Research Articles Base: Financial Risks Essays

Business and Financial Risks

Business risk is related to operating features of a firm while financial risk is related to the strategies behind the capital structure of a firm.  The former is a type of risk that is outside the control of firms and hardly affected by certain tactics and strategies because business risk is very dynamic and uncertain.  On the other hand, the latter involves factors within the scope of managerial control because it arises from borrowed funds the company is bound to pay unlike equity funds.  However, they are both under the definition of systematic risk or inherent risks of companies that cannot be reduced by diversification strategies.  Business risks includes example such as the sensitivity of competitive structure of an industry to changes in macroeconomic variables such as inflation and interest rates.  On the other hand, the more debt a firm has a greater level of financial risk or inability to meet such obligation.   Cost of equity capital is the most complicated component of firm’s cost of capital.  It is definition as the rate of return required on a firm’s shares by the investors in the financial markets is also the source of the problem because there is no direct method to discover the require return of investors.  In effect, there are two main methods like the constant dividend growth and CAPM that are used to estimate it.  The use of the former leads to simplicity and ease of application of deriving the cost of equity which makes it a practical method to consider.  But disadvantages arise in its assumptions.  One is that the assumption of constant dividend growth which not all companies is doing.  Second is deriving the value of a firm by its dividend payments which undermine other indications of growth and stability like investments that caused retained earnings to raise.  In addition, data that is used to install growth rate is based on past information which is not appropriate in estimating the future returns of a company.   With these disadvantages comes the capital asset pricing model (CAPM).  The systematic risk which comprised of business and financial risks is represented by beta coefficient which is one of the key variables the CAPM.  In determining beta, business and financial risks of a company should be studied in order to give a reliable estimate of beta.  Beta is important in the formula of CAPM because it serves as the muloutiplier for risk premium attached to a certain class of security.  It will determine how an individual security or portfolio return is sensitive on overall market return.  CAPM advantages are derived from its ability to include analysis on both dividends and capital gains which are undermined by constant dividend model.  In effect, although more complicated, CAPM is a more accurate measure of cost of equity capital.  And CAPM heavily relies on scanning business and financial risks to estimate beta coefficient which able to recognize risks unlike constant dividend model.       Calculations as follows for the 2nd and 3rd question 64,000 Less 25,600 38,400 38,400 / 320,000 Therefore the required rate of return is: 12%. 2b. Â£ 64,000 8,000 72,000 25,600 6,400 Less 32,000 40,000 40,000 / 320,000 Therefore the required rate of return is now: 12.5%. 3a. WACC = 15% x 320k + 9% x 400k 320k+400k 320k+400k = 6.67 + 4.99 = 11.67 3b. 28,800 7,200 36,000 Plus: 30p 48,000 Earnings = 84,000                 Credit:ivythesis.typepad.com

Business and Financial Risks

Business risk is related to operating features of a firm while financial risk is related to the strategies behind the capital structur...

Business Finance

Introduction Over thirty-five years have passed since academics began speculating on the impact that information technology (IT) would have on organizational structure. The debate is still on-going, and both researchers and managers continue to explore the relationship between IT and organizational structure. This relationship is becoming increasingly complicated by both the rapidly changing nature of IT and the increasing environmental turbulence faced by many organizations. As organizations need to process more information under these uncertain conditions, IT is one possible way for organizations to increase their information processing capability. However, other, more organizational tools are also at their disposal for processing more information. These include task forces, lateral relationships, self-contained work groups, and slack resources. Thus, the relationship between IT and organizational structures is not a simple one (Earl 1998).   IT has a dramatic effect on both people’s personal and professional lives. IT is also changing the nature of organizations by providing opportunities to make fundamental changes in the way they do business. Many of the opportunities are recognized and understood. Yet a tremendous number of issues and consequences are only vaguely perceived while other questions are just now being raised (Beard 1996). The technology is changing rapidly, with computing speeds and the number of transistor equivalents available in a given area of a microprocessor chip both doubling approximately every 18 months. Organizations are acquiring more and more technology systems to assist in everything from manufacturing to the management of information to the provision and improvement of customer service. Harnessing and coordinating this computing power is the challenge. New tools and innovative perspectives with which to examine, interpret, and comprehend these rapidly evolving environments are always needed and sought (Beard 1996).   IT is transforming the way that business is conducted. Computers prepare invoices, issue checks, keep track of the movement of stock, and store personnel and payroll records. Word processing and personal computers are changing the patterns of office work, and the spread of information technology is affecting the efficiency and competitiveness of business, the structure of the work force, and the overall growth of economic output. This transformation in the way in which information is managed in the economy constitutes a revolution that may have economic consequences as large as those brought about by the industrial revolution (Allen & Morton 1994).  Many people believe that the primary driving force behind this information revolution is progress in microelectronic technology, particularly in the development of integrated circuits or chips. Thus, the reason that computing power that used to fill a room and cost million now stands on a desk and costs 00 or that pocket calculators that used to cost 00 now cost is that society happens to have benefited from a series of spectacularly successful inventions in the field of electronics. But fewer people understand why the introduction of information technology occurred when it did or took the path that it did, why data processing came before word processing or why computers transformed the office environment before they transformed the factory environment. Because this technology oriented view of the causes of the information revolution offers little guidance to the direction that technological developments have taken thus far, it offers little insight into the direction that they will take in the future (Allen & Morton 1994).    Finance is a branch of economics concerned with providing funds to individuals, businesses, and governments. Finance allows these entities to use credit instead of cash to purchase goods and invest in projects. For example, an individual can borrow money from a bank to buy a home. An industrial firm can raise money through investors to build a new factory. Governments can issue bonds to raise money for projects (Fanelli & Medhora 2002).  Public Finance is the field of economics concerned with how governments raise money, how that money is spent, and the effects of these activities on the economy and on society. Public finance studies how governments at all levels whether national, state, and local provide the public with desired services and how they secure the financial resources to pay for these services (Lutz 1936).    This paper lays emphasis on the creative use of information technology to process financial information, clear presentation and communication of ideas, and effective team-working. These skills improve self-awareness, self-confidence and viability in the job market. This paper will discuss whether the Chief Executive was justified in asserting that the performance and financial position of Laidback Leisure Group plc shows a picture of great financial strength. This paper will discuss whether any errors in the Chief Executive’s statements were found that indicate they might not have taken account of all the relevant costs of this investment project. Furthermore this paper will discuss if there any other factors that ought to be considered other than the financial data relating to the investment project. The information that will be gathered will be used in creating a proper conclusion.   Summary of the chief executive’s circular In the circular the chief executive believed that the performance and financial position of the group show a picture of great strength. The last four years have seen the company’s operations become increasingly diversified, and the turnover has more than doubled a clear indication of successful management.  The share price has also more than doubled over the same period.  And since the end of the last financial year, the company has drawn up plans for building a new luxury 300-bedroom hotel in the English resort of Bournemouth.  The new hotel will certainly result in a substantial increase in shareholder value, further boosting the company’s share price.  It will be one more step towards the achievement of their corporate objective of becoming the largest hotel group in the UK within five years. The capital cost of the new hotel would be £30 million, an expenditure that would attract accelerated capital allowances on a straight-line basis at the rate of 10% per year, commencing immediately on completion of construction. Of course, since depreciation is not really a cash flow, this is not relevant for appraisal of the project. Construction will be completed, and the hotel will become operational, one year after investment of the amount of £50 million. Working capital of £1½ million will need to be invested before commencing operations, and it is expected that the same level of working capital would be sufficient for the duration of the project. In keeping with the class of the hotel, the average room charge per night would be £100 per room, whether one or more persons use the room. The main operating cost would be the annual staff costs of £4 million.  The other significant operating costs would be services such as gas, electricity, water, etc. amounting to £1.8 million per year, and maintenance and other costs of £400,000 per year. In addition to the revenue from rooms, the residents are expected to spend an average of £40 per person per day on food and drink, and £15 per person per day on other hotel facilities.  On the basis of our past experience, the profit margin on food and drink has been estimated at 40% and on other facilities at 30%.  On top of this, non-resident guests are expected to provide an annual contribution of £1 million per year.   The performance of the company having financial strength Any organization, whether public or private, has to live within financial constraints and to deliver perceived value for money to its stakeholders. The role of the finance function is to manage the financial resources of the organization, and to ensure that the financial constraints it faces are not breached. Failure to do this will lead to financial distress, and ultimately, for many organizations, to financial failure or bankruptcy. Thus, financial planning and control is an essential part of the overall management process. Establishment of precisely what the financial constraints are and how the proposed operating plans will impact upon them are a central part of the finance function. This is generally undertaken by the development of financial plans that outline the financial outcomes that are necessary for the organization to meet its commitments. Financial control can be seen as the process by which such plans are monitored and necessary corrective action proposed where significant deviations are detected (Neely 2002).   There are three main areas of focus for financial plans. Most basically, cash flow planning is required to ensure that the cash is available to meet the financial obligations of the organization. Failure to manage cash flows will result in technical insolvency or the inability to meet payments when they are legally required to be made. For business organizations, the second area requiring attention is profitability, or the need to acquire resources at a greater rate than using them. Although over the life of an enterprise, total net cash flow and total profit are essentially equal, this can mask the fact that in the short-term they can be very different. Indeed, one of the major causes of failure of new small business enterprises is not that they are unprofitable in the long term, but that growth in profitable activity has outstripped the cash necessary to resource it. The major difference between profit and cash flow is the time period between payments made for capital assets which will generate income in the future and the actual receipt of that income which is needed as working capital. This highlights the third area of focus, namely on assets and the provision of finance for their purchase. In accounting terms, the focus of attention is on the balance sheet, rather than the profit and loss account or the cash flow statement (Neely 2002).   The chief executive of Laidback Leisure Group plc made a statement saying that the performance and financial position of Laidback Leisure Group plc shows a picture of great financial strength. As shown in the financial statements of the company it can be said that the company has been doing well. The company’s profit is continuously going up during four years. The chief executive’s statement was justified in asserting that the performance and financial position of the company showed a picture of financial strength. When a company is doing well financially it means it has financial strength. The company when it is doing well financially can overcome any problems it has. It can conquer any competitors. It can gain more resources so that the services and products of the company can be the one that gives outmost satisfaction to the customers. This things show financial strength. Having financial strength increases the stature of a company; it also gives the company prestige and distinct personality against competitors. Financial strengths prepare the company for anything it might face in the future. Errors in the statement of the chief executive Investment projects can be classified into three categories on the basis of how they influence the investment decision process: independent projects, mutually exclusive projects and contingent projects. An independent project is one the acceptance or rejection of which does not directly eliminate other projects from consideration or affect the likelihood of their selection. For example, management may want to introduce a new product line and at the same time may want to replace a machine which is currently producing a different product. These two projects can be considered independently of each other if there are sufficient resources to adopt both, provided they meet the firm’s investment criteria. These projects can be evaluated independently and a decision made to accept or reject them depending upon whether they add value to the firm (Dayananda et al. 2002).   Two or more projects that cannot be pursued simultaneously are called mutually exclusive projects or the acceptance of one prevents the acceptance of the alternative proposal. Therefore, mutually exclusive projects involve either-or decisions. Alternative proposals cannot be pursued simultaneously. For example, a firm may own a block of land which is large enough to establish a shoe manufacturing business or a steel fabrication plant. If shoe manufacturing is chosen the alternative of steel fabrication is eliminated. Mutually exclusive projects can be evaluated separately to select the one which yields the highest net present value to the firm. The early identification of mutually exclusive alternatives is crucial for a logical screening of investments. Otherwise, a lot of hard work and resources can be wasted if two divisions independently investigate, develop and initiate projects which are later recognized to be mutually exclusive (Dayananda et al. 2002).   A contingent project is one the acceptance or rejection of which is dependent on the decision to accept or reject one or more other projects. Contingent projects may be complementary or substitutes. In contrast, substitute projects are ones where the degree of success of one project is increased by the decision to reject the other project. For example, market research indicates demand sufficient to justify two restaurants in a shopping complex and the firm is considering one Chinese and one Thai restaurant. Customers visiting this shopping complex seem to treat Chinese and Thai food as close substitutes and have a slight preference for Thai food over Chinese (Dayananda et al. 2002).   Consequently, if the firm establishes both restaurants, the Chinese restaurant’s cash flows are likely to be adversely affected. This may result in negative net present value for the Chinese restaurant. In this situation, the success of the Chinese restaurant project will depend on the decision to reject the Thai restaurant proposal. Since they are close substitutes, the rejection of one will definitely boost the cash flows of the other. Contingent projects should be analysed by taking into account the cash flow interactions of all the projects. (Dayananda et al. 2002). An error in the chief executive’s statement is it being so complacent without any contingency measures on what to do when problems arise. The statement well explained the plans and goals for the next years and what can happen during the next few years but the statement did not contain any contingency plans when problems arise. Problems that a company might face include financial losses, insufficient supplies, personnel disputes, economic problems affecting the company and many others. The company cannot be sure that the plan will go on in the next year; hindrances mentioned above may disrupt the plan and give the company problems than benefits. The chief executive was so complacent that nothing will go wrong with the plan that no contingency measures were addressed.   Other factors that ought to be considered Other things that should be considered other than the financial data relating to the investment project are the popularity of the company towards the clients, the situation in the internal and external environments, and the future business possibilities. A thing that should be considered is the popularity of the company. Other than financial data the thing that should be considered is how known the company is to the clients. The client is one of the reasons for the company’s existence and nothing done by the company will be successful if there is no support by the clients. Another thing that the company should consider is the internal and external environments. The internal environments include the employees and their problems, machine defects, the strength and weakness of the company. The internal environment show how strong the company’s structure is from the inside, it shows why the company acts in a limited way.  On the other hand the external environment composes of the political and economic problems of the company as well as the competitors it has. The external environment is the things that give the company difficult scenarios, it causes some events to prevent the company’s achievement of goal. Lastly one thing that should be considered is the future business possibilities. Nothing can give a definite and concrete prediction of the future. By considering future problems and using plans the company cannot be sidetracked by any events.   Capital Asset Pricing Model William Sharpe derived the Capital Asset Pricing Model (CAPM) based on Markowitz’s portfolio theory. For example, a key assumption of the CAPM is that investors hold highly diversified portfolios and thus can eliminate a significant proportion of total risk. The CAPM was a breakthrough in modern finance because for the first time a model became available which enabled academics, financiers and investors to link the risk and return for an asset together, and which explained the underlying mechanism of asset pricing in capital markets (Mcmenamin 1999). For anyone making an investment decision and trying to determine what return they should require for assuming a given level of risk the CAPM seemed to have come up with the answer. The CAPM demonstrated how risk and return could be linked together and specified the nature of the risk-return relationship for any security or asset. The impact of the CAPM has been immense and it is one of the most influential financial concepts in recent financial management history. It is the basic theory which links together relevant risk and expected return for any security. Although Sharpe originally developed the CAPM in the context of pricing ordinary shares in the stock market, the model has been subsequently extended and applied to evaluate the decisions by firms to invest in corporate assets. Indeed, one way of viewing the firm is as a portfolio of tangible assets and investment projects.  All financial decisions contain a risk element and a return element and that there is always a trade-off between these two elements: the higher the perceived risk, the higher will be the required return and vice versa. The CAPM was the first method of formally expressing this risk-return relationship: it brought together systematic risk and return for all assets (Mcmenamin 1999).    Conclusion IT has a dramatic effect on both people’s personal and professional lives. IT is also changing the nature of organizations by providing opportunities to make fundamental changes in the way they do business. One of these changes is applied to finance. Finance allows different entities to use credit instead of cash to purchase goods and invest in projects. The chief executive’s statement was justified in asserting that the performance and financial position of the company showed a picture of financial strength.The chief executive was so complacent that nothing will go wrong with the plan that no contingency measures were addressed. Other things that should be considered other than the financial data relating to the investment project are the popularity of the company towards the clients, the situation in the internal and external environments, and the future business possibilities.   Information Technology can assist in the investment project the chief executive wants to accomplish. Through the use of the information technology the performance of the company can be improved, the errors can be fixed, and the other factors ought to be considered can be given attention. Added with the use of the capital asset pricing model the project can be a success and with lesser problems in the future. The company may be doing well in its finances but no one can tell what might happen in the future. Through the contingency measures events can be prevented, and problems can be given solutions. Through the other things that should be considered other than the financial data a better future for the company can be made.   Recommendations The chief executive should be wary of the methods he use to asses the company’s performance. The chief executive should take a look at other factors before saying that the investment project will be a successful one. The other factors mentioned should be given attention to assess what problems the company might encounter. Through combining techniques in information technology and methods in finance nothing will go wrong for the company and the company will gain the best stature in the market. References Allen, TJ & Morton, MS (eds.) 1994, Information technology and the corporation of the 1990s: research studies, Oxford University Press, New York.   Beard, JW (ed.) 1996, Impression management and information technology, Quorum Books, Westport, CT.   Dayananda, D, Harrison, S, Herbohn, J, Irons, R & Rowland, P 2002, Financial appraisal of investment projects, Cambridge University Press, Cambridge, England.   Earl, MJ (ed.) 1998, Information management: the organizational dimension, Oxford University Press, Oxford.   Fanelli, JM & Medhora, R (eds.) 2002, Finance and competitiveness in developing countries, Routledge,  London.   Lutz, HL 1936, Public finance, D. Appleton-Century, New York.   Mcmenamin, J 1999, Financial management: an introduction, Routledge, London.   Neely, A (ed.) 2002, Business performance measurement: theory and practice, Cambridge University Press, Cambridge, England. Credit:ivythesis.typepad.com

Business Finance

Introduction Over thirty-five years have passed since academics began speculating on the impact that information technology (IT) would h...

HSBC Valuation Methods

The method of valuation of investment properties is disclosed which justifies the increase of their net book value and crediting to income statement.  However, there is no explicit terminology (e.g. sum-of-years, double-declining balance) to described the depreciation method being applied as well the asset’s useful lives and depreciation rates.  Computations on carrying amount and accumulated depreciation are shown with current and previous year comparisons.  Carrying amounts at the beginning through the end of the period are adjusted by considering additions, disposals, and exchange differences among others.                                      Bearing in mind that PPE of HSBC are land and buildings, other disclosure involves their nature as finance lease contracts, expenditure and commitments but there are no third party compensation clause.  In the revaluation of its investment properties, HSBC disclosed the effective date of revaluation (e.g. every 31 December), involvement of independent professional valuers (e.g. DTZ Debenham Ltd), use of open market basis and recognition of contractual obligations on investment properties.  However, there is no presentation on alternative cost model.  There are no disposed non-current assets that HSBC has executed.  As there is no specific depreciation method used, it is undeterminable to comment about its semblance with pattern of asset’s economic benefits and consumption.                         In valuing intangible assets, HSBC seemingly is not within the scope of IAS 38 because it included goodwill arising from issuance contracts which is beyond the scope of the standard.  However, the analysis will be focused on certain contents which coincide with the provisions of IAS 38.  For example, HSBC created a classification of intangible assets under “other” account which make it impossible to assess its ground for recognition.  There are also figures concerning present value of in-force long-term insurance benefits.  Further, adjustments for PPE and intangible assets have the same accounts (e.g. additions, exchange differences, etc.).  However, the lack of text explanations for the notes to goodwill and intangible asset presentations inflicted the validity of internally-generated software which accounts for the biggest intangible property.       The strength of HSBC especially pertaining to current assets is that it revalues its non-assets regularly to avoid huge discrepancy of the previous period to the succeeding ones.  This is aided by presenting comparative revaluation results year-on-year.  As investment properties are only the ones that are revalued, HSBC also rescinded in revaluing non-current assets under finance lease contracts (FLCs).  This move is according to IAS guide on revaluation model.  In addition, investment properties are also imputed with the same adjustments and comparative presentations like non-current assets under FLCs.  As both accounting year 2006 and 2005 have revaluation surplus, it should be recorded in equity but HSBC opted to reflect it on notes under “non cash items included in profit and tax” and ultimately in income statement (IS).               One advantage of HSBC’s approach to non-current assets is that it applies a comprehensive valuation of PPEs even though the company does not gain most of its income from non-current assets such land and building.  This reflects managerial evaluation due to inability of available depreciation methods to suffice representation needs.  However, this strategy can also minimize the “true and fair” impression on its BS because of excessive non-objective application of valuation techniques.  In contrast, HSBC is able to redeem some spots of unbiased stance by regularly evaluating its techniques, inclusion of outside valuer and stating non-current asset restrictions.  However, the inability to reflect the revaluation surplus in equity account rather on IS makes the increase less useful to shareholders.               For the low-educated type of people, the BS of the company will be appreciated because it maximized managerial evaluation in determining the “true and fair” value of non-current assets for the purpose of information.  However, on the part of credit rating agencies (e.g. Standard & Poor), the opposite impression will result.  The same adjustment elements for non-current assets that are evaluated are also helpful in establishing ease of analysis from low-educated people.  In the contrary, agencies would prefer more complex numerical data to suffice the claim like the movement in PVIF shown in adjusting the values of intangible assets.  For both users, HSBC could infuse more textual explanations to the arrived figures especially in valuating goodwill and intangible assets because fewer details could mean confusion and speculations. Hang Seng Bank             Same as HSBC, Hang Seng use open market value, independent professional valuer and annual assessment method for its investment properties.  However, unlike HSBC, Hang Seng classifies their investment properties as operating leases.  The requirement disclosure of IAS 16 is not accounted as Hang Seng does not present a detailed surplus revaluation rather the note that supposedly explains the carrying amount and adjustments is inexistent.  Although the basis for valuing PPE is stated, the depreciation method used or the same problem on HSBC is not explicitly disclosed.  Useful lives of the PPEs are also not reflected.  On the other hand, reconciliation of investment properties and PPEs are included while the restrictions on assets are stated when presenting investment properties.                Alternative presentation for the cost model is excluded like the HSBC and also changes in economic benefits and consumption pattern of PPEs and investment properties are not discussed.  Possibly, this is the result when external valuers have found no significant valuation change for Hang Seng which is the present case.  Provisions on disposals are eminent in both PPEs and investment properties which requires the abolition of such assets in the BS.  In addition, a situation that Hang Seng would defer payment of certain properties to apply market interest is not determinable because there is no disclosure about purchase or lease transactions.  But Hang Seng included direct operating expenses as expenditures for investment properties which contribute to the increase of revaluation of investment properties.  In contrast, it is observable that no impairment looses that are recognized.  Also, there are no recorded amortizations that concretized the fact that the Hang Seng fully-paid such assets. Credit:ivythesis.typepad.com

HSBC Valuation Methods

The method of valuation of investment properties is disclosed which justifies the increase of their net book value and credit...

Business Insurance Report

Executive Summary           CellTech Laboratories Ltd is a small biotech business providing lab services, pharmaceuticals, and specialized testing kits to vets, agribusinesses, and other laboratories. It is mainly run by Adrian Hall, the founder, three shareholders and the senior management staff.             The general objective of the paper is to provide detailed insurance coverage for the company, its employees and the shareholders as well. Risk management refers to keeping to the positive side of risks. Risks are not entirely negative. They allow positive sides that can work to the risk-taker’s advantage. Therefore, risk management are present in the development and implementation of a business’s risk-taking strategy and it is anticipated that most individuals offering such risks are likely to be acting from non-commercial motives and will encourage highly functional, value-added, access and the Individual IP owners will appreciate the benefits of making risks.             In the light of risk taking and management, it is also vital that one must take a step to insure the risks one might take. Insurance plays a great role in the advancement of a business. Whether the risk taken is successful or not, it is always good to have been insured, it is some sort of back-up plan. The myriad of risks that can cause a small or midsize company to crumple has increased its number throughout the years. In the words of Thomas Wander of Tillinghast, a Towers Perrin company, a number of small and midsize companies are facing the equal number of risks as those of large multinational ones (McDonough, 1992). Also , a number of small-scale companies who purchase insurance coverage have increased in number over the last few years. In addition to that, the same employee-compensation problems are occurring in small companies same as those in large companies.             In the context of this paper, the insurance coverage and the risks covered by the insurance will be discussed.   Table of contents   Executive Summary Introduction and Background Risk planning and identification Risk analysis, evaluation and treatment Conclusion Recommendations List of references   Appendices  Introduction The quality, risk and procurement management and insurance report will examine the risks taken by CellTech, the needs of the company and its shareholders; the need to establish the appropriate levels of quality and build quality into the project processes and deliverables; how to ensure that the appropriate quality is given to each and every one of involved in the company; planning for the level of risk in a project and identifying the risks and uncertainties that could impact on the company; analysis and evaluation of the identified risks; definition of risk treatment strategies so that appropriate plans are in place for anticipated events; planning an appropriate procurement strategy for the project; review of the various procurement strategies and their implications for stakeholders; procedures for procurement solicitation and source selection; monitoring and control of the procurement processes; and identifying coverable (insurable) aspects of the company  and its shareholders. In the report and interview conducted with CallTech’s shareholders, we have identified the factors that may play a major role in the business insurance report. The report would cover key person, debt and obligation and share purchase cover.           CallTech is a 15 year old company which has been run by the founder, Adrian Hall, three shareholders and a senior management team. CellTech is financially sound. The latest books are not yet  complete, but Bob and the company accountant have advised you the company is likely to have made taxable profit of around like 0,000, valuing it at .4 million (based on a generally agreed EBIT times 6). CellTech pays out 50% of available surpluses after tax as tax paid dividends, and this expected to continue. Profit growth is expected to be strong over the next five years, mainly because of the rapid growth of several of their agribusiness customers. They conservatively believe its value will double during this time, and then level out.             As was mentioned in the interview, CellTech is leasing its purpose-built and ideally located premises for six years. It already used up the four years of its leasing term, and with a three-year right to renewal. An occupancy cost (lease and operating expenses) is 4,000 pa. The company is planning to purchase some high-tech equipment for 0,000 in two months. The purchase will be financed partly by using surplus cash, but will require additional borrowing of 0,000. The three shareholders, who are also company directors, will provide personal guarantees covering the full amount of all loans. Total current company debt is 0,000.             There have been talks about two companies interested in buying the company. These are two multinational suppliers. They are intent on purchasing the company whether it be available now or in the future.   Discussion Risk Planning and Identification The risk management planning will recognize the benefits of understanding risk management planning and identify the inputs used in planning risk management activities as well as identify the key components of a risk management plan. There are such inputs to risk identification like for instance, in dealing with the company’s risks; it is usually a must to have better understanding of the inputs to its risk identification of their business risks and of sources of information. There are certain tools and techniques for Risk Identification in terms of: Ø      Recognize the value of understanding the tools and techniques and the outputs of risk identification Ø      Identify the steps to performing documentation reviews Ø      Apply the steps to prepare for a documentation review for a given project Ø      Sequence the steps of the interviewing technique used for risk identification Ø      Apply the interviewing technique to gather information about project risks, given a scenario In addition to that, in insuring a company and its shareholders, certain risk planning is developing and documenting organized, comprehensive, and interactive strategies and methods for identifying risks.  It is also used for performing risk assessments to establish risk handling priorities, developing risk handling plans, monitoring the status of risk handling actions, determining and obtaining the resources to implement the risk management strategies.  Risk planning is used in the development and implementation of required training and communicating risk information up and down the project stakeholder organization.  There are several key elements in successfully implementing an effective risk management process and each is necessary for risk management planning. Risk Management is an ongoing process – it’s “cradle to grave”, starting on receipt of an invitation to tender, covering the bid period, the life of the project up to delivery then on through subsequent support phases. Furthermore, risk taking is essential to progress, and failure is often a key part of learning. On the other hand, the inevitability of risks does not imply the inability to recognize and manage risks to minimize potential negative consequences while retaining the opportunities for creating new and better opportunities for the company. The paradigm is represented as a circle to emphasize that risk management is a continuous process while the arrows show the logical and temporal flow of information between the activities in risk management. Communication is placed in the center of the paradigm because it is both the conduit through which information flows and, often, is the major obstacle to risk management and before risks can be managed, they must be identified. Identification surfaces risks before they become problems and adversely affect a company or its shareholders. There has to be developed techniques for surfacing risks by the application of a disciplined and systematic process that encourages project personnel to raise concerns and issues for subsequent analysis. Analysis is the conversion of risk data into risk decision-making information. Analysis provides the basis for the project manager to work on the “right” risks. The focus of the risk identification method described here is on risks that are known whether or not they have yet been communicated to project management, and on unknown risks. The risk identification method achieves the desired focus through the interdependence of the instrument, and its application process. Effective risk identification must cover all key development and support areas of the project. The risk identification process must create and sustain a non-judgmental and non-attributive risk elicitation environment so that tentative or controversial views are heard.   Potential Risk Treatments Once risks have been identified and assessed, all techniques to manage the risk fall into one or more of these four major categories: Ø      Transfer Ø      Avoidance Ø      Reduction Ø      Acceptance   The ideal use of these strategies may not be possible. Some of them may involve trade offs that are not acceptable to the organization or person making the risk management decisions.   Conclusion             The insurance of the company and its shareholders is a must not only for large, multinational companies but for small-scale companies as well. Therefore, there has to develop the rule of basics from the procurement strategies, identify operational improvement plans and be able to define the organizational and system savings required to support the management of its respected procurement as well as providing clear access upon the recent infrastructure for procurement strategy systems and identify gaps in process support, information analysis and integration of development. (Ndekugri and Turner, 1994) There defines requirement for a more cohesive and integrated procurement platform in order to determine and decide a practical and rollout procurement strategic planning as useful as possible within the new functionality of the development realization as it focuses particularly on unifying strategic layers that the process have spend and by acting out on the desired information from the best strategy can be improved continuously from its   transactions and application drives for the process of procurement systems. (Ndekugri and Turner, 1994) Recommendations In order to consistently deliver the best possible services into the market for its business through effective procurement and partnerships as it essential to take into account whole life costing, innovation and continual improvement for the strategies used. (Akintoye, 1994) Thus, the process of its procurement ways can be realized through providing leadership and building capacity for procurement though effective management, training and support. Aside, it is useful to have better process delivering excellent structures and procedures to facilitate effective procurement process and compliance. There has the environment stimulating the way it deals to the procurement matters working with the organizations both internal and external to execute and apply best practice of the procurement strategies involved. There should be certain guidelines as contained elements of strategy but the authority for the development of best practice and the utilization of procurement skills may possibly be an unclear notion. (Akintoye, 1994)   There has to be a well developed strategy providing:   Ø      A clear description of its procurement arrangements Ø      Authority for the timely application of procurement expertise Ø      For its application to all non-payroll expenditure wherever it may potentially add value and give assurance on propriety and regularity Ø       strategy approved at Management Board and participation of procurement staff Ø      Development of supplier base and modern procurement practice Ø      Restriction of right to negotiate prices, enter into contracts and to amend or alter contracts to procurement staff trained to exercise the necessary skills Ø      Management and enforcement of contracts to completion Ø      Standards and behavior in connection with procurement Ø      Setting of targets & performance monitoring Credit:ivythesis.typepad.com

Business Insurance Report

Executive Summary CellTech Laboratories Ltd is a small biotech business providing lab services, pharmaceuticals, and specializ...

Proposal And Marketing Plan: Integrated Summary Report of Wordplay Greeting Cards

Proposal and Marketing 		Plan 		Integrated Summary Report for Wordplay Greeting Cards       Executive 		Summary   Wordplay Greeting Cards’ (WGC) business downturn is attributable to specific factors relating to the loss of uniqueness and innovativeness of the company. The competitive environment along with the issues involving its personnel presents major problems in the improvement of the company. Innovation and change is the company’s ultimate goal. Nevertheless, the constant lacking and deficiency of initiative and adaptation has taken its toll in WGC in general. Bryce and Dancetty Consulting provide this report as an instrument in pinpointing the areas to which WGC could improve. Along with the observations of the consulting firm, the arguments and suggestions are supported in this report by the past and existing organizational studies. To this end, this report intends to recommend further studies on this area in order to essentially achieve the organizational goals of Wordplay Greeting Cards.   Chapter   1   Causes of Business Downturn Upon the conclusion of the first meeting of Bryce and Dancetty Consulting and its client Wordplay Greeting Cards (WGC), the firm has uncovered several issues that contributed greatly to the downturn in the business performance of WDC. Bryce and Dancetty Consulting have summarized it into four categories: competitive environment, personnel issues, lack of innovation, and climate change. The following will specifically discuss the observed barriers that held WDC’s progress at bay.   	Competitive Environment Organizations are now in a vicious field where cutthroat completion is commonplace among the players in their respective industries. The struggle to survive is dictated by the competitive advantage to which these companies possess. This appears to be one of the main problems of the firm with a major greeting card company as its main competitor, Hallmark. With its competitor acquiring a huge bulk of the existing market share, WGC has been encountering barriers in getting hold of an improvement with regards to sales and number of consumers.  	Personnel Issues Another issue that has taken a great impact on WGC is the existing concerns of turnover in the personnel. The management of the human resource has constantly been equated with an improvement in the performance of the organization. (Patterson et al, 1997) As observed in the context of WGC, the company may have been encountering problems with the morale and motivation of its personnel, specifically on those on sales clerk positions. The organization has to acquire different employment techniques to complement their current situation as a business entity. 	Lack of Innovation Companies are frequently caused to experience the changes that occur around them. In the present period, the modern-day roles of the organization have been varying as growth triggered by improvements in innovation and other theoretical works emerged. (Rousseau, 1997, 515) In the case of WDC, their ability to deal with pressures on the external environment is seen as a major barrier in carrying out innovations in the firm.   	Climate Change For several years already, the description of an organization as an entity has been employed to distinguish its dynamic characteristic. Wordplay Greeting Cards is not exempt on that phenomenon. With every attempt on innovation posed by the company, a considerable change in the culture of the organization is required. The Bryce and Dancetty Consulting have discovered the existence of some level of resistance to these changes within the organization. With certain adjustments in the way managers handle their subordinates, Bryce and Dancetty will be able to help WGC in assuaging this predicament.     Chapter   2     Sales Clerk Turnover   As indicated above, one of the problems of WGC is related to its management of personnel. Initially seen as a problem in compensation, WDC rectified it by providing financial augmentations in the compensation of the sales clerk. (Refer to Appendix 1) However, the rate of turnover relented. This prompted Bryce and Dancetty Consulting to surmise that indicated that the problem in WDC is not limited to compensation alone. The issue now rest on the motivation of not only the sales clerks of the company, but with the employees in general.    To this end, Bryce and Dancetty Consulting adhered with the theory presented by Herzberg. In the said theory, it claimed that individuals were motivated by a couple of different groups of what he characterized as motivators and hygiene factors. (Neff, 2002) The latter are not there to boost contentment or pleasure within a specific job, but are there to assist in putting off discontent. They take account of a respectable salary, working environment and the manner the company looks at and care for its personnel. Motivators, on the other hand, are features of the job which motivate individuals and take account of acknowledgment, responsibility, the character of the work and other means in which employers can develop the setting within which individuals work. Thus, the management have to concentrate their attention to the motivating factors to offer positive motivation, even as the hygiene factors similarly have to be satisfied. Still this claim points to Bryce and Dancetty Consulting’s points pertaining to the possibility of acquiring good performance will bring about with the existence of job satisfaction among the sales clerks.     Chapter   3   Wordplay Research Design   The following is a summary of a report regarding the internal environment of Wordplay Greeting Cards. The research included a survey of the existing websites that could help WGC in improving its innovativeness and creativity. This intended to measure the external environment of the firm with reference to the creativity and innovativeness of similar firms. Moreover, the project also included creation of a research tools to measure the level of creativity and innovativeness within the company.     	Wordplay Greeting Cards 1.    Website Identification and Evaluation In the research made by Bryce and Dancetty Consulting through the internet, it uncovered several sites that proved to be useful for Wordplay Greeting Cards. There were eight websites found in the internet that bear some worthy information regarding the improvement of creativity and innovativeness in the organization. (Refer to Appendix 2) The research indicated that companies like WGC who’s suffering from low creativity and innovation should benefit largely on the implementation of an effective market research. (QuantumBooks, 2006) This will allow WGC to not only find out the necessary adjustments needed to innovate and be creative, but also establish the areas that actually need improvement. On a similar note, it will also be of huge help to the organization if it finds creative individuals within its ranks. (Freeman, 2004) Finding these individuals and empowering them would bring about the necessary prerequisites needed by the WGC to adapt to these changes that entail from innovation. Moreover, career mobility (Costello, 2005), Motivation,(Black, 2006),  and career planning (Seneca Corporation, 2006) were also highlighted as major factors that would sustain the creativity of employees. Along with other factors such as the media (Freeman, 2004), work environment (Costello, 2005; Swicegood, 2001), leadership and open communication (Rule, 1998), Bryce and Dancetty Consulting was able to look into the areas of concern within the WGC organization.   2.    Questionnaire Design The Bryce and Dancetty Consulting firm opted to use the questionnaire as a tool since it is easy to construct having the rules and principles of construction are easy to follow. (Refer to Appendix 3) Moreover, copies of the questionnaire could reach a considerable number of respondents either by mail or by personal distribution. Generally, responses to a questionnaire are objectified and standardized and these make tabulation easy. But more importantly, the WGC employees’ replies are of their own free will because there is no interviewer to influence them.   3.    Rationale Bryce and Dancetty Consulting opted to employ employee feedback as opposed to consumer feedback. Bryce and Dancetty believe that the concerns of creativity and innovativeness will be handled and pinpointed much effectively through this manner. Moreover, other studies have indicated that the use of employee feedback entails other advantages for the company. According to Collins (2002), the use of employee feedback will make the employee of empowered in a certain manner. This means that the use of WGC of such means will make its employees feel a sense of importance as they are regarded as significant parts of the organization. Ahmad, McKnight, and Schroeder (2001) corroborated this claim and added that such a tool will improve the morale of the workforce. Bryce and Dancetty have produced a research plan that wholeheartedly reflects the interest of WGC’s management. It is its belief that this plan will be instrumental in propelling WGC into their next level of “creativity” and “innovation” and ultimately to their new found success.   	Question Design Bryce and Dancetty would similarly like WGC to look into the possibility of using new technology in improving the competitive advantage of the organization. It proposed the following research question: “What technology can be used by Wordplay Greeting Cards to gain advantage over its competitors?” Through the use of quantitative research, the needed information would be gathered from the external environment of the organization.       Chapter   4   Summary of Culture Changes     In this part of the research, Bryce and Dancetty took into consideration the possible change in the culture of WGC and its major competitor.         	Wordplay Greeting Cards and 	Climate Change   Bryce and Dancetty realize that creativeness and uniqueness of the cards and messages were the factors that driven the success of the Wordplay Greeting Cards in the industry. The recent studies have indicated that organizational culture is directly related to the morale of the organization. (Schrodt, 2002, 189)  This means that knowing the level of organizational morale may lead to the discovery of the overall culture of the organization. In the case of WGC, the creative enhancement generally depends on the designers and artists who are motivated. (Mauzy and Harriman, 2003) These designers are considered in the frontline with regards to the organization’s uniqueness and creativity. Ogbanna and Harris (2002) presented that the front-line employees are those who are more aware of the existence of the culture in the company as compared to the management level employees. This may pose a considerable problem considering that it is the managers who should be aware of the conditions prevailing in the culture of the organization. To this end, it is commissioned to these managers to encourage creativity and a certain level of autonomy to the designers of the WGC such there impact of the change in culture would be insulated.   	Competitors Bryce and Dancetty also took into consideration the major competitor of WGC, Hallmark. The study found out that the said company covers an international market share with distribution to over a hundred countries. (Micro Strategy, 2006) Its success may be attributed to the innovativeness of its staff and its rapport with the management. (Polilli, 1990) With Hallmark Cards development of effective strategies, nurturing and protecting the creativity of the designers, and open communication with its workforce triggered the success of Hallmark in its chosen industry.     Chapter   5     	Corporate Office An appointment for the presentation of findings will be provided by Bryce and Dancetty Consulting in front of the executives of Wordplay Greeting Cards. Computer applications are going to be used to ensure clarity of the data as it is conveyed to the audience. A copy of the report will be handed in leather bound fillers to allow individual scrutiny of the report. Questions regarding the report will be entertained after the presentation. It is recommended that the corporate office issue a memorandum indicating the need for region officers to be acquainted with the findings of the study.   	Region Officers A copy of the report would be sent to these region officers across the country. This would be sent concurrently with the memorandum sent by the corporate officers in the WCG headquarters. The two documents are to be accompanied by a package containing pamphlets made by Bryce and Dancetty Consulting indicating the major points of the report. It is recommended that the region officers issue a memorandum to store employees to carefully study the issued pamphlets.   	Store Employees Along with the memorandum, pamphlets containing the major points of the report would be given to the store employees. The employees are encouraged to read and familiarize themselves with the contents of the pamphlets.       Chapter   6     Conclusion   The summary has indicated the areas on which Wordplay Greeting Cards should take into consideration upon improving its uniqueness and creativity within the organization. Provision of flexibility in the company requires empowering the individual employee through the amalgamation of personnel management, organizational strategy and management strategy. Moreover, internal factors and external elements should be closely considered by the organization so as to adapt to the changes that may ensue once these internal and external elements become huge enough to implicate the operations of the organizations.  In addition, the study intends to be an impetus for further research on the area of creativity and innovation. With a much larger scale and more detailed review of the organization, WGC would be able to contend with its internal issues eventually accomplish its organizational goals.       Appendix 1   Appendi 			Job Description Revision Form 			Company:  			Happy Times Greeting Cards 			Location: 			Corporate Owned Stores 			Job title: 			Sales Clerk 			Current Job Description: 			 			  			This is an entry-level hourly position 			that handles the following tasks: <ul type="disc" style="margin-bottom: 0in"> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-bottom: 3.3pt"> 				Compute charges for merchandise or services and receive 				payments. </li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-bottom: 3.3pt"> 				Prepare merchandise for display or for purchase. </li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-bottom: 3.3pt"> 				Recommend and provide advice on a wide variety of products and 				services. </li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-bottom: 3.3pt"> 				Answer telephones to provide information and receive orders. 				</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-bottom: 3.3pt"> 				Greet customers and discuss the type, quality, and quantity of 				merchandise sought for purchase.</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-bottom: 3.3pt"> 				Keep records of transactions and of the number of customers 				entering an establishment. </li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-bottom: 3.3pt"> 				Explain company fees, policies, and procedures.</li> </ul> 			  			Future Job Description /  Recommended 			Changes: 			  <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in"> 				Explain company fees, policies and procedures in a contingent 				way depending on the current situation on hand.</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in"> 				Assuring that sales or customer visit quota is achieved within a 				specific period of time (day, week or month)</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in"> 				Greeting customers at all times but discuss the type, quality 				and quantity of merchandise to asking, regular or bulk-buying 				customers.</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in"> 				Solicit customer feedback through simple service evaluation 				sheet located in front of the cashier </li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in"> 				Prepare merchandize for display or for purchase according to the 				clerk’s assessment</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in"> 				Maintaining inventory, sales and customer records and other 				pertinent store data for weekly report to the general manager.</li> </ul> 			  			Examples of How Changes will Impact 			the Job: <ul style="margin-top: 0in; margin-bottom: 0in" type="disc"> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-top: 6.0pt"> 				There may be busy days which can limit the responses and actions 				of the clerk like answering phone, recommending products and 				organizing displays.  Attaching quotas can lift pressure and 				over-stress to clerks.</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-top: 6.0pt"> 				There may be customers that are just making excessive “fun” and 				interference with their product queries.  Keeping the subjective 				judgment of clerk in tact will not only defer waste of time but 				also will make clerk more efficient.</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-top: 6.0pt"> 				Clerk effort like smiling, greeting and assisting customers may 				not reflect in store quantitative quotas.  Evaluation sheets 				will not only provide the platform to evaluate clerk behavioral 				performance but also may serve as the company’s way of trusting 				the clerk (as if the clerk will not forge the evaluations 				sheets).</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-top: 6.0pt"> 				Current inventory may not sell very well. Giving clerk the 				freedom to solve this difficulty through self-assessment can 				induce confidence of oneself and selling skills.</li> <li class="MsoNormal" style="color: black; line-height: 150%; margin-left: .5in; margin-top: 6.0pt"> 				Multi-tasking can provide the needed challenge and hedge the 				repetitive nature of the job.    </li> </ul> 			  			  			  			  			Reasons for Changes: 			  			           According to Herzberg, these 			changes can stand as real motivators unlike the mere prevention of 			the sources of dissatisfaction from salaries and supervision 			(Accel-Team, 2005).  Job enrichment will create greater 			opportunities for individuals to increase variety, responsibility 			and accountability.  Thus, achievement and recognition is embraced 			in clerk performance due to autonomy and identity derived in the 			revised job design. x 1 Appendix 1 		Appendix 2     WEBSITES ADDRESS DESCRIPTION       Quantumbooks 			 			http://www.quantumbooks.com/Creativity.html This site begins by 			pinpointing precisely where it is that WGC needs to now focus their 			attention:  on their customer via their employees. GuardianJobs: 			Creative Urges 			 			 			http://jobsadvice.guardian.co.uk/discoveryourniche/story/0,,1218885,00.html  			   An article on this 			site written by Hilary Freeman focuses primarily on the creativity 			needed to break into the arts and media industry eLearning Centers @ 			Seneca 			 			 			http://ilearn.senecac.on.ca. 			This 			website contains a variety of information about creativity. It 			describes the essence of creative and how it can be implemented on 			the job, including its use in career planning.  The website also 			identifies three ways to stimulate one’s creativity. 			Robert 			Alan Black, Ph.D 			 			 			http://www.cre8ng.com  			This 			website describes what happens to an organization when it has a 			creative workforce. The said website also shows why there is a need 			for changes. This website gives motivational suggestions to 			management on pushing their employees to become creative. It also 			gives motivational suggestions to the personnel on making themselves 			more effective in the workplace 			All 			Business: Fostering Creativity 			 			 			http://www.allbusiness.com/management/change-management/586664-1.html  			 Highlighted by the article of 			Craig 			Costello on five roadblocks that stifle creativity and 			innovation 			Management 			Insights 			 			http://pubs.acs.org/subscribe/journals/ci/31/i11/html/11manage.html  			 This website notes that “there is no innovation 			without creativity”. The site states that there are five creativity 			criteria: attitude, behavior, skills, structures, and environment. Fostering creativity in the camp environment 			 			http://www.findarticles.com/p/articles/mi_m1249/is_6_71/ai_53450368 			 			This 			website notes that a creative organization is described as having 			idea people, innovative leadership, and open communication.  			Important to an organization is that management is encouraging the 			staff to discuss ideas and show their passion for a project, and 			then be supportive, support the risk and tolerate errors.  This 			website also discusses finding ways to positively challenge the 			staff, and develop creative endeavors to craft new programs that are 			original, refined, or revised. The 24/7 			learning environment: A thoughtfully designed work environment can 			foster creativity and the exchange of ideas 			 			http://www.findarticles.com/p/articles/mi_m4467/is_12_55/ai_83045838  			 			The author 			notes that today’s workforce is different than those that have come 			before, and therefore different methods must be employed to keep 			them motivated and invigorated to be their most creative.       		Appendix 3             Employee Feedback Form Creativity and Innovation in the WGC Environment Bryce & Dancetty is conducting an assessment on the current level of creativity and innovativeness within the Wordplay Greeting Cards culture. To enable the researcher to make the appropriate conclusions and recommendations for this study, this study is hence initiated. Your participation is highly appreciated.  Information given will be treated in strictest confidence.   Part I – Personal Information Direction: Please fill out all the necessary information about yourself.    a.      Age (check one):   18 – 24 ( )    25 – 31 ( )            32 – 38 ( )      39 – 45 ( )   46 – 52 ( )   52 up ( )   b.   Sex (check one):   Male ( )                   Female ( )                         c.   Civil Status (check one):   Single ( )    Married ( )   Separated (  )      Divorced  ( )   d.  Educational Attainment (check one):   Elementary ( )          High School ( )   Some College ( )   Associates ( )       Bachelors ( )            Masters ( )        Doctorate ( )                  e. Years of employment with the company (check one):         1 year and less ( )  2-3 years ( )  4-5 years ( )  6-7 years ( ) 8 years and over ( )   Part I I– Workplace Directions:  Circle the number that best corresponds to your answer.                     1          -           Strongly Disagree                   2          -           Disagree                   3          -           Uncertain / Neutral                   4          -           Agree                   5          -           Strongly Agree   		  		I believe that 		the company has                         used creativity and 		innovativeness 		to create the 		best products and services. 		  		  		1     2     		3     4    5 		  		 		  		 		 I 		believe that the company has                            not used old 		products or concepts 		in creating 		new products that are sold. 		  		  		1     2     		3     4    5 		  		  		I believe that 		the company currently sells products that are unique and different.    		 		  		  		1     2     		3     4    5 		  		  		I generally 		adapt to change easily. 		  		  		1     2     		3     4    5 		  		  		My manager 		encourages open discussions and values a free-share of ideas. 		  		  		1     2     		3     4    5 		  		  		I understand 		the policies, processes, methods of operations, values, and goals of the 		company.  		  		  		1     2     		3     4    5 		  		  		I get involved 		and share knowledge and experience with my group. 		  		  		1     2     		3     4    5 		  		  		I work with my 		manager in working towards the strategic direction of the company. 		  		  		1     2     		3     4    5 		  		  		  		The company 		promotes an “Open Door” policy. 		  		  		  		1     2     		3     4    5 		  		  		  		The company 		encourages participation and involvement in expressing ideas and 		creative thinking. 		  		  		1     2     		3     4    5 		  		  		Employees are 		encouraged to take advantage of opportunities in the workplace. 		  		  		1     2     		3     4    5 		  		  		Management 		motivates employees 		to set goals 		for self-improvement. 		  		  		1     2     		3     4    5 		  		  		I listen, and 		accept advice, suggestions and constructive criticism from management 		and others. 		  		  		1     2     		3     4    5 		  		  		I have a good 		rapport with my manager. 		  		1     2     		3     4    5 		  		I would like 		to see changes implemented in the current management structure. 		  		  		1     2     		3     4    5 		  		  		I am 		physically comfortable in my working environment. 		  		  		1     2     		3     4    5 		  		  		I am a person 		who can make something marvelous out of very little. 		  		  		1     2     		3     4    5 		  		I use my 		imagination and intuition in my day to day thinking process. 		  		1     2     		3     4    5 		  		  		I share 		creative ideas with my fellow employees. 		  		  		1     2     		3     4    5 		  		  		I dispose of 		mental models (i.e., preconceived notions). 		  		  		  		1     2     		3     4    5 		  		  		I feel that 		risk-taking and personal creativity is promoted at Wordplay. 		  		  		1     2     		3     4    5 		  		  		Wordplay 		offers creative courses to promote creativity skills. 		  		  		1     2     		3     4    5 		  		  		Management 		offers a creativity measuring plan that includes the proper availability 		of resources. 		  		  		1     2     		3     4    5 		  		  		Management 		offers a creativity measuring plan that includes creativity rewards. 		  		  		1     2     		3     4    5 		  		  		Wordplay 		promotes creative decision-making. 		  		  		1     2     		3     4    5 		  		  		Wordplay work 		environment offers a creative corporate culture. 		  		  		1     2     		3     4    5 		    Dear WGC Employee, . Thank you for your time and effort concerning this noteworthy cause. We assure you that all information provided will be treated in the strictest of confidence.     Thank you once again for you valuable input! Credit:ivythesis.typepad.com

Proposal And Marketing Plan: Integrated Summary Report of Wordplay Greeting Cards

Proposal and Ma r keting Plan Integrated Summary Report for Wordplay Greeting Cards Executive Summary Wordplay Greeting ...