Research on Atlas Honda

OXFORD BROOKES UNIVERSITY An analysis of the financial situation of ATLAS HONDA Ltd. Introduction The topic chosen by me for the research and analysis project is AN ANALYSIS OF THE FINANCIAL SITUATION OF YOUR CHOICE OF ORGANISATION. The reason for choosing this topic is that I am very comfortable with financial techniques and methods that are used to carry out financial analysis. Financial courses covered in ACCA part 1 and 2 were of key interest to me.The organization selected for the financial analysis is ATLAS HONDA LIMITED being the market leader in the motorcycle industry in Pakistan. The company attracted me to be selected for the project because the company is the leading company in the motorcycle industry with few unestablished competitors. The company is a public limited company with an annual turnover of Rs6,977. 4 millions, which makes it a leading company of public sector in our country.As the project is related with financial analysis of the company it is easier for me t o apply the financial tools learned in ACCA. It is easier for me to examine the financial position of Atlas Honda Ltd, as the management of the company is willing to provide me with sufficient financial data that will aid in carrying out a financial analysis. As this is public limited company information related to the company is also available through different magazines, government agencies, credit rating agencies (pacra), industry experts and websites.Atlas Honda Ltd is a company of Atlas group of companies. The foundation of the Atlas Group was laid in 1962 with the establishment of Shirazi Investments (Pvt) Limited with a capital of half a million rupees and three men doing business in trading shares and real estate. (www. atlasgrouppk. com) Atlas Honda Ltd was incorporated as a public limited company on October 16, 1962 and its shares are listed on Karachi and Lahore Stock Exchanges in Pakistan. Atlas Honda Limited is a joint venture between the Atlas Group and Honda Motor Co. , Japan.The merger of Panjdarya Limited and Atlas Autos Ltd created the company in 1991. The Atlas Group established both these motorcycle-manufacturing concerns. (www. atlasgrouppk. com) Atlas management is striving to modernize company operations by adapting applicable aspects of research and theory and more specially, Honda’s unique philosophy of hard/soft technologies to the realities of Pakistani conditions. Company management structure, systems and processes are changed according to the demands of the customer, growth and new technology. www. atlasgrouppk. com) Atlas Honda Ltd is a dynamic, profitable and growth oriented company through market leadership, maximizing export and excellence in quality and service. The company ensures attractive returns to equity holders, reward employees according to their ability and performance. Atlas Honda Ltd fosters a network of researchers and engineers ensuing unique contribution to the development of the industry. The company ensu res customer satisfaction and protection of the environment by producing emission friendly green products.The company aims to remain a good corporate citizen fulfilling its social responsibilities in all respects. Atlas Honda Ltd also received the best corporate report excellence awards in the engineering sector by the joint committee of ICAP/ICMAP. (Annual Report 2003) The company quality is gaining greater acceptance globally year after year the company takes it as a national cause to make â€Å"MADE IN PAKISTAN† accepted and Atlas Honda Ltd respected all the over world. An increase of 52% in exports on year-to-year basis is an indication of the growing popularity of the company products globally.Atlas Honda Ltd as being a market leader in motorcycle industry recognized the fact that excellence in business is dependent on the quality of human resource. As a result the company has continued to invest in development of its manpower over the years. The company has a well sprea d out service network of antenna shops, service dealers and four strokes mechanics with a combined strength of well over five thousand service points all over the country which has successfully covered the needs of company costumers.The network of 5S (Sales, Service, Spare parts, Credit and Second Hand Exchange) dealers all over country has given Atlas Honda Ltd a competitive edge over other players of the automotive industry. Due to the greater customer care and after sales service the customers of Atlas Honda Ltd are more obliged and satisfied then with any of the other competitors. As every market leader company Atlas Honda Ltd duly complies with the standards of safety health and environment (SHE). Sizeable capital expenditure was made by the company to install various equipments at assembling plants to minimize the risk of haphazard.The vision of Atlas Honda Ltd is to remain a leading group through effective use of its resources, technology and good business practices; attract and retain high quality people by developing them to their fullest potential; always keep the customer in their highest esteem and to give attractive returns to the share holders through a sustained growth of profit. (www. atlasgrouppk. com) The auto industry has been a major beneficiary of the macro economic stability of the country. The unprecedented reduction in the cost of the funds has helped promote greater consumer financing for automotive products.Atlas Honda Ltd has taken some tough decisions in enhancing the total customer base as well as dealing with the menace of the unauthorized sector. The motorcycle market has under gone a severe change in the last year. Ninety percent of the market is dominated by established brands from the organized sector. The players in the organized sector consist of the traditional Japanese manufacturers as well as a couple of Chinese assemblers and all are members of officially recognized Pakistan Automotive Manufacturers Association (PAMA). A nnual report 2003) The aim of the report is to apply the tools learned in ACCA and to carry out practical work in a real time company. Through this report I will have exposure to Pakistan industry that will help me in the development of skills acquired during my ACCA studies. The report also aims to critically view the financial statements in order visualize that adequate returns are available to shareholder, company is a going concern, company is generating sufficient profits, assets of the company are well managed and guarded by the management in the best interest of the share holders.I will also review that the best practices of management stewardship is carried out to ensure that the company is maintaining the best practices of corporate governance. The objective of the report is to carry out financial analysis of Atlas Honda Ltd for the year 2003. The financial analysis has been carried out by using financial techniques such as ratio analysis, trend analysis and vertical analys is on the data available in the annual report of the year 2003 of the company. INFORMATION GATHERING Information gathering is the process through which processed and meaningful data is available to carry out the required task.Extensive amount of information is available through Internet, media, newspapers and other business magazines. These all sources of information these days make the process of information gathering simple. There are two main source of information gathering through which information is gathered, first is my personal visits and meetings with the different personnel’s in the company and secondly the financial statements available in the stock exchange on which the company is listed and also the data available through print media publicly.The information gathered depends on the reliability of the source from which it is gathered. These both sources are reliable to gather authentic information. Information was also obtained from credit rating agencies such as (pacra) and industry experts. Some government agencies also hold information relating to companies such as Securities and Exchange Commission of Pakistan (SECP). The financial statements and print media information used for the report are for the period ended 2003,the broachers of Atlas Honda Ltd, financial and business news papers such as THE NEWS BUSINEES PAGE, DAWN BUSINESS PAGE.As Atlas Honda is a leading company in the motorcycle industry information relating to the company is also available through different business magazines such as the Gulf Economist. They are good source of reliable information, that too with a critical viewpoint about the company. Information relating to Atlas Honda is also available through Internet by access to sight www. atlasgrouppk. com that makes it easier to be familiar with the company and have access to the financial and other authentic information that helps in the effective completion of this research and analysis project.Published documents of Atlas Honda Ltd provides a reliable method of data collection through which sufficient financial data can be collected easily so that financial analysis can be conducted in a effective way. Interview is very effective means of gathering information, providing precise and accurate data. Interviews with the officials of Atlas Honda also provided quality information that helped me to have a sufficient knowledge about Atlas Honda, about its financial position, where it stands in the market, its new competitors in the motor cycle ndustry, its adequate returns to share holders, about its expansion of the business and its unique 5S(service) network that give Atlas Honda Ltd edge over its competitors. ANALYSIS The analysis stage of the report carries critical view of the financial statements to ensure that adequate returns are available to share holders, assets are properly utilized by the management and are depreciated as par the accounting policies of the company, the company is financia lly sound and that investors have confidence in the company. There are few un established competitors of Atlas Honda with little penetration in the market.The ratios are computed on the basis of audited financial data for the year 2003. PROFITABILITY The profitability of any company is the key concern to the shareholders and to its employees and is also the symbol of market leadership for any company in the market. I have analyzed the profitability trend over the period of 8 years. The key ratios during the 8 years that demonstrate profitability are Profitability 2003 Gross Profit Ratio (%) Profit Before Tax (%) Profit After Tax (%) 14. 7 9. 3 6. 1 2002 13. 3 7. 1 4. 9 TABLE: 1 2001 9. 7 4. 3 2. 5 2000 10. 4 3. 0 1. 1999 11. 6 5. 3 3. 6 1998 12. 4 5. 6 3. 7 1997 1996 11. 3 5. 4 3. 6 10. 9 5. 7 3. 3 There is a constant increase in the gross profit during the first 3 years 1996 to 1998 but the year 1999 had a slump causing a decline for the next 3 years up till 2001. After that huge r ecovery has been made by the company with G. P Ratio from 9. 7 in 2001 to 14. 7 in 2003. Corresponding increase in cost and the relationship between profits and cost reveal that the profit before tax was almost half (5. 7) to 10. 9 in the year 1996 and this relationship is maintained in 2003.On the other hand the operating profit have not shown a considerable growth in comparison to the tax rates as shown by the relationship between G. P ratio and profit after tax. In the year 1999 it was 1/3rd to the G. P ratio but has increased to come up with ? of the G. P ratio. This indicates that the company is trying to improve its profit by maintaining its cost but the increase in taxes has jeopardized the efforts and consequent increase in profit after tax has not been obtained. Returns to Shareholders The returns are of key interest to shareholders as they invest in the company that gives more returns than the other.Atlas Honda distributed 5% of its total wealth to its shareholders in the year 2003. The company proposed a cash dividend of Rs. 7 per share. The return on capital employed, Earning per share (E. P. S), Price earning ratio, their trend can be seen below in the table. Returns to share holders 2003 ROE – Before Tax (%) 60. 5 2002 49. 8 TABLE: 2 2001 31. 5 2000 17. 4 1999 32. 7 1998 39. 6 1997 48. 0 1996 61. 0 ROE – After Tax (%) 39. 7 34. 1 18. 3 10. 3 22. 3 26. 1 31. 8 35. 0 Return on Capital Employed (%) 34. 2 29. 8 14. 7 7. 6 17. 3 18. 7 23. 4 28. Market Price 80. 00 40. 05 25. 00 19. 25 19. 25 30. 00 31. 00 27. 00 E. P. S – After Tax – Rs 20. 91 13. 24 8. 07 4. 12 8. 45 8. 60 9. 41 8. 41 Price Earning Ratio 3. 83 3. 03 3. 10 4. 67 2. 28 3. 49 3. 29 3. 21 Industry Average . P. E Ratio 3. 21 3. 14 3. 52 3. 50 2. 14 3. 31 3. 27 3. 25 The Return on equity before tax ratio showed a downward trend and declined from 61% to 17. 4% in 2000,there by recovering to a satisfactory figure of 60. 5% in 2003. The ROE after tax declined from acceptable figure of 35% in 1996 to a dangerous level of 10. % in 2000 and reaching a satisfactory figure of 39. 7% in the year 2003. Earning per share is widely used to measure the performance of the company over a number of years. E. P. S of Atlas Honda started to decline after 1997 and declined to a poor figure of 4. 12,there by up streaming to the figure of 20. 91,compariably stronger than last year due to improved profits. Price Earning ratio shows partial ups and downs through years not having significant variation except 1999 where it shows a downward trend, showing a healthy upward trend in 2000.This indicates that the investors have a strong confidence in the company abilities to maintain the earnings. Overall the P/E ratio of the company is above the industry average as indicated in table 2. The market price of the shares has grown rapidly and has become twice as compared to the last year, which indicates people’s confidence. Cash Flow situation The cash flow statem ent with the same importance as profit and loss account and balance sheet is used to emphasize the difference between profit and cash. Cash flows, including net present value calculations, have always been a popular management tool.The situation of the company cash flow showed that net cash generation from operations increased to Rs. 724. 20 million as compared to Rs. 519. 34 million last years. Increased net income and customers’ advances created a positive impact on the net cash provided by operations. Net cash used in investing activities decreased to Rs. 67. 53 million compared to Rs. 150. 04 million last year. Net cash used in financing activities was Rs. 42. 33 million as compared to Rs. 121. 74 million last year. During the year Rs. 150 million long-term loans were acquired and Rs. 71. 11 million loans were repaid.Cash and bank balance increased by 1. 5 times to Rs. 1, 021. 23 million this year Rs. 406. 88 million for the operating year 2002. Investment income increase d to Rs. 38. 3 million from Rs. 32. 6 million of last year. Debt equity ratio was 10:90. The equity of the company stood at over Rs. 1 billion including reserves of Rs. 872. 2 million, with cash surplus of Rs. 1. 02 billion, reflecting a sound financial position of the company. Asset turnover Assets are held by companies to utilize them in their business activities and generate profits in order the company to prosper.Assets are held and maintained by Atlas Honda in the course of their business activities and the company to meet their growing requirements also acquires new capital assets. Asset turnover ratios are computed for a period of eight years. Asset turnover (Times) Sales to Total Assets Sales to Fixed Assets 2003 2. 63 12. 39 2002 3. 02 10. 32 2001 3. 16 10. 44 2000 2. 28 6. 93 1999 2. 80 9. 34 1998 2. 23 9. 02 1997 2. 89 13. 02 1996 2. 97 11. 42 Inventory Turnover 10. 34 9. 57 7. 46 6. 87 7. 39 6. 06 5. 41 5. 38Major portion of the total assets are current assets, which not an admirable situation and the company is bearing increase in the opportunity cost of assets not invested by the company. In the other scenario the company have superfluous current assets to meet its current liabilities, which is appreciable. In the sale to fixed asset turnover there is a major acquisition in the year 2000 then in other years where there is normal acquisition during the course of business. This is indicted by the reduction of only 0. 99% in the sale of year 2000 from previous year where as there is a reduction of 2. 1 times in the sale to fixed asset turnover ratio. This acquisition by the company in the year 2000 was made to cope with predict future growth. In other years the fixed asset turnover ratio is increasing due to increasing sales and there is usual acquisition of fixed assets. In the case of the inventory turnover ratio there is a constant increase in the figures over the years. The company in warehouses does not hold idle stocks thus reducing the stock holding cost. Demand based production is carried out by the company and there are no over purchases by the company.Solvency/Liquidity Solvency is the term used to determine that are the assets of the company surplus enough to pay its liabilities. This is a key measure of the financial reliability of a company and the key ratios that computes solvency are of key interest to investors. 2003 Current ratio (Times) 1. 47 2002 1. 38 2001 1. 48 2000 1. 46 1999 1. 64 1998 1. 31 1997 1. 21 1996 1. 10 Interest Cover Ratio (Times) 17. 17 11. 18 3. 65 2. 04 3. 18 2. 58 3. 95 3. 81 The intent of the current ratios is to determine that how many current assets are there to repay current liabilities on demand.The company holds surplus current assets. This is also discussed above in the Total Asset turnover that a major portion of the total assets is current assets showing a healthy prospect in terms of the company to meet its current liabilities. The company is showing an acceptable current ratio o ver the period indicating the company’s capability to meet its liabilities. The interest cover ratio for the year 2002 and 2003 shows that the company is having added profits that allows the company to borrow more loans but the company is not utilizing this facility. This is also the reason the company is low geared.This also indicates financial soundness of the company in the market. If the company takes advantage of this facility it would be beneficial for the company and would facilitate the company in reducing its taxes, as interest expense is a tax allowable expense. The company has been obtaining loans in the rest of the period as indicated by the interest cover ratios of rest of the periods. Investments Investments are held by companies to have adequate returns from their sales. Investments held by Atlas Honda in associates are proposed for sale and are stated at fair value.The investments held by the company are in listed and also some unlisted companies. Investments are counted as company’s principal financial assets. Listed Atlas Battery Limited – Associated undertaking NIL (2002: 165,550 Ordinary shares of Rs. 10 Each includes bonus shares 25,550) 2003 (Rupees in 000’s) 9,548 2002 Unlisted Arabian Sea Country Club (private) Limited 200,000 ordinary shares of Rs. 10 each Break-up value on the basis of audited Accounts for the year ended June 30, 2002 Rs. 6. 25 per share 2003 2002 (Rupees in 000’s) 2,000 2,000 Automotive Testing and Training Center (private) Limited 187,500 ordinary shares of Rs. 0 each Break-up value on the basis of audited Accounts for the year ended June 30,2001 Rs. 5. 75 per share 1,875 1,875 The credit risk represents the accounting loss that would be recognized at the reporting date if counter parties failed to perform as contracted. Out of the total financial assets, following amount of financial assets are subject to credit risk: 1,118,907. The company believes that it is not exposed to major concentration of credit risk. To manage exposure to credit risk, the company applies credit limits to its customers. STAEMENT OF VALUE ADDITION 2003 WEALTH GENERATEDTotal Revenue Material & Services (excluding duties) 8,066,365 (5,219,313) __________ 2,847,052 __________ 6,382,219 (4,177,572) _________ 2,204,647 _________ 2002 100% 100% WEALTH DISTRIBUTED To Government Sales Tax, Income Tax, Import Duty & Workers’ Welfare Fund To Employees Salaries, benefits and related cost To Providers of Capital Dividend to shareholders Markup on borrowed funds Retained with the business Depreciation Retained profit 89,645 284,345 _________ 2,847,052 _________ 3% 10% ______ 100% ______ 83,433 4% 143,058 20,487 5% 1% 122,621 19,913 5% 1% 346,762 12% 322414 15% 1,962,755 69% 1,508,389 68% 47,877 7% _________ ____ 2,204,647 100% _________ ____ As can be seen from the table above and the chart that a greater portion of wealth generated is distributed to the government. The company paid sales tax, income tax and custom duties amounting to Rs. 1. 96 billion during the year, which represents 69% of the total wealth generated. The company’s contribution to the national economy by way of value addition this year amounts to Rs. 2. 85 billion, which is 29. 13% higher as compared to last year showing company’s responsibility towards overall economy.This is also the reason that the company is unable to increase its profit after tax even though the company is maintaining its cost. This huge amount of tax payments has jeopardized the efforts made by the company. A good proportion of wealth generated is distributed to employees as salaries and benefits showing that the company is facilitating its employees and maintaining a healthy environment of working by offering benefits to them. WORKING CAPITAL The company has maintained a good working capital that shows the stewardship of the management in the use of financial resources in the operations.Company maintains a 5:1 to the current assets that is a working capital of Rs. 6, 671. 50 million, Showing good liquidity performance. Capital Structure The company shows a very low financial gearing (0. 165b: 1b) but the timing of the repayment cash flows is a cause of concern, as 50million out of a total of 166million has to be repaid during the next 12 months. As the net increase in cash and cash equivalent is 614million it would not be a major cause of concern but shows the company’s vulnerability and dependence on maintaining very high liquid assets.This indicates that the company is in a desperate need to maintain its profits and to increase them. The period where the company is unable to make any profit the company will be in a critical situation beyond its accepting power. Presentation of Findings The SWOT analysis is used as a technique to identify the strengths and weaknesses in the company and the opportunities and threats outside faced by the company. A SWOT analysis of Atlas Honda Limit ed would be a significant appraisal of the company’s position in the automotive industry.Strengths: Market leader †¢ Advance cash receipts from dealer’s hence additional cash available for investment. †¢ Customer satisfaction. †¢ Trained technical staff. †¢ Atlas Group patronage. †¢ Sound financial standing in the market. Weakness: †¢ †¢ No customer support in rural areas. Burden of taxes by the Government. Opportunities: †¢ †¢ †¢ †¢ Opportunities for new technologies. Development of latest IT infrastructure. Effective media promotion. No threat of established competitor. Threats: †¢ †¢ †¢ Threat of new entrants.Unestablished Competitors imitating the models of motorcycles at low price. Demands for low priced motorcycles. The strengths of the company are the key to triumph and the company should seize advantage from its opportunities and should devise such that its opportunities should be part of its strengths. Atlas Honda has been able to prolifically make its way through the heavy burden of taxes this year but it’s my anticipation that the burden of taxes will increase further, to counter this the company should plan a head.Atlas Honda is having a sound financial standing in the market and had attained customer satisfaction by quality products and after sales customer service. Customers are drawn in due to quality and services provided by the company, which the company should sustain and enhance, by making available price controlled motorcycles. Company has developed latest IT infrastructure to make good use of IT in manufacturing using computer techniques such as CAD (computer aided design) and CAM (computer aided manufacturing) thus enhancing costs.The edifying aspect of the report has been the findings that Atlas Honda is a financially sound company with market penetration and strong customer base. Conclusion The essence of the research and analysis report was to ca rry out a comprehensive financial analysis of Atlas Honda Ltd. The core objective of the report was to scrutinize that ample returns are available to share holders, the company is generating sufficient profits, and the financial situation of the company is sound and investors have confidence in the company and its financial position.In my surveillance over all the company has maintained a good level of profit even after an amplified amount of tax over the period of time. This has caused an increase in Earning per share of the company and eventually the market value of the company, which is avowed at 700% premium (Market value Rs. 80 per nominal value of Rs. 10 per share). The investors have confidence, which is reflected in the Price Earning Ratio of the company, which the company has maintained over the period of 8 years.The overall enhancement in the level of operations and market demand indicates that the company is moving on the right track even after facing rigid rivalry from i ts competitors. Atlas Honda has maintained a very low level of gearing and so far is unable to acquire market loans, which indicates low level of financial risk the company is exposed to. On the other hand this can hamper the potential available in the market by scarcity of the funds in the company when investment climate is good and market demands is high.In the Automotive industry Atlas Honda is still a market leader as far as the wealth distribution to the government is concerned. In the statement of value addition it is indicated that 69% of the company’s wealth had been distributed to the government as sales tax, income tax, import duty and workers welfare fund. Subsequent to the distribution the company has maintained sufficient levels of profit to distribute to the shareholders in the form of dividends. The company has continued to improve the net generation of cash and cash equivalents during the year causing the company to increase its cash resources.Positive inflow of cash from operations is a signal of company’s ability to improve the liquidity position of the company on a continuous basis. This is the main reason the liquidity situation of the company is very good. The analysis shows that the company is making headway well in terms of profitability, liquidity but as far as the capital structure of the company is concerned it is still at very low level of gearing thus hampering the opportunities available in the market and without exploiting the internal strengths available in the company.A high level of profits, good liquidity and sufficient working capital indicates that the financial situation of the company has improved over the period of time and is still improving. On the basis of the research and analysis work carried out I foresee that Atlas Honda will be more profitable over the period of time and will be able to exploit the opportunities available in the market. In my viewpoint Atlas Honda will remain to be the market leader for the coming years too. The company will also prove arduous to compete by new entrants in the industry.

learning journal Essay

A learning journal is a collection of notes, observations, thoughts and other relevant materials built-up over a period of time and usually accompanies a period of study, a placement experience or fieldwork. Its purpose is to enhance your learning through the very process of writing and thinking about your learning experiences. Your learning journal is personal to you and will reflect your personality and experiences. Structuring your learning journal A learning journal may be called several different things: a learning log, a fieldwork diary or personal development planner, for example. Different subject areas may ask you to focus on different aspects of your experiences and may also have a different format. A journal could be a notebook, an electronic document or sometimes can be recorded verbally on a tape. You will need to check which format is required with your module tutor. Why use a learning journal: To provide a ‘live picture’ of your growing understanding of a subject or experience To demonstrate how your learning is developing To keep a record of your thoughts and ideas throughout your experiences of learning To help you identify your strengths, weaknesses and preferences in learning Essentially, a learning journal helps you to be reflective about your learning, this means that your learning journal should not be a purely descriptive account of what you did etc but an opportunity to communicate your thinking process: how and why you did what you did, and what you now think about what you did. What is reflective learning? Reflective learning is a learned process that requires time and practice. It is also an active process: involving thinking through issues yourself, asking questions and seeking out relevant information to aid your understanding. Reflective learning works best when you think about what you are doing before, during and after your learning experience. Reflective learning is therefore not only about recognising something new (new learning), it is also about seeing reality in a new way. Reflection is an important skill to develop, and requires you to think about how you personally are relating to what is happening on your course, during your assignment, or in your placement. The following diagram illustrates the process of reflective learning.

Managing Risk

Abstract This analysis is to submit a proposal that the CFO and I can work on together to evolve into a policy that assists each Risk Management department. In this proposal we will develop a system to evaluate enterprise and financial risk. However, Due to the fact that there are two models that are inconsistent we will have to figure out ways to work together to get on the same page to reduce confusion and getting the job done. In this proposal I will illustrate how to use the ERM Framework to address risk, will discuss how to support the Insurance Marketing Process.Also I will discuss how to evaluate â€Å"Risk Bearing† and â€Å"Risk Sharing† activities, and how to assist in implementing a Workers' Compensation program that is fair and equitable. Developing a process to identify organizational risks will assist management in determining what risks can impact strategy and the achievement of organizational goals. Some of the same methodologies used to identify risks i n conventional risk management programs can be deployed in an ERM program and include both formal and informal methods. (Youngberg, 2011).A successful enterprise risk management (ERM) initiative can affect the likelihood and consequences of risks materializing, as well as deliver benefits related to better informed strategic decisions, successful delivery of change and increased operational efficiency. To use the ERM Framework to address risk, I will follow the 5 steps that organization uses to develop and implementing the ERM programs. Which is Identify and engage an executive-level champion, for any organization there should be someone in charge to make decision about certain policies or project.This will reduce migration and everyone will be in the same page. Second is to select a steering committee and working task force. â€Å"The benefit of the steering committee is to develop a timeline for program development. The committee meets quarterly to review and also to approve proj ect, receive status reports on existing project and to review strategic plan for organization†. (Youngberg, 2011). Third is to Review strategic plan for organization, which means organizations should be aware of the work strategic direction.You can’t be a team leader without knowing what’s your organization plan is. As stated in the course text: the strategy plan should be reviewed with the steering committee and the working task force to ensure that the goals and objective are clearly stated that ERM program support the existing plan, and that conflict do not arise† (Youngberg, 2011). Fourth is to Identify and review current risk-identification tools. Which mean the working task force should review all existence methods to identify risk.These methods may be internal or external to the organization and may be formal or informal. Last but not least, â€Å"the organization should be compile and share resource lists and reference materials, and identify subje ct-matter experts. For example, the working task force will be responsible for compiling the reference materials in an online library for easy reference†. (Youngberg, 2011). Also follow the surveys and risk interviewing method. To support the Insurance Marketing Process is to understand the steps and to have a better understanding of how the process works.What I would do is before beginning the marketing process with another organization I would find out what are the objectives and strategies for transferring risk to the commercial-insurance market place. We both should come together with an agreement and be aware of the current risk-financing plan before the process. Also to identify and analyze potential insures. If I have to choose whose will be my potential insurer, this candidate should meet all of the organizations objectives. It’s also my responsibility to collaborate with other potential organizations and which candidates will the best carrier to do business wit h.The steps that will be taking are: â€Å"Organizations should be reviewing exiting financial plan, identify potential markets, collecting data and lose information, reviewing loss forecast and prepare analytical summaries, developing program options. Finalize submission, submit to market, meet the underwriters, obtain quotations and perform comparative analyses, negotiating place policies and monitoring results and relationship†. (Youngberg, 2011). According to health affairs articles, Balancing Risk Bearing and Risk Sharing is a system that is entirely risking bearing.The primary purpose of a cost-allocation system is to encourage participation in risk management programs, reduce overall costs and the frequency and severity of losses, and share proportionately in the cost of the program. The easiest way to achieve this is by allocating the costs to the parties that generate them. A risk-sharing system allocates all medical liability costs in proportion to each departmentâ €™s exposure. The proper allocation system for most organizations lies somewhere between these two extremes. (Youngberg, 2011).The number of risk-sharing arrangements between health plans and providers grew rapidly. More recently, however, there is evidence that plans and providers in some markets are losing interest in developing new or continuing existing risk-sharing arrangements. Several factors appear to be contributing to this change: the financial instability of risk-bearing organizations; consumer and provider backlash against managed care; and an increasingly restrictive regulatory environment, which may extend to plan-provider contracting arrangements. (Marsha R.Gold. 2003). Risk sharing is attractive on several fronts. For plans, it provides a mechanism for controlling costs; for providers, it preserves their autonomy by shifting to them responsibilities for managing service use, costs, and quality. However, it also has a down side, particularly if the amount of risk transferred is large or payments are not commensurate with expected costs. (Kleffner, A. Drohetrty, N. 1996) Many provider organizations have little experience managing risk and lack the necessary infrastructure to manage it effectively.If the degree of risk transferred to providers is more than they can absorb, their continued viability, as well as that of plans with whom they contract, may be jeopardized. This in turns raises the likelihood that the level and quality of care available to enrollees could be negatively affected. (Marsha R. Gold. 2003). Base of what the most important factor to evaluate Risk Bearing† and â€Å"Risk Sharing† activities is whomever created the risk should be encouraged to participate in risk management cost and activities.From my perspective, worker’s compensation can be defined as all of the rewards earned such as direct financial compensation consisting of pay received in the form of wages, salaries, bonuses and commissions provid ed at regular and consistent intervals. Indirect financial compensation including all financial rewards that are not included in direct compensation and can be understood to form part of the social contract between the employer and employee such as benefits, leaves, retirement plans, education, and employee services.Non-financial compensation referring to topics such as career development and advancement opportunities, opportunities for recognition, as well as work environment and conditions by employees in return for their labor. In determining effective rewards, however, the uniqueness of each employee must also be considered. People have different needs or reasons for working. The most appropriate compensation will meet these individual needs.To a large degree, adequate or fair compensation is in the mind of the employee. A good compensation strategy includes a balance between internal equity and external competitiveness. Compensation and benefits affect the productivity and happ iness of employees, as well as the ability of your organization to effectively realize its objectives. It is to your advantage to ensure that your employees are creatively compensated and knowledgeable of their benefits. (Gomez-Mejia, L. , & Wiseman, R. M. 1997). ConclusionDeveloping a process to identify organizational risks will assist management in determining what risks can impact strategy and the achievement of organizational goals. There several tools to follow when working as a team, the two most common method is used in ERM program are surveys and risk interviews. If we’re going to work as a team we have to open-minded and be responsible and thoughtful. Communication is the key to be successful in a organization. Also following the five steps of developing and implement an ERM program can help an organization moves forward.

Chinese culture Essay Example | Topics and Well Written Essays - 750 words - 3

Chinese culture - Essay Example The Chinese cuisine dates back to thousands of years and has been subject to metamorphosis from time to time and from one place to another depending on climate, fashion and local preferences. The Chinese cuisine embraces both styles from different parts of China and a collection from other parts of the world. Over time, cuisines from other cultures have been integrated into the Chinese cuisine due to imperial expansion and trade with the outside world. The staple foods of the Chinese include rice, noodles, vegetables and sauce and seasonings. Styles in ancient Chinese cuisine differed because of class, region and ethnicity resulting in an unrivalled range of ingredients, techniques, dishes and eating styles, collectively called the Chinese food. This wide diversity and array of food traditions has over generations caused the Chinese to pride themselves on eating a wide variety of food while also remaining true to the spirit and traditions of the Chinese food culture. The Chinese have eight major culinary traditions. These include Anhui, Cantonese, Fujian, Hunan, Jiangsu, Shandong, Szechuan and Zhejiang cuisines. The styles are distinguishable from one another due to contributors such as availability of resources, climate, geography, history, cooking techniques and lifestyle. The Sichuan cuisine prefers baking while the Jiangsu cuisine on the other hand, favors braising and stewing. Many traditional regional cuisines employ basic preservation techniques such as drying, salting, pickling and fermentation. The Cantonese cuisine uses traditional cooking methods such as steaming, frying, baking and stewing and is engineered to offer sampling of a variety of different foods by the eater. Some of these dishes include lotus leaf rice, rice rolls, turnip cakes, buns, Shui jiao-style dumplings, stir-fried green vegetables, congee porridge and soups and so on. The Sichuan style, which

How are social media platforms redefining and revaluating the ties Essay

How are social media platforms redefining and revaluating the ties that bind us together - Essay Example This is depicted via as the author states that her whole life is now shifted via communication from the phone. This can be perfectly portrayed as the author narrates a situation in which a younger woman injures her thumb and needs a band-aid. But instead of knocking in her door, she sends the person a text to not intrude privacy (Turkle 264). This is beyond the comprehension as technology has truly taken over from all aspects, including doing easy tasks. Social media has overly taken an every human task and has automated it with a personalization. This same scenario can be correlated when the author discusses the situation with Rebecca, who was intrigued in pets. Her father suggested that she gets a turtle, but the realistically did not want to handle the intricacies of keeping a pet. Hence, social media has dramatically modified this by taking something humane and converting into a digital life form. It can also be dangerous because it makes us humanity lose intimacy, cut off human contact, but at the same time maintain a following for ‘x’ amount of friends and followers globally. Make no mistake, the author signifies the importance of this as he states, â€Å"The world, as we are told is in midst of revolution. The new looks of social media has reinvented social activism.†(Gladwell 134). Without a doubt, social media has created a lifestyle, just not a fad that aligns with the future roadmap in 2020. Soon social media will play a huge role in Artificial intelligence, a tie that binds us together because it creates a revolution, a unique following, unparalleled to anything we have witnessed. The second element that social media has added a tangible value to our lives. Social media has quantified our lives to an element in which our lives have a price value. Social media provides a way to research and connect with influencers that can be quantified

Case study project for Engineering Graphics & Design

Project for Engineering Graphics & Design - Case Study Example The study involved a case where energy storage system can detect the frequency of the power output, and controls this frequency automatically to arrive at the required frequency of the power output. The study assumes an introduction of wind power generation at 1/10 of the power system capacity, and investigates the use of energy storage using a dead band control, contrary to using a high-pass filter type of control. The proposed approach seeks to regulate frequency deviations resulting from power output fluctuations, as well as the respective fluctuations related to the system load. The study aims at understanding the results of a simulation concerning performance control and charge and discharge power on frequency deviations. Moreover, the study evaluates the total energy storage capacity of the battery that is fit to hold a specific range of fluctuations. The study assumed application of a battery system to store energy with a dead band to counteract the effects of frequency fluctu ations

The Bernie Madoff Scandal Case Study Example | Topics and Well Written Essays - 1500 words

The Bernie Madoff Scandal - Case Study Example This paper illustrates that the Bernie Madoff Scandal was discovered by one of the Modoffs’ son when Madoff decided to pay up to $7 billion redemptions or bonuses upfront after showing the inability to pay investors. The sons demanded to know the source of the funds and father admitted that his asset management arm of his firm was actually being operated as a Ponzi scheme in which new investments covered returns from the existing or earlier investments and personal wealth. Upon discovering the fraud, the son did what the unexpected and took up the matter with the federal authorities leading to the arrest of Madoff. Madoff revealed that he had run the scheme for approximately 20 years since the early 1990s. It was discovered that over the years Mr. Madoff was actually using money from new investors to pay returns to old investors creating a pyramid resembling a previous scheme named after Charles Ponzi. Although Mr. Madoff was operating within hedge fund industry, his fund was not a hedge fund, but endowments and foundations after the hedge funds invested heavily with his company. Madoff’s strategy to pay old investors with funds obtained from new investors enables his firm to satisfy the high returns promised to investors despite failure by the old investments to generate any returns. Investors expected that their funds were invested elsewhere by the company to generate returns, but Madoff deposited all the funds in his business account at Chase Manhattan Bank. In order to hide the reality in his company, he creatively came up with false transactions involving falsified SEC filing with the Securities and Exchange Commission and foreign transfers year after year. Modoff’s fraud dealings also most surfaced in 1999 when Harry Markopolos, a financial analyst-whistleblower alerted the securities and commission that his gains were impractical in the financial situation.