Starbucks Structure

Considering that employees working with Starbucks form the vital core of the company’s success in terms of selling the company’s image to the general public and performing the day-to-day operations, there is the need for the company to hire people who can maintain positive interactions with customers.Advertising We will write a custom essay sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More This can be achieved through a rigorous process entailing job analysis, job specification, and job description by the human resource department. For instance, for Baristas (bar persons), the following should form part of their job specifications and descriptions: Job Specifications; Candidates eligible for the position of baristas will possess the following skills, knowledge, and abilities; Knowledge of different brands of coffee, Be eager to learn new concepts, Ability to learn the art of coffee brewing, Be s elf-motivated, creative, adaptable, team-players, and passionate, and Ability to maintain a large array of regular customers Job Descriptions: Baristas will be charged with the following duties and responsibilities; Brewing and serving coffee to the customers in real-time, Receiving and responding to customer needs/orders quickly, Reporting to their immediate supervisors on issues regarding customer complaints and preferences, and Helping in designing strategies to address customer issues particularly complaints and customer preferences. In a functional organization, work should be delegated to different departments in order to reduce confusion and ensure that work efficiency is maintained. This forms the essence of organizational departmentalization. Therefore, the most appropriate form of departmentalization suitable for Starbucks is product-service departmentalization. Under this form of sub-dividing work into respective departments, different products or services are assigned to specific departments and personnel. As a result, products or services with unique demands and customer preferences are given the maximum attention (Robins Coulter, 1999). Product-service departmentalization is very important for Starbucks considering the range of products the company offers including different brands of coffees such as coffee mocha, espresso, and cappuccino among others. The wide product range is coupled with unique customer services such as interior designs, which encourage different customer behaviors and conduct (Reilly, Minnick, Baack, 2011). Besides, Starbucks’ cafes are located in different areas, and thus it is difficult to adopt other forms of departmentalization. Hence, in order for the products and services offered by Starbucks to grow and prosper relative to customer needs and preferences, there is the need to give more attention to each product or service independently.Advertising Looking for essay on business economics? Let's see if w e can help you! Get your first paper with 15% OFF Learn More As for stores offering food products and lunch, it is imperative for such stores to adopt the same form of departmentalization. As noted in the above discussions, unique products and services require more attention in order to maintain growth and prosperity among customers. It is also to be expected that stores offering food products and lunch have a variety of products and services some of which are universal while others are unique in many aspects. Therefore, it is important to organize such stores into product-specific departments to ensure timely response to customer needs and preferences (Robins Coulter, 1999). From the look of things, it is apparent that Starbucks’ Howard Schultz has been practicing a centralized or bureaucratic system of organizational management. With the vast number of Starbucks’ coffee joints, it is no doubt that a bureaucratic organization will face many challenges. The s ituation can also worsen when a manager/CEO concentrates on business expansion while overlooking other market dynamics such as business competition. Therefore, when an organization begins to experience financial problems of the kind experienced by Starbucks, it is important for the top management to encourage decentralization of power and decision-making processes within the organization. The beauty of such a system is that the top management makes enough time to concentrate on formulating strategies while delegating the day-to-day operations and other decision-making responsibilities to their juniors (Robins Coulter, 1999). Accordingly, with decentralization, there is rapid responsiveness to customer needs and preferences, employee motivation, and cultivation of new businesses processes. As noted earlier, Starbucks can be regarded to as a bureaucratic organization in which business processes, techniques, and regulations are systematically defined and handed down the management lin e.Advertising We will write a custom essay sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More However, due to the inherent disadvantages associated with such an organizational structure, there is the need for Starbucks to modify its organization to include flat structures, downsizing, and outsourcing. By reducing the number of layers through which information travels from the baristas to the CEO, workers are given the opportunity to report directly to the top management. This is the essence of flat organizational structures. Coupled with downsizing which in essence refers to cutting down on low-value activities, a flat structure will enable Starbucks’ top management to respond to customer needs and preferences by getting first-hand information from its personnel on the ground (Robins Coulter, 1999). Furthermore, considering that Starbucks has embarked on increased business expansion over the years, the re is the need to outsource the services of other organizations to try and reduce the number of its operational assets and employees if necessary. The idea behind outsourcing is that the company will be able to identify certain tasks where its employees and business processes perform best and maintain them while delegating other tasks to organizations with the relevant expertise and personnel. For instance, Starbucks can adopt ‘home-shoring’ whereby workers are encouraged to help with customer service from the comfort of their homes. Overall, Starbucks stands a better chance of getting back to its previous status through initiating the right business strategies and processes. References Reilly, M., Minnick, C., Baack, D. (2011). The five functions of effective management. San Diego, CA: Bridgepoint Education. Robins, S.P., Coulter, M. (1999). Management. Upper Saddle River, NJ: Prentice Hall. This essay on Starbucks’ Structure was written and submitted by user Joey K. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here. Starbucks' Structure Starbucks is an American company that started in 1971 in Seattle, America. The company started with roasting and retailing both whole bean and ground coffee. As well, the company sold tea and spices starting with one outlet at Pike Place Market. As of now, Starbucks sells to several million customers daily over an expanded geographical region. Starbucks also sells other goods and services far from what it started with.Advertising We will write a custom case study sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More Statistically, Starbucks has over 18,000 retail outlets spread in over sixteen countries. The company operates in Europe, the United States, South America, Asia, some parts of Africa and North America. With its mission â€Å"to inspire and nurture the human spirit-one person, one cup and one neighborhood at a time†, the company continues to provide high quality products to its customers. It buys coffee from countries in Africa, Asia, and Latin America and roasts it at its own facilities (Morris 2006).  The company offers a number of products to its customer base throughout the world, which includes different blends of coffee, handcrafted beverages, merchandises such as mugs, brewing equipment, gift items, and music. As well, the company offers fresh food, consumer products such as coffee and tea, Ready-to-Drink drinks, and ice cream. The company continues to sustain a responsibility policy through its three pillars of responsibility, which are ethical sourcing, environmental stewardship, and community involvement. Concerning ethical sourcing, the company supports its farmers through loans and supporting forestry programs. The company also commits to conserving the environment with the use of recyclable materials for making cups. Starbucks has invested in research with the view to making all its cups reusable by 2015. The company also supports community service projects ( Morris 2006).  A job description is an outline of the expected functions, roles, and responsibilities of a candidate during a recruitment process. Both the job description and the job requirements are specific to the open position. One of the most important job positions at Starbucks is that of a barperson. The barperson is the â€Å"face† of Starbucks since she is the person who deals with customers first hand. The barperson receives and helps customers to their seats and proceeds to take orders. Another important function of a barperson at Starbucks is recording the transactions and maintaining such records in a proper form for purposes of bookkeeping. A job description is a summary of the roles and functions that an employee serves in an organization. As well, a job description lists out the requirements of the job (Morris 2006).  The barperson reports to the cafà © manager and is responsible for providing superior and customer friendly service to customers.Advertisin g Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Among the duties and responsibilities of a barperson, include taking customers’ orders and fulfilling them, recording all cash and credit transactions while maintaining the balances, reporting to duty for the allocated shifts, and displaying new information concerning Starbucks’ services for the customers’ attention. As well, the barperson coordinates with the other employees of the company whereas attending all trainings and seminars offered by the company. Importantly, the barperson should diligently follow all instructions and orders from the cafà © manger. In order to qualify for this position, a candidate should have cleared high school and should hold over one year experience in a similar environment. In addition to these requirements, the person should have the following person specifications: be passionate about coffe e and customer service, and as well be energetic, detail oriented, and enjoy working with people (Reilly, Minnick Baack 2011).  Starbucks should choose a geographic departmentalization whereby it categorizes departments according to geographical locations. With this kind of departmentalization, a number of retail outlets make up a district. A district manager who reports to the head office in Seattle heads this district. This way, the company is able to maintain its high standards of quality and as well promote its mission and growth statement. The company should maintain its cafà © concept where customers can relax over a cup of coffee whereas finishing on their undone work, as well as send emails and listen to music from the comfort of a restaurant. However, the company should streamline its operations with a view to cutting down costs if it is to maintain a competitive edge over its competitors. The management should handle the different geographic departments differently, wi th regard to cultural and economic backgrounds of the areas the company is in operation. Ideally, the central management at Seattle should encourage the individual geographical departments to carry out research concerning the dynamics of their operating environments. This should be with a view to identifying the strengths, weaknesses, and opportunities for growth for each operating environment (Reilly, Minnick Baack 2011).  In the event that the company experiences financial problems, the company should adopt a twofold strategy in terms of decision-making and the exercise of power. The company should both apply decentralization and centralization of power appropriate to individual cases. First, the head office must ensure that every geographic department meets its strict and ambitious goals and objectives. All geographical departments should adhere to the financial and operational directives of the corporate office. As well, they must maintain quality at an all time high. The cor porate office should see to it that all retail outlets follow its directives and operational procedures.Advertising We will write a custom case study sample on Starbucks’ Structure specifically for you for only $16.05 $11/page Learn More On the other hand, each geographic department must be responsible for its own success. Every department should align its marketing objectives to the specific geographical consumer demands but within the wider view of the Starbucks’ corporate brand image. The geographic department must understand the unique customer characteristic specific to the region, and align its strategies towards meeting and sustaining the demands of its customers. This way all the geographical regions remain attached to the headquarters and conform to the company’s corporate standards (Reilly, Minnick Baack 2011).  In order to increase efficiency and reduce costs, the company should automate its service line. The company s hould automate its service delivery activities in order to save on costs whereas reducing the service time for its customers. Currently, Starbucks is operating at high costs causing it to charge more for its services. By mechanizing and automating the whole value chain process, Starbuck will have a competitive advantage over its competitors since it will be able to charge less. This way, the company will be able to increase and sustain its market share and in which way operate profitably. The company should also standardize its norms so that every employee of the company is able to follow and individually drive the company’s corporate objectives. The head office should devise standardized training programs for all employees of the company. In order to achieve this, a team of experts from the headquarters should drive these training programs (Reilly, Minnick Baack 2011). References Morris, T. (2006, September 1) Understanding Starbucks. Coriolis Research. Web. Reilly, M., Min nick, C., Baack, D. (2011). The Five Functions of Effective  Management. San Diego, CA: Bridgepoint Education Inc. This case study on Starbucks’ Structure was written and submitted by user Rivka Moreno to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Sitting Presidents During Major American Wars

Sitting Presidents During Major American Wars Who was the president during each of the major U.S. wars? Heres a list of the most significant wars the U.S. has been involved in, and the wartime presidents who held office during those times.   The American Revolution   The Revolutionary War, also called the American War for Independence,  was fought from 1775 through 1783.  George Washington  was president. Spurred on by the Boston Tea Party in 1773, 13 North American colonies fought Great Britain in an effort to escape from British rule and to become a country unto themselves. The War of 1812 James Madison  was president when the U.S. next challenged Great Britain in 1812. The British did not graciously accept American independence after the Revolutionary War. Britain began seizing American sailors and doing its best to interrupt American trade. The War of 1812 has been called the Second War of Independence. It lasted until 1815.   The Mexican-American War The U.S. clashed with Mexico in 1846 when Mexico resisted  James K. Polks vision of a manifest destiny for America. War was declared as part of Americas effort to forge westward. The first battle took place on the Rio Grande. By 1848, America had taken possession of a huge swath of land, including the modern-day states of Utah, Nevada, California, New Mexico, and Arizona.   The Civil War The War Between the States lasted from 1861 until 1865.  Abraham Lincoln  was president. Lincolns opposition to slavery was well known and seven southern states promptly seceded from the union when he was elected, leaving him with a real mess on his hands. They formed the Confederate States of America and the Civil War broke out as Lincoln took steps to bring them back into the fold - and to emancipate their slaves in the process. Four more states seceded before the dust from the first Civil War battle had settled.   The Spanish American War This was a brief one, technically lasting less than a year in 1898. Tensions first began escalating between the U.S. and Spain in 1895 as Cuba fought back against Spains dominance and the U.S. supported its efforts. William McKinley  was president. Spain declared war against America on April 24, 1898. McKinley responded by declaring war as well on April 25. Not one to be upstaged, he made his declaration retroactive to April 21. The whole thing was over by December, with Spain relinquishing Cuba and ceding the territories of Guam and Puerto Rico to the U.S. Who Was President During WW1? The First World War broke out in 1914. It pitted the Central Powers (Germany, Bulgaria, Austria, Hungary, and the Ottoman Empire) against the formidable Allied Powers of the U.S., Great Britain, Japan, Italy, Romania, France, and Russia. By the time the war ended in 1918, more than 16 million people were dead, including civilians.  Woodrow Wilson  was president at the time. Presidents During WW2 Raging from 1939 until 1945, World War II actually monopolized the time and attention of two presidents:  Franklin Roosevelt and Harry S Truman. It began when Hitler invaded Poland and France. Great Britain declared war on Germany two days later. Soon, more than 30 countries were involved, with Japan  (among several other countries) joining forces with Germany. By V-J Day in August 1845, this had become the most devastating war in history, claiming between 50 and 100 million lives. The exact total has never been calculated.   The Korean War Dwight Eisenhower  was president when the Korean War broke out just five years later in 1950. Credited with being the opening salvo of the Cold War, the Korean War began when North Korean soldiers invaded other Soviet-backed Korean territories in June. The U.S. got involved to support South Korea in August. There was some concern that the fighting would mushroom into World War III, but it resolved in 1953, at least to some extent. The Korean peninsula continues to be a hotbed of political tension.   The Vietnam War Its been called the most unpopular war in American history, and four presidents (Dwight Eisenhower, John F. Kennedy, Lyndon Johnson, and Richard Nixon) inherited this nightmare. It lasted 15 years, from 1960 through 1975. At issue was a division not unlike that which prompted the Korean War, with Communist North Vietnam and Russia opposing U.S.-backed South Vietnam. The ultimate death toll included almost 30,000 Vietnamese civilians and roughly an equal number of American soldiers. With chants of Not our war! resounding across the U.S., President Nixon finally pulled the plug in 1973. It was two more years before U.S. forces were officially withdrawn from the region in 1975 and Communist forces took control of Saigon.   The Persian Gulf War This one landed in President  George H. W. Bushs lap in 1990 when Saddam Hussein invaded Kuwait in August. He thumbed his nose at the Union Nations Security Council when it instructed him to withdraw his forces. Saudi Arabia and Egypt requested the assistance of the U.S. to help prevent Iraqs invasion of neighboring territories. America, along with several allies, complied. Operation Desert Storm raged for 42 days until President Bush declared a ceasefire in February 1991.   The Iraq War Peace or something like it settled over the Persian Gulf until 2003 when Iraq again prompted hostilities in the region.  George W. Bush  was at the helm at the time. The U.S., aided by Great Britain, successfully invaded Iraq, then insurgents took exception to this state of affairs and hostilities broke out again. The conflict didnt resolve until Barack Obamas presidency when American forces withdrew from the region by December 2011.

Res wk 8 Essay Example | Topics and Well Written Essays - 1000 words

Res wk 8 - Essay Example Qualitative and quantitative researches both have their strengths and weaknesses as well as their contributions to analyze various issues have a unique and conclusive approach. That being said, it is quantitative research that I am more drawn towards. The exploratory and in depth analyses that it entails seems to offer much more in terms of formulating an understanding of a certain concept. Compared to the open and the personal elements that qualitative research comprises of qualitative research is more prone towards numbers, formulas and models that determine a basic link between variables. I feel that qualitative research merely scratches the surface whereas qualitative research dives deep into the problem and looks at the personal experiences of participants through the use of surveys and interviews all of which aim at analyzing thoughts and emotions attached to the issue under investigation. Having always been drawn to words, images and descriptions basing a perspective on number s has never appealed to me. Furthermore I feel as a researcher the contribution that you can put into qualitative research has a more unique and challenging touch to it as you get to know your subjects for what they truly are; compared to that quantitative research seems dry as you analyze and compare numbers and formulas to come to a conclusion. Assignment 4 The argument presented by the writer is much like that of my own opinion when it comes to the debate of qualitative vs. quantitative research. In fact it brings to my mind this interesting article that I had read online called ‘The Qualitative-Quantitative Debate’, during my research. It talks about how the debate between the differences between and relative advantages of qualitative and quantitative methods has been one on which considerable energy has been expended. So much that it is referred to as a ‘hot-button’ issue in social research. It then goes on to delivering a interesting perspective to th e issue (one that I found very fascinating) about there being little differences between qualitative and quantitative data. The pillars for the writer’s argument are firstly that ‘All qualitative data can be coded quantitatively’, that is, anything that is qualitative can be assigned meaningful numerical values. Second, All quantitative data is based on qualitative judgment that is numbers in and of themselves can't be interpreted without understanding the assumptions which underlie them. References Trochim. W. (2006). The Qualitative-Quantitative Debate. Knowledge base. Retrieved from: http://www.socialresearchmethods.net/kb/qualdeb.php Response to professor assignment 1. I understand the common error I made during the formulation of my research question merely because I associated qualitative research questions firmly on their nature to investigate why something is the way it is. However as far as Creswell (2009) suggestion that we avoid using the word ‘w hy’ I will reformulate by question from: ‘Why do juveniles commit crimes?’ to ‘What are the reasons that contribute to juveniles ability to commit crimes?’ I went through the aspect of interpretive inquiry again and I see how I

Racial issues among black & latino boys in school Research Paper

Racial issues among black & latino boys in school - Research Paper Example This is a fundamental variation, since concentrated poverty is related to mediocre educational performance. Poverty at the school level is linked to several factors that impact the overall chance of a school at effectively educating its students, incorporating parent educational backgrounds, accessibility of advanced lessons, educators with specializations in the subject they are handling, fluctuation in enrollment, dropouts, remedied health dilemmas, lower college admission rates and several other critical factors. The large project of compensatory schooling initiated by the nation has had considerable predicaments in achieving improvements and benefits in schools wherein poverty is greatly felt and concentrated. Once school districts go back to vicinity schools, students of white racial background have a tendency to sit beside students from the middle class group but African-American and Latino students are expected to sit beside students from the low class or impoverished group (F ife, 1992). Hence, while discourse over the accurate effect of desegregation persists, it is unquestionable that African-American and Latino students in racially assimilated educational institutions are commonly in schools wherein there are higher levels of standard academic performance than are those in segregated schools. Desegregation does not guarantee that students of non-white racial backgrounds will acquire better opportunities in those educational institutions that rely on how the racially integrated school is managed but it does normally place marginalized students in schools wherein there are better opportunities as well as better equipped and trained peer groups. In a period within which compulsory state examinations for graduation are being implemented, college admissions requirements are getting higher, remedial classes in college are reduced and positive action has previously been eliminated in our two biggest states, the

Be a successful Adult learner Essay Example | Topics and Well Written Essays - 250 words

Be a successful Adult learner - Essay Example I chose to take a writing course not because I’m interested purely in the subject (on the contrary - I am not really found of writing essays), but mostly because I am eager to deepen my knowledge. I believe effective writing is extremely important for a person of my profession for several reasons. First of all, effective writing is always an attribute of an educated person who is a professional in one’s field. Secondly, knowledge and skills in the subject are to help any future nurse to avoid spelling or other mistakes that might be vitally important for a patient. In addition, I believe the course in writing will not only help me to improve the writing skills, but will also enrich my knowledge about the better ways and methods of studying and gaining new knowledge, as well as expressing own thoughts and ideas. Since I am eager to obtain a nationally recognized professional qualification, the writing skills, I believe are an integral part of it. Besides that, good and experienced teaching staff as well as well-developed academic programs will broaden my mind and help me to acquire all the necessary skills to succeed in my future

Definition of fixed cost and variable cost

Definition of fixed cost and variable cost Fixed cost (FC): is a cost that remains constant, in total, regardless of changes in the level of activity. Fixed costs are not affected by changes in activity. Consequently, as the activity level rises and falls, total fixed costs remain constant unless influenced by some outside force. But fixed cost per unit decreases as the activity level rises and increases as the activity level falls. (Garrison etal., 2006, P49). Fixed costs include salaries of executives, interest expense, rent, depreciation, and insurance expenses. . Variable cost (VC): is a cost that varies, in total, in direct proportion o changes in the level activity. The activity can be expressed in many ways, such as units produced, units sold, miles driven, beds occupied, lines of print, hours worked and so forth. But variable cost per unit remains constant. ((Garrison etal., 2006, P48). Direct cost, indirect cost and overhead costs Direct costs: is a cost that can be easily and conveniently traced to the particular cost object under consideration. The concept of direct cost extends beyond just direct materials and direct labor. (Garrison etal., 2006, P50). Example: the salary of supervisor in marketing department is the direct cost for marketing department. The salary is likely the same each month not depend on the quantity of sales product. Indirect costs: is a cost that cannot be easily and conveniently traced to the particular cost object under consideration. (Garrison etal., 2006, P50).   Each business has its own method of allocating indirect costs to different products, sources of sales revenue and  business units.  Business managers and accounts should always keep an eye on the allocation methods used for indirect costs. Example: Depreciation on the production machine is also an indirect product cost, it stays the same each year not depend on the volume produced on the machine. Costs can be direct and indirect depending on the cost object: product, department,  and others such as division, customer, or geographic market. The total amount of the  cost remain the same as volume changes, it is fixed cost. It is a variable cost if the total cost change in proportion to the change in the activity or volume. Overhead costs: the indirect recurring costs of running a business that are not linked directly to the goods or service produced and sold. Overhead costs can include payments for the rent of premises, utility bills, and employees salaries. Controllable costs and uncontrollable costs Controllable cost: are those costs which can be regulated or controlled by specified member of an undertaking. Most of the variable costs are controllable costs. For example, direct material, direct labor and direct expenses à ¢Ã¢â€š ¬Ã‚ ¦are controlled by the lower level of management. Uncontrollable cost: can not be controlled by the specified member of the undertaking. Most of the fixed costs are uncontrollable cost. For example, factory rental expense, supervisors salary, depreciation. Evaluate the statement I have trouble with the terminology-direct costs, also called variable costs, are the ones that are controllable. Whereas indirect costs or overheads, also called fixed costs, are uncontrollable. Based on the definitions above, I strongly disagree with the statement because the delegate assumed wrongly about the cost. There are many ways to classified cost depending on the purpose of management. According to association with products, costs are divided into product costs and period costs. According to identifiably, costs are divided into direct cost and indirect cost. According to behavior, costs are divided into fixed cost, variable cost and semi- variable cost. According to controllability, costs are divided into controllable costs and uncontrollable costs. Direct cost can be fixed cost and variable cost depending on situations For example: the salary of supervisor in manufacture department is the direct cost for manufacture department. The salary is likely the same each month not depend on the quantity of product. It is a fixed cost of manufacture department. Raw material supply for manufacture department is a direct cost for department but it is a variable cost, total amount of supplies use in the department increases if the volume in the department increases. Indirect costs can be fixed costs and variable cost also: In opposition to direct cost, most of indirect cost is fixed cost. For example rental cost is indirect cost for part production, it is a fixed cost of manufacture department stay the same each month, its not depend on the number of product. But indirect cost can be variable cost also. The cost of electricity for administration of manufacture department is variable cost monthly depending on the number of electricity use more or less. Controllable cost and uncontrollable cost Most of variable costs are controllable. To illustrate: low level manager in manufacture product is the direct monitoring and control of production process. They can be managing the raw material use to create product and direct labors that mean control the number of employees needed to complete product. Management can organize the use of resources effectively in the short term. On the other hand, many of fixed costs are uncontrollable. They are imposed in terms of management such as business can not decide the rental fees of factory, the rent for his unit negotiated by higher management, or the rates dictated by the local authority. Question 2 1. Participative budgeting Budget preparation is the process by which organizational goals are translated into a plan that specifies the allocated resources, the selected processes, and the desired schedule for achieving these goals. There are two main types of budgeting: bottom-up budgeting and top-down budgeting. Participative budgeting is a method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by the managers supervisor, and any issues are resolved by mutual agreement. Manager Marketing Manager Sales Vice President Sales Vice President Finance President and CEO Vice President Production Cashier Controller Manager Manufacturing Manager Distribution All level of an organization should work together to create the budget. Each level in organization should contribute in the way that it best can in a cooperative effort to develop budget. Lower level management is responsible for setting the estimate of budget data in a participative system and submits them to the next higher level of management. Before the budget is accepted, they must be reviewed and evaluated by middle management before they are transferred to the organization. Advantage of participative budgeting Participative budgeting is relevant to all member of particular project, it helps to encourage all participants contribute idea to built a project effectively. Budget information is given clearly and fairly accurate because it use of the data available at the project management level Working motivation is higher when an individual directly involved in setting goals rather than goals imposed from above. Self-imposed budget made commitments to implement the goals. If the budget has been setting from top management, managers can say that budget is unreasonable or impractical to start, could not be performed. With participative budget, it does not happen when the managers set a budget for themselves. Disadvantage of participative budget Time consuming and costly because too many participants involved in setting budget project. The influence of top manager is limited over the budget process. However, when the lower-level managers plan the short budgets and mid-range budgets, outlining organizational policies and goals, they can influence the outcome by issuing a statement. Individual tend to overstate the real resource needs because they think that all budget will be cut in certain proportion by top manager and set a goal lower than actual for easy to achieve the goal. 2. Budget variance a. Definition of budget variance: Total budget variance is simply the difference between the actual cost of the input and its planned cost. Total variance = Price variance + Usage variance In standard costing systems, the total variance is broken down into price and usage variance. Price variance is the difference between the actual and standard unit price of an input multiplied by the number of unit used. Usage variance is the difference between the actual and standard quantity of inputs multiplied by the standard unit price of the input. Total variance = (AP x AQ) (SP x SQ) ACTUAL COST (AQ x AP) STANDARD COST (SQ x SP) STANDARD COST (SQ x SP) ACTUAL COST (AQ x AP) > FAVORABLE VARIANCE (ACTUAL UNFAVORABLE VARIANCE (ACTUAL > STANDARD) AQ means the actual quantity of input used to produce the output AP means the actual price of the input used to produce the output SQ means the standard quantity SP means the standard price Favorable variance and unfavorable variance are not equivalent to good and bad variance. The terms indicate the relationship of the actual price or quantities to the standards prices and quantities. b. Budget variance investigation Managers responsibility is carefully calculated the variance because that is a part of effective control of organization. In general, it is difficult to manage external sources of budget variance (government policy, stock market, fluctuation of exchange rateà ¢Ã¢â€š ¬Ã‚ ¦) rather than internal sources (raw material, cost per hour on direct labor). Management should know about the acceptable range of performance. If the budget has a favorable balance that means it has brought the profit to the company. Conducting an investigation to find out the reason why the variance of budget was favorable and it could be made more than in the future. If the variance is small, it should not be too worried. In fact, a little variance between actual budget and the projected figures is always happens. With the very small difference, the manager can ignore them, no need to adopt strong action because it does not bring terrible consequences for the business. So, with little difference, the best way to solve is simply putting it into stride. If the budget has unfavorable variance, head of department need to conduct an investigation to find out the main causes by external influence or internal influence. For example the increase of raw material usage per unit more than allowed standard because it was poor condition of machine or poor manufacturing. Find the cause and how to fix the problem; it is a good measure to prevent a similar situation may occur in the future. After having adverse variance the budget needs to rewrite or the budget needs to verify by internal audit. Question 3 Explain the term used in the statement 1. Committed fixed costs Committed fixed costs relate to the investment in facilities, equipment, and basic organizational structure. The two characteristics of committed fixed costs are that they are long term in natural, and they cannot be significantly reduced event for short periods of time without seriously impairing the profitably or long- run goals of the organization. Even if operations are interrupted or cut back, the committed fixed cost will still continue largely unchanged (Garrison etal., 2006, P190). For example: Vietnam airlines has total 80 aircraft, the company must pay money for depreciation, maintenance and insurance expense. The expense is not depend on the number of times the plane fly or the number of passenger in plane. It is a committed fixed cost. Decisions to acquire major equipment or to take on other committed fixed costs involve a long planning horizon. Management should make such commitments only after carefully analysis of the available alternatives. Once a decision is made to acquire committed resources, the company may be locked in to the decision for many years to come (Garrison etal., 2006, P191). For example the total committed fixed cost of renting the building for the hotel is very high and the company must commit to pay for it at least 5 years in Vietnam. Uneven revenue flows It is showed that the difference of demand (low or high) for product or service in different periods. At times the company is very busy and at others it suffers from very slack periods. The hospitality industry is often divided into two distinct seasons: high season and low season. The period time between two seasons can move and change each year. In high season, the hotel does not have enough room for customer and the room rate is very high that bring large of profit for the hotel. In contrast, in low season the hotel must reduce the price and apply promotion to attract tourist. It is a common situation of hotel and resort. The implication of the above situation for the company Many of our cost are committed fixed cost. Our revenue flows occur very unevenly. To be profitable we have to take a flexible approach to pricing The company in hospitality industry has large proportion of fixed cost for the initial investment so the break even point is also very high. Company will operate with high level of capacity before earning a profit. But when passed break even point the profit will increase rapidly. Committed fixed cost has a little effect to the level of costs in the short term. Revenue is the money the company receives for selling their product or service. It is calculated by taking the selling price and multiplying it by the number of units sold. Profit is the amount of money left over after costs have been covered. It is calculated by: total revenue minus total costs. Therefore, profits will not be improved by a greater emphasis on cost management of costs. The company will get profit if the revenue is maintained consistently above break even level. Due to the nature of leisure industry, the product is not in storage so the focus on revenue during the period low level of demand is the necessary task of this company. By adopting a flexible approach the company is adapting the price of the product or service to suit the situation of the company and the amount of money customers are willing to pay. But the given price must be greater than variable cost and above break event point. This pricing strategy is designed to attract as much business as possible when the company has spare capacity. The price will be increased for busy periods when the company can expect to operate near to full capacity. For example: In Vietnam, Da Nang has a long beautiful coastline. Seaside hotels have a high level of demand in the summer (from May to August), this time mainly to serve domestic tourist. The room rates are usually higher two times as much as normal. The hotels have maximum revenue in this period. In the low season from October to February next year, the hotel has launched promotions to attract tourist such as discount 30% room rate at Furama Resort or stay 2 night get 1 night free at Golden Sand Resort. In this case, at times of low volume an inflexible, cost orientated approach to pricing.

The Lie of the Land :: Haydn Middleton Davids Story

The Lie of the Land The Lie of the Land, written by Haydn Middleton, is a novel about protagonist David Nennius and his past, present, and future. David tells readers about his past through sections entitled "David's Story," a narrative that he is writing in which he reveals secrets about his conception, birth, life, and impending death. Through this, we learn that David is the son of the sky and that there is a woman who has claimed him as her own. This woman haunts him with the statement "I know you, I have found you, and I will not let you go," and in the end, he will "dance in the brightest light the dance of death at the gateway to Albion" (p. 84-85). He constantly lives in this woman's shadow and cannot know happiness with another, so after his is married to Melissa and fathers a son, Art, David knew "that he would dance before his time" and "that there would be more than one end" (188). In this so-called "end before the end," David found his 13 year old son being forced to give a man oral sex in a bathroom in a park, and, outraged, David kills the man. Soon after, Melissa and Art leave, and after some time, David believes that he is given a new beginning when he finds a man named Quinn at his allotment on top of the mound under which he had buried the man he murdered. In time, David loses faith in this false hope and believes that he has to die to atone for what he has done. This he shares with a girl named Rachel whom he meets at the Good Samaritan center. When Quinn and Rachel find David's Story, they are convinced that it is "the beginning of a very long suicide note," and the two intervene to keep David from taking his own life (154). Middleton, Haydn. The Lie of the Land. New York: Ballantine Books, 1989. Ordinary People Ordinary People is a novel about an adolescent boy named Conrad Jarrett. The story begins after Conrad has returned home from spending eight months in a hospital for attempting to commit suicide after he was involved in a sailing accident in which his older brother Jordan was killed. In the accident, a storm arose while the boys were on the lake with their sailboat. The two worked to control the boat, but it tipped and they fell into the icy water.