Sunday, February 16, 2020

Business Environment Essay Example | Topics and Well Written Essays - 1250 words - 2

Business Environment - Essay Example These elements may include leadership and management, clientele, technological factors, rules and regulations of a government, competition, financial planning. In addition, marketing strategies, demand and supply within the area of business, the economic inclinations are other factors that influence the business environment (McNamara 1999). Therefore, the is a distinction in both the purpose and objectives of different types of organizations within any business environment. This determines whether the organization is profit or nonprofit based (McNamara 1999). Profit organizations have the sole purpose of generating profits, such that the amount of money the organization is taking out should be less than the amount of money the organization is taking in (McNamara 1999). In addition, the organization leaders or owners may opt to hold s larger portion of the returns after deducting all the expenses such as salaries and benefits to employees, bills, among others (McNamara 1999). Addition ally, in the profit organizations, the management may choose to cut back on running costs in order to maximize profits. For example, the organization may choose to cut back on personnel in case the management feels that they do not require as much personal or in case they want to incorporate more technological advancements (McNamara 1999). In general, the management has the overall decision making capacity and formulate plans that enable the organization maximize on its returns as it acquires its market share within the economic sector. As a result, marketing strategies become vital for profit organizations as its main goal is to maximize its returns through reaching to a larger clientele (McNamara 1999). Examples of profit organization include Coca Cola, Microsoft, Apple, Samsung, among others. On the other hand, the sole purpose of nonprofit organizations is to benefit the society. They are mostly created for specific tasks such as religious, educational, or charitable (Carter 200 8). For the sole purpose of nonprofit organizations is to serve the community, they operate under strict rules and regulations that ban the owners of the organization from taking the profits for their own gain. This means that, nonprofit organizations have laws that allow them to operate some business activities although the proceeds obtained are to benefit the community (McNamara 1999). Therefore, the profits obtained from the business activities is recirculates into the organization in order for it to achieve its mission and objectives for the community (Carter 2008). Therefore, nonprofit organizations not only run some business activities but they obtain their funding from donations from the public or grants from other organizations. The examples of nonprofit organizations include research institutes, foundations, public schools, public universities, museums, public hospitals, professional associations, among others (Justia 2013). Typical real world examples include Red Cross, UN , (Justia 2013). Any organization, whether profit or nonprofit formulated objectives and missions targeting a particular group or clientele. Therefore, any organization has responsibilities to reach their targets. For instance, in case the organization is profit based, then its responsibilities will vary from making sure of the

Sunday, February 2, 2020

Lasting Impression Company Case Study Example | Topics and Well Written Essays - 1000 words

Lasting Impression Company - Case Study Example pply for the installation of newer presses that would enable the company to meet its goals and also produce prints than the previous versions by the older presses. At the current moment, the company has considered the sale of the older presses in favor of acquiring newer versions. However, in this case, two versions of presses are available from which each, A and B, have differing output qualities. For example, press A is considered to be highly automated and selling at $830,000 with an installation fee of 40,000 while press B has a purchase price of $640,000 with an installation fee of 20,000 considering it is not as sophisticated as press A. Analytically, press A is of higher value than press B due to its capabilities in producing prints of higher quality. However, when considering its value after five years after purchase, it will have depreciated to less than 50% of the current purchase as it would be legible to trade at $400,000 which is $15,000 less than the 50% mark on its current value. When considering press B, its current value is $640,000 and will be valued at 330 after five years before taxes. Considering the current value and the future value, press B would be of higher value considering the current rate of depreciation. After depreciating to $330,000, press B would have depreciated by 48.4275% which is higher than the depreciation of press A of 51.8072%. When considering the initial investments, operating cash inflows, and terminal cash flows of each of these presses, press A has higher investment as it has a purchase price of $830,000 and an installation fee of $40,000 making its total investment $870,000. On the other hand, press B has a smaller investment budget as it trades at $640,000 and has an installation fee of $20,000 making its total investment $660,000. With reference to the operating cash inflows, press A seems to have a higher cash inflow considering it is in its best functionality for the five years before it is considered a candidate