Discussion 2 Week 11 Best Practices Assignment Example | Topics and Well Written Essays - 250 words

Discussion 2 Week 11 Best Practices - Assignment Example nagerial economics provided the theoretical frameworks for understanding the concept of demand and supply; as well as illuminating practitioners on differences in market structures (McGuigan, Moyer and Harris). From the experience in Katrina’s Candies, it was revealed that there are pricing strategies that should be applied depending on the market structure that the organization is in: either in an oligopoly or monopolist structure. Likewise, forecasting tools are analytical techniques which provide insights to the organization’s decision makers in terms of evaluating options according to anticipated results. The value of forecasting lies in the accuracy of identifying factors which could significantly affect the plans of the firm. As such, it is best practice to apply it and it helps in making responsible decisions based on projected goals. Finally, globalization takes into account increasing pressures for more competitors. As such, there is a need to undertake market research to discern the most-likely reaction and response of competitors should external factors affect the industry. The recession that affected the global market required application of transformed strategies to adapt and adjust to changes in demand and supply. As such, the reactions of competitors are useful inputs to work

Factors that contribute to quality of life

Factors that contribute to quality of life A report by Garavan, Winder and McGee (2001) Health and Social Services for Older People, Consulting Older People on Health and Social Services: A Survey of Use, Experiences and Needs concluded within its findings that older women viewed that they had a low quality of life. Stuart-Hamilton (2000) states that an element within the ageing concept is that men for varying reasons die at a greater rate than women after the age of 70 and that therefore it could be concluded that the ageing experience could be a longer process for women. The elderly population in Ireland is increasing in that according to Connell Pringle (2004) the projected population of older women in 2021 is expected to be between 375,000 and 389,000 which would indicate a rise of over 50 per cent from that in 2002. Ageing can be defined as the process of progressive change in the biological, psychological and social structure of individuals à ¢Ã¢â€š ¬Ã‚ ¦aged 60 or over (Stein and Moritz, 1999;4). According to Greenstein (2006) social research is abstract in general in that the concepts are not easily measured because of the subjectivity of the topics and that a way of gaining a vague measure within the research is to ask the participants their level of satisfaction or dis-satisfaction in relation to the sub-themes. Ageing has a direct biological decline and because of this quality of life has been regarded to be directly linked by the health of the person versus ill-health. But health being defined by the World Health Organisation cited in (Bond and Corner, 2004:2) as a state of complete physical, mental and social wellbeing have resulted in the concept that quality of life is much more complex and varied depending on other factors rather than being traditionally associated solely with health (Bond and Corner, 2004). Definition of Quality of Life Quality of life is not scientifically measureable in that it is very subjective to the individual depending on their experiences of ageing and that the terms well-being and life satisfaction are often used as a means of gaining an insight into the degree a person views that they are experiencing quality of life (Vincent, Phillipson and Downs, 2006). Research has shown that quality of life is subjective to the person, Abrams (1973) cited in (Bond and Corner, 2004:4) defines quality of life as the degree of satisfaction or dissatisfaction felt by people with various aspects of their lives. This literature review will act as a base for a thesis that will explore the views of older women in Cavan as to the factors that contribute to quality of life. The definition of what is quality of life is not easily determined and many authors offer different domains as the priority but in fact the priority will be subjective to what the individual older person measures as the most important aspect to them (Nay and Garratt, 2009). There has been much focus on what is quality of life in recent years in terms of social policies that have in turn directed service provision and providing care that is impacting positively on a persons quality of life according to Vincent et al (2006). Quality of life according to Nay and Garratt (2009) typically measures general health, physical, cognitive, sexual and emotional functioning while also measuring the happiness of the person but it is subjective to the person in that what one person views as important may differ from another person. Factors such as employment, social networks, social activities, self-identity, financial security and cognitive and physical function are considered to impact on quality of life (Renwick et al (2003) cited in Nay and Garratt, 2009). Also that quality of life in relation to older people is often used as an assessment measure of whether a service is supporting the needs of its clients in that it is not just a measure of quantity of life but that the life has quality within it so that the outcomes of supports or services are impacting positively on quality of life (Nay and Garratt, 2009). That measurement of quality of life is sometimes measured within one domain such as general health while others measure cover several domains. But in general the largest measurement of quality of life is the concept that it is directly connected to the health of the person and their satisfaction regarding their health (Nay and Garratt, 2009). Therefore Health Related Quality of Life is a term that is often used by service providers as a directive for their care provision (Nay and Garratt, 2009:352). Focusing quality of life within the domains of general health can create what is called the disability paradox in that older people rather than viewing their decline in health as an indicator of low quality of life that the expectation of inevitable physical and health decline has resulted in other factors such as social networks and their overall well-being as the domains used to measure their view of quality of life and that it is presumptuous to view that general health is the sole measure of quality of life (Carr and Higginson, (2001) cited in Nay and Garratt, 2009:353). According to Vincent et al (2006) people will view health, social networks and standard of living as important factors within their lives but that the importance of the factors will vary as the person proceeds along their life course. Research sources have shown the complexity in defining the key factors within quality of life and the initial reading by the researcher highlighted that the many elements could be loosely grouped within three sub-themes in relation to quality of life: (1) physical factors general health and physical mobility, (2) economic factors income, and standard of living and (3) social structure factors social networks, cultural environment but further reading has emphasised that even though these concepts are applicable that expanding them further will allow greater exploration and description. In that according to Stuart-Hamilton (2000) that focusing on a narrow of domains could result in some domains appearing more important within the research than they possibly are. That domains such as health, income, and environment have an impact on a persons life satisfaction in general and are all inter-related but that the personality of the person will also impact on the how they measure their life satisfaction (Stuart-Hamilton, 2000). Walker (2005) suggests that as quality of life has no distinct key factors that most research focuses on health, environment, employment and relationships. That the environment has within it the physical, social, cultural and economic elements that can either enhance or reduce quality of life. Health has within it general health and the physical, mental and emotional health of the person. Employment covers income and can be related to the wealth of the person. The key concepts with regard to quality of life as suggested by Hughes (1990) cited in Bond and Corner (2004) are: (1) Physical environmental factors which include quality of accommodation, access to public services such as shops, transport and other public services such as libraries and other leisure outlets. (2) Social environmental factors which include family members, social networks, the level of support obtainable from family and social networks and the levels of leisure activities that the person is involved in. (3) Socio-economic factors which include the general standard of living, the income available to the person and other means of wealth. (4) Cultural factors which include the age, class, gender and religious leaning of the person. (5) Health factors which include general health, mental well-being of the person and physical mobility. (6) Personality factors which include whether the person is an optimist or pessimist, will all impact on the subjectivity by the person on their measure of life satisfaction. (7) Autonomy factors which include the degree that a person has the capability to make their own decisions. (8) Satisfaction subjective to the individual the level of satisfaction over all the areas of their life that they judge as important. There is no definitive on what factors contribute to quality of life, therefore (Arnold (1991); McDowell Newell (1996) cited in Nay and Garratt 2009:355) suggest that the measurement of quality of life should include objective indices such as economic circumstances and housing, those that measure subjective aspects such as morale, happiness and life satisfaction and those that contain both objective and subjective components, such as health related quality of life But according to Bond and Corner (2004) the subjective and objective aspects are interrelated an illustration of this being in that the objective element of health related quality of life could be subjectively not important to the older person who as of yet has not experienced any health issues that they view as impacting on their quality of life. There is a view according to Stuart-Hamilton (2000) within society that the busier the life of an older person the more quality of life that they have. That the subjective measure of life satisfaction can be directly linked to the activities that an older person participates in that give a meaning to their life can be directly linked to one of the theories of ageing Activity Theory (Bond and Corner, 2004). That an indicator of life satisfaction can be the degree that an older person maintains activities within their community, in that the more activities indicate higher levels of life satisfaction. Bond and Corner (2004) disagree and agree with elements of this theory in that they state that although social networks and activities can maintain and support physical and mental health such as reducing depression that ageing has a biological element that can impact on health and reduces an older persons social network as confidantes become ill or eventually die and that it is wrong to e xpect an older person to engage in levels of activities to the degree that they did when they were much younger. Stuart-Hamilton (2000) suggests the concept that engaging in activities for the sake of them does not allow the older person the ability to make their own choices and that within the provision of services for older people that by assuming that any activity is better than none could be directly linked to the application of Disengagement theory whereby it is believed that the older person accepts that death is eventual and therefore prepares for death by choosing to dis-engage from society and that also it has a function of reinforcing the expected process of ageing in Western Society. Personality: And its link to health: One element within a persons personality is that it will relate to their choices with regard to their lifestyle such as diet, exercise all which can aid the life expectancy of a person but what if the persons personality has within it a negative outlook will this impact on how they view the ageing process and the biological decline and that rather than trying to improve their physical well-being by a healthier lifestyle that they approach death and illness as unavoidable and then reduce their activities and disengage from society (Stuart-Hamilton, 2000). Link between psychological well-being and personality and health: Research has shown a link between physical well-being and mental well-being in that according to Whitbourne (1987) cited in Stuart-Hamilton (2000) people that exercised and had levels of what they measured as physical well-being had a general feeling of overall well-being but therefore could it be said that people that have a poor physical well-being are more less satisfied with life (Stuart-Hamilton, 2000). Personality: Preference for lifestyle link: That the personality of a person whether they are an introvert or extrovert will also impact on the lifestyle they choose in that if they are an introvert it will probably follow that as they are older that they will not seek out social activities (Stuart-Hamilton, 2000). Disengagement theory Cumming and Henry, (1961) as cited in Stuart-Hamilton, (2000) suggest that as people get older that they automatically start to disengage from society in degrees as if in preparation for death and this is also supported by society in that the structures have come to expect this disengagement. This disengagement according to Stuart-Hamilton (2000) can be as a result of many factors such as illness, loss of family members, low income that does not provide for activities and also their personality type in that what if they are introvert or extrovert and that disengagement theory has been criticised for the overall image that older people are cutting ties with society in preparation for inevitable death. According to Maddox (1970) cited in Stuart-Hamilton, (2000) this disengagement may simply be a an aspect of the persons personality and that it is not an element of ageing at all. Merriman (1984) cited in Stuart-Hamilton (2000) also criticises disengagement theory an d states that ageing policies within many countries encourage that older people have an high profile within their community. Activity theory was proposed as a way of combating disengagement theory according to Stuart-Hamilton (2000) in that it was proposed that the more activities that an older person engaged in the better their life satisfaction. But this does not allow for choices for the older person and what if their personality is such that enforced activities is wrong (Stuart-Hamilton, 2000). Issues related to measuring Quality of Life There are issues relating to the measurement of quality of life in that the domains are both subjective and objective. The objective indices, such as economic circumstances and housing; those that measure purely subjective aspects, such as morale, happiness, and life satisfaction; and those that contain both objective and subjective components, such as Health Related Quality of Life measures (Arnold, (1991) cited in Nay and Garratt, 2009:355). Vincent et al (2006) agrees that there are both objective and subjective domains but unlike Nay and Garratt (2009) attributes social factors within the objective domains by stating that the number of social networks that a person has is objectively measureable but that the quality of these social networks is a subjective element. Likewise Vincent et al (2006) states that health although measureable in terms of whether an illness was present and therefore objectively measureable that the domain is also subjective in that the importance of health to quality of life will depend on what the individual views health to be. The view by Vincent et al (2006) that the meaning of what is health is subjectively defined by the individual is illustrated by the disability paradox as per (Carr and Higginson, (2001) cited in Nay and Garratt, 2009:353). In that older people rather than viewing their decline in health as an indicator of low quality of life in that the expectation of inevitable physical and health decline have resulted in other factors such as social networks as the domains used to measure their view of quality of life and that it is therefore presumptuous to view that general health is the sole measure of quality of life (Nay and Garratt, 2009). Anderson Bury (1988) cited in Vincent et al (2006) state that people can adjust to illness and develop coping skills so that the illness no longer factors as a significant domain to the person and this would therefore affect the measurement of health within quality of life research. Health and physical functioning as an objective measure in the domains of quality of life are mentioned continually and can in its simplest form according to Nay and Garratt (2009) be that if a person has a condition or range of illnesses be considered to have a low quality of life. But what if the adjustments suggested by Anderson Bury (1988) cited in Vincent et al (2006) were accommodations such as medication or lifestyle changes and were to adjust how the illness impacts on the person could it then be considered that although the health status remains the same but that the accommodations have resulted in the meaning of what is health to not be defined by illness or physical functioning. Therefore in relation to this research the aim is to explore the subjectivity of what the participant views as health and if any accommodations have impacted on the meaning of what is health. Economic factors such as standard of living are objectively measured according to Nay and Garratt (2009) in that income can be an indicator of a standard of living but according to Vincent et al (2006) this objective measure has to be balanced by the subjective measure of what is the expectation of a standard of living and according to Stuart Hamilton (2000) will be directly linked to past experiences of standard of living in that if a person has in the past had a particular standard of living the subjective measure will be linked to whether the same standard of living was expected by the person or not. Therefore in relation to this research with regard to economic factors as a domain within quality of life previous standard of living and expectations of standard of living as an older person and direct experience will be explored. According to Vincent et al (2006) quality of life has no scientific measurement that can define the exact objective degree of quality of life because there are so many variations of what is quality of life. That the experience of life may support or contradict what the objective measure describes as quality of life. Qualitative and Quantitative Methods: Quantitative methods are often the means of gaining information regarding what is quality of life but using quantitative methods will not allow for the subjectivity of individual experiences and their views on quality of life. That using structured questionnaires still conform to the researchers view of quality of life and does not allow for the exploration of the views of the older person. That these approaches do not allow for the symbolic nature and meaning of life to the individual (Vincent et al, 2006:158). Taking the view that as the person proceeds along the life course that their view of life will remain the same. Stuart Hamilton (2000) suggests that the life course Another challenge in relation to measuring quality of life and with particular reference to older people is that there can be such differences between each person in that as they age the experience in relation to physical, social, emotional, sexual and cognitive functioning is not as homogenous an experience and that these differing experiences will impact on what factors are key to quality of life (Stewart et al (1996) cited in Nay and Garratt, 2009). The setting that the older person lives within will impact greatly on the factors that are viewed as contributors to quality of life in that if a person is living within a residential unit that this group orientated setting will have different routines and rules in comparison to an older person living within community in general, and that for those within a residential setting that research has shown that dignity, self-determination and participation and accommodation of resident needs were considered to be the factors that impacted on quality of life (Nay and Garratt, 2009:357). That measurement of quality of life needs to consider the domains that are considered contributors within quality of life and that how the research is conducted in that the way that questions are asked can create a bias. As already stated biological decline is a natural aspect of ageing therefore if an indicator of quality of life were to be considered the level of physical functioning it would be inappropriate to ask the participant if they were physically able to do as much and for as long as they used to when they were younger and that this would not be a realistic indicator of quality of life according to Nay and Garratt, (2009). Measurement tools are World Health Organisation Quality of Life Instrument (whoqol) (Skevington et al 2004), cited in Nay and Garratt, 2009. Conclusion This literature review has explored the concept of quality of life and that the factors that are considered to contribute to quality of life are varied and can contain subjective and objective components and that older people in order to measure quality of life should not be viewed as a homogenous group.

Environmental Pollution Essay -- essays research papers fc

Environmental Pollution ENVIRONMENTAL POLLUTION Automobiles like these are around the world everyday, and their exhaust destroys our air everyday. Our environment is a major aspect of our life today. Many of us don't take our Earth seriously and think that as long as pollution doesn't hurt them they can go ahead and throw garbage on the ground or spill oil down the drain. Well to many people have that theory and they are killing off our Earth and also physically harming themselves from the air they breath and the water they swim in. Our Earth is fragile like a human and people don't know. There are many different types of environmental pollution (e.g. Water, air, atmospheric.) Scientists believe that all cities with populations exceeding 50,000 have some degree of air pollution. Burning garbage in open dumps causes air pollution, and also it smells pretty bad. Air pollution comes from many different sources. One of the major sources is carbon monoxide which manly comes from automobiles, but also burning of fossil fuels, CFCs etc. Air pollution does not leave the Earth it all gets trapped up in the atmosphere. This doesn't bother most people, and they think that it will not harm them. People burn down forests and people burn fossil fuels, and CFCs from aerosols. Every bit of this harms our atmosphere. Factories and transportation depend on huge amounts of fuel billions of tons of coal and oil are consumed around the world every year. When these fuels burn they introduce smoke and other, less visible, by-products into the atmosphere. Although wind and rain occasionally wash away the smoke given off by power plants and automobiles, the cumulative effect of air pollution poses a grave threat to humans and the environment. A big example of smog is LA you can see the smog just hovering above the city. I don't think any human alive should be subject to that kind of environment. Scientists believe that all cities with populations exceeding 50,000 have some degree of air pollution. Burning garbage in open dumps causes air pollution Scientist have discovered that over the South Pole the ozone has a high level of ozone depletion. A computer-enhanced map, taken from satellite observations of ozone levels in the atmosphere over the South Pole, shows the region of ozone depletion that has begun to appear each spring over Antarctica.  ... ...sp; I think that all kinds of environmental pollution can be stopped if we all use our heads and just think before we throw a piece of trash on the ground, throw it into a nearby garbage can. We should look at our Earth as a precious human being and treat it like it were a child of our own. We should not trash it and take advantage of it. If we abuse our Earth now who knows how it will get back at us in the future. Saving the Earth is such a simple task, and I think everyone should be involved in it rich or poor. If we don't save our Earth now someday it will be to late. There are programs out there that try to save the Earth, but not enough people corporate in these programs. If more people supported and joined into these programs maybe our world wouldn't be in such danger of dying. If our Earth dies it will surely take us all with it. BIBLIOGRAPHY Environmental Health, Carleson Lavonne Chelsea House Publishers, New York 1994 Acid Rain, Tyson Peter Chelsea House Publishers, New York 1992 Clean Water, Barass Karen Chelsea House Publishers, New York 1992 "Environmental Pollution" Comptons Interactive Encyclopedia 1996 "Smog" Encarta Encyclopedia 1996

Financial Analysis on Retail Industry Essay

This analysis studied financial information of three multinational corporations in the retail industry, Ralph Lauren, American Eagle, and Gap. This examination is predominantly and analysis of Ralph Lauren and American Eagle, and it compares its financials and performance to that of Gap. In order to reach a decision on which firm my company should invest in; we recreated and cleaned both company’s financial statements followed by an analysis using key financial ratios and metrics. My company is searching for the firm that would be more profitable in the following fiscal years. After completing an in-depth analysis of these companies, we concluded that Gap would be the best investment for future growth in the industry of retail. Gaps sales growth may not be relatively high compared to other industry leaders but it is on the rise. Also the sales decrease can be related to the closing of stores and restructuring of international operations. This also relates to net income growth showing signs of regression in the past fiscal years. Gap’s EBIT Margin and EBITDA Margin suggest that the company is healthy and also properly managed. These ratios show us that the sales growth and net income growth decreases are due to other factors in the business. Gap will show to be the right choice for our company to invest in as well as other industry research that we have done to help make this investment persuasive. Gap Inc.200920102011 Sales Growth-7.8%-2.3%3.3% Net Income Growth 16.1%14.0%9.3% EBIT Margin10.7%12.8%13.4% EBITDA Margin15.1%17.5%17.9% Case Write Up and Analysis All three of these multinational corporations generate their revenues in the apparel: retail brand industry. Gap is headquartered in San Francisco, California and the year-end date is January 30. American Eagle is headquartered in Pittsburgh, Pennsylvania and their year-end date is January 30. Ralph Lauren is headquartered in New York, New York and there year-edn  date is April 3. To perform this case analysis to determine which company which is more profitable using key financial ratios and metrics accompanied with industry research and trends of the apparel retail sector. We have recreated and cleaned financial statements for Ralph Lauren and American Eagle, comparing both to Gap. Using these recreated financial statements, we have performed a case analysis of these three companies in order to find out which company was most profitable. Gap is the largest of the three with a market capitalization of nearly 16 billion while Ralph Lauren comes in second with roughly 15 billion market capitalization. Although Gap leads with market capitalization, American Eagle generates the most revenue that leads to highest net income as well, compared to both Gap and Ralph Lauren. Ralph Lauren does not lead these companies with its revenues and income but rather with its margins. They are consistently above the industry average and are also much higher relative to the other companies we analyzed. Ralph Lauren also shows the best percentage of sales growth in the past fiscal years. Sales Growth3 Yr Trend Polo14.3%21.8% American Eagle0.9%6.5% Gap-2.3%3.3% For apparel retailers, new fashion trends and steady flow of promotions will help a low single digits increase in sales in 2012. This is what you see with Gap and American Eagle they do not show major increases in sales growth but on steadily rising at roughly 5% in the three year trend. Ralph Lauren shows a jump of 7% which could be due to the luxury brand section of retail section because of the opportunities in emerging markets such as Asia and Latin America according to industry reports. American Eagle plans on accelerating growth through internet sales. This generates higher margins for the company, last year it accounted for 12% of company revenues. This trend is also apparent in the other two companies because most retailers want to offer the convenience of online shopping to customers. The online channel provides a cost effective way for retailers to widen their reach  across existing and new markets. Gap intensified its international strategy as well, opening stores in Eur ope and China, and outlets; accompanied by an e-commerce platform in Canada, Europe, and China. The company has 22% of sales from regions outside the US, up 7.6% from the year-ago period. This industry shows a thrust of penetration in the international markets looking to increase in the next few years. Teenagers also play an important role in the industry trends. With 7.1% of US population they have been a powerful force in retail with the leading beneficiaries being Gap, Abercrombie, American Eagle, and Urban Outfitters. This ties sales growth for both Gap and American Eagle due to a majority of the teen population shopping at these two companies. Helping increase sales growth and produce for revenues for the firm. The biggest window for opportunity in the retail sector seems to be the overseas markets but especially China, according to the S&P industry reports. Gap’s profitability has grown over the past three years showing larger EBIT and EBITDA margins which shows strong management and healthy earnings. Ralph Lauren is also growing profitably as well as their margins have increased with time. American Eagle has been on teetering between being profitable and running efficiently to stay in the game. Net Income Growth3 Yr Trend Polo18.4%20.0% American Eagle-16.8%7.9% Gap14.0%9.3% On the margin side of things Polo seems to be the best company, this is because they are a luxury brand which tends to have higher margins. This makes up for their lack of revenues because people buy less quantity of the luxury brands and tend to buy more of the standard products that are affordable and still have above average quality, such as Gap Inc. and American Eagle. The industry research showed that the recent drop in cotton prices will help retail companies enormously in profit margins. This will help companies such as Gap and American Eagle more than luxury brands like Ralph Lauren. This is shown in Gap’s trends in the past years for EBIT Margins; in 2009 they had 10.7% which increased to 12.8% in 2010; this is a 2.1% increase. This increased another .6% to 13.4% in 2011, this can be  projected to grow even more in 2012 with more drops in the cotton prices. Gap reported that two-thirds of their increases were in the drop in cotton prices. Polo has also seen increases in EBIT margins but not in such a drastic change. From 2010 to 2011 they had a .7% increase on EBIT margin and then slowed down to a .2% growth from 2011 to 2012. This is because they were less affected by the change in cotton prices. American Eagle showed a decrease in EBIT margins in 2012 with a change of -3.4%. This loss should not be as great as reported because in 2012 they had a loss on impairment of assets which is not a recurring expense. EBIT Margin3 Yr Trend Polo14.7%15.4%15.6% American Eagle10.6%10.7%7.3% Gap10.7%12.8%13.4% EBITDA margin adds back the expenses taken out from depreciation and amortization, two non-cash expenses. Adding back those two expenses increases both companies EBIT margins by 4-5% for the three years analyzed. Ralph Lauren’s EBITDA margins seem to be declining in the three year trend which could raise questions about their assets and property plant and equipment expenses being raised. On the other hand you can see Gap showing strong 1-2% increases in both EBIT and EBITDA. Another key metric of financial profitability of a firm is earnings per share. Ralph Lauren’s earning per share is $7.09, as they are a more profitable firm within the industry and do not have a lot of debt on their balance sheet, with little leverage, is the reason there earnings per share are consistent and usually higher than the other two firms. Gap’s earning per share comes in at $2.05, they do not carry a lot of debt on their statements which means they don’t carry much leverage as well, giving them a decent earnings per share. They also repurchased stocks from the public which is another reason the earnings per share are moderately low. American Eagle had a earning per share of $0.96, this is due to the fact that they have more shares outstanding than their net income at the end of each year. They also carry no debt on their balance sheet so do not need to leverage themselves. EBITDA Margin3 Yr Trend Polo19.4%19.0%18.3% American Eagle15.2%15.4%11.8% Gap15.1%17.5%17.9% Return on Equity shows how the company is profitable compared to their equity. Ralph Lauren and Gap have shown substantial growth on this in the past three years. This is due to their growth in sales due to expanding sales into emerging markets such as Asia and Latin America, while maintaining level equity in their companies. Gap was also able to buy back some stock which made them able to increase their return on equity. American Eagle has stayed constant the past three years, this happened because they increased equity similar to their increase in net sales. Return on assets shows how the company is profitable compared to their assets. Gap increased their return on assets because they closed numerous shops around the world that were not performing to their standards and also leasing all of their stores. This decreased their assets while maintaining high sales which gave them a better return on assets. Polo was able to increase return on assets by 1% each year, they were able to do this by having sufficient sales growth. The return on assets is also improved because many retail companies entered the fall season with inventory levels in line with sales trends. This means that companies are not over producing product so they are able to sell their product at a maximum price, this maximizes their sales in which maximizes their return on assets. This has the same effect on return on equity. ROE3 Yr Trend Polo15.4%17.2%18.6% American Eagle10.7%10.4%10.7% Gap22.0%22.5%29.5% ROA 3 Yr Trend Polo10.3%11.4%12.6% American Eagle7.9%7.5%7.8% Gap12.8%13.8%17.0% While analyzing financial leverage Polo has the most debt to equity on its balance sheets ranging in 8-9%. Compared to American Eagle and Gap which has little to no debt ranging from 0-1%. Gap has most likely paid of its debts from previous years and now rent their property and stores eliminating the cost of long term debt. American Eagle is very similar with actually 0% debt in the three year trend. Polo is a moderately leveraged company which brings on the additional risk of carrying debt, although can boost earnings per share for profitability. Maximizing sales by keeping inventory levels in line with sales trends helped maximize these companies leverage. Companies that over produce products have to sell at discounts to get rid of inventories; this is not good because they lose out on profits and do not maximize their leverage. Also companies that do not produce enough products lose out on sales; this also does not maximize leverage. All three of these companies were able to keep their inventories in line with sales trends. Gap was able to decrease their debt to equity by buying back stock and maintaining a normal level of debt. Polo was able to decrease their debt to equity by buying back some stock and maintaining a level amount of debt. Debt to Equity 3 Yr Trend Polo9.0%9.0%8.0% American Eagle0.0%0.0%0.0% Gap1.0%0.0%0.0% All of these companies had similar ideas with their cash activities regarding buying back shares in 2011. American Eagle has the best position on cash, this is due to that they have no debt to pay back so all of their cash back into the company or into dividends. American Eagle bought back shares in 2011 to possibly help raise earnings per share. Gap also has a good cash flow; they also did the same thing and bought back shares in 2011. Polo was the worst out of the three but is still in good standing; they followed suit and also bought back shares in 2011. It is important for Polo to have a good cash flow because they still have long-term debts to pay back. Ending Cash Balance201020112012 Polo $ 95.7 $ (123.3) $ 228.0 American Eagle $ 2,317.9 $ (63.2) $ 511.5 Gap $ 620.0 $ (812.0) $ 307.0 We expect Gap to be the most profitable because they have high revenues, little to no debt, in good standing with creditors, and have good margins. This is better than Ralph Lauren because industry research shows that luxury brands will slow in growth while standard brands will continue to grow. Although Gap does not have the highest sales growth their market capitalization will help them succeed in emerging markets such as Asia and Latin America. Also with the decrease in cotton prices Gap is now able to have larger profit margins while keeping a lower priced product with the same quality. This increase in profit margins Gap will be able to generate the most amount of cash flow. With the trends continuing with their margins combined with the growth of new markets their cash flow will increase substantially. Ralph Lauren has been noted so have some corporate social responsibility problems in Indonesia where they have broken up unions that have tried to improve working conditions. This issue as well as others should be considered because more and more people now a day are taking into consideration the companies CSR before buying their product. Gap Inc. sets a high standard for their manufactures to up hold health and safety standards. They admit that some places still do not follow these regulations but Gap puts in a lot of resources into fixing them or even terminating the business with them. This is good because they are socially responsible and are willing to terminate business to stay responsible. Most companies try to stay socially responsible by implementing certain regulations for working conditions in third world countries so they do not bad mouth their own firm. The International Labor Organization and United Nations try to keep them in check in order to protect people and the en vironment. The information that we would like to request from senior management at each firm would be the growth forecasts and document containing information about international expansion. It seems apparent that international markets are next big opportunity for the retail sector to increase revenues and income for most firms in this sector. This would help us invest in the company that will grow larger in the years to come as well as forecast numbers for potential growth which would help with our decision making process.

Key Performance Indicators (KPIs) Essay

Key Performance Indicators (KPIs) are quantitative and qualitative measures used to review an organization’s progress against its goals. These are broken down and set as targets for achievement by departments and individuals. The achievement of these targets is reviewed at regular intervals. KPIs are used to monitor the performance of a company, department, process or even an individual machine. They will also help shape the behaviors of employees within the company. KPIs need to be flexible and reflect the changing goals of the organization. Goals change as the organization changes in reaction to external factors or as it gets closer to achieving its original goals. Individual KPIs need to be directly linked to organization goals and objectives, or overall organization KPIs where they are used. They need to reflect organization culture and values, by indicating the types of behavior and performance the organization will recognize as ‘successful’ and reward employees for. KPIs need to be measurable and reflect a balance between operational and people orientated measures. KPIs are a fundamental component of sustaining a change process and maintaining a performance management culture. KPIs should be aligned with the organization’s vision and direction. When performance is measured, and the results are made visible, organizations can take action to improve. SMART KPIs The acronym SMART is often used to describe KPIs. Specific Measurable Achievable Relevant Timely Specific KPIs need to be specific to the individual job and if possible expressed as statements of actual on-the-job behaviors. For example, a KPI should: Explain clearly to the employee what he/she has to do in terms of performance to be successful Have an impact on successful job performance, that is distinguishing between effective performance and ineffective performance  Focus on the behavior itself, rather than personality attributes such as ‘attitude to customers’. Terms such as ‘work quality’, and ‘job knowledge’ are too vague to be of much use. Measurable KPIs must be measurable, that is based on behavior that can be observed and documented, and which is job-related. They should also provide employees with ongoing feedback on their standard of performance. Achievable Performance management needs to be an open, collaborative communication process. KPIs must be seen by all that they are achievable. The KPI must be realistically achievable. If it is set too high for the circumstances (such as an ambitious production target), not only will it be irrelevant but it will ensure failure. Relevant It is essential that employees clearly understand the KPIs, and that they have the same meaning to both parties. Consultation is more likely to result in standards that are relevant and valid. Timely KPIs should have an appropriate time frame. It should be possible to collect the relevant information either ‘as it happens’ or within a short time afterwards, otherwise it will lose its relevance. As outputs of the performance management system, KPIs also need to be in alignment with other HR-related functions, including training and development, recruitment and selection, rewards and recognition, and career planning. Business aspects that require KPIs KPIs should cover every aspect of the business. Sample examples are Customer satisfaction Employee satisfaction Staff turnover Absenteeism Department/division specific measures Triple bottom line: financial, environmental and social responsibility Finance including revenue and costs OHS reporting including incidents and related costs Equipment usage and OEE Maintenance costs and effectiveness New product development & innovation Lead times and down times Quality KPI components KPIs should identify the required outcomes, for example: The minimum acceptable performance e.g. daily break even point Target performance eg desired daily output. KPIs should: Be communicated to all staff so that they are aware of how they are to be measured and how their KPIs impact on the organization as a whole Be aligned with the vision and direction of the organization Have relevant reward and recognition criteria linked to each KPI. When implementing new KPIs, having baseline data to measure improvements is very important. Progress on KPIs should be communicated at regular times to highlight emerging trends. As these trends emerge, corrective action can be implemented in a timely fashion. KPIs need to be communicated via multiple media. The measures that are selected must be carefully specified to ensure they do not cause non-lean behaviors. In many cases there will need to be a selection of measures that balance quality and quantity factors to ensure the correct behaviors are encouraged. Listed below are some examples of the behaviors and outcomes that measure in isolation can cause. Measure in isolation Behavior Outcome Production output Make more Overproduction Machine efficiency Run machine longer Run in most efficient sequence for machine Unnecessary stock Customer orders late Maintenance costs Reduction in maintenance activities to reduce costs Machine breakdowns Cash flow performance Pay suppliers as late as possible Supplier deliveries XX unreliable Creating KPIs KPIs must be designed for each proposed change to the production process so that: There is a base line measurement taken to establish a starting performance standard There are measures developed to track the team’s  performance There are measures established that can highlight any variability. This can assist in future diagnoses Reward and recognition can be effectively implemented. Before data is collected three questions need to be asked. What is the purpose of collecting this data? Will this data tell us what we want to know? Will we be able to act on the data we collect? The goal is to create an easy-to-use, accurate measurement system with as few measures as possible. The following questions need to be answered when setting up a data collection system: What type of metric is it (financial, behavioral or core-process)? Why was it selected? Where will the data be collected? How will it be collected? How often will it be collected? How often and where will the metric be displayed? Who will use it? KPI examples Some examples of measures that can be used to monitor the performance of a competitive manufacturing company are listed below. Financial Examples Costs Material costs Labor costs Operations costs Inventory Overtime Warrantee costs Cost of Sales Interest on overdraft Number of projects completed on time and on budget Revenue Sales Gross margins Return on assets or investment Product profitability Team metrics Overtime Material costs Revenue generated by team Inventory value in team’s area Number of projects completed on time and on budget Core metrics Examples OHS Lost time injuries Number of staff off work Length of time staff are off work DIFOT Delivery in full on time Quality First time through quality Yield Lead-time Order to cash in bank Raw material to dispatch Dock to dock Inventory Inventory turnover rate OEE Overall equipment effectiveness Schedule performance % Changes to the weekly schedule Value added ratio Ratio of value adding time to lead time Team metrics Turnaround time for jobs Output rates Quality rates Equipment OEE Attendance rates Schedule compliance Customer feedback Number of deadlines/milestones met Metrics relating to specific team tasks Behavioral metrics Examples Employee satisfaction Gained from regular Employee Satisfaction Surveys Staff turnover rates Participation levels in improvement activities Customer satisfaction Gained from regular Employee Satisfaction Surveys Retention rates Skill uptake Skill matrices Absenteeism Absenteeism Error rates Error rates Time spent on managing under-performing staff Team metrics Number of team meetings Members at team meetings Number of ideas generated Number of ideas implemented Total Savings generated