Cyclermate Report Essay Example for Free

Cyclermate Report Essay I. An executive summary Dai Armstrong and Lewis Llewellyn are the two men who planned to open their own company after being superfluous due to the shutting down of the steel plants in their town of South Wales were Dai Armstrong and Lewis Llewellyn. They became good friends because of taking part in the local club of cycle touring together and decided to start Cyclermate, which was a bicycle manufacturing company that was laid down in the year 1988. In the beginning of time, Cyclermate gained a huge influence over the share of the market. The company appeared well with no problems and difficulties up to 2010, the time when the business is in trouble, it confronted lots of consequences with respect to operation human resource and finance. Therefore, the demand by purchasers fell continue sadly even though the prices were cut down by the company; the distinguishing attributes of the goods were not up to the quality as they were earlier. The rising complaints from the customers regarding degrading quality and faults in the product and the concern by the bank manager regarding the overdraft could cause trouble if the problems are not solved as soon as possible. Because of that, the company requires a right way to deal with this issue and save it from the edge of going bankrupt. II. Introduction Based on case study research in Cyclermate Ltd. and a series of case in community, this report will work out the financial problems and various other problems confronted by Cyclermate. It has been designed to analysis the business environment and management, measured by SWOT and PET models that are required to be looked upon. The report also draws on a brief summary for the financial side of the business. In addition, this report takes into account an examination of difficulties confronted by Cyclermate and possible solution for the problems, included short and long term solutions. Another function of this report is to examine how the company could get out of the crisis and get back to the current market share. Finally, the report brings us some recommendations and conclusion of the whole Cyclermate case study. III. Analysis of Business Environment 1. PEST Analysis PEST analysis is involved in the chief external environmental that effect or control considerably a business strategy. As we can see, PEST is aimed for Political, Economic, Social and Technological matters that can affect the business. PEST is recognized to persuade it in a utile manner of summarizing the external environment. However, it may be adopted the ability of how an establishment should react to these factors. Political Factor A political factor has a powerful impact on income tax, labor law, trade restriction and many more. Company did not recruit enough workers to meet the targets and worker had to work overtime to get the work done and workers are getting paid at normal rate. Using a traditional method may harm workers health and decreased their productivity as well. These mistakes made Cyclermate become a target of health and safety agencies. They have to improve the quality or else they can be stuck in authorized issues. On the  other hand, they also need to achieve higher standard in manufacturing to meet requirements of the market, especially foreign markets. Economic Factor Cyclermate had purchased a larger storehouse for goods, which indeed was essential to them but did not suffice their requirements. Purchasing a warehouse, which fulfilled the needs of the company, could have saved a lot of money and that same money could have used in new or currently in existence projects. Another factor in economics that affects to the development of Cyclermate Ltd is labor. The unemployment rate is increasing, therefore, this is a good chance for this company to choose worker more easily, and employ them easily with affordable price. Social Factor Social factor has a powerful impact on human behavior, Cyclermate had many order but they did not have enough workforce to complete these orders. They have to work long hours in order to achieve their goals. One more important thing is that high-speed innovation as well as the increasing demands of consumers requires Cyclermate to change and improve every day. But there is a truly infact that living standard of clients could effect to their choices. The higher income distribution they get, the higher demands they re Technological Factor Cyclermate Ltd is using the oldest way to advertise their products by posting advertisement in traditional newspapers. It has limited their goods to the customers. Instead, this company can set up its own website. In addition, Cyclermate Ltd is using the oldest way to advertise their products by posting advertisement in traditional newspapers. It has limited their goods to the customers. Instead, this company can set up its own website. 2. SWOT Analysis It is a methodical technique that is utilized to categorize and identify substantial external (Opportunities and Threats) and internal (Strengths and Weaknesses) factors confronted with a specific area. (Johnson, 1993) It  renders data which are useful in corresponding the capabilities and resources to the spiritual atmosphere in which it functions and hence is a significant addition to the planning and marketing procedure. (Pearce, 2005) Let have look at the SWOT of cyclermate to understand more about the current issue that company has to face with. Strengths Direct channels of sale Cyclermate has direct channels of sales with the direct sales and direct shops; hence intermediary’s cost is largely eliminated. Reducing the cost of manufacturing could unquestionably help Cyclermate achieve a huge share of the market. As direct channels are in direct contact with the providers, thus, it could help in increasing in quantity or value of the sales and it provides a good opportunity to the providers to empathize the clients and could make required changes are per the requirement of the customers. Motivated workforce The employees at the Cyclermate are extremely pioneering and are can fully utilize and achieve any given objective or alterations in the company but they are inhibited by the administration as a result they are unable to express their views freely. The employees could have a crucial role in the company for its overall growth and development. Possession of buildings and lands Unlike Cyclermate most of the companies don’t possess either building or land and hence have to pay the heavy rents which adds to the cost but cyclermate can make any changes in the buildings and could capitalize in whichever way they wish to as they own it, which reduces the overall cost. Weaknesses Inexperience and unmotivated staffs of the company The company has made use of untrained workers. These untrained workers are not given the proper training after their employment. It is the fact that the employees and the staff are never allowed to put forward their creative and self-ideas due to the policies of the management, as a result of this  motivation in the staff is lost. Sales are decreasing in amount or degree and there is piling up of stocks in the warehouses which generates a feeling among the staff that they are not under a good management and as this feeling flourishes they lose hopes from the company and it has a very bad impact on their morale. The investors do not truly interested in the business Due to the low returns on the capital invested by the investors, they are unhappy with the performance of the company and are losing faith in it. In addition, the very fact that the shareholders were not paid any interest last year, it may result in the withdrawal of their money from the company. The quality concerns Because lack of the power to be effective of the staffs to keep up the measures of the goods and the quality of raw material utilized is leading to degraded quality of the goods eventually. Old machinery such as traditional spaying technique, painting and low-quality stock control technology needs updating as soon as possible if the business hopes to improve the production and sales in the coming time. Opportunities Take the advantages of social media Cyclermate should launch its website, which provides complete detail and range of the products available with them. Company can employ a new computer system for keeping a good database of the company. They can introduce online selling and modification according to the wish of customers. Introduction of new machines They should introduce some of the modern machinery in order to achieve higher-level productivity. Cyclermate could bring in new robotic machinery in the production process that will lead to speedy output and a superior quality of goods. Employ trained workers They have the opportunity to make use of the trained workforce, which has been recently laid off from the nearby production site. More workforce means opportunity to gain more productivity. Threats Overseas competitors As a result of the growth to a global or worldwide scale, many companies from across the globe have entered the market with products of low price and high quality, which certainly is a threat for Cyclermate as it supplies good with high cost and of lower quality. Due to recession, which is prevailing in Europe the purchasing power of people is going down. Thus, company can have reduced sales or can face financial crises. Reputation Due to poor-quality product for a period of Cyclermate’s reputation is going down and therefore people do not like to go for their products. Huge retail Merchants Retail Merchants like Argos and Halfords are captivating the market eventually and it might happen that Cyclermate may lose the market share completely. Customer threatens them to sue their company after their product was fail in delivering the good performance. IV. Analysis of Business Management 1. Financial Problems Prob. 1.1: Uncontrolled cost The main problem that company is in this situation is because of the uncontrolled cost and mismanaged budget. The costs are increasing yearly with the sales and selling price of the products going down. Let have look at the financial statement that company has  £210,800 worth of non-current assets. Loan request will be refused as company only holds cash fund of  £675 into their bank account. Costs are increasing at a rapid rate year after year. Asset turnover ratio is 2.06:1. This indicates that the profit margins for the company are very low that’s why the ratio is so high. We can also conclude from this that the company’s pricing strategy is not effective leading to lower profits. Prob. 1.2: Dealing with a big loan Creditor days – 24 days leads to the company has to pay back it its debtors in 24 days and it is just left with 675 £ of cash. The Company is liable to pay  £87,500 to the creditors and if they don’t so a legal action may be taken on them, which are not good for company’s reputation. They may talk to the creditors and ask for an extension in time for payments as they are going through financial crisis and don’t have money right now to pay back. Prob. 1.3: Lots of inventories Besides, it shows that the majority of inventories are stored and not effectively managed, that is why current ratio is at such high level, which also means low sales and low revenue gained. Moreover, the company relies on the bank loan as the main monetary support. 2. Operation Problems Prob. 2.1: Stock control system Disturbingly, materials are always in the shortage which results in the disruption of the production process recently. Although the demand is higher and higher, company cannot meet their requirement because of lacking necessary components. Prob. 2.2: Inappropriate division of duties The inappropriate division of duties obviously had made such a burden on many workers. In particular, Dai Armstrong has to deal with many tasks such as making all the frames, factory manager and business director at the same time. He himself also finds it hard to keep up the level of production (approximately 8 frames/day) because it requires the harsh physical demands. Prob. 2.3: Assembly is a complex process Moreover, assembly is a complex process, which takes 2 or 3 hours for one person. Janice Jones and Ffred Gregory often have to work overtime to catch up with the progress. As a result, their health and time issue could be heavily damaged. 3. HR Management problems Prob. 3.1: Improper workforce in manufacturing Unreasonable workforce division is one of the most serious problems of Cyclermate Ltd. Besides, lack of experienced employees and the aging workforce are worrying the production process and raising a big question for a more effective training system. Prob. 3.2: The training system creates The training system creates such obstacles for the assembly process. Typically, Fred, who is 18 years old, is a new and un-experienced person; the training for him is necessary, however, not easy at all. It takes so much time to instruct Fred in traditional way, which is apparently the cause of slow production recently. Prob. 3.3: Corporate culture The staff is highly de-motivated due to decreasing sales and profits and also the behavior of the management as in the sinking company they are not free to put up their ideas even if they do they are rejected because of the superiority of the management. V. Solution A. Short term and immediate planning 1. Financial problems: Solution 1.1: Cost in selling and distribution Cost in selling and distribution could be possible declined to save more money for the company such as cutting cost for postage and courier charges by substituting by cheaper service, as well as the travelling and hospitality. Those indirect costs contribute such high cost to the manufacturing of the cycles, restricting them would help boost the sales with cheaper price. Solution 1.2: Ask for trading debtors to repay The solution to this issue is that they should strictly resolve and for the  trade debtors to repay the loans as soon as possible. The amount of $200,571 would help the financial situation better in the coming time. Once their assets are raised through and their liquidity are proved to be valuable enough to afford the loan, it will be beneficial for them to borrow money from the banks. Solution 1.3: Direct sale prices Cyclermate’s direct sale prices are higher than shop sale price. In order to generate healthy revenue, Cyclermate needs to reduce their direct sale price. By reducing the direct sale prices will increase their sale and it will be easy for them to generate healthy revenue. 2. Operation Problems Solution 2.1: Buy stock when needed Company should only buy stock when they needed. Buying stock earlier will harm company’s financial positions, because raw material does not hold their value and it has got more chances of losing its market value. Solution 2.2: Require clear division A good answer for this problem is that the company should require clear division to who is able to undertake and separate arrangement of duties. Specifically, assigning other qualified person on frame-making position so that Mr. Dai could concentrate and dedicate himself to external relations business only. Solution 2.3: hiring more experienced labors The company should consider hiring more experienced labors for assemble line and frame-making because Mr Dai can no longer put up with the physical requirement of the task. With those simple tasks like packaging, it is acceptable for free hand employees to help out, but only when they finished all their tasks. 3. HR Management problems Solution 3.1: Employ cheaper labors In this case, the company can consider employ cheaper labors that are  suggested by Maldwyn Jones: Chinese or Taiwanese labor to make the machine for them- much better quality but half the price and move Idris Pugh to higher position as a supervisor for the whole wheel-making process. Solution 3.2: Improving the staff’s skills This training program involves directly in the new changes with a purpose of improving the staff’s skills, expertise and methods to complete an error-free task, exposing them to unfamiliar ideas and of course, giving them the chance to practice task under time/speed limit. Solution 3.3: Core business value Trust in others and a firm belief in overcoming difficulties (set up new mission: overcome difficulty, minimize waste and consequence) B. Long term and efficiency improvements Present fiscal condition of Cyclermate (Accounting ratios).The acid / liquid ratio of Cyclermate is 0.76:1, which depicts Cyclermate is incapable to satisfy indebtednesses of shorter term, which mean that it would not be competent to satisfy fiscal difficulty which may happen in the time to come. The Asset turnover ratio for Cyclermate is 2.06:1. As the ratio is excessively high, this means that profit margins are very low. The pricing strategy of Cyclermate is ineffective and because of that low profit. Return on capital employed –Cyclermate has far too less returns on the capital employed, just a mere 0.11 or 11%. Debtor days –It would take Cyclermate 115 days to get back the money from debtors. Creditor days – Cyclermate has to pay back in 24 days to its debtors with a cash balance of 675 £. The financial statement of Cyclermate shows that it has non-current assets which is of worth  £210,800.Any request regarding a loan from the bank will be refused as it has a mere cash balance of  £675. It may get a loan based on the position of its non-current assets. In place of the above-discussed alternative, it can sell its freehold land, which is worth  £160,000, and use the proceeds from the sale in the business. Cyclermate could acquire funds if they pursue its trade debtors to pay off soon. Debtors worth  £200,571 are to be recovered and the funds would be acquired soon if the debtors do not  default and pay in full. Once it has sufficient fund, Cyclermate could apply for the bank loan. VI. Conclusion Overall, Cyclermate will have a better future if they operate their business in slightly different ways. Cyclermate products were famous for its quality and price,if the company still provide what the consumer wants than it would be no harm to the company. But there few changes needs to be changed and once the new rules and regulation apply into the business than it would be a great opportunity for Cyclermate to operate their services. Moreover, With the movement of new threats into the marketplace the present systematic plan of action of Cyclermate is continuously below the acceptable level in its performance due to the fact that the new firms and the existing organizations are coming up with improved quality of products at a cheaper price VII. Recommendations The company must sign up correct individual as per the requirement of the position. Currently the management is interfering in the process of production and is unable to focus of the activities they should be concerned. The financial hardships through which Cyclermate is going through at present could be resolved by selling the unused stock that is piled up in the warehouse. In order to generate revenues and funds to invest in other arena of the company, Cyclermate must sell its freehold land that would certainly generate high revenue. In order to achieve higher output and productivity, modern technology should be applied in the production process. Installing a computer database through which the management could look into all the important and relevant data as and when required. Cyclermate should launch its website, which provides complete detail and range of the products available with them. Reducing both direct sales prices so as to sell the current stock and trade debtors. Employing young and trained workforce that is fit for the position.

Andy Warhol Essay -- essays research papers

The attitude of Warhol only confused society more. Instead of hiding his association with commercial art as other artists did, drawing and dividing the line between it and real art, he erased the line. â€Å"The Pop artists did images that anybody walking down Broadway could recognize in a split second.†(Warhol) Pop artist figures competed in that art market where images and auras, no just objects, are offered for consumption. Warhol has never objected to this state of affairs, which he did so much to reveal – and indeed, to push to new extremes of sophistication. Warhol introduced society to a new kind of art that is now being recognized as real art, he pushed to boundaries and so called standards to the traditional ways. Warhol’s first major display of pushing the boundaries was in 1948 at an art show given by the Pittsburgh Associated Artists his painting that he submitted was titled The Broad Gave Me My Face but I Can Pick My Own Nose, one judge thought it was excellent and another thought it was vulgar and coarse. It hung in the ‘reject’ section but drew a huge crowd of admiring students. From that he felt that he was ready to take on the art scene in New York. Warhol’s approach to the modern way of art was mass production of everyday items. He was very successful as a commercial artist but was not considered a ‘real’ artist. Andy wanted his art to look impersonal and mechanical. He discovered the use of silkscreen and how it produced slight mistakes and unevenness in his re...

Internet Addiction: Ushering in a Generation of the Socially Inept

How long does a year take when it's going away? This was a question asked by Dunbar to a very highly disciplined soldier right before explaining, rising in almost furious passion, how fast life goes and that the only way that can slow it down is the slow, tedious, and overall unpleasant aspects of life. Granted this conversation took place in a work of fiction; however, how Dunbar insisted that he spend most of his time on base shooting skeet simply because it made his life seem to pass slower does draw parallels to how we distract ourselves today. Unlike in the 50's when Mr. Heller first introduced us to his pleasantly insane world that was Catch-22, today we have the amazing expanse of information and entertainment known as the Internet as well as the multitude of mediums for accessing it: computers, tablets, cellphones, televisions, even the very confines of our car can read Facebook updates. But with this quickly growing rise in demand for technology, status updates, and quick amusement, there is also a growth in research on a literal addiction to the Internet and technology. Many in the social sciences worry that we may be looking at a dependence on the superficial global connection, one that I fear may leave us with an incapable generation of social media dependents. Internet addiction is seen as an impulse-control disorder, much like other addictions such as to gambling or sexual activity, where users are unable to resist urges or impulses to access the Internet. In a recent study done by Dr. Kimberly Young of the University of Pittsburgh at Bradford, it was found that out of the nearly four hundred surveyed that were categorized as Internet dependent a resounding number had experienced academic, relationship, financial, or occupational problems that could be directly linked to excessive Internet use (Table 1).    One of the most alarming of these were those whose real relationships were affected with plenty sad and at times disturbing anecdotes of people becoming too absorbed in the lures of the online community; for example, one mother had forgot about some of the more basic needs of her own children such as picking them up from school or making them dinner (Young 1-5). The academic arena is one that has been most recently seen affected. When surveyed at the Cranfield School of Management in the United Kingdom, about 39% of students 11 to 18 years old said that texting had taken its toll on their ability to proper write English. Probably more concerning was the 59.2% that openly admitted to plagiarism, â€Å"inserting information straight from the Internet into schoolwork, without actually reading or changing it, and then, shockingly, a third of those said that they considered that acceptable schoolwork (Goodwin). Then you have Californian psychologist Larry D. Rosen who referred to the â€Å"Google effect,† what he described as â€Å"an inability to remember facts brought on by the realization [sic] they are all available via Google (â€Å"Rise † 8). What we see here can be construed as just laziness on part of this generation, a stereotype that I would agree with if not for the overwhelming evidence that suggests that this issue runs so much deeper, namely how we interact with each other when we are offline. The detrimental effects that dependence on the Internet has on people is further outlined in the report â€Å"Technology Overload: Explaining, Diagnosing, And Dealing With Techno-Addiction† by Nada Kakabadse, a professor of management and business research at University of Northampton in the United Kingdom. His commentary was hardly optimistic: â€Å"Being hooked into ICT [information and communication technology] devices and ignoring ‘offline' social interaction can lead to chronic insomnia, relationship break-up, job-loss, premature burn-out and accidents as a result of inattentiveness to daily detail.The harm to both the individual and society is immense. Idolatry of ICT gadgets such as the PDA, BlackBerry, mobile phone, has serious consequences, especially when ‘online' behavior begins to interfere with an ‘offline' life. † (Claburn) Vesile Oktan revealed in another report on the effects that Internet dependence had on students at the Karadeniz Technical University in Turkey on their ability to cope and control emotions. While his findings did indicate that Internet addiction was a reliable predictor in poor emotions management, he also point out previous studies that supported this such as young people with virtual gaming addictions had low self-control and discipline. He went on to discuss how this addiction could be a behavioral pattern that compensated, however inadequately, for failures in life (Oktan 3-5). A very similar examination from Greece only showed consistency; when comparing a younger demographic (ages 12-18) to their respective parents over the course of two years, it was found that without preventative initiative Internet addiction grew in the children. The biggest predictor variable for this addiction was parental bonding rather than actual security as many parents underestimated their children's involvement (Siomos). These two reports show a consistent connection between how people interact outside the digital world and how they both are affected and effect how one develops uncontrollable cravings. What the spectacular resources the Internet has to offer surely can't be refuted as invaluable. The ability to quickly and effectively communicate with each other over vast distances and almost instantaneously is a recent luxury that we at times take for granted. The use of the Internet and its many outlets does make for a good distraction in much of the same way Dunbar made use of the shooting range in Catch-22 even though he detested actually doing target practice. Unfortunately, in this situation, what we can take for granted also has its capacity to consume and entrap us with its ease of access and being easily relatible unlike standard social situations when offline where one has to make compromises (Young 5). Many experts would rather not classify this issue as an actual addiction, citing that it is more of a means to an end such as how gambling addicts will switch to the Internet poker rooms when they can no longer get their fix from actual casinos or vice versa (Ritchie). I firmly believe that this is a real problem in society that will eventually prevent many people from achieving success as this continues to monopolize their time, effort, and mental processes. I would almost go as far to say that I have my own difficulties with this; case and point: I would readily say that this essay would have been completed in a timely manner if it had not been of the constant distraction from reality that the Internet provides. I will conclude with an anecdote that very clearly displays where many undiagnosed individuals are going if this issue is not given proper attention. I challenge you to read this and reflect on other well researched and described addictions such as with alcohol, gambling, and sexual activity. Then I pose to you a question: if we are dealing with a very similar problem with a medium that is as vast as it is accessible, long could a life take when it's going away? â€Å"When Johnny's grandmother died unexpectedly, the family was devastated. Fifteen-year-old Johnny seemed to be coping well, but would continue to spend at least six hours a day playing online role-play game [sic] World of Warcraft; sometimes up to 10 hours at the weekend. It was not until months later, after he had cut down on his gaming, that the impact of the death really hit home. Johnny went to visit his grandfather and was horrified to relearn that his grandmother had gone and would not be coming back. â€Å"He did acknowledge it, but was so immersed in World of Warcraft at the time that when he got off the game, he was shocked and very upset that she wasn't there, says Dr. Richard Graham, a consultant child and adolescent psychiatrist who subsequently treated Johnny for his gaming addiction. â€Å"The time Johnny spent gaming had steadily increased over the years until he was spending every available hour on his Xbox. He completely lost all interest in school and his grades inevitably suffered. It was only after a couple of months of treatment that Johnny started to re-engage with the people around him. ‘That emotional impact had been frozen in time,' says Dr Graham. ‘Even when there was a death in the family, something as crucial as mourning didn't take place.'† (Ritchie)

Descriptive Essay - Original Writing - 943 Words

Calliope sat straight up in a cold sweat her shoulder length hair cling to her head, she panted eyes wide in panic. Her hands clasped over her mouth stifling a scream. Calming down from her momentary hysteria and with a deep breath she examine her surrounding pristine blue above her, deep green grass a long with some wild flowers swayed around her. Standing up on wobbly legs she tried to remember where she was but, her mind drawing a blank on anything beyond her name. Walking down a small slope she saw clear body of water. â€Å"That me!† She shouted at her refection; in the water was a slender girl looking somewhere between thirteen and fourteen dressed in an embarrassingly frilly white gown stared back. Calliope prodded herself careful the†¦show more content†¦Ã¢â‚¬Å"I’m Katsi.† She gave a small smile holding out her hand. â€Å"Calliope.† She took Katsi’s hand, fallowing her instinct her memory still beyond her reach. â€Å"Aww such cute name, your definitely M.C.M.† Katsi looked at her with a sisterly shake. â€Å"Umm M.C.M.† Calliope asked worried. â€Å"Main character material.† Katsi laughed, pulling Calliope along to a polished stone path. â€Å"So I’m guessing you’re here by luck.† She asked talking as if Calliope was her best friend. â€Å"Luck?† Calliope asked confused, but was to nervous explain that in here mind she just started existing. â€Å"Yup your luck.† The red head giggled as she was pulled Calliope through golden gates that had something engraved in it that she couldn’t read. What do you mean? Katsi stop hearing Calliope’s panicked voice. The grip on Calliope’s hand changed she look up, Katsi’s gaze changed to something more protective. The taller girl pulled her along The three Ls that separate the schools more than the schools themselves. Her voice was a whisper snapping her fingers to get Calliope’s attention â€Å"Legacy. She pointed to a small group of giggling girls in pastel grown, Calliope stared at the group thinking how artificial they look in contrast Katsi â€Å"Labor, which is what I am. She turn to Calliope and patted the shoulder And luck. Calliope smiled up at her new found friend, her eyes growing wide at the end of the straight path. It building dwarfing trees and as white as an egg toweredShow MoreRelatedDescriptive Essay - Original Writing1110 Words   |  5 PagesI don’t know how I got to where I am, but I’m here now, and I have to win if I want to live. I am in a game, and in order to live, I have to escape. That’s the thing, though: I don’t know how to escape. I was running for my life around this old house that looked like it came straight out of a horror movie. 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