Samsung Key Drivers For Future Growth Management Essay

Samsung Key Drivers For Future Growth Management Essay The involvement of Samsung in electronic and mobile market needs them to survive within the industries for the next 20 years. In the other it means that Samsung have to set their key drivers that can allow them archive as well as a benchmark for the future growth. This key driver also is based on Samsung achievements and capabilities that they have now and then to continue with adding some more new keys to guide them to realize their vision and mission. The keys driver for Samsung future growth is also known as their sustainability in present towards the future. Focusing on Samsung Electronics, Samsung sustainability showed that their performance in surviving the industries and can be also as a benchmark to survive in the future. According to Nidomulu and Prahalad (2009) company that make sustainability a goal will achieve competitive advantage in the future , that mean rethinking business models as well as technologies, products and processes. In 2010, Samsung sustainability perform ance and plan focusing on talent management, integrity management, green management, social contribution, partners collaboration and products/services. For 2011 they set 9 material issues as a guidance to sustainability in future growth; (1) Creative Organizational Culture (2) Employee Health and Safety (3) Integrity Management (4) Increasing Social Contribution (5) Patent (6) Climate Change and Energy (7) Water Management (8) Mutual Growth (9) Supplier CSR(Corporate Social Responsibilities) based on Samsung Electronics Sustainability Report 2012. 4.1 Samsung Electronic 2011 Sustainability Plan For Talent Management plan in 2011, Samsung plan to, introduce telecommuting/ work at home scheme for married employees, increase percentage of female executive, set up idea proposal system at oversea research centers and hire new recruits with disabilities. Samsung plan on Integrity Management was to improve compliance program also related activities, declare compliance management and signing of the compliance agreement by employees. Instead of talent and integrity management Samsung also focus on Green Management plan which the plan to set 96% ratio of Eco-product development, set long/mid-term targets for water management, build a global environmental management system and support for outside country partners environment management system. In developing Social Contribution Samsung plan to introduce new regional social contribution based on global guidelines (Samsung Hope for Children) and to create tools in assessing impact of social contribution programs. Samsung needs a supporti ve partner in order to help them achieving their vision and sustain. Partner Collaboration plan for 2011 is to sign agreement for mutual growth as well as conducting monitor on progress in mutual growth and assess partner companies CSR (Corporate Social Responsibilities). The last plan for products and services are to expand outside country service centers and have more subsidiaries company and receive Korea as well as international awards for their products and services. The plan of sustainability was create in 2010 and will be apply in 2011. Samsung key drivers are based on their stakeholder, environment and their threat. It now translate to 9 material issue to be more focusing on that particular factor that can drive them to sustainability in future growth. 4.2 Samsung Electronics Sustainability Reports 2012 Samsung Electronics Sustainability Reports 2012 is based on performance in 2011 and the plan that to be apply in 2012. Samsung rank in 73rd in the most sustainable corporation in the world. Samsung Electronics core business including of the manufacture and sales of digital media devices (mobile phone, digital TVs, refrigerators, air conditioners, monitors, printers and communication systems) and components (memory chips). Instead of Samsung headquarters in Korea they now have nine subsidiaries in certain region in the world which responsible in managing production and sales. Beside their successful in hardware manufacturing, Samsung is will become the new leader of the IT industry when they started strengthening theirs soft power capacity. As their vision to realize which includes achieving targeted sales of USD 400 billion, becoming one of the 10 most admired companies and one of the top 5 global brands and in the world. Samsung Electronics manages theirs businesses base to Samsung different types in technology, consumers and market in Device Solutions (DS) or Digital Media and Communications (DMC) division, consolidating their independent operating structure. Digital Media Communications is gathered into Consumer Electronics (CE) and IT and Mobile Communications (IM) divisions. The Consumer Electronics division is in charge of home appliances department and visual display business department. The IT and Mobile division is took charge of managing IT Solutions, wireless businesses, Network business, the Media Solution Center and digital imaging displays . This strategy gives changes which were made to the employment in hiring of soft power experts that become more value than before in the Smart era. They had announced their intention to do a technical shift by turn to a soft driven company and made a Software center to increase their software capacity until its on a right track with their world most wanted manufacturing. Shifts in the Device Solutions (DS) divi sion can also bringing extension of the organizations in charge of controller, software and solution development to make sure different teams. The extension of the software connected organizations was made to realize Samsung Electronics vision of creating experience and new value by merging Samsungs strength in hardware design together with an emotionally attracting user interface and optimized software. Samsung Electronics also enhanced the organization took charge of medical and bio device business then they expanded the Bio Lab at Samsung Technology Research Center into the Bio Research Center. They also appointed bio material experts to consolidate their research in the area and upgraded support for bio medical and bio similar research. Samsung Electronics Division Market Share (%) source Samsung Electronics Sustainability Report 2012 They plan to become IT industry restructuring due to the appearance of cross-sector industries and resumed global economic decline. Samsung Electronics plans to make the largest investment ever to tighten the competitiveness advantages of present businesses and set up the foundation of new businesses potential to drive Samsung especially in Electronics Industries growth in the future. In 2011, they invested KRW (Korean Won) 13 trillion in facility expansion for semiconductors manufacturer and KRW (Korean Won) 6.4 trillion in display panel manufacture (10% greater investment than originally planned). They also building R5 (new research center) which is now under construction in the Samsung Digital City (estimate completion 2013) the landmark of IT and RD will estimate have more than 23 thousand researchers. They also plan to combine more than 15 core component research centers including their memory, semiconductor and LSI research centers. The new center will give the foundation for t heir research and development in existing product and for the next-generation display technologies and the new non-memory semiconductors. For the future Samsung Electronics is on establishing a bio-business and medical. For medical industry they invest KRW (Korean Won) 1.2 trillion in expecting sales of KRW (Korean Won) 10 trillion by 2020.. They were also nurturing a bio-similar (bio medicine) and already developed a digital x-ray that using visual information processing and digital technologies in photo-taking. Quintiles (Samsung Electronic Subsidiaries) had established Samsung Bioepis in 2012 and Samsung Biologics in April 2011. In 2016, Samsung Bioepis will start global sales of Bio-similar products and manage international clinical testing. The bio-similar business capacity will consisting of product licensing, manufacture development, clinical testing, and sales capacity. For software development strategy they increase the number of software engineer in order to meet their software development capacity. In order to realize their vision and future growth Samsung has; (1) started the software development to produce more appropriated and smarter software for Samsung gadgets and devices. (2) Initiated the Media Solution Center in the Silicon Valley, America that specializes in software to build service development and capacity on content. (3) Operating training programs and recruiting talented software engineers to maximize their capacity.(4) created a new engaged employees group S to conduct core software experts in operating systems, smart TV software and mobile apps ( August 2011). (5) Created a special talent-based employing process for software (S workforce group) alternative of a more standardized process that exactly like to RD staff employing. Samsung created a new Software Academy (for short-term training) that has the ability to train for more than five thousand employees in order to achieve 50% of software training needs. 4.3 The Live Smart Product and Samsung Stakeholders People nowadays tend to the term Smart Work, new office working style using the mobile device and Internet. It is assist people to enlarge the scope of collaboration also to improved work productivity. They produce notebook of 50% thinner with transition between application and faster start-up (application of file storage between smart devices and PC). Eco-driver Printer function which saves toner usage with the same quality. The function of Eco-simulator can also save electricity and paper. The smart printing application is enables direct printing from mobile devices (smartphones and tablet PCs).In Smart Life even you are not at home Samsung give your chance to control your air conditioner, washing your cloth and even clean your house . All of Samsung appliance can save electricity and assist your in house job. Samsung Smart Robot Cleaner (based on vacuum technology) has cleaning efficiency of 93% with extended battery life by 30% it is equipped with on-board camera (for smart view function) also with the function of video conference. Samsung Smart Refrigerator assist people to manage food using the touch screen interface that connect to online store (Food Manager Application) Samsung Electronic Domestic and Overseas Workforce 2009-2011 (Source Samsung Sustainability Report 2012) Samsung actively reported their quarterly business results, Corporate Social Responsibilities CSR policies and achievements with their shareholders and investors. The Social Responsible Investment (SRI) companies always make a visit the Samsung Electronics Headquarter in Seoul Korea to discuss CSR issues that equivalent to the electronics industry. They discuss about environmental management targets, waste management and occupational safety issues. In 2011 customers inquiries increased dramatically on Samsung Electronics CSR. Samsung created online open communication platform (LiVE) for employees of all ranks. The LiVE platform allow all employees to post memos, give opinion and communicate among themselves in real time for fast responses/ NGO (Non-Government Organizational) always collecting information, conducting interviews with executive and make site visits to Samsung Electronics. Samsung Electronics has been actively responses to past various issues raised by NGO and always remain communicate with them. Sharing growth among large companies and SMEs (Small Medium Enterprise) was the Government South Korean policy focus in 2011. Samsung Electronics joined in a public-private dialogue by the Shared Growth Committee, be a member of Korea Business Council for Sustainable Development, and actively communicated their opinions on energy-related and climate policies. Samsung Electronics has made variety communication channels to collect opinions from their suppliers. Their supplier grievance and complaint ha ndling system allow them to state their problems and find solutions. They were also responding supplier opinions and collected through seminar and training sessions. 4.4 Samsung 9 Material Issues as Key Driver for Future Growth The previous three years, Samsung focus their sustainability six key performance area including talent management, integrity management, green management, social contribution, partners collaboration and products/services s. However, they have decided to comprise global issues that have the potential to affect their business activities as well as its overall competitiveness in order to gain relationship with their stakeholders. Nine key issues have been selected through the process; Creative Organizational Culture; Employee Health and Safety ; Integrity Management ;Increasing Social Contribution; Patent ;Climate Change and Energy ;Water Management ;Mutual Growth; Supplier CSR 4.4.1 Creative Organizational Structure The first key driver for future growth is the creative organizational structure it include the work life balance through work smart; establishing a work culture that encourages learning and development; talent-based recruiting of software and design experts; and diversity management (female employee disable employee, global diversity) in establishing a work culture that encourages learning and development Samsung electronics improving productivity by applying a flexible work schedule, effective time management as employee can arrive at work between 6.00 am and 1.00 pm. Through Creative Development Research Institute System, Samsung provide their employees with opportunities to attain creative new ideas which take professional incenses and all advantage of their talents towards that encourages taking risks. This system encourages Samsung employees to develop creative idea. During the system they are free from their core job and no penalty occurs if the employee not achieves the goals. The first product came from the institute is the eyecan for disable user substitute for pc mouse. Samsung aggressively hiring most talented software engineer in order to archive their goal and vision. In diversity management Samsung hiring more female worker due to flexible working for those whose have small child to take care. The flexible work allowed them to work at home. Beside that Samsung also establish in house child care facilities for their workers. Samsung show their concern on hiring the disable employee and for now they have 1,100 disable worker in the othe r hand Samsung help them to develop their carrier and give them opportunity to live in better business world and society Source Samsung sustainability report 2012 4.4.2 Employee Health and Safety To help employees monitor their health, Samsung Electronics provides annual health checks. Their employees have opportunities to get advice with health experts like doctors and nurses. The leading problem for employee is work stress that risk to personal health also business management. Samsung operating consultation centers, conducting meditation programs and yoga lessons, and volunteer activities to help their workers remain productive in a supportive working environment. Their effort is also in establishing Musculoskeletal Disorder Prevention Center, hiring full-time sports science experts teams, publishing a safety guide on non-work related activities and establishing Employee Health Research Center. The Employee Health Research Center is focusing on 4 areas of research including, analysis of new production processes as well as materials and epidemiology, toxicology of hazardous materials, the work environment ,with a vision of becoming an industry leading occupational health and environment research center. The role of Health Research Centre (Source Samsung Sustainability 2012) 4.4.3 Integrity Management Samsung Electronic integrity management focus on established compliance team towards for realizing their vision in expansion global market. In 2011, they have expanded their Global Legal Affairs Compliance Team from two hundred to two hundred seventy employee for more effective operation. The compliance program divides to 3 compliance awareness that is prevention, monitoring and follow-up. In prevention awareness it is include of employee education, compliance manual, compliance self-test system, operation of a help desk, sensing on laws and regulation and report. The monitoring process focusing on regular and non-regular monitoring by members of compliance organization units. The last component is the post management/ follow up that consist analysis of case of incompliance to identify improvement measures and employee training for prevention of recurrence. In order to establish on internal awareness compliance Samsung has to strengthen and developed the training program for existing and new employee. 4.4.4 Increasing Social Contribution The economic crisis nowadays result to the bigger gap between rich and poor, as well as the increasing unemployment rate, bringing high demand for more responsible capitalism. In the other point of view, the society is demanding the business sector to take action and responsibility for problems occur instead of depending on the government. Rely on that, Samsung Electronics believes that they must take responsible in remaining and improving the sustainability of local communities in within their area. Samsung Electronics has their own mechanize to increasing their fundamental contribution programs in volunteer activities and donations. One of their programs is Samsung Hope For Children that has been conducted in 30 countries with different 9 regions. The program focused on supporting education and good health of youth and children. As same also on Samsung subsidiaries in different countries managed various support programs including low-income youth health benefits, youth education su pport and job trainings, designed for needs of the children and youth of local communities. The other social contribution that has been conducted by Samsung Electronics in South Africa are employees volunteer program (employee sent to Sudan, Zambia), engineering academy, solar energy lantern and solar internet school. 4.4.5 Patent The patenting issues on technology now is major problem from preventing imitate of Samsung Electronics product. They have failed in defending their designed against Apple and have been sued in total USD 1 billion. In addition, as the competition in IT technology is ever emphasizing, while the intention of various IT technologies is in trend, the patent resists are bound to become aggressive. Besides that, the rapid technology innovation cycles that has increased patent competition. Samsung Electronics increased the strength of their workforce importantly and reorganized the patent related organization for purpose to protect their know-how in technology .To sustain in technology competition in 2010 the rapid decision making resulting in establishes the Intellectual Property Center (IP Center), that affiliated with the Samsung Advanced Institute of Technology ( including hiring outside expert Samsung strategy on securing pattern issues is by partnerships. Samsung Electronics proved the huge strength of their patent protection portfolio by signing cross patent contracts which allow a broader cross use of patents with other global IT companies. They collaborate with Qualcomm (mobile phones), Rambus (entire semiconductor products), Sharp (LCD panel module) and in Kodak (camera technology), and in 2010, also followed by deals with Microsoft (MS) and IBM for the cross license of technologies of the mobile phone operation system. The same strategy also applied by Samsung in using pattern license of Google Android operating systems. From the partnership they also gain new innovative in production future technology. 4.4.6 Climate Change and Energy Concerning of Climate change has become one of the most important global issues. Climate change is already causing many people in daily lives with unexpected weather conditions, flooding and draughts, the function of greenhouse gas (GHG) management has become a key challenge for the global community due to reduce the impact on climate change. Samsung Electronic has establishing Climate Change Mitigation System EM 201 in 2009 They also established a greenhouse gas emission management system that can monitors direct and indirect emissions connected with all business activities including global partners, logistics, manufacturing, product use and workers work related travels. Samsung are carefully monitoring each source of Greenhouse Gas emissions and getting reductions to fulfill their corporate responsibility (CSR) in reducing climate change. Product energy efficiency improvement makes reduction average energy consumption of products by 40% and achieving 0.5 W of standby power by 2013. Supplier support is for the establishment of global suppliers GHG inventory system by offering training and expertise sharing to global suppliers. Implementation if energy management system and establishment of internal energy efficiency certification system subjected to all business sites in Korea. Incorporation of GHG reduction facilities is the reduction F-gas emission from the semiconductor and LCD manufacturing. Samsung Electronics low carbon product certification winner is on LED TV, Note PC and semiconductor Low Carbon Product Certification Winners (Source Samsung Electronics Sustainability Report 2102) 4.4.7 Water Management The other major factor and issue in this key driver in future growth is how Samsung can manage the water sources (Water Management). Samsung semiconductor manufacture is responsible on daily consumption 0f 7500- 15000 tons of pure water. As a leading semiconductor manufacturer, Samsung is now on high responsible in water management in order to maintain water resources. Samsung Electronics Water Management Resource policy recognizes the importance of water resources in the sustainability of business and society management, and provides to its protection as a responsible corporate citizen of worldwide community. According to Samsung Electronic Sustainability Report 2012, there are several of code conducts; (1) Strive to minimize water risk impact by our business activities. Analyze the impacts of our products, production activities and services make on water resources and minimize risks by identifying and implementing new technologies; (2) instill an awareness of the importance of water resources as a part of our corporate culture. Integrate the importance of water resource protection and sustainability management into the corporate culture and ensure responsible water resource management by employees with the highest consideration for the impact on local communities and the environment. (3) Proactively cooperate with public water policies. Proactive ly contribute to the establishment and implementation of water resource management policies by international institutes; the government and local authorities in line with relevant guidelines; (4) disclose our policies and activities on water resource management. Disclose company policies and activities related to water resource use to stakeholders including local communities in a transparent manner. 4.4.8 Mutual Growth Samsung Electronics expanding their support programs for outstanding 1st tier suppliers to become worldwide companies, and we start providing different support policies for 2nd and 3rd -tier companies to achieve shared growth. They developed key programs to support supplier shared growth including technological supports, training, also provision of support funds. They then strengthened communication and more carefully listened to their suppliers through an effort including a visit by top management to their suppliers. Samsung announced shared growth implementation policies; financial support programs for 1st and 2nd tier suppliers, support for 2nd tier supplier competitiveness building, increased trade opportunities, technology innovation contest, cultivation of global SMEs (Small Medium Enterprise) and incentives for 1st tier suppliers with good shared growth practice. According to Samsung Sustainability Report 2012 they also plan take different kind of shared growth promotion meas ures including co-development of core parts for boosting the competitiveness of suppliers, inclusion of shared growth performance indicators in performance assessments of our employees responsible for supplier collaboration and responsive adjustment of raw material price changes in supply contracts, free use of patented technologies, support for patent registration of new technology developed by suppliers. Shared growth management implementation plan focus on ; establish a supplier support fund ; elevated qualified 2nd and 3rd tier suppliers into 1st tier supplier ; cultivate global SMEs ; implement fast-track Temporary Supplier Registration Policy for SMEs with Innovative ideas or new technology. As for the share growth on expected benefits to suppliers is focusing on; funding for investment in facilities and R&D; access to greater supplier benefits, improved credibility in market; strengthened reputation as official partners of Samsung electronics; increased business opportunities for companies without prior business relationship; increased sales of supplier products with funding and technical support; more transparent and responsive communication between suppliers and Samsung 4.4.9 Supplier CSR (Corporate Social Responsibilities) Samsung Electronics is enduring by the EICC (Electronic Industry Citizenship Coalitions) basic code of conduct as a guideline for fulfilling their CSR (corporate social responsibility). They have provided the development of a CSR management structure by supplier companies and incorporated CSR activities as a part of their supplier evaluation criteria to further incentivize their participation in CSR activities. Samsung also applied a 3rd party validation program of supplier CSR activities. Developing Corporate Social Responsibilities activities is a part of supplier evaluation of Samsung Electronics. They have been managing annual supplier evaluations using criteria consisting technological competitiveness and other internal criteria to identify leading suppliers. In additional, the company has provided financial support and collaborative technology development opportunities. In 2011, Corporate Social Responsibilities achievements and activities have been a part of the evaluation cri teria previously; they increased their importance in the overall evaluation. The CSR activity evaluation criteria including 20 different areas covering the EICC (Electronic Industry Citizenship Coalitions) basic code of conduct, consisting a ban on environmental management , child labor and occupational health and safety.

Lotus Car Rental Essay

The Lotus Rental Car company is the world’s leading company in a multimillion dollar industry and can take this great opportunity to provide the consumer with alternative options in vehicles by adding alternative fuel vehicles to its fleet in Los Angeles, California, it would be a good move for this company because alternative vehicles like hybrids offer a less contaminated environment, better fuel economy, and the best in its money worth. Electric vehicles produce zero contamination, but are limited to the distance they can travel. Compare to gas powered vehicles offering lower mileage and higher emissions, which is a factor to the contamination of the air we breathe in. Also by adding the alternative vehicle can improve the company’s image and show that we as a provider do care about what we rent out to our consumer, and by providing that image the consumer would be motivated to drive a much cleaner vehicle that will protect the environment. With more car companies coming out with alternative vehicles this would be the right move to make in investing in alternative vehicles and gaining that momentum that would push this company over the top of all our competitors. The standard engine vehicle has come a long way; Conventional vehicles have only grown more reliable. And year after year they come out with more improvements for the vehicle’s engine. The gasoline car has improved from decades before, and in the past century. Modern civilization depends on automobiles for much of its daily existence, to travel to work and back. Gas stations are everywhere and it’s easier to go and fill up your car with gas, rather than go and sit and plug into a charging station. That being a one of pros to having a gas powered vehicle. However a growing disadvantage to having the gas powered vehicle are the gas prices rising. For every gallon of gas you put in your tank, only 1/5 produces mechanical energy that moves your car. The other 4/5 is lost as heat which is why the gas powered car has more engine parts (The Amazing Rate, 2012). The more parts help the gas powered vehicle in cooling down and maintaining power. The parts convert gas that is flowed through the motor into energy, and more parts to manage the excessive heat. Take a Honda Civic EX, for example, normally the Civic would get about 24 mpg around the city and about 36 on the highway, thanks to developments such as the VTEC valve train profiling system that adjusts as speed adjusts and keeps the engine working at optimal levels (Autos.com, 2014). The hybrid and electric cars that they have out for sale only make up one percent of 250 million sold in America. The maintenance of the car would add up after a couple years of having it, but would still cost you less than the alternative vehicle that would’ve got purchased over a gas powered car. The cost of maintenance is lower compared to hybrid vehicle. Spare parts and replacement kits are readily available on car service centers auto body part centers as well. The maintenance of gas powered vehicle is simple as regular oil changes, air-filter changes, and spark plug replacements, keeping the vehicle in good condition will better the emissions and lengthen the lifespan of the vehicle and improve the gas mileage of the car. For most vehicles now dealers offer you more mileage and better coverage on the vehicle of choice, take for example the Ford 150 it offers you a flex-fuel, Eco-Boost truck and the offer more warranty on the vehicle per miles and years. The point in that is for the company to lengthen the life of the truck and offer better gas mileage to the consumer. The gas powered car, truck, SUV all have the one thing in common and that is that they all run on gas and all vary on gas mileage. Maintenance would also vary, because it is not as cost effective as an alternative vehicle. The Gas powered vehicle has been the one vehicle around for decades and still will improve in making better and less cost effective vehicles for people to drive. Since the first electric car was made in 1900 by William Morrison there have been major technological advances throughout the century that have made today’s electric car a more popular choice for the American consumer (Berman, 2009). It was not until 1999 when interest in electric cars began to increase due to growing concerns about the environment and drastic increases in gas prices (Berman, 2009). The electric car runs on an electric motor and battery to increase a vehicle’s miles per gallon ratio and does not require gasoline. The reason Lotus Car Rental did not jump on to this opportunity was because at the time there was a $15,000 price difference between electric and gas engine vehicles. As of 2012 there is  only a $5,000 difference which is a more acceptable amount to consider and there are now electri c cars that are in the $15,000 to $20,000 range (Cars Direct, 2012). The positives of electric cars are that they require no gas and they can be charged by electric stations around Los Angeles and they do not emit pollution and that fact alone might persuade the consumer to rent an electric car (KBB, 2014). The average miles per full battery charge in the city are about 120 miles and highway about 100 miles in town. The maintenance of an electric car is extremely low because there is no longer a need to purchase gasoline and the company no longer has to do oil changes, air filter changes and emissions tests on a yearly basis thus creating a higher profit margin plus whatever major mechanical problem happens it will more likely be covered by the warranty provided by the dealer when buying the electric car brand new from the lot (Cars Direct, 2012). The average dealer warranty is about six year or 100,000 mile whichever comes first but because we are a car rental company, we will reach the mileage first. Insurance for electric cars are considerably low because they offer discounts for owing that type of car so it will be easier to pass on the savings to the consumer if they decide to purchase it (KBB, 2014). One problem with electric cars is that they are low on horse power which might be a problem for consumers considering that they are more than likely to want to exceed the speed limit on the highway and it might make it a difficult drive when going up on hills and mountains. Another problem with electric cars is that depending on the make and model, the average energy span only lasts about 120 miles before the consumer has to stop and recharge the battery. The main complaint among consumers is the amount of time it takes for the battery to recharge. The average charge time is about 4 to 8 hours if the consumer does not use a rapid recharge station which will charge the battery in between thirty minutes to an hour again depending on make and model (KBB, 2014). There are about sixty rapid recharge stations in and around Los Angeles but it more likely recommended that electric cars be used for in town usage instead of long trips because of the lack of rapid recharge stations. Although not considered as an alternative for the fuel vehicle, such as the electric, hydrogen, ethanol, and propane. The hybrid vehicle operates using advanced technology that combines the electric motor, fuel motor, and generator, to create a more efficient use of regular fuel.  Hybrids have become the new sensation of invention since slice bread. There are many reasons why Lotus Rental Car should add hybrid cars to their fleet. Consumer reports and background information backing up on the hybrid vehicle, it also shows how their popularity has grown among the world and the American population. Hybrids have their own unique way of operating, having an electric motor and a fuel motor, which makes them real fuel-efficient. Hybrids also offer a special braking system that allows the braking energy to be captured and stored in an onboard battery. Costumers report that this type of vehicle will offer a substantial savings in fuel costs because of the engine’s efficiency. Some cars typically getting 48 to 60 mpg, and offering 20% to 35% better fuel efficiency than a typical gasoline car. A typical car for example a Honda Civic only offers a range of 36 mpg on the highway. Costumers also report that hybrid vehicles have almost the same maintenance routine as regular vehicles. As, hybrid vehicles switch back and forth between an electric motor, and a traditional fuel engine depending on road conditions. This switch between power sources saves a lot of wear and tear on both of the motors, and increase the fuel range dramatically. The repair costs are high but repair is not as common as it is on traditional vehicles, and as long as maintenance is done properly these vehicles can outlast a traditional vehicle because the technology saves on wear and tear. The typical cost of a hybrid ranges from $19,000 to $25,000 price range. These prices are a quite pricey compare to those of a gas saver car, which range from $14,000 to $17,000. Even though that initial cost of these vehicles is more than the comparable traditional style car, over the long run all of these technologies will save money. When comparing both vehicles the hybrid is still the best investment, on average hybrids offer a ten-year/ 150,000-mile warranty on the batteries and power training, and a three-year/ 36,000 warranty on the rest of the vehicle. Hybrids batteries and motors do not require any more maintenance than any other car, hybrid brakes even last longer than those of a regular car. Hybrids also have tax incentives in the U.S., which can reduce the cost up to $3,400. After all the research we believe that hybrid vehicles are the best pick of an alternative energy vehicle for Lotus Rental Car Company fleet. Given all of this information on the multiple types of vehicles available we at Lotus Car Rental, Inc. have decided to focus on purchasing hybrid cars. The reason for  this decision is because the prices of the new hybrid cars are acceptable even though they are more expensive than regular cars but the price difference is more acceptable now than when it is compared to a few years ago. The cost of maintenance will not be an issue because by purchasing a brand new hybrid car the manufacturer warranty will be able to cover any major mechanical problems that will happen. This is an important factor for our decision because all rental companies including ourselves never keep vehicles for more than four years because the higher the mileage a car has the more likely that there will be mechanical problems that can happen. As soon a vehicle comes close to exceeding the manufacturer warranty that is when it will be put up for sale. Another reason is that we want to show the consumer that we care about their concerns for the environment and gas prices. Today’s consumer will more likely rent a hybrid car if the rental price difference is not a lot and the insurance fee stays the same. Eventually Lotus Car Rental, Inc. will switch over to electric cars in the future when the concept is upgraded with technological advances. What we mean by this is that the miles for a fully charged battery will increase as the years pass by and there will also be way more Rapid Recharge Stations throughout the United States. For now the focus will be on switching over to hybrid vehicles because this will show the consumer that this company is adapting to change and that we care. This will create an image that will to financial success. References Autos.com. (2014, April). Electric Power Car Vs. Gas Powered Car. Retrieved from http://www.autos.com/car-buying/electric-power-car-vs-gas-powered-car?&session-id=d1fa38119d76b5d16b7f062d6bf474f0 Berman, B. (2009, October 30). Timeline: History of the Electric Car. Retrieved from http://www.pbs.org/now/shows/223/electric-car-timeline.html Cars Direct. (2012, March 08). Electric Car Costs vs Gasoline Cars vs Hybrids. Retrieved from http://www.carsdirect.com/car-pricing/new-electric-car-costs-vs-standard-gasoline-vehicles ConsumerReports.org. (2013, February). Hybrid/EV buying guide. Retrieved from

Carroway Clothing Limited Essay

Carroway Clothing Limited (CCL) is a Canadian-controlled private corporation (CCPC) that was incorporated 10 years ago. CCL follows accounting standards for private enterprises (ASPE). It is owned by two brothers, Chip and Charles Carroway, who started the company after identifying an opportunity to design and manufacture clothing with innovative fabric. The Carroway brothers have run the business together and have an equal stake in its equity. You are Rose Reddick, a recently graduated CGA assigned as team leader to complete the March 31, 20X3, financial statement audit of CCL. This is the second year that your firm has done CCL’s audit. The audit planning was completed in early March by Blake Mouton, another CGA in your firm, but he has recently announced he is resigning from the firm. Due to scheduling conflicts and an unusually busy season, he will be unable to continue with the remainder of the audit before he leaves, and you have been asked to take over leadership of the audit team. It is now late April, and the team under Blake’s supervision has completed about two-thirds of the audit field work. The audit is scheduled to be completed by May 15, and realizing that you have a limited amount of time to complete your work on this audit, you immediately begin your review of the work done to date and the available client background information. Client background The Carroway brothers started manufacturing athletic wear, utilizing new techniques in fabric treatments to increase the durability of the fabric. CCL’s range of products includes clothing lines for women and men. The products are, primarily athletic wear, but three years ago they added a line of soil-resistant work clothing. Tax losses have occurred in the early years, but sales have grown each year since the company was started. As sales increased, Chip hired a team of design specialists to create new clothing items with innovative features. This team was hired three years ago to begin the research and development required to bring new products to market. Chip also hired a marketing manager with a degree in fine arts to design the tags attached to each piece of clothing and develop the marketing programs. At the same time, specialized software was implemented to produce tags for the products. Because there are specific requirements for content and format of the tags, the production manager is the only individual with authorized access to the software. In July 20X2, CCL signed a contract to produce a line of athletic wear for Sports Shop, a small chain of sporting goods stores. The line of athletic wear features the chain’s logo and trademark colours. CCL ships product to these stores using a company truck. The contract specifies that Sports Shop is to pay for each shipment within 30 days of signed receipt of delivery. Recently, Sports Shop has disputed some of the amounts owing to CCL, maintaining that there is no proof of receipt of the shipment. When Chip questioned the CCL driver, the driver admitted that when he was running late with his deliveries, he simply dropped the shipment at the store counter and did not wait for the store manager’s signature. Chip has not provided an allowance for these receivables since the delivery was made even though there is no signature. In fact, CCL has never recorded an allowance in any fiscal year and has not had any issues with uncollectible accounts. The research and early stages of development of CCL’s products were financed by a combination of capital invested by the brothers, bank financing, and a government grant (see financial statements, Exhibit 1). Scientific Research  and Experimental Development (SR&ED) credits were received in 20X1 and 20X2 and have been reported as government grants for accounting purposes. The sales volume of the soil-resistant clothing is now great enough to assure the lenders and any potential investors that these products are commercially viable. In fact, based on the 20X1/X2 results, they expect the current product line to become a significant commercial success. The cost of developing this product line, called Walton Work Wear has been deferred and is being amortized (straight-line) at the rate of 10% per year starting in 20X2 (see Deferred Development Schedule, Exhibit 2). Original research costs for the Walton Work Wear products were expensed when incurred, net of grants and SR&ED credits. The prior-year audit file shows that this treatment of SR&ED credits is consistent with CCL’s reporting of all taxes (payable and recoverable), which have been accounted for on a current basis without regard to recognition of the future tax effects of any current transactions. During the past year, the brothers have turned their attention to a moisture management and odourreduction feature for the athletics tops. They are confident that within two years their current research will lead to a product line that keeps the sweat away from the skin and minimizes the impact of perspiration on the clothing. The preliminary prototype works effectively for the first several minutes, but the protection barrier degrades quickly and more work is required. This product line will be called Carroway Cool Top and is currently in the research stage only. The deferred development costs for this product line are $975,000. In order to finance completion of the new research and development of the Carroway Cool Top products, Chip Carroway expects to obtain a long-term bank loan for CCL. He is aware that this long-term bank loan will include a more stringent debt to equity covenant than the existing line of credit. He is also interested in the option of going public and issuing new shares to raise funds for future growth. However, Chip is concerned about the implications of losing some control over CCL so he is leaning towards remaining a CCPC. CCL’s chief financial officer, Jack Lawson, was the original office manager  and bookkeeper when CCL was first established, and although he has no professional accounting credentials, he does have a degree in business administration with a major in finance. He is responsible for the preparation of financial reports and is involved in all of the financing discussions. Jack has always been employed by companies which are private and he has no experience in the requirements of going public, so Chip will require additional information from you in order to be able to make an informed decision between the financing options available. CCL has grown rapidly over the last three years, after implementing its research and development activities. During 20X1, the implementation of the research and development department resulted in the hiring of many new employees in research and development, production, and administration. CCL would like to provide an incentive plan to these new employees, but is not in a position to provide a cash bonus. Therefore, CCL is considering a limited issue of stock options to its employees. The stock options would entitle an employee to acquire equity shares of CCL at $50 per share at any time starting six months after the date of their issue. Some employees are uncertain about the impact of the issue of stock options on their taxable income and are considering disposing of them immediately upon acquisition. Chip has recently been notified about a pending lawsuit and provided Blake with some preliminary details when he was at the office in March. Six months ago, the production process of one of the fabric treatments resulted in an accidental but illegal leak of chemicals into the environment. The local environmental agency objected to such a release of chemicals, and when their objections were ignored they filed a lawsuit against CCL, alleging that CCL was negligent in the release of the chemicals and in violation of environmental regulations. Chip is not concerned about this lawsuit since he notes that the amount of chemicals that leaked from CCL equipment was not significant, but he would like to know whether there are any other risks associated with this issue and how they should be dealt with. Review of audit findings to date The audit-planning file indicates that Blake assessed the inherent risk associated with this audit as low. The reasons for this assessment include the fact that this is the second year of the engagement and no audit or financial reporting problems have been uncovered in the past audit. Blake included a note that the design of the clothing tags is now being handled jointly with the marketing manager, who had persuaded the production manager to give her access to the specialized software while he was away from the office on vacation. During this time, the marketing manager redesigned the tags to include more marketing elements and minimized the font size of the list of additives used in the fabric treatment so that there was more room to describe the innovative features of the clothing. The newly designed tags have been on product for the past two months, and CCL has recently heard some feedback from concerned customers that the information about the additives is difficult to read. These customers have allergies to certain chemicals, so it is imperative they are aware of the chemicals used in the treatment of these fabrics. Another important factor influencing the risk assessment is that, in spite of operating losses in the past, CCL has never had serious cash flow problems, due to Jack’s careful business planning and the good relationship CCL has with its lender. CCL is experiencing growth in profits, indicating that the investment in the research and development department is paying off. The draft financial statements show positive net income and strong revenue, with a portion of this revenue being generated by the Walton Work Wear line of products in 20X3 (see Exhibit 1). Although no misstatements or errors have been documented in the work completed so far, you are not sure if this is because conclusions have not yet been drawn on most sections of the audit file. In addition to evaluating all of the evidence gathered so far, the following audit work still needs to be completed: review of the accounts in Exhibit 2; team leader review of all work done by subordinates; completion of the audit work on unrecorded liabilities, subsequent events, and contingencies; and review of the draft  tax returns. Once all of these steps have been completed and approval of the statements is received from the client, the schedule of unadjusted errors and final review of the financial statements must be completed. The file will then be ready for a final partner review before release of the audit report. You see from the files that Blake has used traditional sampling to sample small amounts of data for the audit and you are not comfortable basing your conclusions on the work done because with the increase in sales this year and the research and development activities, there is a large amount of data to audit. You are considering an appropriate alternative, such as generalized audit software. Upon examining the file, you realize that a number of financial reporting and potential tax issues have arisen this year that were not present in prior years. These issues and other new information have not been adequately addressed in the current-year audit plan. You believe that the client should be informed of your concerns regarding the current year’s issues as well as the implications of the financing options.

Family Violence and Abuse Free Essay Example, 2250 words

In 40% of the cases examined, dependable parents admitted: they believed there was nothing wrong with what had happened . The caseworkers who were instructed to evaluate the case documents thoroughly reported that in more than half the cases the supervision problem was due to a lack of knowledge or poor judgment about the needs of children . Today, if a child is abused by a parent, there is no assurance that the child will be separated and given any form of protection from the maltreating parent. In fact, the child is more likely to be separated from his/her parents because of poverty than maltreatment. It is also less likely that the abusive parent will be apprehended, except if the child dies. Rather, the parent will more probably go through counseling or therapy (Reece, 2003). The entire practice would be pathetically outrageous. While therapy and counseling may sooner or later form a partial remedy to the psychological disorder that led the parent to maltreat his/her child, it is still a fact that a child has been harmed, and the attacker should be prosecuted under the law. We will write a custom essay sample on Family Violence and Abuse or any topic specifically for you Only $17.96 $11.86/page