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CORPORATE PERFORMANCE IN DIFFERENT SCENARIO, GOVERNANCE, AND BUSINESS ETHICS
Most of the manager should do to maximize the long run profitability of their company. The reality, however, is that company find it very difficult to earn a rate of return that exceeds their cost of capital, in other words, they are not very profitable. In most industries, there is campiness that is unable to generate a return on invested capitals that exceeds their cost of capital and therefore are not performing its primary rivals in the global industries.
The causes of poor performance:
i. Six causes of persistent poor performance stand out in most case studies of persistent poor performance. Poor management ii. A high cost structure iii. A lack of adequate differentiation iv. Over expansion
v. Structural shifts in demand and new competitors vi. Organization inertia
1. Poor management
It covers a multitude of sins, ranging from the sheer incompetence to neglect of the core business and insufficient number of good managers. One person rule is not necessarily a bad thing, but it often seems to be the root of poor management.
In a review of empirical studies of turnaround situation, Richard Hoffman identified a number of management defects commonly found in poorly performing companies. These include a lack of balance expertise at
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The two main causes of a high cost structure are low labor productivity and low capital productivity. Low labor productivity may stem from union imposed restrictive working factors. Low capital productivity can be due to barrier to fully used fixed asset of company, such assets property, land and equipment. For example, a failure to use production capacity fully because of low market share can result in inability to attain economic of scale and high unit product. Low capital productivity can also be due to a failure to minimize working
Most companies’ primary goal is to maximise profit in order to remain competitive in the market. The concern usually arises in the measures and approaches companies take to achieve that goal and how it will benefit in the short-term and long-term process. (Eccles, 2011)
1. Why do you think the autocratic approach worked effectively for four years in this situation?
Many people believe that in order to succeed in a business that is having difficulties, it is important to focus on a particular area in order to be better productive in each of them, and be able to reach the goal. Instead, Goldratt and Jonah demonstrates that is important to focus on the company as a whole, but at the same time, it shows that it is incorrectly to only focus in an specific manufacturing department, or one plant, or a department within the plant, because people should not be concerned in local optimums.
Case management refers to when a person or people in need require an environmental intervention. The Conrad Hilton Association defines case management as “one of the primary services offered to individuals and families who face multiple challenges, including severe mental illness, addiction, and homelessness.” Case management often helps those who are struggling or who are in need, however, the term tends to be used very loosely within organizations.
PROBLEM : What effective management control system or systems should the Company adopt to attain maximum profitability not only of its divisions’ respective operations but that of the Company as a whole?
Implementation of organizational growth falls to the responsibility of upper management and they develop the strategic plan for the company to flourish in the projected economic market. Oversight of this senior team can hinder the organizational projected strategy into a viable organizational process that today’s global market places high demands that make it very difficult to attain these goals or plans and bring all effort to no avail of achieving projected growth and strategy of the organization. Essential that key employees do not lack the skill to delegate responsibility as well as expect results that promote organizational growth and adherence to the strategy set by senior
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
The company has a clear lack of vision. This is because since the loss of Mr. McFettridge, the vision and plans he had are not known to anyone. This exposes the lack of structured top management. Also, the top management is having a lot of young employees which are accustomed to doing a clerical job. Their decision making skills are not developed due to improper mentoring. The work processes are more individual driven then system driven.
Every company has some kind of Revenue and they all have costs that are associated with running the company. It is also true that if a company wants to increase their Revenue, their costs will increase too. It is every company’s goal to maximize revenue and either through Production or Services, and minimize cost. These things are easy to figure out, but actually identifying the production and figuring out how it will increase or decrease with change is very difficult.
Being a leader means you guide others to achieve a goal and complete tasks. A leader will use communication strategies to convey what is expected from employees such as priorities or timelines. The communication strategies that will be discussed are motivation of employees, listening, showing confidence and having work knowledge. I will focus on a virtual office setting since I work remotely. Also a case study analysis will discuss what one leader can do differently to effectively lead his staff.
One reason of failure may be the problem of communication through the company which may create an unfriendly working environment. In the presence of a high risk of losing their jobs,it is a difficult task to keep people motivated in doing their best at their working places.(Bulent 2005; Buono & Bowditch 2003).
In order for any company to succeed there are a lot of things that require to be done. Looking at McDonalds’s, you will realize that the management has put a lot efforts to ensure that the company has incorporated managerial economics in its operation. This is one of the reasons why the company has attained great success that most other companies have not been able to. There are different topics within a company that can determine how managerial economics is incorporated in a company. Spear Company limited is a company that deals with production of clothes and it has been operation since 1990. The company has borrowed a lot of its managerial issues from McDonalds’s. To bring this issues well let us look at how the company
To transform a good company to great company is all manages’ dream, but only few of them make it. To find out the core factors which lead to a good company became a great company is very difficult, because in different era, different industry companies face different opportunities and threats. To begin the research for the Good-to-Great study, Jim Collins and his research team searched for companies that: performed at or below the general stock market for at least fifteen years; then at a transition point began to pull away from the competition, and sustained returns of at least 3 times the general market for the next fifteen years. He started with a list of 1,435 companies and found eleven that met his criteria. These eleven companies produced, on average, a return of 6.9 times the general stock market during the 15 years following the transition points. Collins chose a 15-year span to avoid "one-hit wonders" and lucky breaks. In the book, Collins highlights some important factors which are the result of the research. They are level 5 leadership, fist who … then what, confront the brutal facts, the hedgehog concept, culture of discipline, and technology accelerators, (Collins, 2001, p.12).
The formation of organization implies that a leader should take the role to control the activities of the group; the work done by the leader is what we call management.
Yawson, A. (October 20, 2004). Performance shocks, turnaround strategies, and corporate recovery: Evidence from Australia. Retrieved July 18, 2005 from http://64.233.161.104/search?q=cache:2aoQ4Wn2y8MJ:wwwdocs.fce.unsw.edu.au/banking/workpap/wp%252010%25202004.pdf+australian+strategies+corporate+restructuring&hl=en&ie=UTF-8