Reducing Electrovision’s Travel and Entertainment Costs Essay

Reducing Electrovision’s Travel and Entertainment Costs Here is the report you requested January 30 on Electrovision’s travel and entertainment costs. Your suspicion was right. We are spending far too much on business travel. Our unwritten policy has been â€Å"anything goes,† leaving us with no real control over T&E expenses. Although this hands-off approach may have been understandable when Electrovision’s profits were high, we can no longer afford the luxury of going first class. The solutions to the problem seem rather clear. We need to have someone with centralized responsibility for travel and entertainment costs, a clear statement of policy, an effective control system, and a business-oriented travel service that can optimize our travel arrangements. We should also investigate alternatives to travel, such as videoconferencing. Perhaps more important, we need to change our attitude. Instead of viewing travel funds as a bottomless supply of money, all traveling employees need to act as though they were paying the bills themselves. Getting people to economize is not going to be easy. In the course of researching this issue, I’ve found that our employees are exceedingly attached to their first-class travel privileges. I think they would almost prefer a cut in pay to a loss in travel moderation. One thing is clear: People will be very bitter if we create a two-class system in which top executives get special privileges while the rest of the employees make the sacrifices. I’m grateful to Mary Lehman and Connie McIlvain for their help in collecting and sorting through five years’ worth of expense reports. Their efforts were truly Herculean. Thanks for giving me the opportunity to work on this assignment. It’s been a real education. If you have any questions about the report, please give me a call. This report analyzes Electrovision’s travel and entertainment (T&E) costs and presents recommendations for reducing those costs. Travel and Entertainment Costs Are Too High Travel and Entertainment is a large and growing expense category for Electrovision. The company spends over $16 million per year on business travel, and these costs have been increasing by 12 percent annually. Company employees make roughly 3,390 trips each year at an average cost per trip of $4,720. Airfares are the biggest expense, followed by hotels, meals, and rental cars. The nature of Electrovision’s business does require extensive travel, but the company’s costs appear to be excessive. Every year Electrovision employees spend more than twice as much on T&E as the average business traveler. Although the location of the company’s facilities may partly explain this discrepancy, the main reason for Electrovision’s high costs is the firm’s philosophy and managerial style. Electrovision’s tradition and its hands-off style almost invite employees to go first class and pay relatively little attention to travel costs. Cuts Are Essential Although Electrovision has traditionally been casual about travel and entertainment expenses, management now recognizes the need to gain more control over this element of costs. The company is currently entering a period of declining profits, prompting management to look for every opportunity to reduce spending. At the same time, rising airfares and hotel rates are making travel and entertainment expenses more important to the bottom line. Electrovision Can Save $6 Million per Year  Fortunately, Electrovision has a number of excellent opportunities for reducing its travel and entertainment costs. Savings of up to $6 million should be achievable, judging by the experience of other companies. American Express suggests that a sensible travel-management program can save companies as much as 35 percent a year (Gilligan 39-40). Given that we purchase many more first-class tickets than the average company, we should be able to achieve even greater savings. The first priority should be to hire a director of travel and entertainment to assume overall responsibility for T&E spending. This individual should establish a written travel and entertainment policy and create a budget and a cost-control system. The director should also retain a nationwide travel agency to handle our reservations and should lead an investigation into electronic alternatives to travel. At the same time, Electrovision should make employees aware of the need for moderation in travel and entertainment spending. People should be encouraged to forgo any unnecessary travel and to economize on airline tickets, hotels, meals, rental cars, and other expenses. In addition to economizing on an individual basis, Electrovision should look for ways to reduce costs by negotiating preferential rates with travel providers. Once retained, a travel agency should be able to accomplish this. Finally, we should look into the alternatives to travel. Although we may have to invest money in videoconferencing systems or other equipment, we may be able to recover these costs through decreased travel expenses. I recommend that the new travel director undertake this investigation to make sure it is well integrated with the rest of the travel program. These changes, although necessary, are likely to hurt morale, at least in the short term. Management will need to make a determined effort to explain the rationale for reduced spending. By exercising moderation in their own travel arrangements, Electrovision executives can set a good example and help other employees accept the changes. On the plus side, cutting back on travel with videoconferencing or other alternatives will reduce the travel burden on many employees and help them balance their business and personal lives much better. Electrovision has always encouraged a significant amount of business travel, believing that it is an effective way of operating. To compensate employees for the inconvenience and stress of frequent trips, management has authorized generous travel and entertainment (T&E) allowances. This philosophy has been good for morale, but the company has paid a price. Last year Electrovision spent $16 million on T&E–$7 million more than it spent on research and development. This year the cost of travel and entertainment will have a bigger impact on profits, owing to changes in airfares and hotel rates. The timing of these changes is unfortunate because the company anticipates that profits will be relatively weak for a variety of other reasons. In light of these profit pressures, Dennis McWilliams, Vice President of Operations, has asked the accounting department to take a closer look at the T&E budget. Purpose, Scope, and Limitations The purpose of this report is to analyze the T&E budget, evaluate the impact of recent changes in airfares and hotel costs, and suggest ways to tighten management’s control over T&E expenses. Although the report outlines a number of steps that could reduce Electrovision’s expenses, the precise financial impact of these measures is difficult to project. The estimates presented in the report provide a â€Å"best guess† view of what Electrovision can expect to save. Until the company actually implements these steps, however, we won’t know exactly how much the travel and entertainment budget can be reduced. Sources and Methods In preparing this report, the accounting department analyzed internal expense reports for the past five years to determine how much Electrovision spends on travel and entertainment. These figures were then compared with average statistics compiled by Dow Jones (publisher of The Wall Street Journal) and presented as the Dow Jones Travel Index. We also analyzed trends and suggestions published in a variety of business journal articles to see how other companies are coping with the high cost of business travel. Report Organization This report reviews the size and composition of Electrovision’s travel and entertainment expenses, analyzes trends in travel costs, and recommends steps for reducing the T&E budget. Although many companies view travel and entertainment as an â€Å"incidental† cost of doing business, the dollars add up. At Electrovision the bill for airfares, hotels, rental cars, meals, and entertainment totaled $16 million last year. Our T&E budget has increased by 12 percent per year for the past five years. Compared with the average U.S. Business’s travel expenditures, Electrovision’s expenditures are high, largely because of management’s generous policy on travel benefits. $16 Million per Year Spent on Travel and Entertainment Electrovision’s annual budget for travel and entertainment is only 8 percent of sales. Because this is a relatively small expense category compared with such things as salaries and commissions, it is tempting to dismiss T&E costs as insignificant. However, T&E is Electrovision’s third-largest controllable expense, directly behind salaries and information systems. Last year Electrovision personnel made about 3,390 trips at an average cost per trip of $4,720. The typical trip involved a round-trip flight of 3,000 miles, meals and hotel accommodations for two or three days, and a rental car. Roughly 80 percent of the trips were made by 20 percent of the staff–top management and sales personnel traveled most, averaging 18 trips per year. Figure 1 illustrates how the travel and entertainment budget is spent. The largest categories are airfares and lodging, which together account for $7 out of every $10 that employees spend on travel and entertainment. This spending breakdown has been relatively steady for the past five years and is consistent with the distribution of expenses experienced by other companies. Figure 1 Airfares and Lodging Account for Over Two-Thirds of Electrovision’s Travel and Entertainment Budget Although the composition of the T&E budget has been consistent, its size has not. As mentioned earlier, these expenditures have increased by about 12 percent per year for the past five years, roughly twice the rate of the company’s growth in sales (see Figure 2). This rate of growth makes T&E Electrovision’s fastest-growing expense item. Figure 2 Travel and Entertainment Expenses Exceed National Averages Electrovision’s Travel Expenses Exceed National Averages Much of our travel budget is justified. Two major factors contribute to Electrovision’s high travel and entertainment budget: †¢With our headquarters on the West Coast and our major customer on the East Coast, we naturally spend a lot on cross-country flights. †¢A great deal of travel takes place between our headquarters here on the West Coast and the manufacturing operations in Detroit, Boston, and Dallas. Corporate managers and division personnel make frequent trips to coordinate these disparate operations. However, even though a good portion of Electrovision’s travel budget is justifiable, our travelers spend considerable more on travel and entertainment than the average business traveler (see Figure 3). Figure 3 Electrovision People Spend Over The Dow Jones Travel Index calculates the average cost per day of business travel in the United States, based on average airfare, hotel rates, and rental car rates. The average fluctuates weekly as travel companies change their rates, but it has been running about $1,000 per day for the last year or so. In contrast, Electrovision’s average daily expense over the past year has been $2,250—125 percent higher than average. This figure is based on the average trip cost of $4,720 listed earlier and an average trip length of 2.1 days. Spending Has Been Encouraged Although a variety of factors may contribute to this differential, Electrovision’s relatively high T&E costs are at least partially attributable to the company’s philosophy and management style. Because many employees do not enjoy business travel, management has tried to make the trips more pleasant by authorizing first-class airfare, luxury hotel accommodations, and full-size rental cars. The sales staff is encouraged to entertain clients at top restaurants and to invite them to cultural and sporting events. The cost of these privileges is easy to overlook, given the weakness of Electrovision’s system for keeping track of T&E expenses: †¢The monthly financial records provided to management do not contain a separate category for travel and entertainment; the information is buried under Cost of Goods Sold and under Selling, General, and Administration Expenses. †¢Each department head is given authority to approve any expense report, regardless of how large it may be. †¢Receipts are not required for expenditures of less than $100. †¢Individuals are allowed to make their own travel arrangements. †¢No one is charged with the responsibility for controlling the company’s total spending on travel and entertainment. During the past three years, the company’s healthy profits have resulted in relatively little pressure to push for tighter controls overall aspects of the business. However, as we all know, the situation is changing. We’re projecting flat to declining profits for the next two years, a situation that has prompted all of us to search for ways to cut costs. At the same time, rising airfares and hotel rates have increased the impact of T&E expenses on the company’s financial results. Lower Profits Underscore the Need for Change The next two years promise to be difficult for Electrovision. After several years of steady increases in spending, the Postal Service is tightening procurement policies for automated mail-handling equipment. Funding for the A-12 optical character reader has been canceled. As a consequence, the marketing department expects sales to drop by 15 percent. Although Electrovision is negotiating several promising R&D contracts with nongovernmental clients, the marketing department does not foresee any major procurements for the next two to three years. At the same time, Electrovision is facing costs increases on several fronts. As we’ve known for several months, the new production facility now under construction in Salt Lake City, Utah, is behind schedule and over budget. labor contracts in Boston and Dallas expire within the next six months, and plant managers there anticipate that significant salary and benefits concessions may be necessary to avoid strikes. Moreover, marketing and advertising costs are expected to increase as we attempt to strengthen these activities to better cope with competitive pressures. Given the expected decline in revenues and increase in costs, the Executive committee’s prediction that profits will fall by 12 percent in the coming fiscal year does not seem overly pessimistic. Airfares and Hotel Rates Are Rising Business travelers have grown accustomed to frequent fare wars and discounting in the travel industry in recent years. Excess capacity and aggressive price competition, particularly in the airline business, made travel a relative bargain. However, that situation has changed, as weaker competitors have been forced out and the remaining players have grown stronger and smarter. Airlines and hotels are better at managing inventory and keeping occupancy rates high, and high occupancy translates into higher prices because suppliers have les reason to compete on price. Last year saw some of the steepest rate hikes in years. Business airfares (tickets most likely to be purchased by business travelers) jumped over 40 percent in many markets. The trend is expected to continue, with rates increasing another 5 to 10 percent overall (Phillips 331; â€Å"Travel Costs Under Pressure† 30; Dahl B6). Given the fact that airfare and hotel costs account for 70 percent of Electrovision’s T& E budget, the trend toward higher prices in these two categories will have serious consequences on the company’s expenses unless management takes action to control these costs. By implementing a number of reforms, management can expect to reduce Electrovision’s T&E budget by as much as 40 percent. This estimate is based on the general assessment made by American Express (Gilligan 130-140) and the fact that we have an opportunity to significantly reduce air travel costs by reducing or eliminating first-class travel. However, these measures are likely to be unpopular with employees. To gain acceptance for such changes, management will need to sell employees on the need for moderation in travel and entertainment allowances. Four Ways to Trim Expenses By researching what other companies are doing to curb travel and entertainment expenses, the accounting department has identified four prominent opportunities that should enable Electrovision to save about $6 million annually in travel-related costs.

Soical Issues

World Religions – Social Justice Issue Paper Legalization of Marijuana Introduction: Tracey Martin Every Religion demonstrates unique aim to adhere to specific way of living. â€Å"Typically, members of the Religious institutes either take vows of evangelical chastity, poverty and obedience (the â€Å"Evangelical Counsels†) to lead life in imitation of Christ Jesus or those following the Rule of SST. Benedict, the vow of obedience, stability (that is.To remain with this particular community till death and not seek to move to another), and â€Å"conversion of life†which implicitly includes the counsels of chastity and evangelical poverty' (Booker, 2003). â€Å"The golden rule exists in all Religions in some form. It is a statement, in summary, of the basic requirement for all human behavior. It appears sometimes in positive form: Jesus said, Do to others whatever you have them do to you† (Matthew 7:12). It also appears in negative form: Confucius said, â⠂¬Å"What you do not want done to you, do not do to others† (Analects 15. 3) Since this is the fundamental obligation in all religions, why are so many religions involved in so many of the most bitter conflicts in the world? â€Å"(Booker, 2003). With that question dated, we will explore and compare the view points offered by Catholicism and the United Methodist (Methodism) related to the social Justice issue around the legalization of Marijuana. Supporting Data: The controversy over the legalization of illegal drugs in the U. S. , has been an ongoing debate over the last decade or greater.From the early sass's to the sass's, Congress had enacted marijuana control laws, which saw a change in penalties for possession in the early sass's, imposing minimum sentence of 2 years for first-offense, and again increased in 1956 based on the Narcotic Control Act, which classified marijuana with iron. By 1965, the first-time drug offense carried a sentence of 5 to 20 years of imprisonmen t, and second offense carried 10-40 years. It was noted in 1956, the United States had 1. 6 million arrests, and by 1970 ‘s the annual numbers had tripled.The early sass's, President Nixon proposed the war on drugs, related to the drug epidemic, which also lead the urban American public to believe it was the cause of the increase in crime. 1971, a treaty with Columbia was signed with the United States, as the first step to the war on drugs. The goal was to raise awareness among lawmakers and to stop the production ND trafficking from the Caribbean to the United States. By the sass's, the war on drugs met challenges from the fight for power and the display of violence, observed from drug cartels.The violence and uprising led various murders from lawmakers, judges, and other public officials. Over the last few decades, noted changes with the legal status of marijuana has been seen. Eleven States have passed laws that discriminative the possession of marijuana for personal usage, and other states continue to evaluate their state policies. In the sass's, the worldwide epidemic of AID, parked the consideration for medical usage, which in 2005 policy was presented to lawmakers for consideration as the â€Å"Last Resort and Fundamental Rights†.The policy review demonstrated Cancer and Aids patients experienced signs and symptoms from treatments, and marijuana alleviated the side effects, when no other methods had been successful for treatment. The history of marijuana continues to be a political controversy in the United States, which is observed at both the state and federal levels. Lawmakers are not the only ones undecided in regard to public and medical views push for legalization. Many opinions have been documented for the acceptance and noncompliance for the legalization of marijuana.Points of view are divided in the medical communities with the psychiatric doctors pushing opposition due to substance abuse concerns in the general populations and ado lescents. Churches/ or Religious Institutes are offering opinions based on values and beliefs stemming from the religious order. The general public of the United States also seems to be divided based on familial values and beliefs or the continued awareness through media coverage and acknowledgment of divided view points. The basic view points identified for the two different religions beliefs are as follows: Catholicism – 1. Apostle Peter as its first leader. 2.Belief that Jesus Christ is Divine. 3. Transubstantiation; elements become really, truly, the body, blood, soul and divinity of Christ at consecration, Real Presence of Christ, and the sacrament. (full communion). 4. Possession of the â€Å"threefold ordained ministry'. 5. Belief that the church is the vessel and deposit fullness of the teachings of Jesus Christ. 6. A belief in the necessity and efficacy of sacraments. 7. The usage of sacred images, candles and music, often incense and water at airship. 8. Veneration of Mary, the mother of Jesus as the blessed virgin Mary. 9. The distinction between God, Saints and Virgin Mary among the Saints. 0. Seven sacraments or â€Å"sacred mysteries† Methodism: 1. Tribune God, God is one God in three persons: Father, Son, and Holy Spirit, 2. Scripture; writings of Old and New Testament inspired by God. 3. Sin, human beings are intended to bear the image of God. Sin estranges people from god and corrupts human nature from ability to heal or save ourselves. 4. Salvation through Jesus Christ; through stoning death, resurrection, presence through history and promised return. . Sanctification; draws one to Christian perfection, â€Å"habitually filled with the love of God and neighbor† and as † having the mind of Christ and walking as he walked†. . Sacraments; two recognized. 7. Free Will; free to make choices because of God's divine grace and people are truly accountable before God for their choices. 8. Grace; God gives unmerited fa vor freely to all though it may be resisted. Though the identified beliefs and practices during worship are different. The two religions identify very similar views regarding social issues. Opposing examples include: Abortion, Addiction, Capital Punishment, Suicide ND Euthanasia, War, and the threat of human life and dignity.With the examination of the two religious views regarding the legalization of marijuana. Neither one of the religions endorses the use of Marijuana or â€Å"smoking pot†. Clergy emphasize God ‘s disapproval to mind-altering drugs, and promote abstinence from the use of illegal drugs, which is considered factors for crime, disease, death and family dysfunction. Marijuana is is described as a precursor or the gateway drug to the use of other drugs. With review of Amendment 64 in Colorado though, almost all the signers are Unitarians or liberal Mainline Protestants.Nearly one third are United Methodists pastors, but presumed they do not preside over an y of the larger congregations. Also several Jewish rabbis, but no Catholic or Orthodox clergy. â€Å"Apparently there's no specific denominational official stance for or against the actual legalization. The absence of a stance is a little surprising, as Methodists were the original Prohibitionists†. (Dooley, 2013) â€Å"The traditional clergy are on stronger ground when citing the already experienced abuse of medical marijuana laws. Stronger theological insights into what a civil state could and should ban versus regulate would be lawful.Those who believe in creating a more Just and godly society need to argue for maintaining a healthy common culture of mutual responsibility that guards against vice without exceeding the state's proper vocation†. (Dooley, 2013). Both national religious institutes have made reference to the religious documents that blind their belief and values. For the Catholics documents such as traditional Papal, Conciliator and Episcopal. The Method ists cite Doctrine of Standards, and the Book of Discipline. Pope Francis quoted † In every suffering brother and sister we embrace the suffering body of Christ. Dealers of death†¦. Allow the logic of power and money',When addressing chemical addiction. United Methodists quote the church founder John Wesley † None are recognized as Methodists who did not recognize the named Standards of Doctrine†. Conclusion: In the end the same question of; why are so many religions involved in so many of the most bitter conflicts in the world? â€Å"(Booker, 2003). I think the answer is still very divided, especially when examining a social issue. The legalization of marijuana, has been controversy since it was first introduced as an alternative approach for pacific medical treatments for signs and symptoms.As lawmakers are currently divided in overall decision, it is also demonstrated thru the different religious institute, from one end of the spectrum to the other. There is a divide of opinion and focus, relating to the process and the end result. Religions are focusing on the belief, values and the good of all people. Others of the more liberal religious orders relate more to the statistics of criminal behavior, financial costs to the general pubic, and the logic of usage by an individual person as a controlled substance (comparative to alcohol consumption).Currently, there is not an agreed upon solution to the social issue of marijuana be decentralized. Many States have taken it upon themselves to make decisions at the State level, and at this time others continue to evaluate. I think this is an issue that will continue to cause great debate over the coming years, the United States is very divided, from government in Washington, Religious Institutions, and the general public views for lour against the legalization of marijuana at this time. References: Allen, J. L. (2013), Pope decries † dealers of death† opposes drug legalization, Nat ional Catholic Press

Life Science Essay Example | Topics and Well Written Essays - 250 words - 1

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Voidable Transactions Essay Example | Topics and Well Written Essays - 2250 words

Voidable Transactions - Essay Example Thus voidable transactions in general and unfair preferences in particular which are highly technical areas of insolvency legislation presuppose that there is the likelihood that individuals and businesses might become insolvent prior to formal declaration of their insolvency.2 The features that make a transaction voidable are described under Section 588 FE. This section covers all the transactions entered into on or after 23rd June 1993. Section 9 of the Act defines the term 'transaction' as one to which the 'body corporate' is a party. The transactions may include a conveyance, transfer or other disposition and a charge created or guarantee created by the body corporate. It also includes an obligation on the party of the body corporate or a release or waiver granted by the company. The term further extends to a loan extended by the body. The conditions under which a transaction becomes a voidable transaction are enumerated under Section 588 FE (2). ... Such transactions or acts done at any time after that day but on or before the day when the process of winding up began will also be treated as voidable transactions. The time period of six months is being extended to 10 years ending on the relation-back date in cases where the insolvent transaction has the effect of defeating, delaying or interfering with the rights of creditors of the company. Thus an insolvent transaction of a company entered in to during 10 years ending on the relation-back day would be considered voidable if the transaction was entered into with the specific intention of hindering the rights of the creditors of the company. Section 588FE (4) makes an insolvent transaction voidable when a related entity of the company is a party to such transaction. This Section extends the time period covering the transaction for a period of 4 years ending on the relation-back day. Under Section 588 FG a person against whom the liquidator proceeds for voidable transaction is eligible for some defenses which are available under that section. A party to a transaction will be able to defend the allegation that the transaction is voidable under the following circumstances; (i) when the party has become a party to the transaction in good faith (ii) he had no reasonable ground at the time of entering into the transaction to suspect that the company is insolvent or would potentially become insolvent (iii) there would arise no suspicion for any reasonable person and (iv) the party has made good the company with valuable consideration or altered his position based on the transaction. The party defending the voidable transaction should be able to prove all or any of these conditions to the satisfaction of the court. It was

Code of Ethics Research Paper Example | Topics and Well Written Essays - 250 words

Code of Ethics - Research Paper Example The issues have always been whether to disclose such information and to whom. For instance, is it proper to place critical loggers on devices on the network to capture all that the user types? Or say so as to see all that is shown screen capture programs those are some of privacy ethical issues that have been of concern. The other ethical issue has been promising more than they can deliver or even taking advantage of client’s ignorance to charge more fees through data manipulation. Today, IT organization can install technology to make client’s network more secure but not very secure in reality. Yet there has been the dilemma of whether to replace the present firewall just to have more billable hours. Some firms promising more than they can actually achieve to gain reputation. The final loyalty has been connected to loyalty. IT organizations with contacts for multiple clients have ethical issues to deal with. For example, should they obtain information about one of their clients that can directly affect the other client, where should their loyalty

Understand the sources of finance available to a business Assignment

Understand the sources of finance available to a business - Assignment Example External sources of funds are of two categories based on nature of the find like debt finance and equity finance. Internal sources of finance are owner’s personal savings, retained profits, working capital, suppliers’ credit and sale of assets. External sources of finance are debt finance and equity finance. Under debt finance, important sources are debentures, bank loan, bank overdraft, fire-purchase, grant, lease, venture capital, invoice discounting, factoring, and angle investors. Sources of finance under equity finance category are ordinary shares and preference share. Again, various sources under internal and external categories can also be categorized by another important parameter i.e. tenure or duration. These are long term, medium term and short term sources of finance. Long term sources of finance are equity shares, preference shares, retained profit, debentures or bonds, loan from private and public institutions, venture capital, asset selling etc. Medium te rm sources of finance are preference shares, debentures or bonds, loan from term deposits, loan from financial institutions, lease financing or hire purchase financing, foreign currency bonds and commercial borrowings. Short term sources of finance are trade credit, differed income, suppliers’ credit, customers’ advances, certificate of deposits and public deposits etc. Assessment the implications of the different sources Internal sources of fund: These are the most preferable sources of finance of any business. Internal sources are used at start up or even for expansion of business. Businesses do not have obligation to pay any interest or refund of this sources as internal sources belongs the businesses only. Therefore risk is less in these categories of sources. The businesses... Understand the sources of finance available to a business This paper will qualitatively address different sub-areas of this topic like assessing various source of finance; control, bankruptcy and legal implications of those sources; in-depth analysis of financial implications and tax effects; selection of appropriate source of finance for various projects. This paper mainly consists of qualitative discussion on these four areas. Identifying different sources of finance available to a business Finance is very much essential for a new as well as an existing business. Efficient financing is also essential in all stages of a business. Finance is required for business development, business operation and business expansion. Finance is core limiting factor to any business and hence, it is crucial a business to manage its financial resources strategically and efficiently. There are various sources of finance available to a business at different benefit and cost. Therefore, it is important for a company to choose most suitable source of finance base d on its requirement and potential to optimally utilize the resources to generate adequate return. Financing for short term projects should be done from medium term financing like bank loan, issuing of preference shares, debentures etc. Long term projects or business acquisitions can be done from issuing ordinary shares. Debt financing should be neglected for long term investments.

Promotion Strategy for Lululemon Research Paper

Promotion Strategy for Lululemon - Research Paper Example Over the years the segment of women’s athletic wear has been majorly neglected. Just like any other form of clothing women sports-wear is very different from men’s. The Lululemon logo depicts the consumer’s health consciousness and their affinity to an elite club of enlightened people who wear similar clothing. According to Nelson (2011) Lululemon’s real genius relies on their Blue-Ocean strategy, which means to create demand in markets where competition is low instead of fighting for a share in a competitive market. So Lululemon emerged as a retailer that targets this niche of women’s athletic wear, and over the years has managed to grab a notable share in the 15 billion USD market for women’s fitness clothing (Helliker, 2010). Lululemon is the first clothing retailer to have adopted the Salon Business Model—which implies that like-minded body and fashion conscious women get together (Nelson, 2011). The main purpose of such a model is to bring together like-minded people who would work together for mutual benefit that would transcend the benefit from the economic transaction. Lululemon started off with niche marketing and was not intended to be mass marketed. The target market of the brand is the affluent, figure-conscious and stylish women (George, 2006, para. 7). Direct Marketing and Personal Selling Lululemon spends very little on promoting the brand through mass media, perhaps occasionally in magazines and newspapers. Lululemon has used â€Å"brand ambassadors† for the promotion of their brands, these ambassadors and not salaried employees but in fact peers or opinion leader that are given $1000 worth of free apparel in exchange for modeling the brand for their clients (Helliker, 2010). Lululemon calls it a stealth strategy not marketing—that has minimum cost and maximum impact. This is a very unique marketing strategy that clearly distinguishes Lululemon from competitors like Nike and Adidas, who spend million in celebrity endorsements. Lululemon has included ambassadors in areas of running, weight-training and men. The men’s fitness wear is also a very rapidly growing segment for Lululemon but still accounts for less than 20% of total sales (Helliker, 2010). According to Kurtz, MacKenzie and Snow, each Lululemon store across the globe has its own promotional strategy which is specific to that area. This could be in the form of painting their store front or covering their windows with slogans. The store hosts their own free yoga classes and store employees are referred to as educators. The company invests extensively in the recruitment and training of these store employees, because eventually these employees play an important role in the promotion of the brand. Personal selling has been greatly influenced with the emergence of e-commerce and the internet. It enables the manufacturer to establish databases and CRM systems to better meet the needs of the customers a nd gather extensive data about them at the same time (Kerin, p253). Internet plays a vital role as consumer promotions are deeply integrated with online product offerings, this can be done so using micro-sites and even email marketing approaches that reach directly to customers at almost no cost (Kerin, p253). Customers can sign-up for

Biodiversity of Coastal and Exposed Shores Assignment

Biodiversity of Coastal and Exposed Shores - Assignment Example (DETR, 2001). Ideally, we should be able to monitor the biological status of all UK biodiversity and how it is changing (e.g. ecosystem support functions, such as pollution buffering, flood reduction, climate change responses), with focus on priority species and habitats. This paper seeks to respond to the question: How should one go about designing the statistical analysis of biodiversity if it had to be done across scales in time and space The conceptual basis of the design is the definition of biodiversity as a convolution of two community components. One of the components is richness, the product of species evolution, and the other structure, the consequence of environmental sorting (biotic, physical). The method of choice takes information in the manner of frequency distributions, and decomposes the associated total diversity into additive components specific to the deemed sorting factors. Diversity quantities are supplied by the analysis by which the relative importance of sorting factors can be measured and the dynamic oscillations which they generate in diversity can be traced. It is important for this to strategy considers both the present situation and future research needs. Our present monitoring capabilities may be limited not in a scientific sense but through poor coordination and use of existing resources. The Strategy aims to identify areas where improved coordination is required, as well as prioritising new research. Method and Planning: For the preliminary planning process, I conducted the experiments on the middle shore, i.e., 6/12ths, where this position was used in the case of both the exposed and sheltered shores. Also, a levelling technique was made use of in order to locate the middle position. Further, random selection was conducted with the collected samples using a quadrat. Once the middle positions on each shore were located, 30 samples were extracted from each position. With the help of two measuring tapes - one vertically and one horizontally (like an x and y axis), a random numbers table was used to pick some numbers with two numbers for each sample making a total of 60 numbers for 30 samples. After this, the two numbers (coordinates x and y), were used to find the x coordinates on the vertical measuring tape and the y coordinates on the horizontal measuring tape. This helped to finally zero in on a position from where the researcher could extract samples. A note on the style that has been followed throughout this paper - I have followed the APA style in keeping with the most uncomplicated one for the purpose of our research and simple presentation. Analysis and Implementation: In the course of this task, I went on the assumption that the species will show more diversity on the sheltered shore while the exposed shore will have less population density owing to harsh weather conditions. Accordingly, I have used the following steps: Surveying the Rocky shore Because the tide rises up and down twice a day things at the top of the shore get much less water than things at the bottom. This gives rise to an extraordinarily large number of different ways of surviving

Music Essay Example | Topics and Well Written Essays - 250 words - 15

Music - Essay Example The written parts of music were created for Bennett’s stunning ensemble called Decibel. The work was inspired by paintings of Marcel Dzama, a Canadian painter. The chosen composition is the first part of the album; it virtually opens â€Å"Dzama stories†. â€Å"Vagabonds and Blood from the Earth† is surely a powerful composition for the album opening (in combination with the calm intro). Here, like in the rest of the album, Bennett created a powerful and balanced interplay of structural written music fragments and immediate striking improvisation. Then, the sharp â€Å"edge† between calm fragment of the introduction and â€Å"blitzkriegs of turbulence, throbbing and thumping in turn† (Graham) seems to be rather innovative and daring, and the composition is significant as a part of Bennett’s â€Å"sound† representation (or â€Å"reading†) of Dzama’s works. To my thinking, the composition is virtually overwhelming in terms of emotional charge, and even thrilling (due to piercing strings and sharp dramatic transitions between calm and intense parts). In the moments of intensification (when strings reach especially high pitches and the entire composition becomes chaotic to some extent), th is piece could even be associated with a horror movie or a thriller. However, despite my deep respect towards the talent and creativity of this composer, this piece evokes rather negative and turbulent emotions in me: anxiety and some intangible

What Literacy Means to Me Essay Example for Free

What Literacy Means to Me Essay What literacy means for me and the impact that it has had on my life. Literacy refers to the ability to read for knowledge, write coherently, and think critically about the written word. The primary sense of literacy still represents the lifelong, intellectual process of gaining meaning from a critical interpretation of the written or printed text. Key to all literacy is reading development, a progression of skills that begins with the ability to understand spoken words and decode written words, and culminates in the deep understanding of text. Literacy is taught through parents by making reading to your child a regular part of your daily schedule, just as my mother did when I was younger. She would read both early readers and chapter books to me. When reading, she would point to the words as she said them and read slowly. This allowed me to read along with her. Once she noticed that I understood certain words, such as the word the, my mother would let me say that word a few times when it appears in the story. This method taught me to be quite an advanced reader by the age of 5 and was heading into kindergarten. The definition of literacy is a difficult one to answer. When the word literacy comes to mind I think of it first in basic terms of just being able to read, but I know it contains more elements of being just able to read. In my mind literacy as a whole defines the relationship that people have with literature. Just like the way my mother taught me the love of reading, which has continued to grow as Ive aged and encouraged me to develop a love for chapter books and the stories depicted in them. I find myself becoming engrossed in these stories and sometimes even comparing them to my own life experiences. Literacy as a whole means the relationship with different types of literature and how well people can comprehend them. There is the basic standard of literacy which would be reading. Then the next step would be how well the reader could comprehend what is being read. Understanding the words written and know most of their meaning. After that it would be how well the reader could analyze the text. The next step from there would be if the writer could then analyze the text well enough to point out anomalies, binaries, patterns, strands, and any repetition that the literature being read may have. After the interpretation of reading and understanding the literature one should be able to write about it. When writing on the literature the reader should be able to communicate clear decisive thoughts about the text that isn’t already spelled out in the literature. With a sharp focused analytical claim. This shows that the reader understood the literature and is capable of translating it to others without retelling the literature that has already been read. For me literacy is very important and has a really strong impact in my life. When I was a kid I remember my mother always telling me â€Å"the more you know the better it is†. I never really understood what she meant nor did I pay that much attention. Society has proven time and time again, it will reward those individuals who are competent and impede those who are not, whether expressed in terms of employment opportunities or just on a social level. One needs look no further than their everyday activities in order to realize how important literacy is. Without adequate literary skills one may not be able to identify on a label the correct amount of medicine to give a child, or read and interpret a sign giving instructions on what to do in case of a fire. These two examples bring perspective to literacys importance. I discovered that I mainly use text or literacy to communicate with others for maintaining family connections or for work related information. I use text or literacy for entertainment as well, but I spend far less time using it for work than I do for entertainment. Overall, I think literacy is a very fluid concept—it is ever changing and evolving as we change and as our way of life changes. A generation or two ago, it was merely important to be able to read and write. Now, one must be able to read and write and use technology to be successful in the world. And for this necessary ability, I have my mother to thank for all her hard work teaching me these skills as a young child.

Development of Hospitality Housekeeping Technology

Development of Hospitality Housekeeping Technology Chapter-1 Introduction Housekeeping: Housekeeping refers to the management of duties and chores concerned within the running of a social unit. its conjointly wont to talk to the money allotted for such use. By extension, associate degree workplace or organization, moreover because the maintenance of storage device systems. A housekeeper is a person used to manage a social unit, and therefore the domestic employees. in step with Mrs Beetons Book of social unit Management, the house servant is second in command within the house and except in massive institutions, wherever theres a house steward, the house servant should think about herself because the immediate representative of her mistress. (Anon., n.d.) Chapter-2 P.D.A Introduction: A personal digital assistant (PDA), conjointly called a palmtop laptop, or personal information assistant, could be a mobile device that functions as a private data manager. PDAs area unit for the most part thought-about obsolete with the widespread adoption of smartphones. Nearly all current PDAs have the power to attach to the web. A personal organizer has Associate in Nursing electronic visual show, sanctioning it to incorporate an internet browser, all current models even have audio capabilities sanctioning use as a transportable media player, and conjointly sanctioning most of them to be used as mobile phones. Most PDAs will access the web, intranets or extranets via Wi-Fi or Wireless Wide space Networks. Most PDAs use touchscreen technology. the primary personal organizer was discharged in 1984 by Psion, the Organizer II. Followed by Psions Series three, in 1991, that began to gibe the a lot of acquainted personal organizer vogue. It conjointly had a full keyboard . The term personal organizer was initial used on Gregorian calendar month seven, 1992 by Apple laptop chief operating officer John Sculley at the patron physical science Show in metropolis, Nevada, concerning the Apple Newton. In 1994, IBM introduced the primary personal organizer with full movable practicality, the IBM Simon, which might even be thought-about the primary smartphone. Then in 1996, Nokia introduced a personal organizer with full movable practicality, the 9000 soul, that became the worlds popular personal organizer. The soul spawned a brand new class of PDAs: the PDA phone, currently known as smartphone. Another early entrant during this market was Palm, with a line of personal organizer product that began in March 1996. (Anon., n.d.) Features of P.D.A: A typical electronic device includes a touchscreen for coming into knowledge, a memory card slot for knowledge storage, and IrDA, Bluetooth and/or Wi-Fi. However, some PDAs might not have barely screen, mistreatment softkeys, a directional pad, and a numeric data input device or a thumb keyboard for input; this can be usually seen on telephones that square measure incidentally PDAs.In order to own the functions expected of a electronic device, a devices code usually includes a meeting calendar, a disruption list, Associate in Nursing address book for contacts, a calculator, and a few type of memoranda (or note) program. PDAs with wireless knowledge connections conjointly usually embrace Associate in Nursing email consumer and an online browser. (Anon., n.d.) P.D.A’s use in housekeeping: A personal digital assistant be use for alter sounds, buttons, tools and far additional. Use your personal digital assistant to suit your personal or business style. Store personal and business contacts. Record contact data into the address book, wherever its safely keep and simply accessible. Use cellular functions for causation and receiving calls or messages if your personal digital assistant may be a phone and organizer to Manage tasks. produce a To-do list thats displayed on your home page. Organize calendar for events, appointments or forthcoming tasks. Set a reminder alarm to present you a notice before forthcoming item.Calculate figures with the personal digital assistant calculator.Search the online. bestride the net to look pages or transfer information. Send or receive emails or text messages from cellular suppliers or instant courier services. Download and play music or videos. Take photos or record video. Type in Word to jot notes or w rite a document. Use surpass to create and write spreadsheets. Connect between your personal digital assistant and laptop or laptop computer to transfer information, save documents or synchronize all information. Chapter-3 Radio Frequency Identification Device. Uses of rfid in housekeeping: Hotels square measure still holding on to money-saving habits developed over the past few years, perpetually on the lookout for tactics to trim their budget whereas remaining effective. thats why the employment of radio-frequency identification microchips in edifice uniforms and linens square measure starting up as a money-saving investmentThe chips square measure designed to trace the movement of uniforms or linens to and from laundry areas so as to chop down on excess washes, continuation the lifetime of most materials. â€Å"The chips themselves outlive the clothes,† aforesaid William Beatty, linen manager for the Revel urban center. â€Å"One of the most important edges these chips offer USA is that it keeps our request straight. The previous system of exploitation bar codes and manually investigation linens is out.† (Anon., n.d.) Chapter-4 MICROFIBER Introduction:Microfiber or microfiber is fiber finer than one or one’s denier or decitex/thread. this is often 1/100th the diameter of a personalitys hair and 1/20th the diameter of a strand of silk. the foremost common varieties of microfibers are made of polyesters, polyamides (e.g., nylon, Kevlar, Nomex, trogamide), or a conjugation of polyester, polyamide, and polypropene (Prolen). Microfiber is employed to form mats, knits, and weaves for attire, upholstery, industrial filters, and cleansing product. The shape, size, and combos of artificial fibers ar chosen for specific characteristics, together with softness, toughness, absorption, water repellency, electrodynamics, and filtering capabilities. (Anon., n.d.) How microfibers help in cleaning: In cleansing product, microfiber are often 100 percent polyester, or a mix of polyester and polymeric amide (nylon). It are often each a woven product or a non woven product, the latter most frequently employed in restricted use or disposable cloths. In a number of the highest-quality materials for several cleansing applications, the fiber is split throughout the producing method to provide areas in every fiber. If one were to appear at a cross section of the many split microfiber material below extreme magnification, itd appear as if AN asterisk. it is the split fiber, and also the size of the individual filaments operating in conjunction with the areas between them that will the work. They develop and hold the mud and dirt, and absorb liquid.Unlike cotton, microfiber leaves no lint, the exception being some small suede blends, wherever the surface is automatically processed to provide a soft plush feel. (Anon., n.d.) Environmental and safety: Microfiber textiles tend to be ignitible if factory-made from hydrocarbons (polyester) or carbohydrates (cellulose) and emit deadly gases once burning, a lot of thus if aromatic (PET, PS, ABS) or treated with halogenated flame retarders and aromatic dyes.Their polyester and nylon stock square measure made up of petrochemicals, that dont seem to be a natural resource and dont seem to be perishable. However, if created out of plastic, theyre 100% reusable (Prolen).For most cleanup applications theyre designed for continual use instead of being discarded once use. (An exception is that the precise cleanup of optical parts wherever a wet material is drawn once across the thing and should not be used once more because the detritus collected and currently embedded within the material could scratch the optical surface.) In several house cleanup applications (washing floors, furniture, etc.) microfiber cleanup materials is used while not detergents or cleanup soluti ons which might preferably be required.There square measure environmental issues concerning this product coming into the oceanic organic phenomenon. However, no pesticides square measure used for manufacturing artificial fibres (in comparison to cotton). If these merchandise square measure manufactured from plastic yarn, the yarn is dope-dyed; i.e. no water is employed for colouring (as with cotton, wherever thousands of litres of water become contaminated) (Anon., n.d.) Chapter-5 Light and Climate Control Introduction: The system is integrated to the hotel’s management system permitting employees to examine the period standing of an area from occupancy to guest wants and requests. this permits employees to execute their tasks additional with efficiency.Within the space, a guest will show employees if the space must be created, if theres cleanup to be picked up, trigger associate alarm for emergencies or prefer ‘do not disturb’.Staff will monitor and management HVAC supported occupancy to scale back energy prices, attend to guest requests instantly for improved service, quick cool rooms for comfort once the guest checks in and monitor guest departure for cleanup service.In sensible terms, this suggests work doesn’t disturb guests and HVAC and lighting area unit neer wasting energy in unoccupied rooms.This clever system will mechanically switch all lighting, flip the climate system to a additional economic level and shut the blinds as before long because the g uest checks out. About light and climate control device: An possibility for mounting a multifunction electrical device outside the guest space is out there. this could be wont to notify edifice workers the space standing, as an example, â€Å"make up room†, â€Å"do not disturb† or â€Å"laundry pick-up required†. The multifunction electrical device may be used as a door bell. This door bell may be disabled if the guest has appointed the â€Å"do not disturb† operate of the system.Once within, the guest enters the space card key into the management systems card holder and this could then trigger multiple functions like open blinds, change thermostat to previous set level and switch on lighting. With the system able to perform multiple functions mechanically, the guest doesnt got to actively act with the system, because the system is interacting with them. This automation adds to guest comfort as they don’t got to operate multiple panels, setting the space to their f eeling.When the guest leaves the space taking the cardboard key with them, the space can mechanically perform a pack up sequence when a delay. at intervals the pack up sequence, the thermostat are set to a cost-effective mode, all lighting are changed, selected power points may be disabled, thus removing electronic devices on stand-by power and therefore the blinds may be closed insulating the space from potential activity.If the sleeping room incorporates a balcony door or window, the system may be set in order that if the guest opens either of those, then the air con system can mechanically switch or amendment to a desired mode. This energy saving feature will contribute to considerably reducing the price of running air con services unnecessarily. Motion detection at intervals the lavatory may be a helpful feature and prevents guests sorting out management panels within the dark. The operation of the detector may be obsessed on the time, permitting totally different functionalists between night and day. as an example, if occupancy is detected within the lavatory for the primary time throughout the night, the lighting can slowly work up to a coffee level, permitting guests to regulate. when no occupancy has been detected, the lighting can mechanically close up therein space. Chapter- 6 Mirror television Introduction: A Mirror TV or TV Mirror may be a tv device thats convertible to a mirror. Mirror TVs area unit typically used to avoid wasting area or conceal physical science in living areas like bedrooms and living rooms.Mirror TVs are often integrated into interior styles, together with sensible Homes and residential automation integration.The device consists of specially built mirror glass with AN digital display TV behind the reflected surface. The mirror is fastidiously polarized to permit a picture to transfer through the mirror,specified once the TV is off, the device seems like a mirror. Models embody High-Definition practicality, common with the digital display technology utilized in the screens. Some makers supply high-end input and output choices for entire-home A/V integration. (Anon., n.d.) (Anon., n.d.) The Mirror Barcelona: the mirror Barcelona is a hotel in Barcelona which is completely made up of mirrors which are televisions. It has 63 rooms and every room has Smart design rooms. TV LED (ultra-thin) 40 in room. TV LED (ultra-thin) 22 in W.C.Hairdryer Bed of 1.80 m Treca de Paris House Lighting scenes generation Room with alarm intrusion proximity card access control system Soundproofing of high quality Doors with automatic shelf system Automatic Do not disturb Independent efficient air-conditioning Free cable and wireless internet (50 Mb symmetric) (Anon., n.d.) Conclusion Hospitality may be a never ending business. It provides a wide scope of different opportunity in different fields. And the new upcoming trends are helping this industry develop and flourish. Cleanliness is just a part of housekeeping. The main objective of housekeeping is maintaining order and the new trends are helping the housekeeping department work efficiently and smoothly.

Do I Or Dont I :: essays research papers

Do I still want to teach? Well, I count myself as being one of the luckiest students alive today because I have had some of the most wonderful teachers in the world. They have always inspired me in some way shape or form to either do my best or they pushed me to become the young man I am today. So to teaching I say, â€Å"YES!† whole-heartedly. I love the career and I enjoy helping others like no other does. When the gentleman came in the Wednesday’s class tell us about his experiences about teaching, I had envisioned myself doing those same sorts of things for other schools to make them feel welcome. He didn’t do it because he thought he had to but out of the kindness of his hearts. I want to give that to students, a piece of my heart. No matter how they take it, whether they rip it up and throw it away, if the cherish it with love and tenderness, or whether they take it and then forget about it. To be honest I don’t think any of my students, that is whe n I become a teacher, will ever forget me if they have me!   Ã‚  Ã‚  Ã‚  Ã‚  I understand what kind of energy you must actually put into education for you as a teacher to get something back out of it. You must work almost everyday and night, if you want your kids to succeed or you might just see them fail, and no teacher in their right mind would want that for any of their students. Teaching is not going to be as â€Å"wham bam thank you mam† easy like I thought it was going to be. I know now how hard it is for first year teachers to cope with and deal with all the emotional problems they may face. I remember in the video How Difficult Can This Be? Understanding Learning Disabilities how the guy treated the adults in the room, on how to treat learning disabled children. I learned that they first have to interpret the question, then think about the answer, and then reply to the question. It takes them twice as long in the thinking process, as it does a normal student. At least I would not feel left out in the dust on how to handle a learning disabled child if ever I received one.

Government Budgets on Inflation :: Economics Economy Essays

Government Budgets on Inflation Problems with format ?Since Greece and Italy are in the European Union and have both joined the European Monetary Union, one might think that they would have fairly stable economies, and Turkey would be the unstable one of the three.? But that is not necessarily true.? Although Turkey does have more of an unsteady economy, Italy and Greece?s were not doing so well in the recent past.? Looking at each country separately then comparing the three is the best way to see how the government budgets affect the inflation rates of Greece, Italy and Turkey.? Greece Greece joined the European Union (EU) in 1981, but that did not solve all of its internal problems.? They still had a high inflation rate through the 1980s and into the early 90s.? ?The average annual rate of price inflation was 17.4% in 1984-93.?[1]? There were many reasons for this elevated rate, like the public sector dominating the economy, the informal Greek economy, and the weak political leadership, but Greece knew they had to lower their inflation rate to join the European Monetary Union (EMU) and in turn converting their currency over to euros. In 1994, the EU along with Greece?s ruling government PASOK (Panellinion Socialistikon Kinima) set goals for Greece?s journey towards entering the EMU.? Along with many other objectives, the inflation rate had to be lowered before entering in to the monetary union.? Greece reduced it public spending, restricted the public sector wage increases, and attempted to increase their budget revenues by setting a minimum level of income tax payable by all employees.[2]? By doing these things, ?in April of 1995 the annual rate of inflation was less than 10% for the first time since 1973.?[3]? Also during this time of gradual progress to lower the inflation rate, the gross domestic product (GDP) rose.? The economy grew by an average of 2.8 percent per year between 1994 and 1999 and there was a recorded real growth in GDP of 4.1% in 2000.[4]By the middle of 2000, Greece?s inflation rate had reached a stable level at 2.0%, which was the requirement for entry into the EMU. ?In January [2001] Greece became the twelfth member of the European Monetary Union after a sustained effort to reduce inflation and the budget deficit to levels required for adopting the Euro. Government Budgets on Inflation :: Economics Economy Essays Government Budgets on Inflation Problems with format ?Since Greece and Italy are in the European Union and have both joined the European Monetary Union, one might think that they would have fairly stable economies, and Turkey would be the unstable one of the three.? But that is not necessarily true.? Although Turkey does have more of an unsteady economy, Italy and Greece?s were not doing so well in the recent past.? Looking at each country separately then comparing the three is the best way to see how the government budgets affect the inflation rates of Greece, Italy and Turkey.? Greece Greece joined the European Union (EU) in 1981, but that did not solve all of its internal problems.? They still had a high inflation rate through the 1980s and into the early 90s.? ?The average annual rate of price inflation was 17.4% in 1984-93.?[1]? There were many reasons for this elevated rate, like the public sector dominating the economy, the informal Greek economy, and the weak political leadership, but Greece knew they had to lower their inflation rate to join the European Monetary Union (EMU) and in turn converting their currency over to euros. In 1994, the EU along with Greece?s ruling government PASOK (Panellinion Socialistikon Kinima) set goals for Greece?s journey towards entering the EMU.? Along with many other objectives, the inflation rate had to be lowered before entering in to the monetary union.? Greece reduced it public spending, restricted the public sector wage increases, and attempted to increase their budget revenues by setting a minimum level of income tax payable by all employees.[2]? By doing these things, ?in April of 1995 the annual rate of inflation was less than 10% for the first time since 1973.?[3]? Also during this time of gradual progress to lower the inflation rate, the gross domestic product (GDP) rose.? The economy grew by an average of 2.8 percent per year between 1994 and 1999 and there was a recorded real growth in GDP of 4.1% in 2000.[4]By the middle of 2000, Greece?s inflation rate had reached a stable level at 2.0%, which was the requirement for entry into the EMU. ?In January [2001] Greece became the twelfth member of the European Monetary Union after a sustained effort to reduce inflation and the budget deficit to levels required for adopting the Euro.

Mary McLeod Bethune Essay -- essays research papers

  Ã‚  Ã‚  Ã‚  Ã‚  Mary McLeod Bethune was an innovative leader because she took a story which was largely latent in the population, equal education rights for black children, and brought it to national prominence through the creation of the Bethune-Cookman college. She was also a visionary leader because of the incredible success she was able to attain in advancing the cause of equal education.   Ã‚  Ã‚  Ã‚  Ã‚  Bethune was such an effective leader because both she completely embodied her story and it became completely central to her life and persona. Bethune was able to embark on her incredible quest because of the educational opportunities she was provided by missionary teachers and therefore dedicated her life to ensuring that every black child had the opportunity to advance and prove themselves through education. In Leading Minds, Howard Gardner describes the many characteristics which comprise his cognitive model of leadership. In this brief biographical excerpt, Bethune meets them all.   Ã‚  Ã‚  Ã‚  Ã‚  One of the characteristics Gardner uses to quantify cognitive leadership is the acquisition of power and the use of this power to implement policy. The segregated and patriarchical nature of the society Bethune lived in made it extremely difficult for her advance herself or her vision of equal opportunity education. However, despite these challenges, she was able to rise to a position of national prominence as a director of the divisi...

Working Capital Analysis

CHAPTER-I INTRODUCTION 1. 1 Back ground of Study Working Capital refers to that part of the firm’s capital, which is required for financing short-term or current assets such a cash marketable securities, debtors and inventories. Funds thus, invested in current assets keep revolving fast and are constantly converted into cash and this cash flow out again in exchange for other current assets. Working Capital is also known as revolving or circulating capital or short-term capital. Therefore, working capital management is the same of liquidity management and its relate inversely with profitability.It is significance for any industries due to the investment in Current Assets (CA) must be adequate because inadequate or excessive inadequate working capital can disturb production and can also threaten the solvency of firm, if it fails to meet its current obligation excessive investment in CA should be avoided, since it impairs firm's profitability Secondly, need for working capital ar ises due to increasing level of business activity ; it is to provided quickly some time surplus fund may arises which should be invested in Short term securities , they should not be kept idle.The importance of Working capital management compelled to the firms to try the optimal level of investment in each element such as inventories, cash, account receivables but the firm also consider to way of financing the current assets. This means, consideration of current liabilities which include account payables, notes payable, interest payable and other shot-term debt.In addition, the firm can adopt an aggressive working capital management policy with a low level of current assets as a percentage of total assets, or it may also be used for the financing decisions of the firm in the form of high level of current liabilities as a percentage of total liabilities(Nazir and Afza,2009), and it is the opposite in conservative working capital management policy. On the other hand, it should be dist inguished between three policies that related directly with the working capital efficiency.First policy is collection policy, that measured by average receivables collection period (ARCP) which is meaning the average length of time required to convert the firm receivables into cash. Second policy is inventory policy, which expressed by average conversion inventory period (ACI). It means the average length of time required to convert raw materials into finished goods and then sell these goods.Third policy of working capital efficiency is payment policy, which measured by average payment period (APP) that means the length time between the purchase of materials and the payment of cash (Weston and Brigham,1993). These policies require from company to accelerate the collections of receivables, accelerate its inventory, accelerate the payment cycle, and reduce the cost of the working capital needs.Above mentioned policies can be merged them in one general policy, is called cash conversion cycle (CCC) developed by Richards and Laughlin(1980) which focuses on the length of time between when the firm makes payments and when it receives cash inflow. To fulfill the one of the most important goal of organization to maximization of share holder’s wealth of a firm is possible only when there is sufficient return from the operations and successful sales activity is necessary for earning profit sales without convert into cash immediately.To generate the sales and revenue activities there will be the s invisible time lap between the sale of good and receipt of cash. Hence, the time taken to convert raw material into cash is known as operating cycle that includes following activities in different phase. At first phase: * Conversion of cash into raw material * Conversion of raw material into work in progress * Conversion of Work in progress into finished goods * Conversion of finished goods into Sales ( Debtors and cash) At second Phase: Cash received and at third phase i s payment of credit.A low cash conversion cycle allows the managers to minimize holdings of relative unproductive assets such as cash and marketable securities, preserves the firm’s debt capacity since less short-term borrowing is required to provide liquidity and corresponds to a higher present value of net cash flows from firms assets Moreover, the cash conversion cycle is an important technique of analysis for the financial mangers of firm to assess why and when the firm needs more cash to sustain its activities. I am going to comparative study of Surya Nepal Private Limited (SNPL) is an Indo-Nepal-UK joint enture, which started operations in Nepal in 1986. SNPL, a subsidiary of ITC Ltd, India, is the largest private sector enterprise in Nepal. The balance shares are held by dispersed Nepalese shareholders and British American Tobacco, UK. Surya Nepal's businesses include manufacture and marketing of cigarettes and readymade garments in Nepal as well as exports of ready-ma de garments with a total turnover of over US $100 million. Secondly, The guiding force behind Dabur's growth and success has been the wealth of nature and its limitless capacity to support life.And we have constantly taken care to preserve and protect this natural bounty. With this overall vision of and to eco-sustenance, expand Dabur's resource and production base, Dabur Nepal Private Limited was set up as an independent Group company in 1992. This new company, set amidst the verdant greens and towering mountains of the Himalayan kingdom of Nepal, has established a unique bond of technology and preservation. 1. 2 Problem of Statement The management of a company's working capital significantly influences its profitability. In the short term, companies risk being short on liquidity if the working capital level deteriorates.In the long term, too much working capital lowers the return on investment and reduces the value of the company. In contrast, a reduction of the working capital ca n significantly improve cash flows and free up capital from a company's balance sheet. This capital can then be used to reduce debts, pay dividends to investors or reinvest in company growth. In the context of Nepal there is not practically implementation of working capital management technique that can brings the liquidity problem in short term and solvency problem in long term due to loss on business.This can be the one most important reason for the lower growth rate of manufacturing firm. I want to gain insight into this field and to identify potential areas for optimization of working capital management for the profitability on the Nepalese manufacturing firm. Performance of firm on the topic of working capital management is very essential to reach the optimum level of working capital then to enhance their profitability. But these elements can be affected by Nature of business, seasonality of operations, production policy, market condition, and political scenario.Therefore, I ha ve done this investigation to know the answer of following question. a. What are the factors of working capital for Nepalese manufacturing firm? b. How can working capital affects the performance to enhance profitability of firms? c. How is the performance of firm to achieve the optimal working capital in order to maximize the profitability? 1. 3 Objective of the Study The main objective of the research is to measure the impact of working capital management on the profitability for Nepalese manufacturing firm. The specific objectives of the study are summarizing as following. a.To analyze the relationship between working capital management and profitability for manufacturing firm. b. To determine the relationship between size of firm and the profitability c. To Know the relationship between leverage and profitability. 1. 4 Limitation of the Study This study is intended to measure the impact of working capital management on profitability of Nepalese manufacturing firm but the study a lso influences from the following limitation. a. There isn't financial sponsor for the depth study. b. Due to the time constraints it is not possible to analyze the each variable in details. c.In depth analysis and the study of financial position is not feasible because of the policy and privacy of firm. d. The information is assuming true that is taken from different source. CHAPTER-II LITERATURE REVIEW 2. 1 Literature Review According to Wilner (2000) most firms extensively use trade credit despite its apparent greater cost, and trade credit interest rates commonly exceed 18 percent and Deloof (2003) also found that according to National Bank statistics during 1997, Belgian companies had accounts payable of only 13% of the total asset and accounts receivable and Inventory of 17% and 10% of the total asset respectively.Singh and Pandey (2008) discussed the impact of working capital management in the profitability of Hindalco Industries Limited. Regression results showed that curren t ratio, liquid ratio, receivable turnover ratio and working capital to total assets had statically significant impact on profitability. Dong and Su (2010) examined the relationship between profitability, the cash onversion cycle and its component for listed firms in Vietnam stock market for period (2006-2008). They resulted that there is strong negative relationship between cash conversion cycle and the profitability.Cote and Latham (1999, p. 261) argued that management of receivables, inventory and accounts payable have tremendous impact on cash flows, which in turn affect the profitability of firms. According to Long, Malitz and Ravid (1993) it is seen that liberal credit terms to the customers increase the sales level of the firm, though having a continuous troubleshooting with managing short term financing in the finance department. The decision lays with the firm which one to put more importance on. Scherr (1989, p. 6) claimed that companies can strengthen strong cash flow lev els, improve profitability, budgeting and forecasting process, predictability and manageability of results, heighten risk if they implement the best practices in working capital. Amit, Sur and Rakshit (2005) studied the relationship between working capital and profitability in the context of Indian pharmaceutical industries and concluded that no definite relationship can be established between profitability and liquidity. Cote and Latham (1999, p. 61) argued that management of receivables, inventory and accounts payable have tremendous impact on cash flows, which in turn affect the profitability of firms. Scherr (1989, p. 16) claimed that companies can strengthen strong cash flow levels, improve profitability, budgeting and forecasting process, predictability and manageability of results, heighten risk if they implement the best practices in working capital. Eljelly(2004) identified the relation between profitability and liquidity who was examined, as measured by current ratio and c ash gap (cash conversion cycle) on a sample of joint stock firms in Saudi Arabia.The study found that the cash conversion cycle was of more importance as a measure of liquidity than the current ratio that affects profitability. The size variable was found to have significant effect on profitability at the industry level. The results were stable and had important implications for liquidity management in various Saudi firms. First, it was clear that there was a negative relationship between profitability and liquidity indicators such as current ratio and cash gap in the Saudi sample examined. Second, the study also revealed that there was great variation among industries with respect to the significant measure of liquidity.Sur Biswas and Ganguly (2001) revealed in their study of Indian aluminium producing industry, a very significant positive association between liquidity and profitability. All previous studies had reached to the same results approximately, which had proved there is t he negative relationship between the working capital, debt ratio, current ratio and profitability, and the positive relationship between size of the firm with profitability. This study tries to depend on previous studies to provide new evidence on how working capital can effect on the profitability. . 2 Research Frame Work Model ROA Leverage Performance Working Capital Efficiency Profitability of the Firm Size of Firm Current Liabilities Current Assets Organization Planning Growth of business Ln of Sales Debt ratio Liquidity ratio: CR All the components such as Working Capital, Profitability and Size of the firms, Liquidity, and Leverage performance are interrelated to each other. The working capital affects the profitability of the firm. Similarly size, leverage, and liquidity affect the working capital requirement and profitability of the firm.If there is low in current assets then it can’t pay the short term obligation and if firms keep in high ratio then investment opport unity will lose that decreases the value of profitability elements such as ROE and ROA. Secondly, if there is high concentration on sales by keeping low liquid assets then profit can increase and it helps to increase the growth rate of company and fulfill the objective of shareholder’s wealth maximization and ease for the competition but low liquid assets can creates the risk of liquidity. Therefore, all components of above mentioned are interrelated positively and negatively.After analyzing the financial ratio BOD, manager can formulate the policy for sustainable business as well as investors will take best decision for the investment. This study has been guided according to the above variables and discussed the variables relation after studied of two firms in detail in the below. Hence, this study will benefit for the best decision of working capital requirement to manage the profitability, leverage in long term and to growth the firm in stable rate. CHAPTER-III DATA COLLEC TION AND METHODOLOGY 3. 1 Research Data CollectionThe data has taken from the secondary source regarding to the official site of Surya Nepal Pvt. Ltd and Dabur Nepal Pvt Ltd. Secondary data is assumed as an enough and reliable. Sample of this study has been focused on the joint venture Nepalese manufacturing firms. These two firms have chosen as a sample company due to big market in Nepal. To fulfill the objective of research, report is prepared by taking a financial data of two sample companies from 2006 to 2011. 3. 2 Definition of variable I have used of dependent and independent variables to complete the study are as below.Dependent variables include profitability measure which will be computed by the following equation: Return on Assets (ROA)=Net Operating IncomeTotal Assets Secondly, independent variables have been divided in two parts. First part includes working capital management variables. †¢ Average receivable collections period (ARCP) are used to express the credit p olicy. It is calculated by using following equation: Average receivable collections period (ARCP)=Account Receivables *365/Sales †¢ Average conversion inventory period (ACIP), which is expressed the inventory policy.It will be identified by following formula: Average conversion inventory period (ACIP)= Inventory *365/Cost of Sales †¢ Average payment period (APP) is used to reflect the payment policy it is measured measured by following equation: Average payment period (APP) =Accounts Payables *365/Cost of Sales †¢ Cash conversion cycle (CCC) is used to express the overall impact on working capital efficiency, and that is calculated by using following equation. Cash Conversion Cycle (CCC)=ARCP+ACIP-APP At the second phase of independent variables has been included as below. †¢ Size of the company = Natural of logarithm of sales (LNS). Current ratio (CR) = Current assets/Current Liabilities. †¢ Financial leverage ratio (FL) = Total Liabilities / Total Assets. 3. 3 Empirical Analysis This section contains the descriptive analysis by taking the help of mean, standard deviation, maximum and minimum value of all variables that is used in study. Similary, on the second phase of analysis here has been explained the relationship between the variables by using correlation coefficient. Moreover, regression model has been used to quantify the relation between variable and to measure the accuracy of this report.Multiple regression models have used to complete the regression analysis. All types of analysis and graphical representation will be expressed by using the MS office package 2007. For this study I have used 4 regression models to quantify the relation and model is as below. 1. ROA= a+b1ARCP+b2CR+b3FL+b4LNS (model -1) 2. ROA= a+b1ACIP+b2CR+b3FL+b4LNS (model-2) 3. ROA= a+b1APP+b2CR+b3FL+b4LNS (model-3) 4. ROA= a+b1CCC+b2CR+b3FL+b4LNS (model-3) CHAPTER-IV DATA ANALYSIS AND PRESENTATION 5. 1. Empirical Analysis and Findings 4. 1. 1Descriptive An alysis: Dabur Nepal Pvt. Ltd (Table 1) | ROA| ARCP| ACIP| APP| CCC| CR| FL| Lns|   |   |   |   |   |   |   |   | Mean| 0. 034| 35. 67| 75. 12| 42. 35| 68. 44| 2. 00| 0. 248| 21. 73| Standard Deviation| 0. 028| 19. 74| 31. 74| 35. 27| 39. 24| 0. 676| 0. 055| 0. 346| Minimum| 0. 001| 4. 13| 17. 37| 8. 33| 6. 30| 1. 52| 0. 207| 21. 39| Maximum| 0. 084| 55. 23| 111. 78| 93. 46| 120. 94| 3. 19| 0. 351| 22. 38| Count| 6| 6| 6| 6| 6| 6| 6| 6| According to the above table, ROA on average is 34% and ROA existed between 0. 1 % to 0. 84%. The average receivables collection period has 5 days (approximately) as minimum to collect its receivables from the purchasers but it takes 55. 23 days as maximum to collect its receivable.The average days of generating its sales on account about 35. 67 days. In addition, the average conversion inventory period (ACIP) takes about 17. 37 days to sell all its inventory as minimum and takes 111. 78 days as maximum. The mean days to sell the inven tories are 75. 12 days with standard deviation of 31. 74 days. About the APP, the firm has a minimum time 8. 33 days to pay its purchases on account and 93. 46 days as a maximum time. It takes an average 42. 35 days to pay its purchase with standard deviation of 35. 27. The cash conversion cycle (CCC) has 6. 30 days as a minimum time and maximum is 120. 94 days.The minimum current ratio (CR ) of the firm is 1. 52 and maximum is 3. 19 with the standard deviation of 0. 55%. The Natural Logarithm of size (LNS) shows minimum sales is 21. 39 and maximum is 22. 38 with the average of 21. 73. About the financial leverage is 20% as minimum and maximum is 35% with the standard deviation of 0. 55%. Surya Nepal PVT. LTD (Table 2) | ROA| ARCP| ACIP| APP| CCC| CR| FL| LNS| |   |   |   |   |   |   |   |   | Mean| 0. 287| 5. 11| 191. 55| 63. 45| 133. 21| 1. 72| 0. 424| 22. 82| Standard Deviation| 0. 086| 2. 90| 21. 84| 5. 88| 19. 96| 0. 678| 0. 152| 0. 339| Minimum| 0. 178| 2. 54| 170. 51| 57. 0| 110. 72| 1. 06| 0. 255| 22. 42| Maximum| 0. 389| 9. 86| 232. 04| 73. 16| 167. 62| 2. 44| 0. 594| 23. 31| Count| 6| 6| 6| 6| 6| 6| 6| 6| an average return on assets(ROA) is just 28% which is lower than Dabur Nepal Ltd. But the minimum and maximum value of ROA exists between 17 % to 38 % and less variability comparison with Dabur Nepal Ltd. The Average receivable collection period (ARCP) is 5. 11 days approximately and lower than Dabur. Thus, collection capacity of dabur is very strong. similarly, ACIP of Surya Nepal exist between 170. 51 days to 232. 04 days. About the average CCC of Surya Nepal is 133. 1 days which is higher than Dabur Nepal. Therefore, we can say that, cash inflow days in the Dabur Company are quicker than Surya Nepal. Moreover, an average 42% portion is existed under the total assets of the Surya firm that is higher than Dabur Company. It means, Surya Nepal takes more loans for the business. About the average size of Surya Nepal is 22. 82 that is h igher than Dabur. Graph: 1 source Table 1 and 2 Let summarize the above result: a. ROA of Surya Nepal is higher that tends to the meaning of; profitability volume is good rather than Dabur Nepal Pvt. Ltd. b. Credit collection capacity is stronger of Surya Nepal Pvt.Ltd. c. Surya Nepal Ltd. takes more time to convert the goods in raw material. d. Surya Nepal pays to supplier at delay comparison with Dabur. e. CCC of Surya is higher due to higher in ACIP and APP. 4. 1. 2. Correlation Coefficient Analysis Dabur Nepal Ltd. (Table 3) | ROA| ARCP| ACIP| APP| CCC| CR| FL| Lns| ROA| 1|   |   |   |   |   |   |   | ARCP| -0. 903| 1|   |   |   |   |   |   | ACIP| -0. 666| 0. 537| 1|   |   |   |   |   | APP| -0. 074| 0. 141| 0. 705| 1|   |   |   |   | CCC| -0. 927| 0. 811| 0. 446| -0. 258| 1|   |   |   | CR| 0. 835| -0. 627| -0. 888| -0. 450| -0. 6291| 1|   |   | FL| -0. 095| 0. 285| -0. 007| -0. 152| 0. 2743| 0. 48| 1|   | Lns| 0. 144| -0 . 172| 0. 348| 0. 609| -0. 352| -0. 203| -0. 572| 1| Surya Nepal Pvt. Ltd (Table 4) | ROA| ARCP| ACIP| APP| CCC| CR| FL| LNS| ROA| 1|   |   |   |   |   |   |   | ARCP| -0. 420| 1|   |   |   |   |   |   | ACIP| 0. 393| -0. 174| 1|   |   |   |   |   | APP| -0. 359| -0. 402| 0. 441| 1|   |   |   |   | CCC| -0. 263| 0. 073| 0. 939| 0. 130| 1|   |   |   | CR| -0. 892| 0. 493| -0. 443| -0. 736| -0. 196| 1|   |   | FL| -0. 869| -0. 457| 0. 541| 0. 769| 0. 299| -0. 992| 1|   | LNS| 0. 958| -0. 437| 0. 569| 0. 464| 0. 423| -0. 893| 0. 902| 1| According to the Table 3 and 4, Return on Assets (ROA) has negative relationship with ARCP.It tends to the meaning of longer the time of collection days reduces the profitability of firm. Therefore, if a firm reduces the length between sales and collection, it will increase the profitability through reinvest collections in profitable investments. Correlation results related negatively between the a verage conversion conversion inventories (ACIP) and ROA significantly in the case of Dabur. It means when the firm reduces the length time required converting raw material in to finished goods and then to sell those goods that lead to enhance profit.But in the case of Surya Nepal, there is positive relationship between ARCP and ROA. It means, it should take more stock for the high profit. The average Payment Period (APP) has negatively correlation with Profitability. It means, if the both firm shorten the length time between purchases goods and payment of the value of goods, it will lead to increase profitability. There are negative relationship between cash conversion cycle (CCC) and ROA. If the firms shorten its conversion cycle as much as possible without hurting its operation, it will reflect positively on profitability.Correlation coefficient of the size (LNS) firm is positive relationship with profitability that indicates if the firm increases its size of sales; it will lead t o increase its profitability. Current ratio refers to liquidity of the firm which relates positively correlated with ROA in case of Dabur but negatively correlated with ROA in case of Surya Nepal. Generally, if the firm invests its liquidity very well, it will generate high return and as per situation there might be required or not for holding of stocks in long term. About the Financial leverage that is negatively correlated with profitability.It means, if the firm depends on the financial leverage as much as need, ti carry itself financial obligation such as interest payment and principal payment and then it reflects negatively on its profitability. Dabur Nepal Pvt. Ltd. (Table 5) Year| 2006| 2007| 2008| 2009| 2010| 2011| ROA| 0. 031| 0. 030| 0. 022| 0. 001| 0. 084| 0. 038| CCC| 85. 74| 86. 30| 63. 87| 120. 93| 6. 29| 47. 46| Source Table 5. Graph 2 Conclusion: According to the above finding, the increasing in the value of CCC that decreases the value of ROA. And it is proved that there is negative relationship between ROA and CCC.Surya Nepal Pvt. Ltd Graph 3. Conclusion: In the case of Surya Nepal Pvt. Ltd, there is positive relationship between ROA anc CCC. This means to increase the profit of Surya firm then they have to increase the value of working capital component. 4. 1. 3Regression Analysis: Dabur Nepal Pvt. Ltd Table 6 Independent Variables| Model-1| Model-2| Model-3| Model-4| ARCP| -0. 001|   |   |   | ACIP|   | -0. 020|   |   | APP|   |   | -0. 0003|   | CCC|   |   |   | -0. 0004| CR| 0. 020| 0. 115| 0. 045| 0. 017| FL| -0. 021| -0. 577| -0. 178| -0. 015| Lns| 0. 014| 0. 053| 0. 008| 0. 002| Adjusted R^2| 0. 780| 0. 7| 0. 517| 0. 815| F-test| 0. 010*| 0. 01*| 0. 0051*| 0. 077**| Surya Nepal Pvt. Ltd Table 7 Independent Variables| Model-1| Model-2| Model-3| Model-4| ARCP| -0. 003|   |   |   | ACIP|   | 0. 907|   |   | APP|   |   | -0. 008|   | CCC|   |   |   | 0. 953| CR| 0. 275| 0. 360| 0. 221| 0. 275 | FL| -1. 188| -1. 599| -0. 055| -1. 188| Lns| 0. 245| 0. 224| 0. 069| 0. 245| Adjusted R^2| 0. 770| 0. 67| 0. 71| 0. 79| F-test| 0. 0876**| 0. 0035*| 0. 012*| 0. 0144*| In the above table, F-test has been done at 5%=* and 10% =**significance of level. Table 6 and 7 presents the regression result of two firms of 4 models.According to the table 6 and 7, ARCP and ROA have negatively correlated. For the both Company if there is 1% increase in the days of collection period than less than 1% will decrease on the value of profitability. Similarly, for the both firm, liquidity ratio and size of firm is positively correlated. It means, increases in the sales that will increase the profit volume. Positive value of CR and LNS but negative value of financial leverage (FL) is accepted by all models. This means, if loan amount is increased by 1% then profit will decreased by 0. 21% in case of Dabur but more than 11% in case of Surya Nepal.All the, result revealed that, to increase the profit, fi rm should decrease the loan amount. According to the Model 4 from table 6, there is negative relationship between ROA and cash conversion cycle. This means, to increase the profit, Dabur should reduce the CCC. It is also supported by the theory of higher the working capital leads to the lower of profitability. On the other hand, model 4 from table 7 reveals that there is positive relationship between ROA and CCC. This result is beyond the theory and if Surya Nepal wants to increase its profit then it should increase the Working capital.It may the cause of poor situation of Nepalese economy, nature of business as well as less concentration on environment management that is leading to keep higher amount of stock. According to table 6, model 1 , 2 ,3 and 4 explained the dependent variable by independent in the portion of 78% , 77% , 51%, and 81 % respectively and remaining portion is due to other element. But in the table 7, dependent variable (ROA) is explained by independent in the f orm of 77%, 67%, 71%, and 79% and remaining part is covered by other elements. CHAPTER-V CONCLUSION AND RECOMMENDATION 5. Conclusion and RecommendationWorking capital management is the same of liquidity management and its related inversely with profitability but this theory always doesn't work. Here, I have found the different relationship between the component of working capital and profitability by taking financial data of Dabur Nepal Ltd and Surya Nepal Pvt. Ltd manufacturing from 2006-2011. This study appears that there is a negative significance relationship between average receivables collection period (ARCP), average conversion inventory period (ACIP, only case for Dabur), average payment period (APP) and the profitability measures.It is proved also a negative relationship between the cash conversion cycle (CCC) from the data of Dabur Company but it is not the result of universal fact because it is also proved that there can be a positive relationship between CCC and Profitab ility. The reason behind this can be the political risk, poor economy, lack of availability of raw materials and delivery of goods and services in time due to the labor union problem, increasing in supplier power, unavailability of credit facility, poor management of current assets and lack of efficient procedure and subsidy facility from government.After this analysis, the study recommends for the firms to manage their working capital efficiently to achieve the optimal profitability. Thus, the firms can manage their working capital through reduce the length time between sell the goods and receive cash of sales, it can do that by accelerating its collections. And it also reduce the length time between convert the raw materials into finished goods to sell these goods through. On the other hand the firms should shorten the length time between purchase goods to pay their purchases.All these will lead to shorten the cash conversion cycle and then lead to achieve the optimal profitabilit y. Moreover, we can't say that there will be lower profit due to higher CCC because due to the environmental factors the component of working capital can be influenced and result can go beyond the planning and objective. In the context of Nepal, where the practices of working capital management is poor and as a result firms are generating lower profit. Secondly, long procedure of raw material conversion and delay of payment also reduces the profit of firm.It can be the one cause of Positive relationship between CCC and profitability in case of Surya Nepal Pvt. Ltd. Therefore, reduction of working capital is not only best solution because environment analysis is also important factor. References: Amit, K. Malik, Debashish Sur and Debdas Rakshit (2005). Working Capital and Profitability: A Study on their Relationship with Reference to Selected Companies in Indian Pharmaceutical Industry, GITAM Journal of Management. 3: 51-62. 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