Research

Topic NO. 1.   Managing Financial Resources and Decisions 

(1.1)   Ways of financing

There are various ways one can raise capital for his business, with a few methodologies being more mind boggling than the others. One of the most straightforward routines to addition enough money to begin a business would be to make to put some of your own cash into the business, in the event that you have enough cash set aside to cover some of your costs. The second system would be to acquire cash from family, companions, credit unions, banks, or some other source that loans cash. An alternate strategy to raise capital would include discovering financiers that would discover your thought and your method engaging. For this situation, financier would typically get a profit for their speculations, in the same way as investment. A few financial specialists may decide to hold stakes in the organization rather (Gitman, 2003).                                      

(      (1.2)Implications of decision and legitimate, monetary and weakening of control suggestions (percentage possessions); dangers of liquidation

The danger of liquidation relies on upon the sort of the business, the way of speculations, and also the neighbourhood laws. In the event of a sole proprietorship, the speculator may lose all his cash, including his individual resources, on the off chance that he can't pay back his liabilities. An assurance may be offered through the nearby laws, while certain sorts of business, particularly organizations, can work under a constrained risk strategy. This implies that in the event that the business goes bankrupt, the holder won't need to pay out of his individual resources. Moreover, if the organization has more than one financial specialist, or is the business is running under an association, the benefits and liabilities may be isolated in a certain proportion, or just as if a particular degree has not been defined (Gitman, 2003).

(1.3) Appropriate wellspring of fund

Each of the sources specified in 1.1 will have their points of interest and disservices. These are a percentage of the suggestions brought up for each one source said:

•  Investing your cash 

This would appear to be the first sense of quite a few people who try to begin their business. Contributing our cash implies that we won't need to manage any nosey financial specialists, offer our thought just to persuade individuals to put resources into our organization, or pay enthusiasm on advances. Nonetheless, it will expand the danger, in light of the fact that if the business goes bankrupt, we will have no wellspring of accessible money to clutch. It relies on upon the way of the business that hazard could possibly be legitimized (Gitman, 2003).

•  borrowing cash

We can likewise acquire cash by taking a credit or charging costs against a charge card, or we can approach establishments that let business people get cash on a lessened premium rate. In any case, there is dependably discovered to obtaining cash. Raising a lot of capital on zero to minimal investment can be hard, and premium instalments can be hard to pay (Gitman, 2003).

• finding financier  

Financier can put resources into our business, which would offer help to us to rise enough funding to get operations running. Notwithstanding, speculators can request robust returns, or for a stake in the organization. This implies that we may lose a decent lump of our net pay, or our financier may wind up on our directorate (Gitman, 2003).

Thus, remembering all these elements, I would consider financing my business with my own particular funds, and in addition a few borrowings from sources that would have lower borrowing expenses as contrasted with a customary bank. This blend would be helpful in the short run, since the expense of obtained capital would be moderately lower. This would particularly prove to be useful amid the initial couple of years, since net earnings would be low, and high interest expenses could take away huge extents of the income.

(2.1) Finance expenses of picked roots of money

The money expense would shift, since it relies on upon various elements. The measures of cash one can contribute exclusively rely on upon the amount of cash the business person has set aside, and the amount of danger he is ready to take. Chances are that the ambitious person may have that measure of cash contributed someplace else, and withdrawing that cash could mean a loss of returns. Consequently, there is a monetary expense, and additionally an open door expense included (Garrison et al., 2009).

Banks may be eager to help out; however components, for example, validity, business prospects, and FICO assessments remain a vital component in deciding the premium rates. They could be sufficiently low to match a credit union, or sufficiently high to compel a business visionary to research different wellsprings of financing. Case in point, a bank charging 20% yearly enthusiasm on the credited sum would make it incomprehensible for a little business to survive, in addition to extend. Since I anticipate depending on a bank to back a huge extent of my business, a high premium rate could be a distinct major issue (Garrison et al., 2009).

(2.2)  Importance of money related arranging

Money related arranging, or making a monetary plan, is critical for any business, little or expansive. It includes overseeing funds in a manner that would help keep the ambitious person track of his organization in a productive way (Horngren et al., 2013).

A standout amongst the most critical motivations to set up a monetary plan is to stay informed concerning your ventures. A money related arrangement will permit you to be mindful of your deals figures, expenses brought about on obtained capital, and your general working expenses. In addition, you will likewise have the capacity to foresee and dissect a pattern by taking a gander at the figures. For instance, just a money related plan will help you assess if the cash you are using on publicizing is advocated by the increment in deals. You can then designate your funding appropriately, contingent on the conclusion (Horngren et al., 2013).

Besides, monetary arranging will help you set objectives that are achievable, and help you think of an impeccable technique to achieve your objective. Not just will this help you extend your operations and help you get to be more effective, yet banks and loan specialists will be more agreeable with crediting you cash on the off chance that they realize that you have a robust money related arrange set up (Horngren et al., 2013).

When you have a firm monetary arrangement, you can utilize it to investigate your organization's execution. An outside investigation could comprise of components, for example, the customer's bartering force, fame of items from different rivals in the business, and the interest for substitute merchandise. For an inner investigation, the organization could perform a SWOT examination, or consider applying the business advancement model or a worth fasten examination to give a reasonable perspective of where the organization stands. Remembering the results, the organization can then concoct a method that concentrates all the more on the organization's qualities. None of these investigation or techniques could be framed if a legitimate monetary arrangement does not exist (Horngren et al., 2013).

(2.3) Different data requirements for every chiefs

The most vital chief would be the ambitious person himself, since he would claim a large portion of the voting rights. An ambitious person needs to know how the organization is performing, and promptly needs to address any inadequacies that emerge. The governing body come next on the rundown, since their choices influence how the organization will perform in the times to come. Thirdly, the financial specialists and banks need to how the current stance of the organization, since their cash is in question.

There are various budgetary components that assume an essential part in the examination and system development of a business, and at last help the executives think of the best methodology to keep the business monetarily maintainable (Lucey, 2003).

The absolute most generally utilized elements for choice making include:

• Free Cash Flow

The Trading, Profit and Loss record would provide for us an organization's net benefit for the year, yet that sum would not be important from a money related perspective. This is on the grounds that a Profit and Loss record manages a few components that – practically – don't influence the money stream of a business. For instance, a business may subtract deterioration of an advantage as a cost in the PNL, yet it remains a hypothetical cost (Lucey, 2003).

The Free Cash Flow contemplates all these components, and helps us figure the measure of trade that is streaming in for spendable dough a business. It makes a couple of changes in accordance with the net benefit, so we can have a more sensible figure to build our choices in light of. Expenses, for example, a deterioration cost will be added once again to the net benefit, while the instalments got from indebted individuals and instalments made to loan bosses would be balanced as needs be.

• Financial Ratios

These degrees help us break down how effective a firm is in terms of taking care of accounts. It helps the organization recognize its fortresses, and the proportions can bail call attention to inefficiencies that would have a negative budgetary effect. For instance, the stock turnover degree could reflect an organization's capacity expenses, keeping an eye on the charge and credit turnover proportions could help in assessing money streams, and a great TIE proportion or an obligation proportion could make the financial specialists feel more good (Lucey, 2003).

• Asset Management

Resource administration reflects over a way an organization uses its present resources and current liabilities and how viably it deals with its money change cycle, and also the working capital. This system can furnish the organization with a benchmark, which it can use to hope to measure up itself to different adversaries to see where they stand (Lucey, 2003).

• Risk Management

The organization must be mindful, and must consider any unforeseen circumstances that would contrarily affect the organization's money stream. An organization might likewise arrange ahead for any financial vulnerability that could emerge from common or man-made catastrophes (Lucey, 2003).

(2.4) Completion of balance sheet

Assets	£
Fixed Assets	10,000
Accumulated Depreciation	1,000
Total Fixed Assets	9,000
Current Assets
Stock	2,500
Debtors	1,500
Bank	12,500
Total Current Assets	16,500
Total Assets	25,500
Liabilities
Creditors	3,000
Loan	2,000
Credit card	750
Total Liabilities	5,750
Equity
Capital	2,000
Retained Profit	17,750
Total Liabilities and Equity	25,500

In the event that the organization has taken a credit, it will need to pay interest. The yearly interest would be recorded in the income statement. For this situation, the yearly interest instalments will be a piece of the current liabilities area in a critical position sheet, and the advance will be recorded as a long term risk in balance sheet. In the event that the business visionary decides to contribute some of his own cash, then he won't need to acquire an expense of getting, and the sum will be added to the trade adjust in for money the equity area. (Garrison et al., 2009)

In the event that a financial specialist takes a credit, it will expand his long haul obligation, and his capital. The investment will bring about a diminishment in the organization's net benefit. In the event that the business person puts resources into the organization, the capital will go up (Garrison et al., 2009).

(3.1A) Personal Budget

	January (£)	February (£)	March (£)	April            (£)	May       (£)	June       (£)
Income:
Salary	5,000	5,000	5,000	6,000	6,000	6,000
Bonuses	500	250	3,00	400	150	200
Total Income	5,500	5,250	5,300	6,400	6,150	6,200
Expenses:
Loan repayments	2,000	2,000	2,000	2,000	2,000	1,000
Travel costs	600	700	900	800	950	800
Phone bill	300	200	250	400	450	350
Total expenses	2,900	2,900	3,150	3,200	3,400	2,150
Savings per month	2,600	2,350	2,150	3,200	2,750	4,050

(3.1B) Company Cash Budget:

	£ May	£ June	£ July	£ Aug	£ Sept	£ Oct	£ Nov	£ Dec	£ Jan
Sales for the month	15,000	150,000	300,000	450,000	600,000	300,000	300,000	75,000	150,000
Receipts From Sales:
May	7,500	120,000	22,500
June		7,500	120,000	22,500
July			15,000	240,000	45,000
Aug				22,500	360,000	67,500
Sept					30,000	480,000	90,000
Oct						15,000	240,000	45,000
Nov							15,000	240,000	45,000
Dec								3,750	60,000
Jan									7,500
Total Income from Sales			157,500	285,000	435,000	5,625,000	345,000	288,750

	(£)July	(£)Aug	(£)Sept	(£)Oct	(£)Nov	(£)Dec
Total Income from Sales	157,500	285,000	435,000	562,500	345,000	288,750
Less: Expenses
E
Purchase	75,000	105,000	735,000	255,000	195,000	135,000
Salaries	22,500	22,500	22,500	22,500	22,500	22,500
lease payment	7,500	7,500	7,500	7,500	7,500	7,500
misc. Payments	2,250	2,250	2,250	2,250	2,250	2,250
Tax			52,500			52,500
progress pay				150,000
Total Expenses for the month	107,250	137,250	819,750	437,250	227,250	219,750
net gain/loss	50,250	147,750	384,750	125,250	117,750	69,000
Add: Opening Balance	110,000	160,250	308,000	76,750	48,500	166,250
total cash	160,250	308,000	76,750	48,500
Less: Reserves	75,000	75,000	75,000	75,000	75,000	75,000
Closing Balance for the month	85,250	233,000	151,750	26,500	91,250	160,250

The organization can figure out how to decrease some of its costs, approach their borrowers for an early instalment, or obtain some cash to enhance the money stream once more. The organization can likewise contribute some of its held income go into the business. In the event that it neglects to make a move soon, it may wind up owing debtors emergencies which would be a long ways past recuperation, and the organization will have no decision however to close down its operations for good.

(3.2) Unit costs and making pricing decisions

Total production cost	(£) 35,000
Number of units produced	500
Cost per unit	(£) 70

Selling price after 33.33% mark-up:

Cost per unit	(£) 70
Add mark-up (1.33*70)	23.1
Selling price per unit	(£) 93

Selling price after 20% ROCE

Cost per unit	(£) 70
Add ROCE/unit [(50000*0.2)/500]	20
Selling price per unit	(£) 90

From a financial perspective, a lower sticker would be favoured, since it would draw in more purchasers to the item (Garrison et al., 2009). In the event that this happens, benefits will go up. Be that as it may, future counts can't be depended upon this technique, since the offering cost can go well past the business cost of opponent products if more capital is infused. Subsequently, the offering value ought to be aggressive, however for the present; the second choice would appear to be a finer thought.

(3.3) Viability of a project using investment appraisal techniques

Payback period:

Product A:

Investment of product A = £80,000

Return

1^st year = £35,000

2^nd year = £35,000

3^rd year = £40,000

4^th year = £50,000

£35,000 + £35,000 + £40,000 = £110,000 + £50,000 = £160,000

The aggregate cash that is put will be returned in 2 years and 3 months.

£30,000 will be earned before third years over and £50,000 will be earned in the fourth year.

Product B:

Investment of product B = £150,000

Returns

1^st year = £30,000

2^nd year = £45,000

3^rd year = £75,000

4^th year = £75,000

£30,000 + £45,000 + £75,000 = £150,000 + £75,000 = £225,000

The aggregate cash that is put will be returned in third year.

£75,000 will be earned in the fourth year.

Product C:

Investment of product C = £80,000

Returns:

1^st year = £40,000

2^nd year = £40,000

3^rd year = £20,000

4^th year = £25,000

£40,000 + £40,000 = £80,000 + £20,000 + £25,000 = £125,000

The aggregate cash that is contributed will be returned following 2 years. After that, benefit of £45,000 will be earned.

Product A: 2 years, 3 months.

Product B: 3 years.

Product C: 2 years.

Net present values

Year	Discounted cash flows from product A	Discounted cash flows from product B	Discounted cash flows from product C
0	-80,000	-150,000	-80,000
1	35,000*0.909=31,815	30,000*0.909=27,270	40,000*0.909=36,360
2	35,000*0.826=28,910	45,000*0.826=37,170	40,000*0.826=33,040
3	40,000*0.751=30,040	75,000*0.751=56,325	20,000*0.751=15,020
4	50,000*0.683=34,150	75,000*0.683=51,225	250,00*0.683=17,075
NPV	(£) 44,915	(£) 21,990	(£) 21,495

 Accounting rate of return

	Product A	Product B	Product C
Average cash flow	(£) 160,000/4=40,000	(£) 225,000/4=56,250	(£) 125,000/4=31.250
Average investment	(£) 80,000/2=40,000	(£) 150,000/2=75,000	(£) 80,000/2=40,000
ARR	[(40,000/40,000)*100]=100%	[(56,250/75,000)*100]=75%	[(31,250/40,000)*100]=78%

In light of these computations, Product A is by all accounts a decent decision since it has a tolerable payback period, so the speculator would not need to sit tight for a really long time to recuperate his venture. Also, item A additionally has the most astounding Net Present Value, which implies that the speculator would get the strongest returns over this venture. Henceforth, Product A is the most lucrative choice, emulated by Product B and item C.

(4.1) Trading Profit and Loss Account, the Balance Sheet and Cash stream

The Trading, Profit and Loss Account

The Trading, Profit and Loss account, otherwise called an Income Statement, gives an outline of incomes and expenses acquired by a business over a time of time. By and large, it begins off with the incomes, emulated by a subtraction of the expense of offers that helps us figure the gross benefit. Costs are subtracted from the gross benefit, and some other earnings are included. At last, we get the net benefit, based over the time compass of the announcement. This time compass, by and large, is one bookkeeping year (Houston and Brigham, 2009).

The Balance Sheet

An accounting report gives the organization's budgetary position on a particular day – which is the latest day of the bookkeeping year, by and large (Brigham and Johnson, 1980). The balance sheet is planned remembering the essential bookkeeping accounting equation, expressing that the capital must be equivalent to the assets and liabilities of the organization.

The Assets, Liabilities and Equity accounts typically have different subcategories inside them. Case in point, the Equity part could rundown down more than one wellspring of trusts, while the assets and liabilities can be further partitioned into transient and long liabilities (Brigham and Johnson, 1980).

The Cash Flow Statement

The money stream proclamation is not the same as the Income Statement and the Balance Sheet, basically in light of the fact that it is intended to fill an alternate need. The net revenue is changed by including and subtracting different exchanges, with the goal that organizations can have a more sensible figure to build their methods in light of figures (Houston and Brigham, 2009).

By and large, the statement is isolated into three noteworthy subcategories: Operations, Investing, and Financing. Operations help us figure the net money stream, while the putting subsection considers any ventures that the organization has made. The Finance area manages the progressions in the measure of financing the organization picks up from different sources, for example, credits. It additionally manages the expenses brought about for acquiring these accounts, for example, paying out profits (Houston and Brigham, 2009).

(4.2) Comparison of fitting configurations for monetary articulations

Sole broker records are for the most part not subjected to any particular regulations, and the financial statements are not submitted to any administrative substance (the HMRC, for instance), unless the sole dealer winds up in a claim. The budgetary explanations of a constrained organization, then again, must be as per, and will be burdened under GAAP. The constrained organization will likewise be legitimately needed to submit their announcements to an administrative element (Houston and Brigham, 2009).

Income Statement

The extent that income statement goes, a sole broker may create a basic income statement, and there is no lawful necessity to do so. Costs, for example, profits and benefits will be avoided, and organization costs will be for the most part accounted under general costs. A limited company is legitimately needed to create an income statement, which will be itemized. Expenses, e.g., benefits and compensations of executives will go under organization costs, and expense caused by paying profits will be reflected in the income statement (Houston and Brigham, 2009).

Retained Earnings

A sole merchant does not endure a corporate tax, and is basically saddled on the net revenues. No profits will be indicated in the retained earnings. A limited company will need to pay a company expense, and profits will be indicated in the held in retained earnings (Houston and Brigham, 2009).

Balance Sheet

There will be no notice of profits on a sole merchant's accounting report, and he is just qualified for an individual benefits. If there should be an occurrence of an organization, workers are permitted an organization say that is thought about the accounting report, and profits will be a piece of the capital on the balance sheet (Houston and Brigham, 2009).

(4.3) Accounting ratios

·         Current Ratio

 = 2.0

This implies that the organization has enough present resources for pay back double amount of its present obligations (Houston and Brigham, 2009). The organization will be viewed as solid, and lenders will discover the organization simpler to trust because of a decent degree.

·         Acid Test Ratio

=1.25

Stock is generally subtracted from the current resources, since it is thought to be the minimum fluid of all present resources (Houston and Brigham, 2009). Nonetheless, the organization still has a good degree, and is sufficiently competent to pay back any present liabilities it owes.

·         Return on Capital Employed

= 13.33%

The higher the ROCE, the all the more adequately an organization is utilizing its contributed capital (Houston and Brigham, 2009). Case in point, if the business normal is 10% then the organization is improving generally than different contenders.

·         Gross Profit Margin

= 25%

This proportion lets us know that the organization holds 25% of each pound it gains (Houston and Brigham, 2009). This may be something to stress over, since the expense of merchandise sold are taking up a significant lump of the benefits.

·         Net Profit Margin

= 2.33%

As per the Net Profit Margin, the organization is holding just 2.33% of each pound it gains (Houston and Brigham, 2009). This implies that the organization may not be maintainable over the long haul, since the money related results appear to be well underneath the imprint.

References

Brigham, E., and Johnson, R. (1980) Issues in Managerial Finance, Hinsdale Illinois: Holt Rinehart and Winston Publishers.

Garrison, R., Noreen, E., and Brewer, P. (2009) Managerial Accounting 13^th ed., McGraw-Hill/Irwin Hardcover.

Gitman, L. (2003) Principles of Managerial Finance, 10th ed., Addison-Wesley Publishing.

Horngren, C., Sundem, G., Stratton, W., Burgstahler, D., and Schatzberg, J. (2013) Introduction to management accounting 16^th ed., Pearson education.

Houston, J. F., and Brigham, E. F. (2009) Fundamentals of Financial Management, Cincinnati (Ohio): South-Western College Pub.

Lucey, T. (2003) Management accounting,Cengage Learning.

Topic NO. 2. Fair Trade

Question 1
What is ‘fair trade’? How does fair trade benefit consumers? How does it benefit organizations?
Definition of Fair Trade:

“Every business transaction is a challenge to see that both parties come out fairly.”
                                                                                                                        Adam Smith, 1759
A trading organization, in view of dialog, transparency, and admiration, that looks for more prominent value in worldwide exchange. It helps feasible improvement by offering better trading conditions to, and securing the privileges of, distraught producers and workers.
Reasonable Trade is a considerable measure of things: a social equity development, an option business model, an arrangement of worldwide commerce, an instrument for universal advancement, a confidence based action.
It implies distinctive things to diverse individuals. There is no single, administrative, legitimate body. Along these lines, people need to investigate different models and ideas. Reasonable Trade's numerous definitions do constantly revolve around the trade of merchandise focused around standards of financial and social equity.
Fair Trade Benefit for Consumers:
1. Stable prices
For most items there is a Fair Trade Minimum Price that points/ objective to take care of the expenses of practical generation, actually when world business sector costs fall.
2. Trade Premium
The Premium helps producers to improve the quality of their lives. It is paid on top of the concurred Fair Trade cost, and producers choose equitably how to utilize it. Normally they put it in training, human services, ranch changes or transforming offices to expand salary.
3. Partnership
Producers are involved in decisions that affect their future. Fair Trade certified producers jointly own and manage Fair Trade International. Through the Fair Trade International's Board, its Committees and discussion forms producers can impact costs, premiums, benchmarks and general method.
4. Empowerment of farmers and workersThis is a goal of Fair Trade. Little rancher bunches must have an equitable structure and transparent organization keeping in mind the end goal to be ensured. Workers must be permitted to have agents on a panel that chooses the utilization of the Fair Trade Premium. Both gatherings are upheld via Fair Trade International to create their ability around there.
Customers can purchase items in accordance with their qualities and standards. They can look over a continually becoming scope of incredible items. By buying into Fair Trade consumers support producers who are struggling to improve their lives.
Fair Trade Benefit for Organizations:In 2012 sales of Fair Trade certified goods reached £1.3 billion, a 12% increase on the previous year, demonstrate that people still want ethically produced goods.
· Stand out from the competition:
Stocking of Fair Trade products can make your business more attractive to the consumers. Your organization could benefit from increased sales and profitability.
· Increase customer loyalty
Your dedication to Fair Trade could build client maintenance which will diminish your advertising expenses.
· Recruiting staff and volunteers
May be simpler in the event that you reveal to you are a minding and moral head honcho, and staff/volunteer maintenance might likewise increment.
· Positive public relations
Inform the neighborhood press regarding your prerogative to Fair Trade, and also your founders and different stakeholders.
· Live up to customer expectations
More youthful customers anticipate that organizations will work together morally and Fair Trade is restricted to begin with.
Reasonable Trade items are frequently high caliber as buyers are paying a little premium for them.

Question 2
Explain why intermediaries in the process of distribution of products, help to both lower and increase the final price of goods. Support your answer with examples.

Definition of intermediaries:An individual or a firm, (for example, an intermediary or advisor) who goes about as a mediator on connection between gatherings to a business bargain speculation choice, arrangement, and so on.
For example: In money markets, Money Market Dealers or Forex Dealers or a Firms are works as a brokerage services for banks or other financial institution between depositors and investors for seeking interest income and borrowers seeking debt capital.
Go-betweens generally have some expertise in particular territories, and serve a course for business and other sort of data.
In the above example; it is true fact that the broker or mediator service firm has to have their commission which is the cost of their expense is included and this may cause the cost of borrowing and lending will be increase rather than direct dealing with among the parties.
Same as this position will be reverse if in case mediator is not involved in any dealing and the deal is direct between two or more parties will be the reason of final price / cost high just because of no involvement of broker or mediator service firm as they have full expertise and having good knowledge of the market and large client list to negotiate.
Here is some sample of three separate markets:
a) Print market: Prior to the Internet, practically all books were sold through physical retail operations that act as intermediaries in the traditional market and may cause of price increase of original cost.
The move to the Internet was at first theorized to substitute conventional retailers by electronic retailers. Besides wholesalers, distributers or even creators would have the capacity to get immediate electronic access to the client, and this may build the market and openness and value control straightforwardly which may come about value low.
b) Music market: In customary markets, music is dominatingly sold through mediators (retail outlets) that match the offerings of record organizations with the inclination of shoppers. In electronic markets, things were at first anticipated that will change.
Record companies were hypothesized to move towards direct sales since the costs associated with electronic distribution of a digital product are almost negligible.
c) Flight ticket market: Right now, 80-90% of all tickets for planned flights are sold by means of travel operators in spite of the way that machine reservation frameworks (CRS), presented in the 1970's (Hopper 1990), can be utilized as a specialized foundation for immediate deals. It was conjectured that run deals via aerial shuttles would turn into the command conveyance model.

References

Benita M. Beamon, (1999) "Measuring supply chain performance", International Journal of Operations & Production Management, Vol. 19 Iss: 3, pp.275 – 292
Douglas M. Lambert, Martha C. Cooper, Janus D. Pagh, (1998) "Supply Chain Management: Implementation Issues and Research Opportunities", The International Journal of Logistics Management, Vol. 9 Iss: 2, pp.1 – 20
Gunasekaran, C. Patel, E. Tirtiroglu, (2001) "Performance measures and metrics in a supply chain environment", International Journal of Operations & Production Management, Vol. 21 Iss: 1/2, pp.71 – 87
Martha C. Cooper, Douglas M. Lambert, Janus D. Pagh, (1997) "Supply Chain Management: More Than a New Name for Logistics ", The International Journal of Logistics Management, Vol. 8 Iss: 1, pp.1 – 14
Robert E. Spekman, John W. Kamauff Jr, Niklas Myhr, (1998) "An empirical investigation into supply chain management: a perspective on partnerships", Supply Chain Management: An International Journal, Vol. 3 Iss: 2, pp.53 - 67

Topic NO. 3- Human Resource Management-Saudi Arabia

Introduction

The Saudi Arabia General Investment Authority (SAGIA) is an organization well-known in 2000 to perk up the business surroundings and give confidence foreign speculation in the Kingdom of Saudi Arabia. This organization was shaped out of the Kingdom's landmark Foreign Investment Law of 2000 with the permission to broaden your horizons of economy and endow with jobs for its escalating young population. The hatchling agency was predictable to procure the prop up of other government ministries and agencies in tumbling obstructions to investment-including the politically susceptible "Saudiazation" plan, which gave service partiality to Saudis over overseas workers-and in advertising Saudi Arabia as a convivial location for remote investors. However, the commandment that had formed SAGIA, gave it a small amount of tools to work with. Therefore, it had to stumble on a way to oblige with the rest of the government to consequence change. SAGIA's first governor, Prince Abdullah, retired in 2004, and it would be the core of his descendant, Amr Al Dabbagh, to precede SAGIA's mission. It remnants to be seen whether Al Dabbagh, a triumphant businessman could surmount the challenges that had thus far obstructed the young agency.

Issues arise

To perk up the country business surroundings and give confidence foreign business investment in the kingdom of Saudi Arabia; the complicatedness of association across the government bureaucracy with little power or possessions; effecting revolutionize in an inauspicious political climate - both exterior and internal; human capital expansion with the skill for premeditated planning and communications; and the brunt of an individual self-motivated leader of an organization.

                                                     Firm Current Situation:

Saudi Arabia economic trumpets have provided momentous chances for the government to make targeted strategic changes and investments to put down the foundation for a sustainable augment in the Kingdom’s long-term rate of economic development. This chance has been coupled with determined hallucination on the part of His Majesty King Abdullah, curator of the Two Holy Mosques, to give confidence the economy’s progression and diversification afar the petroleum sector. Although Saudi Arabia is the world's prevalent oil exporter, it is not able to fully utilize its cutthroat advantage in petrochemicals due to the closed natural history of the EU market. In fact, Saudi Arabia significance base oil from Europe in order to formulate lube oil. The EU has somehow administered to eliminate the oil producers in the region from some of the downstream processing. WTO accession guaranteed to revolutionize this and will make Saudi Arabia a most important petrochemical manufacturer in the world.

Furthermore, with attainment to the WTO Saudi Arabia can capitalize on its aggressive benefit where it has a accepted advantage. The kingdom has the cheapest nourish stockpile in the world. Nourish stocks (natural gas, natural gas liquids or naphtha out of oil) are desirable to make petrochemicals. The fee to Saudi Arabia is underneath $2 a container whether it is in a gas container corresponding or in oil. This permits Saudi Arabia to establish taking over the marketplace. Germany is the major manufacturer of petrochemicals in the world today. Notwithstanding Saudi Arabia individual the third-largest exporter of German products, Germany does not oblige with Saudi Arabia in petrochemicals or any energy-based industry. By 2015 Saudi Arabia is predictable to materialize as the major producer of petrochemicals in the world.

Competitive profile, benchmarking

Another imperative improvement is characteristic gas. Common gas is sold by Saudi Aramco to the users, whether they are electrical energy companies, water desalination companionship, SABIC or the confidential sector at 75 cents per million BTUs or the comparable of $4.35 per barrel. The Germans, who are challenging with the Saudis, are selling at the equivalent of $62 a barrel today. Hence there is an mammoth difference between the two.

Other major fields where there is much impending for investment is in the power, agriculture and transport sectors where there are massive opportunities and confronts available to foreign investors.

Equipped by record hydrocarbon revenues and gigantic financial, treasury of more than US $500 billion, Saudi Arabia has the aptitude to persist spending heavily on the rise its economy for many years to the fore, apart from of the price of oil.

Action Plan

Within the next three years new phosphates, aluminum and iron melting industries will add billions of dollars yearly to the financial system. Much of this new industry and business improvement in the Kingdom is planned to be led or attain in partnership with both domestic and foreign investors. Prospects for augmented trade and speculation between the UK and Saudi Arabia are momentous and expanding this. The Kingdom is positioned eighth among the world's ten highest intensification economies by the International Monetary Fund (IMF).Regular visits at Prime Ministerial and Ministerial level underline the significance of the bilateral relationship, while enduring close contact between the British and Saudi Royal families highlights the profundity of the relationship. The country’s 2013 national budget exemplifies the need for Saudi Arabia to linger a key target for British export efforts. It visualizes State spending of US$218.7 billion, 19% up on 2012, with revenues projected to reach US$320.6 billion.  

The Kingdom proposes to spend more than US$367 billion over the next ten years on a wide range of communications investments. Ambitious plans include thousands of kilometers of new roads and railways, as well as airport expansion, new urban transport systems, investments in water, sewerage, power plants, telecoms and the IT sector and the construction of four million new homes. Leading investment areas also include development of oil & gas facilities, the petrochemicals sector, mining and the development of new economic cities.

The non-oil economy is of growing importance, with petrochemical sales at around US$12 billion a year. Saudi Basic Industries Corporation (SABIC) has achieved production in excess of 50 million tonnes a year of chemicals and intermediates, industrial polymers, fertilizers and metals and is a significant force in the global petrochemicals market.

Resources/techniques helpful to opening up the case study

SABIC, is 70% government owned and the Kingdom’s biggest and most diversified assembling organization, dynamic in chemicals and intermediates, mechanical polymers, manures and metals. A joint venture of the country’s oil producer, Saudi Aramco and Dow Chemical, will add to petrochemical output when a US$20 billion integrated complex comes on stream in an expanded Jubail Industrial City in 2016. This wander, known as Sadara Chemical Company, is forecast to become one of the world’s largest industrial companies.  The Government is focusing a large part of its spending plan on the development of an ambitious industrial diversification strategy. This is based on the creation of new economic cities and industrial clusters in sectors unrelated to oil production. The strategy seeks to promote regional economic development and generate hundreds of thousands of new jobs for the local population.  The projects are not only aimed at nurturing new industries but also at providing attractive residential communities, with social and educational infrastructure developed to international standards, where people will want to settle for lifestyle and jobs.

Electricity generation also needs to grow substantially to cope with the demands of an expanding population and industrial development. This is creating opportunities along the whole supply chain for building acquisition, gear suppliers, sub-builders and consultants. An estimated US$90 billion is expected to be invested in water, sewerage and power projects over the next ten years. Long discussed improvements to urban transportation are also likely to go ahead. Finance Minister, HE Dr. Ibrahim Al-Assaf, says that US$53 billion from the country’s 2012 surplus is to be allocated to additional transport spending in 2013, mainly on mass transport systems in Riyadh, Jeddah, Dammam and Mecca. These are huge projects and will create multiple contract opportunities over several years for suitably qualified UK companies.

Alternate Resources/Solutions:

One sector where British firms are clearly leaders in the Saudi market is defense. For almost half a century following the supply of British Lightning fighters in the 1960s, defense sales have constituted one of the pillars of UK/Saudi relations. The Al Yamamah military agreement to supply the Royal Saudi Air Force (RSAF) with Tornado aircraft in 1985 represented the largest ever export contract won by the UK.  This relationship, augmented by investment offset agreements, was reinforced with the signing of the Al Salam contract in 2008, to provide Typhoon fighters and other equipment to the RSAF.  Saudi Arabia continues to spend heavily on the modernization and expansion of its armed forces and security agencies. In 2012, BAE Systems signed a US$3 billion contract to supply 22 Hawk trainer jets to the Saudi Air Force.  Defense and internal security remain major areas of opportunity, with an increasing emphasis on technologies, where UK companies have proven abilities. Anything that plays to the “Saudiazation” agenda and domestic manufacturing is favored, whether civil or military. The Al Salam guard bargain, for instance, stipulates that an airplane production line for the Typhoon will be established in Dhahran. Offset investment deals related to previous defense contracts have seen a number of joint ventures, civil and military, established in the Kingdom, including a Tate & Lyle sugar refinery and a GSK pharmaceutical manufacturing plant. Such speculations mix well with the Saudi Government's wish to develop a broader and more private-sector based economy and equip graduates who are currently unemployed with the right skills.

The proportion of private sector schemes is likely to rise in future as the Government seeks greater private sector participation in venture improvement. This is liable to be reflected in private division power improvements, water and wastewater ventures and inland advancement. 

PESTEL Analysis

Political: Provinces are divided into governors, district and centers. The king council’s of minister is appointed by the king after every four years. All the business and oil system is under control of ministries that are part of the cabinet. There is no rule for the election as well as no political parties.

Economical: Saudi Arabia was an economy based on subsistence agriculture by a population that was largely itinerant until the discovery of oil. After the oil discovery it becomes one of the wealthiest nations. It is the largest exporter of petroleum industry.

Social: Its culture is based on Islamic values and it is a culturally rich country. Social problems are efficiently controlled by government because of the justice system.

Technological: According to new government policy the country’s economy becomes less reliant on the oil market. Companies and services came under privatization sector. This will promote the research and development sector (this will promote the research and development sector.)

Environmental: General natural regulation is the administration approved association determines to proscribe and line of attacks that may be planned for the control of environmental effects.

Competitiveness of Petroleum Industry:

Firm strategy and rivalry: Saudi Arabia has demonstrated their core competency in the global oil marketplace. Strategy is to focus on all the petroleum products by establishing the company called SAGIA.

Demand Conditions: Saudi Arabia consume and use 25% of petroleum products which demonstrate comparatively high demand of local customers to this product.

                                        SWOT Analysis

Strength:

·         Strong Oil and Gas Reserves

·         Large refining and petrochemical bases

Weaknesses:

·         Unemployment

·         Increase in population

·         Need of higher paying job

·         Concentration of Reserves

·         Lack of worldwide Retailing network

Opportunities:

·         Foreing JVs for expansion

·         Development of ruby project

Threats:

·         Risk of terrorist attack on energy facilities

·         New competition

Conclusion

The accession of Saudi Arabia to the World Trade Organization in December 2005 set the stage as the Government showed that subsidies to state owned industries were to be scaled back and management of utilities gradually handed over to the private sector. Saudi Arabia is pursuing investments and reforms that the Government is determined will position the Kingdom as one of the world’s most competitive economies by the beginning of the next decade. In 2011, the Kingdom achieved its aim of attaining a top ten ranking in the World Bank’s “Doing Business" Report, which tracks 183 economies and screens how easy it is in them, to start medium to small scale enterprises. While this ranking has since slipped slightly, Saudi Arabia General Investment Authority (SAGIA) is now also seeking a top 15 ranking for the Kingdom in the World Economic Forum’s “Global Aggressiveness" Report. These aspirations are demonstrative of how the business environment in Saudi Arabia is gradually improving for foreign investment. The result is an increasingly competitive market.  While abundant opportunities lie ahead for British firms, contracts are seldom easily won in Saudi Arabia. Building relationships requires patience and perseverance in a country that, while modernizing and growing its economy, is profoundly progressive. Conventional standards apply and business is not concluded quickly. However, the rewards for those willing to run the course are likely to be immense and long lasting.

Recommendation:

Saudi Sagia and Aramco don’t have global network gas stations like other integrated companies. Saudi should take the benefits of production plant in other countries through joint ventures strategies. The advantage of using its own name on petroleum products is to create more brand recognition by consumers. This would also facilitates earn better profit margin.

Topic NO.4. Resort Management

Introduction

In case you're after a bother free short break or occasion that is not difficult to book and with a decision of one, a few room condo to suit couples, families and gatherings apparently equivalent, then investigate Macdonald Resorts.

We have in excess of 20 years' knowledge of giving occasions of qualification. Whether you are searching for an energizing action occasion, lethargic days on the shoreline, a golf break with companions, or a recreation break in the midst of eminent view, with a decision of three or seven night occasions or more stay occasions you are certain to discover what you're searching for at one of our wonderful cooking toward oneself resorts in the UK, Spain or Portugal.

A.   Functions of resort operation

Customer service

Distinguishing client fulfillment levels from a goal viewpoint is essential in settling on precise managerial choices. Responding too much to feelings from particular sources or channels, or making halfway changes in light of subjective appraisal will anticipate viable allotment of assets, and certified change of client fulfillment. Building a workplace in which workers working in the field can dissect and make enhancements, self-rulingly will guarantee maintained high client fulfillment levels. (Sinéad & Jim, 2005)
Optimizing reservation channels
The Macdonalds resort lodgings and ryokan have drastically expanded since 1996, getting to be progressively convoluted. Deals obtained through conventional channels, (for example, telephone calls from clients, or appointing the booking of rooms to travel offices) have declined regarding their creation proportion of aggregate deals. In the interim, more clients are entering from three new channels, to be specific the offices' own particular sites, online travel orgs, and abroad executors
Coordinating and handling of various supplier and customer services
Encourage Customer/Supplier Forecast Collaboration: Ensuring the tight coordination of figures between your exchanging accomplices implies the distinction between having the right item to offer at a reasonable edge, losing chances to contenders, or having a lot of item available with approaching termination dates.
Enhance Efficiencies: Speed or "business speed" decides achievement. Diminishing manual methodologies, for example, re-keying information from framework to-framework decreases both postpones and mistakes that effect your business.
Encourage Information Sharing: Making beyond any doubt that the right level of data and favored specialized system is accessible to each one accomplice guarantees that you're that you have the right level of introduction with your accomplices and that you're completely upgrading your connections.
Managing legal requirements
Claims, then again, do have esteem. Laws exist to revere lawful rights and assurances, and claims allow the requirement of those rights and in addition the guard of activities that don't disregard legitimate rights. Contracts are arranged, concurred explanations of desires, commitments, and profits that various gatherings depend on, and claims can hold individuals to their statement. Individuals lie, or change what they implied, and the claim methodology offers a demonstrated type of discovering reality, or building some variant of it, between contending records. Generally, individuals have grievances and the individuals who are blamed for bringing about a grievance have the right to protect themselves. An antagonistic claim is the center point around which this clash can be determined. (Alistair, 2006)

Safety

The business' worry with security has expanded significantly because of a few terrorist assaults around the world, and also on account of sightseers' kidnappings, thefts and assaults. security of numerous sorts of cordiality and tourism operations is basic and catastrophe arrangements ought to be made for every sort of danger. Individual well being of visitors must be the first needB. Management structure of various types of tour operators. Visits are suited to individual explorers, families, individuals with exceptional investment, individuals with unique needs and any individual who needs the option to go at their own particular pace with their manual to help and educate. The voyages through Britain spread the fundamental vacation spots and locales; the most well known to the lesser known genuine traveler destinations; all with a guide that is nearby to the territory with an unfathomable information and enthusiasm about the specific site.
Macdonalds administrators additionally offer private day visits, leaving London and by and by guided voyages through Scotland, Wales and England, uncommon investment tailor-made visits. They likewise give European goal visits, for example, Paris, Normandy Beaches by private plane and private transport voyages through Rome and Italy. (Terry & Honggen, 2000)
in a resort objective known for remarkable golf, the concierge will be relied upon to know the quantity of greens and their area, the sort of green, expenses, level of play and accessibility of tee times. Frequently material is accessible to provide for the visitors to help them in making their arrangements. In a shoreline area, the concierge is relied upon to know the kind of shoreline, separation from resort, unique exercises, for example, shelling, angling, water sport rentals and actually when the high and low tides are.
An alternate administration that is normal at a resort is turn-down administrating. This administration is performed at night or night and incorporates reviving towels, purging rubbish, turning the put spreads to bed, giving mints or treats, turning on lights, and turning on music to an unwinding station. This administration is proposed to give the visitor individual administration and make an unwinding environment.
c) Discuss the importance of effective quality systems in resort operations and discuss how resorts usually apply and monitor quality procedure in managing conflicts and the legal issues.
Importance of effective quality systems in resort operations
Effective quality systems are exceptionally significant viewpoints to be taken a gander at resorts. Keeping in mind the end goal to contend in the business, quality systems are essential. To be sure, assessment additionally not to be overlooked in light of the fact that remedial move could be made to enhance the association's execution. We need to do significance execution examination to survey buyer discernments particularly in tourism connection and to disentangle the impacts of aggregate visitor encounter that was accepted to have impact on traveler steadfastness. The investigation (ABTA) is continuously utilized as a part of to divulge zone of change and propose some valuable data for the resort administration in planning a finer showcasing method focused around terminus picture that drives customer steadfastness. Evaluating the unwaveringness of these customers give approaches to the administration to streamline the assets accessible to draw in purchasers. From the examination; hole investigation furthermore ABTA, it depicts that aggregate clients encounter that prompt the resort is really the general cleanliness and cleanliness that the qualities for their principle fascination. These analyses are important for resort prosperity. All these processes help in maintaining effective quality systems in resort operations and all of the above depict the importance of quality systems in resort operations. (Pearlman, & Chacko, 2012).
How resorts apply and monitor quality procedures in managing conflicts and legal issues
Eagerness for client experience, working as a group, dependability, trustworthiness, and being proactive as among the most critical variables that resorts apply and monitor for quality procedure in manage conflicts and legal issues. It is more imperative to contract individuals with the right qualities than with particular experience.
We begin with eagerness for the client to have the best conceivable experience. The resort industry is continually going to be a visitor and client centered industry. As an administration industry resort additionally admire the imperativeness of providing the best conceivable administration so the visitor returns again and informs loved ones regarding the experience. (Xuefeng, 1994).
What about collaboration? In numerous administration industries, including neighborliness, the capacity to work collectively and as a component of a group is esteemed. It takes numerous individuals to run an inn and they need to cooperate as a decently coordinated machine to give the best conceivable visitor experience. To accomplish this objective, employees additionally are trained to adapt to fast changes in situation and then to adjust to these progressions. This leads resorts to add adaptability to the rundown of attributes.
Finally, there are the general qualities that resorts apply in managing conflicts and legal issues, for example, dependability, genuineness and being proactive, and rousing toward oneself. (Tan, & Chakra borty, 2009).

Topic NO. 5. MBA

In about 300-400 words, write an essay analyzing the below case study using the SWOT framework.

MBA is a graduate degree in business organization. The MBA degree began in the United States in the late nineteenth century when the nation industrialized and organizations looked for experimental methodologies to administration. The center courses in a MBA project spread different ranges of business, for example, bookkeeping, account, showcasing, human assets, and operations administration in a way most applicable to administration investigation and procedure. (Lataif, 1992, p-6)

SWOT analysis of MBA projects offered by business schools

Strengths arte the attributes of the business or extend that provide for it favorable element over others. Weaknesses are the attributes that place the business or undertaking off guard with respect to others. Opportunities are components that the venture could adventure further bolstering its good fortune. On the other hand threats are components in the environment that could result in inconvenience for the business or venture. (Pickton & Wright, 1998, p 101-109)

Strengths	Weaknesses
·         Chance for advanced education ·         Business information ·         Leadership qualities ·         Networking ·         Higher positions in business and administration ·         Earn 50 percent more	·         No guarantee of after expert principles ·         Shorter catch up courses ·         Speculations vs. professionalism
Opportunities	Threats
·         Updating courses	·         Organizations started to train their employees ·         Academies teaching the leaders of the company

Strengths

• In both the U.s and most parts of Europe, a MBA degree from a main instructions foundation holds extraordinary quality and chance to those looking for advanced education.
• By getting MBA degree students get enough information regarding the businesses which are currently in operation all around the world.
• MBA degree holders gain substantial leadership skills during the course of their studies.
•  Students understand the term networking and are able to network through the organization when they get up to their jobs in any organization.
• Overall, MBA graduates get higher positions in business and administration.
• The students are the one which are doing any degree expect higher incentives for their jobs. MBA applicants can hope to win no less than 50 percent more than they earned before acquire the degree.

Weaknesses

• It includes no guarantee to take after expert principles, as seen with capabilities in law, pharmaceutical, Auditing and bookkeeping.
• There is additionally no dedication to taking shorter catch up courses as a component of the proficient's proceeding with instruction.
• Some of the speculations taught in business schools clash with a feeling of professionalism. 

Opportunity

• The business schools may hold customers by updating their courses. Many schools have started to change their syllabus by including workshops, leadership courses and many other things. This change has been appreciated by the companies.

 Threats

• Many organizations want to train their employees themselves. Some have begun foundations inside their organizations.
• Some academies have begun to run a course to show business leaders to run their courses.

Case analysis

Business Schools offering MBA program

Advance Education

Business Knowledge

Leadership skills

Networking

Higher positions

Higher Incentives

                                                                                    Change Courses

                                                                                               

                                                                                                                          Inside training

 

Expert Principles

                                                                                                                           Leader’s academies

Speculation             Shorter courses

      Vs

Professionalism

Business schools have some weaknesses and facing some threats as mentioned above. They can overcome these challenges by adopting changes according to needs of the market. The need of the market is to provide more practical experience rather just case reading. A case reading does not provide sufficient skills to the students to encounter problem when they take any suitable place in any organization in order to improve the performance of the organization. It is need of the hour for the business schools to change their syllabus that could provide sufficient skills to the business students. These students which are the future leader of the any organizations should have sufficient qualities to improve the conditions of their organizations.

http://en.wikipedia.org/wiki/SWOT_analysis

http://en.wikipedia.org/wiki/Master_of_Business_Administration