Analysis of a survey conducted on a website Assignment

Analysis of a survey conducted on a website - Assignment Example Most people view exercise as a vital lifestyle Majority of the individuals who participated in the survey viewed exercise as an important aspect of health maintenance. 3% of individuals viewed exercise as not essential, 97% of the participants viewed exercise as important. Most individuals from the survey live an active lifestyle, by spending a lot of time outdoors. 5 to 6 hours is the average time spent outdoors by the majority participants Most people who participated in the survey, spend 5-6 hours when is weather is favorable. 31% of the participants spend 5-6 hours outdoor in a good weather. 23% spend more than 8 hours outdoors; contrary to the 15% that spend 0-2 hours outdoor. Insecurity, boring state, injuries and other vices are related to trails According to the data on the survey as to why people do not like trails; time factor was the most eminent factor; with 118 in number. The majority participants do not use trails because they do not have enough time. Trails are not convenient for the 99 participants, 85 individuals avoid trails because their friends are not interested in trailing. 48 people view trails as scary, 39 people state that rails limits their exercise routine, and 33 participants say that trails are boring.

Designing and Planning High Voltage Laboratories

Designing and Planning High Voltage Laboratories 1. Introduction The demand of energy which has to be delivered over long distances is increasing in todays world due to industrial and economic development. Transportation of such a large amount of power needs extra high voltage transmission lines. High voltage laboratories are an essential requirement for making acceptance tests for the equipment that go into operation in the extra high voltage transmission systems. In addition, they are also used in the development work on equipment for conducting research, and for planning to ensure economical and reliable extra high voltage transmission systems. 2. Transmission System Equipment in High Voltage Laboratories A high voltage laboratory is expected to carry out withstand tests at high voltages on the following transmission system equipment: (i) Transformers (ii) Capacitors (iii) Cables (iv) Lightning arresters (v) Isolators and circuit breakers (vi) Line hardware and accessories (vii) Other equipment like reactors, etc. 3. Activities and Studies in High Voltage Laboratories On equipment, professors use high voltage laboratories for study and improvement work and conducting tests on equipment. At voltage, more dominant than the test voltage needed, this contains decision making of the security factor for dielectrics and trusty works under varied atmospheric conditions for example rain, fogà ¢Ã¢â€š ¬Ã‚ ¦ Occasionally, it is needed to work problems related test lines and another equipment under pollution and atmospheric conditions. It cannot be done enclosed spaces. Research activities generally contain the following: 1) Breakdown case in insulating media for example solids, liquids, gases or composite systems 2) Insist on voltage on large gaps, requisites used in power systems and surface flashover works on equipment specific reference to the equipment. 3) Electrical interference works because of the discharges from equipment working at high voltages. 4) Works on insulation regulation on high voltage power systems. 5) High current case for example plasma physics, electric arcs. Generally, high voltage laboratories equipped with an expensive tool and that increasing their build cost. As a result, planning and order have to be with caution done in order that with the test rig chosen, the enterprise isnt high and maximum beneficences of the laboratory is done. 4. Classification of High Voltage Laboratories High voltage laboratories can be classified into three types, depending on the purpose for which they are goal and the available finances. (i) Small laboratories (ii) Medium laboratories (iii) Large (general) laboratories 4.1 Small Laboratories Small Laboratories A small laboratory is one that contains d.c. or power frequency testequipment of less  than 10 kW/10 WA rating and impulse equipment of energy rating of about lOKJor  less. Voltage ratings can be about 300 kV for a.c., single unit or 500 to 600 kV a.c. for cascade units,  ±200 to 400 kV d.c. and less than 1OO kV impulse voltage. Normally  the equipment is meant for housing in a room or hall of size 15m x 10 m x 8 m. Sometimes the equipment ratings are limited such that they can be accommodated in  a room of height 5 m to 6 m only. Such laboratories are meant for Engineering  Colleges and Universities who decide to build such a facility with small resources for  doing high voltage tests or research or for imparting training. In such a case, it is  preferable that the Engineering college or University associate with a local industry  or R D organization. It is important to decide and define the responsibilities of the  parties concerned as to how the test facilities and time can be shared. Another idea is  to have the university to decide to own the laboratory fully but throw open the  facilities of regular technical training and high voltage testing for the clients. Here it  may be mentioned that many high voltage problems can be solved by tests at moderate  voltage levels. Such laboratories can be built with an investment of 2 to 10 million  rupees (at 1991 prices).

Outsourcing Software Jobs :: Globalization

Outsourcing Software Jobs Introduction Henry is an experienced programmer for a large software company in Silicon Valley. Despite dedicating 10 years working for the company, he recently received notice that he will soon be laid-off. Before leaving, however, the company instructs him to train his replacement -- a programmer overseas. The software company realized that Henry's job duties can be achieved by overseas workers earning significantly lower wages for the same (or better) quality of work. Unfortunately, Henry is faced with the difficult decision of training his own replacement. Based on Henry's values, must he dutifully perform his instructions and train the overseas programmer? Why did the company choose to outsource the job if Henry is capable of the job's requirements and neglect his loyalty and contributions to the company? This particular example introduces the ethical issues involved with outsourcing software jobs. For the past two decades, U.S. companies have been experiencing an era of tremendous economical growth, largely due to the rapid developments in technology. Consequently, to ensure survival in a capitalistic market, U.S. companies have tried to keep pace with technological changes and competitive pressures by various means, including outsourcing software jobs. With increasing competition both domestically and internationally, U.S. companies have sent many software jobs outside the United States. This paper focuses on the outsourcing of software jobs and analyzes the "Global Workforce" -- a growing trend among U.S. companies to not only do business globally, but also employ people globally. Trends in Outsourcing Software Jobs The Internet glory years as we closed the decade (infamously known as the "Internet Bubble") could not get enough of software engineers. New graduates from American colleges and universities found themselves having multiple job offers even before graduation. Today, that phenomena is long gone. The degradation of the U.S. economy, the "lack" of supply of new American engineering graduates, and the positive impacts of outsourcing have forced U.S. companies to look overseas to enhance company talent and maximize cost efficiency. Many studies have shown that U.S. companies, especially the high-tech industry, have been outsourcing software jobs overseas to countries such as India and China. For instance, IBM, the largest computer company in the world, recently announced that they would move up to 4,730 programmers from U.S. to India [3]. According to a November 2003 report [8] by the American Electronics Association, the United States lost 540,000 jobs in the high-tech industry in 2002.

Final Business Plan

[pic] University of Technology Jamaica Entrepreneurial Skills Business Plan Business Idea: Spot Charge Group: B. Eng. 2M (ca) Date: April 11, 2007Group members Lecturer: Mr. Clive GrossettDexroy Jones Dwayne McIntoch Mckay Kirkpatrick Binns Calford Ramsay Keon Hinds (3M art) Executive Summary ________________________________________ †¢ Introduction Swiff Electronics is a start-up cell phone accessory and electronic distribution company. Its strategy is to provide all cell phone users who have continuous dead battery while engaging in an important call or entertaining entertainment selection. It will capitalize on the intricate engineering design and manufactured product that is capable of recharge a cell phone. There are many untapped potential markets within this industry, as the desire for high-quality; stylish goods that are convenient, affordable, and easily sourced are in great demand. It is the firm's intention to import products from the leaders of electronic, Teqtronics and introduce it to a target population within Jamaica’s Metropolitan or corporate area and to make Swiff Electronic a house hold name customer come to know and trust. To do this the company's long-term goals are to achieve a 20% market share in the Jamaica’s build brand image and brand equity through marketing, achieve a sustainable 55% profit margin, and eventually produce our very own luxury product in addition to the initial, moderately-priced line. †¢ The company Swiff Electronic is a limited liability corporation in which the sourcing of the product offered â€Å"Spot Charge† is done internationally while the marketing and sales are focused in and around the corporate areas of Kingston Jamaica, for short term purposes. Ownership is divided among five principal individuals who are putting up the initial investment. These include: Dexroy Jone – Managing Director, Keon Hinds – head of Finance and administration, Calford Ramsay Head of Marketing and Human Resources, Dwayne McKay McIntoch Head of Product Development and Kirkpatrick Binns Head of Operations. The First outlet of Swiff Electronics will be located at 13 Duke Street, Down Town Kingston, Jamaica. The present location is approximately 700 square meters and should be large enough for the first three years of the company's growth. The portable Chargers will be stored at the Duke Street location and will be dispatched to different location based on demand and agreement signed with our feature business partners. †¢ The product The initial product line will depict the full effect of the product that will be offered, inclusive of a range of different colors and possibility the opportunity to personalize. The company plans to release more models, which will be integrated as we aim to give customs a wide selection to choose from. The pricing strategy will be to initially undercut our main competitors by selling at a minimal profit, using a market penetration strategy. Then, pricing will be adjusted to be directly competitive with the other major competitors. The price per Spot Charge is expected to be unbelievably affordable. †¢ The market Entry into the telecommunication/electronics industry comes at a prosperous time. Over the past two years, the purchases of cell phone have increased vastly and the trend is expected to continue once the cell phone manufactures continues to introduce new features to their designs. This will only adversely widen our market as individual continues to seek charge â€Å"Where ever, when ever†. One of the most important recent trends is that cell phone users are willing to spend higher amounts on their phones because of the enhanced image appeal and reliability. Therefore, a company that can build a substantial brand image in this industry gains a significant competitive advantage. It is the aim of Swiff Electronics to capitalize on its high quality and reasonable price while pursuing the innovative styles necessary for brand building. †¢ Financial The company's start up costs will be $ . Owners equity will be provide $ , $ will consist of short-term borrowing, and the rest will be long-term loans. The majority of the start-up costs will consist of rent, research and development, initial inventory, and a strong cash account. Mission Statement ____________________________________ Swiff Electronics mission is simple and straightforward: †¢ Purpose – Swiff Electronics exists to provide a faster, more reliable source of power for all mobile phone users. Swiff Electronics sells solutions & results! †¢ Vision – By providing fast response, informed expertise, and consistently high quality solutions, Swiff Electronics aims to generate enough satisfied repeat customers to provide a stable retainer base. This will generates sufficient profit to provide a comfortable living for the owner. †¢ Mission – The short term objective is to start this company quickly and inexpensively, with minimum debt. The long term objective is to grow the company into a stable and profitable entity that the owner can easily and comfortably manage. Marketing Slogan – â€Å"Spot Charge where ever, when ever! † Keys to Success The keys to success for Swiff Electronics are: †¢ Marketing and Networking (getting the name out there). †¢ Responsiveness (being an on-call supplier paramedic with fast response time). †¢ Quality (getting the job done right the first time, offering 99. 9% or greater guarantee). †¢ Re lationships (developing loyal repeat customers – retainers). Analysis of the business environment ____________________________________ Jamaica’s telecommunication sector is dominated by three major players, and a number of small entities that presently supply all the electronic accessories that Jamaican’s my need for there cell phone. It has been observed however that none of these companies provide the ease or accessibility of charging your phone â€Å"where you want, when you want†, Thus the reason why Swiff Electronics has been developed. Over the past five years, the rate of failure of industries in Jamaica has remains relatively steady, and the implementation of new businesses and organization has marginally increased. Swiff Electronics will be a new organization that is not yet established and has not yet developed its clientele. However the fact that the market for call phones keeps growing, as manufactures aim to convert a product that was once used only for communication, to a new revolutionized product that consist of attention grabbing entertainment. The need to keep the batteries of these fascinating gadgets charged â€Å"Where ever, when ever† has arisen, Thus giving Swiff Electrons the operation to be very profitable once the right marketing approach is taken. Presently there are trend that are been experienced in the industry which are classified as positive or negative depending on the effects these trend have on particular businesses. These trends include: †¢ Positive *implementation of additional features to the ordinary phones *Reducing the size of the gadgets *Reduction in pricing causing more individuals to be able to afford a phone †¢ Negative *modification of batteries to have longer life *Developing unique charging outlet that would be difficult to source Over the past year the population of the marketing community has been generally stable based on results obtained form the Statistical Institute of Jamaica. The attitude of the community toward the business has been favorable as the results were seen in a feasibility study that was done in and around the marketing community. Description of product ____________________________________ The Spot Charge, as its name implies is a miniature device, very handy portable charger which is operated on a single AA battery and is able to power up any cell phone batter in minutes. Pretty compacted and stylish, the Spot charge is like a tube and is small enough to be fitted anywhere. So be it anywhere in the world, you can charge up your phone battery anytime by just plugging one end of the Spot Charge adapter into the unit and the other into the cell your phone. Not only will it charge the battery, thanks to its design you can handle your cell phone while it is charging. There is a blue light at one end of the Spot charge that indicates when cell phones is being charge, and if the light goes out simply replace the battery. Spot Charge is ideal during power outages and when camping, hiking or sailing. It gives you the opportunity to make and receive calls as soon as you plug it in. This device is able to power up a cell phone for two hour of talk time or 40 hours of standby time on one AA battery (included). It â€Å"Trickle† charges an average cell phone in 1 ? hours, and comes with a charging adapter that is compatible with: Motorola (Motorola ROKR, Motorola RAZR) Audiovox Kyocera Samsung Nokia Sanyo Sony Ericsson LG cell phone – even Blackberry PDAs! Spot Charge 3† long x ? diameter and weigh less than 1 oz. Analysis of the competition ____________________________________ Based on preliminary investigation and survey of the market, there were no companies or organizations supplying the product that we are introducing to this market area, Therefore when it comes to identical portable chargers like the Spot Charger there are no real competitors. There are however products that provi des that same services as the Spot Charge. These products includes car charger, house hold chargers, which are provided by the following companies. Cable and Wireless ? Digicel ? Centennial Miphone ____________________________________________________________ ____________ ____________________________________________________________ _____________ Production selection Market share Product Quality Quality of service Amount of advertising and production Pricing Workforce turnover Workforce Financial condition Level of debt Equipment Production capacity ____________________________________________________________ _____________ Pricing Strategies ____________________________________ The pricing strategy that Swiff Electronics will be using is to initially undercut our main competitors by selling our product with a small profit of 3%, using a market penetration strategy. Then after getting a share in the market, pricing will be adjusted to be directly competitive with our other major competitors. Swiff Electronics will also maximize sale by spreading the name of the company and products offered by taking part I seasonal sales that will comprise: ? The use of coupons ? Bundle pricing This will be done to capture the attention of the public in the peak shopping seasons. For customers who purchase our product and require the product to be shipped to then, Swiff electronics will comply with these requests; however the total price of the product will now include the additional cost for shipping. Credit Policy Swiff electronics credit policy will not be the regular policies that we know exist in the business world. What we will be introducing is a policy called â€Å"cash on delivery†, what this therefore means is that we deliver the goods and our customers will pay us on the spot. Considering the kind of product we are introducing to the market and that we have no real competition there is no doubt that this policy will work. No other product in Jamaica can do what the spot charge does. This is certainly an advantage in the business that gives us the opportunity to do with our product whatever pleases. Competitive advantage There are no real competitors because Spot charge is new to the market but what we have are potential competitors. The advantages expected would be compared to businesses offering services that are not exactly like Swiff electronics. The quality, price, location and turnaround of the business will all be an advantage over potential competitors. The quality of the product is second to none and the price compares to that of the cost of items that would provide similar service (car charger, regular phone charger etc. ) but the advantage we have is that none of those items are portable and discrete as the spot charge. Market segmentation The market segmentation is divided into the leading target markets. The division reflects the differences in marketing strategy that will be used to target each different market. The â€Å"yuppies† who enjoy being the first on their block to have a new, â€Å"chic† and â€Å"hip† product. †¢ The â€Å"yuppies† who follow trends and buy products that everyone else has. †¢ Older adults who simply use and depend on their cell phone for business or pleasure. †¢ Average college students who seeks convenience while indulging in entertainment. â₠¬ ¢ Technologically advance senior citizens. †¢ The individual who engage in long distance trips who are plagued by dead battery. †¢ Market analysis Potential | | | |Customers |Expected growth |Approximate numbers | | |2% |10,000 | |New | | | |Yuppies | | | | |3% |20,000 | |Trend | | | |Yuppies | | | | |2% |10,000 | |Older | | | |Adults | | | | |5% |15,000 | |College | | | |Students | | | | |1% |2,000 | |Senior | | | |Citizen | | | | |3. % |5,000 | |Other | | | | |16. 5% |47,000 | |Total | | | Description of Location ____________________________________ Based on results gathered from a feasibility study that was done regarding or product â€Å"Spot Charge†. Majority of the individuals who would welcome Spot Charge a part of their daily routine resides outside the metropolitan area of down town Kingston. A decision was agreed on by all executive members to locate the first business outlet of Swiff Electronics, within close proximity of the heart of down town Kingston. This would give us an advantage to bring Spot Charge closer to those who have a higher level in interest in the product. A Survey of the down town area was also carried out, to find out in which area Swiff Electronics would be more profitable. The result of that survey led us to source a shop space that is located at 13 Duke Street. Duke Street is one of the most busiest streets, in the down town area that Is not only populated by commercial entities but also other small businesses that are doing exceptionally well, which is as a result of their location. With Swiff Electronics being a new kid on the block and the only Electronic/cell phone accessory dealer, we are expecting to welcome a number of curious shopper as well as individuals who are knowledgeable about our product and services. Promotional Plan ____________________________________ The ultimate promotional goal of Swiff electronics is to: †¢ To communication with the target group and create awareness and interest in the service Spot Charge has to offer. To increase the use of Spot Charge, hence eliminate the break in communication associated with dead cell phone batteries. †¢ To acquire an increase in revenue. †¢ To enhance name recognition There are many ways to market the service offered by the product Spot Charge, however, the strateg ies listed below represent a few cost-effective ways to accomplish the marketing objective. Communication Mix In communicating with the target group, we will use a combination of communication channels such as advertising, publicity, promotions and personal selling. Because people need to hear a message many times from a variety of sources, we will employ a combination of these with a variety of approaches. Advertising Strategy |Management & Implementation |Funding | | |Tasks |Responsibility |Time Frame | | |Utilization of Monitors( big screen |Identify what monitors are available in areas | |Ongoing | | |TV) that are placed in prime areas |frequented by course coordinators |Promotions Committee | | | |eg Libraries, supermarkets and |Identify message content | | | | |universities and schools etc. | | | | | |Banner in campus cafes and other |investigate possibility with cafes to pay |Promotions Committee |April– June 2007 | | |strategic locations |what message (link with Free coffee promotion | | | | | |below) | | | | |Television ads. Radio advertisement |Develop appropriate ads emphasizing the |Promotions Committee |Ongoing | | | |benefits of owning a Spot Charge | | | | Publicity |Strategy |Management & Implementation |Funding | | |Tasks |Responsibility |Time Frame | | |Donate time and funds to |Identify charitable organizations and investigate |Promotions Committee |July 2007 | | |charitable organization such as|possible ways of offering time and funding. | | | |Children homes and Juvenile | | | | | |Correctional centers | | | | | |Writing articles for the local |Produce article with relevant information on the |Promotions Committee |July 2007 | | |newspaper concerning grand |benefits of Spot Charge | | | | |entrance of Spot Charge | | | | | Promotions |Strategy |Management & Implementation |Funding | | |Tasks |Responsibility |Time Frame | | |Presentation of promotional |Letter text & printing/ Design brochures. |Promotions Committee |End of August 2007 | | |product, letter, and brochures |Investigate associated cost. | | | | |at well developed companies, |Print brochures. | | | |Shopping centers and other | | | | | |frequently visited locations | | | | | |Incentive promotion with phone |Investigate how it will work and ways to verify |Promotions Committee |September 2007 | | |companies- get product at |eligibility | | | | |discounted price with the | | | | | |purchase of any phone. | | | | |Web site |web site of resources and information about Spot |Promotions Committee |September 2007 | | | |Charge and generic attributes | | | | |Video message on web or email |Investigate costs & how to do this |Promotions Committee |September 2007 | | | |Identify a key message we wish to use it to | | | | | |deliver. | | | | Management and personnel Swiff Electronics is currently not hiring any employees. The decision has been made to postpone hiring until the company begins to succeed. After approximately one year, there employees will be added to the current five. |Organizational Structure | | Swiff Electronics is split functionality, In that each division of the company is managed by one of the co-owner of the group. |Management Team | | Dexroy Jones is the managing director, and founder of Swiff electronics. Jones was president of production at Swiss Army Watches before he decided to return to his native home land to start his own company. He graduated from the University of Technology Jamaica, and received an MBA at The Florida International University. Calford Ramsay: head of Marketing and Human Resources division. He has worked and co-owned Wright and Ramsay, an advertising agency, for fifteen years. Ramsay received a BA and MBA from University of Technology Jamaica â€Å"UTech†. Dwayne McKay McIntoch: Head of product development division. He was previously vice president of operations at Greentree Sports in Phoenix, AZ. He received his BA from Caribbean Maritime Institute Jamaica â€Å"CMI† and his MBA from UCLA. Keyon Hinds: Financial Controller and head of administration. He was previously financial controller of French Collection for United Kingdom †FCUK† for seven years. He has returned home to provide his knowledge and expertise in the building of Swiff Electronics. He received his BA at the University of Technology Jamaica and a MBA at Cambridge University. |Kirkpatrick Binns: Operation manager. Binns is the owner of Legendary Manufactures and has worked as operation manager for six years at Docks producers in | |Martha’s Vineyard. He has received a B. Sc. at the University of Technology Jamaica and a MBA at Texas A&M University. | | | | |Management Team Gaps | | The following important gaps exist: †¢ The present team has little sales experience. †¢ There is no current in-house designer – this should be corrected within a year. †¢ There is no international manager. †¢ Personnel The personnel plan calls for adding three employees by the end of the first year for a total of eight. After the second year, employment is expected to increase by another four. These new employees will go into production and sales. Swiff Electronics aims to provide the finest services to its employees. In fulfilling this aim the company provides benefits for all full time employees which include: ? Health plan ? Life insurance ? pension plan The company also observes all public calendar holidays. For public holidays, salary paid employees will receive a day off, and hourly paid employee will receive double pay for the hours worked on these days. All employees are also entitled to three sick days per month however only full time employees will receive pay for these periods. Vacation time is available for all employees having being with the company for a minimum of one year. The following give detail has to how the time is allotted: |NUMBER |VACATION | |OF YEARS |TIME (working days) | |1 |5 | |2 – 4 |14 | |4 and over |28 | For employees who may experience a death in the family they will be eligible for additional days off. For death within the immediate family, employees will receive 4 working days off (spouse, children, parent etc. , and 2 working days off for other members of the family (cousin, uncle, aunt etc. ). The company will also present a floral presentation to the team member who has experience such tragedy. Swiff Electronics hiring policies are governed by: ? Title VII of the Civil Rights Acts ? Age Discrimination Law ? The Americans with Disability Act ? The Family Leave Act As the company gives equal opportunity to all applicants irrespective of the colour of their skin, religious believe, age, nationality, disability and sexual orientation. Organizational Chart [pic] Work Schedule [pic] Work period April 9, 2007 – April 15 , 2007 Approved by_________________________ | |Names | |ITEM |QUANTITY NEEDED |PRICE FOR EACH |TOTAL PRICE | |Desk |5 |4080 |20400 | |Chairs |8 |3200 |25600 | |Shelving |9 |3700 |33300 | |Lounge chairs |3 |6900 |20700 | | | | | | |Total for furniture and fixtures |100000 | Machinery / Equipment | |Computers |3 |40000 |120000 | | | | | | | | | | | | | | | | | | | | | | | | | | |Total for machinery and equipment |120000 | |Checklist for start-up cost |Inventory | |57,866,000 | |Furniture and fixtures | |100,000 | |Machinery and equipment | |120,000 | |Prepaid expenses | | | |Insurance |150,000 | | |Grand opening advertising |70,000 | | |Legal fees |80,000 | | |Accounting fees | | | |Employees wages |300,000 | | |Other | | | |Total prepaid expenses | |600,000 | |deposits | | | |lease |120,000 | | |Utility | | | |Tax |994,500 | | |other |50,000 | | |Total deposits | |1,299,500 | |Building and renovation | | | |If purchased | | | |Sales price | | |Construction /renovation | | | |If le ased | | | |Leasehold improvements | | | |Total location cost | |0 | |Working capital | | | |Owners salary |500,000 | | |Employees salary | | | |Employee taxes | | | |Rent | | | |Advertising | | | |Utilities | | | |Supplies | | | |Telephone | | | |Legal/accounting fees | | | |Loan payment | | | |Repairs/maintenance | | | |Auto/travel expenses | | | |inventory | | | |miscellaneous | | | |Total working capital | |500,000 | |Total Start-up cost 60,350,500 | Financing 1. What are your total start-up costs? $ 60,350,500 2. How much will you invest from personal funds? $350,000 3. How much will you obtain in other equity? 0 4. How much will you borrow? $60,000,000 Bank loan$ 5,000,000 Borrowed for 5 years at 17% interest Finance companies $55,000,000 Borrowed for 7 years at 16. 45% Opening Day Balance Sheet Assets Current assets Cash (working capital)500,000 Supplies Prepaid expenses465,000 Inventory 57,866,000 Total current assets$ 58,831,000 Fixed assets Furniture/fixtures100,000 Machinery/equipment120,000 Renovations Total fixed assets 220,000 Total assets$ 59,051,000 Liabilities Current liabilities Long term debt 60,000,000 Total current liabilities Long term liabilities Total long term$ 60,000,000 Total liabilities$ 60,000,000 Equity Total liabilities and equity Projected Income Statement Sales |72,332,500 | |cost of goods sold | | |beginning inventory |0 | |+ purchases |57,866,000 | |+ freight |0 | |- ending inventory |0 | |= cost of goods sold |57,866,000 | | | | |Gross margin |14,466,500 | |Expenses | | |Employee wages |300,000 | |Legal |80,000 | |Advertising |95,000 | |Rent |120,000 | |Depreciation | | |Supplies | |Utili ties |5000 | |Telephone |3300 | |Interest | | |Repairs | | |Taxes |994,500 | |Insurance |150,000 | |Miscellaneous | | |Total expenses |1,747,800 | |Net profit |12,718,700 | |Less: income | -3,179,675 | |Less: self employed tax | -890,309 | |Net profit after tax |8,648,716 | |Jan |Feb | |Rent |120,000 | | |Telephone | |3,300 | |Legal | 80,000 | | |Insurance |150,000 | | |Total |350,000 |3,300 | Determine breakeven Contribution margin Projected sales for first year$ 198,738,715 Gross margin$ 173,598,000 Contribution margin =. 87 Break even Total fixed expense4,200,000 Contribution margin0. 87 Break even point BE= 4,200,000/0. 87 = $4,827,586. 21 Legalities ____________________________________ Swiff Electronics is a partnership or limited liability company. The decision to choose this organization form is as a result of legalities that surround our organization. Being a limited liability organization gives us the opportunity to pull together the needed funding as well as a profound and well grounding decision making team. Calfrod Ramsay the Marking manager is currently in discussion with the producers of our product, making agreement to be the main distributor of the Spot Charge within our marketing environment. With that agreement finalize no other company would have legal right to purchase or be a distributor for the manufacture of Spot Charge within this market. Insurance Requirements ____________________________________ In ensuring the safety of our employees and property is . Swiff Suppliers ____________________________________ Swiff Electronics source all its products from Teqtronics Manufacturing located in China. Although there are not the only suppliers, Teqtronics has proven to be more consistent in their business agreements and the quality of the product they offer. They are also the only producers of the brand and type of Spot Charge that we will be marketing. The credit terms offered by Teqtronics are unbeatable and they give us the opportunity to choose the quantity of products we would like to order based on the demand of our customers. Uncontrollable risks ____________________________________ There are a number of uncontrollable risks that plagues new businesses that are now on the list of Swiff Electronics. These risks include: ? Natural disasters – Hurricanes – Storms – Flood etc. ? Rate of inflation ? Changes in technology ? Changes in consumer tasks and life style ? New competition ? The continuous decrease in value of our dollar vs. our counterparts Conclusion ____________________________________ [pic] ———————– Managing Director Dexroy Jones Financial Controller/ Administration Keon Hinds Marketing and HR Manager Calford Ramsay Product Development Dwayne McKay McIntoch Marketing and sales TBA Operations manager Kirkpatrick Binns Administrative Assistant TBA Marketing and Sales TBA

Management of the Cash Position Essay

Not only do these managers often have difficulty in comprehending sophisticated forecasting techniques, but the cash flows of their companies are usually dependent upon fewer customers and a smaller number of product lines than those of their larger competitors. Thus the cash flow pattern of the small firm is typically too unstable over time and the available data describing it too limited for reliable forecasting. The small business is subject to still other constraints, apart from those applicable to all firms, which tend to restrict the use of even relatively simple cash management techniques. Small firms, for example, are normally unable to afford the division of talent available to larger companies in the form of highly educated financial managers. Many small firms, struggling hard just to remain solvent and earn a fair return, suffer further from lack of recognition that a cash management problem even exists. Once a problem is discovered the manager may lack knowledge of the methods available for a viable solution. A solution which requires more manpower or expenditures than can be covered out of normal cash flow is Dr. Grablowsky is assistant professor and rhairman of the Department of Finance at Oid Dominion University. He has published articles in the JSBM, the Journal of Financial Education, and the Journal of Behavioral Economics. Prior to his entry into education. Dr. Grablowsky was with the Department of Cost, Planning, Systems, and Analysis at the Monsanto Co., World Head, quarters, St. Louis.  typically rejected by the small business.’ This article will present the results of a survey of small-business cashmanagement practices and compare these methods with techniques commonly employed by larger corporations. Small businesses are defined in this study as firms with annual sales under $5 million.’ Data for this study were collected by means of a mail questionnaire distributed to two hundred firms selected randomly, within the various business classifications, from classified advertisements appearing in the telephone directories of the Greater Norfolk-Portsmouth SMSA and the  Hampton-Newport News SMSA. The firms were selected in five different distribution levels, with annual sales varying from under $50,000 up to $5 million. The firms in the survey operated at from one to thirteen locations and employed up to three hundred persons, although more than half had fewer than ten employees. Of the two hundred businesses selected for study, 66, or 30 percent, responded. A breakdown of the respondent firms by industry and size is given in Table 1. The Cash Budget It was hypothesized that few of the firms with sales under a million dollars would prepare cash budgets; in fact, only 30 percent of all firms in the sample did so. Several interesting relationships were noted in this regard. One was that the newer firms 1 For an example of this situation see B. J. Grablowsky, â€Å"Management of Accounts Receivable by Small Businesses,† Journal of Small Business Management, Vol. 14, No. 4, October, 1976, pp. 26-27. 5 According to E. Donaldson, J. Pfahl, and P. MuUins, Corporate Finance (New York: The Ronald Press Co., 1975), pp. 22-23, this would include, based on average sales per company, over 86 percent of all firms in the U,S. budgets, the larger ones updated their budgets more frequently than the others. One of the reasons for the more frequent update was that none of the largest firms made more than a thirtyday cash forecast while the smaller ones normally made budgets for up to a year. This last finding is in agreement with the results of other studies showing that few firms with  sales under $3 million make sales forecasts, whereas virtually all firms with sales over $10 million prepare one or more projections for various planning periods.’ As the firm grows, cash budgeting becomes more essential.† Of the firms that prepared cash budgets, an annual planning period was the most common, although some also used weekly, monthly and quarterly budgets. No company made a cash budget for more than one year. The frequency of updating the budgets was well distributed over weekly, semimonthly, monthly, quarterly, and annual intervals. Another question asked whether or not the firm’s cash balances were being handled in the most effective and efficient manner. Of the 67 firms sampled, forty-eight replied that they felt they were efficiently utilizing their cash balances, but, of these, only eleven regularly prepared cash budgets. The assumption by the 37 firms that did not prepare cash budgets that they were efficient in the use of their cash balances is certainly made in ignorance. Conversely, of the remaining 56 firms that did not preoare cash budgets twenty-three replied, and probably rightly so, that they were not using their cash balances in the most 3 See Orgler. Cash Management, pp. 4-13, for a discusFion of factors affecting the time horizon for cash budgets. A’so see: Keith Smith. Management of Working Capital (St. Paul, Minn.: West Publishing Co., 1974), pp. 35-49, for a survey of the practices of large businesses. < Soldofsky and Olive, Financial Management, p. 559. were more likely to prepa re budgets than their longer-established competitors. A possible explanation lies in the higher educational attainments of the owner-managers of the newer firms. This characteristic, together with the attitudes of the owners toward budgeting, is believed to be a major determinant of the efficiency with which financial planning is handled in the small firm. The d^ta also showed that, somewhat contrary to expectations, in the size categories which included the largest and the smallest firms (i.e., those with less than $50,000 and those with between $1  million and $5 million in sales) a smaller percentage prepared cash budgets than in the other groups. This result was expected for the smallest firms but quite unexpected for large ones. On the other hand, of the firms that prepared cash  effective manner. This realization alone should have provided impetus to the managements concerned to investigate the need and advantages for cash budgeting—yet they still failed to prepare the budgets which could have improved their cash flow performance. The managers of these firms recognized that they had a problem—the need for more efficient cash management—yet they failed to take the proper steps to solve it. These same firms tended to take fewer of their allowed trade discounts than others, suggesting that because they did not forecast cash flows they found it necessary to resort to expensive sources of financing such as foregoing discounts. Cash Collection  actions that they could take themselves. Although only about half of the respondents had even heard of lock boxes or concentration banking, more than one-third did use one or both of these methods for reducing float time. Generally, the respondents reasoned that they could not justify expending the time and money required to reduce float, because such action would not (in their opinion) materially improve the cash position or the profits of the firm. As with many other decisions confronting small businesses, this one was usually made with inadequate information or investigation. The principal reason, again, was the lack of human resources and expertise available to the small firm. Wholesalers, because of the regional or national nature of their sales, were the most frequent users of these techniques. Businesses with a local sales orientation, such as service establishments and retail stores, were much less likely to use any method to improve cash collections.