Inner-City Paint Corporation (Revised) Essay

Alternatives 1. Management Improvement – Mr. Walsh should take up management degree. He needs to learn employee empowerment and delegation. He needs to learn employee empowerment and delegation. The plant manager needs to be trained on leadership since he has no experience in management. He should also start hiring a public relations specialist and a marketing specialist to improve on these two aspects of the business. 2. Facility Improvement – Equipment at Inner-City Paint is three large mixer, two smaller mixers, machines in the lab and the trucks. Mr. Walsh should buy more equipment so that his consumers won’t have to worry about their order not being ready. He has enough transportation Equipment. But he should buy some new mixer and more lab equipment. In order to acquire all of this he should take the loan. Recommendation I would recommend the first alternative which is to improve management. Mr. Walsh wasn’t trained and didn’t understand management. He could handle the company when it was small. He got lost as the Inner-City paint grew. If Mr. Walsh did some training, then the company probably wouldn’t be in such a mess. He did understand how to expand the business and add employees were they are needed but he lacked giving trust to other people. With employee empowerment training he should be able to trust new employees. So with this alternative we can see that the company will grow favorably. METHODS OF ANALYSIS S.W.O.T Analysis Strengths – Competitive prices of its products. – Steady growth in its market. – The company’s reputation had been built on its fast service; it frequently supplied paint to contractors within 24 hours. Weaknesses – Customers view Inner City as a company that negotiates on price and payment out of desperation. – His plant manager’s only experience has been that of a painter. – Operating without management controls or financial controls. – Inability to pay suppliers on time – Poor condition of facilities – All records are processed manually – Inventory records are not kept. – Lack of proper delegation of authority. Employees take turns making paint and driving the delivery trucks. – Unskilled employees. Opportunities – Considering a purchase of a computer to organize the business and reduce needless paperwork. – Consultants who are able to quickly spot problems in business. – The production of color paints Threats – The slowdown in the housing market combined with the slowdown in the overall economy caused financial difficulty for the company. – Walsh manages the corporation today in much the same way that he did when the business began. – Walsh lacked on giving trust to other people. – Rumors abound that the company is in difficult financial straits, that it is unable to pay suppliers, and it owes a considerable sum for payment on back taxes. – Paint contractors are hesitant to give larger orders. Larger orders usually go to larger companies that have demonstrated their reliability and solvency. – No audit has been performed. This could lead to penalty by the Internal Revenue Service (IRS). Porter’s Five Forces Industry Analysis Threat of New entrants There are low entry barriers in the paint manufacturing industry. This is because it is based on the low costs to enter the market and product unanimity. This is due to an easy and cheap development stage. As for capital requirements, firms need to invest small financial resources before entering this market. Rivalry Between Competing Firms Inner-City Paint is confronted by aggressive competition in its business. There are small paint manufacturers in Chicago that supply the immediate area. The market for paint is highly competitive. It doesn’t compete with giants such as Glidden and DuPont. Competition among the giants isn’t that fierce, but they lose their large orders to them. Bargaining Power of Suppliers There is a high bargaining power of suppliers since the industry is highly dependent on component suppliers, a powerful supplier could exert pressure on the market, by supplying components at a higher price to increase his profits. their products are the primary raw material for the paint manufacturing companies. They could also erect high switching costs. Since Inner-City Paint is working only with few selected suppliers, the company is running at a higher risk than the average. Bargaining Power of Buyers There is a low bargaining power of buyers this is due to high number of other paint manufacturers in the area in the industry and the customer has the options to take the cheapest and the best. Threat of Substitutes There is a high threat of substitutes because there are larger companies that have demonstrated reliability and solvency that paint contractors can choose. There are also other small paint manufacturers in the area. FINANCIAL ANALYSIS Inner-City Paint Corporation’s revenue for the year is $1,784,080. It experienced a Net Income of $ 17,610. Profitability Ratios Return on assets = $ 17,610 = 5.98% ;$ 294,565 This shows that Inner-City Paint is not providing an adequate return on the firm’s investment. Net Profit Margin = $ 17,610 = 0.987% $ 1,784,080 This ratio indicates how much money Inner-City Paint makes with each incremental dollar in sales that they experience, meaning that a higher ratio would result increased profit with each additional dollar in sales. Liquidity Ratio Current Ratio = 262,515 = 0.92 285,030 This ratio shows that Inner-City Paint is currently in trouble meeting its financial commitments because its current ratio is below 1. Leverage Ratios Debt Ratio = 300,030 = 1.02 294,565 This measures the portion of total assets provided by the company’s creditors. In conjunction with other ratios, this ratio indicates the degree to which operating losses may be â€Å"cushioned† from adverse actions by creditors. Common Size Financial Statement Analysis INCOME STATEMENT % to Sales Sales $ 1,784,080 100.00% Cost of Goods Sold 1,428,730 80.08% Gross Margin 355,350 19.92% Expenses Selling expenses 72,460 4.06% Administrative expenses 67,280 3.77% President’s salary 132,000 7.40% Office Manager’s salary 66,000 3.70% Total expenses 337,740 18.93% Net Income $ 17,610 0.99% BALANCE SHEET Amount % to Total Assets Assets Current Assets Cash $ 1,535 0.52% Accounts receivable (net of ADA of $63,400) 242,320 82.26% Inventory 18,660 6.33% Total current assets 262,515 89.12% Non-current Assets Machinery and transportation equipment 47,550 16.14% Less accumulated depreciation 15,500 5.26% Total non-current assets 32,050 10.88% Total Assets 294,565 100.00% Liabilities Current Liabilities Accounts payable $ 217,820 73.95% Salaries payable 22,480 7.63% Notes payable 6,220 2.11% Taxes payable 38,510 13.07% Total current liabilities 285,030 96.76% Non-current Liabilities Long-term notes payable 15,000 5.09% Owners’ Equity Common equity 12,400 4.21% Deficit (17,865) (6.06%) Total liabilities and owners’ equity $ 294,565 100.00% With all of this information we can point out that most of the expenses is attributable to Walsh’s salary. His six-figure income is not the average salary of a president in such a small company. He might try taking a small pay cut to invest that money in the business. He should also make set selling prices. Next, he should check into finding cheaper suppliers to bring his direct materials cost down. Financially ICP needs a financial account manager to start investing money and watch finance closer.

The Early 1800’s, The Dawn of a New Era Had Begun

By the early 1800†³s, the dawn of a new era had begun. Family and home life was changing as well as the communities around them. There was a fast growing need to produce products like clothing, quickly and efficiently. This new era brought about the mechanical industry that created factories, which could meet this need. But who would work in these factories if the men were moving west? By the 1840†³s the necessity to find workers for these factories had produced major social changes-changes which carry on until today. Before this time, most all clothing was spun and woven in the home by women. But by the 1840†³s, most was produced in factories set up in what were referred to as mill towns. Lowell Massachusetts was one such town. This change created a whole new idea of what women†s duties were, domestic or money earning laborers? Women had previously only been seen as domestic and having one goal, that of being a housewife. Their move into town to provide a workforce for the clothing factories sparked controversy in many eyes. Some people branded them â€Å"mill girls† who were doomed and unmarriable. Others thought of them as adventurers, with the fancy of bringing new fashions, books and ideas home with them. But the statistics show the average working life at a Lowell factory was only three years. Many of the women who returned home were sick and never married, because they were characterized by â€Å"she has worked in a factory†. In the factories, women were looked down upon–seen only as people who flowed in to the factory day in and day out earning their keep, spinning and weaving for the rest of their lives. They were not worthy of earning an education, and were considered socially and intellectually inept. As time went by, the bigotry began to wear away. The factories flourished with women who had wisdom and potential. One man who visited one of the mills was noted to have bowed to all the women in the mill, This sign of respect was usually reserved for ladies whom society regarded as upper class. As time wore on, â€Å"mill girls† were eventually heeded as ladies, women worth of respect. Eventually, people started noticing that the â€Å"mill girls† were spending their free time bettering themselves. Many had circles of natural selection that allowed them to cultivate and stimulate their minds. They filled the churches, libraries and lecture halls. Many of the women were highly respected by clergyman and lecturers. They testified that the women†s spirits were high along with their intellect. Inevitably, women were encouraged to finish school and reach for goals. This shows a change in how women were perceived. They were no longer lone mill workers without anything to offer society; each was an individual with purpose and worth. Though this was happening, the conditions of the factories were not changing. The Lowell factories provided boarding houses for the women, each housing up to sixty girls. To onlookers, the houses were so charming that many came to visit just to see how the women lived. The perceptions of outsiders were that the women worked and lived in great conditions. They enjoyed their jobs and were hearty and content, but this was not the case. The women often worked twelve or more hours a day and were only allowed up to an hour and forty-five minutes for meals, depending on the time of year. The factories were not properly ventilated and poorly lit. Eliza R. Hemmingway recalls that at any given time six or more women were out due to illnesses. . Miss Sarah G. Bagley submitted the first petition to the Lowell Corporation that was signed by Mr. John Quincey Adams Thayer, and eight hundred and fifty others. This petition called for improvements in the overall working conditions within the factories. These demands for better conditions lit a spark that was the beginning of what is a modern day OSHA, a systematic law for all employers and employees. The corporation acknowledged that their demands were reasonable and considerable, but believed they were not the source for solving the problems the mill workers faced. They felt that the workers in a capitalistic system had their own bargaining power and were equal to management. As a result, the Massachusetts Legislature did not pass into law the provisions outlined in the petition. Around this same time poor immigrants started pouring into the United States by the thousands. They became willing workers, not complaining about conditions as the native workers did. Could this be why the corporation did not meet the women†s needs? The immigrants would be happy to take over the jobs for less money and in the same conditions. What does this say for the corporation? Were they steering away from caring the women working in their factories, or was it just easier to use immigrants? Or maybe, they feared the switching of women†s class and roles in society? They were not ready for women of independence and means. Regardless, society now had to deal with a more independent, self-assured working class woman. No longer needed to fill the entry level, low-paying jobs in the mills, and no longer interested in going back home to be homemakers, women entered society as productive members of the workforce. This transition is still taking place today.

Gantt Chart for Execution of House Construction Essay

The activity of house construction involves many stages which are spread over many months. The case study example taken for the preparation of Gantt chart is selected as it involves various stages and there are many people involved in different activities. These activities are interdependent on the performance of various work groups and can get delayed if not planned and executed timely. Thus I present a Gantt Chart that will assist and ensure effective working in order to obtain the end result as planned. Explanation of Gantt Chart (refer appendix) The overall activity has been planned for a time span of 9 months. The activities have been classified as follows Excavation (A) : This is the first stage where excavation for the house columns needs to be carried out. The lead time for this activity is one month. This is a process which is labor intensive and needs to be completed as per the architectural drawing. Other activities cannot be started before ensuring accuracy of the excavation work as the structure cannot be modified if desired at a later stage. Hence activity B , RCC cannot start before 100 % completion of activity A. In case during this phase it is realized that any delays could be caused in reaching the first milestone then additional workforce or earth moving equipment needs to be outsourced. RCC (B) (Reinforced Cement Concrete) : The lead time for this activity is three months. Once excavation is complete the next stage is of RCC which involves making columns and beams of the house. Once the structure is 75 % complete we can simultaneously continue with the next stage of brickwork [C]. The achievement of this milestone will not hamper activity C but due caution has to be exercised that the activity gets completed by the fourth month form the project starting date as it is the start of activity D and E. Brickwork (C) Along with brickwork the other activities Electrical (D) and Plumbing (E) also need to be commenced upon the completion of stage B and 50 % of stage C as the electrical pipes and fittings need to be covered inside the walls. Similarly toilets and kitchen requires plumbing to be done simultaneously. If the activity deviates from its planned lead time of two months then activity D, E and F will need to be carried out at an increased pace than its actual to cover up for the lag time. Electrical (D)and Plumbing (E) These stages can be executed simultaneously as they are not interdependent on each other . Once these are complete we can move on to the next stage. Plastering (F) After completion of electrical and plumbing work we can start with the internal plastering activity. However external plastering can be carried out when 50 % of stage D and E are complete. This is the third milestone. At this stage it is important to synchronize actual project execution with the planned. Tiling (G) Once plastering is 100 % complete then we can move on to Tiling & Flooring work Painting (H) This is the final milestone to be executed after 100 % completion of activity G . Conclusion: Gantt chart gives a clear picture of the stages and helps in noticing any deviations and corrective steps can be implemented which in turn will not disrupt other schedules and help in achieving desired results in a cost effective and efficient manner. The case for buy Vs make is indeed a matter of individual capacities and judgment in the said example. By choosing to make as in the above case the maker gets freedom of choice and taste to suit his own needs. If activities are carried out with due diligence the project would be cost effective. Reference : Gantt Chart- Wikipedia, 19 October 2008, < http://en. wikipedia. org/wiki/Gantt_chart>

Analysis of The Choice by the Russell Roberts Essay

Analysis of The Choice by the Russell Roberts - Essay Example Writer convincingly put forward important arguments in favor of free trade and how it can actually increase the economic prosperity. What is, however, also critical to note that the author has practically failed to realize as to how protectionism can actually provide necessary benefits to an economy. The example of China is one of the critical examples of how the selective protectionism can play an instrumental role in the development of the country and writer has probably failed to envisage a future where different variations of the protectionism can actually increase economic freedom and contribute towards the growth. As such the advocacy of the free trade by the author is actually an advocacy of the American dream and not a more practical presentation of economic theory and logic and how protectionism can too contribute towards the development of a nation regardless of the fact whether the country is actively involved in the free trade or  not.

Warfare about Product Life Cycle Essay Example | Topics and Well Written Essays - 4250 words

Warfare about Product Life Cycle - Essay Example Meaning and Concept of marketing Warfare The term ‘Warfare’ is often used within the marketing, which can also be reflected in the different crucial strategies of marketing. The literary meaning of Warfare is related with the strategies and tactics used by armed forces at the time of war for the purpose of getting victory over its enemies. The term warfare represents some of the crucial and aggressive strategies implied for the purpose of countering some crucial competition provided by the competitors and enemies at the time of war. In direction to this, the disposition of warfare can also be aligned with the marketing activities undertaken by the business organization (Roney 2004). The implication of different crucial Wartime strategies and tactics in the marketing for the purpose of countering some crucial and intensive competition provided by competitors is known as marketing warfare. Marketing Warfare includes different strategies and tactics implied by the originati on for the purpose of establishing compatibility within business and warfare. Moreover, it also opens a window for the effective application of different principles of military strategy in the business situations, so that an effective solution of intensive competition prevailing within the market place. As in contemporary scenario, the nature and disposition of business environment has been changed quite significantly. Due to heavy competition, market place have become a battle field in which, different competitors are fighting for saving their existence in this tough business environment (Orcullo 2008). In context to this, for the purpose of winning this battle, like war, business organizations are required to... This paper tresses that Product Life Cycle is one of the major concepts in the field of marketing, which will be quite helpful for the business organization in formulating some of the crucial strategic objective. In direction to this, the paper has shaded some of the crucial lights over marketing warfare regarding different stages of product development. On the basis of the in-depth review of different findings, it can be concluded that product life cycle of a product reveals different stage right from its introduction to its decline. In different stages there are different conditions and situations can be faced by the business organization. For the purpose of being successful within the existing market place, it becomes quire essential for the management of the organization to undertake some of the crucial strategic steps in the context of addressing different type of external environmental problems and issues. This report makes a conclusion that there is different warfare marketing strategies associated with the different stages of product life cycle. In relation to this, such different warfare allows the organization to have long term success and sustainability within existing market place. For a business organization it is quite essential to understand and elaborate such crucial strategic measures so that desired success can be attained in the most effective manner. Right selection of strategies at the right time of time is the key of success for the organization and above discussed warfare about PLC allows the organizations to do so effectively and efficiently.

The Origins of the Urban Crisis Essay Example | Topics and Well Written Essays - 1000 words

The Origins of the Urban Crisis - Essay Example The term, 'American Dream' was coined by James Adams, in his book, 'The Epics of America' and the American Dream is the very pulse of the country, as signified by the personified Statue of Liberty. The American Dream, as envisaged by the early Americans, is the utopian condition of living in pursuit of liberty, happiness and luxury. It lays down that one must work hard and persevere, in order to live in comfort and happiness. Early immigrants to America were attracted by the fact that they could now live in a country, where there would not exist any forcible acquisition of land or impoverished conditions. They felt that this new land upheld their hopes of working hard and earning their due, providing opportunity to grow and live in absolute harmony and comfort. The American Dream grew in its dimensions during the Industrial Revolution, which enabled the increment in production and provided opportunities to labor and earn money. This, in turn, increased the Standard of Living in America, which furthered the dream. The Dream reached its pinnacle in the 19th century, when people shifted base to America, to try their fortunes and truly live a cherished life of luxury, liberty and happiness. Thus, the American Dream is a vision that propelled the forefather and early immigrants of America to work harder, live successfully and comfortably and enjoy the very essence of life. Change in the American Dream The forefathers of the American nation, who envisaged and coined the term, the American Dream envisioned a hard working and prosperous nation, rising above the rest of the world. The aim of the American Dream was to realize the ideals that it put forth. The ideals of liberty, luxury, comfort, perseverance and happiness were the most striking of them all. America did progress in this direction, winning one ideal after the other. The 19th century led to the glorious success of the envisaged dream. However, things gradually began to change and change towards slow declination. The urge to rule the world began to replace the passion to live successfully, which brought about a major shift in the process of contemplation. This brought about the frenzy of achieving military superiority, above the improvisation of the country's progress in other spheres. The World War II brought about a great shift in the American Dream and its very concepts and ideals. The participation of neutral America in the World War II was a betrayal of the hopes of the millions of Americans, who had previously endured the Depression and the World War I. The result of the World War II led to the supremacy of the United States of America, which began to don the role of the dominant industrial nation of the world. Detroit was one of the fast growing industrial cities of America, thanks to Ford, who developed the dream

Entrepreneurship International new ventures - internalization, growth Thesis - 1

Entrepreneurship International new ventures - internalization, growth path, Measutement - Thesis Example Logitech and Skype are two firms that started out as international new ventures. Logitech and Skype are selected for case studies because they both represent the opportunities accorded international entrepreneurs and at the same time represent two different types of opportunities and risks taken and how those risks pay off and can be detrimental to international entrepreneurs. In this regard, Logitech represents how risks in international entrepreneurships can be profitable and Skype represents how risks can actually be detrimental to international new ventures. The results of this study confirm both network and internationalization theories. These results are discussed and implications for theory and practice are also discussed. Studies on international firms often focus on multi-national enterprises (MNE) which usually begin as large and powerful domestic firms that eventually branch out into the international arena (Oviatt & McDougall, 1994). However, advances in technology and an increase in the number of individuals with experience in international business have opened up opportunities for non-traditional MNEs (Oviatt & McDougall, 1994). Since the 1990s, there have been a significant and progressive growth in the number of ‘new and young firms’ that join the international market from the start (McDougall, Oviatt, & Shrader, 2003, p. 59). This trend in internationalisation from the start is known as International New Ventures (INV) (McDougall, et al., 2003). Researchers have attempted to understand why new firms which are comparatively small, would assume the additional ‘risk’ of venturing directly into the international market (McDougall, et al., 2003, p. 60). Traditional international business theories fail to provide a framework for analysing and understanding why international entrepreneurs venture out into the global market place from inception. This is because traditional international