Category: Business

Introduction

In the past, there has been no extensive study of entrepreneurs, and thus a general shortage of knowledge concerning what propelled entrepreneurs to success. Nevertheless, the recent concern in reviving an otherwise dormant field has changed the norms and the majority of business universities across the world currently offer entrepreneurship courses (Elyasi, Ghafourian, & Faramarzi, 2012, pp. 60-63).

Consequently, business experts have studied a lot regarding what to become a thriving entrepreneur. Even if nobody has established the ideal entrepreneurial profile, several characteristics have been noted to appear frequently. This paper discusses the success aspects of an entrepreneur based on a questionnaire of the features of entrepreneurs in Canada.

Fitting the profile of an entrepreneur

Derived from the survey outcomes, I think I satisfy an entrepreneurs profile. According to the results, a number of my factors of success fall below the ones taken to be average scores obtained by entrepreneurs. These factors are included in motivations.

On the other hand, some of my factors of success in aptitudes and attitudes reach the average scores achieved by entrepreneurs. Nevertheless, the simple fact of achieving or failing to achieve outcomes as per the ones of entrepreneurs is inadequate to point out the potential of an entrepreneur as many other aspects play a key role, comprising of timing, personal situations, environment, and experience.

However, the outcomes of the questionnaire will permit comparison of responses. Some of the things that allow me to satisfy the profile of an entrepreneur include self-control and self-confidence. At times, it can be easy to identify entrepreneurs by the proclamations they formulate (Abouzeedan, Hedner, & Klofsten, 2010, pp. 303-309). A dominant attribute of successful entrepreneurs is their conviction that they are better than their superiors and equals and thus manage their self-control.

Moreover, successful entrepreneurs have a tendency of being self-assured while being in control of their endeavors when they are operating and functioning alone. They deal with problems instantaneously with confidence while at the same time being unrelenting in their search of goals. The majority of them are at their finest in the face of difficulty, given that they prosper on their self-confidence.

Strengths & weaknesses

Strengths

Strengths could be employed to achieve a competitive advantage and hence require being nurtured. Some of my strengths include the following.

• Identified as market head
• Powerful administration team
• Proprietary expertise
• Sufficient financial resources

Weaknesses

Like the strengths, weaknesses could also be employed to attain competitive advantage, as they require being dealt with in order to reach the set goals. The following are some of my weaknesses.

1. Alteration in customer buying inclinations
2. Augmented regulation
3. Entry of aggressive competitors
4. Low motivation

Mitigating weaknesses to guarantee success

In a bid to curb the challenge posted by changing trends in customers purchasing behaviors, studying the market with the ability to recognize the way sales alterations arise is paramount in guaranteeing success of businesses, but is particularly significant for the ones looking to spread out.

Some other weaknesses to be cautious of include aggressive competitors and the likelihood of succumbing to them. Since many rivals are on the prowl and seeking to weaken or obliterate the small businesses, this aspect could leave an entrepreneur with the choice to merge with another business, purchase it, or vend to it in a bid to overcome the aggressive competition presented.

However, assuming that the business is not willing to merge, it could overcome competition with learning and overpowering the tactics of competitors. Overcoming the challenge of low motivation and much regulation could call for searching suitable advisers to provide aid in managing transactions, which shows dedication and illustrates that the entrepreneur has acquired expert perceptions necessary to warrant success (Elyasi, Ghafourian, & Faramarzi, 2012, pp. 64-66).

Major success aspects for an entrepreneur

Comprehensive knowledge

Triumphant entrepreneurs must understand complex circumstances that could comprise planning, laying down strategic choices, and operating on numerous business schemes concurrently. They must be farsighted and conscious of vital elements coupled with evaluating all possibilities to realize their business goals, while at the same time dedicating their energy to accomplishing tasks promptly (Elyasi, Ghafourian, & Faramarzi, 2012, pp. 67-69).

Conceptual capacity

Entrepreneurs must have the ability to recognize relationships easily amid complex conditions. They must spot problems and start working on their resolutions quicker than other individuals start. Successful entrepreneurs should not be wary of uncertainty and insecurity since they are used to tackling problems; in other words, they are proactive (Abouzeedan, Hedner, & Klofsten, 2010, pp. 310-313).

If it so happens that their resolution to a setback will not succeed for some valid cause, they will swiftly recognize a different problem solving advance.

Conclusion

Unlike in the past, recent concern in reviving the dormant field of entrepreneurship education has resulted to extensive study of entrepreneurs and the majority of business universities currently offer entrepreneurship courses.

Though nobody has established the ideal entrepreneurial profile, numerous characteristics come into view frequently. Some of the major success aspects for an entrepreneur include comprehensive knowledge and conceptual capacity. In conclusion, mitigating weaknesses and building on strengths are key aspects that could ensure competitive advantage.

References

Abouzeedan, A., Hedner, T., & Klofsten, M. (2010). Innovation and entrepreneurship-new themes for new times. Annals of Innovation & Entrepreneurship, 1(1), 303-313.

Elyasi, M., Ghafourian, S., & Faramarzi, M. (2012). Learning Sources and Methods Used by Famous Entrepreneurs: A Comparative Study about Three Entrepreneurs from Iran, Japan and United States of America. International Business Research, 5(9), 60-69.

Marketers must have a careful consideration in analyzing the behavior of consumers as they usually decline what seems to be a winning offer. The buying behavior is complicated as various factors influence it.

Understanding these behaviors is an important break through to the marketers. Consumer behavior is rationale and target oriented. Marketers may think that they have completely understood their consumers but the decisions to purchase seem to be irrational. What is perceived as an irrational behavior to a marketer is very rational to the buyer.

• The consumer is liberal.

The buyer is not obligated to consider the marketing strategies of the marketer. Consumers process information carefully and in most instances they have the upper hand in selecting the best product to choose from a variety of other available products. Consumer behavior is progressive. The consumer progresses to ensure that the products they get adequately satisfies their needs. Marketers are to come to terms with this process.

• Consumers differ in preference.

Individuals who have the same roots in terms of culture, rank in the society, and means of livelihood may depict very diverse lifestyles. A lifestyle is an individuals way of life as depicted in his or her actions, views, and interests. These diverse consumer lifestyles affect their purchasing power.

• The role that a consumer plays in the society affects his or her purchasing power.

An individual constitutes diverse groups such as family, unions, and associations. A persons task in each grouping is related to his or role and status in the particular group. A role is defined as a list of tasks that the individual is expected to accomplish according to the other people who directly or indirectly depends on either him or her.

• Consumer behavior is influenced by his or her financial status.

This greatly influences the buyers ultimate product choice and the decision to exchange his or her money for the particular commodity. The end users usually restrict expenses on the eating-places, entertainment, and holiday at the times they are experiencing financial constraints. They cut back on the kinds of expenditure they want to make. It is essential that marketers pay close attention to the flow in personal incomes and savings.

• Adaptation of products

It is essential for marketers to choose on the level to which they will modify their commodities and marketing strategies to fulfill the distinctive requirements of different end users in a variety of markets.

• The variance of international markets

Marketers can opt to standardize their commodities and for the reason of reducing the operation costs and benefit from economies of scale. However, modifying marketing strategies in each country gives rise to better products that adequately meets the needs of the local end users.

• Consumer behavior is strongly controlled by cultural diversities.

For example, in the West, an efficient products brand name will be brilliant and short to the point, suggesting the purpose of the commodity. However, the same product in Asia must have qualities of luck to fit in this culturally different market.

• Advertisement

Advertisement can change the behavior of a consumer. Advertising adds the appeal to the commodity hence enables it to get to the target end user. Advertising relay the information about a commodity to a consumer hence ease the process of transaction. The target audience gets the information about the commodity before making the final purchase decision.

• Trends in globalization and its influence on the behavior of consumers

The changes due to globalization have increased the exposure of the consumers to varied influences. These influences could arise from technological improvements. Motivating a consumer affects his or her purchasing ability

• Motivation

An individual usually has more than one need at a time. A number of needs are natural such as feeling of thirst and hunger while others are psychological such as want for recognition and satisfaction. Motivation often ignites the different needs of a consumer . Marketers often work on arousing this need in order to reach the consumers.

• The role of perception in consumer choices

Perception is the method through which individuals choose, categorize, and deduce information to come up with a significant view of life. An individual that has been stimulated is prepared to act. The action taken depends on how the individual perceives the situation.

• Learning and consumer behavior

The behavior of a person often changes after learning through experience. The use of efficient motivational techniques and different marketing strategies can make consumers to develop loyalty to similar brands if they like the utility they get from it as compared to dissimilar brands.

• Beliefs

These are mainly acquired through actions and learning routines. A belief refers to thoughts that an individual has formulated to represent something. If some beliefs about particular products are false, marketers often engage in campaigns to reverse these beliefs.

• Attitudes

Attitudes appertain to an individuals constant feelings and tendencies in relation to different objects and opinions. Attitudes places individuals in a fix situation of either loving or hating things, going towards them or getting away form them.

Marketers ought to understand the consumer behavior before embarking on selling their goods and services as the end users vary in many aspects of their purchasing behavior.

Introduction

A business idea is a thought or a collection of thoughts that entrepreneurs generate in mind for commercial purposes. If developed in a time when the demand of products or services is high, business ideas can be useful to a profitable business. There are various characteristics of a business idea.

It satisfies customers with needs or service. In addition, it is innovative, unique, clear focused, and profitable in the long run. In this context, there are ten business ideas with suggestions on their locations, descriptions and the reasons which have been proposed for their likelihood to survive in the proposed regions.

First idea: Abmilan Italian Restaurant

Starting a restaurant that offers a high quality Italian food at Abha in Saudi Arabia is a good business idea. This thought is innovative because there is no competition since there are no Italian Restaurants in this city. This location is a tourist attraction for many people in the Arab Gulf Countries. Moreover, the business will succeed because the Italian cuisine is regarded as the best food.

Second idea: Southern North HRS

The human resource solution offers headhunting office, manpower plan, HR strategic and consultations. There are no professional HRS offices in Saudi Arabia. Most of the companies get this service out of Saudi Arabia. Thus, it is costly for these companies to get the service. Starting at HRS in Riyadh, the capital city of Saudi Arabia, is a wise business idea that will lead to making huge profits within a very short time. The business idea is on the creative plane, and there is no doubt that the business will do well in the region.

Third idea: Middle Eastern Buffet

Locating a restaurant that offers buffet in Halifax, NS, Canada is a wise business thought. The restaurant will offer many Middle Eastern foods such as appetizers, main meals, dessert and coffee. In Halifax, the Arabic language is the most common after English. This is a clear indication that the restaurant will succeed because of the high population of Middle Eastern people in Halifax. There is no Middle Eastern restaurant offering buffet in Halifax. This increases the chances of the business to be successful.

Fourth idea: Malumaat ITS Company

In Arabic, the word Malumaat means information. Malamute ITS Company offers software solutions, computer technology consultancy, and technology services. This is offered to companies or government departments that need to create and build system. Starting a Malumaat ITS Company in Baghdad, Iraq is the best business idea for investors. Notably, the city presents a great future in this industry because the war affected the information technology.

Fifth idea: Fast Exchange Money

Fast Exchange Money offers money exchange for any country. Starting this business in Saudi Arabia airport and major hotels are a good business idea. The business will be successful because no hotel has this service in Saudi Arabia. Moreover, people in Saudi Arabia use cash more than plastic money because there are few of stores that serve as debit machine.

Sixth idea: F & T Fashion Style Online Store

F & T Fashion Style Online Store offers women and mens fashion clothes, shoes, accessories and wedding dresses. Starting F & T Fashion Style Online Store business in Jeddah, Saudi Arabia, is the best thought for investors because it has the biggest seaport in Saudi Arabia. Thus, it is easy to connect to Europe, which makes it easy to make imports. Women in Saudi Arabia spend heavily on fashion. Thus, this will be a great investment in this industry in Saudi Arabia.

Seventh idea: Leadership Training and Development College

Starting a college for leadership and training development in Riyadh, a capital city of Saudi Arabia, is an excellent business idea for investors because many colleges do not offer good programs. In addition, many companies send their employees outside Saudi Arabia to get a good training. This aspect will benefit the business by cutting costs. Offering special discounts for a group of people will attract learners to the college, thus leading to the success of the business.

Eighth idea: Deliver from the supermarket to the customers home

Through an online retail store, a customer can see the price and purchase the products through the online channel. The products are delivered from the supermarket to the customers home. Starting such a business in Riyadh, Saudi Arabia, is a good business idea. In this case, within Arabia, there is service delivery for grocery. However, there is no supermarket that offers an online shopping service. This idea is on a creative plane because there is no competition.

Ninth idea: ABC College

ABC College teaches Arabic to foreign people who want to speak Arabic. Starting ABC College in Riyadh, is a wise thought because there are many international workers who would like to learn Arabic while working to improve their communication skills. The probability of the business to succeed is too high.

Tenth idea: Real Estate Online

Real Estate Online offers a real estate online service that is updated daily. Starting Real Estate Online in Riyadh, Saudi Arabia is a wise business idea because there are a few websites that offer this service but do not update information daily.

Conclusion

A good business idea should be innovative and have a clear focus. It should also satisfy the need of customers. The idea should be unique and profitable in the long run. Saudi Arabia offers a wide range of business opportunities. Therefore, developing a business idea in the region is easy.

Workplace accidents are a major concern to food stores managers and their workers. More often, accidents result from wet flows, spills, and sharp cutleries. In all grocers, managers and safety managers supervise safety responsibilities. They are supposed to ensure that the safety requirements of the employees and the clients are fulfilled.

As such, managers and safety managers ensure that appropriate systems are put in place to enable employees verify safety hazards. Similarly, these officials ensure that all safety measures are upheld. Based on the above responsibilities, this article seeks to highlight how Pauls Grocer management team should organize its routine checkups and inspections, meet its inspection standards, and handle its spills.

In their inspection and spill programs, the grocers management team should identify regulations and recommendations that are applicable in their jurisdiction.

These requirements should aid the management team in coming up with the appropriate safety policies. Similarly, the organizations safety manager should coordinate outside and internal inspections. When the government or regulatory agencies are conducting outside inspections, organizations safety manager should accompany the inspectors to note down the violations and recommendations.

Similarly, during the inspections the safety manager should be ready to give explanations about any cases of dubious practices or equipments within the grocers premises. Thereafter, the safety manager should forward the necessary recommendations to the grocers management team. Equally, in the recommendations the safety manager should note down features pointed out by the inspectors that may require policy change.

Apart from the external inspections, Pauls Grocer should put in place an efficient internal inspection team. The internal inspection team can comprise of the grocers staff members or members of a corporate entity.

Since the grocers safety manager cannot provide the safety of the whole business premises alone, he or she should disseminate responsibilities to the subordinates. Through this, he or she should harmonize all the employees efforts. To achieve this, the safety manager should set up a safety committee to oversee the implementation of these in initiatives.

Similarly, the safety committee should hold meetings with the safety manager once in a week. During the meetings, they should review the previous weeks inspection reports, new safety requirements, safety suggestions, accidents, and any other violations. Similarly, during the meetings the members should be allowed to discuss safety suggestions. In general, the safety committee will be required to forward their inspection reports, spill reports, and recommendations from their fellow employees.

Through the safety committee, the grocers management team should encourage all their employees to have control over their work area. As such, employees should ensure that their working place is kept organized, free from spills, and that supplies are kept on the right shelves. Usually, large retail shops announce their safety sweeps to its customers and employees in time to avoid the inconveniences.

However, for Pauls Grocer, which operates for 24 hours, the announcements would not be necessary. Instead, the grocer should ensure that their cleaning staff conducts safety sweep once in a week. This operation should be conducted when the clients turnover is low between 8pm and 8am. To ensure regular spills are removed, the grocers management team should make sure their employees inspect the grocers pathways for spills and safety hazards every few minutes.

The grocers safety manager should note that a client or an employee requesting for a cleaning staff to clean spills is not appropriate. Therefore, every employee in the grocer should be trained to handle the spills while the cleaning staffs are being reached for help. Despite the fact that the grocer employs cleaning staffs, all the employees should be able to handle spills and other hazards, and should be ready to clean the spills when the cleaning agents are not available.

The number of individuals required to handle spills depends on the quantity of spills. Spills should be handled using appropriate equipments. When handling spills, employees should ensure that they wear protective clothing. In addition, the safety manager should ensure that spill station is set up within the grocer. The spill station should have the necessary cleaning equipments such as towels, mops, brooms, and cleaning solutions. Equally, the spill station should be accessible to all employees.

To be certain that all inspection and spill policies are met, safety manager should ensure that a log is maintained. A grocers log should indicate the intervals of internal inspections.

During the external inspections, a log will prove to the external inspectors that regular checkups, cleanups, handling spills, and other safety hazards are conducted in accordance with the safety requirements. Since all the employees would be required to handle spills occasionally, the grocers management should ensure that it trains its employees on inspection requirements and spill handling techniques.

The training programs should meet the standards set by the regulatory agencies. If the above proposals and policies are observed, Pauls Grocer will not only be able to avoid accidents related to spills, but will also be able to meet safety standards required by the government and local authorities.

The tourism industry in British Columbia has been growing rapidly over the past years thus making it quite possible for hotels within the hospitality industry such as Cortes In to enjoy more commercial success. As of the year 2000, the region had over 22 million visitors who raked in an amazing $ 10 million.

Additionally, the tourism mix of the district of British Columbia did not only come from locals but also from foreigners ensuring that demand is stable. Despite the fact that business opportunities did present themselves for those within the hospitality industry in Cortes Island, it apparently became difficult for those within the tourism industry especially inns such as The Inn on Cortes Island due to the threats on tourism industry that were brought by the 9-11-01 attack by terrorists that reduced tourist traffic.

Issues of human resource availability and skill levels of those employees expected to serve within the industry also made it hard for the industry to flourish due to the perception jobs within that industry did not pay well. Additionally, the outbreak of SARS and the west Nile virus made it hard for the tourism industry to flourish.

The Task environment within the Island was suitable and good for business considering that the industry raked in over $ 10billion annually. Vancouver was well known for its business expos and this had made British Columbia a respected destination in the tourism industry attracting millions of people especially during expos which brought the society together. The only form of political hostility arose from terrorism activities that followed 9-11 bombings.

The availability of websites, DVD/CD technology available to customers meant that the customer experience was maximized. The task environment was thus highly favorable due to the fairly good political, economic and socio-economic culture that was good for tourists arriving from local and international destinations.

The Hotel and hospitality industry within British Columbia was a free and fair industry in accordance with the principles of free market economy, meaning that just as Jonathan Armitage entered the industry since he had the capital, any other participant could to enter the industry.

This fact made the threat of entry quite high within the market. Due to the fact that there were other many similar Inns and resorts in the region, some of which were in the high end and low end of the market this meant that consumers had a wider range from which they could choose from. Thus, making the business environment even more competitive.

Hollyhock retreat resort is one such resort that offered camping facilities which can serve as a substitute for hotel rooms. Despite the unique ambience of the ICI, the presence of camping sites and Rustic dorm rooms have in some way increased the threat from substitute products because individuals who dont opt to sleep in rooms may go to tents hoping to get close to nature.

The product and service

The Inn at Cortes Island is an establishment that targeted mainly middle income earners who paid somewhat average fees to enjoy their services (the average fee per room is $ 225 and $ 110 per cabin). These prices were found to be suitable for middle income earners who frequently toured the Inn and recommended it to others.

The problem is that the price is too high for some target customers turning them away. The Inn had both rooms and cabin spaces facing the beach, Jacuzzi tubs, fireplaces, DVD/CD players for entertainment, and high quality linen in rooms, that were suitable for couples, tourists and even weeding events. Additionally, apart from offering sleep facilities the Inn also provides local gourmets and exclusive food.

The product design should also be differentiated for high end customers. The design of the room was quite cool because it was done by artists who ensured that earth tones were used to create an atmosphere of relaxation which was expected by the customers. In addition, the rooms and furniture ware fitted with high quality linen to ensure that the place looked good. The design of place has no weakness.

The Inn used its website as part of their promotion tool and thus designed it properly. Additionally, the hotel depended upon word of mouth to promote its brand.ICI management also hired A media consultancy farm to create publicity for them occasionally. The current promotion efforts are not enough and should be more vigorous.

Market segment

The intended market of The inn Cortes Island was tourists and locals who especially fell under the middle class bracket of the economy who were searching for a unique spot that had the best ambience.

The segmentation is good and highly attractive having no weakness. Other competitors within the Island were Hollyhock Retreat Resort and April Point, which provided high end services; also there were other many resorts and Inns in the Island which could provide services similar to ICIs thus making competition stiffer. Because the Inn did not offer high end services it is bit of a disappointment for customers with high end needs.

The competitive advantage of ICI was the Inn had unique ambience and design, a good website and world-class cooks together with the availability of capital to expand the business. The Inn serves the affluent middle class who need to run away from the busy urban environment and go to the Island to watch and enjoy nature. Customers visiting this inn usually wish to have some peace and spend time with their loved ones.

The technology

The availability of a beautifully designed website has made it quite easier for the Inn to access its clients and serve them better. Also other technologies such as the availability of DVD/CD players for entertainment have ensured that guests who visit the place are well catered for in terms of entertainment.

Management

Jonathan is the sole shareholder and CEO the Inn. He decided to hire someone who would take the position of a general manager to ensure a smoother day to day running of the organization. ICI has its organizational structure divided into four main functional divisions, which include the front desk, housekeeping, maintenance and grounds, and food services each of this functional area is headed by an individual manager.

At the beginning, the owner had decided to hire a mother and son team with the mother serving as the general manager while the son serving as the chief chef but the decision turned out to be a bad one the forcing the owner to employ a more experienced and professional general manager, Edward Bourgogne. Upon his arrival the general manager put in place new systems and brought in a new chief chef Jackie Newcome, a move that saw improvement in the relationship and quality of work in the Kitchen.

Investment-Pay Back Exit Plan

The construction of the Inn was made possible by the help of loans and the forecasted Revenues are expected to assist the shareholder to repay the loans. The management forecast expects that approximately 70% occupancy rate of the Cabin throughout the year will be needed in repaying the loan.

The bank current total loans have accumulated to $4.8 million, with the latest loan awarded to ICI being $1.8 million the current twelve-monthly principal and interest payments are expected to be around $38,700 per month, which will be spread across loan repayment schedule of 240 months.

The business expects to make revenues of $2.2milion and this is expected to increase by 10% within the following year although no profits are expected in first two years as the company is expected to start breaking even in the third year of its operations. This will ensure that the company repays its loans comfortably.

Tables

Table 1. The Business Environment

Table 2. Industry Conditions

Competitive Conditions

Key success factors

Table 3. Financial Size-Up

Table 4. Marketing Size-Up

Table 5. Operations Size-Up

Table 6. Human Resource Size-Up

Table 7. Technology Size-Up

Table 8. Expansion decision

Rationale and Risk Assessment

Introduction

Inventory has always been defined as the taking of stock for raw materials, supplier components, and works in process and even finished goods that appear at various points of production and logistics channel. Others define it as the listing of assets or any form of items for formal purposes.

Inventory involves several activities which among others include recording of items, time and even costs involved in the management of the listed items. The process of taking inventories involves a cost and that is why several methods of taking inventories exist and people adopt the different methods depending on the processes involved.

Process

Management problems involve decision making problems. The fact that companies have to acquire, allocate and control the factors of productions brings out the necessity for inventory management.

In order to improve the management of a business, sometimes it is necessary to change the inventory method so as to realize what you have not been achieving and the reasons behind. In order to reduce the inventories and thus the costs involved, it should be the role of the company management to ensure that the activities taking place in the business are geared towards achieving and meeting the customer needs without excess stocks being left unused.

The process of change of inventory can also be achieved through analysis of all the inventory items involved. With the goods in the inventory being important according to their contribution towards the company goals, the items which generate high returns should be given a higher priority compared to those with low returns.

The process of inventory can also be changed by classifying the inventory according to the bulkiness in order to be aware of the transport logistics that may be involved. This is due to the fact that different items require different transport means.

The inventory method can also be changed by adapting new, better, and improved demand forecasting methods. Better forecasting methods reduces variability in terms of the expected against actual sales. The management can also introduce inventory management software which, when data is fed to it, can predict all the inventory management that is involved.

By managers using this software, they are able to predict easily the fast moving inventories as well as the more profitable items in the company. Finally, the use of postponement methods is another way of improving and changing the inventory method. This process involves modifying or customizing products after the main manufacturing process has been completed then delay the configuration and distribution process to the time when the distribution cycle will be favorable.

Conclusion

When the management decides that the existing inventory method in use is not serving the business right, then a process of changing the inventory begins. From the study we can conclude that the process of inventory change can be brought about by the desire to reduce the inventory so that no excess inventories are left idle.

The desire to introduce better forecasting methods in order to ensure the business gains optimally from the inventory is another reason why the inventory process might be changed. Another reason why change of inventory might be necessary is if the business plans to delay the configuration and the distribution process so that to ensure the time for release will be favorable and this can force also the change in the inventory process.

Introduction

All business organizations have different methods of valuing their stock. This is aimed at ensuring that the right price is used in issuing stock. For instance, it will not be appropriate for a firm to make losses by issuing stock at a lower price than purchasing price.

Besides, a business organization has to decide on the method of inventory valuation. This is aimed at attracting a monetary value in the store. This is useful in costing output, state costing and decision making processes. Thus, this paper will highlight some of the methods used in valuing inventories.

First in first out (FIFO)

This is an inventory method that is used to value stock based on the assumption of first in first out. Stock that is purchased first is the one that is issued first. The price of the inventory issued is determined by the price of the first stock. In addition, the value closing stock is done at the latest cost.

This method has many advantages. This has facilitated its increased use in many firms. For instance, it is a realistic system or method of evaluation. Here, the oldest items are issued first followed by the newest items. Furthermore, the methods calculations are easy whenever there are no fluctuations in the price of materials.

This method ensures that the closing stock value reflects the latest cost (Khan & Jain, 2008). Thus, it reflects the current market values relating to the product of an organization. What is more, this method is accepted by many tax authorities because of its consistency with accounting concepts. For instance, it complies with accounting principles such as IAS and IFRS.

Last in first out (LIFO) method

Here, the stock purchased last is issued first. This method expects stock valuation to be based on the price ruling on the acquisition of the preceding stock. This has seen its application and acceptance by many tax authorities (Epstein, Nach & Bragg, 2009). Besides, this method shows consistency with the accounting practice.

Thus, a business organization or firm will choose this method based on its main advantages. For instance, product costs are based on the current market prices. This makes the method realistic and applicable in accounting practices. Another reason for the use of this method is the charge tagged on products. In fact, the charge is closely related to the current price levels.

Weighted Average Method

This method applies the concept of weighted average to facilitate valuation of stock. It encompasses recalculation of the issue price after receipt of each stock. It also takes into account the quantities and the money of the stocks received. In fact, stock used, or unused is determined by the average price per unit. The average price per unit is calculated by taking the total value of the stock and dividing it by the available units.

Specific Identification Method

Here, materials issued are priced at their actual acquisition price. Thus, it involves the classification of each lot purchased by the organization. This method is straightforward but, time-consuming (Porter & Norton, 2011). It requires staff at the store to keep tags on the stock so that identification is easy.

Conclusion

In summary, it is evident that accounting for merchandise inventory is done differently. Firms or business organizations will apply methods that are considered to be convenient. Besides, they will use methods that facilitate efficiency and effectiveness in achieving organizational goals and targets. Therefore, the method applied should show consistency with the accounting principle or concepts.

References

Epstein, B. J., Nach, R., & Bragg, S. M. (2009). Wiley GAAP 2010: Interpretation and application of generally accepted accounting principles. Hoboken, N.J: Wiley.

Khan, M. Y., & Jain, P. K. (2008). Cost accounting and financial management for CA Professional Competence Examination. New Delhi: Tata McGraw-Hill Publishing Company Ltd.

Porter, G. A., & Norton, C. L. (2011). Financial accounting: The impact on decision makers. Australia: South-Western Cengage Learning.

Background

In the history of Australia, the industrial relations system has been based on the determination of the employees wage rates. In fact, the workplace relations system embraced by Australia was dissimilar from those adopted by developed nations. The system often incorporated enforced arbitration.

Under the Australian workplace system, every workforce had the lowest remuneration payment rate as well as further employment provisions that were defined in the awards. Despite all the stipulations, the last few years saw the emergence of three key legislative amendments in workplace or industrial relations system of Australia. The legislative changes included the 2009 Fair Work Act, the 2008 Act on Transition to Advancement with Equality, and the 2005 Work Choices Bylaw (AWR).

From the fiscal year 2006 to the financial year 2008, the 2005 Work Choices Act also known as the Amendments on Workplace Relations governed each person who was working in a company operated under the Territories, Victoria, or Commonwealth authorities. In total, it added up to 80.0% of employees in Australia. Besides, every worker operating under the Work Choices Act had his or her employment conditions and remuneration package managed by the Australian Commission of Fair Pay (ACFP).

Peetz (2007) considered the Act as the most radical amendment in the Australian Industrial Relations (IR) legislation. The major amendments in the legislation incorporated the decrease in the total necessary work status to five conditions, the inclusion of AWAs (the Australia Workplace Agreement), and the eradication of No Disadvantage Test.

Nonetheless, the 2009 Fair Work Act sets out the most recent amendments in the Australian workplace conditions. The novel bylaw became enforceable since July of the fiscal 2009. In fact, this bylaw aimed at restoring the workers negotiation influence as well as safeguarding the workforce based on their good faith negotiation condition.

The transition from Work Choices to Fair Work Australia

In terms of employment protection, Australia was ranked number twenty-two out of all the twenty-eight OECD nations prior to the implementation of the Work Choices Act. After the Act was enforced, the country dropped to number twenty-five in matters relating to the protection of employment. In fact, the reason for the drop in position initially held was loss in workforce choices and lack of free bargaining power.

For example, the Australian workers were compelled by their employers to sign the AWA (the Australian Workplace Agreement) as a service or employment provision. Furthermore, based on the operational reasons such as technological, structural, or economic, the employees were sacked without notice (Workplace Express, 2006).

As a result, the Australian employers had every reason to re-hire workforces and compel them to work under poor conditions while paying them very low wage rates, as was witnessed in Cowra Abbatoir case.

Whereas the Australian administration asserted that the Work Choice could increase the number of employment opportunities, augment the wage rates, and improve the economic status, the Act generated negative impacts on the Australian economy. For instance, Work Choices Act hardly solved the economic challenges that Australia faced during that time. The challenges encountered by Australia are as listed and discussed below:

Improving the standards of living

In the previous years, the Australian Commission of Fair Pay only offered nominal wage increment to the employees and declined to award salary increase in the fiscal 2009. Besides, the one and half years gap amid the ACFP initial decision and the Australian Commission of Industrial Relations final decision implied that the actual earning rate for the employees on the grant salary had to decrease (Workplace Express, 2006).

After the No Disadvantage Test was abolished, the grant salary formed the foundation for the employment settings and salary rates for any worker employed under the joint accord and the AWA. Employees who shifted to AWAs from the joint accord became worse off since the state hardly fulfilled the salary increment pledge it proposed to offer under the Work Choices Act (Peetz 2007).

Provided the workers unions represented any worker employed under the joint accord stipulated in the Work Choice Act, such an employee was bound to get averagely 3.90% or 3.60% annual salary increment. However, workers who signed the Australia Workplace Agreement only received annual salary increment of 2.20% (Australian Bureau of Statistics, 2009).

This implied that the negotiating power of employees was determined by their unity, though the Work Choice Act reduced the intervention by third parties and the workforces solidarity. The total income of employees significantly declined due to salary blow caused by Work Choices.

Total national income accruing from wages

Sourced from ABS (2009)

From the diagram above, the overall salary share factor declined to 53.30% from 54.20% in the fiscal 2008 and 2005 respectively. When compared to the 1983 figure of 61.10%, these levels are considerably low. During Howard reign in the fiscal 1997, the country recorded 56.20% stability rate though a stable decline was reported between the fiscal 2005 and 2008. However, the revenue-profit allocation factor improved to 26.50% from 22.70% in 2008 and 1997 (Australian Bureau of Statistics, 2009).

The protected award stipulations in the AWAs were also reduced including reductions in rest breaks, public holiday wages, fiscal allowances, overtime loading, penalty rates, and shift-work loading. Thus, Work Choices was not friendly to the families as it denied them annual leave, and paid maternity leave. Reductions in the employment conditions, salary packages, and increased unfair dismissal implied that workers could not pay debts and mortgages hence causing monetary catastrophe in the Australian families.

Conquering the shortage of skills

The unfair employee discharge laws were introduced by the Australian administration in the fiscal 1994. The hiring companies by then claimed that provided there were no penalties imposed on the employees, more workforces could be employed if the employers desired to sack those already hired.

However, the employment rate grew to 3.90% in 1994 after the introduction of the unfair dismissal Act (Australian Bureau of Statistics, 2009). A 2.60% decrease in the growth of employment was reported after the abolition of the unfair discharge bylaws. Instead of creating additional jobs, the abolition of this Act curtailed the employment growth rate. The dearth of skills was equally not reduced by the Work Choices Act, which attempted to encourage school-founded apprenticeship.

In fact, increasing the number of educated employees hardly translated into augmenting the quantity of labour supply. The major setback associated with lack of skills and knowledge is how an employment opportunity attracted workers. Hence, the employment conditions and better wage rates are part of the resolutions to the emerging challenges, but Work Choices hardly incorporated these measures.

Enhancing the productivity of Australia

With respect to production, it is difficult to prove that the productivity of Australia might be increased through decentralized salary fixing systems.

From the above diagram, it is clear that the productivity of labour will increase with increment in the level of award reliance. This implies that the phenomenon of increasing the economic productivity of labour is not yet achieved (Peetz, 2007). In the fiscal 2006, out of thirty-two nations, it was reported that the growth of labour productivity in Australia could be ranked number twenty-three (Australian Chamber of Commerce and Industry, 2004).

The 2009 Fair Work Act: The Provisions and Key Features of the Act

After the realization that the Work Choices Act generated negative economic impacts, the Australian government enacted the 2009 Fair Work Act to denote the amendments made in the industrial relations bylaws. Starting from July 1, 2009, the newly enacted bylaw had become operational and enforceable.

The Act was mainly aimed at restoring the workforce negotiation power while provisions were incorporated to ensure that the good faith negotiation and workers needs are generally protected. The two major amendments that continued from the 2008 Act on Transition to Onward with Equality included the No Disadvantage Test institution and AWAs eradication.

Further provisions made in this Act included setting out all the employment circumstances and workers salaries under the Modern Award or under an agreement instigating from the financial year 2010. Moreover, every accord was expected to go through the No Disadvantage Test called BOOT (Better-Off-Overall-Test). The provisions were supposed to warrant that all employees working under a particular accord were generally well off compared to those incorporated in the Modern Award.

The key features of the 2009 Fair Work Act included:

1. Three agreements.
2. Instituting unfair dismissal.
3. Offering negotiation assistance to the employees.
4. Enhancing the protection or safety net.
5. Establishing three Australian Fair Work Institutions.

The 2009 Fair Work Act Processes

Instituting unfair dismissal

It was impossible to make unjust firing claims except when the employee worked for a company with more than one hundred employees for approximately twelve months. This condition was under the provision of Work Choices. More than 98.0% of all corporations listed under the private sector were affected following the elimination of the protection of unjust discharge.

However, unjust sacking bylaws protected numerous circumstances and several employees from dismal after its reinstatement under the 2009 Fair Work bylaw. Currently, it is possible for a worker to make claims for unjust firing if it was not a case of sincere sacking, not in harmony with the code of just firing, and irrational, unjust, or harsh (Fair Work Australia, 2010).

In fact, a minimum of twelve months in service in a small firm and six months in a large firm enables them to submit claims. A claim can be made if a small firm is defined as a business without more than fifteen permanent employees unlike in the previous Work Choices that stipulated one hundred permanent employees. Nevertheless, the employees cannot make claims if the revenue is more than 108,250 dollars and are not covered by the Modern Accord, Award or if they have worked for less than the stated periods.

Therefore, a corporation must provide genuine reasons why the employee might be at jeopardy of being sacked in order to offer further protections for the employees. Hence, this intention must be established on the employees capability to complete the assignments. At least operational reasons and verbal warnings must be provided to the responsible authority (Fair Work Australia, 2010).

The accord in Act

The human resources who are out of the contemporary reward coverage will have their situation for service and expenses set in one of the three accords under the 2009 Act of Fair Work. According to Fair Work Australia (2010), the agreements include Greenfields Accords, Multi-enterprise Accords, and Single-enterprise accord.

The Modern Awards

The mainstreams of Modern Awards have provisions for transition that are distributed across five years plan commencing from the year 2010. Therefore, in phasing will occur at twenty percent. Conversely, there will be a progressive phase-in the reduction if the grown-up earnings charge under Modern Award is lower than the earnings in the pre-existing award.

Thus, employees in similar industries and profession could be on a diverse payment arrangement. Nonetheless, the reduction in the disposable workers pay is not the purpose for introducing the modern award as specified by the 2010 Australian Fair Work.

The government has initiated orders in the take home earnings to make sure that payment reduction does not occur. In any case, the employees experience reduction in their pay for equivalent refurbished periods, the union, or the employee can justify this in script to the Australian Fair Work. Thus, consideration of whether the reduction is insignificant or minor and if the reimbursement has been made to the workers is executed by FWA (Fair Work Australia, 2010).

The agreements for enterprise negotiation

The organization needs to pass the Better-off-Overall-Test, ensure there are procedures for row resolution, contain suppleness and conference clauses, and follow the pre-approval procedure for the Australian Fair Work to pass the Enterprise Negotiation Accord.

The recent McDonalds high profile case is a significance of the scrutiny of Enterprise Negotiation Accord by the Australian Fair Work. The Australian Fair Work declined to pass the Enterprise Negotiation Accord even though the Superstore Distributive and the Allied Staff Unions endorsed McDonalds Australia Enterprise Accord 2009.

In support of the FAW, McKenna, an administrator, claimed that McDonalds failed to meet the pre-approval procedures and all other required standards. The Australian Fair Work then argued that McDonalds botched to give all the employees a duplicate of the NES and the notification about polling on the accord.

Another rejection of the Enterprise Negotiation Accord was due to an effort by McDonald to compensate the Queensland employees with lowest state earnings for loss of numerous circumstances and disbursing the personnel to work in Territories with no fine charges thus, diminishing their hourly salaries by 20.0% (Fair Work Australia, 2010).

There is no warranty that employees are better off while moving from one accord to another. However, Enterprise Negotiation Accord ought to pass the BOOT. In fact, the agreement will make sure that under the Enterprise Negotiation Accord the employees are hardly worse off compared to the Modern Award. Actually, through the power of negotiation, when moving from one agreement to the other, several employees their mislay prerogatives and pay (Fair Work Australia, 2010).

The Institutions of Australias IR system and their roles

The 2009 Fair Work Act established three Industrial Relations Institutions in Australia. The institutions included:

1. The Federal Magistrates and Federal Court Fair Work Divisions.
2. The Fair Work Ombudsman Office.
3. The Australian Fair Work.

The 2009 Fair Work Act established the Fair Work and the General Divisions. The dissections were charged with accountability of settling rows that concern letdown to adhere to NES stipulationsor the rewards. The Divisions equally practiced the court powers involving claims of $20,000 for unjust firing.

The institution also uses proceedings from the courts in enforcing responsibilities and constitutional rights. Finally, the Australian Fair Work, which replaced various agencies namely the Workplace Authority, AFPC, and AIRC, is a sovereign entity expected to act fairly, efficiently, and swiftly. This institution adjusts and stipulates the nominal pay rates, intervenes and resolves rows, orders for good faith negotiations, endorses unjust discharge and employment agreements, as well as appraises awards.

The implications of the Act

The Awards of the present

Despite being initiated in 2010, most contemporary rewards have setting that are intermediary and which are scattered across a phase of five years. Given that the launch happens in a 20.0% growth, the HR and planners will be obliged to adjust the hourly wage rates due to the progressive phasing in. According to Fair Work Australia (2010), planners and HR managers will have to make different payment schedules for employees in one industry or similar occupation.

The EBA (Enterprise Bargaining Agreements)

The 2009 Fair Work Act requires the EBA to be carefully scrutinized more than it was previously done. The managers and planners are obliged to pass the BOOT, ensure that there are processes for dispute resolutions, there are consultation and flexibility clauses, and all the pre-endorsement procedures are duly followed.

References

Australian Bureau of Statistics (ABS), 2009, Australian national accounts: national income, expenditure and product, cat No. 5206.0, Australian Bureau of Statistics, Canberra, Australia.

Australian Chamber of Commerce and Industry (ACCI) 2004, ACCI submission2005 safety net review, ACCI, Canberra, Australia.

Fair Work Australia 2010, Fair work Australia, Commonwealth of Australia, Canberra. Web.

Peetz, D 2007, Assessing the impact of work choices one year on, Industrial Relations Victoria, Melbourne. Web.

Workplace Express 2006, Harper downplays impact of minimum wage rise, looks for jobs growth, Workplace Express.

1. Karl Wiig is a very important figure in the terrain of knowledge management (KM) as he developed one of the central KM cycles and models. This researcher claimed that knowledge is essential in making thoughtful and intellectual decisions. Moreover, Wiig noted that knowledge management is important in all spheres of human life.

Wiigs KM cycle is precise and can be easily applicable in business. Thus, the researcher identifies four major stages: building, holding, pooling and applying knowledge. Compared to other cycles WIigs cycle is very laconic, which makes it clear and easy-to-use. Wiig also claimed that the use of knowledge should be organized. Moreover, the researcher stressed that knowledge should be organized in accordance with the use of knowledge.

Wiig also developed a detailed KM matrix that helps understand the very nature of knowledge, which, in its turn, is essential to be able to manage knowledge. Moreover, the researcher developed degrees of internalization which is a step forward to understanding the exact ways to manage knowledge. Basically, Wiig described KM from different perspectives and revealed possible ways to use it effectively in business. Therefore, the researcher contributed greatly to KM.

2. There is no generally accepted definition of what knowledge management is. Practitioners tend to provide a variety of definitions. However, it is possible to note that all these definitions have some key points in common.

Thus, knowledge management focuses on tacit and explicit forms of knowledge and has an aim to add value to an organization. Thus, researchers admit that there are two type of knowledge, i.e. tacit and explicit. It is also accepted that knowledge should be used in order to help organizations develop. This can be regarded as key points in defining knowledge management.

3. There are quite different perspectives on the origins of KM. Many researchers claim that knowledge management has been in human societies from time immemorial. Thus, researchers stress that major KM techniques were used in pre-historic times when people accumulated and distributed (or passed) knowledge to help community develop. Some researchers claim that KM evolved in times of the Industrial Revolution.

Thus, invention of printing and invention of a variety of tools to spread knowledge are seen as first steps of KM. Some note that KM is associated with the end of the twentieth century when people advanced in computing. All these ideas are quite plausible. However, to be more exact, it is necessary to state that KM developed within the area of management. The term appeared in the 1990s and became widespread at once.

4. Researchers identify three generations of KM. The first generation focused on storing information. People had a dilemma which is illustrated with the quote if only we knew what we know (as cited in Dalkir, 2005, p. 19). People wanted to understand what exactly they know and how to store information available. When people learned how to accumulate and store information, they faced another dilemma.

There was a lot of information and it became unclear who had information. Thus, the second generation of KM focused on people. It was important to understand who needed information and who had it. Thus, the third generation is preoccupied with development of effective ways to distribute information. Now people focus on the ways to use information so that organizations and communities can benefit from it.

Reference List

Dalkir, K. (2005). Knowledge management in theory and practice. Burlington, MA: Elsevier.

Although the main objective of business organizations is making profits, it is in the interest of any business organization to observe high levels of ethical conduct. Many organizations have, in the past, set precedents of how unethical behaviour has detrimental effects on the welfare of the organizations.

Time has proven that companies that do not value Corporate Social Responsibility (CSR) are disadvantaged to a greater extent than their socially responsible counterparts. Thus it is clear that although social corporate responsibility is viewed to be for the benefit of the community, it arguably benefits the organization that practises it more than the community in which it is implemented.

The area of concentration of social responsibility programs depend on the needs of the surrounding community and the operations of the organization (Kotler, 2005, p. 20). This paper highlights health, environment and living standards as the key areas that need to be addressed by organizations in the manufacturing and service provision industries.

It is of great essence for any organization to operate in a way that safeguards the health of its customers and the surrounding community. Indubitably, any customer prioritizes his/her health in purchasing products. This implies that any company or organization that supports the health of its customers will attract a large number of customers (Thompson, 2005, p. 1).

This undoubtedly translates to greater revenue and less expenses since more customers mean more sales and thus more revenue is generated. On the other hand, more customers mean that less money will be spent on advertising and uncooperative consumer behaviour.

For instance, a food manufacturing company will have many consumers purchasing their products if the products are manufactured in a healthy way (Werther, 2006, p. 13). This could be in terms of the level of cleanliness in the company, the ingredients that the company use to make their products and so forth. With this kind of a discussion, one wonders why some companies are still disregarding CSR. Some companies and organizations disregard CSR because it has some downfalls.

During inception of companies and business organizations, it is hardly possible to engage in CSR since most resources are normally dedicated to the establishment of the foundations of the organization. Such organizations can however exercise CSR by offering quality products and services to their customers (Responsible Industry, 2006, p. 1). Thus health is a component of CSR that can be easily upheld by virtually all organizations.

Another important component of CSR is the preservation of the environment. This is mostly a challenge to companies in the manufacturing sector although it also affects the service provision industry. There are a myriad of reasons why companies should do their best to operate in an environmentally friendly way. First of all, the long term effects of environmental degradation affect every person (Maxwell, 2005, p. 34).

One of such effects is the problem of global warming which results in scarcity of resources and gives companies and organizations challenges in finding raw materials and also leads to large costs. Additionally, if a company fails to operate in a socially responsible manner, its goodwill could be affected. This will lead to a bad reputation that will make it lose customers and prospective shareholders.

Failing to operate in an environmentally friendly manner may also lead to collisions of an organization with the authorities and thus valuable time which could be used to generate revenue will be wasted (Hooker, 2003, p. 1). Despite the dire need for organizations to operate in an environmentally friendly way, people should not misuse the fact to voice out unfair and malicious claims to organizations.

This is because unethical competitors have in the past used the excuse of environmental conservation to fight companies that are environmentally conscious in their operations. Thus we should all take responsibility and conduct fair advocacy for environmental conservation as companies strive to operate in an environmentally friendly manner.

Among the various areas that Corporate Social Responsibility addresses is the improvement of the living standards of the surrounding community. Organizations therefore have a moral responsibility to uplift the living standards of their customers and the surrounding community in general in order for them to make a positive impact on the people to whom they owe their success.

This is mainly achieved through the offering of quality products and services at fair prices and involvement in charity. Most companies therefore have policies of giving back to the community in which they participate in events meant to improve the living standards of the communities they serve (Fieser, 2007, p. 1).

For instance, an organization may decide to construct a playing field for the community it serves in an effort to give back to the community. This will undoubtedly have a positive impact on the standard of living of the community since the youth will have something to do during their leisure time and thus they will not indulge in negative activities like abusing of drugs, immorality or formation of gangs.

This way the youth will grow to be more responsible adults and thus their standards of living will be improved. The stated facts are despite of the fact that improvement of the standards of living of communities or consumers of goods may prove to be a challenging task. This is because some consumers may be very resistant to change for a variety of reasons. For instance, a company may offer to raise the standards of living of small scale businessmen by offering them custom software for their businesses (Banerjee, 2007, p. 17).

This may be faced with a lot of resistance from some of the businessmen since they are used to managing their businesses without the help of software. This is often one of the challenges facing companies who want to successfully apply Corporate Social Responsibility.

As it has been evidenced in the discussion above, Corporate Social Responsibility is very important for the success of any organization. It is clear that among the areas that CSR impacts, health, the environment and living standards are the most important.

The choice of one or more of the three mentioned areas of CSR depends on the industry that an organization is in and the kind of community it deals with. It is thus the responsibility of organizations to evaluate themselves and see which areas of Corporate Social Responsibility they can make the greatest impact (Widmann, 2010, p. 1).

This is because, as it has been shown, CSR is more beneficial to the organization that practices it than the community in which it is implemented. This is because of the aforementioned ability of Corporate Social Responsibility to grow the client base of organizations and its ability to increase organizational revenue for companies that practice it (Carmichael, 1995, p. 71).

Bibliography

Banerjee, B. (2007). Corporate Social Responsibility: the good, the bad and the ugly. California. Wadsworth Publishing.

Carmichael, S. (1995). Business ethics: the new bottom line. New York. Wadsworth Publishing.

Fieser, J. (2007). Business Ethics. Web.

Hooker, J. (2003). Why Business Ethics. Web.

Kotler, P. (2005). Corporate Social Responsibility. London. McMillan Publishers.

Maxwell, J. (2005). Theres no such a thing as business ethics. New Jersey. Barnes & Noble.

Responsible Industry. (2006). Corporate Social Responsibility (CSR) is good for society, the environment and business. That is why the European Commission is working to promote it in various industrial sectors. Web.

Thompson, J. (2005). The importance of Corporate Social Responsibility. Web.

Werther, B. (2006). Strategic Corporate Social Responsibility. New York. Barnes & Noble.

Widmann, K. (2010). Independent study reveals real-world results of opportunity collaboration. Web.