Monday, May 25, 2020
Macroeconomic Outlook of U.S. Economy Essay - 1835 Words
Investment Analysis Macroeconomic outlook of U.S. economy For every four to six years U.S economy faces an economic slowdown. Thus the current market is now in forth year. The root of U.S. crisis and its economy can be traced backed to 2007, when U.S housing bubble burst which yields a financial meltdown in 2008. In average, the American trying to make ends meet in 2014, a market and a recession will probably look and feel the same. In early 2008, when the financial crisis began, then the U.S. national debt stood at $9.2 trillion. Figures figure out by the White House, the national debt will reach $20.0 trillion by the end of decade about 140% of our current GDP. Successful debt reduction requires fiscal constraint and policies thatâ⬠¦show more contentâ⬠¦The positive gains will come strongly as business and customerââ¬â¢s confidence reinforce, when the overseas sales increases and the Europe begins to emerge from the prolong snooze. And the manufacturing purchasing index activity reports will show the strong expanding output. Furthermore, there is a decent chance of an upside surprise to 2014 growth. Rational investorââ¬â¢s investments, spending and confidence are still below than the expected level what would be considered normal levels by the standards of past economic expansions. As the job growth becomes strong and consumers feel more protected then a righteous way of spending is getting better, more consumer income begetting more spending could be initiated. If this occurs rapidly then the quarterly growth is likely to exceed an annually at the rate of 3%. But if this does not happens in 2014 than it is nevertheless very likely to happen before the end of 2015. (Payne, 2014) Unemployment In March 2014, the encouraging thing was that the unemployment rate held at 6.7%. Even though a lot of individuals entered the labor force who power up the participation rate to 63.2% which explicitly means that the number of unemployed people did not raise so much. But the rate is expected to gradually drop to 6.3% by the end of the year. In March, although the initial reports on weather effects in January and February nevertheless played a role in dampening job growth in thoseShow MoreRelatedEssay on Current Macroeconomic Situation in the United States867 Words à |à 4 Pages The United States is the leading economy across the globe and experienced several tribulations in the recent past following the 2008 global recession. Despite these recent challenges, there are expectations among policymakers and financial experts that the country will experience solid economic growth. Actually, financial analysts have stated that the U.S. economy will be characterized by increased consume r spending, increased investments by businesses, reduced rate of unemployment, and reductionRead MoreWhat Is the Current Macroeconomic Situation in the Us?816 Words à |à 4 PagesWhat is the Current Macroeconomic Situation in the US? In June 2012, Federal Reserve Bank of St. Louis President James Bullard states, ââ¬Å"the current stance of monetary policy is ultra-easy, and remains appropriately calibrated given the macroeconomic situation in the U.Sâ⬠(St. Louis Fedââ¬â¢s Bullard, 2012, par. 1). The statement, however, is ambiguous and subsequent information provided by Bullard contained no real clarifications. For example, Bullard explained that the ââ¬Å"policy rate remains near zeroâ⬠Read MoreMacroeconomics Is Better Or Worse Than The Market1518 Words à |à 7 Pages Macroeconomic Status Kari Haslip Devry University 12/8/2014 The definition of macroeconomics is, ââ¬Å"The study of the behavior of the whole aggregate economies or economic systems instead of the behavior of individuals, individual firms, or markets.â⬠Macroeconomics focuses on areas such as, unemployment, the gross national product, inflation or deflation, and covers the role of monetary and fiscal policies and the determination of consumption and investment levels. It seems that peopleRead MorePresidential Elections Are Not Isolated From National Or World Macro Events931 Words à |à 4 Pagesuntold influence on economies and stock markets. International macro events are countless; they can even have an impact at a state level in the U.S. Below are a few examples of international macro events as derived from the California Department of Finance (CDOF) website ââ¬Å"Chronology of Significant Eventsâ⬠: â⬠¢ Global conflicts â⬠¢ Foreign energy resources â⬠¢ Foreign trade policies â⬠¢ Foreign political events â⬠¢ Emerging foreign national economies â⬠¢ Troubled foreign national economies The UnitedRead MoreThe Effect Of Macroeconomic Indicators On Economic Growth On A Petrol Dollar Economy Essay1391 Words à |à 6 PagesTHE EFFECT OF MACROECONOMIC INDICATORS ON ECONOMIC GROWTH IN A PETROL-DOLLAR ECONOMY: THE NIGERIAN EXPERIENCE 1. Introduction The Central Bank of Nigeria Act of 1958(CBN) vested the monetary policy powers of economic stability on the apex regulatory bank (CBN).Since our independence in 1960,CBN has operated a fixed exchange regime which was at various times was at par with the British pounds and later the United States Dollar. This exchange rate regime was operated in additionRead MoreCurrent Macroeconomic Situation in the US648 Words à |à 3 PagesRunning Head: Current Macroeconomic Situation in U.S Current Macroeconomic Situation in U.S The economy US is going through huge crisis these days. The evidences are its striking economic situation that is growing adverse day by day. By the end of March 2012, the unemployment rate of US had preceded by 8.2%. Although the GDP growth, income and consumption are not adverse until, the date but they are still below the trend rates that are not showing a positive response towards the future economicRead MoreEvaluation Of Macroeconomic Performance Of Australia1186 Words à |à 5 Pages Evaluation of Macroeconomic performance of Australia and US from 1990 to 2013 Submitted by Professor Name Date Course Title ââ¬Æ' Table of content Executive summary 1. Macroeconomic performance of Australia 2. Key macroeconomic indicators: 2.1 Real Gross Domestic Production 2.2 Interest rates 2.3 Unemployment rate 2.4 Consumer Price Index (CPI): 2.5 Exchange rate 2.6 Exports and imports 3. Macroeconomic performance of United States of America: 3.1 Real Gross Domestic Production: 3.2 Annual inflationRead MoreEssay on Pfizer Macroeconomic Forecast1715 Words à |à 7 PagesMacroeconomic Forecast Pfizer, Inc. March 14, 2005 Abstract This paper is a Macroeconomic Forecast Outline of Pfizer, Inc. This outline will identify main economic indicators for Pfizer as a business entity and as a representative of pharmaceutical industry. This paper will identify sources of various data collected based on economical activity and relationships between different economical indicators. Main Economic Indicators The purpose of economic indicators is to provide for researchersRead MoreChallenges Faced By The Management Of A Business1877 Words à |à 8 Pagesunderstand general economic principles and macroeconomic indicators. These indicators help managers to understand how the economy is performing and what the trends are here in the U.S. and across the world. An article titled ââ¬Å"Kiplingerââ¬â¢s Economic Outlookâ⬠presents a current look at general economic principles and economic indicators. The article offers a look at last year (2014) and uses the indicators to anticipate the economic performance for the U.S. in 2015 taking into account the politicalRead MoreU.s. Dollar Euro Exchange Rate1138 Words à |à 5 Pages An analysis involving the U.S. dollar-euro (USD-EUR) exchange rate involves an in-depth study on the exchange rate between the two currencies. The U.S. dollar-euro exchange rate in the past was the most analyzed subject studied in global economics. However, a ny results attempted in studying the dollar-euro exchange rate has not been that successful in the past. This is due to researchers not being able to make a connection between the fundamentals of macroeconomics and exchange rates (Molodtsova
Thursday, May 14, 2020
The New Perspective On Paul - 1984 Words
Introduction The New Perspective on Paul is mainly about redefining the understanding of Justification by faith through re-reading of narratives on Second Temple Judaism. NPP proposes that Judaism was a religion of grace, however, NPP strictly challenges the traditional Reformation view for doctrine of Justification. NPP insists the understanding of the phrase ââ¬Å" works of the Lawâ⬠is only to refer the boundary marking practices of Judaism rather than used them as means for salvation. E. P. Sanders, James D. G. Dunn, and N. T. Wright stand as monumental figures in scholarship on Pauline theology and are main proponents. Their prolific writings on Pauline theology are to redefine the justification by faith through the mirror of NPP. Nevertheless, their proposals contain errors and stand in sharp contrast with the apostolic teaching of Justification by faith alone as only means for salvation. The New Perspective argues that the traditional Reformation practice of reading Paulââ¬â¢s p olemic against Judaism in Galatians and Romans has led to a misunderstanding of the apostleââ¬â¢s doctrine of justification. Further, they insist, the Justification is not about how the sinner finds a gracious God. Instead, it is about how to tell who is in the community of the saved and who isnââ¬â¢t. The Anglican Bishop N. T. Wright in his works on Pauline epistles states-ââ¬Å"Justificationâ⬠in the first century was not about how someone might establish a relationship with God. Rather, it was about Godââ¬â¢sShow MoreRelatedThe New Perspective On Paul1956 Words à |à 8 PagesThe New Perspective on Paul is a view which reexamines the first century context in which Paul wrote and thus certain messages he conveys in his Epistles. It challenges the traditional views on various doctrines drawn from Paulââ¬â¢s writings during the Reformation, suggesting the Reformers were incorrect in their interpretations. While the New Perspective on Paul is certainly thought pro voking and even brings up some good points regarding historical context, the Church should treat it with caution andRead MoreThe New Perspective On Paul1342 Words à |à 6 Pageslegalistic religion. However, this is not the case. This is what started a new way of thinking about justification and Paul. This leads us to the New Perspective on Paul. In this paper, we will discuss where the New Perspective on Paul came from, what it is exactly as well as my personal thoughts on this subject. It all started in 1977 when E.P. Sanders wrote a book about this topic. Others come along and add their ideas to this new idea. Soon it became known to the world as NPP. What is JustificationRead MorePaul s Theory Of Paul1547 Words à |à 7 Pages As long as Paul could remember he had his giant glasses on and was told he couldnââ¬â¢t see without them. But even though Paul can see fine without them. Paul, unfortunately, deals with this on a day to day basis. We discover who Paul is and how significant events changed him. Paul also experiences switching schools. We see how Paul sees the world and his perspective on certain events. In the beginning of ââ¬Å"Tangerine,â⬠Paul and his family move houses from Houston, Texas to Tangerine County, FloridaRead MoreThe Core Essence Of Servant Leadership From A Biblical Perspective1605 Words à |à 7 PagesBiblical perspective, which might be able to provide practical, theological, and hermeneutical insights in order to develop leadership competency and a healthy prosperous ministry, as oppose to the current secular ââ¬Ëleadershipââ¬â¢ myths and fascination in our church, culture and society. Admittedly, over the years I have always admired and strived to adopt a servant leader attitude in all my endeavors. Equally, the paper will reflect on ââ¬ËServant Leadershipââ¬â¢ through the lens of Jesus and Paul, from aRead MorePaul s View On The Law Essay1598 Words à |à 7 Pages Paul has used the law in many circumstances throughout his epistles. He also discusses the implications of the law and its relation to believers. Paulââ¬â¢s vie w on the law has been a conversation held by many New Testament scholars. Some suggest that Paulââ¬â¢s views on the law is inconsistent throughout the epistles but by a careful analysis will show that his views are complementary rather than inconsistent. A main issue that Paul argued was that we are justified by faith in Christ and notRead MoreWeek Three Center Of Paul s Theology Essay1247 Words à |à 5 PagesNT2200-Week Three-Center of Paul s Theology Paper The Apostle Paulââ¬â¢s theology remains to be a matter of discussion. Even today, there are various thoughts on the subject as well as various thoughts offered by scholars as to the center of Paulââ¬â¢s theology. Furthermore, to examine the characteristics of the center of Paulââ¬â¢s theology, one would have to determine their viewpoint or opinion of what to declare is the center of Paulââ¬â¢s theology. The authors of our textbook, Rediscover Paul: An Introduction toRead MoreAnalysis Of The By Raymond Carr1141 Words à |à 5 PagesKnowledge of Christ. He pulls from Philippians 3:1-11, where Paul challenges us to lose our religion; and choose a relationship. Paul uses two directives that lead to a right relationship with Christ. Raymond Carr first comments on how Paul emphasizes the theme of joy. Carr tells us that Paul repeats this a couple of times. Paul emphasizes that, whatever your circumstance, you should always rejoice in God s attributes and His provisions. Paul continues by saying: To write the same things again isRead MoreAnalysis Of The Book Romans 1725 Words à |à 7 Pagesthe book of Romans, the framework for Paulââ¬â¢s theology has been laid out with a basis on Godââ¬â¢s righteousness and humanityââ¬â¢s sinfulness as illuminated by the Mosaic law. In Chapter seven Paul furthers his discussion on the power of sin. This discussion offered by Paul must be pr eceded by a discussion of who in fact Paul is referencing in this passage. The question rests in his use of the word ââ¬Å"à µÃ ³ÃŽâ⬠translated ââ¬Å"I.â⬠The identity of this ââ¬Å"Iâ⬠is debated amongst theologians. Answering the question of whoRead MoreReasons For Not Accepting Acts As A Historical Record1534 Words à |à 7 Pagesââ¬Å"Consider Paul, and you will see that our being mortal brings us the greatest benefitsâ⬠(Chrysostom, NCE p216). Mortality means being subject to death, and this is a result of the human race not being perfect; not being consistent. When observing ancient accounts of what occurred, it is necessary to remember the mortality of all people, and the inevitable debates that will arise over discrepancies in different sources citing the same instance. Paul of Tarsus is a man whoââ¬â¢s life is highly debatedRead MoreThe Theory Of Natural Law876 Words à |à 4 PagesPaul makes use of the concept of natural law in his works o f the New Testament. In Paul makes use of the concept of natural law in his works of the New Testament. In Romans, the messages are written in such a way that they depict the idea of natural law, which can be attributed to Godââ¬â¢s creation. This situation implies that natural law is directly linked to the laws that dictate the relationship between God and human beings as He created the world. These further shows that the laws are referred to
Wednesday, May 6, 2020
Personal Leadership Model Essay - 609 Words
Running head: PERSONAL MODEL OF LEADERSHIP Personal Model of Leadership Natasha Velez Grand Canyon University PSC-410 Servant Leadership August 30, 2010 Personal Leadership Model In order to respond to society and the world it must begin with a decision to act in the true sense of the word leadership. There is no right or wrong model of leadership and to make a better world, society needs a variety of leadership models in place. In other words, leadership doesnââ¬â¢t have to be a formal, exalted position. It is rather as the definition states: taking actions in any setting which will bring about change by motivating others (Millard, 2008). Furthermore the group does not have to be a formal group to accomplish a common goal orâ⬠¦show more contentâ⬠¦No one likes to be talked down to or disrespected, so in return members of our team treat each otherââ¬â¢s fairly and with the upmost respect. Team building activities improves and reduces conflicts between team members, increase awareness of each individuals worth and usefulness, as well as bonding and binding the team together for the common good of the orga nization (Rose 2010). Lastly the commitment to CSR I will only do business with those that support and promote this responsibility. Impact Having an organization in which everyone is committed to finishing the job will have great value. Working in a team based organization will help members not only respect one another but also provide members to recognize each members worth or contributions. It is possible to achieve success the demanding market without compromising oneââ¬â¢s ethical principles yet it can be down by promoting corporate social responsibility. As I continue to explore life and the many different leadership models I understand things may change. Yet, I hold true to my values now. References Rose, C (2010). Whatââ¬â¢s the pupose of team building. Retrieved August 29, 2010, from http://ezinearticles.com/?Whats-the-Purpose-of-Team-Building-Activities?id=2077478 Millard,B (2008). A New Look at Leadership Retrieved August 29, 2010, fromShow MoreRelatedA Personal Model of Leadership2344 Words à |à 10 PagesA Personal Model of Leadership Leadership is a fascinating concept. The term conjures up ideas of powerful, triumphant heroes with a group of followers defeating some evil enemy. Perhaps the enormous allure to leadership is because of the influence it has on practically everyones life. Stories of heroic leadership go back to biblical times with Moses leading his people out of Egypt. After surveying numerous articles on the evolution of leadership, it appeared that most of the articlesRead MoreMy Personal Leadership Model Of Leadership Essay1487 Words à |à 6 Pagesbelieve that at any person with leadership skills has the potential in becoming a good leader. I also believe a person can lead if he or she has good core values view of the world. One core value from each level including individual, between-people, organizational, and social, showing how individuals are acting towards the values others. These values help to complete my personal model of leadership, and how I conducted myself as a leader when I was in a leadership role (Smith, 2005). IndividualRead MoreMy Personal Leadership Model Of Leadership1480 Words à |à 6 Pagesbelieve that of any person with leadership skills has the potential in becoming a good leader. I also believe a person can lead if he or she has good core values views of the world. One core value from each level, including individual, between-people, organizational, and social, showing how individuals are acting towards the values others. These values help to complete my personal model of leadership, and how I conducted myself as a leader when I was in a leadership role (Smith, 2005). IndividualRead MoreMy Personal Model Of Leadership1712 Words à |à 7 PagesWhere there is no community, trust, respect, ethical behavior, it is difficult for the young to learn and from the old to maintain (Sendjaya and Sarros, 2002, p. 68). The founder of servant leadership, Robert K Greenleaf; believes that every person ought to own values that could support and guide others. Greenleaf s theory the servant leader is a servant first; it begins with the natural feeling that one wants to serve (Dierendonck Patterson, 2010). In order to serve, people must comprehendRead MorePersonal Model of Ethical Leadership1303 Words à |à 5 PagesPersonal Model of Ethical Leadership Personal Model of Ethical Leadership: Ethical leadership is an important aspect that should be practiced by all individuals in leadership positions despite of whether the leadership is intentional or unintentional, or formal or informal. However, practicing ethical leadership is difficult in some cases, especially when there are tough decisions to be made while the appropriate choice is unpleasant though its clear. Notably, ethical leadership is quite importantRead MoreMy Personal Model Of Leadership1593 Words à |à 7 Pages ââ¬Å"Where there is no community, trust, respect, ethical behavior is difficult for the young to learn and from the old to maintainâ⬠(Robert K Greenleaf). The founder of servant leadership, Robert K Greenleaf; believes that every person ought to own values that could support and guide others. According to Greenleaf, ââ¬Å"The servant leader is servant first; it begins with the natural feeling that one wants to serveâ⬠(â⬠¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦Ã¢â¬ ¦.). In order to serve people must comprehend values; which are a personââ¬â¢sRead MoreMy Personal Model Of Leadership1583 Words à |à 7 Pages Where there is no community, trust, respect, ethical behavior, it is difficult for the young to learn and from the old to maintain (Sendjaya and Sarros, 2002, p. 68). The founder of servant leadership, Robert K Greenleaf; considered that every person ought to own values that could support and guide others. Greenleaf s philosophy was that the servant leader is a servant first; it begins with the natural feeling that one wants to serve (Dierendonck Patterson, 2010, p. 22). To serveRead MoreEssay on A Personal Model of Leadership1298 Words à |à 6 Pagesassessment of her leadership style and ability this leader is able to develop and understand her own strengths and limitations in order to grow and develop into a more effective leader. The aim of this paper is to provide an overview of servant leadership, contingency, path-goal styles leadership to gain an understanding of current leadership models, identify this authorââ¬â¢s style of leadership and explore why leadership is important to organizations, society and this author. A Personal Model of Leadership Read MoreMy Personal Leadership Under The Vroom Yetton Normative Decision Model839 Words à |à 4 PagesThe three areas of my personal leadership repertoire which are the weakest are consultative type II leadership, Group-based Type 2 Leadership, and Autocratic Type 1 Leadership Consultative type II leadership under the Vroom-Yetton-Jago Normative Decision Model is something I should use more frequently. It mirrors the consultative type I style but deviates in the fact that followers are allowed to meet with each other. Often in my capacity I have clientele which could find great synergy on theirRead MoreThe Primary Limitation Of Leadership1586 Words à |à 7 Pagestheory is that it has no approaches or styles for leadership to a similar situation as same as trait theory. In Contingency theory, it is essential to match leaders and situations to improve effective leadership such as changing the leader to match the situation, and change the situation to match the leader (Leadership-Central, 2014). Models of leadership help early childhood educator to understand the factors, which highlight effective leadership. A model is a significance framework for categorizing
Tuesday, May 5, 2020
Working Capital Management free essay sample
Introduction: Working Capital is the lifeblood and controlling nerve of an organization. ONGC being a large organization, dealing in exploration and exploitation of hydrocarbons requires a large amount of funds. The complexity and risks involved in exploration business like whole procedure of search of oil, geographical and physical conditions, day to day reduction in oil reserves and many other things tend to maintain a substantial amount of working capital. Hence, there is a need for proper management of working capital, so that day by day operations do not hamper; at the same time there would not be any idle investment in working capital.Number of Pages of Project Report: 60 Package Includes: Synopsis/Project Proposal + Project Report Project Format: Document (. doc) Table of Contents of Project Report: Chapter 1: Introduction 1. 1. Preface 1. 2. Acknowledgement 1. 3. Meaning of Project 1. 4. Executive Summary 1. 5. Objectives of the Project Chapter 2: Company Profile 2. 1 History of ONGC 2. We will write a custom essay sample on Working Capital Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page 2 Profile of ONGC 2. 3 Global Ranking 2. 4 Vision and Mission of ONGC 2. 5 Community Development of ONGC 2. 6 Products of ONGC 2. 7 Subsidiaries of ONGC 2. 8 Research MethodologyChapter 3: Working Capital Management 3. 1 Meaning of Working Capital 3. 2 Kinds of Working Capital 3. 3 Need for Working Capital 3. 4 Factors determining the Working Capital Requirements 3. 5 Working Capital Cycle 3. 6 Components of Working Capital 3. 7 Working Capital Management in ONGC 3. 8 Position of Current Assets and Current Liabilities in ONGC 3. 9 Factors requiring consideration while estimating Working Capital 3. 10 Swot Analysis Chapter 4: Findings Chapter 5: Suggestions Chapter 6: Conclusions Chapter 7: Bibliography Working Capital Management free essay sample The Reliant Electrical Systems is in its final planning stages for FY2013 and Management is concerned about low profitability. RES management would like to increase NPM to 6 percent or more next year. There are several proposals being suggested that will be computer-generated in order to assess the results on operating cash flows and profitability. The goal is to determine which options will improve profitability, and furthermore, which mixture or stack of suggestions will maximize profitability. I am part of a management task team assigned to analyze the following suggestions from various members of the firm to obtain the goal of maximizing profitability and obtaining a NPM above 6 percent for next year. (A1) The sales staffââ¬â¢s decision to increase FOB price by $125. 00 per unit, which resulted in a decrease in sales by 2. 5%, had a positive effect on NPM, OI, and NI. NPM increased to 6. 52%, OI increased by $3,322,201, and NI increased by $2,202,070, which is a significant benefit for the company. We will write a custom essay sample on Working Capital Management or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Though sales went down, the increase in NPM is what caused the overall increase in both OI and NI. (A2) The ad agencyââ¬â¢s decision to decrease the FOB price by $75. 00, resulting in a %5 increase in sales had a substantially negative effect on NPM, OI, and NI. NPM decreased to 2. 97%, OI increased by $3,322,201, and NI increased by $2,202,070 which is a significant loss for the company. Though sales went up, the decrease in NPM from the result of decreased FOB price is what caused the overall decrease in both OI and NI. B) The engineerââ¬â¢s decision to redesign the base product to reduce the assembly time to 11. 0 hours had a fairly positive impact on OI and NI. The OI was increased by $705,870 and NI increased by $467,865, but NPM was only increased to 4. 65% which would not make this option alone beneficial for the company. (C) The CFOââ¬â¢s decision to operate with 0. 5 times next monthââ¬â¢s level resulted in very insignificant savings for the company. There was no change in OI or NPM and NI only increased by $4,985. These results justify the CEO and COOââ¬â¢s skepticism of the CFOââ¬â¢s decision. The Accounts Receivable Supervisors beliefs that tightening the credit standard by reducing the bad debt experience to 1. 25% of sales, which results in a $4,200 increase in administrative cost per month, would have an overall negative impact on the firm. NPM is reduced to 3. 85%, OI is decreased by $341,316, and NI is decreased by $185,329. This option would not be beneficial for the firm. The addition of a new employee would end up costing more in the long run. (D) The sales manager has suggested that the firm should increase the rate of collection by offering a discount with the terms 2/10 Net 30. The results of the discount incentive was speculated to increase cash payments to 35% in the month of sale, 25% in the month after sale, and % two months after the sale, with a 20% balance collected 90 days after the sales. Though the speculation sounds great, the result of the changes would actually produce a significantly negative impact on the companyââ¬â¢s profitability. The OI was decreased by $597,303, NI decreased by $384,766, and the NPM was decreased to 3. 67%. (E) The sales manager has suggested that the firm should increase the rate of collection by offering a discount with the terms 2/10 Net 30. The results of the discount incentive was speculated to increase cash payments to 35% in the month of sale, 25% in the month after sale, and % two months after the sale, with a 20% balance collected 90 days after the sales. Though the speculation sounds great, the result of the changes would actually produce a significantly negative impact on the companyââ¬â¢s profitability. The OI was decreased by $705,870 and NI decreased by $467,865, and the NPM was decreased to 4. 65%. (F) The Marketing Managerââ¬â¢s belief that the firm should increase its advertising and sales promotion budget to 4. %, which would result in an increase in sales by 6. 0%, is somewhat beneficial for the firm. The OI was increased by $143,886 and NI increased by $80,061, but NPM was only decreased to 3. 95% which would not make this option alone beneficial for the company. (G) The manufacturing managerââ¬â¢s suggestion to increase the finished goods inventory from 1 to 2 weeks would not have a very signif icant change in the firms OI, NPM, and NI. The OI is only increased by $164,707, NPM is only increased to 4. 19% which is below the companyââ¬â¢s expectations, and NI is only increased by $80,063. This option alone would not be significantly beneficial for the company. Recommendation to Management After analyzing each proposal and combining the effects of all the options that improved profitability, I have created a stack that maximizes the firmââ¬â¢s profitability and meet managementââ¬â¢s goals of obtaining a NPM above 6 percent for next year. The combination of the suggestions made by the sales staff (A1), engineers (B), and manufacturing manager (G) has resulted in the optimal stack of options. OI increased by $4,012,094, NI increased by $2,639,300, and NPM increased to 7. 02%.
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