David Orton PLC Essay Example | Topics and Well Written Essays - 2500 words

David Orton PLC - Essay Example In order to understand the challenges that Costwise employees have to face since the merger of their organization with Ortons it is necessary to refer primarily to the main events followed the above merger, meaning the events that are likely to affect the employee relationships across the organization: before the merger both firms, Ortons and Costwise have been quite powerful in the British retail industry. However, the two firms had a different culture, as reflected in their strategic priorities: for Ortons, keeping its prices at a rather high level, ensuring the quality of its products, and increasing the number of its larger stores have been the most important elements of the firm’s strategy. In opposition, the stores of Costwise were of various sizes; developing an effective communication with customers has been more important in Costwise instead of increasing the number of profits. Moreover, the level of compensation in Costwise has been lower than that of Ortons, a fact that has not negatively affected the performance of employee in Costwise. After the merger, when the differences between the two organizations revealed, employees in the two firms have been asked to cooperate for promoting the plans of the organization resulted by the merger, the David Orton plc. However, inequalities in compensation and in the participation of employees in the firm’s decision-making process led employees in Costwise at a lower position compared to their counterparts in Ortons.

Analysis of RadioShack Essay Example | Topics and Well Written Essays - 500 words

Analysis of RadioShack - Essay Example The company is suffering from net cash outflow instead of net cash inflow and this threatens to deplete its cash and cash equivalent reserve. This means that the company may be bankrupt in the near future and creditors are likely to lose their stake in the company. The company is also not doing well in its profitability because this source of cash inflow could offset the deficit in cash and cash equivalents that the company suffers (Carrasco 1). Possible stiff competition and poor operational management could be the reasons the organization is not doing well. While a large percentage of the organization’s stores are based in the United States, these stores have not been profitable to generate sufficient cash and facilitate growth. Competition could have also constrained demand, leading to high levels of inventory, and reduced profitability. Assuming the role of competition in the organization’s performance, poor operational strategies that have failed to minimize cost would be another reason for the current condition. The inefficient growth strategy is another reason for the condition because while the company is realizing challenges in its United States’ market while other markets remain promising, it has failed to shift its focus to the other regions (Carrasco 1). The economic approach to â€Å"profit maximization and marginalism† are the central principles to the problem that the company faces (Nicholson and Snyder 374). Under the profit maximization principle and within the scope of a competitive market, the company should operate at a level where the difference from its marginal costs to its marginal revenue approaches zero from the positive side (Mankiw 283, 284). This could inform production level and reduce or mitigate the realized negative cash flow, and develop creditors’ confidence and finance management’s efficiency.  Ã‚