How Southwest Airlines Soars Case Study Example | Topics and Well Written Essays - 250 words - 17

How Southwest Airlines Soars - Case Study Example The second one is the participative theory, which suggests that leaders should encourage contributions and participation from members and make them feel relevant in the organization. During the Halloween, Kelleher encouraged the employees to get loose by decorating gates, wearing wacky costumes and munching on treat snacks, by this, he encourages the employees to participate on keeping the airline's spirit alive. Kelleher is both a manager and a leader. The view as a manager is portrayed by implementing tactical actions when the airline set off in 1971; he put up measures of cutting cost by avoiding extra expenses. When the fuel prices rose, he initiated cutting cost by asking each employee to find a way of saving $5 per day (Case Study). He is seen as a leader by inspiring, empowering and creating new opportunities. As the airline expands, he creates new job opportunities by personality testing and maintains the culture of the airway by choosing individuals who are able to make decisions, good communicators, optimistic and team-oriented.

Research Philosophy :: Ontology, Epistemology

Research philosophy, refers to the development of knowledge adopted by the researchers in their research (Saunders, Lewis and Thornhill, 2009). In other words, it is the theory that used to direct the researcher for conducting the procedure of research design, research strategy, questionnaire design and sampling (Malhotra, 2009). It is very important to have a clear understanding of the research philosophy so that we could examine the assumptions about the way we view the world, which are contained in the research philosophy we choose, knowing that whether they are appropriate or not (Saunders, Lewis and Thornhill, 2009). According to Saunders, Lewis and Thornhill (2009), three major ways of thinking about research philosophy are examined: ontology, epistemology and axiology. Each of them carries significant differences which will have an impact on the way we consider the research procedures. Ontology, â€Å"is concerned with nature of reality†, while epistemology â€Å" concerns what constitutes acceptable knowledge in a field of study and axiology â€Å"studies judgements about value† (Saunders, Lewis and Thornhill, 2009, p110, p112, p116). This study is intent on creating some â€Å"facts† from objective evaluations which are made by the subjects. Therefore, epistemology will be chosen for this study as the way of thinking about the research philosophy. More specifically, epistemology also contains three philosophical positions: positivism, realism and interpretivism (Saunders, Lewis and Thornhill, 2009). Positivism stance usually supports investigating or studying an observable social reality and the final production could be â€Å"law-like generalisations similar to those produced by the physical and natural scientists† (Remenyi et al. cited in Saunders, Lewis and Thornhill, 2009, p113). It is effective to generate a research strategy to collect the creditable data which comes from observable reality therefore contributing to developing hypotheses (Saunders, Lewis and Thornhill, 2009). In this study, we aim at exploring the creditable and measurable results from individuals in order to understand the influence of surprise on viral marketing via social media in perspectives of message characteristics. Thus, the philosophy of positivism will be adopted in this study for collecting creditable data from the subjects to prod uce some â€Å"law-like generalisations†. However, it is always difficult to decide whether interpretivism should be applied to conduct a deeper analysis relating to subjects’ attitude for the sake of enhancing the precision. More complicated, such a dilemma would often lead to the reflection of realism, which is divided into direct realism and critical realism (Saunders, Lewis and Thornhill, 2009).

Case Solution on Abrasm Company

————————————————- A ————————————————- Case Study ————————————————- On ABRAMS COMPANY ————————————————- Of ————————————————- Management control System ————————————————- ————————————————- Presented to Presented by: ————————————————- DR B. A.Prajapati ModiRashmi S. (24) ————————————————- MeghaniShital L. (20) ————————————————- Trada Lalit V. (60) ————————————————- RajdevBrijesh (46) ————————————————- Ozha Sandip (47) ————————————————- ————————————â€⠀Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- ————————————————- ————————————————- ———————————————— Batch: 2010-12 ————————————————- ————————————————- ————————————————- ————————————————- About The company ———â⠂¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- US company ————————————————- Manufacturing auto parts ————————————————- Selling in Domestic as well as foreign Market ————————————————- Most of the Products related with†¦. ———————————————— Automobiles ————————————————- Trucks& Buses ——————————— Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- Farm Equipments ————————————————- Product & Marketing Division ————————————————- Production Division: * ————————————————- Company works on Three Parts. 1. ————————————————- Ignition Parts 2. ————————————————- Transmission Parts. 3. ————————————————-Engine Parts. ———â⠂¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€Ã¢â‚¬â€- Marketing Division: * ————————————————- Selling Through two Department. 1. ————————————————- O. E. M. department. 2. ————————————————- A. M. department. ————————————————- EXHIBIT 1 ————————————————- Partial Organization Chart —————————————â₠¬â€Ã¢â‚¬â€Ã¢â‚¬â€- ————————————————- ————————————————-Inside & Outside sales In 1992; * Total sales $500 million Inside sales (to AM div) – $100 million Outside Sales (to OEM)- $400 million * Ignition parts sales- $130million * Engine parts sales- $90million * Transmission parts sales – $100million * AM Division sales- $180 million ROI for the Manufacturing Plants * Each Plant has to meet targeted ROI. ROI = Budgeted Profit Actual beginning-of-the -year net assets Where Budgeted Profit =( Expected Revenue- allocated O/H- tax) Actual beginning-of-the-year net assets = total assets-current liabilities. Actual 1992 ROI computation- Rochester Plant Abrams company –Transmission PartsDivision ROCHESTER PLANT Profit & ROI Statement,Dec 31,1992 Sa les revenue†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦$124,866 COGS†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 73230 Gross Margin†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 51636 Operating expenses†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 20792 Division Expenses assigned†¦.. 11340 corporate expenses assigned†¦. 3420 Profit before taxes†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 16084 Taxes Imputed†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 4825 Profit†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. $11259 * Net Assets Assigned as of January 1,1992 Total Assets: Cash & receivable†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. $25000 Inventories †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 12875 Property, plant & equipment at book value†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 86560 Total Assets †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 1 24435Less: current liabilities†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 26135 Net Assets†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. $98300 ROI = Profit / Net Assets = $11259/ 98300 =11. 45% Suggestions to improve evaluation system: * ROI can be used combination with other performance measures-balanced set of long term/short term; financial/non-financial * EVA can be used instead of ROI. Marketing Strategies * Top Management consider OEM & AM different. * Each parts? OEM sales have to meet an Annual Sales Revenue. * The OEM department have to†¦Ã¢â‚¬ ¦. 1. Minimize inventories. 2. Control cost. * AM has to concentrate on availability of Parts. Incentive compensation Plan Appropriate 50 line & staff managers under plan. * Bonus given on basis of fixed formula. * Each participant get bonus on standard bonus point(SBP). * SBP based on hierarchical position. Standard dollar award per point (SDAP) = total of SBP of all participants total bonus pool amount Standard Bonus in $ = Standard Do llar ? Standard Bonus Point Award per point. of Participant. if Actual Profit ^ 4% more than budgeted, Manager get 25% more standard bonus. Evaluation of incentive compensation plan: * The performance is measured by compare of actual profit and budget profit. All the measurement is associate with data, sometimes the performance will be influence by variance elements, such as, economic environment, the demand level, material price, cost of labor, and government policy, so the measurement need to improve in some areas. Suggestions: * The non-financial performance measurement system should be established. * The balanced scorecard is a good choice for company measure performance. With a good performance measurement system, the incentive compensation plan will be improved. Problems encountered with Management * Some dispute over transfer pricing. Bias with AM division on placing order of parts. * All divisions using too much inventories. Question- 1 Evaluate each of the concerns expresse d by top management, & if necessary, make recommendations appropriate to the circumstances described in the case. Ans-1 * Management has 3 main problems: 1. ROI Behavior. 2. Transfer Price disputes 3. Operational trouble shouting. Recommendations * Company should use EVA rather than ROI. * Company should control the investments separately using NPV and capital turnover measures. * Bonus should be based on the budgeted income level. * Company should change the TP method. It will give all internal partners full information about the cost structure and company will avoid â€Å"upstream fixed costs†. Question- 2 What is your overall evaluation of Abrams? management control system ? Describe strengths or weakness that you identified but did not include in answering the previous question. What changes, if any, would you recommend to top management ? Ans-2 * Company Management Control System was poor. * Company failed to minimize the cost and to control inventory level. Strength * T he company has a clear management structure. * The company has employed a bonus plan for employees. The AM Marketing division will input products form the other three divisions, and sell it to domestic and foreign market, it helps the company save cost when it input internal. Weakness * The Abrams Company has three totally independent divisions, and the three divisions are lack of connection. * The transactions between the three divisions dispute the transfer pricing. * OEM customers preferred than AM. Suggestions * Top management should try to control inventory level. * Company should use non financial measures like inventory turnover. * If it is an strategic issue company should connect this measure to the bonus system.

Business Organizations Business Organization - 3050 Words

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