Prestige plastics (PP) pricing problem Case Study

Prestige plastics (PP) pricing problem - Case Study Example Major Facts Sue, being a graduate majored in materials management, discovered a pricing problem while working at a manufacturing firm named Prestige Plastics (PP) operating as a supply manager. Her job description consisted of purchasing chemicals for the firm’s plastic productions. The problematic chemical purchase for Sue was that of a chemical called X-pane made specifically for PP. A bid for this chemical was forwarded to six suppliers with an annual requirement of 10,000 drums. The Chicago Chemical Company bid the lowest. Greater Sandusky Chemical said it was impossible to bid that low based on approximate production costs of $750,000 amortized over the one-year contract to reduce loss. Other bidders agreed with this statement. Sue assessed that over the years bidding prices did increase reflecting cost growth. She knew something was wrong but also wanted to maintain the competitive bidding process. Major Problems The major problem consists of the cost growth required to produce the chemical X-pane increasing each year adversely affecting the competitive bidding process. The approximate setup cost of 750,000 for producing x-pane seems to be an issue with buyers in seeing this return over a one-year contract. Possible Solutions/Alternatives A. One alternative would be for Sue to work with the engineering department and assess if there is a better cost efficient chemical that gives the same product results as X-pane that is already on the market for purchase. B. Another alternative would be to reduce the estimated annual requirement of purchase and expand it over a longer period of time. Instead of the required purchase of 10,000 drums a year it can be pushed back to 10,000 drums in 19 months. C. Finding a more cost efficient product that produces the same result and expanding the purchase contract to 10,000 drums within a 19 month period would produce the best results. D. The advantage of finding a cost friendly chemical would decrease costs for the manufacturing firm and increase production from eager buyers. The disadvantage of this would be that the new chemical would not meet the standards set by X-pane. The advantages of increasing the contracts purchase period would allow for buyers to make a greater profit which would be pleasing for them and increase production for the company in the long run. The disadvantage of this would be that PP would not make as much money as it would if it kept the original contract in place. Choice and Rationale I chose choice B. Expanding the purchase contract would be more cost efficient than taking time to search for a new product and gambling on those results. Questions 1. Usually when five prerequisites are satisfied the buying manager can be assured of obtaining the lowest price. 2. According to the case a buying firm may fall into the â€Å"competitive bidding trap† when one company bids lower but increases its bid over time to produce an appearance of a demand but then the hidden fluctuated production costs over time decreases the demands for other competitors. This can create a blind spot in thinking that production is going well and not considering extra costs as time procures. Sue saw the fact that the Chicago Chemical Company placed a low bid for five years straight but failed to realize that the competitive market was decreasing which essentially decreases production. 3. During the first contract at Prestige Plastics Chicago Chemical’s bid was $202 per barrel which was $3 lower than the second lowest price. Each year Chicago Chemical’s prices were $3 to $15 lower than the lowest bid. This could be a strategic move played by the bidders making it seem like a competitive market while reflecting cost growth in materials required to get Prestige Plastics to offer a better deal in order to keep competitive bidding active. 4. During the current buy things seemed good for Prestige Plastics with Chicago Chemical giving the lowest bid but the othe r competitors were not satisfied with growing production costs. They felt the competition was unfair to them

Firearms :: essays research papers

Firearms War. Conflict. Famine. Pestilence – these are the four horsemen of Apocalypse as the people in the mid-ages imagined them. They stormed through countries and cities, leaving thousands dead, injured, frightened or crying behind. The first two – the most merciful ones, or to be more precise, the fatal tools they use to make their evil deeds are the subject of my essay. To be precise, I’m going to speak about the types of modern firearms - the ones that a single man can handle and which fire bullets – very simple, easy-to-use and deadly. Revolvers – these can be described as pistols with revolving chamber which enables you to fire several shots without reloading. Revolvers were popular in the end of XIX - beginning of XX century because they are quite easy to use, reliable, and cheap, but were soon replaced by pistols because of their limited capacity and mobility. However, revolvers are still used by the policemen -- large-caliber bullets they use (â€Å"Magnum† 45 or 36 millimeter) can knock out an outlaw at first shot, even if fired in foot. Revolvers usually hold 5, 6, or 7 bullets. There are 2 major types of revolvers: with single and simultaneous extraction of fired shells. In the first case, after you’re done shooting, you have to take out every single shell using some sharp object to push on it from the front holes of the chamber. In the second case, the revolver usually opens up, â€Å"breaking into two pieces† and you pull out every single shell, or the chamber is shifted left an d emptied by pushing on the special rod in the front (i.e. â€Å"Colt† or â€Å"Smith-Wesson†). Revolvers are also divided into manual and automatic ones. In the manual revolver you have to draw back the firing lever each time to make a shot, in automatic it moves back itself, each time you pull on the trigger. Pistol – The main difference between revolvers and pistols it that the revolvers use the muscular force of the shooter to recharge, and on the other hand, pistols use the energy of gunpowder gases and don’t have revolving chambers. There are lots of different designs of pistols, but the principle of work is the same. Pistol’s bullets are usually located in its handle, and are of a smaller caliber than those of revolver. The capacity of the pistol’s cartridge can range from 5 to 30 bullets and pistols shoot automatically, as many times as you pull the trigger (of course, until it runs out of bullets).

Morality is timeless Essay

Harper Lee’s To Kill a Mockingbird highlights examples of heroism and courage in a small Alabama town plagued with racism and poverty. The novel focuses on the experiences of the Finch family which consists of Atticus, Jem, and Scout. Scout serves as the narrator of the book; her story is based on her recollections of the events leading up to, during, and after her father’s defense of Tom Robinson, a black man accused of raping Mayell Ewell, a white woman. To Kill a Mockingbird is not only a critique of racism, but teaches valuable life lessons about moral courage and standing up for what is right. The protagonist, Atticus, displays both moral and physical courage throughout the novel. He is committed to instilling in his children the importance of living an ethical lifestyle regardless of the circumstances. For example, he explains to Scout that he accepted the Tom Robinson case because it is a moral obligation for equal representation. Specifically, he clarifies to Scout that the primary reason is † if I didn’t I couldn’t hold up my head in town, I couldn’t represent this county in the legislature, I couldn’t even tell you or Jem not to do something again† (Lee 83). Atticus believes that it is only fair to judge one in terms of that individual’s moral caliber not by the color of their skin. Furthermore, he does not condone retaliation. Even though Mrs. Dubose, a morphine addict, is prejudice and unkind, Atticus reprimands Jem for behaving heartlessly towards her. Atticus never loses his composure even when Bob Ewell maliciously spits in his face. He rationally explains, â€Å"He had to take it out on somebody and I’d rather it be me than that houseful of children out there. You understand? † (Lee 218). Harper Lee’s lesson is that a person’s morals should not be affected by other’s behaviors or beliefs. Honor Above All 1 Steiner 2 Harper Lee creates the narrator, Scout, to demonstrate that morality is not necessarily instinctive but can be taught. As the novel progresses, Scout realizes that moral courage is more difficult to carry out than physical courage. No one in the community wants to associate with Boo Radley; however, Scout comes to recognize his compassion and returns it with civility. Although initially fearful, Scout welcomes Boo’s gifts and embraces his differences. Again, Scout demonstrates that morality can be learned when a potentially violent situation arises at playground with another classmate; she refrains from using force. Her calmer nature proves effective at the courthouse. She harmlessly inquires about Mr. Cunningham’s family, â€Å"Hey Mr. Cunningham. I know your son, Walter he is a nice kid. We go to school together†¦Ã¢â‚¬  (Lee 81). Her kindness results in the scattering of the angry townspeople. Scout witnesses that kindness is effective tool to avert violence. The minor characters of Calpurnia, Tom Robinson, and Boo Radley are symbols of decency and respect regardless of their backgrounds. Calpurnia chastises Scout for mocking Walter’s unsophisticated eating habits. â€Å"Hush your mouth! Don’t matter who they are, anybody sets foot in this house’s yo’ comp’ny, and don’t you let me catch you remarkin’ on their ways like you was so high and mighty†¦! † (Lee 33). Calpurnia is a maternal figure for the Finch children as she too, similarly to Atticus, helps them to differentiate right from wrong. Tom Robinson exhibits courage when he volunteers to help Mayella Ewell with household chores even though he is aware of his inferior social standing. His decision to speak only the truth in court by stating, â€Å"I felt right sorry for her; she seemed to try more’n the rest of ’em. ,†(Lee 197) further demonstrates his caring demeanor and commitment to behave courteously. Lee includes the character of Boo to Honor Above All 2 Steiner 3 depict another type of prejudice: social discrimination. Despite his social alienation, Boo courageously abandons the safety of his home to help ‘his kids. ’ Boo is guided by his sense of what is right and puts aside society’s rejection. Calpurnia, Tom Robinson, and Boo are guided by morality. Courage can be defined as the ability to face fear, pain, uncertainty, and the unknown. Harper Lee effectively uses her characters to demonstrate moral and immoral choices and consequences. Atticus and Scout respond to the town’s racism with a resolute sense of purpose. Through her father’s and Calpurnia’s guidance she becomes more refined and tolerant. She averts physical confrontations at school and understands that morality should not change with each situation. The character of Tom Robinson symbolizes what it truly means to be a caring human being. Regardless of the racism that he endures, he is honest and compassionate. While racism plays a significant role in Lee’s novel; the importance of moral courage cannot be understated. As Atticus profoundly advises, â€Å"You’ll never know really understand a person until you consider things from his point of view†¦ † (Lee 65). Harper Lee conveys that since justice is blind to race, gender, and differences a moral code is the only hope for equality. Unfortunately, as exhibited in the novel, adhering to one’s moral code does not always guarantee the desired or just outcome. Lee, Harper. To Kill a Mockingbird. London: Vintage Classics, 2007. Print. Honor Above All 3.

It Governance And Corporate Governance Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1476 Downloads: 1 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? This assignment work specifically based on IT governance services at ING, The IT governance can be defined as services which provided by Governance rule, and its include Senior management for direct ,measure and evaluate the use of an enterprises the resources support achievement of un-organization structure and process. 5 Description of the company and the market it operates ING is a financial institution of Dutch origin offering banking, insurance and asset management services, the company was formed in 1991 after a merger between the NMB Postbank and the insurance company Nationale-Nederlanden, the merger created the ING Group. The term ING is abbreviated as Internationale Nederlanden Groep. The companys head quarters is located in Armstedam,Netherland, After the merger the company expanded its markets beyond netherland by making acquisitionson different parts of the world on the banking and insurance sectors. ING operations are divided into three sections the banking, asset management and the insurance section, whereas in banking the company offers services in commercial banking(for coporations and institutions),retail banking as well as investment banking.In insurance the company provides retirement and life insurance services and asset management for fund distributors, institutional clients. As of 2010 the company had a net income of $77 bil lion dollars, with more than 100,000 employees worldwide, According to the fortunemagazine the company serves 85 million clients worldwide both businesses and individuals. (165) Don’t waste time! Our writers will create an original "It Governance And Corporate Governance Finance Essay" essay for you Create order A description of the IT governance used First we must to understand what is the IT governance and how its work IT governance is the process and the relationship that leads to reasoned decision making. For direct measure and evaluate the use of an organisation process, to support the structure and process This Include, what decision need to made, who is accountable for making the decision, how with the decision be made. It governance used the type which it called dashboard process, this dashboard process is carried out at the same time as INGs annual medium -term business planning exercise for provide the information necessary to develop and compare the most appropriate metrics on IT spend, performance and value, help identify positive and negative trends, enable direct comparison with specifically commissioned for group information and direct comparison of metrics among different business units. Meanwhile for to assist senior business and IT management to exercise their governance responsibilities over IT invest ments With the rapid expansion of the company the case study shows ING decided to introduce governance on its IT investment management, by doing this the company viewed its IT as investment rather than operational costs, for better managing such investment an IT governance was devised, whereas the governance stipulated all the rules and conditions that are to be followed in regards to IT investments, the fundaments of the governance was around assigning responsibilities, better communication channels, empowerment and authority, in implementing this different boards and committees were formed with specific responsibilities e.g. IT policy Board. The it governance used was structured in a way that it only fulfils the goal of accomplishing the business values of the firm, As an investment the governance was used to guide management of IT investment as a normal investment, whereby different measurement techniques were used to calculate different variations in relation to the IT such a s investment return of IT, performance, value before investing, and risk analysis. 6 The governance also empowers designated individuals to conduct continuous monitoring and evaluations of IT investments in a bid to ensure that the benefits are inclining with the business strategy and that contingencies are in place in case of deviations, and the company is not far off from the competitors. (366) A summary of the case study Since its formation in the early 1990s ING as a company has been constantly evolving its business strategy and information technology strategy, at first the company treated these two components as separate entities, i.e. there was miss-alignment between these two components, but this was not productive and the company saw itself lagging behind by not achieving its business goals, despite the company being committed to making major investments in IT resources, the return on such investments was not so visible, and since IT was the life blood of the company something had to be done. The gradual expansion of ING as a company made the company look far beyond its home base (Netherlands), and acknowledge that in order to evolve as an international company there has to be IT governance within the company strategy that is fully dedicated to provide guidelines to the management of IT infrastructure of the company. ING resolve this challenge by introducing IT Dashboard as a comprehensive framework to help organization align its strategic business objectives to its IT Investment. According to the case study Dashboard played an integral role in the rollout of ING bank strategies for global expansion. to the more success that can be demonstrate from its own IT dashboard analysis and the knowledge and the tools that have been developed, the ING is considering the potential benefit to the organisation in providing similar IT value and performance services to other organisation as an commercial service. (248) Critical Analysis By incorporating IT governance into the corporate strategy the company was able to conjoin the business strategy and the information technology strategy, since these two strategies tend to complement each other it was the right decision, because there now was a guide book on how to manage both strategies and definition of responsibilities, authority and empowerment within the company in the process making sure the IT processes are solely there to support the achievement of the companys business goals, this eliminated the probability of bad IT investments, with the increase in accountability and better communication exchange within the company. IT governance has made an impact on the board level by ensuring that the top management is constantly informed and IT investment is transparent to management, however in the case study, ING confessed the financial transparency of many IT investments is not as clearly defined as it should be therefore, ING is not always clear on the returns expected from the investment being made. 7 IT governance has made an impact on the board level by ensuring that the top management is constantly informed, about IT related issues and the governance structure is devised in a way to make sure that leaders are fully committed. Also the implementation of IT governance has encourage specialisation and division of labour within ING whereby different specific-tasked committees have been created with responsibility to deal with different aspects of IT governance, for example committees were formed for making policies, Information security, standards and IT investments. This enabled the company to make good and quick decision as a result of good communication channels and credible information. This has increased efficiency and employee productivity. By having a formal process of governing its IT operation the company has been able to control its IT expenditure on current IT infrastructure as well as new developments, this has becom e possible because of the creation of IT related committees at board level which discuss about the policies, standards that must be adhered to when it comes to IT investments, therefore it has minimised the misallocation of funds on IT projects that are not sustainable or too risky. IT governance increased transparency within the company, especially after adopting the IT Dashboard which was used as a communication channel for the companys board in making sensible decisions relating to IT investments. By having a formal structure of governance and communication exchange between business side and the information technology side within ING, it has led to clear definition of responsibilities and activities to be known by each employee, as a result it has led to strong cooperation between employees which in turn has had a positive morale on the employees of the company, since everyone knows his/her responsibility and what he/she is accountable for The IT governance has helped th e company to have formal guidelines that aid the company in IT investments, so as to protect the company from unforeseen risks that come with investments, by applying IT governance there was a formal method of assessing stages, people involved, and formalities to follow that an IT investment portfolio has to go through before it is sanctioned, by applying different IT metrics which were used to measure the risks, budgets, value, return on investments and the overall costs, Therefore the decision making process was more thorough compared to before and increased the success ratio on all IT investments within the company. Also the introduction of IT governance simplified decision making process when it comes to IT investments whereby decisions were done in a responsible and careful manner through liaising between the IT managers and business managers and the Board, by knowing whos responsible and accountable it eliminated the bureaucracy within the company and that business critical decisions relating to IT were made much quicker. (627) 8