...Whole Foods products and offerings were “value-priced”. The prices are normally higher than conventional supermarkets. 2. Is Whole Foods’ strategy well matched to market conditions in the food retailing industry (one of the criteria for a winning strategy discussed in Chapter 1)? * Whole Foods does not pass the fit test in the food retailing industry because other supermarkets dominate the industry and have the potential to have more success in a down economy. Whole Foods does have a sustainable competitive advantage in the industry that is becoming a preferred way of life. This company has the option of producing a superior performance, but it may not be for more than a brief period. As far as the performance test, Whole Foods does have financial strength and maintains competitive strength. Their strategy does produce good company performance. 3. Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like/dislike about the company’s mission/vision ―Whole Foods, Whole People, Whole Planet‖ that is set forth in case Exhibit 1? Do the mission/vision and the core values underlying it (case Exhibit 3) really matter at this company...
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...Milkovich−Newman: Compensation, Eighth Edition Front Matter 1. The Pay Model © The McGraw−Hill Companies, 2004 Chapter One The Pay Model Chapter Outline Compensation: Definition, Please? Society Stockholders Managers Employees Global Views—Vive la différence Forms of Pay Cash Compensation: Base Cash Compensation: Merit Pay/ Cost-of-Living Adjustments Cash Compensation: Incentives Long-Term Incentives Benefits: Income Protection Benefits: Work/Life Focus Benefits: Allowances Total Earnings Opportunities: Present Value of a Stream of Earnings Relational Returns from Work The Employment Relationship Combines Transactional and Relational Returns Variations in Transactional and Relational Expectations A Pay Model Compensation Objectives Four Policies Pay Techniques Book Plan Caveat Emptor—Be an Informed Consumer 1. Does the Research Measure Anything Useful? 2. Does the Study Separate Correlation from Causation? 3. Are There Alternative Explanations? Your Turn: Glamorous Internships? or House Elves? A friend of ours writes that she is in one of the touring companies of the musical Cats. In the company are two performers called “swings” who sit backstage during each performance. Each swing must learn five different lead roles in the show. During the performance, the swing sits next to a rack with five different costumes and makeup for each of the five roles. Our friend, who has a lead in the show, once hurt her shoulder during a dance number. She signaled to someone...
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...de conservador y al mismo tiempo de alta calidad. Actualmente las personas son conscientes de la importancia de la buena alimentación y cada vez se preocupan más por consumir alimentos sanos. 3. Do you think John Mackey has a good strategic vision for Whole Foods? Why or why not? What do you like/dislike about the company’s mission/vision “Whole Foods, Whole People, Whole Planet” that is set forth in case Exhibit 1? Do the mission/vision and the core values underlying it (case Exhibit 3) really matter at this company or are they just nice words and cosmetic window dressing? Explain. 4. Do Whole Foods Market’s core values as presented in case Exhibit 3 really matter? Are they “real” or just cosmetic window dressing? What evidence can you cite to support your answer? Have Whole Foods’ core values contributed to the company’s success? Why or why not? 5. Based on the financial statement data in case Exhibits 9, 10, and 11, how well is Whole Foods Market performing? Use the financial ratio information in Table 4.1 of Chapter 4 (pages 98-99) to assist you in calculating a revealing set of` financial ratios and interpreting them. 6. How well is Whole Foods Market performing from a strategic perspective? Does...
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...Chapter 1 The Financial Manager and the Firm Learning Objectives 1. Identify the key financial decisions facing the financial manager of any business firm. 2. Identify the basic forms of business organization used in the United States, and review their respective strengths and weaknesses. 3. Describe the typical organization of the financial function in a large corporation. 4. Explain why maximizing the current value of the firm’s stock price is the appropriate goal for management. 5. Discuss how agency conflicts affect the goal of maximizing stockholder wealth. 6. Explain why ethics is an appropriate topic in the study of corporate finance. I. Chapter Outline 1.1 The Role of the Financial Manager A. It’s All about Cash Flows • The financial manager is responsible for making decisions that are in the best interest of the firm’s owners. • A firm generates cash flows by selling the goods and services produced by its productive assets and human capital. After meeting its obligations, the firm can pay the remaining cash, called residual cash flows, to the owners as a cash dividend, or it can keep the money and reinvest the cash in the business. • A firm is unprofitable when it fails to generate sufficient cash flows to pay operating expenses, creditors, and taxes. Firms that are unprofitable over time will be forced into bankruptcy by their creditors. In bankruptcy, the company will be reorganized, or the company’s...
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...activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Dr. Robert Kaplan and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more 'balanced' view of organizational performance. Why we use a balanced scorecard? Because we can use it to improve organizational performance by measuring what matters/increase focus on strategy and results/align organization strategy with workers on a day-to-day basis/focus on the drivers key to future performance/improve communication of the organization’s vision and strategy/prioritize projects or initiatives. The balanced scorecard model suggests that we view the organization from4 perspectives: Financial - Value to shareholders Customer - Customer satisfaction and market growth Innovation and learning - People and infrastructure Internal - Processes that drive the business Then develop metrics,collect data and analyze it relative to each of these perspectives. The advantages of balanced scorecard is Balanced Scorecards can provide a visual means of demonstrating how different goals are related. Increased sales improve the profit or sales goals under the financial section. Improved customer service meets the “voice of the customer” goal.Balanced Scorecard allows companies to bridge the...
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...the big Accounting and Auditing firms, questioning the very foundations of financial reporting and corporate governance. In a very short period of time, millions of dollars were wiped off the financial statements of major corporations, and the world saw giants collapse as large amounts of money were proven to exist only in paper. Even though fraud was found to be the constant variable in each case, the causes of the main collapses were determined to be related to corporate governance in general, and corrective measures were taken to improve that. However not many people questioned the fact that most of the money that existed only in paper was in those financial statements as a result of accounting practices that were legitimate and professionally accepted, meaning that auditors were not able to see the realities of these companies as they happened to be hidden under financial statements that strictly complied with accounting standards. The aim of this essay is to discuss why auditors are not able to read a company’s true financial position and performance from the financial statements since all they are able to do is state whether or not those statements comply with the Accounting Standards. The purpose of financial reporting and accounting information will be discussed, as well as the reason why the profession believes standards are necessary. It will also be proven that complying with the standards does not guarantee that the data generated will reflect the true position of the...
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...of this article Douglas Carmichael was the Chief Auditor of the Public Company Accounting Oversight Board. His responsibility as Chief Auditor was to advise the Board and the head of the PCAOB’s professional standard-setting division on matters of policy and technical issues relating to the auditing of public companies as well as what the auditor’s role was. His role of advisor helped keep the PCAOB from being influenced by the accounting industry and their standards. 2. What does Carmichael see as the underlying mission of the PCAOB? Carmichael sees the underlying mission of the PCOAB is to restore the confidence of investors in the independent auditors of public companies by registering public accounting firms that prepare the financial statements of public companies, inspecting the audit practices of the registered accounting firms, enforcement of compliance with professional standards and securities laws by the registered accounting firms, investigation, discipline and imposition of sanctions on firms and associated persons, as well as establishing or adopting auditing, quality control, ethics, independence, and other standards related to the preparation of financial statements of public companies. 3. According to Carmichael, why is it so important that the public have confidence in the independent auditors of public companies? Dr. Carmichael states that it is important to have confidence in the independent auditors of public companies because if that confidence...
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...for behaving a certain way. An example is a student that spends extra time studying for a test because he or she wants a better grade in the class. What type of non-financial rewards might a company use to motivate employees ? Every employee certainly appreciates more money, but money does not buy happiness, nor does it buy engagement and loyalty. Non-financial incentives inspire and engage employees in ways that money is incapable of doing. Non-financial incentives are the types of rewards that are not a part of an employee’s pay. Typically, they cost the company little or no money, yet carry significant weight. Incentives of this nature are particularly effective for workers who are comfortable with their salaries or have been in the position for a long time. As companies continue to make cuts to employee compensation, non-financial incentives for employees are more crucial than ever. Relationships Matter All too often, workers feel abused and unappreciated by the companies for which they toil day in and day out. Layoffs, stressful work conditions, ever-increasing demands, unappreciative bosses, and unsupportive peers contribute to employee disengagement. At the heart of the matter is the employee-employer relationship. To perform at their best, workers must feel welcomed, valued, and appreciated. Non-financial incentives help companies address these relationship needs. In...
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...Guidance Accounting and Reporting Financial Reporting Council June 2014 Guidance on the Strategic Report The FRC is responsible for promoting high quality corporate governance and reporting to foster investment. We set the UK Corporate Governance and Stewardship Codes as well as UK standards for accounting, auditing and actuarial work. We represent UK interests in international standard-setting. We also monitor and take action to promote the quality of corporate reporting and auditing. We operate independent disciplinary arrangements for accountants and actuaries; and oversee the regulatory activities of the accountancy and actuarial professional bodies. The FRC does not accept any liability to any party for any loss, damage or costs howsoever arising, whether directly or indirectly, whether in contract, tort or otherwise from any action or decision taken (or not taken) as a result of any person relying on or otherwise using this document or arising from any omission from it. © The Financial Reporting Council Limited 2014 The Financial Reporting Council Limited is a company limited by guarantee. Registered in England number 2486368. Registered Office: 8th Floor, 125 London Wall, London EC2Y 5AS Financial Reporting Council June 2014 Guidance on the Strategic Report Contents Page Guidance on the Strategic Report Summary 1 2 3 4 5 6 7 8 Objectives and how to use this guidance Scope The annual report The strategic report: purpose The strategic report:...
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...FINANCIAL DUE-DILIGENCE August 26, 2010 26 ♣ Nitin Arora II Associate Director II Corporate Catalyst India www.cci.in Financial Due Diligence (FDD) Financial Due Diligence is a reasonable level of enquiry into the financial affairs having a material impact on the prospects of the business A FDD review may not only look at the historical financial performance of a business but will generally consider the forecast financial performance also The objective is to ensure that prospective investors make an informed investment decision Its a fact gathering exercise with a focused analysis of information. The main sources of information for a FDD review include: Historical financial data including statutory accounts, g y , management accounts and reports and income tax returns Current financial data such as year-to-date management accounts Minutes of Directors’ Meetings and Management Meetings Directors FDD is about: Evaluation, Interpretation and Communication detailed FDD – When Needed ? Mostly sought for the following transactions: Disinvestments Strategic investments or a PE investment Acquisition of an undertaking / business Inbound and overseas investments Listing of securities in Indian or overseas market st g o secu t es d a o o e seas a et Types of Due Diligence Due Diligence Dili Nature of Client Nature of Work Se S de Sell-Side (Vendor) Buy-Side Buy Side Financial Tax Legal Commercial Purpose of FDD Identify potential...
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...Parliament. By having an audit it also to show a management of public funds with a trust and term ‘true and fair view’ used to a role of Auditor General in carrying their duties. Without public auditing there might be so many projects that cannot be achieved their target and obviously there are tons of waste and misuse of the money. Besides that there are two types of audit which is internal and external audit. Both types of audit are different from each other and plus under the external audit there are three types such as Financial Audit, Compliance Audit, and Performance Audit. Public Accounts Committee (PAC) is one of the committee that serves the Parliament which comprises Chairman and Vice Chairman and the member should not less than 6 or more than 12. The function of Public Accounts Committee is very important in term of financial statement of the country which needs to be supervising and to make sure there is fair and just in the administration of Malaysia financial...
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... Teaching Note Synopsis and Objectives Suggested complementary cases in financial statement analysis: “The Financial Detective, 2005,” (UVA-F-1486); “Deutsche Brauerei,” (UVA-F-1355); “The Battle for Value, 2004: FedEx Corp. vs. United Parcel Service, Inc.,” (UVA-F-1484) This case considers the sudden and very large drop in the market value of equity for Krispy Kreme Doughnuts, Inc., associated with a series of announcements made in 2004. Those announcements caused investors to revise their expectations about the future growth of Krispy Kreme, which had been one of the most rapidly growing American corporations in the new millennium. The task for the student is to evaluate the implications of those announcements and to assess the financial health of the company. This case is intended to be introductory as it can provide a first exercise in financial statement analysis and lay the foundation for two important financial themes: the concept of financial health, and the financial-economic definition of value and its determinants. Suggested Questions for Advance Assignment to Students 1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.? 2. How can financial ratios extend your understanding of financial statements? What questions do the time series of ratios in case Exhibit 7 raise? What questions...
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...owners/shareholders (represented by the Financial perspective) • Customers and other stakeholders (represented by the Customer perspective) • Managers and process owners (represented by the Internal Business Processes perspective) • Employees and infrastructure capacity (represented by the Learning and Growth perspective) Within each perspective, the following elements are developed: • Strategic Objectives - what is the process that will be used to define strategic objectives and what are the strategic objectives that should be achieved using each perspective? • Measures - how will progress for each objective be measured? • Targets - what is the target value sought for each measure? • Initiatives or action plans - what will be done to facilitate the reaching of the targets? Why does all this matter? Well, the basic reason is that everything is connected to everything else, even though policies may be created by people in widely different corporate units; those connections are often full of unintended consequences. Here’s a classic example of the complications of integrating marketing strategy with human resource strategy. At one point, Proctor and Gamble had product managers who were paid based on how well their products performed. It sounded like a pretty good human resource strategy. Thinking about people as an investment and paying them using a return on investment formula seems pretty straight forward. If CEOs get paid for performance, why not product managers? P & G had...
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...trouble lies ahead. Often trouble can be spotted long before the stock market has noticed. I am surprised by the number of times a financial report has kept me away from a poor-performing stock. Unfamiliarity and intimidation are the biggest obstacles to overcome when reading a financial statement. Most people have jobs that do not require reviewing the financials of their company. They have little interest in reading them on their own. The view is, why bother when there is not much I can do about it, if trouble is spotted? Plus, whistle blowers are unfavorably looked upon in any business organization. The general attitude is, “If I did read the financial report and it was bad, that would be discouraging, maybe even mind blowing. It...
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...Financial Managers and Quality Initiatives in Health Care Post University Tina M Dixons Abstract This paper will discuss the importance of why financial manager should be concerned with quality initiatives in the health care setting. The topic will describe why quality initiatives are a key role in the financial success and failures in healthcare. Delivery of healthcare is synonymous with finance and the task related to quality improvement and quality initiatives that support accuracy in documentation and treatment. There is a strong correlation between providers and finance. Key words: Finance, Quality initiatives, Providers, Patient care. Financial Managers and Quality Initiatives It is clear that if good quality of services, successful outcomes and customer satisfaction are presented in a healthcare setting, then the financial stability may sustain. As financial managers collaborate to achieve health care quality, they know that there are several variable factors that must manifest in order to sustain and earn profits for their organization. Some variables include reduction in medical error, appropriate diagnostics, medical analysis, education programs, staff training, prevention, primary care, financial reimbursements, technological advancements and minimizing waste. Error and Accuracy Medscape reported that “Eight years ago, the Institute of Medicine's (IOM) report To Err is Human revealed that between 44,000 and 98,000 Americans...
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