Mgt610 VU Current Assignment No. 1 Spring 2012 Solution

“Is it compulsion or persuasion to implement ethical

practices in business? Take a position and support

with relevant facts

Idea solution:

In organization, while working its necessary to follow the ethic’s rules and persuade

them in day to day work by employees. Compulsion in implementing ethical

practices will help business to grow. People feel responsible when they compelled to

follow the ethics and it will be good for the business as well in following :

1. Improve customers' confidence : Business ethics are needed to improve the

customers' confidence about the quality, quantity, price, etc. of the products.

The customers have more trust and confidence in the businessmen who

follow ethical rules. They feel that such businessmen will not cheat them.

2. Survival of business : Business ethics are mandatory for the survival of

business. The businessmen who do not follow it will have short-term success,

but they will fail in the long run. This is because they can cheat a consumer

only once. After that, the consumer will not buy goods from that

businessman. He will also tell others not to buy from that businessman. So

this will defame his image and provoke a negative publicity. This will result

in failure of the business. Therefore, if the businessmen do not follow ethical

rules, he will fail in the market. So, it is always better to follow appropriate

code of conduct to survive in the market.

3. Safeguarding consumers' rights : The consumer has many rights such as

right to health and safety, right to be informed, right to choose, right to be

heard, right to redress, etc. But many businessmen do not respect and

protect these rights. Business ethics are must to safeguard these rights of the

consumers.

4. Protecting employees and shareholders : Business ethics are required to

protect the interest of employees, shareholders, competitors, dealers,

suppliers, etc. It protects them from exploitation through unfair trade

practices.

5. Develops good relations : Business ethics are important to develop good and

friendly relations between business and society. This will result in a regular

supply of good quality goods and services at low prices to the society. It will

also result in profits for the businesses thereby resulting in growth of

economy.

6. Creates good image : Business ethics create a good image for the business

and businessmen. If the businessmen follow all ethical rules, then they will be

fully accepted and not criticised by the society. The society will always

support those businessmen who follow this necessary code of conduct.

7. Smooth functioning : If the business follows all the business ethics, then the

employees, shareholders, consumers, dealers and suppliers will all be happy.

So they will give full cooperation to the business. This will result in smooth

functioning of the business. So, the business will grow, expand and diversify

easily and quickly. It will have more sales and more profits.

8. Consumer movement : Business ethics are gaining importance because of the

growth of the consumer movement. Today, the consumers are aware of their

rights. Now they are more organised and hence cannot be cheated easily.

They take actions against those businessmen who indulge in bad business

practices. They boycott poor quality, harmful, high-priced and counterfeit

(duplicate) goods. Therefore, the only way to survive in business is to be

honest and fair.

9. Consumer satisfaction : Today, the consumer is the king of the market. Any

business simply cannot survive without the consumers. Therefore, the main

aim or objective of business is consumer satisfaction. If the consumer is not

satisfied, then there will be no sales and thus no profits too. Consumer will be

satisfied only if the business follows all the business ethics, and hence are

highly needed.

10. Importance of labour : Labour, i.e. employees or workers play a very crucial

role in the success of a business. Therefore, business must use business ethics

while dealing with the employees. The business must give them proper wages

and salaries and provide them with better working conditions. There must be

good relations between employer and employees. The employees must also be

given proper welfare facilities.

11. Healthy competition : The business must use business ethics while dealing

with the competitors. They must have healthy competition with the

competitors. They must not do cut-throat competition. Similarly, they must

give equal opportunities to small-scale business. They must avoid monopoly.

This is because a monopoly is harmful to the consumers.

Some more are:

• Enhanced reputations and good will

• Reduced risks and costs

• Protection from their own employees and agents

• Stronger competitive positions

• Expanded access to capital, credit, and foreign investment

• Increased profits

• Sustained long-term growth

• International respect for enterprises and emerging markets

Mgt111 GDB No. 1 solution Spring 2012

The values of freedom, respect for human rights and the principle of holding periodic and genuine elections by universal suffrage are essential elements of democracy. In turn, democracy provides the natural environment for the protection and effective realization of human rights. Background (Preamble): Issues: 1. Violation of Human Rights in Pakistan. 2. No Fair election. 3. Dictatorship. 4. Now State of emergency to save political power. 5.Ban of Media. Today the top politicians of Pakistan are busy in saving democracy. What one wonders is which democracy are they engrossed in saving. Democracy is defined as a form of government in which all citizens of the state have an equal say in the decisions that affect their daily lives. Abraham Lincoln defined democracy as ‘by the people, of the people, for the people’. Here in Pakistan whenever elections are held, the party that loses immediately starts saying that the elections were rigged. Those voted into power are generally clueless about governance and statesmanship. If the political leaders fear that the army will take over the country how do they propose to save democracy and which democracy will they have saved. Whenever there has been a military coup we have never seen the citizens taking to the streets in protest. In fact they have heaved a sigh of relief. Living in palatial residences, being nurtured into politics by military despots does not breed leaders. There are hardly any political leaders in this country who don’t have skeletons in their cupboards. And they are so scared of any establishment baring these skeletons that they stick to their well versed mantras. A democratic country generally has two major political parties in the parliament, one in power, and the other in the opposition. It’s the work of the opposition to ensure that the party in power delivers good governance and works for the welfare of the citizens. In which democracy has the term ‘friendly opposition’ been used to describe the working of the opposition? Pakistan has sunk to the bottom among the nations of the world while the politicians have been busy in ‘saving democracy’. Nobody wants to come here, let alone invest over here. Inflation has crossed all limits and the citizens for whom democracy is being saved are living from hand to mouth. There is no hope in sight, light at the end of the tunnel that the nation can see or hope to see that will alter their lives. Lives can be changed; the nation can be pulled out from its misery if we can find honest leaders. Leaders who will work relentlessly for the people; deal with a firm hand to end corruption; not get busy in amassing their own wealth. If a nation prospers and it has honest hard working leaders who put the needs of their citizens above everything else; democracy will not have to be saved. It will flourish and bloom on its own.

Another Solution

FUNDAMENTAL RIGHTS AND PRINCIPLES OF POLICIES
Constitution 1973

ANSWER:

Pakistani government and civil society have take steps towards the implementation of universal human rights over recent years. The quality and characteristics of democracy is slowly improving now. Pakistan has entered in many of key human rights treaties with other such institutions and recently accepted the UN Covenant on Civil and Political Rights and the UN Conventional against Torture.
Judiciary is more independent than before. Media become free to dispose and criticize the government matters and actions and become progressed so fast.
Human rights are an indivisible part of our foreign policy.
Pakistani Parliament become so powerful and had a first female speaker.
There is particularly high rate of violence against women but now government is taking steps for providing the fundamental rights to the women and children.
The 1973 Constitution contains
Fundamental Rights and Principles of Policies which give basic rights to citizens. Some of the articles pertaining to human dignity and respect given in constitution are as follows:-

• Security of a person,
• Safeguards as to arrest and detention
• Slavery, forced labor prohibited
• Inviolability of dignity of man: privacy of home shall be inviolable and safe.
• Freedom of movement: Every citizen have right to move freely and reside and settle at any place in Pakistan.
• Freedom of assembly: Every citizen shall have right to assemble peacefully.
• Every citizen shall have freedom of trade, business or any other profession but these must be lawful.
• Every citizen have right to freedom of speech and expression, but it must be within lawful limit.
• Every citizen has a right to freedom to announce his religion and to manage religious institution.
• No person shall be taxed for the income that he spent for his religious propagation and maintenance.
• Safeguard as to Educational Institution in Respect of Religion. The principle of secularism, as opposed to religious extremism, violence and terrorism. All citizens are equal before law and all are protected equally by law.
• Democratic pluralism and equal rights for all without discrimination on the basis of race, religion, ethnicity, gender and political belief, sex, place of birth.

Mgt301 VU Current Assignment Solution Spring 2012

Answer # 1:-

Jamal is Using Production Concept

Babar is using Product Concept

Tauqeer is using Selling Concept

Ali is using Social Marketing Concept

Answer # 2 :-

There are a number of factors which can contribute to an impending crises or cause the failure of a business. We will now examine two causes that can impact on a business’ performance – indequate financial control and competition.

Inadequate Financial Control Inadequate financial control is a common cause of business decline and impacts on management’s ability to identify areas in a business that are losing money and “burning” cash.

It is common to see failed businesses that have not had proper financial controls. To successfully control a business’ financial affairs, it is important to have regular and accurate information. Additionally, effective systems are fundamental to providing key information and reporting on a frequent basis.

Inefficient systems can be divided into the following four categories:

1. Complex systems and irrelevant information

Management is provided with comprehensive monthly reports that go into too great a detail to report the results of the business. Often these are too cumbersome and fail to provide the specific information relevant to managers for decision-making.

Examining the timeliness, reporting methods and data produced from your own internal accounting packages, or those externally utilised, is an important step in addressing the information which is actually available and beneficial to management.

2. Ineffective use of information
Preparation and review of regular monthly management accounts or reports is an effective way of ensuring that management is basing decisions on timely and consistent information. Additionally, tailoring your accounting package to produce reports specific to your individual requirements will assist in the production and interpretation of meaningful data.

3. Organisational structure hinders decision-making
Information must be disseminated and provided to the relevant manager in order to effectively interpret and implement strategies. For example, inefficiencies may arise when a company has a centralised operation and reporting structure, yet the information for decision-making occurs at the “coal face”.

4. Inaccurate method of overhead cost allocation
A reflection of product or divisional performance and costs may be distorted by a company’s method of overhead cost allocation. Accurate costing must be implemented to ensure that products and divisions are appropriately managed, and decisions are based on correct information.

Competition
Competition is another cause regularly cited for corporate failure, and is classified as either price competition or product competition. It is common to see a business involved in both price and product competition simultaneously.

1. Product competition
Products have a distinct life cycle, the length of which varies significantly on the product and industry. A failure to consider a product’s life cycle and respond to changing markets may lead to business decline.

Inefficiencies occur when management lack the expertise to interpret the information provided, which is often an overview of the results achieved in previous months. This results in decisions being made without sufficient input and forward planning.

To ensure a business does not succumb to the obsolescence of its product, it is critical the stages of the life cycle are identified and responsive strategies developed and implemented to move with the times.

Such strategies may include:
o development of new products/replacements;
o improvement in the technical know-how to develop better products;
o diversification into new product areas; and
o establishing joint ventures.

2. Price competition

Price competition can lead to corporate failure. Though other factors played a part, the business demise of these companies was largely affected by competitive pricing strategies in their respective markets.

Some markets will be more price sensitive than others due to the nature of their industry, with businesses operating in these highly sensitive markets being less profitable. Industry participants with higher cost structures find it increasingly difficult to compete and suffer a lack of profitability.

Ultimately, the ability of a business to prosper whilst in a price competitive
market depends on their internal controls and strategies. Success over a competitor is usually attributed to several factors where one business outperforms the others.

These factors can include:
o a product focused for its market;
o product differentiation; and
o Lower costs.

There are many factors which can impact on a business’ success or failure.

Regular assessment of the status of your business is critical and where symptoms and causes are identified, remedial action is to be implemented on a timely basis 1- Early expansion- Production of goods and services increase rapidly. Interest rates and inflation are low as consumer confidence rises. People tend to borrow and spend more. Blue Collar Investors are more bullish during this phase.

3- Peak- Economic growth rate peaks and begins to drop. We usually see a decline in consumer confidence oftentimes due to increased interest and mortgage rates. We should be more conservative in our investment strategy (sell in-the-money strikes for example).

4- Recession…the “R” word- Two consecutive quarters of negative GDP is the most adhered to definition. We are always in a recession long before we know it or until the previous quarters GDP figure becomes public. Consumer demand declines as does corportate production and employment. Needless to say, stock prices decrease and we are bearish investors during this phase.

Recessions normally last between 6to16 months with an average of about 10 months.

Should a recession last 18 months or more, the economy is said to be in a depression.

2- Late expansion- Demand for goods and supplies surpass supply causing prices to increase.

Heavy borrowing leads to increased interest rates. Stocks prices continue to rise but may be nearing a top.

5- Recovery- The economy hits bottom and begins to grow. Interest and mortgage rates have dropped causing increased consumer confidence and spending. The stock markets are geared to take off and we must be prepared to take advantage. We’re getting that bullish (out-of-the-money strikes) feeling again.

Strategies to overcome recession for established companies

It is true that recession is a curse to any business, but this recession can also be a big opportunity to attract new clients and boost the sales if one knows know and have mastered the marketing and sales methods that work best in recessionary times.

Below are some strategies and marketing techniques which can be employed during recession to increase sales and profits.

Reactivate dormant accounts
Reactivate old leads

It is said that most of the sales people give up too early or in other words with very little more efforts you could have added that client to your business. According to the study, 80 percent of sales to businesses are made on the 5th sales call, but only 10 percent of salespeople call beyond three times! So you have probably not followed up on leads diligently enough, and the new business you need may already be right in your files. So the best way to get them back is to call them back and enquire for projects. This technique can be profitably used on prospects who have inquired within the last year or two. The best prospects, however, would probably be those who contacted you within the past 6 months.

Help existing clients or customers create new assignments or sales for you

When the economy is slow and your clients are not calling you for projects it is suggested that you call them and help them come up with assignments for you. So obviously the strategy here is “here is my idea that can help you Mr. Client and I would be happy to help you”. This will generate additional revenue and helps in building long term relationship with the client.

Give superior level of services to your customers and clients

In a recession, or during other times when business is slow, you want to do everything you can to hold onto your existing clients or customers-your "bread--and--butter" accounts. The best way to hold onto your clients or customers is to please them. And the best way to please clients or customers is to give them not their money's worth, but more than their money's worth. Now is the time to go the extra mile, give that little bit of extra service that can mean the difference between dazzling the client or customer vs. merely satisfying the client or customer. The best Reactivating dormant accounts is nothing but re contacting the customers whom you served once and not working with him right now. Just go through your past client list and contact the old customer and make him know that you are interested in doing business with him again.

Quote reasonable, affordable fees and prices in bid situations

Use low cost “add-ons” to generate additional revenue

Try to add extra revenue generating business to the existing project or assignment that is being carried on to the customer. Often the current project may require additional service upon which the company can leverage to generate additional revenue. So it is always suggested to look for ways to add extra or ancillary assignments to the major assignment. It is good for you as it generates extra revenue and good for the client as it gets complete service.

Although it sounds good to be a prima donna when you think from your perspective, but think from the perspective of customer. The customer wants service as quickly as possible. Take an example of a very famous doctor. You want his services because he is an expert. But you hate to wait and you are constantly looking for an alternatives solution. And when the situation reverses and things are slow you need business, and the client or customer knows you need work from them, but they don't need you--they'll take revenge. And you'll be out. So always act like a pro like a helpful friend and consultant to your client. Make sure that you have business when you need it tomorrow by acting professionally and properly today.

Downgrade slightly your acceptable client or customer profile

Avoid being a prima donna

During recession businesses are unusually price sensitive. It is suggested to bid competitively, but reasonably. If you are high-priced to begin with, and you insist on getting top dollar, be prepared to lose out in some bidding situation. But don’t reduce your price drastically as you won’t be able to bring it up quickly. As a thumb rule it is suggested to adjust the price by 15- 20% lower than usual. Always bid toward the middle or lower end of your published fee range, rather than at the maximum. Do not tell clients or customers that the fee is a special reduced fee.

Simply present it as your bid on the project. If customers and prospects sense you are cutting fees because you are losing assignments, they will take advantage and try to force your prices even lower. So keep your pricing tactics secret, and simply present the price as you normally would.

protection against a downturn in new business is an active list of happy, satisfied clients or customers--people or firms who give you a steady stream of continuing assignments that pay the rent and feed the family. So cultivate your current clients or customers. Nurture them. Serve them well. Do everything in your power to make them happy and keep them satisfied with your product or service--so they keep coming back for more. You must provide not only a high quality product, but also exceptional customer service. When money's tight, clients expect more for their dollar. If you want to keep their business, you must keep them happy. Refine your customer service strategy to insure that every step from taking the order to delivering the product is client-focused and effective. You may want to conduct a customer satisfaction survey or two in order to make sure your customers' needs are being met. Also consider making your service more valuable to clients with faster delivery times, wider selections, or more flexible payment terms

Generally the company has set of guidelines and regarding your most valuable clients. During a depressed economy or personal business downturn, you may want to be more flexible in this area than you usually are. For instance, if you normally do business with Fortune 500 companies only, you may want to consider taking on assignments from smaller local firms ...provided the pay is decent and their credit rating is good. Or, if you normally work only on major annual reports, you might consider knocking out some small quarterly reports to generate needed revenue. This doesn't mean you throw your standards out the window and work for anyone who calls you. Far from it. Instead, you are simply readjusting your acceptable client or customer criteria during this temporary lull to accommodate a wider range of prospects and projects.

Postpone any planned fee increases
Plan an aggressive new marketing campaign
Repackage your services to accommodate smaller clients or customers and reduced budgets These alternatives may not provide as complete a solution as the deluxe package. But they give the smaller client or customer the help he needs at the price he can afford. When the big companies are not giving you the big orders at the big prices, selling these alternatives to the less affluent segment of the market can put lots of extra dollars in your pocket Freelancers, consultants, and other service providers can repackage their expertise and services in a variety of formats including hourly consultations. Manufacturers and other product sellers One of the biggest mistakes business owners make during periods of economic slowdown is to cut back on marketing and advertising, doing this could be most detrimental to your business.

Instead, your marketing needs to be more aggressive and more comprehensive than ever. Start by contacting past clients and simply touching base. Chances are a good number of them will have projects or assignments for which your services may be required. When things are slow, increase the percentage of your time spent on marketing and prospecting for new business. For instance, if you usually devote 10 percent of your time and energy to marketing and sales when things are fairly busy, increase this to 25 percent when things are slow. During a lull, make an extra effort to attract clients, follow up on leads, and close sales. In fact, to prevent a lull in business from ever happening in the first place, market consistently and aggressively all year long, every week not just when you need the business. Planning an ongoing marketing campaign ensures a steady stream of leads.

In the recessionary conditions always try to defer your plans to increase the fee for the services even if you feel you deserve it. Don't announce to your customers and prospects that you are "holding the line" on prices due to the recession and your desire to help them through it.

Remember, even though you are feeling the effects of a soft economy, they may not be going through similar difficulties. Thus, your announcement would clue them into the fact that you are in trouble ...and some may take advantage of your perceived need of business by haggling on price with you. So leave your fee schedule as is and continue with business as usual.

can offer compact models, economy sizes, no--frills versions, special discounts, payment plans, and smaller minimum orders.

Mgt411 Assignment No. 1 Fall 2011 solution

Semester “Fall 2010”

“Money & Banking (MGT411)”

Assignment No. 01 Marks: 20

Mr. Naeem is working as a finance manager at Superior Textile Mills Limited, after completing his MBA (Finance) from Virtual University of Pakistan.

Recently, he got married and shifted his family in a rented house near the office. Paying monthly rent is a painful experience and in this way he cannot save much for his future needs. Therefore, he is planning to purchase his own house for avoiding monthly rental expense. For this purpose he is expecting to sell share in his native house for Rs. 1,500,000/- which is not a sufficient amount to buy house in a big city. After considering various areas in Faisalabad city, he chose Model Town for his desired future residency. Based on the house prices data in that area, he learned that an average two bed room house currently costs Rs.2,400,000/-. So he has to set aside some funds for the next eight years so that he may be able to purchase his own house after having sufficient funds.

As Mr. Naeem is planning to purchase the house after eight years, so it is quite clear that the prices of the houses will not remain the same overtime. In order to estimate the rate at which the house price will increase he considered the historical price appreciation data in that area and resulted that house prices appreciated at the rate of 4% per annum.

Mr. Naeem is planning to invest the funds that will be devoted for purchasing the house, in a portfolio of investment. He feels that this investment portfolio containing stocks, bonds and govt. securities will give him the rate of return of 9% p.a.

SOLUTION


Please confirm this solution before submitting


Q#1: Considering the fact that the vu39.com house prices will grow at the rate of 4% per annum, what will be the future house price of the house Mr. Naeem intends to buy after 8 years


FV = PV (1+i )n
FV = 1,500,000 (1+0.04)8
FV = 1,500,000 (1.04)8
FV = 1,500,000 (1.3685)
FV = Rs. 2,052,853/-


Q#2: Based on the answer from Q#1(FV), how much amount Mr. Naeem should invest today (which earns 9% rate of return) so that he may be able to purchase his house after 8 years.


2,052,853 = PV (1+0.09)8
2,052,853 = PV (1.09)8
2,052,853 = PV (1.9925)
PV = 2,052,853 / 1.9925
PV = Rs. 1,030,290/-


Q#3: Assume the vusolutions house prices appreciate at the rate of 6% per annum instead of 4% then how much he should invest today in order to be able to purchase the house after 8 years.


FV = 1,500,000 (1.06)8
FV = 1,500,000 (1.5938)
FV = Rs. 2,390,772/-
2,390,772 = PV (1.09)8
2,390,772 = PV (1.9925)
PV = 2,390,772 / 1.9925
PV = Rs. 1,199,885/-


Q#4: If Mr. Naeem decides to deposit in less risky certificate of deposits earning vusolutions only 5% p.a. then how much funds he has to deposit in his bank to be able to purchase the house after 8 years.


2,052,853 = PV (1.05)8
2,052,853 = PV (1.4775)
PV = 2,052,853 / 1.4775
PV = Rs. 1,389,409/-


Q#5: If Mr. Naeem decides to invest in more risky growth stocks earning 12% rate of return then how much funds he has to invest to purchase his house after eight years.


2,052,853 = PV (1.12)8
2,052,853 = PV (2.4759)
PV = 2,052,853 / 2.4759
PV = Rs. 829,137/-

Mgt613 Assignment No. 1 Fall 2011 solution

Semester “Fall 2011”

“Production and operations management” (MGT613)

Assignment No. 1 Marks: 20

FIFCO is a football manufacturing company in Sialkot, it has started its operations from January 2000 and since then the company is unable to gain ample profits and grab the expected market share. The major mismanagement noticed is especially in the area of inventory management. Due to this finished stocks are piling up in the warehouses. The situation is very drastic and company is unable to handle its stock. It seems that the company is facing problems in their forecasting, as the company is unable to assess and meet the actual market response that might affect the demand and fulfillment of customer’s orders. After analyzing the situational factors it seems that the company is unable to forecast demand effectively. The actual and forecasted demand of the past five years is given as under:

Years

2005

2006

2007

2008

2009

Actual demand (Units)

4000

3700

4000

4150

4050

Demand Forecasted (Units)

4500

4000

3500

3500

4200

The situation is very alarming for management and you as an operation manager of the company are required to examine and analyze all scenarios and give your recommendations that:

What would be the core areas you have to cover in order to have a most accurate forecast for the company?

What are the steps you would like to follow in the design of a most effective forecasting process? Give your suggestions after analyzing the variances in given table.

Important Tips

This Assignment can be best attempted from the knowledge acquired after watching video lecture no. 01 to lecture no. 09 and reading handouts as well as recommended text book).

Schedule

Oct 21st, 2011

Oct 28th, 2011

Note:

Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.

Solution:

Q. 1 answer is in lecture No. 9, and Q. 2's answer is on page 45. Kindly take the data from the said locations.



Question N0.1: What would be the core areas you have to cover in order to have a most accurate forecast for the company?

Answer:-
Forecasting is a natural extension to the types of data analysis typically performed on the historical data stored in analytic workspaces. Using Analytic Workspace Manager, you can quickly generate forecasts of your measures.


Here I discuses Some core areas for accurate forecast related to inventory management because in the above scenario the major mismanagement noticed is especially in the area of inventory management.


Counting current stock:-
All business must know what they have on hand and evaluate sock levels with respect to current and fore-casted demands. Company managers must know what they have in stock to ensure that they can meet the demands of the customers and production and be sure that you are ordering enough stock in the future. Counting is also important because it is the only way you will know if there is a problem with theft occurring at some point in the supply chain of inventory.


Cyclical counting:-
Companies prefer to count inventory on a cyclical basis to avoid the need for shutting down operation while stock is counted. This means that a particular section of the warehouse or plant is counted at particular times, rather than counting all inventory at once. In this way, the company takes physical count of inventory, But never counts the entire inventory at once.


Controlling supply and demand:-
Whenever possible, obtain a commitment from a customer for a purchase. In this way, you ensure that the items your order will not take space in your inventory for long. When this is not possible, you may be able to share responsibility for the cost of carrying goods with the salesperson, to ensure that an order paced actually results in a sale.


Stock control:-
Approval procedures should be arranged around several factors. You should set minimum and maximum quantities which your buyers can order without prior approval. This ensures that you are maximizing any volume discount available through your vendor and preventing over-ordering of stock.


Keeping accurate records:-
Any time items arrive at or leave a warehouse, accurate paperwork should be kept, itemizing the goods. When inventory arrives, this is when you will find breakage or loss on the goods you ordered. Inventory leaving your warehouse must be counted to prevent loss between the warehouse and the point of sale. Records should be processed quickly, at least in the same day that the withdrawal of stock occurred.


Managing employees:-
Buyers are the employees who make sock purchases for your company. Reward systems should be set in place that encourage high levels of customer’s service and return on investment for the product lines the buyer manages. Incentives programs can help employees keep this in perspective. When they see a difference in their paychecks from poor inventory management, they are more likely to take precautions to prevent shrinkage.


Question N0.2
1. What are the steps you would like to follow in the design of a most effective forecasting process? Give your suggestions after analyzing the variances in given table.


Answer:-
Keys like to follow for most effective forecast.


Time series:-
Time series forecasting methods are based on the premise that you can predict future performance of a measure simply by analyzing its past results.


These methods identify a pattern in the historical data and use that pattern to extrapolate future values. Past results can, in fact, be a very reliable predictor for a short period into the future. You can generate this type of forecast very quickly and easily, and you do not need either forecasting expertise or an in-depth knowledge of your data.


The modeling techniques used by the time-series methods are relatively simple and run very fast. Time-series forecasting is extremely useful when hundreds or thousands of items must be forecast.


Use Scenario-Based Forecasts:-
One forecast is not enough. Consider what will happen if conditions change. For example, how might your forecast change if your competitors react strongly to your strategy? How might it change if they don’t react at all? If the government changes a policy that makes your product tax free. All of these factors will influence sales, so the smart executive considers multiple scenarios. While the executive may not expect the government to make something tax free, scenarios can be created that consider favorable government regulation, stable regulation, and negative regulation, just as one can consider light competitive reaction, moderate reaction, or strong reaction.


Use Multiple Methods:-
Since forecasts are estimates, the more estimates generated from various methods, the better. For example, combining expert opinions with a trend analysis could help you not only understand what is happening but also why. Every forecast results in decisions, such as the decision to hire more people, add manufacturing capacity, order supplies, and so forth. In addition, practice makes perfect, as they say. The more forecasts you have to make and resulting decisions you have to live with, the better you will get at forecasting.


Track Actual Results and Adjust:-
As time goes on, forecasts that have been made should be adjusted to reflect reality. You must have an annual forecast, the forecast changes regularly based on how well the company is doing. Further knows how strongly competition has reacted and can adjust the company’s estimates accordingly.


Use tools wisely:-
Many companies tend to rely solely on qualitative tools-the opinions of experienced manager and salespeople derive forecast ignoring such quantitative tools as regression and time-series analysis. The key is that both quantitative and qualitative tools are integral to effective forecasting problem. Without understanding where qualitative techniques, time series and regression do and do not work effectively, it is impossible it is impossible to analyze the cost and achieve the benefits of implanting new forecasting tools.


Measure:-
Obviously, before forecaster can be rewarded for excellence, a company must first develop system for measuring performance, tools for providing feedback, and standards and targets for what constitutes forecasting excellence. Without the ability to effectively measure and track performance, there is little opportunity to identify whether changes in the development and application of forecasts are contributing to business success.

Mgt501 Assignment No. 2 solution

“Human Resource Management (MGT501)”

Assignment No. 2 Marks: 15

“Career Management”

Career management is no doubt a process that continues throughout your professional life. It helps you in planning the career in a rational and tactical way to avoid any professional mistake that may waste your time, efforts and money. You might have planned you career keeping in mind your education, skills and personal interest. Applying the techniques of Career management, you are required to choose a career for yourself and design a comprehensive career path.

Please note this is an exclusive question therefore the chance of similar answers is rare. This assignment will help you in making your career plan so serious efforts are required as this is for your self learning.

Important Tips

1. This Assignment can be best attempted from the knowledge acquired after watching video lecture no. 23 to lecture no 25 and reading handouts as well as recommended text book).

Schedule

Opening Date and Time

May 27 , 2011 At 12:01 A.M. (Mid-Night)

Due Date and Time

June 02 , 2011 At 11:59 P.M. (Mid-Night)

Note: Only in the case of Assignment, 24 Hrs extra / grace period after the above mentioned due date is usually available to overcome uploading difficulties which may be faced by the students on last date. This extra time should only be used to meet the emergencies and above mentioned due dates should always be treated as final to avoid any inconvenience.


Solution:


Idea

1) Keep in mind your strengths.

2) Weaknesses

3) Opportunities.

4) Threats.

And also assess the kind of job what you want to do.
Also keep eyes on your pocket.
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steps involved in career planning
1) Assess Your Strengths:
Make a list of your strongest skills and abilities. Ask your friends and family members for input. Remember, there are many kinds of intelligence. Are you good with words? Are you skillful at building or fixing things? Is math or music a strength for you? Maybe you have an artistic gift, or you have a natural ability to help people.

2) Gather Career Data:
A very valuable resource is the Occupational Outlook Handbook (OOH), developed by the U.S.Department of Labor. The OOH describes over 250 jobs, along with their earnings, training and skill requirements, working conditions, schedules, advancement opportunities, and projected growth.

3) Tap Into Your Network:
We usually don't know much about the day-to-day realities of most occupations. Yet this is exactly the kind of information you'll need to find a good career fit. Ask relatives, neighbors, or anyone you know about the details of their jobs.

Consider scheduling an "informational interview" with a professional in your field of interest. Ask whether the job involves working mostly with other people or alone. What education or training is required? Is the work done independently or under close supervision? What kind of paperwork is involved? How much of the job is indoors versus outside? Is it repetitive, or does it involve varied duties? Is this a "desk job," or is more physical activity involved? Discuss wages, advancement opportunities, and the best and worst parts of the job.

4) Research Your Labor Market:
Sometimes students will earn a degree, only to discover their community is already saturated with qualified workers in their field. For example, if you're thinking of training as a medical assistant, call the school to find out where graduates are placed. Ask local hospitals, clinics and nursing facilities how many medical assistants they employ, their turnover rate, openings anticipated within the next year, and any expected growth or decline.

5) Take Career Tests:
Your school, colleges and private companies offer career guidance testing. Aptitude, interest and personality style tests help you discover which careers would be satisfying for you.

6) Job Shadow or Volunteer:
Get first-hand knowledge by seeing the job in action. Through "job shadowing," you can spend a day observing someone working in a job you're interested in. Or gain actual work experience through volunteering. Schools, churches, hospitals and many national service organizations like the United Way can always use volunteers. Volunteering looks good on your resume, gives you references, and is often a springboard to a paying job.

I will simply follow the aforementioned steps to become a good HR practitioner.


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My education, skills and personal interest is any industrial and non industrial account department. Because my personal interest in account field then I choose it and get admission in this department. For improved yourself I am used these techniques.

Company Material:
Some firms provide material to their workers in career planning and development.

Workshops:
Some firms are conduct workshops two of three days. The main theme is the career development of the company workers.

Planning with educated persons:
This a formal discussion way in which top management is decided what type of planning and development activates is useful.

Software packages:
Some software package is used career planning and development.

Career planning web site:
Visit some career planning web sites that provide information about career planning and counseling.

For career planning I am used this career path.

Lateral skill path:
When we join a firm then I am not an experienced person. For passage of time I will gain experienced in my field. In lateral skill path is a career path in which viewed as moving upward to higher levels of management in the organization. Because I am not like that an individual is work on a same job throughout life. So the lateral moves within the firm are take an individual to become revitalized and find new challenges.

Mgt211 Assignment No. 2 solution

Suppose you want to start a business of ready-made garments by opening a factory in Faisalabad. Your product will be T-Shirts. There are already three garments manufacturing companies (having the same product) in that area. These companies are doing their business with big foreign buyers like Nike, Puma, D& G, JC Penny, Brands& Fashions, Sports Essentials, and Marks & Spencer etc.

1) How you will differentiate your product from your competitors? (5 Marks)

Answer: First step that should be taken is to make the customer aware of the type or quality of T-shirts which fulfill customer requirements and then to settle up to reasonable prices to differentiate product from competitors (your shirts from other T-shirts in market) by gaining competitive advantage.

2) What pricing strategy you will adopt to grab the market share from your competitors? (5 Marks)

Answer: In the market place, to grab the market share from competitors we can set lower prices or adopt psychological strategy to have a psychological price impact of T-shirts on customers which will attract more customers so if the per unit price of T-shirt is Rs.85 then we can change figures up to level 84.95 or 85.99 rupees.

3) Which channel of distribution you will adopt to deliver your product to foreign customers? (5 Marks)

Answer: The channel adopted would be considered as product distribution or place channel with the ease to supply our T-shirts to the end customers while the direct or indirect channels used in process to deliver T-shirts accordance to requirements of our foreign customers at right time.

What will be your promotion method to attract the foreign customers toward your products? (5 Marks

Answer: The methodology adopted to attract the foreign customers towards our T-shirts is to use latest technology, enhance brand image a thirst to innovation, budget line while keeping in mind about the legal issues arising are allowed to promote our T-shirts or not and considering target audience to which business want to reach.

MGT201 GDB Solution

Answers

The expected Rate of Return = 39.7% ?

The standard deviation of the returns=23.5989 %

The coefficient of variation of the returns =0.5944

Comment about the riskiness of the new investment = New project with CV=0.5 is less riskier than the CV =0.5944, so new investment should be preferred





Solution:

a) Expected rate of return

Expected ROR = < r > = pi ri

= p1 (r1) + p2 (r2) + p3 (r3) + p4(r4) + p5(r5)

= 0.010 ( -10%) + 0.450 ( 20%) + 0.320 ( 45%) + 0.140(60%) + 0.080 (100%)

= - 0.1% + 9% + 14.4% + 8.4% + 8 %

= 39.7%

b) The standard deviation of the returns

Risk = Std Dev = ( r i - < r i > )2 p i

= Std Dev = δ = √ Σ (r i - < r i >)2 p i.

= √{[(-10-39.7)2 (0.010)] + [(20-39.7)2 (0.0.450)] + [(45-39.7)2 (0.320)] + [(60-39.7)2(0.140) + [(100-39.7)2(.080) }

=√ (24.7009 + 174.6405 + 8.9888 + 57.6926 + 290.8872)

= √ (556.91)

=√557

Standard Deviation, δ = 23.5989

c) Coefficient of variation , CV = Standard Deviation = 23.5989 / 39.7

Expected Return

= 0.5944

d) Coefficient of Variation tells us about the Risk per unit Return. The project which offers lowest per unit risk is the best investment. 0.5944 > 0.5. The new investment offer the CV of 0.50 which is lower than calculated CV in part (iii) is 0.5944. Choose the Project with the Lowest CV i-e CV=0.5. As it carries the lowest Risk per unit Return than 0.5944

Mgt602 Assignment 2 Solution

Assignment 02: Entrepreneurship MGT 602 Marks 20

The Conceptual Note:

Any entrepreneurial venture which gets a positive response from the market and has potential for growth generally chooses between "organic growth" and "external growth" as a strategy to grow. Both organic and external growth strategies have their merits and demerits and most of the organizations choose the one according to their goals and suitability. "Organic growth" is a strategy in which ventures expand internally by opening own branches and setting up own production facilities in those markets where they do find potential whereas in "external growth strategy" entrepreneurs grant the rights of their business to external partners in the shape of "franchising" or "licensing". Taking over some established brands and businesses is also called external growth strategy. It has also been observed that different businesses use a blend of organic and external growth strategies for growing in different markets.

The Case:

You started a pizza shop with the name of "Pizza Pakistan" in Peshawar in 2009 which was liked by the people and now sells like hot cakes. Your pizza shop is not only well known in Peshawar but also a large number of people living in most of the major cities of Pakistan are aware of it. You have conducted a survey in all major cities of Pakistan and found that people living there know your product and willing to have it. You have also been contacted by some sound parties from Faisalabad, Quetta and Hyderabad to become your franchisee.

The Requirement:

Keeping in view the above case and the note, you are required to make a decision that which growth strategy you will use to expand your business in new markets. Also justify your choice by giving solid arguments in favor of the strategy you will choose and against the strategy which you will not consider.

The Special Note: How can you avoid zero marks status?

Dear Students! You are encouraged to consult both online and offline sources with objective to enhance your understanding of the topic of the assignment. But consulting the sources does not mean that you start copy-paste the material from sources. If you do so you will certainly lose marks or your assignment will be graded zero on account of copying from a source. The workable strategy is to consult the source, enhance your knowledge and write in your own words. If the idea you are writing in your own words is not original then do give the references of the sources you have consulted in the end of your solution. Also do not seek help from any website or blog which offers assignment solution because such sources offer you substandard material which may spoil your future.

Solution:

The Case:

You started a pizza shop with the name of Pizza Pakistan in Peshawar in 2009 which was liked by the people and now sells like hot cakes. Your pizza shop is not only well known in Peshawar but also a large number of people living in most of the major cities of Pakistan are aware of it. You have conducted a survey in all major cities of Pakistan and found that people living there know your product and willing to have it. You have also been contacted by some sound parties from Faisalabad, Quetta and Hyderabad to become your franchisee.

Solution with Arguments:-

Pizza Pakistan has many plans to grow their business and increase sales and profits. However, there are certain methods Pizza Pakistan must use for implementing a growth strategy. The method Pizza Pakistan uses to expand its business is largely contingent upon its financial situation, the competition and even government regulation. Some common growth strategies in business include market penetration, market expansion, product expansion, diversification and acquisition.

Market Penetration

One growth strategy in business is market penetration. Pizza Pakistan uses a market penetration strategy when it decides to market existing products within the same market it has been using. The only way to grow using existing products and markets is to increase market share, according to the article "Growth Strategies" in Hand Book. Market share is the percent of unit and rupee sales Pizza Pakistan holds within a certain market vs. all other competitors. One way to increase market share is by lowering prices. For example, in markets where there is little differentiation among products, a lower price may help Pizza Pakistan increase its share of the market.

Market Expansion

A market expansion growth strategy, often called market development, entails selling current products in a new market. There several reasons why Pizza Pakistan may consider a market expansion strategy. First, the competition may be such that there is no room for growth within the current market. If a business does not find new markets for its products, it cannot increase sales or profits. Pizza Pakistan may also use a market expansion strategy if it finds new uses for its product. For example, a small soap distributor that sells to retail stores may discover that factory workers also use its product.

Product Expansion

Pizza Pakistan may also expand its product line or add new features to increase its sales and profits. When small companies employ a product expansion strategy, also known as product development, they continue selling within the existing market. A product expansion growth strategy often works well when technology starts to change. Pizza Pakistan may also be forced to

add new products as older ones become outmoded.

Diversification

Growth strategies in business also include diversification, where Pizza Pakistan will sell same products to new markets. This type of strategy can be very risky, according to gaebler.com. Pizza Pakistan will need to plan carefully when using a diversification growth strategy. Marketing research is essential because Pizza Pakistan will need to determine if consumers in the new market will potentially like the new products.

Acquisition

Growth strategies in business can also includes an acquisition. In acquisition, Pizza Pakistan purchases or licenses another Pizza Pakistan branch to expand its operations. Pizza Pakistan may use this type of strategy to expand its product line and enter new markets. An acquisition growth strategy can be risky, but not as risky as a diversification strategy. One reason is that the products and market are already established. Pizza Pakistan must know exactly what it wants to achieve when using an acquisition strategy, mainly because of the significant investment required to implement it.