Sunday, May 24, 2020
Core Resources and Capabilities of Emerging Multinationals from Emerging Economies Free Essay Example, 1000 words
The multinational enjoy innovative capabilities due to access to superior technology that leads to the production of high-tech products for the niche market. Accordingly, multinationals from developed economies have well-established research and development teams that continuously monitor consumer demand changes such as changes in consumption patterns, shifts in tastes and emerging technologies that enable them to develop new products (Peng, 2013). Multinationals from developed countries have high access to financial capital in the international capital markets due to their ability to provide security for bonds and loans (Peng, 2013). Accordingly, multinationals from developed countries have a talented human resource base that includes cross-cultural teams thus facilitating entry into foreign markets and learning of the needs of cultural markets (Peng, 2013). In this case, the multinationals from developed countries are capable of establishing global partnerships in their wide netwo rk in order to facilitate new product development. A clear example is Hewlett-Packard and NCR that leveraged their business capabilities and transformed the production facilities to new technology innovation centers (Peng, 2013). Multinationals from developed countries have intellectual property rights such as registered trademarks, patents, copyrights and industrial design rights. We will write a custom essay sample on Core Resources and Capabilities of Emerging Multinationals from Emerging Economies or any topic specifically for you Only $17.96 $11.86/page
Wednesday, May 13, 2020
A medical exam is required for all immigrant visas and some nonimmigrant visas, as well as for refugees and adjustment of status applicants. The purpose of the medical exam is to determine if individuals have health conditions that need attention prior to immigration. Doctors Authorized to Administer the Exam The medical exam must be performed by a physician approved by the U.S. government. In the U.S., the physician must be a U.S. Customs and Immigration Services-designatedÃ civil surgeon.Ã Abroad, the exam must be conducted by a physician designated by the U.S. Department of State, also known as a panel physician.Ã To find an approved doctor in the U.S., go to theÃ myUSCIS Find a DoctorÃ orÃ call the National Customer Service Center at 1-800-375-5283. To find an approved doctor outside of the U.S., go to theÃ Department of State website. Admissibility Panel physicians and civil surgeons will classify an immigrants medical conditions into Class A or Class B. Class A medical conditions render an immigrant inadmissible to the U.S. The following situations are classified as Class A: tuberculosis, syphilis, gonorrhea, Hansens Disease (leprosy), cholera, diphtheria, plague, polio, smallpox, yellow fever, viral hemorrhagic fevers, severe acute respiratory syndromes, and influenza caused by novel or re-emergent influenza (pandemic flu). All immigrants, including those on an immigrant visa and an adjustment of applicants, must receive all of the required vaccinations. Those may include the following vaccine-preventable diseases: mumps, measles, rubella, polio, tetanus and diphtheria toxoids, pertussis, Haemophilus influenzae type B, rotavirus, hepatitis A, hepatitis B, meningococcal disease, varicella, influenza and pneumococcal pneumonia. Other disqualifying factors from admission include individuals who have current physical or mental disorders, with harmful behavior associated with that disorder, or past physical or mental disorders, with associated harmful behavior that is likely to recur or lead to other harmful behavior and those individuals who are found to be drug abusers or drug addicts Other medical conditions may be categorized as Class B. These include physical or mental abnormalities, diseases (like HIV, which was declassified from Class A in 2010) or serious/permanent disabilities. Waivers may be granted for Class B medical conditions. Preparation for the Medical Exam The U.S. Citizenship and Immigration ServicesÃ will provide a list of doctors or clinics that the government has approved to perform immigration medical exams. An applicant should make an appointment as soon as possible so as not to delay case processing. Complete and bring form I-693 Medical Examination of Aliens Seeking Adjustment of Status to the appointment. Some consulates require passport-style photos for the medical exam. Check to see if the consulate requires photos as supporting materials. Bring payment as indicated by the doctors office, clinic or as directed in the instruction packet from USCIS. Bring proof of immunizations or vaccinations to the appointment. If immunizations are needed, the doctor will provide instructions on which are required and where they can be acquired, which is usually the local public health department. Individuals who have a chronic medical problem should bring copies of medical records to the exam to show that the condition is currently being treated and is under control. Examination and Testing The doctor will examine an applicant for certain physical and mental health conditions. The applicant will have to remove clothes for the medical exam to do a full body review. If the doctor determines that an applicant needs more tests because of a condition found during a medical exam, the applicant may be sent to their personal doctor or a local public health department for further tests or treatment. The applicant is required to be completely honest during the exam and truthfully answer any questions posed by medical staff. It is not necessary to volunteer more information than is requested. The applicant will be tested for tuberculosis (TB). Applicants two years old or older will be required to have a tuberculin skin test or chest x-ray. The doctor may require an applicant younger than two to have a skin test if the child has a history of contact with a known TB case, or if there is another reason to suspect TB disease. If 15 years or older, an applicant must have a blood test for syphilis. Exam Completion At the end of the exam, the doctor or clinic will provide the documentation that an applicant will need to give to USCIS or the U.S. Department of State to complete the adjustment of status. If there are any irregularities regarding the medical exam, it is the doctors responsibility to provide a medical opinion and make recommendations one way or another. The consulate or USCIS has the final decision on final approval.
Wednesday, May 6, 2020
Boeing Internal Analysis Purpose This report discussed the components of internal analysis, competitive advantage, and strategic competitiveness of Boeing Company. This is done by analyzing the tangible intangible resources, capabilities, and core competencies in order to clarify BoeingÃ¢â¬â¢s strengths and weaknesses. Resources Exhibit 1 Tangible| Intangible| Manufacturing plants| BoeingÃ¢â¬â¢s digital design software| Composite and metal materials| Dynamic assembly line| Headquarters building| Ã¢â¬Å"Moonshine teamsÃ¢â¬ strategy| Machinery used for lean production| BoeingÃ¢â¬â¢s brand name| Financing/ Launch aid from NASA | | BoeingÃ¢â¬â¢s newest jet, the 787, is made out of composite plastics and carbon fiber in order to be more efficient and comfortable. We will write a custom essay sample on Boeing Internal Analysis or any similar topic only for you Order Now The new materials allow the plane to be pressurized at a lower elevation, which results in less jet lag. Also, the cabin humidity can be raised to around 20% because these materials do not corrode like metals. Through the use of lean productions, Boeing significantly reduced the cost of machinery used for manufacturing, along with inventory costs. For financial resources, Boeing received $12 billion from NASA to develop technology. They also received $1 billion in loans from Mitsubishi, Kawasaki, and Fuji for the development of the 787. Furthermore, Boeing had received launch aid from U. S. Government subsidies. Boeing has a reputation as one of the best manufacturers of commercial and military jets. Its strong brand and name represents the position in the aerospace industry. Boeing has encountered some scandals in upper management, however they are trying to restructure its reputation and make a comeback. Capabilities Exhibit 2 Capability| Valuable| Rare| Costly to imitate| Non-substitutable| Dynamic Assembly| Yes| Yes| Yes| Yes| Lean Production| Yes| Yes| Yes| Yes| Composite Materials| Yes| Yes| Yes| Yes| Lean production at Boeing was a very important and effective decision. They were able to design equipment that cost amazingly less and was much more efficient than the machines they were using at the time. A router was built for 0. 2% cost of their larger one and a drill machine was built for 5% cost of the previous model. They used a hay loader to put the seats into the planes, rather than using a crane, which reduced production time from twelve hours down to only two hours. Production of landing gear components took 32 moves over 10 months, but with the lean production strategy it only took 3 moves and the time span was reduced to 25 days. Dynamic assembly was an important change at Boeing as well. Before, planes had to be jacked into position at one station, worked on, down-jacked from the station, and moved with a power cart to the next station. This process could take up to two, ten hour shifts. By using a sled that drags the plane two inches per minute, Boeing reduced production time in half. Core Competencies One of BoeingÃ¢â¬â¢s core competencies would be utilizing composite plastics in the manufacturing of their jets. This is valuable because it allows them to build a jet that can travel faster, farther, and with more comfort than on previous jets. It can be considered costly to imitate because when Airbus built a model to compete, the A350, its performance was unable to compare to that of BoeingÃ¢â¬â¢s 787. The composite materials are non-substitutable because it is currently the highest grade technology jet manufacturing industry. It is rare because only Boeing and Airbus are in the commercial jet industry, and AirbusÃ¢â¬â¢s model cannot compare. Another core competency would be BoeingÃ¢â¬â¢s ability to use lean production. This is valuable because it allowed Boeing to free up 1. 3 million square feet of space and sell seven buildings by switching to a Ã¢â¬Å"just-in-timeÃ¢â¬ inventory. Also, they were able to reduce costs of equipment and speed up the manufacturing process drastically. It is socially complex because it uses numerous different strategies to create one finished product. There are no substitutes that compare to lean production as far as time and money savings, and it is rare because Airbus and Boeing are the commercial jet companies to use it. The third core competency is BoeingÃ¢â¬â¢s dynamic assembly line. This was a valuable change to Boeing because it reduced assembly time by 50%, or from 22 days down to 11 days. The planes move 80 feet every shift and lights determine the status of the assembly line. Dynamic assembly lines are costly to imitate and rare due to the size of the plant and the components used in order to pull such a large craft throughout the building. The only substitute of a dynamic assembly line is a static assembly line, and the dynamic one performs much more efficiently. Weaknesses * Ineffective top management Boeing was recently faced with the scandals which hurt the reputation of Boeing. The top management recognized the problem and tried to figure it out by effective management strategies. * Outsourcing In 1997, Boeing lost $1. billion against their earnings due to problems with the supply of critical components. They had to halt the production of the 737 and the 747. In 2006, suppliers for BoeingÃ¢â¬â¢s 787 fell behind schedule which resulted in a delay of production. Value Chain Analysis The industry value chain is the process from the suppliers of the raw material to the end customers who demand the service of transportation. Boeing found itself in the c rucial situation of having lost market share to Airbus. Boeing had to act in response by enhancing customer benefits to recapture an advantage over its competitors. The fundamental idea was an innovative renovation in the supply chain process, which would redefine BoeingÃ¢â¬â¢s role as a coordinator and integrator rather than simply the manufacturer. At the heart of the supply chain transformation process was the strategy to outsource more than 70% of the 787Ã¢â¬â¢s production. Boeing introduced new project management techniques by sharing risk with partners. The companies sharing risk transformed the entire 787 program. The risk shared by partners in investing their own capital in the 787 program cut approximately 55% of BoeingÃ¢â¬â¢s development cost required for the program, which was $6 billion. BoeingÃ¢â¬â¢s outsourcing process has dramatically reduced the manufacturing time from roughly two weeks to as little as three days. Saving such significant time greatly decreases labor and inventory costs for the company as outsourced components reach the assembly site with pre-fitted sub-systems. This approach streamlines and adds efficiencies to the assembly process. (Boeing value chain report, 2010) Competitive Advantage * Works more with both its customers and suppliers to design and build the best aircrafts on the market. RD departments which are able to design and implement better aircrafts which reduce the costs and make more efficiency. * Flexible work schedules for the employees. * BoeingÃ¢â¬â¢s name and brand bring a strong competitive advantage between Boeing and Airbus. Exhibit 3 Profitability ratios| Boeing| Airbus| Net profit margin| 3. 6%| 0. 3%| Gross profit margin| 18. 02%| 11. 95%| Asset turnover| 1. 1| 0. 55| Return on assets| 6. 16%| 1. 07%| The profitability ratios show that Boeing had a moderate and good profitability compare with other company (such as Airbus). The return of assets of over 6 % shows an overall strong earning power of BoeingÃ¢â¬â¢s total assets. Strategic Competitiveness Boeing has implemented outsourcing to build better and more efficient airplanes by using portions of other companiesÃ¢â¬â¢ knowledge and research with their own. This has helped them produce airplanes at a much lower cost. BoeingÃ¢â¬â¢s strategy was to develop the 787 at a very low cost. By doing this, Boeing believes it can compete with AirbusÃ¢â¬â¢ new Super Jumbo project. Boeing focused on medium capacity aircraft which can hold 250 people, whereas Airbus focused on super jumbo jets, which contain 550 people. Overall Boeing has achieved higher quality and efficiency. Boeing pins its hope on a different strategy and does not take the hub-and-spoke concept as a given. The Boeing 787 is the solution for non-stop, point-to-point flights between secondary cities. Conclusion BoeingÃ¢â¬â¢s ability to develop lean production, use of composite materials, and dynamic assembly methods are their strengths. Their weaknesses include poor upper management and unreliable outsourcing. In the future, Boeing needs to find higher quality upper management and more reliable suppliers. How to cite Boeing Internal Analysis, Essay examples
Monday, May 4, 2020
Question: Describe about the Impact of Material Misstatement on Profitability for A Case Study of Tesco. Answer: Introduction: Background of the company: Tesco Plc is the leading food retailer of Britain and this is the third largest in the world. Since the open its first store in 1929 in London, the company has been started pioneering many new innovations. For instance, Tesco has developed many new store concepts including Tesco Metro. The concept behind this innovation is meeting the needs of local shoppers in the form of city centre stores. A key ingredient to the growth of Tesco is the use of well-targeted own-label brands including the up-market Finest and low-price value labels. In the recent time, Tesco has successfully generated sales more than 700 million along with ensuring profits of more than 35 million (Tesco.com 2016). However, many of the financial researchers criticized the company for the presence of the risk of material accounting misstatement in the financial statement of the company. In the year of 2013-2014, the profit was overstated by around 250m and faced four suspensions of four executives. Problem statement: The preparation of the financial statement in a company is generally done by internal accountants, who are working under the advocacy of the management of the organization. This involves the intrinsic risks of management to be able to influence to the statement of the company, resulting financial irregularities or misstatement in them (Bhattacharjee et al., 2015). In several cases in the recent time, companies faced allegations due to aggressive misstatements found exceeds the overall materiality level which is the results of the misleading financial records. For instance, the profit of Tesco had been artificially inflated by 250m (Tesco.com 2016). In the case, the payments from suppliers were being non-booked and the costs of business were being overestimated for showing reduced profits for tax benefits (Chambers, 2013). The fact has learnt a lot of importance in necessary incorporation of all material facts while recording the financial records by several companies. Rationale of the research topic Unfortunately, several companies have allegedly involved in several kinds of irregular financial practices and represent the untrue picture to their investors. This is a critical concern for them for functioning efficiently in the capital markets. According to Wright (2016), managers of firms often misstated their statements of financials for ensuring short-term profitability. However, a missing comprehensive database of financial misstatements leads reduced returns of investors in the long term period and results investment debacle. Researcher implies that the accounting misstatement is the main cause for damaged reputations of the organization (Lobo Zhao, 2013). Hence, the discussion about the recent practice of accounting misstatements will highlight the associated risks. This may guide managers, financial advisers and internal accountants to develop business understanding, risk assessment and internal control. The chosen discussion will further help to plan a successful audit at the end of the financial record of the organization. Scope of the Review In this discussion, the researcher will explore the causes behind the misstatement of the accounting records along with identifying risks. Under the principle of the Internal Standard of Auditing 315, the research will understand the difference between the amounts, segregation, presentation or disclosure which is required for any item to be in accordance with the applicable framework of the statement of financial. To uncover the all immaterial facts and financial irregularities from the financial report of the firm, specifically in case of Tesco, will be the main purpose of the review of the literature along with addressing its effects on profitability of the business. Literature Review: Concept of Misstatement of materiality in Accounting: The concept of materiality is the principle in accounting which needs to be regarded and disclosed properly while maintaining the financial records properly. According to Lennox Li, (2014) materiality implies particularly the level of detail appropriate for several reports of financial and the significance of errors such as expenses related to the reporting , revenues, equities, liabilities and assets in unsuitable accounts or reporting them for inappropriate period of reporting. In ISA 315, the term misstatement is not clearly defined. However, the financial misstatement identified during the audit indicated in ISA 450 that a difference between the amount, classification, presentation or disclosure of a reporting financial statement item and the amount, classification, presentation or disclosure that is required for the item to be in accordance with the applicable financial reporting framework. It is mentioned by the regulatory bodies of the accounting that the practice of irregularities or misstatements can be the cause of fraud or error. On the contrary, many times misstatement arises while the financial analysts, auditors find differences between the figures which are reporting at the end of the reporting period and what is likely to be reported in order for the financial statements to be fairly viewed (Eilifsen Messier Jr, 2014). The misstatement in accounting can be factual when a clear violation of a requirement of the reporting standards takes place by a reporting entity. Tescos overstated accounting statements of 250m are the perfect example of the unsustainable estimation technique or the practice of inappropriate policies of accounting (Chambers, 2013). The lack of internal control over the management and the clear knowledge about the materiality are the fundamental reasons of the accounting misstatement. IFRS has made an effort for developing a single set of high quality and the globally acceptable standards of the financial reporting. In determining the relevance of the financial information, firms need to disclose all necessary information at the end of the financial period (Hribar et al., 2014). Before disclosing the material facts, a reporting entity needs to clearly address omission and irregularities in reports of accounting and in business case analysis (Li Ma, 2015). For example, the statement of income is beneficial for stockholders, management and the board of directors for assessing the profitability while taking judgmental decisions about investing, managing and evaluating financial and management performance of the company (Blankley et al., 2014). Therefore, the sensitiveness of the material misstatement holds a lot of significance of maintaining the accounting consistency of the financial records of the reporting entities to being considered as the global entity. In short, the concept of materiality is a recognized, structured accounting convention. However, accounting practitioners are often gets co nfusion with the presence of historical costs convention. A lot of disparity takes place of the reporting entity are followed historical perspective because it recorded at the price prevailing when the financial transactions are made and the costs of the assets are valued at the cost of the original. According to Glover et al., (2015) the historical costs are generally calculated and approved objectivity with a bit of uncertainty. On the contrary, the accounting practitioners have taken more subjective consideration while measuring and valued for the purpose of maintaining the authenticity for the accounting purposed. Here all subjective judgmental decisions shall be taken by accountant, auditors, and people from management as well as the board of directors and management (Skaife et al., 2013). Here the common interest is making profitability and thus an appropriate accounting statements needs to be recorded at the end of the reporting period. Risk associated in material misstated by firms: Tesco, the biggest super chain market of Britain has been go down into financial crisis when four executives of the organization found guilty and discovered its artificial inflated account by 250m. The forensic accountants and lawyers had been found that the company cleaned off the value of the account of more than 2bn from their financial books of account. This had been one of the biggest incidents of material misstatement in the recent times. The business misleadingly boosted their profitability by showing 250m in the initial six months of the fiscal year of 2013-14. With the falsification of account, the company had lose the market hold in the local market because most of the shareholders deprived from getting the adequate returns and later anticipated to make half of the estimated profits due to sudden financial crisis. The seriousness of the fact got wider when the profit figure fall further along with the share prices by 11.5 percent to the eleven years low. This piece of reali ty has clearly indicated that the misstated financial statements are directly impacts on the profitability. The firms reputation is simultaneously be halted due to such inappropriate presentation by the reporting entities like Tesco in the year of 2014. Therefore, it is important to assess the risk of material misstatement to avoid such financial irregularities. Without the sufficient knowledge about the audited entity, it is impossible to assess appropriately the risk of the material misstatement (Chan et al., 2012). ISA 315 stated that auditor normally obtained five aspects while auditing the statements of the financial of reporting entities. Firstly, the accounting statements are vouched considering the relevant industry, regulatory and other relevant factors externally which are applicable under the framework of the financial reporting. Secondly, the auditors need to assess the nature of the entity including its operations, the structure of the ownership along with its governance (Brazel et al., 2016). Thirdly, it is important to study the approach and the application of the policies of accounting. Fourthly, the objectives and strategies of the entity are the important factors to assess. This will help to observe the associated risks that may result in risks of material misstatement. Fifthly, the internal approach of measurement of the a ccountant of the company and the financial performance of the entity needs to be considered by the regulatory bodies or auditor of the company at the preparation of the financial report. To be implied an effective risk assessment strategy, it is an important requirement as per IAS 315 that the auditors need to be obtained knowledge about the internal control relevant to the audit. According to Asare Wright, (2016), this is the vital step in the assessment of the material risks because an audit risk needs to be controlled if it is not prevented on the basis of the internal control. On the contrary, the mechanism of the internal control can be considered an effective tool for assessing material misstatement if each of the following items documented by thee auditor properly: The environmental control mechanism The procedure of the risk assessment The financial process of the business, relevant to the reporting aspects and communication The control activities practiced by the entity The monitoring activities Based on these entire framework, the material misstatements will be assessed by an effective internal control processes. However it is a matter of fact that the capability of the particular auditors risk assessment approach is completely a individual professional approach. Impact of material misstatement on profitability: In a small reporting entity, the documentation on internal control is likely to be a simple compare to the large entity. Here the operation related to the purchase and sales needs to be documented for reducing the material misstatement that can be raised due to the lack of control in that place (Chan et al., 2012). Though the profitability of the smaller organization may be limited but the specific risks are definitely associated with this company such as the scope of the management override, the restricted scope of the classification of duty and the lack of control of the authorization. All these factors of material misstatement are directly impacts on the profitability. Conclusion Based on the above literature review this can be concluded that the misstated facts of the statements of the financial can be restricted or prevented by an effective application of the internal control mechanism along with the sound application of the guidelines provided by the IAS 315. Under the IFRS rules, all reporting entities are must focus on the nuisance of the documentation. Here the procedures of risk assessment should be incorporate inquiries of management and other individuals, observations and so on. The discussion of the research topic clearly stated that misstated statements practiced by the organization may be intentionally or unintentionally. Tescos overstated profit figure is the perfect example of the intentional approach of the material misstatement. To restrict all these practice, the reporting entities must follow an effective internal control within their organization. References: Asare, S. K., Wright, A. M. (2016). Inferring remediation and operational risk from material weakness disclosures. Behavioral Research in Accounting. Bhattacharjee, S., Maletta, M. J., Moreno, K. K. (2015). The Role of Account Subjectivity and Risk of Material Misstatement on Auditors' Internal Audit Reliance Judgments. Accounting Horizons, 30(2), 225-238. Blankley, A. I., Hurtt, D. N., MacGregor, J. E. (2014). The relationship between audit report lags and future restatements. Auditing: A Journal of Practice Theory, 33(2), 27-57. Brazel, J. F., Jackson, S. B., Schaeffer, T. J., Stewart, B. W. (2016). The Outcome Effect and Professional Skepticism. The Accounting Review. Chambers, D. (2013). Overstating the Satisfaction of Lawyers. Law Social Inquiry, 39(2), 313-333. Chan, L. H., Chen, K. C., Chen, T. Y., Yu, Y. (2012). The effects of firm-initiated clawback provisions on earnings quality and auditor behavior. Journal of Accounting and Economics, 54(2), 180-196. Eilifsen, A., Messier Jr, W. F. (2014). Materiality guidance of the major public accounting firms. Auditing: A Journal of Practice Theory, 34(2), 3-26. Glover, S. M., Hansen, J. C., Seidel, T. A. (2015). The effect of deadline imposed time pressure on audit quality. Available at SSRN 2561713. Hribar, P., Kravet, T., Wilson, R. (2014). A new measure of accounting quality. Review of Accounting Studies, 19(1), 506-538. Lennox, C., Li, B. (2014). Accounting misstatements following lawsuits against auditors. Journal of Accounting and Economics, 57(1), 58-75. Li, B., Ma, C. (2015). Can Audit Fees Inhibit Accounting Misstatements? Moderating Effects of Auditor Reputation from Chinese Experience. Moderating Effects of Auditor Reputation from Chinese Experience (January 27, 2015). Lobo, G. J., Zhao, Y. (2013). Relation between audit effort and financial report misstatements: Evidence from quarterly and annual restatements. The Accounting Review, 88(4), 1385-1412. Skaife, H. A., Veenman, D., Wangerin, D. (2013). Internal control over financial reporting and managerial rent extraction: Evidence from the profitability of insider trading. Journal of Accounting and Economics, 55(1), 91-110. Tesco | Online Groceries, Homeware, Electricals Clothing. (2016). Tesco.com. Retrieved 7 October 2016, from https://www.tesco.com Wright, W. F. (2016). Client business models, process business risks and the risk of material misstatement of revenue. Accounting, Organizations and Society, 48, 43-55.