Leading Change Essay Example | Topics and Well Written Essays - 500 words

Leading Change - Essay Example The organizations culture was a fouled up one whereby the plants of the firm competed against each another. Eitel felt that there was need to overhaul the organization’s culture. The only way to do this was by setting up change in all the people throughout the organization by spending 10 Million on a very new philosophy called â€Å"Great Game of Life†. The main target of the philosophy was to come up with an environment whereby employees felt that they were indeed making a difference, having fun and in an environment where they were free in making decisions. The philosophy’s use was to train, develop and experiential experience through inclusion of a ropes course, training in classrooms in order to reinvent the company and build it to a better company. He believed that there was magic when people working together share their ideas, truths and beliefs concerning issues in the company. The main target of Eitel was to help employees learn how to think in new better ways, take crge and have fun while executing their duties. His philosophy focused on changing the behavior of employees and working environment to an environment that led to job satisfaction. Free sharing of ideas targeted building up an innovative and creative organization resulting from effective communication in the company. The premise of â€Å"Great Game of Life† was that for every profitable business to grow; customers’ satisfaction with the firm’s products is high, the employees are cooperative, innovative, creative, satisfied with their work and committed to the tasks assigned to them. In addition, the culture of the business and the leadership system empowers and motivates the workforce. By applying all the above mentioned requirements of a successful business, the firm started growing dramatically and its market share increased increasing the sales of the company making the company very profitable. The leadership system of the firm changed and the

Incorporating the Cost of Capital Research Proposal

Incorporating the Cost of Capital - Research Proposal Example On the other hand, A negative net present value is a bad management decision. Thus, management must not push through with the planned investment. The Net present value is arrived at by the following: The managers will invest in a capital asset only if the net cash inflows are more than cost of capital. The difference between the two is the net cash inflow. The entire articles gives evidences that this very popular formula is more than just a formula. The entire journal is devoted to giving importance to the factors of sales, variable expenses and costs, as well as fixed expenses an costs. Clearly, the objective of the paper is persuade managers of the importance of cost of capital in decision making activities. The objectives are correctly stated. The objective truly draws the reader to the reasons of managers in using the various components in the cost volume profit analysis. For, the article clearly explains how the sales, variable expenses and costs as well as fixed expenses contributed to the increase and decrease of net income. The article clearly shows that cost of capital is a very important tool in determining if it would be economically profitable to infuse more money into a high monetary value assets (Schneider,1). Obviously, the objectives are correctly stated. One of the key issues considered in the article shows that cost of capital is arrived at by by including the interest expense spend fo... the net present value in determining if it is profitable to invest large sums of money in a new equipment or other similar large funded investments. The articles states that Cost Volume Profit Analysis incorporates the cost of capital. Evidently, one of the key issues considered in the article shows that cost of capital is arrived at by by including the interest expense spend for borrowing money. Further, this same article also explains that there is a strong relationship between cost of capital and factors like net revenues, variable expenses and fixed expenses. In addition, the articles tells that managers would make better decisions if the cost of capital is included in the cost volume profit analysis. The article also tells that the manager's process improvement decisions must also include financial data under product mix and pricing. This formula is the mathematical representation of the economics of producing a product. The article shows that the investment is not good if the cost of capital is more than the net cash inflow from operating the investment. On the other hand, an investment in high value items is an excellent management decision if the net cash inflow exceeds the cost of the capital. The article also discusses that increases in variable costs will decrease profits. On the other hand, increases in net revenues increases profits. Further mathematical computat ions show that net profit is the difference between the net revenues and total expenses and costs. Truly, this same article also explains that there is a strong relationship between cost of capital and factors like net revenues, variable expenses and fixed