Essay on Policy Process Theories

Essay on Policy Process Theories Essay on Policy Process Theories Essay on Policy Process TheoriesThe Stages-Heuristic theory is one of the highly influential frameworks for the study of the policy process, which was developed in the 1970s-1980s (Dudley, Parsons, Radaelli Sabatier, 2000). According to this theory, the policy making process is divided into several stages. The stages of policy development include agenda-setting, policy formation, policy legitimation, policy implementation, and policy evaluation. One stage moves to the next stage. For example, agenda-setting stage involves the list of issues that require special attention of officials. Then, agenda-setting stage requires narrowing the list of issues or subjects in order to move to the next stage, from government agenda to the decision making agenda. This framework played an important role in transforming political theory research and provided an opportunity to analyze each stage of policy making process. Different factors can influence the policy making process within each stage. How ever, the Stages-Heuristic theory has been criticized severely because this theory does not provide causal drivers that â€Å"govern the process within each stage† (Gornitzka, Kogan Amaral, 2006, p.18). This theory can be compared to the other dominant theoretical frameworks, such as Institutional Rational Choice model developed by Kiser and Ostrom in 1982. The strengths of this framework as compared to the Stages-Heuristic framework include the focus on institutional rules, which may change the behavior of individuals and the close relationships between institutions. Institutional Rational Choice model has become rational choice theory, which makes the policy process the so-called ‘bargaining game’ between individuals or parties. This framework assesses public policy as a set of the proper institutional arrangements, which consist of certain rules and norms that shape the interactions and strategies of actors. The weakness of this framework is that it can be ap plied to some specific context, providing the effects of various beliefs systems on institutions and policy process.

The Distance Between Two Leagues

The Distance Between Two Leagues The Distance Between Two Leagues The Distance Between Two Leagues By Mark Nichol What does league, meaning â€Å"alliance,† have to do with league, meaning â€Å"a few miles†? An attempt to find kinship between these words by positing the notion of linking several similar entities or units is futile: The identical formation of the words is coincidental. The first sense of league stems from the Latin verb ligare, meaning â€Å"bind† and the basis of ligament, meaning â€Å"band† or â€Å"bond,† and ligature, which means, among other things, â€Å"something that binds or connects.† League originally referred to a confederacy of geopolitical units (such as the Achaean League of classical Greece and the Hanseatic League, an economic alliance established in the early Middle Ages, as well as the League of Nations of the early twentieth century) but later came to apply as well to political associations and athletic organizations. People or organizations that conspire are said to be in league with each other, and when someone outclasses someone else in terms of some characteristic, the first person is said to be out of the other person’s league, while â€Å"in a league of (one’s) own† means â€Å"superior skill or status.† By contrast, â€Å"in the same league† means â€Å"of comparative skill or status.† On a related note, the expression â€Å"Ivy League,† from the name of the collegiate athletic league populated by eight of the nation’s most prestigious universities, by extension denotes the schools themselves as well as high social and cultural status and elitism. (The reference to ivy pertains to the walls of venerable school buildings being covered in ivy over the years.) League is also a verb meaning â€Å"unite,† but the verb beleaguer, meaning â€Å"besiege,† is unrelated. Idioms pertaining to the â€Å"confederation† sense of league include â€Å"major league,† originating in the term for the highest level of professional baseball but by extension alluding to significant actors or entities in a realm of human endeavor (â€Å"in the big leagues† has the same sense); â€Å"minor league,† denoting something of inferior status (from the lower caliber of play in baseball’s minor leagues); and â€Å"bush league,† which, based on the slang term for semiprofessional baseball (from the expression â€Å"the bush,† referring to a rural area) suggests petty, unprofessional behavior. (The last term was not always pejorative, however.) The sense of league of a measure of distance derives from the Latin noun leuga and is primarily understood to refer to a distance of three miles, though it has applied to measures ranging from about two and a half to approximately four and a half miles. (It can also apply to a square measuring about three miles on a side.) A league, thought to originate as the distance traveled on foot in one hour, it is no longer an official distance. The French term banlieue, meaning â€Å"suburb† but increasingly connoting low-income housing projects (though banlieues diverge widely in economic status), is a geopolitical term, but it is distantly related to the latter sense of league: It is a compound ultimately derived from the Germanic terms ban, meaning â€Å"proclamation,† and leuca, meaning â€Å"league,† with the connotation of â€Å"area outside the city but within its legal jurisdiction.† Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:35 Synonyms for â€Å"Look†What to Do When Words Appear Twice in a Row50 Synonyms for "Song"

International human rights Essay Example | Topics and Well Written Essays - 3000 words

International human rights - Essay Example Consultation with employees is with their representatives and not individual employees. The definition and role of the representative body will depend on national legislation and workplace practices1. Collective bargaining is to be employed at the workplace, in order to resolve disputes between employers and employees. Various policies relating to workplace have been implemented by the statute, and the employer can include certain policies at his discretion. This directive was implemented by the Information and Consultation Regulations, whose precedent was the European Works Council Directive of 19942. The new directive will require the UK to provide a universal right to its employees in various establishments and undertakings. Integration of the new directive into the national legislation of the UK will require the government to enact a universal statutory framework for employees. â€Å"Transposition of the EU information and consultation Directive means that the UK now has, for the first time, a general statutory framework giving employees the right to insist on being informed and consulted by their employers on a range of key business, employment and restructuring issues3.†The existing legislative strategy of the government is providing greater flexibility to employers while responding to the EU Regulations. Employers can initiate negotiations on agreements that are specifically designed for organizations4. â€Å"Since the mid 1970’s – employers in the UK have faced legal obligations, emanating mainly from EU Directives, to inform and consult with employees on specific issues, such as redundancies and business transfers5.† They are under a legal duty to inform and consult with their employees, in respect of certain policy matters, such as redundancies and business transfers. In the year 1994, the ECJ ruled that employers were under an obligation to consult and

Expropiation of Assets in Venezuela Essay Example | Topics and Well Written Essays - 1250 words

Expropiation of Assets in Venezuela - Essay Example The legal definition of expropriation is the taking away of private property in favor of the government for public use in the greater interest of the public. Any vital industry could be subject to expropriation whenever the government sees it fit to do so but this move is also very highly controversial since it runs against the sanctity and protection of private property. It runs counter to an economic principle that business enterprises is better left to investors and that government's business is to support and stay out of the way of business enterprises. It is always a subject of contention because of another issue, which is just compensation. Private property could be taken away by force of government edict, without or very little form of just compensation to the previous owners. The question of proper and correct valuation is also a very serious issue during expropriation as the investors need to get their money back. The compulsory seizure of private property could be applied to any property or to an industry considered as vital to the national interests. The state has always exercised three very important powers for it to govern effectively: police power, the power to impose taxes and the power of imminent domain. The last pertains to the right of the government to take away any property in the greater interest of public benefit, such as taking away privately-owned land to expand a road network, for example, or force people to move to a different location because of plans to create a dam and the place would soon be underwater. It is done all in the name of economic progress or for public safety. However, in the case of expropriation, it is an entirely different matter altogether. This paper argues that expropriation is clearly a wrong step. Discussion There are instances when expropriation is justified, such as during wartime condition in which the government needs to act quickly in the exigency of the situation. In this case, it is clearly justifiable to do so because the national interest is at stake. Failure to act would be the equivalent of gross negligence or the abdication to perform a public and civic duty. History is also replete with instances in which expropriation took place with most of them falling under this justifiable classification of protecting the national interest for the greater public good. An industry considered as vital to the national interests' such as the transport industry, the mining industry, the communications industry or the health industry could be expropriated but a move to do so must be justified to the public and to the investing community. Any expropriation will surely send shivers to investors who now would think twice about committing their money. The difference between the power of imminent domain and expropriation, when it is exercised by the government, is that the former is seen as lawful while the latter is unlawful. The first in stance involves a certain process to be followed, such as proper notification of the party involved and providing for just compensation. The second instance is often very abrupt and does not require the government to justify its actions of expropriating private properties. In other words, it is simply just an act of confiscation and seizure by the government. When people started living in organized society, there is an implicit agreement in the people giving up certain rights in favor of the State for the right of being government by that State for their benefit. This is necessary because without this social contract, societies would be chaotic as no one will be able to enforce laws designed for an orderly existence. However, there are also limits imposed on the State and one of the most sacred principles in the modern society is the right to own private property. It is always protected by the laws of any nation. Expropriation is controversial in the sense

The Corporate Rationale Of The Virgin Group Marketing Essay

The Corporate Rationale Of The Virgin Group Marketing Essay Richard Branson,founder of Virgin and is considered to be the single most important ingredient to all the successes that has been reaped.This case study examines the Virgin Group corporate strategy and it identities the relationships within the Virgin Group.Virgines value adding activities and qualities are discussed.The Virgin Group is comprised of many different assorted mixes of businesses. The Virgin Group is diversified into 200 businesses and it has a finger in every pie. Looking at the case the overall corporate rationale is simply a projection of Richards own philosophy and his personal persona that is revered and became respected by the public.Richards high profile allowed the Virgin brand name to be the far most important asset to the company. All the businesses in the Virgin Group are strategically targeted towards a five pillar empire that Richard created. These pillars are travel, leisure, moblie phones, entertainment, retailing and personal finance. All the businesss within the empire all the managers to have freedom to make decisions independently for growth and allows them to feel the same degree of ownership and values. Richard Branson, founder of Virgin in 1970 is in the authors opinion the single most important reason to all the success that has been reaped up-to-date. The corporate rationale is simply a projection of Richard Brandons own personal philosophy, which he has introduced into the structure of corporate rational. The Virgin Group is comprised with many assorted mix of businesses.(Rob Abdul, 30/01/02) Corporate rationale is the way in which a corporate parent envisages the way that it can add value to its strategic business units. The Virgin Groups rationale is to diversity into as many markets feasible, and extend the Virgin brand name further at a low cost; where stature could be relied upon to reduce barriers to entry into static markets. The following will be discussed below. The Virgin Groups rationale is to diversify into as many markets that are feasible. They want to extend the Virgin brand name further at a low cost where stature could be relied upon to help reduce the barriers for entry into a static market. The Virgin Group looks for a challenge in every venture and aims to providing better quality products than the competitors do. The Virgin Group aims at entering a market that is still in the growth phase. (Rob Abdul, 30/01/02) The Virgin Group sees itself as a restructurer, this means that it has low central costs due to relatively small corporate centre, with fairly minimal involvement at business level. However they vary from the portfolio managers because they also set about trying to identify restructuring opportunities within their businesses and have the skills and expertise in order to intervene and introduce these changes where necessary. ( Jenn,2008) The Virgin Group has a wide range of strategic business units about two hundred ranging from airways to drinks, and makeup to publishing. Virgins corporate rationale is that they try to enter static market, in which there are few competitors and where consumers do not get value for money.The Virgin Group enters these markets that are still in the growth stage and to try and shake them up, for example they did this with Virgin Airways and Virgin Cola. By entering the market that is still in its growth stage and has few competitors Virgin managed to produce the product or service for a slightly lower price than all other competitors within the market then they should , along with their strong Virgin brand name. Virgin Group gained a big market share fairly quickly because they had lower prices than everyone else. This is a good way in which to enter a market because it surprises the other competitors who may have become too comfortable in this monopolistic market, and has a potentially huge initial gain. Using the surprise tactic ensures that the other market leaders will not expected your move and result in a slow response , for example when Virgin entered the airways market, the British Airways had not anticipated them as competition and so were not prepared to be able to cut costs and compete. So Virgin Airways gained a big share of the market very quickly. Excellent management practices has also been refer to as a major strength of this group, and is there for one of the most significant components of its corporate rationale. The Virgin Group corporate rationale was also diversify into as many markets that were feasible and extend the Virgin brand name at a low cost. The Virgin Group looked for a challenge in every venture and aimed at providing better quality products to their customers and better than their competitors. The Virgin Group corporate rationale was to sacrifice their short-term profits in order to gain a longer-term growth and therefore they used an independent business level decision making method. This corporate rationale allows the managers to make decisions independently for growth and feel the same degree ownership and values that any other manager would feel in the Virgin Group. (Rob Abdul,30/01/02) Virgins rationale for expansion was based on fierce external diversification strategy and Richards constant need to be creative in his approaches to new challenges. For Richard the brand is very important and is an asset. The ultimate objective is to have an established global name and therefore the Virgin Group needs to have a number of core businesses with global potential, with expansion this can be achieved. . Are there any relationships of a strategic nature between the businesses within the Virgin Group? The Virgin Group is formed by various strategic business units (SBU). A strategic business unit is a part of an organization for which there is a distinct external market for goods or services that is different from another SBU. (Rob Abdul, 30/01/02) Basically, there are 56 strategic business units in the Virgin Group. For example, there are Virgin Travel and Virgin Trading in the Virgin Group. As previously mentioned all the businesses in the Virgin Group are strategically targeted towards a five pillar empire system that Richard created. At the heart of Virgins core strategy is to develop the five pillars of the business empire which includes travel, leisure, mobile phones, and entertainment, retailing and personal finances. Looking at the diagram below it shows that all the ventures have the same brand name. The Virgin Group Figure 1, The Virgin Group As this diagram shows that the brand name is the main strategic relationship and this creates a strong acknowledgement from customers. Giving a venture the name Virgin sends out a message to the customers. The brand is associated with the words fun, innovative and daring. This can result in transfers of all marketing and promotional activities up to the present for the specific venture respectively. (Rob Abdul, 30/01/02) The Virgin Travel consists of Virgin Atlantic, Virgin Holidays, Virgin Aviation and Virgin Balloon. The Virgin Trading consists of Virgin Megastores, Virgin Enterprises, Virgin Clubs and Virgin Cosmetics. Several strategic relationships exist within the Virgin Group. One of the most recent of these strategic relationships involves it offer to customers of digital and mobile phone services as well as broadband internet service. Virgin Digital UK offers digital music to a wide variety of customers in mediums that are compatible with a wide range of software and digital hardware. The company boasts a high preparation for this market as it has deep roots in the music industry, beginning with its record company Virgin Records, because of Virgins Records previous ownership and rights to many music tracks the company has benefited by it having already at its disposal thousands of tracks to make available to the public (Baker Capital, 2005) This is the partnership involved with the mobile phone service company under the Virgin Label. Downloading music to mobile phones is an advantage that can be offered to Virgin mobile customers as an incentive to subscribe or switch to Virgin mobile service providers. This is also an advantage for the Virgin broadband provider, as it allows the Group to further integrate its digital services to include internet service and offer such packages and exclusive deals that have the potential to draw even more customers. (Marivic Butod, 2007) Another strategic relationship exists among the Virgin transportation companies. The Group of airlines (Virgin Atlantic, Virgin Galactic) have the distinction of offering the lowest fares for packages in the Atlantic and other parts of the world. The ability to offer flights to and from more unknown and less-travelled destinations is granted to Virgin because of partnership between and among the virgin airline companies of the different regions. Furthermore, the benefit is extended by the existence of a partnership with Virgin Rail that offers extended service via railway farther into more unreachable regions of the European continent. The Virgin Group tries to create and grow relationships with directors, managers and pilots within Virgin Galactic and all the business in the Virgin Group strategically targeted towards travel, leisure, mobile phones, entertainment retailing and personal finance. All the businesses within the Virgin Empire allow the managers to make decisions independently and this allows them to feel the same degree of ownership and values that any other manager. Businesses were ring-fenced in order for the assets not to be switched between companies in the Virgin Group and if any company became too large another company would be put in its place. The name Virgin became synonymous with Richard Bransons name and this key psychological strategy helps with marketing and promotions because this at the end of the day helps them expand and get well known. Therefore many businesses outside the Virgin Group have shown their interest though joint ventures as the Virgin brand name is becoming well known. Does the Virgin Group, as a corporate parent, add value to its businesses? If so how? Corporate parenting places collective responsibility on local authorities to achieve good parenting for all children in their care. It requires ownership and leadership at a senior level, this includes all elected members. They make sure all councillors in your council understand their corporate parenting responsibilities and are committed to fulfilling them. (Marivic Butod, 2007) The Virgin Group as a corporate parent values all its businesses. The Virgin Group achieves value by understanding the institutionalised markets. The Virgins management team has done a good job in identifying satisfaction in the market. The management team expertise and experience matched with the strategy allows the company to offer more for less. The Virgin group also added value to its businesses with the brand name and used the brand name to help overcome barriers to entry. The Virgin brand name is a consumers supporter and as mention before the brand is much respected with the British public. The Virgin Group at a corporate parent also helps with limiting the risks for the other businesses joining in the joint venture. Any company, corporation or organisation that is in a joint venture with the Virgin Group had the benefits of limiting the risks associated in the market place. The other value that the Virgin Group contributes as a corporate parent is that they do not restrict the management teams. The Virgin Group has a flat management structure which helps encourage innovation, flexibility and it can help promote the values of shared ownership and responsibilities. (Rob Abdul, 30/01/02) The Virgin Group ensures that innovation is amongst the staff members and helps ensure that the individuals are successful in their careers. The Virgin Group acquires partners that have the same mind set for the venture and they ensure that they match their ability to be innovative and create differentiation for their particular company. These innovative thoughts and ideas are then applied directly into the business and therefore helping it to be successful. Virgin Mobile is an example of this innovation as it formulated a partnership with the existing telecommunications operators to retail in mobile services. The virgin Group and their management team were successful at identifying that the agreement was in the handling of the network management. Due to their innovation of their joint ventures and networking it promoted a unique service to the market. Virgin as a corporate parent added workable value as well to its businesses by investing and developing the employees and real expertise. With all the joint ventures that the Virgin Group have made they did indeed limit some risks but they also contradicted some signals to the customers by having so many businesses and if the one performed badly the other separate businesses with the brand name stand a chance on been labelled as the same. (Rob Abdul, 30/01/02) In a sense the Virgin Group is a community, every Small Business Unit in it share ideas, values, interests, goals, and the most important, they share the same brand. Therefore the Virgin Group as a corporate parent have set standards and helped the businesses know exactly how to create value to the customers and how to ensure that the brand name is upheld. The Virgin Group as a corporate parent does value to its businesses and has achieved it though understanding the institutionalised markets, using the Virgin band name to overcome barriers to entry, it limited risks by going into joint ventures with different companies, it does not restrict the management team and the Virgin Group shows innovation. Virgins management team have been doing very well when it comes to identifying a market that is still in its growth stage and markets with very little competitors. It is this expertise and experience that is coupled with the strategy to offer more to the customers for less and it has helped the Virgin Group plough though complacent business industries. As a corporate parent virgins brand name has helped to overcome barriers to entry. The fact the brand name is well established and accepted by the public it has helped with getting into certain markets and to expand into areas where the Virgin Group believes it can make a difference and offering something different to the consumers and a good price. Virgin has limited the risks by going into joint ventures and any company that goes into a joint venture with Virgin also benefits the limitations of risks in the market place. As a corporate parent it helps the new venture as one have limited risks as it is under a well known brand of standards and low cost. It also encourages the management teams to be independent and make choices that will better the growth of the company. Virgins corporate rationale to innovation allows the staff members to be successful in their careers. The Groups acquires partners that think alike and that match their abilities to innovation and differentiation. This should then be applied to the whole business. For example Virgin Mobile formulated a partnership with existing telecommunications operators to retail in the mobile services. This innovation leads them to promote unique services and better offers to the customers. What are the main issues facing the Virgin Group and how should they be tackled? The Virgin group of companies was faced with two main issues. In the short term was the groups financial situation. A number of Virgins businesses were experiencing substantial negative cash flows. Despite plans to generate funds this still left poorly performing companies such as Virgin Express, Virgin Megastores, and Virgin Money, where offloading Bransons equity stakes would prove more difficult. Looking at virgin Atlantic which is an airline industry it indicates that the Virgin Group relied on this airline to make the profits and when deregulation increased the competition within the market place caused Virgin Atlantic to make some Losses. According to the Virgin Rail the biggest problem that they face is that the uses of this form of transport is voted as the unpopular rail operator and the fact that Virgins rail statistics were ranked low. Virgin Groups brand name was slowly chipped away by the press due to their reputation of the rail transport. The Virgin Group, been a larger empire, faces publicity blindly due to the fact if things were going right all is good, but then all it takes is a handful of businesses in the empire to either experience unavoidable consequences. Virgin Atlantic is an example of this as when there was bad services provided and with the bad publicity of the Virgin Rail it caused a disastrous effect opn the other areas within the empire. (Marivic Butod, 2007) Virgin name became diluted and doing analysis of the environment must be learned and that is what they did after these events occurred. The public is sensitive and as a corporate parent Virgin can add value to its businesses by investing and developing real expertise. Therefore Virgin should change its policy to accommodate both independent and joint ventures to rely on short term profits. The main issues facing the Virgin Group is Virgin Atlantic and virgin Rail. Virgin Atlantic is the airline industry and like any other industry it id cyclic. This proved to be dangerous in 2001 because the Virgin Group seemed to rely entirely on the profits of Virgin Atlantic. To make matters worse deregulations increased the competition in the market place and this caused all most competitors were experiencing losses. The biggest problem faced by the Virgin Group though was the strategic Rail Authority review in 2000 because it was the most public. Virgin Rail was voted as the unpopular rail operator and it was ranked 23rd and 24th out of 25 operators. This was a major issue as it damaged a part of the Virgin reputation. That was not bad until the press slowly chipped at the company. (Marivic Butod, 2007) CONCLUSION: The key emphasis on this case was innovation and differentiation. The aim was to offer more for less and that each company was truly a Virgin in its own field. Although to some this notion may seem a bit too good to be true, yet no one can deny that the virgin group is one of the UKs largest private companies. Success was the result of Richard Bransons philosophy and approach in his company. By using effective leadership, giving motivation, employing effective communication, interaction, job redesign, building trust and respect, it is very clear that the company has been performing well in various industries that it manages. The main aspirations of the Virgin Group of the companys key stakeholders is to continue expanding operations and various international business locations, new kind of business ventures and to enhance the reputation of the brand. Virgins marketing is customer focused and is apparent that every major and minor decisions and plans created are based on the result of researches conducted and founded on the customers. Furthermore the services and products are something better and more valuable. Virgin bases its pricing strategy on several key trends that shape the global marketplace.

Cash Buget Essay

The Cash Budget One of the major functions of corporate finance is to anticipate the need for funds in the company. Although there are several methods for forecasting these needs, the cash budget is the most accurate (and most commonly used) method available. Cash flows through a company like water flows through a pipe. (See the cash flow pipeline.) A cash budget essentially maps out these cash flows and indicates the period in which they will occur. Cash budgeting, at its core, is a very simple procedure that simulates cash flowing through a company. If we can accurate estimate (1) the amounts and (2) the timing of these cash flows, then we can also estimate whether the company will experience a shortage of cash (or an excess of cash) during any given month. The primary cash inflows for a company consist of (1) cash sales and (2) collection of accounts receivable. An accurate sales forecast is a necessity if we are to construct an accurate cash budget. If we then know the terms that we sell on (2/10, net 30, for example) and the past payment experience of our customers, we can estimate the amount and timing of these collections. The primary cash outflows are generally (1) payments on purchases, (2) labor costs, and (3) capital purchases (i.e., fixed assets). Other large payments may include rent, taxes, and These and other cash outflows must be estimated as to the amount and timing of the payments. Pro Forma Statements It is also useful to know what the company’s income statement will look like for the forecasted period and what the balance sheet will look like at the end of the forecasted period. If either of these two statements show weaknesses, we can plan now to take steps that will prevent these deficiencies from occurring. Fortunately, cash budgets and pro forma statements are easily programmed using electronic spreadsheets like Microsoft Excel. This is especially handy since cash budgets involve a large number of relatively simple calculations. Spreadsheets Cash budgets are usually placed on an electronic spreadsheet, where data may be entered and updated frequently. The two spreadsheets below are examples of spreadsheets for 3-month and 12-month planning periods. An Illustration Let’s consider a sample cash budgeting problem, with its solution. An explanation of how the numbers are determined may be seen by clicking on the appropriate links in the â€Å"Solution† section of this page. A SAMPLE PROBLEM Glenda Byers has gathered the data below needed for the preparation of a cash budget for the months of October, November, and December. SALES: (Actual sales for August and September, forecasted sales for October – February) August | $ 45,000 | September | 54,000 | October | 65,000 | November | 75,000 | December | 93,000 | January | 71,000 | February | 55,000 | Based on the past history and current credit terms offered by her firm, Glenda has estimated the following payment schedule for sales: 25% of total sales will be cash sales;   60% of total sales will be collected in the month following the sale; 15% of total sales will be collected in the second month following the sale . (Note: Notice that since the three above collections total 100%, no bad debts on accounts receivable are anticipated. If we anticipated a 2% bad debt rate, we could change the 15% number above to 13%. We would then be anticipating that we would collect only 98% of the total sales.) PURCHASES The company’s markup on inventory is two-thirds of the cost (e.g. a $40 profit on an item which cost $60.) In other words, the cost of the merchandise is 60% of the final selling price. The firm purchases enough inventory to cover sales one month in the future. Based on current credit terms, Glenda expects the following repayment schedule: 12% of purchases are paid for in cash; 78% are paid one month following the purchase, and 10% are paid for two months after the purchase. EXPENSES (per month, unless otherwise noted): Mortgage Payment | $ 2,300 | Wages and Salaries | 3,200 | Lease Payments | 750 | Capital purchases (to be purchased in October) | 7,600 | Property Taxes (to be paid in December) | 11,800 | Other Expenses (%) | 10% of sales | FURTHER ASSUMPTIONS 1. Cash: * As of October 1st, the firm has $3,000 in its checking account at the bank. * The firm desires to have a minimum cash balance of $3,000 at all times. 2. Loan Information: * As of October 1st, the company’s loan balance was $2,000. * The company’s bank requires that interest be paid each month. The interest to be paid is the interest due on the previous month’s loan balance. The interest rate is 1.0% per month on the outstanding balance at the end of the previous month. 3. Fixed Assets: The firm depreciates all capital equipment purchases over a five-year period using the straight line method. 4. Minimum inventory: The firm keeps $30,000 of safety stock on hand at all times.

Definition and Examples of Bad News Messages

In business writing, a bad-news message is a letter, memo, or email that conveys negative or unpleasant information—information that is likely to disappoint, upset, or even anger a reader. It is also called an  indirect message or a negative message. Bad-news messages include rejections (in response to job applications, promotion requests, and the like), negative evaluations, and announcements of policy changes that dont benefit the reader. A bad-news message conventionally begins with a neutral or positive buffer statement before introducing the negative or unpleasant information. This approach is called the indirect plan. Examples and Observations It is much, much worse to receive bad news through the written word than by somebody simply telling you, and I’m sure you understand why. When somebody simply tells you bad news, you hear it once, and that’s the end of it. But when bad news is written down, whether in a letter or a newspaper or on your arm in felt tip pen, each time you read it, you feel as if you are receiving the bad news again and again. (Lemony Snicket, Horseradish: Bitter Truths You Cant Avoid. HarperCollins, 2007) Sample: Rejection of a Grant Application On behalf of the members of the Research Scholarship Committee, thank you for submitting an application for this years Research Scholarship grants competition. I’m sorry to report that your grant proposal was among those that were not approved for funding in the spring. With the reduction in grant funds caused by budget cuts and the record number of applications, I’m afraid that many worthwhile proposals could not be supported. Although you did not receive a grant this year, I trust that you will continue to pursue both internal and external funding opportunities. Introductory Paragraph The introductory paragraph in the bad-news message should accomplish the following objectives: (1) provide a buffer to cushion the bad news that will follow, (2) let the receiver know what the message is about without stating the obvious, and (3) serve as a transition into the discussion of reasons without revealing the bad news or leading the receiver to expect good news. If these objectives can be accomplished in one sentence, that sentence can be the first paragraph. (Carol M. Lehman and Debbie D Dufrene, Business Communication, 15th ed. Thomson, 2008) Body Paragraph(s) Deliver the bad news in the body of the message. State it clearly and concisely, and explain the reasons briefly and unemotionally. Avoid apologies; they weaken your explanation or position. Try to embed the bad news in a supporting, not the topical, sentence of a paragraph. Furthermore, try to embed it in a subordinate clause of a sentence. The purpose is not to conceal the bad news, but to soften its impact. (Stuart Carl Smith and Philip K. Piele, School Leadership: Handbook for Excellence in Student Learning. Corwin Press, 2006) Closing The closing of a message containing negative news should be courteous and helpful. The purpose of the closing is to maintain or rebuild goodwill. ... The closing should have a sincere tone. Avoid overused closings such as If you have any questions, please dont hesitate to call. ... Offer the receiver another option. ... Presenting another option shifts the emphasis from the negative news to a positive solution. (Thomas L. Means, Business Communications, 2nd ed. South-Western Educational, 2009)