External Competitiveness and Internal Alignment External competitiveness policy in an organization refers to the dynamic system in which business functions against another organization offering the same service in an environment that is externally competitive while internal alignment policies are set of strategies and systems laid by an organization based on the worth of the organization (Bisceglia,2018). External competitiveness enables an organization to decide on how to pay its employees based on how similar organizations are paying their employees. Internal alignment compares job and skills level and how they are related to their pay among the employees of the same organization. In internal alignment, employee contributions to the organization are compared, and this creates competition within the members of the organization. As a result of internal alignment policy, employees are influenced to improve their skills in their field of specialization due to the internal competition among the employees. Internal alignment focus on pay relationships hence motivating employees to choose to increase their training, which affects the workforce and hence the efficiency of the organization. External competitiveness enables an organization to pay…
Effect of the financial crisis of 2007-2008 on the stability of the banks in the United States Introduction In the recent past, the economies of the countries have been interlinked and have become interdependent with each other. Consequently, all the countries across the world operate within the same realm of the financial market. In business environment the financial institutions are normally the backbone of any financial market and therefore it is destroyed by the global financial crisis. Of factor which if they are number of , This financial market ought to be controlled and managed in order to avoid the collapse of the market which results in large recess. This paper discusses the effects the huge financial crisis that hit the globe in the years 2007-2008 and evaluates the impact that it had on the American banks. The financial crisis of 2007-2008 A financial crisis started off as a subprime crisis in the mortgage market of the United States of America, and it turned out to be a major crisis in the American banking sector and also culminated into a global…
Effects of Industrial Agriculture on the environment Introduction With the advancement and the sophistication of technology in the present world, agricultural production has also taken on the path of embracing technology. Most farmers across the globe now are practicing industrial agricultural production. The use of industrial agriculture has had some benefits to both the consumers and the farmers. Industrial agriculture is reliable because of its cheaper food production. The use of biotechnology in industrial agriculture has led to increased availability of food products at relatively low prices. Again, the shelf-life of the produced foods is elongated by the use of modern food preservation methods that increases their economic value. Farmers are no longer affected by seasons due to the application greenhouse farming and irrigation which reduces the effects of seasonal weather changes. Due to the advanced food production and processing methods of the industrial agriculture, there has been reduced time for the food products to reach the destination market. Industrial farming has caused more harm to the environment and the farmer’s food production than it has helped to alleviate the…
TIME VALUE OF MONEY APPLICATIONS Time value of money concept explains that a shilling today is worth more than a shilling tomorrow, this explain the importance of obtaining money now rather than receiving the same amount of money later. This is because a shilling obtained today is free from any expectation of future uncertainties that might reduce its value and secondly the same amount of money held in hand can be invested to produce interest. (Crosson, 2008) Present value and Future value techniques can be used in assessment of financial decisions and financial value in the financial market. The Future Value of money refers to value of present sum of, payments or receipts money at some time in the future. It is the amount of money that will grow from money invested at some given interest rate. It uses compounding technique in finding future cash flow of a given cash flow at a future date. (Carr,2006) Present value refers to the current value of a future receipt or payment, it measures the value cash flow at the beginning of a…
Analyses of variance on Minitab Objective Utilize different functions on the Minitab software. Analyze data from experiments to determine optimal settings, significant factors and future design possibilities. Introduction Analysis of variance (ANOVA) is a tool used in statistical analysis that splits an observed aggregate variability found in a data set into two parts: random factors and systematic factors. The systematic factors have a statistical influence on the given data set, while the random factors do not have any statistical influence. ANOVA is used by an analyst to test and determine the effect that independent variables have on the dependent variable in a regression study. The ANOVA test is the initial step in analyzing factors that affect a given data set. Once the test is finished, an analyst performs additional testing on the methodical factors that measurably contribute to the data set’s inconsistency. The analyst utilizes the ANOVA test results in an f-test to generate additional data that aligns with the proposed regression models. To determine whether a relation is available between two groups, an ANOVA analysis is used for comparison.…
Managerial Finance Project budgeting – situational analysis Project budgeting – situational analysis In the given scenario, the organization wants to increase its production. The weighted average capital cost has been stated to be 13%, while the debt after-cost tax is marked at 7%. The preferred stock cost and the standard equity costs are 10.5% and 15%, respectively. The retained earnings are considered as a portion of the equity. If the weighted average cost of capital is to be calculated, WACC = 50% of the stated 15% plus 50% of the 7%, i.e. 11%. Now, this is more than the stated 10% margin for the project. Thus it is not the correct approach. It is necessary to take the cost opportunity under consideration as well so that the retained earning can fetch in some bank interests. Using cost-debt only – the outcome The primary objective that organizations have is to cut down the overall costs that are associated with a project to increase the profit margins (Gebhardt, Lee & Swaminathan, 2001). One of the primary benefits of debt is that it…
Impacts of Traditional Budgeting on Management Time-consuming One of the limitations related to the application of traditional budgeting is the consumption of much management time. The process of budgeting of sales and business operations takes much time resulting in untimely predictions and budgeting. The process takes approximately 20% of management time, limiting other management operations. According to research, the traditional budgeting process ends up implementing plans on product outputs rather than implementing production processes. Traditional budgeting takes approximately five to six months of management time, with the rest of the time being spend in implementations (Popesko, Novak, Papadaki, and Hrabec, 2015). This process captures the management’s creativity and management roles, limiting productivity innovations within management. Traditional budgeting involves scaling the industry’s past events in developing finance structures. The process exerts more consideration in past events of the organization’s performance leading to management neglecting current market trends and future projections. Traditional budgeting timing affects organizational operations that require fast decision making, such as planning on costs, therefore affecting the overall performance of the organization. The budgeting tool takes up 20 –…
“Markets, International Trade, and the Government Scenario 1: Assume that the government imposed a price ceiling on gasoline in order to prevent prices from getting too high. What are the economic implications of this action in the gasoline markets? Use graphs as needed and explain your answers thoroughly.” A price cap on the oil sector will hold the appetite for petrol solid enough to stay a feasible choice for customers. With a price limit, it works not just for the customer but also for the oil market (Mankiw, 2018). While holding it inexpensive enough, it watches out for the oil sector, where it will not push the customer to vest in cheaper substitutes. The price limit causes production to be equal to or greater than availability if placed below the point of equilibrium. Unless the price limit is set well above the equilibrium level, it does not adequately fulfill its function by holding up competition for fuel as well as production (Mankiw, 2018). By implementing a price limit on the gasoline industry, it makes further use and not…
changing a personal diet The idea of changing a personal diet for most people represents a positive move towards living a healthy life. Much of the discussion arises from the food consumed by individuals that affects overall health and risk for certain diseases. Biological researchers believe that for one to eat healthier food, it is essential to change some of the daily habits. However, one does not have to make huge changes to eat healthier. One crucial change to my diet is taking more of fruits and veggies in a move that will help in reducing the risk of developing particular diseases (Alissa and Ferns 7). According to the Academy of Nutrition and Dietetics, “vegetables and fruits at every meal should fill half of a plate.” Besides, previous reports have shown that fruits and veggies are rich in minerals, vitamins, and fiber, and therefore, one is less likely to get high blood pressure, heart disease, and some cancers. Another significant change to personal diet is choosing better fats through cutting back on animal-based foods like bacon, butter, and untrimmed meats.…
Tips for First-time Home Buyers Buying your first home comes with many big decisions, and it can be as scary as it is exciting. It’s easy to get swept up in the whirlwind of home shopping and make mistakes that could leave you with buyer’s remorse later. If this is your first rodeo as a homebuyer or it’s been many years since you last bought a home, knowledge is power. Along with knowing what issues to avoid, it’s important to glean first-time homebuyer tips from the pros, so you know what to expect and what questions to ask. Looking for a home before applying for a mortgage Many first-time home buyers make the mistake of viewing homes before ever getting in front of a mortgage lender. In some markets, housing inventory is still tight because there’s more buyer demand than affordable homes on the market. And in a competitive market, you could lose a property if you aren’t preapproved for a mortgage, says Alfredo Arteaga, a loan officer with Movement Mortgage in Mission Viejo, California. …