Aim and objectives of different type of businesses Essay

When a business first starts trading it has few loyal customers and no reputation. The most likely objective for a start up business is simply survival. As the business grows and begins to win market share, the aim may shift towards expansion and increasing profits. Without aims and objectives there is no meaning to the business. The objective of both things to make business work even better than what it would normally do. An aim – Where the business wants to go in the future and its goals. It is a statement purpose. Like want to grow the business in to Europe Objectives- give the business a clearly defined target. Plans can then be made to achieve these targets. This can motivate the employees. It’s also enable the business to measure the progress towards its started aims The most effective business objectives meet the following criteria: Specific -clear and easy to understand. Measurable – i.e. able to be quantified. Achievable – possible to be reached. Realistic – not ‘pie in the sky’. Time bound – associated with a specific time period. An example of a SMART objective is to increase profits 10% within the next 12 months. SMART objectives allow the performance of business to be identified. Purpose- the purpose of having aim and objectives is to plan a way forward which will help them to establish the future state of works in other word, how their business will be in a few year’s time part of this handle is planning. So they have an uncertain concept that how they will achieve that certain goal and status in the business in few years time Another purpose of setting aims and objectives is to measure the performance, for example, how much profit they have made in the last year, so they know that they are doing better or worse than last year. They will provide information to those who are interested, which will lead to encourage them to do better. Break even- is the point at which cost or expenses and revenue are equal. For example, if a business sells fewer than 200 tables each month, it will make a loss, if it sells more, it will be a profit. With this information, the business managers will then need to see if they expect to be able to make and sell 200 tables per month. Survival- Diversifying- diversify your business by natural progression. For instance, if you sell men’s shirts, adding ties and cufflinks to the range are an obvious next step. More radically, you extend the brand by offering a much wider range of products that will nonetheless appeal to the same customers. Alternatively, you can use the strength of brand to move into new markets. Cost cutting- here is significant ways to save money without compromise: Don’t waste time- As a small business owner, you put in a lot of hours, but time is still a limited resource. Wasting time can cut into your sales and hurt your bottom line. As a general rule, anything that you can implement to save time will also save you money in the long run. Cut Out Paper- According to research by Xerox, about 40% of office paper is discarded within 24 hours of anyone printing on it. If you add up how much you spend on printing supplies, paper, and labor, you’ll quickly see that using electronic file storage can save you loads of money. Shop Around for Insurance – There are a lot of great ways to lower your insurance costs, but the most important step is to find and compare insurance policies. You should always be looking for the best rates out there, especially at renewal time. http://www.slideshare.net/tariqmehsud/nikes-presentation http://education.cambridge.org/media/576464/business_and_management_for_the_ib_diploma___cambridge_education___cambridge_university_press_samples.pdf

One Acre Fund

ONE ACRE FUND: CASE STUDY The scene is Bungoma, Kenya; Moises Postigo is a buyer interested in purchasing fertilizer on a large scale for his not-for-profit organization the One Acre Fund (OAF). OAF’s mission is to provide fertilizer to farmers â€Å"who have nothing† on a credit like system and when the farmers produce their crops a percentage of their supplus would be returned to OAF. Eventually the farmers would no longer need a â€Å"free hand out† and will be able to support themselves and their families without putting further strain on the government and the economy.When first looking at Kenya, Postigo had five different suppliers that all met certain criteria he had for doing business. He narrowed down the suppliers by contacting them and asking them for a RFQ. He then, with his knowledge of the market and his product as well as coming to the table prepared, negotiated the fertilizer to an acceptable price that could be offered to farmers enrolled in the OAF program. 1. Fertilizer is a commodity – why did Postigo spend so much time developing a relationship? Shouldn’t he have just set up an auction?Postigo did his homework and understood that developing and building relationships is a very important dimension in the Kenyan culture. â€Å"Kenyan culture’s emphasis on relationships and hierarchy stems from the importance of family. Kenya is a place where you need to get to know people†¦in a room with twenty-five people, you need to shake everyone’s hand† (Negotiating, pg 3). Postigo realized that most of his potential suppliers we located in Kenya. He also knew that if he could make a deal with a vendor in Kenya then the transportation costs would be much lower, thus creating a little more wiggle room for his BATNA.Postigo grasped the importance of building relationships from a different, more strategic purpose. OAF’s short-term plan incorporated rapid growth with regards to the small fam ily farms, which required rapid growth in their requested quantity of DAP. Postigo recognized that in building a relationship he was really opening up their opportunities for the future. If he could guarantee larger batch orders in the future, then he might be able to use that leverage to talk the supplier into lowering the current price.Postigo knew that establishing his desire for a strong relationship would pay off in multiple ways, both satisfying the cultural status quo while also putting a strategic plan into place to realize cost savings in the future. 2. What was Postigo’s BATNA to reaching a negotiated agreement with Dehvi Medji and Sons? During the negotiations for fertilizer, Postigo was concerned with three major issues: delivery date, price, and the ability for growth into the future. Keeping these things in mind, it seems that the best alternative to a negotiated agreement would have come from the current market prices of fertilizer in the area.If he was not abl e to come to an agreement with any of the suppliers and negotiate a better contract for OAF, then Postigo would simply buy the fertilizer at regular market prices. According to the research, in Nakuru, where both the cost of fertilizer and the cost of transportation were taken into consideration, a 50kg bag could be purchased for 4,000 Ksh (Negotiating, pg 6). This cost of 4,000 Ksh would have been the BATNA for Postigo’s negotiations; However, the BATNA could also have been found in one of the other vendors that were being looked into.If these other vendors had offered him a reliable price then that value could have been seen as Postigo’s BATNA. 3. Should Postigo have spent the time and money to meet face-to-face with all five potential vendors for the purpose of telling them about One Acre Fund, rather than sending them an e-mail? Working for a not-for-profit organization, Postigo understood that he needed to save money wherever possible. Meeting with the vendors in person might have had a larger effect on empathy throughout the negotiation. He might have been able use that to his advantage, but in the end, the benefit would not have outweighed the cost.Postigo contacted five vendors, four of which came back with bids. The first scenario where the cost outweighed the benefit: had he traveled to the fifth vendor, it would have been a complete waste of time and money. Secondly, as soon as Postigo informed the potential vendors of their expected delivery date, a second vendor dropped out of the running, stating that they would not be able to make the delivery date. By sacrificing the face-to-face meetings, Postigo saved a large amount of time and money while still attracting 3 potential vendors; eventually leading to a deal that, from his standpoint, was very successful. . Followup question: Did Postigo pay particular attention to the other party’s needs in the phone calls with Dehiv Medji? Postigo did a very good job of paying attention to Dehiv Medji’s needs throughout the negotiations. They spoke about the affect the Kenyan government might have on both parties, understanding the government subsidies could cripple both parties. He brought up Medji’s opportunity to grow and wanted to be involved in their growth, â€Å"he asked about growth prospects†¦indicated that the two organizations might grow together† (Negotiating, pg 7).Postigo negotiated in a fair and cooperative manner, providing flexibility on delivery dates and transportation costs. â€Å"One of the biggest appeals of Dehvi Medji to OAF was its willingness to fix a price in November for a January delivery† (Negotiating, pg 7). Postigo was very aware of the other party’s needs and acted accordingly. He felt obliged to make the negotiation a win-win scenario and when all was said and done, he did just that. 4. What do you think about Pastigo’s sharing information with Dehvi Medji about OAF’s strategy for the future?Was this a good thing to do? Is this a good way to develop a relationship? In the situation that Pastigo was in an open discussion about the long term goals of the not for profit OAF was a valid opening strategy. It gives Pastigo a fair amount of leverage epically since OAF is planning to have a large amount of growth in the near future, that information alone allows Pastigo to negotiate much harder for present prices with the perceived promise of future growth. It is also a valid and simple way for Pastigo to begin building a relationship with the supplier.By opening with a good amount of information, especially with a local supplier, OAF as an organization can leverage the fact that they are trying to grow the amount of fertilizer used by a large amount of farmers which is good for the fertilizer suppliers. This was also an efficient means to build the relationship the OAF was hoping to have with their future supplier, by showing that they were open and upfront with bo th the plans and goals of OAF any possible relationship would from more easily. All in all by being open from the beginning Pastigo put himself in a good position to conduct the negotiations. . If Dehvi Medji’s price had been good but not the best, would you still have recommended that Postigo try to negotiate with Dehvi Medji? As we have mentioned before, Postigo was concerned with three major issues: delivery date, price, and the ability for growth into the future. Taking into consideration all of these issues, it could be seen that Dehvi Medji met the other qualifications for a good supplier in that they could meet the proper delivery schedule in January and they were a small company that had the ability to grow alongside OAF going into the future.Price was only one of the concerns that Postigo was looking at. The case study goes on to state that â€Å"in previous fertilizer negotiations between OAF and Dehvi Medji, the company had settled for 10 percent off its initial o ffer† (negotiating, pg 7). This indicates that although the initial bid that Dehvi Medji produced might have not been the best, their company was proven to have wiggle room during the negotiations process and could possibly still be convinced to lower their price to become the best price.Although Dehvi Medji might not have had the best initial price coming out of the initial requests for proposals (RFPs), their initial price could be negotiated and they met the other requirements, delivery schedule and ability for growth in the future, that OAF was looking at. Our recommendation to Postigo would be to still enter the negotiation phase with Dehvi Medji, regardless of the initial price bid, in order to further scope out the qualifications of the supplier and possibly discover all of the benefits that they have to offer. . OAF’s founder, Andrew Youn, is a MBA. Given the importance of low-priced, good-quality fertilizer to his company’s ability to achieve its goals, should Youn be considering alternatives to buying from a handful of Kenyan wholesale suppliers? What might those alternatives be? The importance of low-priced, good-quality fertilizer was a major component to the success of the companies but it is doubtful that it was the only goal of the not for profit.The goal of the OAF is to help the local small plot farmers become more self-sufficient and by choosing local wholesalers over a foreign supplier can build the fertilizer industry in Kenya allowing local farmers to have better access even if the OAF was to leave the country. It is quite likely that Mr. Youn did consider other options during the start-up process but in the end decided local suppliers would be a better option. An option that they may considered would be using a foreign wholesaler and bulk ship the fertilizer to Kenya and then ship it to the warehouses to break down and disperse to the participating farmers.This option may have saved them enough money on the base produc t to offset the increase in shipping and handling cost to get the fertilizer into Kenya. This may not have been a viable option in this opening round of negotiation due to the limited amount of fertilizer the OAF was purchasing at the time. 7. Postigo informed the case writers that the Kenyan government did implement its program of buying fertilizer in bulk to distribute at reduced prices to farmers, but that this program did not really affect OAF farmers because they could not afford to travel to government depots and did not have the cash to buy or transport the fertilizer.However, this action by the Kenyan government might have secondary effects for OAF’s negotiations with fertilizer suppliers in the future. What do you think those secondary effects might be? There are a variety of secondary ramifications for the OAF when negotiating future fertilizer purchase form local suppliers due to the government subsidized supply. One obvious problem in the risk that the a current o r future supplier may not be able to stay competitive in the fertilizer market in Kenya and will go out of business, forcing the OAF to search elsewhere for their supply of fertilizer.Another less gloomy prospect is with the government subsidizing fertilizer in Kenya the OAF may have a better bargaining position with the local wholesalers, allowing the OAF to purchase more fertilizer with the same investment helping the program to expand faster. This choice by the Kenyan government may also allow the OAF to negotiate with the government to receive the discounted price and focus instead on the transport of the fertilizer from the government depots to the farmers who need it most. 8. In what way did Postigo use his awareness of hierarchy in Kenyan culture during his negotiations with Dehvi Medji?During the second round of negotiations which were exclusively with the Dehvi Medji firm the awareness of the hieratical culture of Kenya was used to help set a price from which Postigo could begin the round of negotiations. This was seen in the sentence on page seven of the case study where Pestigo from looking previous negotiations knew that Dehvi Medji sold for roughly ten percent less than their opening offer. This was an assumption made due to the fact that Postigo was working with decedent of the former managers who made this 10 present discount a way of business.There is also the fact the before the negotiators began discussing price Pestigo first discussed the increase in the price of fertilizer and the effects it was having of the OAF, the likely hood of government intervention, and finally the growth prospects of both the OAF and Dehvi Medji. Only after all of this opening information was shared were the negotiations for price and transportation brought into the negotiation. Both of these considerations made by Pestigo showed he was prepared to enter negotiations with Jiten Patel and allowed them both to come to an agreeable solution. 9.What do you see as the s trengths and weaknesses of Postigo’s negotiating strategy for fertilizer in 2007? Postigo had many strengths and weaknesses in his attempt of his first large acquisition of fertilizer for the OAF. His main strengths were the facts that he was knowledgeable about his product and the suppliers he was dealing with as well as the fact he was prepared going into the negotiation process. His main weakness included the fact that he had not built a relationship with his Kenyan suppliers knowing far in advance that that is an essential procedure in Kenyan business culture.He also failed to have realistic expectations when asking a smaller company like Delvi Medji and Sons to potentially supply such a large customer base. The fact that Postigo did not build a relationship could have resulted in Dehvi Medji and Sons’ Jiten patel(the supplier) agreeing with Postigo only to avoid confrontation knowing far in advance they would not be able to meet his needs. Postigo’s knowled ge of the wholesale prices as well as his market and expected forecast did allow him however, to accurately predict OAF’s growth and was contributed heavily to his success of getting the fertilizer under the market price of 3,263 Ksh/50kg bag.He was able to work the suppliers down through both price competition but more importantly by providing a â€Å"win-win† situation for both him and the supplier. His main incentive was by doing business with OAF the supplier would grow with the OAF as it expanded its market to 30,000 farmers. He in return expected a supplier to reduce their costs helping the OAF. Even though Postigo had some weaknesses in his overall negotiation strategy by not meeting face-to-face,In the end, Postigo successfully worked to an agreeable solution where both parties benefited in 2007.

Vacant Chapter 2 Window

I'm staring, which is something I don't make a habit of. Eye contact typically invites people into conversations, and I'm not a fan of chit-chat. I stand in the doorway with an awkward pause, like I'm unfamiliar with waving as an appropriate means to say hello. My pause before I answer her is a pace too long, and the situation is somewhat uncomfortable as I stand there waiting for her to offer up more information. More importantly, I want to know why she's knocking on my door, and I hope it's not so we can get to know each other. Since several more seconds pass without further exchange, I finally cave in and offer myself up. â€Å"Hey, I'm Ethan,† I say wanting to keep it simple. I don't want to get sucked into a conversation with her, but I don't want to be rude, either. She can tell I'm a little put out with her presence, so she gets right to the point. The last thing I need is an overly perky neighbor who thinks we're â€Å"pals.† â€Å"Sorry, I was just having trouble getting a window open. It's going to be a hot one, you know, and I don't have the electricity turned on yet. They want some freaking deposit since I don't have a credit history. It's like, ‘Hello, I'm living in a crappy house, in a crappy neighborhood. If I had good credit, I wouldn't be living here.' Anyway, I want to get the window open to get air moving through, and I think it's painted shut. I don't want to be all ‘damsel in distress,' but I can't pry the darn thing open†¦Ã¢â‚¬  My thoughts trail off and I realize this is the most anyone has said to me in years. Perky girl is still talking, but I'm continuously distracted by her mere presence and the fact that her chest spills over the top of her tank. She's pretty cute, but I try not to dwell on her appearance as lustful thoughts won't lead anywhere good. â€Å"So you think you could come help me?† I know I missed some information in there, but I'm not going to ask for clarification or for her to repeat it. â€Å"Sure, no problem.† I follow behind her, but at a safe distance. I don't want the offer of my help and me being polite to some girl mistaken for flirting. It sounds conceited, but it's happened before. It's better not to give them any sense of false hope. I mind my own business and live my life; today will be no exception. She shows me the window in question, and sure enough, it's painted shut. I roll my eyes at the incredibly inept and lazy maintenance people for doing a half-assed paint job. â€Å"Um, I'll be right back. I'll have to get something to cut this open.† I turn to head out her front door, but she stops me. â€Å"Oh, wait. Like a box cutter? I have one of those. I think the maintenance people left it here by mistake.† She rummages in a kitchen drawer then presents me with a paint covered box knife. As I work the window, she asks me several questions related to the area. My answers are succinct since I'm not really receptive to the Getting-to-Know-You game. The â€Å"Twenty Questions† moderator doesn't get the hint though, and keeps on with the game. â€Å"So, how long have you lived here?† â€Å"A few years.† â€Å"Do you know many of the neighbors?† â€Å"I don't talk to the neighbors much, so I don't know anything about them.† I'm hopeful my continued shortness helps her get the hint that I'm not interested in a conversation. â€Å"Wow, you're pretty quiet, huh?† â€Å"Yeah.† â€Å"So, what do you do for fun?† I'm caught off guard by her question. I can't recall when I've had fun, so I'm not sure how to respond. I stand up straight, rolling my shoulders back and craning my neck in a stretch, attempting to buy a little time for my answer. While I don't particularly care what this girl thinks of me, I don't want to come off like a total loser, either. â€Å"Look, I'm sorry,† she says. â€Å"I didn't mean to pry. I've bothered you enough this morning. You've been so nice, helping me out and all. I'm gonna†¦Ã¢â‚¬  she trails off and I go back to working the window, popping it open a few seconds later. â€Å"I'll see you around,† I tell her, raising the window to its fully open state. She quickly dismisses me with another small wave, and I leave to go back to my own little corner of the earth. Despite the fact that I've been in her unit for less than five minutes, it doesn't escape my notice that there's no furniture or a TV, just a mattress on the floor of her bedroom. Maybe the moving truck with her stuff hasn't arrived yet, I think to myself. In the back of my mind, I know there isn't more stuff coming. People like us don't have stuff or the need for moving trucks. I'm lying in bed, thinking about the stupid question she asked me. â€Å"What do you do for fun?† How could such a simple question send me into a tailspin? That's when I hear a whimper. It's been a while since anyone's lived next door, and the last guy who lived there was never home, so I'm used to quiet. The walls are thin in apartments like this, cheaply built and economically priced rental units. Much expense was spared in their construction. I'm certain we share no more than a few two-by-fours and two slabs of sheetrock as the wall. It doesn't provide any more privacy than that found between bedrooms in the same home instead of two separate residences. I turn my head, thinking it will improve my ability to discern what I think I'm hearing. It doesn't, but then I hear muted sobbing. That can only mean one thing – new neighbor girl is crying. I turn away, wanting the sound to stop; I don't want to be involved. The next morning shows no signs of life from my neighbor, but that's no surprise. The noise coming from her side of the duplex kept me up well into the night, so I'm sure she's sleeping in. I, on the other hand, take part in my free exercise routine – running. I do this early in the morning for two reasons: one, I avoid those who may feel the need to hassle me for money. They are not early risers, as hassling is a mid-morning and post-lunch activity. Two, it gets hot as fuck here in the summer, and running in 105 degree temperatures is just stupid. I crest the hill on my street, nearly completing my three miles, and see her setting out the trash. New girl is looking around nervously, probably in hopes of going undetected since she's barely dressed in her tiny shorts and tank top. It's not leaving a whole hell of a lot to the imagination, and my mind wanders as I catch a glimpse at her ass. I see her throw a couple of empty boxes to the curb then turn and rush inside. I'm close enough that I can see the blackened bottoms of her feet as she scurries inside, then wonder how often she goes without shoes. A few days pass before I see her again as I return from my run. This time she's leaving a few plastic grocery sacks out for the trash. Once again, she's dressed in the same tank and shorts she wore on Sunday. After my cool down stretch, I make my way inside and gather my things to shower. Only then does it occur to me that I haven't heard the water turn on in neighbor girl's unit at any point since she moved in, not even a toilet flush. The only sound I hear from her side of the wall is the crying each night. I recall her statement about not having electricity. I'm guessing she doesn't have the water turned on yet, either. A knot forms in my stomach. Don't get involved. Keep things simple. Take care of yourself! I can't help it and walk out my door, knocking on hers seconds later. It takes a moment before I realize I'm only wearing my shorts, but it's too late. She opens the door a crack and eyes me. â€Å"Ethan,† she greets, and then opens the door a little wider, looking around cautiously. â€Å"Emily, right?† â€Å"Yeah. What's up?† She's smiling again, just like when we met. â€Å"I noticed that you, um†¦don't have electricity yet, and you don't have water either, huh?† She bites the inside of her cheek nervously. â€Å"No.† Her reply is so small, just like she is, and I can tell she's embarrassed. â€Å"Come on,† I say, motioning for her to follow me. â€Å"You can shower and wash your clothes at my place. I pay a flat fee for the water, so you using it won't cost me any more money.† Don't get involved. Keep things simple. Take care of yourself! It's too late, though. I'm already involved. It's no longer simple, and for the first time ever, I'm offering to care for someone other than myself.

SFAS 154 - Accounting Changes and Error Corrections Assignment

SFAS 154 - Accounting Changes and Error Corrections - Assignment Example At times, it also happens that a change in the accounting policy or principle affects the consolidated financial statements of the group as well. So, SFAS 154 aims to highlight all of the above discussed issues in details and provide appropriate guidance as how to incorporate the effects of all those changes in the financial statements of the reporting entity. This article is structured in such a manner that first section describes the overview of SFAS 154 which includes the objective of its issuance as well as the scope of this standard. Next section focuses on recognition, measurement and disclosure requirements of SAFS 154. Third section highlights the comparison of SFAS 154 of FASB with IAS 8 of IASB i.e. a comparison between US GAAP and IFRS in respect of these two standards. An illustrated example is also provided after the comparison of the standards which is then followed by a conclusion which summarizes the whole article. Overview of SFAS 154 Objective Mainly the objective o f FASB to issue this standard is to bring more convergence with IASB towards the preparation, development and furnishing the financial statement as a high quality single set across the world (Deloitte, 2008). As IASB has issued IAS 8 on similar footings, therefore it is the intension of both accounting standard boards to bring more harmonized financial statements in most of the areas of accounting. ... The section â€Å"Accounting Changes† is further divided into three areas which are â€Å"Changes in Accounting Principle†, â€Å"Changes in Accounting Estimates† and lastly, â€Å"Changes in the Reporting Entity† (Financial Accounting Standard Board, 2009). Scope The scope of this standard covers three areas which are listed below (Financial Accounting Standard Board, 2009): 1. SFAS 154 is applicable for both profit making business organizations as well as not-for-profit organizations. In this standard both these kinds of organizations are referred to as â€Å"entities†. 2. Another application of SFAS 154 can be possible in case of summarized financial information which are primarily based upon the financial statements such that accounting changes are reflected in the accounting period in which those changes have arisen. 3. SFAS 154 also encompasses the other forms of financial statements which are prepared for some special purposes. Measurement, R ecognition and Disclosure Changes in Accounting Principles SFAS 154 provides specific guidelines to incorporate a change in the accounting principle. A change in the accounting principle is the change that has been made by FASB by making amendment, addition or deletion in the existing accounting standards issued by FASB (Financial Accounting Standard Board, 2009). FASB requires the entities to bring the effects of the changes in accounting principle retrospectively such that all of the previously issued financial statements need to be modified as a result of change in accounting principles (Deloitte, 2008). SFAS 154 also guides the entities in the situations where it is not practicable for the entities to bring the effects of the