Analytical and Comparison of ABC Mining and jPhones - Free Essay Example

Sample details Pages: 11 Words: 3290 Downloads: 8 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? Before progressing on to the analysis of the companies given, a general introduction on asset allocation needs to be satisfied before progressing on this line. Let us see what asset allocation is why it is important for us during this exercise. Before giving any advice on asset allocation certain things needs to be kept in mind or followed so that the exercise will yield good results for the advisor and client. This not only ensure that all client requirements are met but also safeguards his interest against any unforeseen financial difficulty. Fundamental Analysis This involves checking basic financial information about a company going back a few years to check the major financial trends of companies so that a decision can be arrived at. Various investment gurus stand by this method of analysis as they firmly believe that this method of analysis yields results on the long run. The basic information that is sought out to accomplish this are the balance sheet and cash flow statements. Don’t waste time! Our writers will create an original "Analytical and Comparison of ABC Mining and jPhones" essay for you Create order As we are going to adopt a fundamental analysis approach as a first step balance sheet and cash flow statement of ABC Mining corporation and jPhone Ltd are listed below. Following this various financial analysis of various components will be calculated and analysed. The data then gathered would help any financial advisor the best decision that can be taken. ABC Mining corporation balance sheet Profitability Ratio: This ratio measures the profit generating capacity of a company. More frequently it can relate assets utilised, equity present to the sales that has been generated by the company. It gives an overview on the companys ability to generate wealth to its investors, owners, etc. It can be used for comparison against various timelines for the same companies and also across the industry. Return on Capital Employed Commonly denoted as ROCE, this ratio compares the net profit against the capital used to generate that profit. The formula for calculating the ratio is as follows: Return on Capital Employed = Net Profit x 100% Capital employed (including long term loans) Return on Capital Employed = 6195 x 100% = 15.56% Year 2002 39820 Return on Capital Employed = 5214 x 100% = 15.43% Year 2001 33789 Comments: For both the years, the values are quite similar and the change is very marginal. One things that needs to be kept in mind is that the low values can be affected quite quickly during economic downturns. Care needs to be entertained when coming across companies with such low values as investment in such companies will yield very poor returns. Another such ration used to calculate the profitability of an organisation is return on owners equity the formula for calculating the same is below. Return on Owners Equity = Net Profit before Tax x 100% Owners Equity Return on Owners Equity = 8725 x 100% = 23.28% Year 2002 37320 Return on Owners Equity = 5214 x 100% = 22.28% Year 2001 33789 Asset Turnover or Asset Utilisation Ratio As business use assets to generate income, a look at how assets are utilised actually give a pretty good idea of how efficient a company is in generating value using its assets. A better asset turnover actually proclaims an efficient business. Asset Turnover = Sales Net Assets Asset Turnover = 35000 = 0.94 Year 2002 37320 Asset Turnover = 29634 = 0.88 Year 2001 33789 A point to note is the trend in this ratio. An improving ratio denotes improving efficiency. Companies that are becoming more efficient as they mature will exhibit this trend. When compared to the year 2001 to 2002 the ratio has shown marginal improvement. This is a good sign that operational efficiency is improving within the organisation. Net Profit Margin This is the most utilised margin calculation that gives an overview of a firms financial position. If this ratio is poor investors do not usually go beyond this. Gross Profit Margin Gross Profit Margin = Gross Profit x 100% Sales Gross Profit Margin = 9100 x 100% = 26.00% Year 2002 35000 Gross Profit Margin = 7705 x 100% = 26.00% Year 2001 29634 Net Profit Ratio Net Profit Ratio = Net profit x 100% Total Sales Net Profit Ratio = 6195 x 100% = 17.70% Year 2002 35000 Net Profit Ratio = 5214 x 100% = 17.59% Year 2001 29635 Liquidity Ratio Liquid cash is the blood that drives the organisations to function. As such this ratio gives a clear idea of how well an organisation is positioned to handle day to day financial requirements. Liquidity is like a grease applied to a machinery, if applied to an optimal level it maintains an optimal working condition of the machinery. The ratio should be higher than one to denote a healthy status. In case of low values the organisations ability to service its short term debt and operating expenses are under questions. Current Ratio Current Ratio = Current Assets Current Liabilities Current Ratio = 71800 = 2.25 Year 2002 31980 Current Ratio = 53000 = 2.76 Year 2001 19211 Management Efficiency Ratio Stock turnover ratio Stock Turnover = Cost of Sales Stock Stock Turnover = 25900 = 4.31 Year 2002 6000 Stock Turnover = 21930 = 3.66 Year 2001 6000 Common-Size Analysis (CSA) One of the disadvantages of looking at balance sheets is that due to varied methods that are used by a company or companies in different industry one will at a superficial level tend to bias us towards a company that has large values. To overcome such disadvantages a common approach to both the companies needs to be done. One such method is CSA. This compares the same components against a set of data and gives a ratio for comparison of various companies. The formula for CSA is as follows Common Size Ratio = Item of interest Reference Item If the formula above is to be modified for inventories then it can be stated as follows Common Size Ratio for Inventory = Inventory Total Assets Limitations: As companies use different accounting principle the values can be misleading if used carelessly. Care must be taken to ensure that such practises are identified and noted before embarking on any such ratio analysis. The same principle applies accounting calendars practises that may change for various countries of the world. Trend Analysis This form of analysis tries to predict future movement of various components that are being analysed. Though trends analysis gives a clear cut information on the trends, questions remains regarding its ability to predict future trends. Also it does not address operational strategic decisions that are required to be taken, thus even a correct trend analysis can fail simply due to the fact that it is not backed up by operational decisions. Individual Components ABC Mining jPhone Company Change in Value Change in Value % of Change % of Change 2002 2001 2002 2001 ABC Mining j phone ABC Mining jPhone Net sales 35000 29634 412500 350000 5366 62500 18.11% 17.86% Dividents issued 3450 2900 58500 31000 550 27500 18.97% 88.71% retained earnings 5059 2314 116794 79719 2745 37075 118.63% 46.51% fixed asset 49300 38000 169000 180000 11300 -11000 29.74% -6.11% equity finance 54559 43314 531794 399719 11245 132075 25.96% 33.04% Comparative Statement Analysis Funds Flow Analysis Fund flow analysis involves categorising stratifying the changes in various financial components between two time periods for an organisation. It enables decision makes to have knowledge and analysis the organisations use of funds for various activities. The management also uses the results to decide on how much and when to give dividends. As the statement gives a detailed analysis of funds and its utilisation it serves to be an invaluable tool for fund allocation planning and budgeting. Cash Flow Analysis This analysis is on the similar lines to fund flow analysis excepting the fact that it considers only cash and records the inflow/outflow of funds to various components within an organisation. Some countries have a legislation that make this analysis mandatory. For eg, in India all listed companies are required to prepare and make this available for all stakeholders on a periodic basis. Used in conjunction with fund flow this can give a very clear view on the financial aspects, financial principles that are in vogue within an organisation. Comparison between Fund Flow Analysis and Cash Flow Analysis Fund Flow Analysis Cash Flow Analysis Mainly concerns itself with working capital It is mainly concerned with cash and ignores other aspects of workign capital Though it tracks funds it does not specifically record opening and closing positions Records specific closing and opening positions for a time period Records specific sources of funds and where and how it is utilised within an organisation Records only inflows and outflows Does not have a standard format that needs to be incorporated and can show considerable differences between companies or within departments Presentation should be in a standardised format as prescribed by statutory bodies Balanced Score Analysis This was a concept that was put forth by Kaplan and Norton. The balanced score card concept was a new idea where managers were made to focus on both short-term trends and solutions and how they can be aligned to meet the companys long term strategies. The concept depended upon identifying four parameters which can be measured and targets set and points allotted according to performance. It gave an overview of the performance and did not include any other details which was heavily criticised by some researchers. However, it is an important tool that can be used. Balanced score card after its first publication has undergone around three modifications and at present followed widely in English-speaking countries and Scandinavian companies. The designing process involves choosing components that represent the long term goals of an organisation along with a target set against each value. Once the actual performance is noted down, the balanced score card will give an overall picture on how a particular department or a particular manager has performed against his metrics. Posted below is an example of BSC for Financial analysis, as we are mainly concerned about financial aspects, we will concentrate on four important aspects that are the pillar of financial stability for any organisation. Balanced Score Card ABC Mining Corporation 2002 Component Goal Weightage Performance Target Profitablity Ratio ROCE 2 15.56% 20% ROOE 2 23.28% 25% Asset Turnover Ratio 2 0.94 1 Gross Profit Margin 2 26% 30% Net Profit Ratio 2 17.70% 20% Liquidity Ratio Current Ratio 10 2.25 2.8 Management Efficiency Ratio Stock Turnover 10 4.31 4.5 jPhones Ltd 2002 Component Goal Weightage Performance Target Profitablity Ratio ROCE 2 14.66% 20% ROOE 2 18.67% 25% Asset Turnover Ratio 2 2.15 1 Gross Profit Margin 2 35% 30% Net Profit Ratio 2 23.16% 20% Liquidity Ratio Current Ratio 10 2.19 2.8 Management Efficiency Ratio Stock Turnover 10 0.43 4.5 Financial statement of company j Phones Profitability Ratio Return on Capital Employed The formula for calculating the ratio is as follows: Return on Net Asset = Profit before interest and tax x 100% Capital employed (including long term loans) Return on Net Asset = 144375 x 100% = 75.39% Year 2002 191500 Return on Net Asset = 122719 x 100% = 42.46% Year 2001 289000 Return on Capital Employed Return on Capital Employed = Net Profit x 100% Capital employed (including long term loans) Return on Capital Employed = 95575 x 100% = 14.66% Year 2002 651500 Return on Capital Employed = 110719 x 100% = 25.2% Year 2001 439000 Return on Owners Equity Return on Owners Equity = Net Profit before Tax x 100% Owners Equity Return on Owners Equity = 95575 x 100% = 18.67% Year 2002 511794 Return on Owners Equity = 110719 x 100% = 36.94% Year 2001 299719 As the name goes this looks at asset utilisation i.e., how an organisation is utilising its assets to generate income. The formula for calculating the same is as below Asset Turnover = Sales Net Assets Asset Turnover = 412500 = 2.15 Year 2002 191500 Asset Turnover = 350000 = 1.21 Year 2001 289000 The value is not represented in percentage but in a ratio. A rising ratio usually denotes improving performance. Net Profit Margin This is the most utilised margin calculation that gives an overview of a firms financial position. If this ratio is poor investors do not usually go beyond this. Profit Margin = Profit before interest and tax x 100% Sales Profit Margin = 95575 x 100% = 23.17% Year 2002 412500 Profit Margin = 110719 x 100% = 31.63% Year 2001 350269 Gross Profit Margin Gross Profit Margin = Gross Profit x 100% Sales Profit Margin = 144375 x 100% = 35% Year 2002 412500 Profit Margin = 122719 x 100% = 35% Year 2001 350269 Comments: The company has maintained a good profit margin for both the years compared and has shown resilience in maintaining the same. But it would do good to improve the same. Net Profit Ratio Net Profit Ratio = Net profit x 100% Total Sales Net Profit Ratio = 95575 x 100% = 23.16% Year 2002 412500 Net Profit Ratio = 110719 x 100% = 31.57% Year 2001 350625 The company has shown a drop of 8.34% in its NPR. This is an alarming trend to note. Unless the company takes steps to arrest this growth it may result in value erosion for investors. Liquidity Ratio The ratio largely looks at a firms ability to repay its liabilities. The thumb rule is that the higher the ratio the better. Current Ratio Current Ratio = Current Assets Current Liabilities Current Ratio = 895000 = 2.19 Year 2002 408500 Current Ratio = 490000 = 2.12 Year 2001 231000 Comments: A very good and stable current ratio. But since it is consistently above 2, it also means that jPhones is not effectively utilising its assets or financing avenues properly. Acid Test Ratio = Current Ratio Stock (liquid assets) Current Liabilities Management Efficiency Ratio Stock turnover ratio Stock Turnover = Cost of Sales Stock Stock Turnover = 316925 = 0.43 Year 2002 730000 Stock Turnover = 239906 = 0.62 Year 2001 384000 Corporate Ratios Earnings per share: Measures the profit allotted to each share in the common stock category. Earnings per Share = (Net profit after tax + preference dividend + extraordinary items Number of shares in issue Market to book ratio Market to Book Ratio = Market Capitalisation x 100% Book value of equity Dividend Yield Dividend Yield = Dividend Declared x Dividend Rate Market Price of Share Financial Ratio Gearing Ratio Gearing Ratio = Total Assets x 100% Book Value of Assets Common-Size Analysis (CSA) One of the disadvantages of comparing balance sheet results is that the numbers give a quantitative weightage and no further information on efficiency. Common size analysis of balance sheets can be done by comparing two components of similar nature for the companies compared and based on the outcome a better company can be selected. The formula for CSA is as follows Common Size Ratio = Item of interest Reference Item If the formula above is to be modified for inventories then it can be stated as follows Common Size Ratio for Inventory = Inventory Total Assets Limitations: Different accounting principle used by different firms needs to be taken into consideration. The same applies for the difference in accounting calendars. Ratio Analysis Comparison of ABC Mining and jPhones Ltd: After the various ratio analysis undertaken for coming up with an advise to the investor the same is posted below ABC Mining Corporation jPhones Ltd Principle Component Sub Component 2002 2001 2002 2001 Profitablity Ratio Return on Capital Employed 15.56% 15.43% 14.66% 25.20% Return on Owners Equity 23.28% 22.28% 18.67% 25.20% Asset Turnover Ratio 0.94 0.88 2.15 1.21 Gross Profit Margin 26% 26% 35% 35% Net Profit Ratio 17.70% 17.59% 23.16% 31.57% Liquidity Ratio Current Ratio 2.25 2.76 2.19 2.19 Management Efficiency Ratio Stock Turnover 4.31 3.66 0.43 0.62 Source: Balance Sheet and Cash Flow Statement above From the table above it can be seen that jphones has added substantial values to its shareholders by generating higher income though during the later years the same has dropped. Even though the gross profit margin has stayed the same, ROCE has dropped by almost 10% while ABC Mining corporation has scored considerably on this count by maintaining a consistent value. This shows that the management is quite mature during various time scales to concentrate and generate a good return. Another point to note is the ability to generate dividend on a consistent basis. This is better suited to people who would expect continuous cash from time to time. Based on all the above parameters, the customer would do well to invest in jPhones Ltd as the company has generated higher profits and has also given better dividends over the same period. Provided no major changes are experienced in its stock prices it will prove to be a better investment for a year or two initially. Tools of Financial Analysis During the recent economic downturn that has gripped the world; one thought has come to the forefront of corporate financial managers. It has questioned the core value of accounting practise that are practise by auditing firms and various companies. With this backdrop financial managers the world over have their task cut for themselves to prove that they can add value and regulate themselves without any outside intervention. On one hand businesses do have a requirement to take calculated risk and grow their business but blind risk will put organisations future and reputation at risk that needs to be avoided. Organisations sundry and great now are taking steps to ensure that financial data collected, recorded, and analysed are actually reflecting the status of their companies as it is this information that is used to make strategic decisions. The situation has also renewed interest on failure prediction and financial models that proclaim to predict the start of a downturn financially. However, these tools though quite phenomenal in their performance do not give strategic suggestions but results are rather in the form of numbers and this once again underline the value of human mind that can make sense and give purpose to these numbers. The notion of recording financial transactions has been in existence from very old times. From a crude record of marking lines to denote data in olden days, financial information has assumed various forms and has undergone considerable standardisation to the present day. This standardisation has in effect brought a degree of transparency to all people who view this report as the reports to some extent are standardised by various governing bodies. A reason for such standardisation stands justified as the information may be given to two sets of people who are well versed with accounting principles and also by those who are have no idea of financial standards, managers and public. The same information is looked at from a different view by investors, financiers and tax departments. Thus it is quite clear that financial information and analysis serves a host of people intent on knowing about the status of an organisation. As such financial information and details is akin to a doctor feeli ng the pulse of a patient to elicit diagnosis. Analysis financial information is not as simple as it is believed mainly due to the varied group of people accessing the information. The information needs to be in a standardised format such that a varied group comes to the same conclusion after going through the information. A lot of studies have been undertaken to ascertain the effectiveness of financial analysis. Before making a judgement on the effectiveness, let us look at the parameters of analysis of performance. The following broad parameters are used for financial analysis of a company at any point in time. Profitability Ratio Liquidity Ratio Management Efficiency Ratio Corporate Ratio Financial Ratio Employee Ratio In addition to the above parameters, various other criterias are used mainly Balanced Score Card Cash Flow Analysis Fund Flow Analysis Trend Analysis Common Size Analysis. The presence of various tools means that there will always be a debate on how effective each of the component or a group can measure up as a tool to predict future direction. As predicting the future is a means to be better prepared, care needs to be exercised on how to analysis and what to analyse. Conclusion As mentioned earlier the main reason for looking at the ratios from time to time is to check the healthy nature of the organisation and take effective steps to improve the situation. However, great care needs to be emphasised during such analysis, as the outcome of the results only have values and do not suggest any alternatives. In a recent study on checking the effectiveness of ratio analysis in predicting an organisations failure led Johnson to conclude that there is no clear logical link between the results found in a ratio analysis to failure. Nonetheless, as the human mind links numbers to performance, ratio analysis is here to stay. The results need to be taken up with a pinch of salt with comparison of performance against other analytical methods to yield proper views and steps that needs to be taken from an organisational point of view. Another argument is that ratios do not given underlying economic turmoil or alternatives that can be taken by human mind. Thus ratio analysi s with application of sound decision making can go a long way in putting the organisation in the right path to success.

Gang Violence Essay - 1599 Words

Gang Violence Did you know that gang violence affects our world today? In this century we’re experiencing more gang related crimes ever than before. Current research shows that there is an estimate of 250,000 gang members in America (Almonte and Desmond 4). The more gangs the more killings. Adolescents are getting more involved in gangs, because of this dropout rates are increasing. The more dropouts the more drug dealers. Once they begin to sell drugs they end up in jail. This is where we come in as taxpayers. Gang violence affects the public with the crimes they commit. Murders, robbery, and vandalism are some of the main crimes that are committed. These things can be prevented if we pay more attention to our teens. Rehab centers and†¦show more content†¦This is when you have to duck and hide or break out running. The public is put at high risk because of this, because you have innocent bystanders who can be killed or injured badly. Children to the elderly have to be aware of the ir surroundings. Knives are also a weapon that gang members mainly use but knives and guns aren’t the only weapons. . Current research shows that gun violence costs the economy at least $229 billion every year. This is including $8.6 billion in direct expenses for medical and emergency care, the direct costs of hospital use for gun assault injuries by itself was estimated to $8.4 million on 2010. Taxpayers paid 65% of these costs (Follman and Lurie par.1). Vandalism or graffiti is another crime that affects the public. Taxpayers have to deal with this because we have to pay for the graffiti to get off of buildings, cars, or homes. Graffiti encourages more crimes to happen because if one gang doesn’t like what another gang puts out there, then it becomes a gang fight. Graffiti promotes gangs, this shows that this is that particular gangs turf. Once you notice the graffiti you automatically know that a gang has taken over this area. 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Best Methodology for Web Development Essay Sample free essay sample

System are created to work out Problems. One can believe of the systemsapproch as an organized manner of covering with a job. In this dynamic universe. the topic system analysis and design. mainly trades with the package development activities. This station include: * What is System?* What are diffrent Phases of System Development Life Cycle?* What are the constituent of system analysis?* What are the constituent of system planing?What is System?A aggregation of constituents that work together to recognize some aims forms a system. Basically there are three major constituents in every system. viz. input. processing and end product. In a system the different constituents are connected with each other and they are mutualist. For illustration. human organic structure represents a complete natural system. We are besides bound by many national systems such as political system. economic system. educational system and so forth. The aim of the system demands that some end product is produced as a consequence of treating the suited inputs. A well-designed system besides includes an extra component referred to as ‘control’ that provides a feedback to accomplish coveted aims of the system. SYSTEM LIFE CYCLE System life rhythm is an organisational procedure of developing and keeping systems. It helps in set uping a system undertaking program. because it gives overall list of procedures and sub-processes required for developing a system. System development life rhythm means combination of assorted activities. In other words we can state that assorted activities put together are referred as system development life rhythm. In the System Analysis and Design nomenclature. the system development life rhythm besides means package development life rhythm. Following are the different stages of system development life rhythm: * Preliminary Study* Feasibility survey* Detailed system survey* System analysis* System design* Coding* Testing* Execution* Care The different stages of system development life rhythm is shown in this diagram Phases of System Development Life CyclePHASES OF SYSTEM DEVELOPMENT LIFE CYCLELet us now describe the different stages and related activities of system development life rhythm. ( a ) Preliminary System StudyPreliminary system survey is the first phase of system development life rhythm. This is a brief probe of the system under consideration and gives a clear image of what really the physical system is? In pattern. the initial system survey involves the readying of a ‘System Proposal’ which lists the Problem Definition. Aims of the Study. Footings of mention for Study. Constraints. Expected benefits of the new system. etc. in the visible radiation of the user demands. The system proposal is prepared by the System Analyst ( who studiesthe system ) and places it before the user direction. The direction may accept the proposal and the rhythm returns to the following phase. The direction may besid es reject the proposal or bespeak some alterations in the proposal. In drumhead. we would state that system survey stage passes through the undermentioned stairss: * Problem designation and undertaking induction* Background analysis* Inference or findings ( system proposal )( B ) Feasibility Study In instance the system proposal is acceptable to the direction. the following stage is to analyze the feasibleness of the system. The feasibleness survey is fundamentally the trial of the proposed system in the visible radiation of its workability. meeting user’s demands. effectual usage of resources and of class. the cost effectivity. These are categorized as proficient. operational. economic and schedule feasibleness. The chief end of feasibleness survey is non to work out the job but to accomplish the range. In the procedure of feasibleness survey. the cost and benefits are estimated with greater truth to happen the Return on Investment ( ROI ) . This besides defines the resources needed to finish the elaborate probe. The consequence is a feasibleness study submitted to the direction. This may be accepted or accepted with alterations or rejected. The system rhythm returns merely if the direction accepts it. ( degree Celsius ) Detailed System Study The elaborate probe of the system is carried out in conformity with the aims of the proposed system. This involves elaborate survey of assorted operations performed by a system and their relationships within and outside the system. During this procedure. informations are collected on the available files. determination points and minutess handled by the present system. Interviews. on-site observation and questionnaire are the tools used for elaborate system survey. Using the undermentioned stairss it becomes easy to pull the exact boundary of the new system under consideration: * Keeping in position the jobs and new demands * Workout the pros and cons including new countries of the system All the informations and the findings must be documented in the signifier of elaborate informations flow diagrams ( DFDs ) . informations dictionary. logical information constructions and illumination specification. The chief points to be discussed in this phase are: * Specification of what the new system is to carry through based on the user demands. * Functional hierarchy demoing the maps to be performed by the new system and their relationship with each other. * Functional web. which are similar to work hierarchy but they highlight the maps which are common to more than one process. * List of properties of the entities – these are the informations points which need to be held about each entity ( record ) ( vitamin D ) System Analysis Systems analysis is a procedure of roll uping factual informations. understand the procedures involved. placing jobs and urging executable suggestions for bettering the system working. This involves analyzing the concern processes. garnering operational informations. understand the information flow. happening out constrictions and germinating solutions for get the better ofing the failings of the system so as to accomplish the organisational ends. System Analysis besides includes subdividing of complex procedure affecting the full system. designation of informations shop and manual procedures. The major aims of systems analysis are to happen replies for each concern procedure: What is being done. How is it being done. Who is making it. When is he making it. Why is it being done and How can it be improved? It is more of a thought procedure and involves the originative accomplishments of the System Analyst. It attempts to give birth to a new efficient system that satisfies the current demands of the user and has range for future growing within the organisational restraints. The consequence of this procedure is a logical system design. Systems analysis is an iterative procedure that continues until a preferable and acceptable solution emerges. ( vitamin E ) System Design Based on the user demands and the elaborate analysis of the bing system. the new system must be designed. This is the stage of system planing. It is the most important stage in the developments of a system. The logical system design arrived at as a consequence of systems analysis is converted into physical system design. Normally. the design returns in two phases: * Preliminary or General Design: In the preliminary or general design. the characteristics of the new system are specified. The costs of implementing these characteristics and the benefits to be derived are estimated. If the undertaking is still considered to be executable. we move to the elaborate design phase. * Structured or Detailed Design: In the elaborate design phase. computing machine oriented work Begins in earnest. At this phase. the design of the system becomes more structured. Structure design is a bluish print of a computing machine system solution to a given job holding the same constituents and inter-relation ships among the same constituents as the original job. Input. end product. databases. signifiers. codification strategies and processing specifications are drawn up in item. In the design phase. the programming linguistic communication and the hardware and package platform in which the new system will run are besides decided. There are several tools and techniques used for depicting the system design of the system. These tools and techniques are: * Flowchart* Data flow diagram ( DFD )* Data lexicon* Structured English* Decision tabular array* Decision treeEach of the above tools for planing will be discussed in detailed in the following lesson. The system design involves:I. Specifying exactly the needed system end producttwo. Determining the information demand for bring forthing the end product three. Determining the medium and format of files and databases iv. Inventing treating methods and usage of package to bring forth end product v. Determine the methods of informations gaining control and informations input six. Designing Input signifiersseven. Planing Codification Schemeseight. Detailed manual processsnine. Documenting the Design ( degree Fahrenheit ) CryptographyThe system design needs to be implemented to do it a feasible system. This demands the cryptography of design into computing machine apprehensible linguistic communication. i. e. . programming linguistic communication. This is besides called the scheduling stage in which the coder converts the plan specifications into computing machine instructions. which we refer to as plans. It is an of import phase where the defined processs are transformed into control specifications by the aid of a computing machine linguistic communication. The plans coordinate the information motions and command the full procedure in a system. It is by and large felt that the plans must be modular in nature. This helps in fast development. care and future alterations. if required. ( g ) Testing Before really implementing the new system into operation. a trial tally of the system is done for taking the bugs. if any. It is an of import stage of a successful system. After codifying the whole plans of the system. a trial program should be developed and run on a given set of trial informations. The end product of the trial tally should fit the expected consequences. Sometimes. system proving is considered a portion of execution procedure. Using the trial information following trial tally are carried out: * Program trial: When the plans have been coded. compiled and brought to working conditions. they must be separately tested with the prepared trial informations. Any unwanted occurrence must be noted and debugged ( error corrections ) * System Test: After transporting out the plan trial for each of the plans of the system and mistakes removed. so system trial is done. At this phase the trial is done on existent informations. The complete system is executed on the existent information. At each phase of the executing. the consequences or end product of the system is analysed. During the consequence analysis. it may be found that the end products are non fiting the expected end product of the system. In such instance. the mistakes in the peculiar plans are identified and are fixed and further tested for the expected end product. When it is ensured that the system is running error-free. the users are called with their ain existent informations so that the system could be shown running as per their demands. ( H ) Execution After holding the user credence of the new system developed. the execution stage begins. Execution is the phase of a undertaking during which theory is turned into pattern. The major stairss involved in this stage are: * Acquisition and Installation of Hardware and Software * Conversion* User Training* DocumentationThe hardware and the relevant package required for running the system must be made to the full operational before execution. The transition is besides one of the most critical and expensive activities in the system development life rhythm. The information from the old system needs to be converted to run in the new format of the new system. The database needs to be setup with security and recovery processs to the full defined. During this stage. all the plans of the system are loaded onto the user’s computing machine. After lading the system. preparation of the user starts. Main subjects of such type of preparation are: * How to put to death the bundle* How to come in the information* How to treat the informations ( treating inside informations )* How to take out the studies After the users are trained about the computerized system. working has to switch from manual to computerise working. The procedure is called ‘Changeover’ . The undermentioned schemes are followed for conversion of the system. ( I ) Direct Conversion: This is the complete replacing of the old system by the new system. It is a hazardous attack and requires comprehensive system proving and preparation. ( two ) Parallel tally: In analogue run both the systems. i. e. . computerized and manual. are executed at the same time for certain defined period. The same information is processed by both the systems. This scheme is less hazardous but more expensive because of the followers: * Manual consequences can be compared with the consequences of the computerized system. * The operational work is doubled. * Failure of the computerized system at the early phase does non impact the working of the organisation. because the manual system continues to work. as it used to make. ( three ) Pilot tally: In this type of tally. the new system is run with the informations from one or more of the old periods for the whole or portion of the system. The consequences are compared with the old system consequences. It is less expensive and hazardous than parallel tally attack. This scheme builds the assurance and the mistakes are traced easy without impacting the operations. The certification of the system is besides one of the most of import activity in the system development life rhythm. This ensures the continuity of the system. There are by and large two types of certification prepared for any system. These are: * User or Operator Documentation * System DocumentationThe user certification is a complete description of the system from the users point of position detailing how to utilize or run the system. It besides includes the major mistake messages likely to be encountered by the users. The system certification contains the inside informations of system design. plans. their cryptography. system flow. informations dictionary. procedure description. etc. This helps to understand the system and license alterations to be made in the bing system to fulfill new user demands. ( I ) Care Care is necessary to extinguish mistakes in the system during its working life and to tune the system to any fluctuations in its working environments. It has been seen that there are ever some mistakes found in the systems that must be noted and corrected. It besides means the reappraisal of the system from clip to clip. The reappraisal of the system is done for: * cognizing the full capablenesss of the system * cognizing the needed alterations or the extra demands * analyzing the public presentation.If a major alteration to a system is needed. a new undertaking may hold to be set up to transport out the alteration. The new undertaking will so continue through all the above life rhythm stages.

The Case Analysis for Clean Edge Razo free essay sample

We will discuss from two aspects, one is the U. S. razor market and another is from the product itself. The paper through a series of economic analysis, including the background the razor market, razor market segments, consumer behavior, competition between producers, the feature of Clean Edge Razor and so forth, to got a positioning recommendation, brand name and budget recommendation to help product manager of company, Randall, find the right answer. The body paper will round some special questions to analyze what is the right way for put the Clean Edge Razor in the market. Some economic research and individual opinion will comprise the whole analysis. Eventually, we will got a conclusion and do some special recommendations. Question 1: a. What changes are occurring in the nondisposable razor category? There are two major changes are occurring in the nondisposable razor category. Firstly, the nondisposable razors experienced more growth, approximately 5% form 2007 to 2010, and most of the growth due to the innovations and new product introductions. We will write a custom essay sample on The Case Analysis for Clean Edge Razo or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The customer is more want to trying new products than before. Secondly, industry experts divided the nondisposable razor market into three segments based on price and quality, super-Premium, moderate, and value. The first change of nondisposable razor category was in the segment of super-Premium. According the case paper, the volume and dollar of Super-Premium in 2009 nondisposable razors and refill cartridge retail sales were 25%, and 34% respectively. And in the last decade, there was experienced significant growth in the super-premium segment. Many innovations appeared in the super-premium segment to make this part a huge growth. . Assess Paramount’s competitive position. What are the strategic life cycle challenges for Paramount’s current products as well as for Clean Edge? The challenge of strategic life cycle is the replacement cycle had been shortened. According the case paper, consumers purchased razors and replacement cycle more frequently in 2009 than previous years. It is mean that customer want to try the different pro ducts, and their demand is change to more flexible. Moreover, advertising and sponsored articles that introduced some razor let customer change their demand more easily. That is a huge challenges for Paramount’s current products as well as for Clean Edge that they must continuous provide different kinds of products and let customer to use their products in a relative long life cycle. It is also mean the Paramount’s must use lots of money, technology, and work to design much kinds and much quality products. Question 2. How is the nondisposable razor market segmented? Examine consumer behavior for nondisposable razors. The nondisposable razor market was divided three segments based on price and quality: super-premium, moderate, value. According the case paper, the volume and dollar of Super-Premium, moderate, value in 2009 nondisposable razors and refill cartridge retail sales were 25%, 34%; 43%, 44%; 32%, 22% respectively. The super-premium segment has significant growth in recent 10 years due to the innovation and new products. The moderate still has a main position in amount of both volume and dollar. There are also three segments of nondisposable razor of consumer behavior: 39% Involved Razor Users (Social/Emotional Shavers), 28% Involved Razor Users (Aesthetic Shavers), 33% Uninvolved Razor Users (Maintenance Shavers). The kinds of Social/emotional shavers are the customer who will consider the different products of razor. They like shaking everyday, because to do this can make them more confidence. Aesthetic Shavers are the customers to consider which razor are the more effectively remove hair. And the last one Uninvolved razor uses, maintenance shavers, they think the entire razor are the same, and they have no interest to consider which razor is more better. Question 3. a. What are the arguments for launching Clean Edge as (a) a niche product and (b) a mainstream brand? The supporters that supporting the Clean Edge as a mainstream brand think that nowadays, the customer need a more sophisticated and expect more advanced technology products. The Pro does not provide this but Clean Edge can. More and more people want to get an advanced product and abandon normal one. And Pro is in the mature phase of the product lifecycle and it has no excess extra space to develop. They think now it is best time to lunch the Clean Edge in dominant position in the razor market. On the other hand, the objector think it should be make Clean Edge as a niche product. Rosenberg said that he couldn’t believe they are even considering a mainstream positioning strategy. He thinks Clean Edge will siphon off consumers from Pro. Moreover, making Clean Edge as a mainstream brand will dilute the brand power for their bread-and-butter product, Pro. The company will just be cannibalizing itself. The niche strategy makes more sense. According the pro and con, I conclude that the main arguments are how to rational allocate the share for different type products, which one will become the main products of company, and how combine the different product will get maximize profit for company. b. Which would you recommend? What are the strategic implications of your recommendation? We recommend that make Clean Edge as a mainstream brand. We think that the most important thing of company is profit. Selling products can get profit. So how much selling products decide how to profit company can get. And what does decide how much products can be sold, the share of market. So, if you have very great products, let it to dominate marker. For example, Apple Company is the fastest push the newest products, and makes it become the mainstream product to dominate market share. But Nokia just makes their advanced products as a niche product that fail to dominate market. So, Now the Apple is more success than Nokia. Question 4. Based on your positioning strategy, what brand name and marketing budget allocations would you advise? According our positioning strategy that makes Clean Edge as a mainstream brand, we advise the brand name would be â€Å"Clean Edge by Paramount†. The reason to make the Clean Edge name is that it can make the brand stand out and differentiate other product form Paramount. As its great quality and all new style to dominate market share. The company must improve the maximize budget allocations for Clean Edge to dominate market share. Conclusion