Diagnosing the situation or identifying what needs to change Understanding assumptions and analyzing the real areas for change is of paramount; without proper analysis; preconceived ideas form basis for change and addressing change without regards to identification of real gaps will end up moving the organization backwards. Drucker (1994) calls the theory of the businesses, no longer fit reality. The main analysis should look into and challenge what the organization considers meaningful results, what markets to serve, which the organization's competitors and customers are; further on analyze what technology counts and what a company's strengths and weaknesses
A union may try to improve wages and working conditions in order to be consistent with a comparable union whose members are paid higher (Samson and Daft, 2002). 3) Changing how people think about inputs or outcomes: According to research, people may alter perceptions of equity if they are unable to change efforts or outcomes (Samson and Daft, 2002). Thus, individuals may unnaturally increase the status attached to their jobs or distort others’ perceived rewards to ensure equity. 4) Leaving: Individuals who feel they lack equity in the work place may choose to quit their jobs rather than bearing the inequity of being underpaid or overpaid. They may seek balance of equity applying for new jobs.
Firstly, there should be realistic goals set: a company must ration its own resources by setting goals and objectives which are reasonably attainable. Unrealistic projections can cause unreliable records of purchases and/or confusion amongst employees. Research into the previous year is also important. A budget can reflect a clear understanding of past results but also a sense of expected future changes. It can be said that previous results cannot be a definite predictor; they can certainly flag important benchmarks.
One important thing to consider is that companies will sometimes use total sales instead of net sales when calculating their ratio, which generally inflates the turnover ratio. While this is not always necessarily meant to be deliberately misleading, one should generally try to ascertain how a company calculates their ratio before accepting it at face value, or otherwise should calculate the ratio independently. Another important consideration is that accounts receivable can vary dramatically over the course of the year. This means that if one picks a start and end point for calculating the receivables turnover ratio arbitrarily, the ratio may not reflect the true climate of the company’s issuing of and collection on credit. As such, the beginning and ending values selected when calculating the average accounts receivable should be carefully picked so as to represent the year well.
The investors may query the going concern status of Whitbread. In addition, the price setters in the company may give biased judgements on the price due to the frequently economical changes. The principal problem is how to estimate the proper prices under different economic situations which can both attain profits and attract more customers. The managers in the company should catch up on variation of economic climate and timely make the corresponding
Before an organisation can bring about its environmental issues, it needs to identify how it co-operates with the environment. The standard uses some specific terms in this process. Environmental features are elements of an organisation’s activities, products and services that can interact with the environment that can either have a negative or positive environmental impact. Implementation This is the identification of the actual and possible environmental effects, how the organisation co-operates with the environment and other requirements. Resources typically include people, specialised skills and knowledge, organisational infrastructure, technology and money.
Apparently, profits await but net losses as well if you are not prepared and did not do your homework on these various pricing models. Look at your service in a fresh perspective and think of the delivery costs. Weigh the advantages and disadvantages if you are to hire additional technicians versus outsourcing back-end support from Network Operations Center or a Service Desk. This will also have an effect on your pricing decisions. Building a Service
The budget should be reviewed at adjusted from time to time to make it more relevant. The short-term orientation of budgetary controls is usually considered to be dysfunctional, but we have to take note that in certain situations, it is necessary for an urgent recovery from under performing. As of today, budgetary controls are given great importance in overall organisation control. They have many disadvantages to them yet they have been an effective method in meeting the objectives of firms. These disadvantages cannot be ignored, and as soon as there is a more effective way of controlling the organisation, I believe that firms will still continue to use budgets but may not give them as much importance as they have
For example: Some managers do focus on the identification of specific revenue regardless of the method of profit and how. Conversely employee may act unethically to reach the target with the omission of the importance of the moral aspect of business dealings. Too many goals, here is the employee in the case of dispersion due to the large number of desired goals. Because of employee tendency to focus on one goal makes the other goals prone to ignore. It may cause a problem for the employee follow-up of these objectives at one time.
Explain the process of environmental assessment. What are the major international variables to consider in the scanning process? Discuss the levels of environmental monitoring that should be conducted. How well do you think managers conduct environmental assessment? Answer: Environmental assessment is the process of accumulating information and anticipating and assessing information about variables and occasions the world over may pose opportunities or dangers to the firm.