What Is the Definition of Marketing

What is the definition of marketing? What are the benefits and drawbacks of incorporating marketing into the sales function of an organization? Do you think that marketing should be included as part of the sales organization within a company? Explain why or why not. What is the definition of marketing? â€Å"Marketing is the recognition and reunion of the human and social or cultural requirements. There is one of the best and smallest meaning of the marketing is the congregation of desires beneficially† (Kotler & Keller, 2009, p. 5). In addition, the meanings of marketing are given as performing actions that can accomplish the objectives by predicting consumer’s requirements to provide required gratifying things, services, and so on, by the Perrault, Cannon, and McCarthy (2009). What are the benefits and drawbacks of incorporating marketing into the sales function of an organization? The benefit or profits of incorporating marketing into the sales function of an organization is eventually raised sales. Marketing can provide many great thoughts for the output or product: any how, you should understand that how to obtain or search out people for purchasing. A mutual attempt of the marketing and sales can provide evidence of the success. The drawback or negative aspect of incorporating marketing into the sales function of an organization is coordination and cooperation†. The sales force or powers believe that the product managers set prices or sale ration â€Å"too high†; or the publicity director and a trademark manager could not concur on an advertising operation or campaign† (Kotler & Keller, 2009, p. 24). In order to do extremely well, all members of the society or organization should work in unity. Do you think that marketing should be included as part of the sales organization within a company? Explain why or why not. Obviously, I believe that marketing should be taken as part of the sales organization within a company. Marketing and Sales are interrelated to each other; Marketing carries out prospective consumer to the sales division. In huge advertizing organizations, it is very complex to describe as where marketing split ends and sales embark on.

Comparing the US Constitution to the 1918

In 1918, while the rest of Europe was still engaged in World War I, a newly formed communist government was developing in Russia. Much like 18th century Americans, they had just managed to overthrow what was viewed as a tyrannical government and hoped to form a new nation free of the injustices of the previous rule. Both countries wrote a new constitution as well as a declaration of rights to facilitate this, but their respective documents had vast differences. These disparities stemmed from differences in the ideologies of the new governments. The primary objectives of the Russian Declaration of Rights of the Working and Exploited People and the later constitution were the â€Å"abolition of all exploitation of man by man, complete elimination of the division of society into classes, merciless suppression of the exploiters, socialist organization of society, and victory of socialism in all countries. † Americans wanted equality of opportunity and personal freedom instead of the social equality desired by the Russians. The American constitution and Bill of Rights were created to protect personal liberties and individual freedom while the Russians were more concerned with the welfare and equality of the population as a whole. This difference is partially due to the differences in the conditions leading to revolution in each country. The American Revolution was initiated by the wealthy in response to what they considered unfair treatment by a foreign ruler while the Russian revolution was instigated by the poor in reaction to centuries of oppression and exploitation by the wealthy within their own country. In the years leading up to World War I, social unrest among the Russian people was spreading rapidly. There was a huge social gulf between the peasants who were former serfs and the landowners. The peasants regarded anyone who did not work as a parasite. They had always regarded as all land belonging to them. They regarded any land retained by the landowners at the time serfs were freed as stolen and only force could prevent them from taking it back. By the time Russia entered the war, one peasant rebellion had already been suppressed and several socialist revolutionary movements were developing. In February of 1917 a group of female factory workers and led a revolt in which the Tsar was dethroned, only to be replaced by a provisionary government composed of the Russian elite. When this government did not live up to its promises of an end to Russian involvement in World War I, the Bolsheviks (â€Å"majority†), a revolutionary movement led by Vladimir Lenin, overthrew the provisionary government in what bacame known as the October revolution. Upon seizing control, they immediately withdrew from the war and began constructing the world†s first ever communist government. One of the new government†s first acts was to write the Declaration of Rights of the Working and Exploited People. On July 10, 1918 the 5th Soviet Congress approved a constitution that, together with the Declaration of Rights, formed â€Å"the single fundamental law of the Russian Socialist Federative Soviet Republic†. Unlike the American Bill of Rights, the Declaration of Rights of the Working and Exploited People seems to have been meant to apply to all of mankind eventually, as is shown in Article 4: Expressing firm determination to wrest mankind from the clutches of finance capital and imperialism, which have in this most criminal of wars drenched the world in blood, the Third Congress of Soviets unreservedly endorses Soviet policy of denouncing the secret treaties, organizing most extensive fraternization with the workers and peasants of the combatant armies and achieving at all costs by revolutionary means a democratic peace for the working people, without annexations of indemnities, on the basis of free self-determination of nations. Their commitment to self-determination of nations was at least partially valid in that they gave Finland complete autonomy and withdrew their troops from Persia, but this may have resulted more from a lack of resources than altruism. Limited self-determination for the nations within the R. S. F. S. R. was also provided for in that the federal government was to be confined to â€Å"promulgating the fundamental principles of a federation of Soviet republics of Russia† while leaving the citizens of each region free to decide â€Å"whether they wish to participate in the federal government†¦ nd on what terms. † Several other liberties were provided for in the Russian constitution, many of which appear remarkably similar to freedoms provided for in the American Bill of Rights. Article 14 provided for freedom of expression, while Article 15 ensured â€Å"genuine freedom of assembly† and Article 13 guaranteed a separation of church and state as well as freedom of religious and anti-religious propaganda. All of these seem similar to the First Amendment of the U. S. onstitution, but they even went farther. Article 14 not only provided for freedom of press, but even promised every citizen access to â€Å"all the technical and material requisites for the publication of newspapers, pamphlets, books and all other printed material† as well as promising â€Å"their unhindered circulation throughout the country. † Article 15, besides guarantying freedom of assembly, promised to provide heated, lighted and furnished buildings for their gatherings. All things come at a price however, and all of these gifts from the government came at the price of true freedom of expression and assembly, as illustrated by Article 23: â€Å"Guided by the interests of the working class as a whole, the Russian Socialist Federative Soviet Republic deprives individuals and groups of rights which they utilize to the detriment of the socialist revolution. † In America, where distrust of the government is common, this passage would have been viewed as tyrannical and would not have been allowed in the constitution. The legislative powers of both the United States and Russia were given to a congress of elected officials. In the United States this is further divided into two houses of more or less equal power. In Russia, the All-Russia Congress of Soviets met only twice a year except in emergencies. During the rest of the year a smaller group called the All-Russia Executive Committee took on the responsibilities of the All-Russia Congress of Soviets. This group was chosen from the congress and remained accountable to it for all its actions. For decisions of major political importance they were required to check with the Congress before taking action. Unlike the United States congress however, both of the Russian bodies also had some degree of executive power, though most executive power was relegated to the Council of People†s Commissars. This council was created to exercise â€Å"general management of the affairs of the Russian Socialist Federative Soviet Republic. † This branch is given slightly more power than its American equivalent. In order to fulfill its responsibilities, the Council is given the freedom to take â€Å"what measures are necessary to ensure the proper course of life of the State. This may seem like limitless power, but they were also required to immediately notify the All-Russia Central Executive Committee of any orders or decisions it made. The Council of People†s Commissars was divided into 18 Commissariats: Foreign Affairs, Military Affairs, Maritime Affairs, Interior, Justice, Labor, Social Security, Public Education, Post and Telegraph, Nationalities Affairs, Finance, Transport, Agriculture, Trade and Industry, Food Supply, State Control, the Supreme Economic Council, and Public Health. Each division consisted of the Commissar and a small number of advisors. The All-Russia Executive Committee appointed the Commissars who then appoint advisors to their board. The appointments then had to be approved by the Executive Committee. In this way a system of checks and balances somewhat similar to the American system was put into effect.

How can a home corner in Key Stage 1 engage childrens communication Essay - 1

How can a home corner in Key Stage 1 engage childrens communication - Essay Example Bell took a practical approach to qualitative observation techniques. I found this really helpful; this gave me a good insight on conducting observation. This also made me aware of how often one should be recording what is happening; she says you have to decide this beforehand. I also become aware of the importance of my spatial position when I’m observing. An observer can never pass entirely unnoticed; one will have to discuss this with whoever is in charge, claims Bell (2005: 189). This chapter has many tips on how to structure your recordings, how to take down field notes, analyse and interpret data as well as preparation is very important, as charts and seating plans have to be prepared. In my opinion this chapter is very relevant to my study; this will help me to successfully carry out my research because now I am quite aware of the possibility of the structured approach to be criticized as being subjective and biased. The chapter also gives ideas on the how important planning is, structured or unstructured observations, criticism of qualitative data, advantages and disadvantages, keeping records, more so your interest in this content, recording, system of categories. In my judgment it was carefully written. This chapter closes with emphasises on incomplete tasks. Observations that have taken place and records that have been made; for instance, if you were observing a meeting and at the end you felt it was inadequate, you would need to analyse the reasons. Furthermore it sums up the important parts that were mentioned in the chapter in a checklist structure. This chapter describes and explains the strong relationship between early years teaching and knowledge about child development. It declares that the relationship between early teaching practices and developmental research is currently an improved domain of

AIG accounting scandal (2005) - Income Statement report Essay

AIG accounting scandal (2005) - Income Statement report - Essay Example hese scandals, postmortem results indicate presence of a creative accounting process, a phenomenon characterized by complex methods of funds redirecting and misuse as well as overstated revenues and improper reporting of expenses and liabilities. According to Roddy (2011, pp 34), the most significant scandal of the last decade involved Tyco, HealthSouth, Enron, WorldCom, and AIG among others. This paper aims at exploring the accounting scandal that affected American Insurance Group in 2005. American Insurance Group (AIG) is a multinational insurance corporation. It is regarded as the World’s largest insurance company with over 90,000 workers and offices in over 130 countries. The company is also involved in other forms of business including aircraft leasing and assets management in many parts of the world. During this time of the scandal, the company was led by Maurice Greenburg, the long-time serving leader, having led the company since 1968. He was named as the person involved in the scandal, and eventually pressured to step down in 2005. The company came under scrutiny first in 2001 after it was realized that a client company had been assisted to strengthen their balance sheet fraudulently. Investigations were started and in 2003, a penalty of $10 Million was passed by SEC to settle the issue. The company’s income smoothing products were investigated in 2004 and a bid rigging complaint filed. Kay (2005) wrote that the company admitted to having conducted improper accounting exercises. When the company finally released the 2004 annual earnings, it was discovered that re-insurance deals with GenRe were not accounted for in the deposits. A restatement of this resulted to a decrease in the earnings by $1.32 Billion. According to Martin and Wesley (2005), several lawsuits were filed against AIG starting with one by the Attorney General concerning misleading accounting which Greenberg dismissed as political war. Others were filed by the federal agency leading to

Strategic Analysis of Lush Cosmetics UK Subsidiary Term Paper - 1

Strategic Analysis of Lush Cosmetics UK Subsidiary - Term Paper Example VRIO analysis is one of such tools that help any organization to analyze their core competencies (Wiklund and Shepherd, 2003). The tangible resources of Lush Cosmetics include their employees, production laboratories, and product packaging ingredients. The employees of the organization are well trained and highly efficient to produce innovative products as per the requirement of the market. Their technologically developed production laboratories give them a competitive advantage. Lush Cosmetic is following green policy in their product packaging procedure by using recycled and environmentally friendly products. Their intangible resources are the innovative product formulas and brand recognition (Marketline, 2008). The products of the organization follow a unique and innovative formulation that helps them to stand out in the market. The uniqueness of their products has earned customer loyalty and positive market reputation for their brands. The ability to recognize consumer preference over the freshness of product and recognize the limitations of natural products in the earth can be counted as their core capa bilities (Ku, 2014). These resources and capabilities provide help to identify their core competencies which include innovative products, environment-friendly business approach, and trustworthiness. The organization has utilized their unique product formulas and the state of the art production facilities to develop natural personal care products for health conscious customers.

Memo and Email Article Example | Topics and Well Written Essays - 750 words

Memo and Email - Article Example Although organizations benefit a great deal from the use of email services for correspondences, there has been a growing concern regarding the misuse of email services, which are proving costly to organizations. Evidences across organizations show that emails are increasingly at risk of misuse by malicious employees. The increased misuse of company emails has seen a rise in employers firing their workers now and then. Current estimate shows that more than a quarter of employers have fired their employees for e-mail misuse. For instance, PNC Bank recently fired Norma Yetsko and Heidi Arace for sending offensive jokes on companys email (Morales 3). The Management of PNC Bank claimed that the two of its employees violated the company policy by misusing the company emails by sending offensive jokes, which were not only defamatory, but also landed the company into a lawsuit. MacDonald Dettwiler Company also fired two of its employees, Nicolas Di Vito and Alastair Mathers for sending offen sive emails depicting the sexual gymnastic of a female co-worker who is overweight. The offensive email resulted in a lawsuit in which the offended woman jointly sued the company and the two employees for defamation (Morales 3). These among other incidences shows how misuse of company email can be costly to a company. In both cases, the email misuse by the employees dented the image of the two companies and resulted in a civil liability. The email risks that happened at MacDonald Dettwiler Company and PNC Bank can happen in any company at any time. Therefore, to prevent the occurrence of email misuse by employees, it is critical for the management to create guidelines that define how emails are used in the organization. Creating email guidelines will be of great benefit to the company since it will ensure that the companys staff uses emails professionally thereby protecting the professional image of the

Scrutinise the concept of secession, with comparative reference to at Essay

Scrutinise the concept of secession, with comparative reference to at least two countries - Essay Example (Premdas 1990:12-31) While occupying the intermediate condition as a protected autonomous entity within an extensively decentralized sovereign state, the movement tends to continue to articulate the desire for a separate an independent destiny with these two goals oscillating between moments of satisfied accommodation and periodic bursts of renewed determination for outright secession. In the end, the objective remains constant - exit completely. (Premdas 1990:12-31) Separatism may be conceived broadly as a quest for autonomous survival either within or without a state; secession strictly speaking is a variant of separatism in which the secessionists seek outright separation and independence in a sovereign state. The quest for self-determination by a community within a plural state is often caught up in upheaval. As an act of territorial and political assertion, a secessionist struggle is usually prolonged, punishing, and prohibitively costly. Furthermore, the logic of the self-determination principle in sanctioning the demand of each people for its own state, embedded doctrinally in the nature of the state as it has evolved, has been the source of territorial fragmentation accompanied with mass expulsions and genocide not merely with the claims of the Third World states after WWII but this has been the case since the French Revolution. There have been waves of self-determination drives ever since the inception of the nation-state as aunit of national and international social organization. With the fall of the multi-ethnic great empires run by the Turks, the Hapsburgs, and the Russians, the cultural fragments sought separate destinies in acts of self-determination. Practically the entire globe was under European imperial control where new states after the European model were engrafted willy nilly on ethnically diverse populations. In these territories, self-determination drives for freedom were enacted one

Identity theft Research Paper Example | Topics and Well Written Essays - 2500 words

Identity theft - Research Paper Example Identity theft involves the use of another individual’s personal information in order to gain access to financial or other information that would serve to benefit the criminal in some way. Identity theft has become an increasing problem globally in recent years, causing millions of people undue emotional, psychological, and physical trauma. In addition to this, the issue has cost society quite a lot of money. The heartache caused has limited access to critical services and denied credit availability to millions of honest and hardworking citizens around the world, and in particular the United States. It is a serious issue that needs to be tackled immediately before spiraling even further out of control. The aim of this study is to discuss the seriousness of the problem and to explore various ways that society can begin to protect itself from the evils of identity theft moving forward. Problem Statement The problem is that identity theft is destroying the financial security and freedom of countless individuals worldwide. As honest people have their identities stole, they are subject to a potential loss of credit access, have difficulty in gaining employment, and they may encounter problems of various sorts with law authorities. Upon becoming a victim, individuals must often hard to prove that their identity was stolen in the first place, often causing a great deal of anguish throughout the process. Governments and other officials across the globe are currently implementing measure to prevent identity theft, but the problem continues to grow exponentially (Adomi & Igun, 2008). The five major types of identity theft in existence today, and that form the basis for this study, are: 1) Criminal identity theft, 2) Financial identity theft, 3) Identity cloning, 4) Medical identity theft, and 5) Child identity theft. This study examines each of these areas in an effort to help the reader understand the warning signs of identity theft and assists them in the avoida nce of becoming a victim themselves in the future. Relevance and Significance of Understanding Identity Theft As has been discussed to this point, identity theft is a serious issue that must be tackled across all segments of society. It affects nearly everyone in our culture, either directly or indirectly. Even if a person is not a victim on their own, they often pay the price for the crime in other ways. An individual who has fallen victim to any of the major types of identity theft often find themselves embroiled in years of turmoil and strife trying to set the record straight. Families can be denied mortgages, criminals set free, and hospital services rendered to people who have no right to the benefits. These are just a few of the ills that can be realized as a result of identity theft. When honest members of society go to utilize certain services, which they are rightfully entitled to, they can quickly that they are denied access because someone else is using their name and per sonal information. It is an unfair burden to be sure, but one which criminal have bought to the forefront of modern reality. For these reasons, it is critical that we understand the issues surrounding how identity theft occurs and how to prevent it moving forward. That reality forms the focus for this study. Criminal Identity Theft Criminal identity theft involves one person committing a criminal act, proceeding to get arrested, and then

Management Planning Paper Essay Example | Topics and Well Written Essays - 1000 words - 1

Management Planning Paper - Essay Example The human resource function‘s main purpose would be to analyze the interviewing, recruitment and appraisal of staff within the company. Southwest’s human resource policy (prior to the acquisition of AirTran) showed that the company hired a low number of staff within its organization; this number was such that Southwest operated with an average of 62 employees per plane as compared to Delta’s 114 employees per plane. On acquiring AirTran, this number gradually increased the number of employees because of the fact that Gary Kelly (CEO of Southwest Airline) did not want to lay off any of the staff of AirTran and make them redundant. The Human resource function would need to get active in this case so as to combine different cultures of the organization concerned. Financial management within Southwest airline would require proper analysis of the financial functions within the organization such as preparing the financial statements, keeping up with the budgets, etc. St rategic management would require proper strategies to be build so as to keep the company growing in the long-run, an example of strategic management within Southwest airline is the decision made by its CEO of acquiring AirTran, Scientific management would involve aspects reading improvement of labor and economic efficiency. It can be identified as the policy of not offering expensive snacks during flights, nil baggage costs, etc (Whelan, 2011). These four departments would need to be linked effectively in order to make any strategy successful. The basic idea would be that the Strategic management department (at the top of the hierarchy of an organization) would make up strategies and communicate them to other departments down the line. Later, these departments would be highly involved in properly understanding and implementing the strategies in such as way that organization’s growth would become the motto of each and every personnel within the organization. Communication with in the department would be made in such a way that knowledge sharing would be appreciated. The Human Resource department would only hire employees based upon the vacant job description i.e. efficient recruitment. The Finance department would be involved in preparing proper budgets and other financial statements for the organization. The strategic management division (which would involve top level employees e.g. CEO, Directors, etc) would be involved in formulating, evaluating and monitoring the policies and procedures within the organization. The four main areas of growth and change for each of the departments mentioned above would be: Human Resource department: i) Proper induction of employees, ii) Proper training for new and former employees, iii) Effective and efficient measure being put up for employee appraisal; iv) Dealing with redundancy issues Strategic Management Division : i) Strategies made should be have long term effect, ii) Company’s objective should be properly considered while such strategies are made, iii) Growth of the division would be possible when experienced directors/senior manager would be hired e.g. experienced non-executive directors, iv) Proper competitor analysis as a basis of not committing error being committed by them Scientific management: i) Proper training, ii) elimination of wastages, iii) learning through

Gothic Style in Britain Essay Example for Free

Gothic Style in Britain Essay Gothic style has been enduring father of architectural design in Britain. Its development was complex and contradictive as it offers extraordinary vision of forms, shapes and angles. Nevertheless, the style has found its recognition. Usually, on distinguishes four major developmental stages of gothic style: Norman Gothic dated 1066-1200; Early English Gothic dated 1200-1275; Decorated Gothic dated 1275-1375; and, finally, Perpendicular Gothic dated 1375-1530. The term ‘gothic’ originated in France and was often referred to as the philosophy of architecture. Speaking about characteristics of gothic style, it is necessary to admit strong vertical lines, minimal wall spaces, high vaulted ceilings, buttressed walls and pointed door openings(Ross 2005). For the first time British architects became interested in gothic style during the Norman Gothic period or, in other words, during the Norman Conquest. That period brought Gothic style to life. Nevertheless, during that period British style was similar tot hat of the rest in the Europe and it hasn’t yet found distinguishing character. Designs of buildings were transitional as many of them were still provided with thick piers and rounded windows which were inherent to Romanesque style. Decoration and vaulting were simple and little sign of elaborate stonework was observed. Nevertheless, that period was the foundation of original British gothic style being so popular even today. Famous examples of that period are Wells Cathedral, Durham Cathedral and Ely Cathedral(Mahoney 1995). During the Early English period English architects had managed to truly adapt peculiarities of gothic style. Actually, that period was called ‘Lancet’ due to pointed lancet windows. Proportions were still magnificently simple, as well as the forms were still austere. The main points of early gothic style were lancet windows, slender towers, narrow shafts, and quadripartite ribbings in vaults. The best known example of early gothic style can be seen at Salisbury Cathedral(Frankl 1962). The third stage of gothic development was Decorated Gothic period being characterized by fanciful tracery and window ornamentation. New feature was that windows became wider than lancet ones. Invention of flying buttress contributed significantly development of gothic style as it became possible to provide widening or lessening in wall areas naturally. Furthermore, vaulting techniques improved and was much of help in supporting weight off the walls. The wall became little more than sells with decorated window openings. During that period architects became interested in stone decoration which was varied and rich. Moreover, window glass became more colorful and vivid. Designs were marked by stone carvings and paintings. One of the famous examples of Decorated Period is Exeter Cathedral(Harvey 1990). Finally, Perpendicular period was characterized by strong vertical lines in wall paneling and window tracery. The style became more functional. Flying buttress was provided with decorative features and vaults were elaborate fan shapes. British towers became decorated elaborately – they became massive and ‘traceried spider-webs of stone like lace’. Distinguishing features of that period were minimum wall space which entailed the viewer with the feeling of spaciousness and light. Kings College Chape and Henry VII’s chapel at Westminster Abbey were built in Perpendicular style(Ross 2005). It is necessary to underline that gothic style never really died in Britain after the medieval period. During 17th and 18th centuries gothic styles was still present despite popularity of classical themes which were ruled only by fashion. For example, gothic elements were added to Christopher Wren’s London churches to make them look older. In the end of the 18th century Batty Langley opened school of romanticized Gothic architecture which became popular design of domestic buildings. Finally, in the beginning of the 19th century gothic style was proclaimed to be more suitable to university buildings and churches: King’s College and Bridge of Sighs at John’s college(Frankl 1962). Bibliography Frankl, Paul. (1962) Gothic Architecture. Baltimore, Penquin Books. Harvey, John. (1950) The Gothic World, 1100-1600: A Survey of Architecture and Art. London, B. T. Batsford. Mahoney, Kathleen. (1995) Gothic Style. UK, Harry N. Abrams. Ross, David. (2005) Gothic Architecture in England [Internet]. Available from: http://www. britainexpress. com/History/Gothic-architecture. htm [Accessed 14 February 2008].

GEs Talent Machine: The Making of a CEO | Analysis

GEs Talent Machine: The Making of a CEO | Analysis This assignment will critically evaluate BARLETT and MCLEAN GEs Talent Machine: The making of a CEO and Prokeschs How GE Teaches Teams to Lead. It will the lessons that can be learnt from General Electric (GE) and apply them to my organisation. GE is currently listed the 3rd largest business in the world (Adams, 2012), it is also ranked in the top 20 for other awards such as best company for leaders (Fig 1). GE operates globally in four areas: Technology Infrastructure, Energy, Capital Finance and Consumer Industrials. To understand GE a S.W.O.T analysis was undertaken (Fig 2), Stewart, Fletcher Barrett (SFB) is a small Nuneaton based business. Originally a firm of accountants, they now provide business services in Wealth Management, Human Resources and Marketing. With recent growth they now are opening a third office in Coventry. GEs Talent Machine: The making of a CEO Literature Review GE has always excelled over its competition, one is their ability to develop and uphold quality managers. Forbes showed that GE is the worlds best companies for leaders beating the likes of IBM and Microsoft. (Anonymous, 2012 ). What led GE to produce talented leaders was the emphasis they forced into developing quality leaders. GE has appointed twelve CEOs since Edison and many of them have contributed to management development which has helped GE to successfully maintain its growth in revenue and profit. Coffin, who succeeded Edison, devoted 20 years to creating a meritocracy within the organisation to reward employees promotions based on performance. In 2003, Coffin was named The Greatest CEO of all time by Fortune magazine (Collins, 2003). This went onto become the foundation of GE which went on to make GE a CEO factory. When Cordiner came into power, he thought it was best to decentralise GE, this increased the company management efficiency. Reg Jones increased the development of managers by strategic planning to a more formal structured approach, this served as an upgrade to Session C and the EMS reviews. When Welch took charge introduced the Work Out initiative which saw employees (over 200,000) meet for three days to discuss how their individual area of work could be made more efficient. Analysis The main reason for GEs constant business success is they use human capital as a competitive advantage, this combined with continues improvements in the training and development of staff created a culture for success. GE maintain being a revolutionary organisation; by hiring from within GE and always looking out for new management talent. The following points were analysed: Human Resource Management for Growth GE had devoted to a HRM Strategy by implementing new procedures and policies. This enabled them to uphold a healthy and vital pool of new managers. Butler (1988/89) identified this as a HR-driven model (Fig 4) which identifies HR as being the driving force to achieve business targets. Coffin who created a meritocracy-based culture used a well defined succession management process which became part of the GE culture. This process put performing employees in lower management positions, in a variety of industries. This was seen as a more Holistic model (Fig 4), which Torrington, D et al (2008) described this being where people of the organisation are recognised people as the key to competitive advantage rather than just the way of implementing organisational strategy. This process gave individual a defined career path, and clear goals, which in turn intrinsically motivated them as they could see their progression within the company. This particular performance oriented culture was extremely tough to uphold and apply in each business; however it shows the commitment GE has towards their human capital. Immelt concurred this by saying Unless you are really dedicated to a whole system, it doesnt work. (Barlett, C and McLean, N, 2006). Communication Even due to GEs size it could maintain uninterrupted communication with managers; this was helped by their clear structure that Cordiner had implemented. Immelt added additional channels of communication, such as conference calls and forums. This allowed employees from different industries around the world connect with ease. Recommendations The Vitality Curve The vitality curve is a rankings-based system and is now considered by GE employees to be apart of the companys meritocracy based culture. This is controversial to outsiders and complicated, relying on faultless incorporation of employee feedback, training and coaching. GE lost employees from the 70% range (Fig 3) to other companies such as the BankAmerica who had successfully recruited over 90 GE employees. Making the rankings more flexible would allow B Players to feel valued thus reducing de-motivation and increasing output. Immelt should consider expanding the top level or introducing an additional band of classification so that A Players are differentiated from B Players. GE should also consider a system of reward to all individuals achievement of the business; this will make majority of employees feel more rewarded for their efforts and also increase retention. Recruitment Immelt should focus on more international recruitment targeting the likes of Europe and Asia. Since 40% of GEs revenues are generated offshore this would also reduce the companys dependence in American for talent. GE can attract candidates by offering graduate programmes. GE previously had problems with MBA turnover in previous years, and similar issues offshore can be avoided if GE emphasising on its reputation as develop management talent. This would bring positive diversity to the business. Cameron K, 2011, states there are three types of positive outcomes; intergroup equality, positive intergroup relations and positive group outcomes. Executive Brands Having seven executive bands causes employees, particularly in international locations, to believe that promotional opportunities were limited. In business cultures such as India, status is highly valued. To them this would be a psychological reward, this is a process that reinforces behaviour something that, when offered, causes a behaviour to increase in intensity (Wilson, T. 2003). GEs should think consider adapting to provide employees with psychological reward and also acknowledgment in these areas of cultural variation. What has been learnt? GE has pioneered the business world and human resource methods. For GE to survive it must uphold its flexibility. GE recruiting and human resource approach needs updating as it has been the same for many years and hasnt evolved with the times. The change GE has gone through has been successful and unsuccessful in the following ways: Meritocracy GE staffs are still motivated intrinsically by results, goal setting and promotions, due to employees having common goals it caused a team working environment. Tuckman describes this stage as the performance stage, this is described as when the team share pride in what they are doing, they focus on the objectives and enormous energy occurs in completing the task. (Clayton, M, 2009) The vitality curve This is apart of the GE culture and Welch decided the best way to retain the staff that were leaving GE (the 70%) was to support people to strive to be in the top 20%; he did this by adding motivating factors which include aspects of the working environment such as rewards, training and also praise, supervisory practices. (Herzberg F, Mausner. B, 1993) Recruiting GE has always relied on internal talent to fill positions. Immelt recently hired externally when an internal candidate could not be found, hopefully this shift will open up GE to a much wider variety of talent which can have a positive effect on GE. Research by OReilly, Chatman Caldwell (1991) shows that new hires whose values fit well with the values of the organization and culture tend to adjust more quickly, feel more satisfied, and remain with the organization longer, this causes satisfaction increases, turnover is reduced and people are more productive. Communication Without effective communication on all levels GE would not be able to implement the changes it has go through such as reducing to seven executive bands and also implementing new business strategies. Immelt understood how vital effective communication was to the growth of the company in a global marketplace, and how it kept employees connected without geographic boundaries; this gave employees high levels of involvement with their jobs, made them more accessible and also made communication more effective. Executive Bands GE was going through a lean journey this is described as maximizing customer value while minimizing waste. Simply, lean means creating more value for customers with fewer resources (Beker, I. 2011). Reducing the 29 PLs was vital in saving money the cost saving opportunity was somewhere between $7 billion and $10 billion (www.pqa.net). The impact it had on the hierarchy resulted in their being less promotional opportunities which then effected the India as they were accustomed to promotions and the emphasis on job titles. This lean journey caused a lot of change which can distress employees; However Welch backed the Six Sigma program up with a strong rewards system to show his commitment to it which attracted GE employees attention. Conclusion For over a decade GE has led the industry, not only as a successful profitable organisation but also as an innovator. In this time, GE has shown its self to be flexible in identifying business opportunities (such as acquisitions) but also with a strong human resource dedication. By being the leader in innovation, GE isnt able to look at its competitors for guidance they must solve potential issues head on and alone. As the market is an ever changing environment they must continue to develop their staff and improve from within looking at gaps and development in its Human capital. How GE teaches teams to lead Literature Review In September 2006 GE launched Leadership, Innovation and Growth (LIG) program which ran for the next two years, the purpose of LIG was to make innovation and growth apart of GEs culture as Six Sigma had been under Jack Welch. Prokesch underpinned five principles that made the LIG at GE successful. (Fig 5) The following shows what the management team at GE Power went through at LIG training. Before attending the LIG, they were asked to assess three areas, they would updated their 3 year strategy, it would conduct a 360 review on its growth values and finally it they assessed creating innovative There scores were collated and given back to the managers at the intervals. The first step in training was to identify barriers, these included things such as identifying the levels of risk taking, idea support, involvement, conflict and debate. These barriers were discussed during intervals throughout the 4 days. In the first interval the team learnt their actual team scores for the 360 degree review of their growth values. This automatically made them reassess almost every part of their business. This also triggered the team to ask questions such as Were not as good at anticipating major trends as we ought to be and Is solar a good place to be? This time to reflect then generated insights in to their business Does GE not understand Government Policies This constant evaluation became an ongoing occurrence after each internal with the mangers constantly adapting and evolving their thought process. Analysis Transformational leadership is, according to Northouse, a process that changes and  transforms people. It is concerned with emotions, values, ethics, standards, and long-term goals and includes assessing followers motives, satisfying their needs, and treating them as full human beings. A transformational leader stimulates the followers by setting challenging goals and offering them support and motivates them to share the same vision and goals as the company (Bass and Riggio, 2006,). This was shown when the mangers were shown their scores and they had to reassess this motivated them as they asked themselves questions such as Were not as good at anticipating major trends as we ought to be. Northouse, 2007 suggests The Transformational Leadership Model only exists when these 4 factors are present: Factor 1: Idealised influence. This reveals the importance for high standards of morality and strong ethical conduct among leaders (Northouse, 2007). This concept is about leading by example. LIG did not present concepts related this, Instead, leaders and their departments were heavily monitored for demonstrating these behaviours prior to attending the training (Prokesch, 2009). The screening included variables that measured the leaders skill to grasp conflict, empower group members to try new approaches with their work, encouraging open communication and trust, and challenging group members in their work. Factor 2: Inspirational Motivation Here leaders inspire and motivating individuals through words and actions of encouragement (Northouse, 2007). The leaders learned the value for creating excitement and building loyalty and commitment among group members through individual attention. The training specifically included consideration for empowering and encouraging employees to experiment and develop new skills. Factor 3: Intellectual Stimulation Here leaders ability to motivate followers and the leader to challenge their values. LIG encouraged leaders to develop relationships and encourage honest conversations (Prokesch,2009). Trust and openness were valued traits presented to leaders in the training which were consistently measured over time. Factor 4: Individualized Consideration The LIG course encouraged leaders in specific departments to consider relationships among its followers; it also looked how leadership is provided to followers across a period of change. Fundamentally, transformational leadership focuses on the ever-changing relationships between leaders and followers (Northouse, 2007). The training also encouraged leaders to assist followers to become leaders in their own respective industry. Conclusion GEs alignment with the factors in the model suggested that many effective features existed in the LIG leadership-training course. The Transformational Leadership Model used in this study suggested that the combination of the four factors resulted in performance beyond expectations. The findings determine that the organization encouraged and trained leaders to demonstrate and use behaviours, tools, and techniques proven to be effective in leadership. Northouse (2007) presented substantial evidence in transformational leadership that had found the transformational leadership factors to be effective elements in leadership. This also meant that performance was seen by way of satisfaction and motivation among subordinates. The findings suggest that the LIG training course offered to leaders at GE effectively trains leaders I encouraging performance among group members.

Process Essay - How an Aerosol Can Works -- Expository Process Essays

How an Aerosol Can Works   Ã‚  Ã‚  Ã‚   At one time or another, most of us have probably used an aerosol can.   With just a push of the button, we easily and quickly apply just the right amount of furniture polish, bathtub cleanser, or underarm deodorant.   It is obvious to us that the aerosol can is more convenient than the old-fashioned jars of liquid polish or cans of powdered cleanser, which can spill or be applied too thickly.   At the same time, however, most of us probably do not know how the aerosol can works.   We accept its ease and convenience without realizing that the aerosol can is quite a complex container.   Ã‚  Ã‚  Ã‚   An aerosol is not a simple cleaner or polish; it is a colloidal system.   That means it consists of finely divided liquid or solid particles, called a product, dispersed in and surrounded by a gas.   The most commonly used gases, or propellants, are chlorinated hydrocarbons, butane, propane, isobutane, vinyl chloride, and nitrogen.   Nitrogen is used particularly for products when the taste or smell of the propellant is not desired in the product, for ex...

censorhf Censorship of Huckleberry Finn :: Adventures Huckleberry Huck Finn Essays

Censorship of Huckleberry Finn      Ã‚  Ã‚   As parents, it is important for you to know what information your child receives, especially in the learning environment of a classroom. The thought of your child reading a racially offensive book is unacceptable. Some people find Mark Twain's The Adventures of Huckleberry Finn racially offensive. If you as parents perceive this book to be offensive, it may lead some of you to request that teachers and administrators not allow students to read this book in school. I ask that you consider other options before taking this action. The actual reasons for the censorship of Huckleberry Finn depend on many other factors: fear of uneducated or insensitive teachers leading student discussions, school administrators who wish to avoid controversy and discomfort with acknowledging our country's painful history.    What some people find offensive about this story is the language Huck Finn uses. In the story, Huck often refers to Jim as a "nigger," which some groups find unnecessary and reprehensible. In the minds of administrators and teachers, there is an easy solution by using less-controversial books. John Wallace, a school superintendent, writes, "Pejorative terms should not be granted any legitimacy by their use in the classroom under the guise of teaching books of great literary merit, nor for any other reason" (18). Why are we afraid of these "pejorative terms," instead of explaining to students what they mean and why white people used to use them to address African-Americans? Yet instead of finding out why we worry if the children read a derogative term used commonly over a century ago, we ignore the subject and pat ourselves on the backs for saving children's minds. Huckleberry Finn addresses topics dealing with race which are still relevant today. We cannot expect to solve the racial problems today by banning literature that deals directly with these issues. Twain writes about a friendship between a slave and a white youth; he demonstrates the lack of reason behind racist thought. These topics are not harmful to African-Americans, and if taught correctly, can be a positive learning experience.    Instead of addressing these issues, administrators often remove the controversial book from the class reading list and replace it with another book. Former Justice William Douglas is noted for his concern with First Amendment freedoms on the Supreme Court. He writes, "The First Amendment does not say that there is freedom of expression provided the talk is not 'dangerous'.

Should Euthanasia be Legalised Essay -- Papers

Should Euthanasia be Legalised This essay will explore several different and varied opinions about whether or not euthanasia should be legalised. Euthanasia is the Greek word for easy death, but is often referred to as mercy killing. There are two main forms of euthanasia. Voluntary euthanasia is when a terminally ill patient expresses the wish to be euthenised. Active euthanasia is when a Doctor decides that it is in the best interest of the patient to be euthenised. All forms of euthanasia are illegal in Great Britain; however in Holland, Switzerland, Oregon in the U.S and the northern territories of Australia, voluntary and assisted euthanasia has been legalised in recent years. Firstly most Religious groups are opposed to euthanasia, because it is seen as murder. Christians and Jews in particularly are against euthanasia because in 'the ten commandments' it is written that 'you must not kill'. In the Torah and the Bible it also reads that humans are created in the image of God and in the Bible it also reads that Jesus died to save us. Christians and Jews base their views on euthanasia on these things in particular because they believe that only God has the right to decide when to end a life. On the other hand the Roman Catholic Church is of the Christian faith but they do have a slightly different opinion. Although they are very pro-life, they do not believe in pro-longing life by treatment which will prolong suffering. However the government is concerned that if euthanasia were legalised then the amount of suicides in our country will rise considerably. This has not been entirely proven in the few countries that have ... ... of himself administering a lethal injection to a terminally ill man who wished to die. In conclusion I believe that voluntary euthanasia should be legalised because if you have a very poor quality of life then you should be able to have the right to end it. I agree with the Roman Catholic opinion that there is no need to prolong life by treatment which will only prolong the suffering. I also think that only Doctors should be allowed to assist with euthanasia, otherwise euthanasia may be used lightly when it is not necessarily the only option. Until euthanasia is legalised there will continue to be unnecessary arrests of people who thought that they were helping, by euthenising terminally ill people who had little or no chance of ever recovering from their illness, and may have had to suffer for a great deal longer.

Literary Genre Essay

What is Literature? Language Department IPGK Pendidikan Teknik Based on your experience learning literature, what is literature? What are the characteristics of literature? Do you need to learn literature? †¢? Traditionally, literature is â€Å"imaginative† writing. †¢? However, the distinction between â€Å"real† and â€Å"fake† or â€Å"fact† and â€Å"fiction† isn’t always a good distinction; many classical works were non-fiction. Literature is Subjective †¢? Since the 1980’s, the â€Å"literary canon† of works – a group of works â€Å"agreed upon† to be â€Å"the best† by well-known scholars and critics, has been disputed. Why do you think the â€Å"canon† was disputed? †¢? The â€Å"Canon† excluded most works that were not by white, European males. †¢? Works of literature by women, homosexuals, and works by individuals of varied races, classes and ethnicities were marginalised. How did this happen? †¢? There are many ways of â€Å"writing† – but those in power recognised only one, formal way of â€Å"writing†, and this was given the higher value. †¢? Thus, the literary â€Å"canon† is a construct; it was fashioned by particular people for particular reasons at a particular time. †¢? There is no literary work or tradition that has value in and of itself †¦ †¢? †¦. even Shakespeare! †¢? In his era, Shakespeare was regarded as a hack! †¢? Time and circumstance has offered the value to particular text; and this â€Å"value† is a transitive term – it will change as the people in power change and are altered, and according to the context of the reading of a particular text. 10 years ago †¦. †¢? BLOGS were stupid. †¢? NOW, Iraq War Veterans’ BLOGS are considered vital historic and â€Å"literary† documents! Revisioning the Canon: †¢? All â€Å"literary† works are unconsciously rewritten by the societies that read them. Context †¢? Readers interpret literary works in the  light of their own concerns. †¢? Readers interpret literary works in the light of a given circumstances. †¢? Readers interpret literary works in the light of a given time period. The Diary of Anne Frank: †¢? Literature? Or Not? I Have A Dream: †¢? Is this speech by Martin Luther King, Jr. Literature? Or Not? Literature and â€Å"value† †¢? Each of us is constructed by experiences and backgrounds and emotions and ideas and prejudices and knowledge and lack of knowledge †¦ †¢? How we each respond to a particular text is deeply entwined with our broader prejudices and belief systems. Basic Definition of Literature †¢? Latin – litterae (plural for letter) †¢? Literally means â€Å"acquaintance with letters† Why Do We Study Literature? †¢? To obtain a window of the world and other cultures. †¢? To understand ourselves (how? ). †¢? To gain insights into a character’s inner thoughts, con? icts, aspirations etc. †¢? To actively shape culture through the active and articulate constructions of sociocultural realities. So †¦ what is literature? †¢? What constitutes a â€Å"literary† text? †¢? What qualities will help me to determine the â€Å"literariness† of a text? †¢? Read â€Å"What is Literature† by Jim Meyer for our class discussion this Thursday.

Barilla Spa Case

Barilla SpA Case Table of Contents Executive Summary2 Issues Identification3 Environmental and Root Cause Analysis3 Alternatives or Options4 Recommendation and Implementation5 Monitor and Control6 Conclusion6 Executive Summary Barilla’s high stock out rates along with large average inventory numbers are the main reasons why Maggiali is looking to continue on with Vitali’s dream of implementing the Just In Time Distribution system. However, faced with great external resistance to its introduction, Magialli must look to top management to hop on board and facilitate its acceptance among all partners in the supply chain. Using internal distributors as experiments will allow Barilla to showcase better stock out and inventory results. By doing so, Barilla can gain the acceptance and approval of other distributors. With everyone participating in the JITD, Barilla will be better able to forecast demand and not over react to movements at the consumer level. Issues Identification Giorgio Maggiali, the current director of logistics for Barilla SpA, faces much resistance when he tries to implement a new manufacturing concept called Just-in-Time Distribution (JITD). Initially, this idea was proposed by the prior director, Brando Vitali, but is heavily supported by Maggiali as well. Because of the existing structure in the organization, fluctuations in demand at the end-user/customer level cause the whole system to react adversely. The result is an excess â€Å"safety stock† at all levels of the supply chain, leading to extra costs. This is commonly referred to as the â€Å"bullwhip effect. † Due to the resistance Maggiali faces, he must make a decision on whether or not the JITD is feasible for Barilla SpA and how to implement it with the unsupportive partners in the supply chain. Environmental and Root Cause Analysis The first concept we must understand is how significant pasta is in Italy. â€Å"Per capita pasta consumption in Italy averaged nearly 18 kilos per year, greatly exceeding that of other western European contries. † (pg. 2, Barilla SpA case study) Due to its dominance in the food market, consumers are very aware of price fluctuations and which pastas are â€Å"on sale. † Because of this, forecasting consumer demands is a vital component of the JITD. Without it, the traditional way of order-filling leads to common stock outs and excess inventory throughout the year. Because of the process pasta is made, Barilla cannot simply change its production on a whim. Its production plant must keep the kiln’s humidity and temperature at precise specifications for different types of pasta. As a result, sequential production is optimal to keep downtime and costs low for pasta manufacturing. The JITD was developed to address issues such as stock outs and to make inventory levels more manageable due to better forecasting. It will also allow Barilla to make the production and inventory decisions from a top down perspective rather than bottom to top reactionary chain (bullwhip effect). As shown in the Sales and Stock outs Chart at the Cortese Northease Distribution Centre (Exhibit 13, Barilla SpA Case study), stock outs are a regular occurrence due to the fluctuations in sales throughout the year. The main resistance from Barilla comes from sales and advertising. â€Å"Barilla’s sales strategy relied on the use of trade promotions to push product into the grocery distribution network. (pg. 6, Barilla SpA case study) It is with these sales that enable sales representatives to meet their target goals. If Barilla decides to implement the JITD, the need to push sales for the Distributors would cease to exist. Essentially, Barilla will be replacing sales by deciding how much inventory to stock each distribution centre with. It is quite clear that the sales department fears this system due to job secu rity issues. The external resistance plays a large factor in why Maggiali is unable to introduce the JITD. There are many unconvinced distributors that are unwilling to share their warehouse data. Also, they perceive that Barilla is trying to take power away from them (DC purchasers), and since they do not know too much about the JITD, they have a lack of faith in Barilla’s inventory management. Alternatives or Options Barilla can choose to forgo implementing the JITD and avert any risk in inter-department conflicts. By doing so, they save on any related costs to introduce the system. However, as Barilla expands, so does their manufacturing and distribution. The problem will continue to escalate as more inventory is pushed through the supply chain. Barilla’s other option is to continue pursuing the JITD which can benefit both the manufacturing and distribution process by reducing stock out rates and lowering inventory levels for the DCs. By lowering inventory levels, the DCs will be able to focus on obtaining more retailers so that they can increase the amount of inventory to be stored in the extra warehouse space. Barilla Pro and Con Comparison Table |Pro |Con | |Forgo JITD |Maintain relationships |Previous costs to develop JITD are lost | | |Save initial setup costs |Inventory problem is not fixed | | |Stick with what Barilla knows |Inventory costs continue to rise | |Implement JITD |Better forecasting |Major resistance/lack of cooperation | | |Lower stock outs | | | |Increased inventory space for DCs | | Recommendation and Implementation It is recommended that Maggiali continue pursuing the JITD due to the fact that the inventory management problem will only worsen as the company’s sales increases as well. However, Maggiali must find other ways of implementing the system rather than force distributors to adhere. Firstly, Maggiali must demonstrate that JITD benefits the distributors. Running an experiment of the system at one or more of the distributor’s sites gives other distributors an example to compare to. Once other distributors see what the system can do for them, they may be more willing to participate. A proposed idea would be to run this experiment through an internal distributor. Doing so will prompt less or no resistance and can be monitored closely. Secondly, Maggiali needs to involve top management so that JITD is not just a logistics issue. Having a company wide effort allows all members to participate and as a resuly, less resistance will be observed. Thirdly, since the distributors may think that Maggiali is trying to obtain power over them, Barilla can bring in a third party consultant trusted by both groups to perform an analysis to determine if in fact, the JITD is beneficial for all participants. Monitor and Control In order to determine if the JITD is advantageous over the old system, Barilla will be monitoring stock out rates and average inventory levels hroughout the year. If the results show positive results over previous data, a move should be made to communicate the benefits of the JITD to more distributors. Stock out rates and inventory levels for those distributors should also be collected to increase and confirm the effectiveness of the system. Conclusion By using an internal distributor to as an example, involv ing top level management, and recruiting a third party consultant, Barilla will be able to introduce the JITD system with very little resistance. The top down approach for Barilla’s supply chain will benefit all levels due to increased efficiency in inventory management. As a result, savings will be realized and passed down from manufacturer to consumers. In order to monitor success and build upon it, stock out rates and inventory levels will continue to be observed to determine optimal production and distribution of Barilla’s products. With this system in place, the bull-whip effect that is currently experienced, will be countered by the JITD’s ability to forecast consumer demand.

Access Control Essay

In this scenario, the fitness club was hacked from an unknown source. The fitness club has contracted Malcom Testing Solutions to do penetration tests and find any vulnerabilities along with make some security changes to prevent this issue from happening again. The security policies need to be changed as far as account management. For starters, the security policies for account management need to be updated. The user’s password needs to changed every 90 days. Any employee that has remote access should have a token key on a USB drive that provides the user’s credentials. When an employee retires, quits, or gets fired, they accounts should be locked until IT administrators can go through the account. If the employee had a USB token for remote access, it should be taken back by the IT personnel to prevent unauthorized remote access. Penetration testing should be done to test the network for vulnerabilities. There are several types of penetration testing. â€Å"An automate d port based scan is generally one of the first steps in a traditional penetration test because it helps obtain a basic overview of what may be available on the target network or host. Port based scanners check to determine whether a port on a remote host is able to receive a connection. See more:  First Poem for You Essay Generally, this will involve the protocols which utilize IP (such as TCP, UDP, ICMP, etc.), However, ports on other network protocols could be present as well dependent on the environment (for example, it’s quite common in large mainframe environments for SNA to be in use). Typically, a port can have one of two possible states: open – the port is able to receive data and closed – the port is not able to receive data. A service based vulnerability scanner is one which utilizes specific protocols to communicate with open ports on a remote host, to determine more  about the service that is running on that port. This is more precise than a port scan, because it does not rely on the port alone to determine what service is running. For example, a port scan may be able to identify that TCP port 8000 is open on a host, but it will not know based on that information alone what service is running there. A service scanner would attempt to communicate with the port using d ifferent protocols. If the service running on port 8000 is able to correctly communicate using HTTP, then it will be identified as a web server. Lastly, banner grabbing is the process of connecting to a specific port and examining data returned from the remote host to identify the service/application bound to that port. Often in the connection process, software will provide an identification string which may include information such as the name of the application, or information about which specific version of the software is running.† (â€Å"Vulnerability Analysis,† 2014) After the penetration testing, the system can be updated to mitigate any vulnerabilities that were found. Firewall changes, IP addresses can be allowed or denied, and software updates are some simple changes that can be made to make a network system more secure. References Vulnerability Analysis. (2014, August 16). http://www.pentest-standard.org/. Retrieved from http://www.pentest-standard.org/index.php/Vulnerability_Analysis

ACCOUNTS RECEIVABLES MANAGEMENT Essay

Chapter-V Accounts Receivable Management †¢ Introduction †¢ Goals of Receivable Management †¢ Credit Management †¢ Optimum Credit Policy †¢ Credit of Account Receivable 155 Introduction Accounts receivable represent the amount due form  customers (book debts) or debtors as a result of selling goods on credit. â€Å"The term debtors is defined as ‘debt’ owned to the firm by customers arising from sale of goods or services in the ordinary course of business.† The three characteristics of receivables the element of risk, economic value and futurity explain the basis and the need for efficient management of receivables. The element of risk should be carefully analyzed. Cash sales are totally riskless but not the credit sales, as the same has yet to be received. To the buyer the economic value in goods and services process immediately at the time of sale,  while the seller expect an equivalent value to be received later on. The cash payment for goods and services received by the  buyer will be made by him in a future period. The customer  from whom receivables or book debts have to be collected in  future are called Trade debtor and represent the firm’s claim on assets. Receivables management, also termed as credit management, deals with the formulation of credit policy, in  terms of liberal or restrictive, concerning credit standard and credit period, the discount offered for early payment and the 156 collection policy and procedures undertaken. It does so in such a way that taken together these policy variables determine an optimal level of investment in receivables where the return on that investment is maximum to the firm. The credit period extended by business firm usually ranges from 15 to 60 days. When goods are sold on credit, finished goods get converted  into accounts receivable (trade debtors) in the books of the seller. In the books of the buyer, the obligation arising from credit purchase is represented as accounts payable (trade creditors). â€Å"Accounts receivable is the total of all credit extended by a firm to its customer.† A firm’s investment in account receivable depends upon  how much it sells on credit and how long it takes to collect receivable. Accounts receivable (or sundry debtors) constitute the 3rd most important assets category for business firm after plant and equipment and inventories and also constitute the 2nd most important current assets category for business firm after inventories. Poor management of accounts receivables are: neglect of  various overdue account, sharp rise in the bad debt expense, and the collection of debts expense and taking the discount by customers even though they pay after the discount date and  even after the net date. Since accounts receivable represent a sizable  investment on the part of most firms in the case of  public enterprises in India it forms 16 to 20 per cent of current assets. Efficient management of these accounts can provide  considerable saving to the firm. 157 Factors involving in Receivable management: 1. The terms of credit granted to customers deemed creditworthy. 2. The policies and practices of the firm in determining which customers are to be granted credit. 3. The paying practices of credit customers. 4. The vigoir of the sellers, collection policies and practice. 5. The volume of credit sales. Goals of Receivable Management The basic goal of credit management is to maximize the  value of the firm by achieving a trade off between the liquidity (risk and profitability). The purpose of credit management is not to maximize sales, nor to minimize the risk of bad debt. If the objective were to maximize  sales, then the firm would sell on credit to all. On the contrary, if minimization of bad debt risk were the aim, then the firm would not sell on credit to anyone. In fact, the firm should manage its credit in such a way that sales are expanded to an extent to which risk remains  within an acceptable limit. Thus to achieve the goal of  maximizing the value, the firm should manage its trade credit. The efficient and effective credit management does help  to expand sales and can prove to be an effective tool of  marketing. It helps to retain old customers and win newcustomers. Well administrated credit means profitable credit accounts. The objectives of receivable management is to  promote sales and profits until that point is reached where the 158 return on investment is further funding of receivables is less than the cost of funds raised to finance that additional credit. Granting of credit and its management involve costs. To  maximize the value of the firm, these costs must be controlled. These thus include the credit administration expanses, b/d  losses and opportunity costs of the funds tied up in receivable. The aim of credit management should be to regulate and  control these costs, not to eliminate them altogether. The cost can be reduced to zero, if no credit is granted. But the profit foregone on the expected volume of sales arising due to the extension of credit. Debtors involve funds, which have an opportunity cost. Therefore, the investment in receivables or debtors should be optimized. Extending liberal credit pushes sales and thus  results in higher profitability but the increasing investment in debtors results in increasing cost. Thus a trade off should be sought between cost and benefits to bring investment in  debtors at an optimum level. Of course the level of debtors, to a great extent is influenced by external factors such as industry norms, level of business activity, seasonal factors and the  degree of completion. But there are a lot of internal factors include  credit  terms,  standards,  limits  and  collection  procedures. The internal factors should be well administered to optimize the investment in debtors. 159 Credit Management In order that the credit sales are properly managed it is necessary to determine following factors: 1. Credit Policy 2. Credit Evaluation of Individual Buyers 3. Credit Sanction Decisions 4. Control and Monitoring of Receivables Credit Policy The first stage of credit sales is to decide policy in which most important variable is whether credit sales should be made or not and if yes to what extent i.e. what percentage of sales should be done on cash and what percentage on credit. The  discussion with cement companies marketing and financà ©Ã‚  department clearly suggest that the credit policy is more  dependent upon market forces and less on company specially  in periods when there is excessive competition which has  happened a number of times in the history of cement industry after decontrol and manufactures have been forced to provide credit if they wanted full utilization of capacity. If in the market there is practice of providing credit, those companies who do not fall in line have lower sales and so lower utilization of instilled capacity. The management has to weigh whether it  should avoid risk of realization and problem of arranging  funds for larger sales on credit or decide for reduced capacity util ization thereby resulting in higher cost per tonne of cement produced. 160 Actually the policy should be based on cost benefit  analysis of these factors but often policy is decided without detailed calculations. In actual practice when one waits to push sales the marketing department pressurizes the management to provide liberal credit to buyers to realize sales targets. Credit Rating The second virtual point of credit policy is to whom to give credit and whom it should be denied. Whether it should be given to everyone or on selective basis? As per standards one can workout impact of credit sales on profits by following formulae: ∆P = ∆S (1-V) – K * ∆I – B, ∆S in the above formula ∆P = Change in profit ∆S = Change in sales V = Ratio of variable cost to sales K = Cost of capital i.e. interest cost of credit ∆I = Increase in receivables investment B = Bad debts ratio on additional sales The change in profits (∆P) is dependent upon ratio of variable cost and fixed cost and change in sales. The figure is worked out by deducting variable cost from sales i.e. sales  minus variable cost is change in profits. The above formula appears to be very simple but for  policy purposes it requires that policy maker should be able to estimate precisely the impact of credit on sales value, the  variable cost and bad debts besides the cost of capital. In practice besides the cost of capital, it is very difficult to measure extent of increase in sales as a result of credit and it is only broad estimate of sales department. Similarly, it is very difficult if not impossible to workout likely bad debts. The variable cost can be worked out with great precision if proper costing system is maintained. Because of difficulties in  quantifying various variables in the formulae often credit  policy is decided without working details on prevailing market conditions and the need of the company to push sales at a point of time. It has been by various companies that no details are worked. Credit Period The credit period is the time length for which seller agrees to provide credit to the buyers. It varies according to the practice of trade and varies between 15 to 60 days. In some  cases for an early payment pre-agreed discount is given to  induce buyer make an early payment. For late payment in the  agreement there is provision for interest payment by buyer. If credit is given for longer period it induces to push up sales but this is true only when one provides longer period credit than competitors. The customer-distributor, dealer, consumers is attracted to a firm who provides longer period credit. The impact of credit on profits and sales can be worked out from the following formula: ∆P= ∆S (1-V)*K*∆1-b, ∆S The various components are as under : 162 ∆ P= Change in profit ∆ S= Change in sales ∆ 1= Change in investments receivables V= Ratio of variable cost to sales K= Cost of giving credit b= bad debits ratio to increased credit The discussion with the industry suggests that they rarely take decision on period of credit based on formula. It is market conditions and practices in the trade, which decides the period of credit and hardly any calculations of cost are done. In practice it is marketing department whose advice plays an  important and deciding role. In the period when sales have to be pushed up more credit is provided and there is no uniform policy overtime. During rainy season (July-Sep.) when demand is generally slack more liberal credit is granted than rest of the year. Further, when stocks accumulate due to sluggish sales,  producers accept the terms of their customers and traders  about the period of credit but when market conditions are  tight, the seller becomes more strict in providing credit. Optimum Credit Policy Credit policy refers to those decision variables that influence the amount of trade credit i.e. the investment in receivables. The firm’s investment in receivable are affected by general economic conditions, industry norms, pace of technological change, competition etc. Though the firm has no control on these factors, yet they have a great impact on it and it can certainly influence the level of trade credit through its 163 credit policy within their constraints imposed externally. The purpose of any commercial enterprise is the earning of profit. Credit itself is utilized to increase sales, but sales must return a profit. Further, whenever some external factors change, the firm can accordingly adopt its credit policy. R.J. Chambers says, â€Å"The responsibility to administer credit and collection policies may be assigned to a financial executive or marketing executive or both of them jointly depending upon the original structure and the objectives of the firm.† Different types of credit policy are: 1. Loose or Expansive Credit Policy– Firms following this policy tend to sell on credit to customers very liberally. Credits are granted even to those whose credit worthiness is not proved, not known and are doubtful. Advantages of Loose or Expansive Credit Policy: (i) Increase in Sales (higher sales), (ii) Increase in profit (higher profit), Disadvantages of Loose or Expansive Credit Policy: (i) Heavy bad/debts. (ii) Problem of liquidity (iii) Increase in cost of credit management. 2. Tight or Restrictive Credit Policy– Firms following this policy are very selective in extending credit. They sell on credit, only to those customers who had proved credit worthiness. Advantages of Tight of Restrictive Credit Policy: (i) Minimize cost. (ii) Minimize chances of bad debts. 164 (iii) Higher sales in long run. (iv) Higher profit in long run. (v) Do not pose the serious problem of liquidity. Disadvantages of Tight or Restrictive Credit Policy: (i) Restrict Sales. (ii) Restrict Profit Margin. Benefits of Credit Extension: (i) Increases the sales of the firm. (ii) Makes the credit policy liberal. (iii) Increase the profits of the firm (iv) The market value of the firms share would rise. Cost of Credit Extension: (i) Bad debt losses (ii) Production and selling cost. (iii) Administrative expenses. (iv) Cash discounts and opportunity cost. Cost Benefit Trade off Profitability 165 Aspects of Credit Policy: (i) Credit terms (a) Credit Period (b) Cash Discounts (ii) Credit Standard (iii) Collection policy or collection efforts. (i) Credit terms – The stipulations under which the firm sells on credit to its customers are called credit terms. (a) Credit Period – The time duration for which credit is extended to the customers is referred to as credit period. It is the length of time for customers under which they are allowed to pay for their purchases. It is generally varies between 15-60 days. When a firm does not extend any credit the credit period would obviously be zero. It is generally stated in terms of a net date, for example, if firm allows 30 days of credit with no discount to induce early payments credit then its credit terms are stated at ‘net 30’. Usually the credit period of the firm is governed by industry norms, but firms can extend credit for  longer duration to stimulate sales. If the firm’s bad debts build up, it may tighten up its credit policy as against the industry norms. According to Martin H. Seidhen, â€Å"Credit period is the duration of time for which trade credit is extended. During this period the overdue amount must be paid by the customer. The  length of credit period directly affects the volume of  investment in receivables and indirectly the net worth of the company. A long credit period may blast sales but it also 166 increase investment in receivables and lowers the quality of trade credit.† (b) Cash Discounts – It is the another aspect of credit terms. Many firms offer to grant cash discount to their customers in order to induce them to pay their bill early. The cash discount terms indicate the rate of discount and the period for which discount has been offered. If a customer does not avail this offer, he is expected to make the payment by the net date. In the words of Martin H. Seiden â€Å"Cash Discount prevents debtors from using trade credit as a source of Working Capital.† Liberalizing the cash discount policy may mean that the discount percentage is increased and or the discount period is lengthened. Such an action tends to enhance sales (because the discount is regarded as price reduction), reduce the average collection period (as customers pay promptly). Cash Discount is a premium on payment of debts before due date and not a compensation for the so – called prompt payment. (iii) Credit Standard – The credit standard followed by the  firm has an impact of sales and receivables. The sales  and receivables level are likely to be high, if the credit  standard of the firm are relatively low. In contrast, if  the firm has relatively low credit standard, the sales  and receivables level are expected to be relatively  high. The firms credit standard are influenced by three  Ã¢â‚¬Å"C† of credit. (a) Character – the willingness of the  customers to pay, (b) Capacity – the ability of the  customers to pay, and (c) Condition – the prevailing  economic conditions. Normally a firm should lower its credit standards to the  extent profitability of increased sales exceed the associated costs. The cost arising due to credit standard realization are administrative cost of supervising additional accounts and  servicing increased volume of receivables, bad debt losses,  production and selling cost and cost resulting from the slower average collection period. The extent to which credit standard can be liberalized  should depend upon the matching between the profits arising  due to increased sales and cost to be incurred on the increased sales. (iii) Collection policy- This policy is needed because all  customers do not pay the firm’s bill in time. There are certain customers who are slow payers and some are non-payers. Therefore the collection policy should aim at accelerating  collections from slow payers and non-payers and reducing bad debt losses. According to R.K. Mishra, â€Å"A collection policy should  always  systematization  emphasize  in  promptness,  collection  efforts. It  regularity  will  and  have  a  psychological effect upon the customers, in that, it will make them realize the attitude of the seller towards the obligations granted.† The collection programme of the firm aimed at timely  collection of receivables, any consist of many things like  monitoring the state of receivable, despatch of letter to  customers whose due date is approaching, telegraphic and  telephone advice to customers around the due date, threat of legal action to overdue accounts, legal action against overdue accounts. The firm has to be very cautious in taking the steps in  order to collect from the slow paying customers. If the firm is strict in its collection policy with the permanent customers, who are temporarily slow payers due to their economic  conditions, they will get offended and may shift to competitors and the firm may loose its permanent business. In following an optimal collection policy the firm should compare the cost and benefits. The optimal credit policy will maximize the profit and will consistent with the objective of maximizing the value of the firm. Credit Evaluation Before granting credit to a prospective customers the  financial executive must judge, how creditworthy is the  customer. In judging the creditworthiness of a customer, often financial executive keep in mind as basic criteria the four (i) Capital –refers to the financial resources of a company as indicated primarily by the financial statement of the firm. (ii) Capacity – refers to the ability of the customers to pay on time. (iii) Character – refers to the reputation of the customer for honest and fair dealings. (iv) Collateral – represents the security offered by the customer in the form of mortgages. Credit evaluation involves a large number of activities  ranging from credit investigation to contact with customers, appraisal review, follow up, inspection and recovery. These  activities required decision-making skills which can partly be developed through experience but partly it has to be learned externally. This is particularly true in area of pre-credit  appraisal and post-credit follow up. It is an important element of credit management. It helps  in establishing credit terms. In assessing credit risk, two types of error occur – (i) A good customer is misclassified as a poor credit risk. (ii) A bad customer is misclassified as a good credit risk. Both the errors are costly. Type (i) leads to loss of profit on sales to good customer who are denied credit. Type (ii)  leads in bad debt losses on credit sales made to risky customer. While misclassification errors cannot be eliminated wholly, a firm can mitigate their occurrence by doing proper credit evaluation. Three broad approaches used for credit evaluation are: A. Traditional Credit Analysis – This approach to credit  analysis calls for assuming a prospective customer in terms of 5 of credit: (i) Character, (ii) Capacity, (iii) Capital, (iv) Collateral, and (v) Conditions. To get the information on the 5 firm may rely on the following. 1. Financial statements 2. Bank references 170 3. 4. Credit agencies 5. Experience of the firm 6. B. Trade references Prices and yields on securities Sequential Credit Analysis – This method is more efficient method than above method. In this analysis, investigation is carried further if the benefits of such analysis outweighs its cost. C. Numerical Credit Scoring – This system involves the following steps. 1. Identifying factors relevant for credit evaluation. 2. Assign weights to these factors that reflect their relative importance. 3. Rate the customer on various factors, using a suitable rating scale (usually a 5 pt. Scale or a 7pt. Scale is used). 4. For each factor, multiply the factor rating with the factor weight to get the factor score. 5. Add all the factors score to get the overall customer rating index. 6. Based on the rating index, classify the rating index. D. Discriminant Analysis – The credit index described above is somewhat ad hoc in nature and is based on weight which are subjective in nature. The nature of discriminate analysis may be employed to construct a better risk index. Under this analysis the customers are divided into two categories: 1. who pay the dues (X) 171 2. who have defaulted (O) The straight line seems to separate the x’s from o’s, not completely but does a fairly good job of segregating the two groups. The equation of this straight line is Z = 1 Current Ratio + 0.1 return on equity A customer with a Z score less than 3 is deemed credit worthy and a customer with a Z score less than 3 is considered not credit worthy i.e. the higher the Z score the stronger the credit rating. (V) Risk Classification Scheme – On the basis of information and analysis in the credit investigation process, customers may be classified into various risk categories. Risk Categories Description 1. Customers with no risk of default 2. Customer with negligible risk of default (< 2%) 3. Customer with less risk of default (2% to 5%) 4. Customer with some risk of default (5% to 10%) 5. Customer with significant risk of default (> 10%) Credit Granting Decision – After assessing the credit worthiness of a customer, next step is to take credit granting decision. There are two possibilities: (i) No repetition of order. Profit = P (Rev-Cost) – (1-P) Cost 172 Where P is the probability that the customer pays his dues, (1-P) is the probability that the customer defaults, Rev is revenue for sale and cost is the cost of goods sold. The expected profit for the refuse credit is O. Obviously, if the expected profit of the course of action offer credit is positive, it is desirable to extend credit otherwise not. Customer pays (Rev-cost) Offer credit Customer default (1-P) Refuse credit (ii) Repeat Order – In this case, this would only be accepted only if the customer does not default on the first order. Under this, once the customer pays for the first order, the probability that he would default on the second order is less than the probability of his defaulting on the first order. The expected profit of offering credit in this case. Expected profit on initial order + Probability of payment and repeat order x expected profit on repeat order. [P1 (Rev1 – Cost1)-(1-P1) Cost1] + P1 x [P2(Rev2-Cost2)-(1P2) Cost2] The optimal credit policy, and hence the optimal level of accounts receivable, depends upon the firm’s own unique operating conditions. Thus a firm with excess capacity and low variable production cost should extend credit more liberally and carry a higher level of accounts receivable than a firm operating a full capacity on a slim profit margin. When a sale is made, the following events occur: 173 (1) Inventories are reduced by the cost of goods sold. (2) Accounts receivable are increased by the sales price, and (3) The differences is recorded as a profit. If the sale is for cash. Generally two methods have been commonly suggested for monitoring accounts receivable. (1) Traditional Approach (a) (b) (2) Average collection period Aging Schedule Collection Margin approach or Payment Pattern Approach (a) Average Collection Period (AC): It is also called Day Sales Outstanding (DSOI) at a given time ‘t’ may define as the ratio of receivable outstanding at that time to average daily sales figure. ACP = Accounts receivable at time â€Å"t† Average daily sales According to this method accounts receivable are deemed to be in control if the ACP is equal to or less than a certain norm. If the value of ACP exceed the specified norm, collections are considered to be slow. If the company had made cash sales as well as credit sales, we would have concentrated on credit sales only, and calculate average daily credit sales. The widely used index of the efficiency of credit and collections is the collection period of number of days sales 174 outstanding in receivable. The receivable turnover is simply ACP/360 days. Thus if receivable turnover is six times a year, the collection period is necessarily 60 days. (b) Aging Schedule – An aging schedule breaks down a firm’s receivable by age of account. The purpose of classifying receivables by age group is to gain a closer control over the quality of individual accounts. It requires going back to the receivables’ ledger where the dates of each customer’s purchases and payments are available. To evaluate the receivable for control purpose, it may be considered desirable to compare this information with earlier age classification in that very firm and also to compare this information with the experience of other firms of same nature. Financial executives get such schedule prepared at periodic intervals for control purpose. So we can say Aging Schedule classifies outstanding accounts receivable at a given point of time into different age brackers. The actual aging schedule of the firm is compared with some standard aging schedule to determine whether accounts receivable are in control. A problem is indicated if the actual aging schedule shows a greater proportion of receivable, compared with the standard aging schedule, in the higher age group. An inter firm comparison of aging schedule of debtors is possible provided data relating to monthly sales and collection experience of competitive firm are available. This tool, 175 therefore, cannot be used by an external analyst who has got no approach to the details of receivable. The above both approaches have some deficiencies. Both methods are influenced by pattern of sales and payment behaviour of customer. The aging schedule is distorted when the payment relating to sales in any month is unusual, even though payment relating to sales in other months are normal. II. Payment Pattern Approach – This pattern is developed to measure any changes that might be occurring in customer’s payment behaviour. It is defined in terms of proportion or percentage. For analyzing the payment pattern of several months, it is necessary to prepare a conversion matrix which shows the credit sales in each month and the pattern of collection associated with it. The payment pattern approach is not dependent on sales level. It focuses on the key issue, the payment behaviour. It enables one to analyze month by month pattern as against the combined sales and payment patterns. From the collection pattern, one can judge whether the collection is improving, stable, or deteriorating. A secondary analysis is that it provides a historical record of collection percentage that can be useful in projecting monthly receipts for each budgeting period. Control of Accounts Receivable Some of the important techniques for controlling accounts receivable are ratio analysis, discriminate analysis, 176 decision tree approach, and electronic data processing. Information system with regard to receivables turnover, age of each account, progress of collection size of bad debt losses, and number of delinquent accounts is also used as one of the control measures. Ratio analysis is widely used in the control of accounts receivable. Some of the important ratios used for this purpose are discussed below: (1) Average collection Period (Receivables x 365/Annual Credit Sales): The average collection period indicates the average time it takes to convert receivables into cash. Too low an average collection period may reflect an excessively restrictive credit policy and suggest the need for relaxing credit standards for an acceptable account. On the other hand too high an average collection period may indicate an excessively liberal credit policy leading to a large number of receivables being past due and some being not collectable. (2) Receivables Turnover Sales/Receivables): (Annual Credit This ratio also indicates the slowness of receivables. Both the average collection period ratio and receivables ratio must be analyzed in relation to the billing terms given on the sales. If the turnover rates are not satisfactory when compared with prior experience, average industry turnover and turnover ratios of comparable companies in the same industry, an analysis should be made to determine whether there is any 177 laxity in the credit policy or whether the problem is in collection policy. (3) Receivables to Sales (Receivables/Annual Credit Sales x 100) Receivables can be expected to fluctuate in direct relation to the volume of sales, provided that sales terms and collection practices do not change. The tendency towards more lenient credit extension as would be suggested by slackening of collections and increase in the number of slow paying accounts needs to be detected by carefully watching the relationship of receivables to sales. When credit sales figures for a period are not available, total sales figures may be used. The receivables figures in the calculation ordinarily represent year-end receivables. In the case of firms with seasonal sales, year-end receivables figures may be deceptive. Therefore, an average of the monthly closing balances figures may be more reliable. (4) Receivables as percentage of Current (Receivables/Total Current Assets Investment) Assets The ratio explains the amount of receivables per rupee of current asset investment and its size in current assets. Comparison of the ratio over a period offers an index of a firm’s changing policies with regard to the level of receivables in the working capital. Some other ratios are: 1. Size of receivable = receivable/total current assets 2. Size of debtors = debtors/total current assets 178 3. Size of loans and advances = loans and advances/total current assets The size of receivables of selected companies has been given in table 5.1 Table 5.1 Size of Receivables of the Selected Cement Companies for the years from 2003-04 to 2007-08 Year ACC Mangalam Gujarat Ambuja 0.52 0.35 0.43 0.35 0.46 0.52 0.43 0.54 0.38 0.54 0.44 0.46 Shree Cement 0.58 0.55 0.63 0.61 0.66 0.61 India Cement 0.54 0.72 0.79 0.84 0.87 0.75 Industry Average 0.53 0.53 0.61 0.61 0.62 0.58 2003-04 0.68 2004-05 0.61 2005-06 0.67 2006-07 0.64 2007-08 0.62 Company 0.64 Average Source: Based on data provided annual Reports of the cement companies. The size of receivable of all the cement companies shows  fluctuating trend throughout the study period except Gujarat Ambuja, and Shree. Both the companies show increasing trend. The minimum size of receivable in ACC is 0.61 (2004-05),  Mangalam is 0.38 (2007-08), Gujarat Amubja is 0.35 (2003-04 and 2004-05), Shree Cement is 0.55 (2004-05) and in India  Cement is 0.54 (2003-04). The maximum size of receivable in  ACC is 0.66 (2003-04), Mangalam is 0.52 (2003-04), Gujarat Ambuja is 0.54 (2007-08), and Shree cement is 0.66 (2007-08) and in India cement is 0.87 (2007-08). The study of the  composition of receivables is a very important tool to evaluate  the management of receivables. It assists to show the point where receivables are concentrated most. The size of sundry debtors in cement manufacturing   companies in India has been computed and presented in the table 5.2. Table 5.2 Size of Sundry Debtors of the Selected Cement Companies  for the years from 2003-04 to 2007-08 Shree Cement 0.22 India Cement 0.11 Industry 0.21 Mangalam Gujarat Ambuja 0.34 0.05 2004-05 0.29 0.32 0.05 0.33 0.08 0.22 2005-06 0.32 0.34 0.07 0.32 0.11 0.23 2006-07 0.28 0.31 0.08 0.27 0.14 0.22 2007-08 0.27 0.21 0.09 0.26 0.12 0.19 Company 0.28 0.30 0.07 0.28 0.11 0.21 Year ACC 2003-04 0.19 Average Source: Based on data based on Annual Report of Cement Company It is evident from the table 5.2 that the size of sundry  debtors in ACC, India Cement, Mangalam and Shree show fluctuating trend throughout the study period. Percentage to current assets was highest to 0.32 in ACC in 2005-06 and  highest 0.33 in Shree in 2004-05. Gujarat Ambuja shows  increasing trend throughout the study period. The percentage of sundry debtors to current assets where reduced shows that in those years the speed of increase in current assets was much more than that of the sundry debtors. The size of receivable of all the cement companies shows fluctuating trend throughout  the study period except Gujarat Amubja. The minimum size of  receivable in ACC is 0.21 (2003-04), Mangalam is 0.21 (2007-08), Gujarat Ambuja is 0.05 (2003-04 and 2004-05), Shree cement is 0.22 (2003-04) and in India Cement is 0.08 (2004-05). The  maximum size of receivable in ACC is 0.32 (2005-06),  Mangalam is 0.34 (2003-04 and 2005-06), Gujarat Ambuja is 0.09 (2007-08), and Shree Cement is 0.33 (2004-05) and in India Cement is 0.14 (2006-07). The average collection period of selected cement  companies has been given in table 5.3 Table 5.3 Average Collection Period in Selected Cement Companies for the years from 2003-04 to 2007-08 (in days) Year ACC Mangalam Gujarat Ambuja Shree 1999-00 34 36 7 46 India Cement 18 2000-01 43 36 7 47 20 2001-02 43 33 8 49 22 2002-03 41 27 10 48 37 2003-04 26 28 10 37 47 Company 39 32 8 45 29 Average Source: Based on data provided in Appendix The minimum Average Collection Period in ACC is 34 (2003-04), Mangalam is 27 (2006-07), Gujarat Ambuja is 7 (200304 and 2004-05), Shree Cement is 37 (2007-08) and in India Cement is 18 (2003-04). The maximum Average Collection Period in ACC is 43 (2004-05 and 2005-06), Mangalam is 36 (2003-04 and 2004-05), Gujarat Ambuja is 10 (2006-07) and  2007-08), and Shree Cement is 49 (2005-06) and in India Cement is 47 (2007-08). 181 The Creditor turnover of selected cement companies has been given in the table 5.4. Table 5.4 Creditor turnover of Selected Cement Companies or the years from 2003-04 to 2007-08 Shree 11.10 Mangalam Gujarat Ambuja 8.77 1.12 1.63 India Cement 1.40 Industry Average 4.80 2004-05 12.60 6.98 0.71 1.15 1.38 4.56 2005-06 12.93 5.80 0.63 1.41 1.09 4.37 2006-07 12.19 5.48 0.95 1.93 0.97 4.30 2007-08 13.42 3.71 0.73 1.58 0.90 4.07 Company 12.45 6.15 0.83 1.54 1.15 4.42 Year ACC 2003-04 Average Source: Based on data based on Annual Report of the cement companies It is evident from the table 5.4 that Creditor turnover in ACC and Gujarat Ambuja and Shree fluctuating trend. Mangalam and India Cement show decreasing trend all over  the study period. The minimum Creditor turnover in ACC is 1.10 (2003-04), Mangalam is 3.71 (2007-08), Gujarat Ambuja is 0.62 (2005-06), Shree Cement is 1.15 (2004-05) and in India Cement is 0.90 (2007-08). The maximum Creditor turnover in ACC is 13.42 (2007-08), Mangalam is 8.77 (2003-04), Gujarat Ambuja is 1.12 (2003-04), and Shree Cement is 1.93 (2006-07) and in India Cement is 1.40 (2003-04). The  debtors  turnover  in  cement  manufacturing  companies in India has been computed and presented in thetable 5.5. 182 Table 5.5 Size of Receivable of Selected Cement Companies  for the years from 2003-04 to 2007-08 Year ACC 10.65 Mangalam Gujarat Ambuja 10.21 50.26 2003-04 2004-05 8.58 10.21 2005-06 8.45 2006-07 2007-08 Shree 7.90 India Cement 20.45 Industry Average 19.89 52.07 7.78 17.85 19.30 11.19 44,17 7.47 16.66 17.59 8.95 13.64 36.79 7.67 9.92 15.39 10.20 13.06 37.41 9.94 7.73 15.67 Company 9.37 11.66 44.14 8.15 14.52 17.57 Average Source: Based on data based on Annual Report of the Cement Companies It is evident from the table 5.5 that the debtors turnover in ACC is fluctuating maintains approximately a fixed level. Mangalam and Gujarat Ambuja show fluctuating trend  throughout the study period. Debtors turnover was highest to 13.64 in Mangalam and 9.94 in Shree in 2006-07 and 2007-08  respectively. India Cement shows decreasing trend throughout the study period. The minimum debtors turnover in ACC is 8.45 (2005-06), Mangalam is 10.21 (2003-04 and 2004-05),  Gujarat Ambuja is 36,79 (2002-03), Shree Cement is 7.47 (200506) and in India Cement is 7.73 (2007-08). The maximum debtors turnover in ACC is 10.65 (2003-04), Mangalam is 13.64 (2006-07), Gujarat Ambuja is 52.07 (2004-05), and Shree Cement is 9.94 (2007-08) and in India Cement is 20-45 (2003-04). 183 Select References: O.M. Introduction to Financial Management (Homewood illnois: Richard D. Irwin, 1978). Lawerence D. Schal and Charles W. Haley, Financial Management, 3rd Edition. New York, McGraw Hill, 1973). S.E Bolten, Managerial Finance, (Boston: Houghton Mitten Co., 1976). R.J. Chambers, Financial Management, (Sydney: GTE Law Book Company Ltd,. 1967). Joseph L. Wood, ‘Credit and Collections’ in Daris Lillian, ed., Business Finance Handbook, (Englewood, Cliffs, New Jersey : Prentice Hall, 1962. Martin H. Seiden, The Quality of Trade Credit (New York : National Bureau of Economic Research, 1964. Theodore N. Backman, Credit and Collection: Management and Theory (New York : McGraw Hill Book Company, 1962). 184