Tuesday, February 25, 2020

Organisations Design Essay Example | Topics and Well Written Essays - 2000 words

Organisations Design - Essay Example ctively silence criticism and concerns by the rank and file, a culture that mocked and ignored ethical compliance issues, and numerous other elements that reduced their effective impulse control, morality, concern over their actions and ability to perceive the inevitable consequences of their actions. Definition of Culture Schein defines culture thusly: â€Å"a pattern of basic assumptions...developed by a given group as it learns to cope with its problems of external adaptation and internal integration...considered valid and, therefore, to be taught to new members as the correct way to...think† (1985, p. 9). Culture can be considered to be separate from but clearly intertwined with institutional characteristics. Institutional decisions to scuttle external auditing and accounts is an institutional decision. The sentiments behind that decision that laugh at external controls and view them as unnecessary is a cultural trait of the organisation. ... . ethics – successful, driven, focused, philanthropic and responsible† (Sims and Brinkmann, 2003). Just as the company had seemed to be the darling of Wall Street and invulnerable to failure, it also seemed to be a truly responsible company. Of course, it is important to note that not everyone bought into Enron's golden story. Greg Palast, an investigative journalist for The Guardian, had been writing exposes on Enron for years (2004). Palast in a retrospective on Enron in 2002 argued that Enron's collapse was predictable due to a combination of lackluster media criticism that continued after the crisis, a culture of political irresponsibility and a sense of political entitlement, arrogance, and other factors: One tabloid...called Baxter a "hero"...[T]his is the Baxter who last year quietly crawled out of Enron...then dumped his stock on unsuspecting buyers... There have been a lot of misplaced tears in the Affair Enron. The employees were shafted, no doubt about it. But the shareholders? I didn't hear any of them moan when Enron stock shot up through the roof when the company, joined by a half dozen other power pirates, manipulated, monopolised and muscled the California electricity market a year ago...Enron and half a dozen others skinned purchasers for more than $12bn in excess charges....Enron sold 500 megawatts of power to the state for delivery over a 15-megawatt line...[T]he company knew darn well the juice couldn't make it over the line, causing panic in the state - customers would then pay 10 times the normal cost... The federal regulator caught that one. Within weeks of taking office, George Bush demoted the troublesome official. Lay boasted to one candidate expected to replace the sacked regulator that

Sunday, February 9, 2020

ABC Company Management Research Paper Example | Topics and Well Written Essays - 750 words

ABC Company Management - Research Paper Example The decision is of great importance for the organization because the results of the decision continue for many years hence such decision affect the profitability of a firm. Large amounts of money are invested in capital projects, the resources that are invested in a project are often committed for a long period of time and it may be difficult to reverse the effects of a poor decision. In view of the above, the viability of this new product line should be made based on the time needed to commit to the project, the expenses associated with the project , source of funds to finance the project ,level of return of new product and the additional revenue expected from the project. I. Regulatory and compliance risk-this is the risk of regulatory sanctions that arises when Company fail to follow the code of conduct as outlined by the rule of law in the course of carrying out its activities. It includes failing to abide by laws regarding conservation of environment, health standards of its wor kers and quality standard s set for their products. This risk has disastrous impact on company’s existence as it may cause the company to be winded up if it fails to comply. Consumer demand shifts This is the risk associated with continued change in consumer preferences and tastes. This is brought about by changes in needs and fashion .a Company therefore should always be in line with this shifts so as to produce products that suit consumers needs Uncertainty Most business firms fear the challenges that may face the organization in the future. The uncertainty in credit market, coupled with new laws and the fluctuations in the global economy influences investment decisions. Thus most firms shy away from long term commitment of funds to long term projects in favor of short term projects with uncertainty being their major excuse. This problem of uncertainty can however be solved by making long term strategic planning. Globalization This is a major challenge to firms today. Firms need to understand foreign cultures so as to penetrate new markets with their products and services. Also firms face stiff competition from competitors who unknown to them are in foreign markets as a result of increased globalization. The challenge therefore can be solved by in depth understanding of international markets and diverse foreign cultures through better research of information for better analysis. Technology The technological advancement is running at an increasing rate. Some competitors use this as a tool to outdo their competitors that is they wait for next generation of technology which may be a half a year away then use it to gain a competitive edge over other firms. Hence firms need to come up with a reliable long term technology plan and also remain flexible to use to their advantage any unforeseen technology development. II. ABC COMPANY CASHFLOW STATEMENT FOR THE YEAR ENDED 31 JUNE 20XX $ $ Cash flow from operating activities: Cash receipts from customers 10000 C ash paid to suppliers and employees (3000) 7000 Cash generated from activities Interest paid 200 Income taxes paid 500 (700) Net cash flow from operating activities 6300 Cash flow from investing activities: Purchase of property, plant and equipment ( 300) Proceeds from disposal of land (200) Purchase of equity investment ( 700) Interest received 300 Dividend received 200 (700) Net cash flow from operating activities 5600 Cash flow from financing activities: Proceeds from issue of share capital 4000 Proceeds from sale of long-term loans 300 Redemption of preference shares ( 210) Repayment of long-term loans ( 200) Dividend paid (130) 3760 net cash flow from financing activities 9360 Net increase in cash and cash equivalents 340 Cash and cash equiv