry. Therefore, customers would, in the long term, respond positively to the companys efforts of producing healthier products. Thus, if Nestlà © actually succeeds in changing peoples perceptions and posi tion itself as a health driven company, it can manage to maintain its competitive advantage in the future. It is through these four strategic pillars that Nestlà © derives its current model, the Nestlà © model, which refers to the companys long term of objectives of organic growth (target of 5% and 6% each year), continuous yearly improvement in EBIT and improve capital management which determines the assets of the company against the profit it generates (Bell and Shelman, 2009). The company seems to be achieving its objective as it has slightly improved its earnings before interest and taxes as seen in exhibit 6; it has slightly made progress in its capital management through its improved return on capital employed as seen in Appendix 2; and it has been able to achieve its objective of organic growth between 5% and 6% except for 3 years between 1996 -2007 years also indicated in Exhibit 6. Therefore, it is safe to assume that Nestlà ©s current strategy is competitively sustainable in the present however it remains to be seen if it can be successful in the future with its new vision . This is due to the fact that Nestlà © is possibly trying to implement both product differentiation and cost leadership strategies. Porter (1980) defines such firms as stuck in the middle (Barney, 2011). On the one hand, three of its strategic pillars indicate the companys intention of becoming a cost leader through low cost operations, restructuring its product line and efficiently managing its knowledge. On the other hand, it wants to differentiate its whole portfolio of products and services by changing the product features or by diversifying their products. Porter (1980) cited in Barney 2011 further explains that if a firm tries to implement both strategies then one of them will fail. He continues to add that for a firm to be economically superior in a single industry then they need to sell   at a high price and have small market share (product differentiator) or sell at a low price and gain significant market share (cost leader) therefore Nestlà © needs to decide which of the two it wants to become . As a result, a lot of their organizational requirements such as organizational structure and management control systems are stuck in the middle for example the fact that certain products need to be managed globally especially in the nutrition division while others are locally managed. Nestlà ©s current strategy could be rationalized by foregoing their vision of being a nutrition, health and wellness organization. Instead they should focus on being more of a healthier food and beverages company as a cost leader with its current Nestlà © model. First of all, if Nestlà © was to pursue a health, nutrition and wellness strategy Nestlà © would then have to restructure its product portfolio by getting rid of its unhealthy products such as Hot Pockets, and Kit-Kat. In exhibit 8 it can be seen that these products do not deliver growth to the company yet in exhibit 9 they seem to have a higher market share. This shows that the unhealthy products are in fact the cash cows of Nestlà © which indicate that they are the foundation of the company. It should try and follow Unilevers example of focusing on its core products. Therefore, Nestlà © should frame new strategies and make changes to its vision. Instead of holding on to unrealistic goals, the company could reposition itself in the market as becoming healthier than the competition. In fact, Nestlà © has already implemented this approach in the past with several products by introducing some nutritional improvements. As an example, Nestlà © reduced ice-cream fat by 50% and calories by 30% for Dreyers Slow Churned ice-creams and added healthy ingredients to some chocolate snacks (Bell and Shelman 2009). This indicates that the company has the resources needed to deploy this repositioning strategy. The company should also revaluate its SWOT analysis in terms of switching its vision to Health, Nutrition and Wellness. (refer to Appendix 2) Indeed, the strong RD platform enables Nestlà © to produce more healthy products while maintaining its taste. Moreover, Nestlà © has the capabilities of doing so with its open innovation model (global network with 5,000 scientists and technologists as well as RD centres worldwide) which enables the company to maximize its chances of coming up with new and innovative products. 3.  Ã‚  Ã‚   With regards to future strategies what are the strategic implementation issues likely to be faced by the company and what actions should they take to overcome them? Future strategies One of the future strategies of Nestlà © is to grow internally instead of growing through mergers and acquisition. Implementing this strategy could be catastrophic for the company as its growth has been largely relying on acquisitions and joint ventures. Nestlà © would also lose the benefits of using joint ventures, strategic alliances and acquisitions (Appendix 4). This would then imply that Nestlà © would have to use its own resources and core competencies to expand thus placing a greater risk on the business. It can also have a negative impact on the liquidity position of the company. A way in which this issue could be overcome is by applying both strategies. By applying both strategies, the company would be able to spread its corporate risk and share its costs as its return on capital employed still continues to generate profits for the company. Additionally, Nestlà © has managed to build strong foundations through mergers and acquisitions which has led it to improve its financial position. As seen on Exhibit 4, the acquisition of businesses has increased from 447 million in 2006 to 456 million in 2007 which has improved its cash flow. Therefore, in order to maintain a strong position, Nestlà © should carry on with mergers and acquisitions as well as growing internally. Another of the future strategies initiated by Bulcke is to shift the structure of Nestlà © from an organisation by country to an organisation by business through sharing best practices using GLOBE (Bell and Shelman 2009, p.10). He argues that this would enable Nestlà © to start managing its operations globally instead of adapting to every market. However, using the McKinsey 7s framework, many issues can be foreseen as seen on the table below. Factor Strategy Produce variety of quality products, wide variety of brands. Focus on nutrition, health and wellness. 4 strategic pillars (low cost, efficient operations, renovation and innovation of the Nestle product line, universal availability and improved communication with consumers through better branding) (Bell and Shelman, 2009, p. 3) Structure Decentralised and relatively flat organisational structure which helps to cater for local needs thus increasing flexibility. organized by country/ every country is like a small kingdom It has operations worldwide through strategic business units. System Comprehensive information system:   the GLOBE Employees move from the bottom up in the organisation. Style Democratic leadership style: managers are given autonomy to take decisions.   As such, they feel a sense of belonging in the organisation Staff Nestlà © maintains local companies with regional staff in local markets as they better understand the needs of customers. 43 regional organisations. More than 275,000 employees. It has a pool of experts- its staff consists of scientists, technologists from top universities (Bell and Shelman, 2009, p. 6) Skills Nestlà ©s competitive advantage is its RD. It has a high level of technology (23 Product Technology Centres), and  a network of experts around the world. (Bell and Shelman, 2009, p. 9). Shared Values Deliver long term value to shareholders. Focus on long term results. Unwritten culture strong personal culture (Bell and Shelman, 2009, p. 8). Although the change in the structure and the strategy was supported with a change in systems by adapting the GLOBE, other elements of the framework have not been adapted. For instance, the style used by Nestlà © was a democratic leadership style where management in the different countries are given a great deal of autonomy. By changing to a more centralized and global management style some internal resistance from the people can emerge.   The different markets are used to operating as small kingdoms (Bell and Shelman 2009, p.10). Therefore, given that country managers in the different countries were used to be given a great deal of freedom especially when dealing with issues related directly to the customer, this new strategy can produce some internal problems for Nestlà ©. To overcome this issue, other elements of the 7s framework have to be adapted. The main element that links everything together is shared values. Nestlà © has to work on making changes to its internal culture by introducing new shared values between its people. Implementing the GLOBE is not enough to implement the new strategy, a culture of sharing information and best practices should also be introduced and reinforced. Nestlà © should teach its people to move from a management style of taking control and matters into their own hands to a style of sharing control and producing decisions globally and collectively. The implementation of this approach may differ across countries due to the cross-cultural differences between countries. According to Lasserre (2012), country specific cultural values influence managerial values and assumptions in an organisation. As an example, Lasserre (2012) illustrates that western countries are more individualistic while Asian countries are collectivists which heavily impacts how business is done in these countries. In terms of implementing a culture of sharing, it can be assumed that Asian countries would respond more positively to the change than western countries.   Ã‚   Nestlà © intends to achieve its future growth by implementing four platforms for growth which are health, nutrition and wellness (to be the centrepiece), emerging markets, out of home consumption and premiumisation of existing products. (Bell and Shelman, 2009).The aforementioned strategy for growth is expected to double Nestlà ©s sales in the next 10 years. (Bell and Shelman, 2009)   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Bulcke emphasized that the priority should be on health, nutrition and wellness to implement the vision into every product segment and every country. This vision is in line with Brabecks strategies of going beyond food to Nutrition, Health and Wellness (Bell and Shelman, 2009). The total sales for Nestlà © Nutrition segment has significantly increased from 5,964 million in 2006 to 8,434 in 2007, which represents an improvement of 41% as shown in Exhibit 11. Although total sales have increased, most products that have led to this increase in sales were unhealthy. So, in order to maintain its vision as a Health, Nutrition and Wellness, Nestlà © should give up its unhealthy products in the long term. However, this would negatively impact on the financial position of the company as these are its core products. Moreover, making the same products available in every market might not be adapted to the needs of every customer in terms of tastes, preferences and nutritional value so Nestlà © should make sure at least every different product are tailored to the needs of every different market.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Regarding emerging markets, Bulcke found out that these markets are growing at a faster pace and therefore Nestlà © should integrate further into it as there is a high potential for growth. The implementation of popularly position products (PPP), a strategy designed for low income earners so they can afford good nutrition products on a daily basis, is ex

Social Enterprise and Commercial Enterprise

Social Enterprise and Commercial Enterprise INTRODUCTION Social enterprises are businesses driven by a social or environmental mission (social enterprise coalition). They are businesses primarily set out for social purpose. Whose principal objective is to reinvest their surpluses mainly for social purpose in the business or community rather than maximise profit for shareholders and owners (The Cabinet Office. Office of the third sector). Commercial enterprises are business organisations that are set up mainly for profit. Their main objective is to maximise profit for their shareholders and owners. It could be Mobil unlimited or publicly owned companies like commercial banks or limited liability companies. Social enterprise transcends traditional non-profit sector and applies to health, environment, education and social welfare. It also applies to economic development or job creation programmes (Virtue Ventures, 2007). An example is Southampton social council that is geared towards providing quality education for the children in its communi ty. It is also involved in providing quality water for its citizens free from sodium, lead and impurities. It is also very proficient in its waste disposal by maintaining a clean environment. In order to achieve this, it organises a programme called enviro_champs where university staff and their students are involved. University of Southampton and Southampton Solent University are involved in this programme. Differences and Similarities between Social Enterprise and Commercial Enterprise Social enterprises are different from a standard charity because they use a businesslike approach to tackling social problems instead of relying on grants (Virtue Ventures, 2007). Social enterprise are designed to meet social needs and also to achieve commercial viability similar to the private sector (Virtue Ventures, 2007).Business plans and other research tools can be utilised to design social enterprise policy by analysing an organisations internal factors such as core competences, weaknesses and needs of its clients and external factors such as legal and regulatory environments, markets, demand and access to capital. Therefore social enterprise operational models are geared towards market realities, organisational capabilities and social needs (Virtue Ventures, 2007). The Environment Centre (tCE) which is an arm of energy saving trust. Its aim is to encourage and educate people about the benefit of sustainable alternative energy. The objective of tCE is to educate the people about the havoc caused by using fossil fuel for generating energy, and the pollution caused by the emission of carbon dioxide and other toxic gases. This is achieved by helping people to apply for grant from government. In doing this people are encouraged to use solar energy, wind turbines, bio fuels and hydro energy to generate electricity for their homes. Grants are also given for home insulation. This is purely a social service and not for profit (The Environment Centre, 2008). tCE obtain funding from European Union. Social enterprises raise standards for ethical business and corporate social responsibilities (Social Enterprise East Midlands). Social enterprise plays a larger role in delivering public services like provision of leisure services, recycling services health and social care for council(Cabinet Office: Office of the Third Sector) . Unlike social enterprise that are not for profit organisation. Commercial enterprises are not mainly into provision of public services; the few that are in these areas are very expensive, because they are principally for profit maximisation. Commercial enterprises raise their capital from individuals and stock markets while social enterprise raise their capital from non governmental organisations. Social enterprise can also benefit funds from the same sources as commercial enterprises. The only difference is in the range of finances available which may differ depending on the function and form of social enterprise. It could be in the form of grant, debt, equity, social venture capital or philanthropy capital (Anglia Ruskin University, 2009). Business enterprises and social enterprise s read from different bottom line, one purely financial while the other takes into account the social benefits derived from the enterprises operation. With these differences, they also share some similarities as follows, they are both ambitious, they both have the ability to look for resources in most remote places, they are creative in their solution to problems, and they also build something out of nothing (School for Social Entrepreneurs). The enterprise act 2002 which relates to competition law and the legislation for the protection of consumers (Enterprise Act Publication, 2002). The fair trade act 2003 all are legal laws regulating both commercial enterprise and social enterprise. Both commercial and social enterprises need to be legally registered according to the law of United Kingdom or anywhere in the world where they operate before they can start operations officially and legally. Commercial enterprise compete in the market place in order to maximise profit and also for t he share of the market which is geared towards growth while social enterprise only compete to make profit in order to improve their services for their environment and their community. Companies like Primark competes in the market place with organisations like Matalan, Georges, Marks and Spencers for the share of the market. Their main purpose is to maximise profit and for growth in order to be the market leader. They employ business tools and models to gain competitive advantage and to achieve sustainable leading edge. In recent time social enterprise is becoming an integral of commercial enterprise. Commercial enterprises are moving towards philanthropic activities (Porter and Kramer, 2002). They form sister companies which are basically not for profit organisations. These not for profit organisations aim is to give something back to the community where they operate. This is popularly known as corporate social responsibilities. It could be in the health sector by subsidising health bills of the people in the area where they operate. Some organisations focus on a particular area like heart diseases or cancer patients or leukaemia patients. While some are into recreation of the environment. An example is Primark which embarked on beautifying parks around Southampton (Primark Stores Ltd, 2009).Primark supports community projects across the UK and Ireland (Primark Stores Ltd, 2009). All these are in an attempt to gain competitive advantage. Philanthropy is used as a form of public relations or advertising. It is sometimes used to promote companies image or brand, through rigorous marketing or high profile sponsorship (Porter and Kramer, 2002). True strategic giving addresses both social and economic goals simultaneously unlike cause related marketing. They target areas of competitive context, where the company and society both benefit this is because the firm brings unique asset and expertise (Porter and Kramer, 2002). Organisations uses their philanthropic posture to enhance competitive advantage by aligning social and economic goals thereby bringing improvement in a companys long term business prospects. This gives rise to sustainable competitive advantage (Porter and Kramer, 2002). By addressing corporate social responsibility a company is not only giving back to the society but also leveraging its capabilities and relationship in support of charitable organisations. An example is Marks and Spencer start programme th at gives opportunity for work experience to a range of people including the young unemployed, the disabled, the homeless. Parents returning to work. Also for students who are the first in their families are encouraged to aim for higher education (Marks and Spencer CSR). Companies do not operate in isolation from the society around them. Their ability to compete depends on the circumstances of the location where they exist. Improving education is seen as a social issue. The educational level of the local work force greatly affects a companys potential competitiveness. The more a company is involved in corporate social responsibility the better it is positioned for economic benefits. Apple is a company that is positioned as an innovative organisation; therefore it develops its professionalism in its work place by developing and training its work force (Apple, 2009). Also by giving them sound health packages and housing benefits. This is because investment in the work force is paramoun t to productivity combined with finance and materials. This gives Apple a sustainable competitive advantage in the market against its competitors. Conclusion In conclusion the long run of social and economic goals are not conflicting, instead they are integrally connected. Competitiveness in recent time depends on how organisations can combine labour, capital and natural resources to produce high quality goods and services. Productivity depends on having workers who are educated, safe, healthy, decently housed and motivated by sense of opportunity (Porter and Kramer, 2002). My placement in Southampton city council as a volunteer has thought me a lot of important things I need to know about active community group. Basically what I have gained is not much because Im still doing a research, on how to know what the community wants from the council, which I believe it will be completed soon. Also, I went for a Conference in Birmingham about community engagement, which was unbelievable, m eeting up with different regions and met the Chief Executive,CDF. Nevertheless it was a tremendous meeting which they talk about several programms like Business case for community engagement, Working with the third sector and Take part etc.It was an excellent conference because everybody had to introduce themselves and their position in city council from different county.I would gain more idea from city council because I might stay with them till end of January 2010. Bibliography Anglian Ruskin University (2009). Creating Social Enterprises.  A guide to Social Enterprise for University Staff. Cambridge and Chelmsford.[online] Available:www.anglia.ac.uk/rdcs[accessed: 22 November 2009] Apple Store (2009). [online] Available : http://store.apple.com/uk?afid=p202%7CGOUKE100801461cid=OAS-EMEA-KWG- UK_General-UK [accessed: 20 November 2009] Cabinet Office, (2006). www.cabinetoffice.gov.uk/third_Sector/Social_Enterprise/action_Plan Enterprise Act (2002). [online] Available: http://www.oft.gov.uk/shared_oft/business_leaflets/enterprise_act/oft51 8.pd f [accessed: 22 November 2009] Funding For Collaboration( 2009).[online] Available: http://www.adventurecapitalfund.org/[accessed: 23 November 2009] J4b.Fit4funding.The Charities Information Bureau. [online] Available: http://www.j4b.co.uk/[accessed: 22 November 2009] Marks and Spencer-CSR. Social Inclusion and Job Experience. [online] Available: http://www.article13.com/A13_ContentList.asp?strAction=GetPublicationP NID= 1 344 [accessed: 24 November 2009] Social Enterprise Collision. Keeping it Legal [online] Available: http://www.socialenterprise.org.uk/pages/about-social- enterprise.html[accessed 20 November 2009] Porter, M.E. and M. R. Kramer (2002).The Competitive Advantage of Corporate Philanthropy. Harvard Business Review. Boston: Harvard Business School Corporation. Primark Stores Limited (2009).Corporate Social Responsibility. Local Community Report. [online] Available : http://www.primark.co.uk/aboutus/CSR[ accesses 23 November 2009] The Environment Centre tCE (2008). Sustainable Planning Centre (SISCO) . [online] Available: http://www.environmentcentre.com/[accessed: 25 November 2009] Virtue Ventures (2007 ). [online]Available: http://www.virtueventures.com/setypology/index.php?id=INTROlm=1[access ed: 23 November 2009]

Hot Dogs :: essays research papers

How Hot Dogs Are Made: The Real Story There are many tall tales about the way in which hot dogs are made. I remember when I was a kid, my dad told us that hotdogs are pig fetuses and other bi-products picked up from the floor and thrown into the grinder. To tell you the truth I have thought that ever since I first heard it. It wasn’t until I decided to do a little research on this before gruesome and now pleasant process. First, specially selected meat trimmings of beef and/or pork (just like the meat you buy at the grocery store) is cut or ground into small pieces and placed in a mixer. Poultry hotdogs will obviously use poultry trimmings. High speed, stainless steel choppers blend the meat, spices, ice chips and curing ingredients into a creamy, meaty batter. The batter is constantly weighed to insure that the correct amount of each ingredient is being used. The mixture is then pumped into an automatic linking machine, where it flows into casings. The most popular brands of hot dogs such as, Oscar Meyer or Ball Park use cellulose casings, which are later removed. Some wieners use natural casings, which remain on the wiener when it is eaten. These wieners are considered more traditional, and are usually made by smaller manufacturers and tend to cost a little more. Once the casings are filled, they are linked into long strands of hot dogs and moved to the smokehouse; there they are fully cooked under controlled temperature and humidity conditions. They may be hardwood smoked for added color and flavor. After passing through the smoke and cook cycle, the hot dogs are placed in cool water. If the hot dogs were made with cellulose casings, they are sent to an automatic peeler, where the cellulose skin is stripped away. The individual links are then put through to the packaging equipment. When cellulose casings are used, the hot dogs are of exact size and weight. They are vacuum-sealed in plastic films to protect the freshness and f lavor of the hot dog. Because the casings on natural casings wieners are made from cleaned and processed animal intestines, they are of similar, but not exact, size. Each package of hot dogs contains an ingredient statement, which lists everything that goes into it. These days, it is less common to use variety meats such as hearts in hot dogs.

The Conflict with Traditional Culture Essay -- Traditional Culture, Ho

The conflict with traditional culture The general people consider Hong Kong as an international city because a lot of cross-cultural enterprises choose Hong Kong as a landing base to enter into Chinese market and even Asian market.As a result ,the conscientious of women leadership can be brought into the working ecology through the expending of multinational firms. Nevertheless, it is misleading that the concept of women leadership can wholly be applied to companies in general and help increasing the number of women leader. There are several reasons. Firstly, in Asian countries including Hong Kong , the local market climate is dominated by the local companies and those companies are a kind of family business. A family business means one family has a significant ownership and influence to the decision in the company and the chairman of the company can only be the son within the family. This tradition can be a huge and unbreakable barrier to the women even though the companies are facing the influence of external culture. More important is that this new working concept especially the idea of women empowerment can not readily neutralize the traditional culture. The reason behind is that the setting rule of patriarchy is still utilized in the world today. Patriarchy is a social system which is male dominate and is central in the social organization. (Chesney-Lind, 2006) .One obvious example is that the children surname are followed by father’s family name, which means the sons are entitled to inherit everything from their father normally. As a result, the male can administrate the collective benefits within the family and consolidate the state of male. It should also be highlighted that the system has a conflict to enhance women s... ...nagement. In Fagenson, E.A. (ed.) Women in Management: Trends, Issues, and Challenges in Managerial Diversity. London: Sage. ISR survey. (2005) .On Hong Kong's Scene, how relevant is Gender in Recruitment - Business Perspective by Mr. Eddie NG, Chairman of HKIHRM International Committee, Hong Kong Institute of Human Resource Management .Retrieved from http://www.eoc.org.hk/EOC/GraphicsFolder/InforCenter/Conference/Content.aspx?Type=6&DateTime=2007 Equal Opportunities Commission .(2009). Study on Public Perception of Portrayal of Female Gender in the Hong Kong Media. Retrieved from http://www.eoc.org.hk/EOC/GraphicsFolder/InforCenter/Conference/Content.aspx?Type=6&DateTime=2007 SHAMIR, B. , SALOMON, I. , MANAGEMENT, A. , & Shamir, B. (1985). Work-at-home and the quality of working life. Academy of Management Review, [Electronic version]. 10(3), 455-464. The Conflict with Traditional Culture Essay -- Traditional Culture, Ho The conflict with traditional culture The general people consider Hong Kong as an international city because a lot of cross-cultural enterprises choose Hong Kong as a landing base to enter into Chinese market and even Asian market.As a result ,the conscientious of women leadership can be brought into the working ecology through the expending of multinational firms. Nevertheless, it is misleading that the concept of women leadership can wholly be applied to companies in general and help increasing the number of women leader. There are several reasons. Firstly, in Asian countries including Hong Kong , the local market climate is dominated by the local companies and those companies are a kind of family business. A family business means one family has a significant ownership and influence to the decision in the company and the chairman of the company can only be the son within the family. This tradition can be a huge and unbreakable barrier to the women even though the companies are facing the influence of external culture. More important is that this new working concept especially the idea of women empowerment can not readily neutralize the traditional culture. The reason behind is that the setting rule of patriarchy is still utilized in the world today. Patriarchy is a social system which is male dominate and is central in the social organization. (Chesney-Lind, 2006) .One obvious example is that the children surname are followed by father’s family name, which means the sons are entitled to inherit everything from their father normally. As a result, the male can administrate the collective benefits within the family and consolidate the state of male. It should also be highlighted that the system has a conflict to enhance women s... ...nagement. In Fagenson, E.A. (ed.) Women in Management: Trends, Issues, and Challenges in Managerial Diversity. London: Sage. ISR survey. (2005) .On Hong Kong's Scene, how relevant is Gender in Recruitment - Business Perspective by Mr. Eddie NG, Chairman of HKIHRM International Committee, Hong Kong Institute of Human Resource Management .Retrieved from http://www.eoc.org.hk/EOC/GraphicsFolder/InforCenter/Conference/Content.aspx?Type=6&DateTime=2007 Equal Opportunities Commission .(2009). Study on Public Perception of Portrayal of Female Gender in the Hong Kong Media. Retrieved from http://www.eoc.org.hk/EOC/GraphicsFolder/InforCenter/Conference/Content.aspx?Type=6&DateTime=2007 SHAMIR, B. , SALOMON, I. , MANAGEMENT, A. , & Shamir, B. (1985). Work-at-home and the quality of working life. Academy of Management Review, [Electronic version]. 10(3), 455-464.

We Are What We Eat

I have interviewed 2 of my family members, my mother and father about their identity and their favorite food. My father said,† I am a Honoring of course, although I born in China, I have grown up and lived in Hong Kong for 30 years. † He came to Hong Kong from Shanghai, China to study secondary school when he was 13 years old. The poor policy and living environment in China are the main reasons he do not think he is a Chinese, he lived in a dirty village and did not have chance to study when he had lived in Mainland.Besides, his favorite food is rice because he loves the warm feeling inside belly after eating rice and it is quite cheap. My mother is a born and raised Honoring, however, she said that she thought she is a Chinese as Hong Kong is a part of China. I was quite shocked after hearing her answer. She is a typical Honoring, lived In a small public house with many family members and studied very hard every day when she was young.China can stabilize and facilitate H ong Kong is the main reason she think that she Is a Chinese. Her favorite food Is noodles since she do not like to chew many times inside the mouth and she like to eat some hot and cooked food when having meals. In fact, after the discussion with my parents, I found that their choice of favorite DOD is different, but there still Include similarity Inside. Both of their choice of food Is Chinese traditional food and they also quite popular In Hong Kong nowadays.Thus, I agree with the saying of ‘we are what we eat'. From the two Interviews above, It Is obvious to link up their Identity and values and their favor of the food. Their birthplace and growing place affect a lot of this favor of food. As they are In the same generation and similar birthplace, they are both favorite In some Chinese traditional food. Even though they are In different genders and personalities.

Debt and Trial Balance Essay

DRIVE PROGRAM SEMESTER SUBJECT CODE & NAME BK ID CREDITS MARKS ASSIGNMENT WINTER 2013 MBADS/ MBAFLEX/ MBAHCSN3/ MBAN2/ PGDBAN2 1 MB0041 FINANCIAL AND MANAGEMENT ACCOUNTING B1624 4 60 Note: Answer all questions. Kindly note that answers for 10 marks questions should be approximately of 400 words. Each question is followed by evaluation scheme. Q. No Questions Marks Total Marks 1 Give the classification of Accounts according to accounting equation approach with its meaning and examples. Compare the traditional approach with modern approach of accounting equation approach. Analyze the transaction under traditional approach. a. b. c. d. e. f. g. h. 20. 1. 2011 Paid salary Rs. 30,000 20. 1. 2011 Paid rent by cheque Rs. 8,000 21. 1. 2011 Goods withdrawn for personal use Rs. 5,000 25. 1. 2011 Paid an advance to suppliers of goods Rs. 1,00,000 26. 1. 2011 Received an advance from customers Rs. 3,00,000 31. 1. 2011 Paid interest on loan Rs. 5,000 31. 1. 2011 Paid instalment of loan Rs. 25,000 31. 1. 2011 Interest allowed by bank Rs. 8,000 Classification of accounting equation approach with meaning and examples Analysis of transaction –with accounts involved-nature of accountaffects and debit/credit 2 4 10 6 The following trial balance was extracted from the books of Chetan, a small businessman. Do you think it is correct? If not, rewrite it in the correct form. Debits Stock Purchases Returns outwards Rs. Credits 8250 Capital 12750 Sales 700 Returns inwards Rs. 10000 15900 1590 Discount received Wages and salaries Rent and rates Sundry debtors Bank Overdraft 800 2500 1850 7600 2450 Discount allowed Scooty Carriage charges Sundry creditors Bills payable 800 1750 700 7250 690 Journal entries of all the transactions Conclusion 3 6 10 4 From the given trial balance draft an Adjusted Trial Balance. Trial Balance as on 31. 03. 2011 Debit balances Furniture and Fittings Buildings Rs. Credit balances Rs. 10000 Bank Over Draft 16000 500000 Capital Account 400000 Sales Returns 1000 Purchase Returns 4000 Bad Debts 2000 Sundry Creditors 30000 Sundry Debtors 25000 Commission Purchases 90000 Sales Advertising 20000 Cash 10000 Taxes and Insurance 235000 5000 General Expenses 5000 7000 Salaries TOTAL 20000 690000 TOTAL 690000 Adjustments: 1. 2. 3. 4. 5. Charge depreciation at 10% on Buildings and Furniture and fittings. Write off further bad debts 1000 Taxes and Insurance prepaid 2000 Outstanding salaries 5000 Commission received in advance1000 Preparation of ledger accounts Preparation of trial balance 4 6 10 4 Compute trend ratios and comment on the financial performance of Infosys Technologies Ltd. from the following extract of its income statements of five years. (in Rs. Crore) Particulars 2010-11 2009-10 2008-09 2007-08 2006-07 27,501 22,742 21,693 16,692 13,893 Operating Profit (PBIDT) 8,968 7,861 7,195 5,238 4,391 PAT from ordinary activities 6,835 6,218 5,988 4,659 3,856 Revenue (Source: Infosys Technologies Ltd. – Annual Report) Preparation of trend analysis Preparation of trend ratios 4 Conclusion 5 4 10 2 Give the meaning of cash flow analysis and put down the objectives of cash flow analysis. Explain the preparation of cash flow statement. Meaning of cash flow analysis Objectives of cash flow analysis 3 Explanation of preparation of cash flow analysis 6 2 10 5 Write the assumptions of marginal costing. Differentiate between absorption costing and marginal costing. Assumptions of marginal costing (all 7 points) 4 Differences of marginal and absorption costing (Includes all 8 6 points) 10