Investment Analysis Financial Management †Myassignmenthelp.Com

Question: Discuss About The Investment Analysis Financial Management? Answer: Introducation The decision of the management is the most critical in ascertaining the main basis of the establishment of the business. So it must be clear that the decisions made by the management should be perfect and there should not be any flaws in the decision making. If any flaw would remain in the decision of the management then it could lead to bad impact on the profits and losses of the organization. The most appropriate option should be selected so that the management can get the desired results keeping in mind the factors affecting the goal of the management. Since the business environment in todays world is dynamic in nature hence only a decision keeping in mind a particular goal cannot be implemented. The result should be continuously evaluated so that the decision proves to be correct one and the desired results can be achieved (Berman, Knight and Case, n.d.). Usually there are two types of decisions taken top down approach or the bottom down approach. Depending on the type of decision the management is taking either of the two approaches is used. Although the decisions of the management is necessary to attain a particular result but the execution of the decision is more important for achieving a particular goal. It is important for the management to keep a healthy relationship with the lower level and the middle level management so that the decisions can be executed in the best possible manner. If the lower level or the middle level management does not function properly then any best decision in the world would not be successful hence there must be continuous good relationship with all levels of the management so that each and every person in the organization could feel the responsibility of the work given and function properly (Shim and Siegel, 2008). The management while making its decisions must keep in mind that it needs to make best use of available resources. But in most of the cases the decision of the management gets struck by the availability of the capital hence the management uses the capital budgeting method in order to get the best return with the available resources. Capital budgeting can be done using various techniques. They are discounted cash flow method, internal rate of return method, net present value method and payback period. These methods are described as follows: Discounted Cash Flow method (DCF method): In this method, the future cash flows are discounted to their net present values by using cost of the capital so that the present value of the investments can be evaluated. The main purpose is to identify the time value of money by discounting the future cash flows (Bruner, Eades and Schill, 2017). Internal Rate of Return method (IRR method): In this method the net present value from all the cash flows from a particular project is made zero by using a discount rate. This method is used to determine the potential of a particular project. The formula used for internal rate of return method and the net present value method is same. If the internal rate of return derived is greater than the rate of return the organization desires then the company will move ahead with the project however if the rate of return derived is lesser than the rate of return the organization desires then the company will forego the project and will not invest its money in the project (Saltelli, Chan and Scott, 2008). The calculation of the internal rate of return is as follows. The same example is also used for the net present value method: Net Present value method (NPV method): Net present value is basically difference of the present value of the cash inflow and the present value of the cash outflow. A project with a positive net present value will be taken and with a negative one will be foregone. For example: In case of two assignments A and B where the required rate of return is 10.25% and with different cash flow structures, the net present value of the cash flows will be shown as below: Discounted payback period: Breaking down the starting expenditure by scanning future cash flows and monetary time values are steps of a capital budgeting method which is discounted payback period (Taylor, 2008). According to this, if a project is to be undertaken by the company then the target period must be greater than the discounted payback period which is calculated. Sensitivity Analysis Evaluation of values from different types variables are taken into consideration in this type of analysis. Alteration in the dependent variables with a change in the independent variables is recorded by an analyst in accordance with some constant circumstances. Also known as What if analysis. This analysis is useful for both corporate and personal level decisions. The main business of t6his analysis is to record the alteration in the output value in accordance with a change in an input value while keeping all the other inputs constant (Galbraith, Downey and Kates, 2002). For conducting the sensitivity analysis, following measures should be paid attention to: Evidence should be present for as the base case output; like NPV at a particular base case input value (V1) for which the sensitivity needs to be measured after having all other inputs constant. All the input values must be kept aside and a new value must be undertaken to evaluate the output. After the above processes the %change in both input and output must be evaluated. Dividing the %change in output with the %change in input will reap the final amount of sensitivity. As per the evaluation made, it is clearly evident that if the value of the sensitivity is higher, then the output will be more influenced by any alterations in the input value or the opposite case may be. Scenario Analysis Process related to the evaluation of the estimated value in accordance with the alteration in the key factors such as interest rates, etc for a fixed span of time is referred to as scenario analysis. Calculation of various reinvestment rates is the main work of this analysis with which maximum profit can be attained by the company. All this scanning and reporting is done by a professional analyst. Values of various portfolios keeps on changing as per the changes in the environment and this analysis helps in its detection as to follow the principle of What if analysis. While investing in a particular project, it is advised to use this form of analysis to have a vision of all the ups and downs range probability of the project which keeps on changing and thus increases the threat of irreversible investment or grave loss. Thus, this analysis detects the flaws and the risks of the project at an early stage so as to prevent the losses which can be suffered buy the investor (TULSIAN, 2016). Standard deviation of the monthly or daily security returns can be regarded as the best process to grab the scenario analysis technique. The above procedure evaluated the value of a current portfolio. This analysis provides the analyst with a satisfactory reason as of why the value of the portfolio has been subjected to alteration. There exists some differences between the two above mentioned analysis and they are not at all similar to each other. This can be understood by a simple example like; if an equity analyst is keen enough to record the impact of both the sensitivity and the scenario analysis on Earning per Share(EPS) then he will have to evaluate it through the given data of earnings(P/E) multiple (Holland and Torregrosa, 2008). Break Even Analysis If in a span of accounting period a company undertaken a project which included expenses and then he company carries on with its work to gain surplus capital which can nullify the expense, then in that case it is said Break even analysis. So it is clear that there will be no gain or loss and thus the net income of the company will be zero. This analysis acts as a boon to clarify the amount of sales which must be made by the company so as to nullify all the expenses though the net income of the company will be zero (Khan and Jain, 2014).Accounting Breakeven analysis: Accounting breakeven analysis occurs when the net income is zero. This can only happen if the total revenue or capital gained is similar and equal to the total expense of the project. This can be achieved when we calculate the ratio of variable cost to sales. Taking an example, if there is a given ratio of 0.65 then this states that with every rupee of sales of each unit, the contribution is 0.35. Thus, the contribution m argin ratio comes to 0.35. Therefore the breakeven point can be calculated by the following equation: Breakeven Point = (Fixed Cost + Depreciation) /Contribution Margin Ratio.Non addition of the depreciation leads to the breakeven point to be known as the cash breakeven point. Zero returns on the sale clearly depict that that a particular value has been in contact with the breakeven point. As there in no profit in the project so the money which is invested by the company will be recovered with no additional amount (Reilly and Brown, 2012). Financial breakeven point: If the initial investment is found to be similar to the cash flow then the NVP breakeven occurs. When the net present value is equal to zero then the analyst has to be provided with the transaction related to the amount of sales so as to evaluate the final breakeven point. The term simulation refers to the duplication of a condition or method. Monte Carlo simulation can be thought of as the analysis of the methods that have been copied from the original ones or can be defined as the analysis of the key features of the system of random numbers by the process of duplication. Adding up of the advantages with the ones of the capital budgeting can be thought to be possessed by the simulation analysis as it gives the analyst a clear vision of the risk that prevails in the project. This analysis also keeps a track record of all the alteration being made in different variables of the company. The following steps are to be followed to perform this analysis: Variables need to be categorized for both cash outflows and also for inflows. Every variable related formula must be highlighted and evaluation of probability distribution for every individual variable should be done. Installation of a computer program so as to select a value from every probability distribution of each variable should be done so as to finalize the successfulness or failure of a project by analyzing such values. The result of this calculation is not a small value but it is rather a profitability distribution of all the feasible expected returns. A list of limitation for the capital budgeting prevails in the system though it is important for decision making processes. Inapt and mysterious investments arises difficulty in the preparation of perfect budget. It is advised that all the decisions should be seriously scanned because they comprise of heavy amounts which are irreparable in nature Conclusion From the above assignment we have come to know various techniques and the importance of capital busgeting which are summarised below: Evaluation of the risks: Threats prevails in any long-term investments which are termed as capital costs. Capital budgeting provides the company a safe and secure way to get hold on such expenses (Clarke and Clarke, 1990). Finding the best course of action: This provides the firm with all possible probability of investments from which the company can easily choose the most profitable one. Its main target is to provide profits to the shareholders and thus to increase the dominance and respect of the company in the market. Long run of the business: Reduction in the expense with an increase in the profit at the same time can be sensed while using capital budgeting. This technique makes the company a long race horse while shielding it against abrupt investments. Also helps in analysis, assessing appropriate arrangement (Fairhurst, 2015). Irreversible investments: Some projects require massive funds to be borrowed by the company. In such cases the project must be thoroughly scanned and then only any investments should be carried because such investments once made have no chance of getting refunded. References Berman, K., Knight, J. and Case, J. (n.d.).Financial intelligence for HR professionals. Bruner, R., Eades, K. and Schill, M. (2017).Case studies in finance. Dubuque, IA: McGraw-Hill Education. Clarke, R. and Clarke, R. (1990).Strategic financial management. Homewood, Ill.: R.D. Irwin. Fairhurst, D. (2015).Using Excel for Business Analysis A Guide to Financial Modelling Fundamenta. John Wiley Sons. Galbraith, J., Downey, D. and Kates, A. (2002).Designing dynamic organizations. New York: AMACOM. Hassani, B. (2016).Scenario analysis in risk management. Cham: Springer International Publishing. Holland, J. and Torregrosa, D. (2008).Capital budgeting. [Washington, D.C.]: Congress of the U.S., Congressional Budget Office. Khan, M. and Jain, P. (2014).Financial management. New Delhi: McGraw Hill Education. Palepu, K., Healy, P. and Peek, E. (2016).Business analysis and valuation. Andover, Hampshire, United Kingdom: Cengage Learning EMEA. Phillips, J. (2014).Capm / pmp. New York: McGraw Hill. Reilly, F. and Brown, K. (2012).Investment analysis portfolio management. Mason, OH: South-Western Cengage Learning. Saltelli, A., Chan, K. and Scott, E. (2008).Sensitivity analysis. Chichester: John Wiley Sons, Ltd. Saunders, A. and Cornett, M. (2017).Financial institutions management. New York: McGraw-Hill Education. Shim, J. and Siegel, J. (2008).Financial management. Hauppauge, N.Y.: Barron's Educational Series. Taylor, S. (2008).Modelling financial time series. New Jersey: World Scientific. TULSIAN, B. (2016).TULSIAN'S FINANCIAL MANAGEMENT FOR CA-IPC (GROUP-I). [S.l.]: S CHAND CO LTD.

The Five Pmlc Models free essay sample

Introduction Prior deciding on the project management most suitable approach, a PM must investigate the clarity of the two major variables, goal and solution (Wysocki, 2009: 299). Based on the criteria of clarity, Wysocki (2009: 327) defined 4 management â€Å"quadrants† adopting 5 PMLC models:  § TPM: Linear and Incremental  § APM: Iterative and Adoptive  § xPM and MPx: Extreme Each type of the 5 PMLC models is expected to encounter various risks and failure factors. The PM should asses the risks associated with each model, to decide the most convenient approach. Linear PMLC Model This model is the simplest among the illustrated models, since the 5 process groups are expected to occur once in the entire PMLC within the planned sequence (Wysocki, 2009: 343). A PM would adopt the linear model if the project undertaken is: clear in the aspects of goals and solutions, similar to previously executed projects, short in duration and falling in a single department’s authority. However, and despite the simplicity associated with implementing this model; Wysocki (2009: 350-353) defined six weakness points for the linear model: limited flexibility to scope changes, high cost, last minute production of deliverables, requires early detailed planning, fixed sequence of work, and lake of focus on client value. We will write a custom essay sample on The Five Pmlc Models or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In the construction industry, and per my limited experience, this model is widely adopted. I believe that scope changes are the most challenging risk associated with this model. Hence, other than proper definitions of RBS, COS and POS, a PM should lay a contingency plan (including money and time) for those scope creeps, in addition to a very strict and rights reserving policy for scope changes’ approvals (Franchina, 2010). Incremental PMLC Model The model was designed to partially deliver incomplete deliverables through the PMLC through conducting sequential increments (Wysocki, 2009:358). In addition, Wysocki (2009: 360-364) defined 7 associated risk areas with this model: seldom team intactness, incremental documentation, fixed set of processes, increment definitions are not based on business value, longer duration, requires clients involvement, and other problems due to dividing the deliverables. However, the first defined risk is the most serious, I believe. Since an alternative key role would affect the project’s performance dramatically. Thus, Franchina (2010) recommended planning the key player’s task in a manner that would keep them utilized through the PMLC. However, I don’t believe in Franchina’s solution applicability, thus, I would further recommend the development of a methodology or a method statement for the crucial personnel to mitigate the effect of resources alternation. Iterative and Adaptive PMLC Model Despite the differences between the two models, both are having common risks: need for client’s involvement and undefined deliverables (Wysocki, 2009: 396-411). Franchina (2010) recommended two practical solutions:  § During the planning process, the client’s involvements should be clearly reflected on the work schedule and accountability matrix should be defined; In addition, during the planning and controlling process, the client must be aware of the developed cost estimates, to decide the feasibility of the project against the expectations. Extreme PMLC Model The name of this model explains the amount of risk associated with the adoption. Since neither the goal nor the solutions are defined, the PM would be facing two major risks: uncertainty of solutions approach and the uncertainty of achieving materialized business values. Franchina (2010) defined two mitigating actions, firstly, that the client should clearly understand, in the early stages, that his investment in a certain stage might be totally lost due to the undefined solutions, and that he might need to re-finance the project all over again. Secondly, the contractual documents might state clearly the associated risks to diminish the business-value liability of the provider. Conclusion All of the 5 PMLC models are expected to encounter risks and failures. In the iterative model, scope changes are the most serious risk, by developing contingency plans and scope change’s strict policies risks would be mitigated. In the incremental model, developing a plan that utilizes the key player’s time along the definition of each role method statement/methodology, the risk of project’s team lack of intact would be mitigated. In the iterative and adaptive models, by defining client’s responsibility along the planning process and updating the client with the budgetary progress, risks would be mitigated. Finally, extreme models are the most risk encountering models, however, through keeping the client aware of the associated risks and developing a right’s reserving contract –that diminish the liability of the provider for business value delivery— risks would be mitigated. Bibliography Franchina, T. (2010) The Five Project Management Life Cycles [Online] Project Management Forum’s Blog. Available from: http://projectmanagementforum. wordpress. com/2010/07/06/the-five-project-management-life-cycles/ (Accessed: 6 August 2011)

Chinese Funeral Traditions and Preparation

Chinese Funeral Traditions and Preparation While Chinese funeral traditions vary depending on where the deceased person and his or her family are from, some basic traditions still apply. Funeral Preparation The job of coordinating and preparing  Chinese funerals falls on the children or younger family members of the deceased person. It is part of the Confucian principle of filial piety and devotion to one’s parents. Family members must consult the Chinese Almanac to determine the best date to hold the Chinese funeral ceremony. Funeral homes and local temples help the family prepare the body and coordinate the funeral rites. Announcements of the funeral are sent in the form of invitations. For most Chinese funerals, the invitations are white. If the person was age 80 or older, then the invitations are pink. Living until 80 or beyond is considered a feat worth celebrating and mourners should celebrate the person’s longevity rather than mourn. The invitation includes information about the funeral’s date, time, and location, as well as a small obituary that includes information about the deceased that may include his or her birth date, date of death, age, family members that survived them and sometimes how the person died. The invitation may also include a family tree. A phone call or in-person invitation may precede the paper invitation. Either way, an RSVP is expected. If a guest cannot attend the funeral, the tradition is that he or she sends flowers and a white envelope with money. Chinese Funeral Attire Guests at a Chinese funeral wear somber colors like black. Bright and colorful clothing, especially red, must be avoided as these colors are associated with happiness. White is acceptable and, if the deceased was 80 or above, white with pink or red is acceptable as the event is cause for celebration. The deceased person wears a white robe. The Wake There is often a wake preceding the funeral that  may last several days. Family members are expected to keep an overnight vigil for at least one night in which the person’s picture, flowers, and candles are placed on the body and the family sits near by. During the wake, family and friends bring flowers, which are elaborate wreaths that include banners with couplets written on them, and white envelopes filled with cash. Traditional Chinese funeral flowers are white. The white envelopes are similar to red envelopes that are given at weddings. White is the color reserved for death in Chinese culture. The amount of money put in the envelope varies depending on the relationship to the deceased but must be in odd numbers. The money is meant to help the family pay for the funeral. If the deceased person was employed, his or her company is often expected to send a large flower wreath and a sizable monetary contribution. The Funeral At the funeral, the family will burn joss paper (or spirit paper) to ensure their loved one has a safe journey to the netherworld. Fake paper money and miniature items like cars, houses, and televisions are burned. These items are sometimes associated with the loved ones interests and are believed to follow them into the afterlife. This way they have everything they need when they enter the spirit world.   A eulogy may be given and, if the person was religious, prayers may also be said. The family will distribute to guests red envelopes with a coin inside  to ensure they return home safely. The family may also give guests a piece of candy that must be consumed that day and before going home. A handkerchief may also be given.  The envelope with coin, sweet, and handkerchief should not be taken home.   One final item, a piece of red thread, may be given. The red threads should be taken home and tied to the front doorknobs of the guests’ homes to keep evil spirits away. After the Funeral After the funeral ceremony, a funeral procession to the cemetery or crematorium is held. A hired band resembling a marching band typically leads the procession and  plays loud music to frighten spirits and ghosts. The family wears mourning clothes and  walks behind the band.  Following the family is the hearse or sedan containing the coffin. It is typically adorned with a large portrait of the deceased hanging on the windshield. Friends and associates complete the procession. The size of the procession depends on the wealth of the deceased and his or her family. The sons and daughters wear black and white mourning clothes and walk in the front row of the procession. Daughters-in-law come next and also wear black and white clothes. Grandsons and granddaughters wear blue mourning clothes. Professional mourners who are paid to wail and cry are often hired to fill up the procession. Depending on their personal preference, Chinese are either buried or cremated. At a minimum, families make an annual visit to the gravesite on the Qing Ming or Tomb Sweeping Festival. Mourners will wear a cloth band on their arms to show that they are in a period of mourning. If the deceased is a man, the band goes on the left sleeve. If the deceased is a woman, the band is pinned to the right sleeve. The mourning band is worn for the duration of the mourning period which can last 49 to 100 days. Mourners also wear somber clothes. Bright and colorful clothes are avoided during the mourning period.

Exploring how HR practice can drive the innovation in Abu Dhabi Dissertation

Exploring how HR practice can drive the innovation in Abu Dhabi Education Council - Dissertation Example These factors are important for the EI: motivation among employees, coordination skills, and knowledge sharing and employee empowerment. This study was carried out on an educational organization in UAE named as ADEC. The respondents were the employees of the organization, selected from two specific departments. To accomplish the objective, a survey questionnaire was designed in relation to the factors mentioned above. The sample of 70 employees from the two departments namely, human resource department and the department for policy planning and management were taken. Stratified sampling technique was used to select samples because the purpose was to obtain quick information. Acknowledgments I would like to thank Almighty Allah for His endless blessings and providing me with the much needed courage and inner help especially during this difficult phase of my life. I would like to thank my supervisors and I am highly indebted to them for their constant support and help. Firstly, I would like to thank Mr. / Ms ----. My teacher has been a great source of guidance during this task and helped me to complete this work. ____ has been a constant source of inspiration, very encouraging and supportive at every step of the task. My teacher has been willing to give continuous, timely and quality feedback which is unmatched in my experience. I am obliged to my Department â€Å"--------† from where I completed my Masters studies and attained more advanced knowledge regarding HRM and training. My deep gratitude is extended to -------- for his/her immense support and cooperation which helped me a lot in timely completion of study. Also I am thankful to ------- for her/his generous and tremendous support. My sincere thanks are due to the employees of ADEC working in Abu Dhabi whose cooperation in terms of filling up the questionnaires has made this effort successful. Finally, I would like to thank my family, my parents, friends and siblings for their unconditional love, su pport, prayers and optimism – without you all, I would not be able to reach this destination which I am today. Contents Abstract 2 1.1 Objectives of the Study 11 1.2 Rational of the study 12 2.0 Literature review 12 2.1 Definition of Training 12 2.2 Training process 13 2.3 Learning Theories about Training 14 2.4 Employee Empowerment 15 2.5 Knowledge Sharing 16 2.6 Co-ordination Skills 17 2.7 Employee Motivation 19 2.8 Employee Innovativeness (EI) 20 2.8.1 Definition of Innovativeness 20 2.8.2 Innovativeness and Theory 21 2.8.3 Innovativeness Driving Factors 22 2.8.4 Anti-innovativeness Factors 24 2.9 Conceptual framework 26 2.10 Relationship between Training and Innovativeness (Li, Zhao and Liu, 2006) 27 3.0 Research Methodology 27 3.1 Research Question 27 3.1 Research Method 28 3.2 Research Strategy 29 3.3 Data Collection Sources 30 3.4 Target Population 31 3.5 Sample Design 31 3.6 Sample size 32 3.7 Data Collection Instruments 32 3.7.1 Questionnaire 32 3.8 Fieldwork 33 3.9 Data Analysis 33 3.10 Ethical Consideration 34 3.12 Aadvantages of the Research Method 35 3.13 Disadvantages of the Research Method 35 4.0 Results and Discussion 35 4.2 Training and innovativeness 36 4.3 UAE work culture and its influence on training and innovativeness 37 4.4 Analysis 38 5.0 Conclusion 63 5.1 Organizational Overview 63 5.2 Review of Hypothesis Development 64 5.2 Review of Research Problem and Objective 65 5.3 Explanation 66 6.0 Recommendation 67 6.1 Managerial Implication 69

Methanol to acetic acid Assignment Example | Topics and Well Written Essays - 1000 words

Methanol to acetic acid - Assignment Example These routes include methyl formate isomerization, methanol carbonylation, synthesis gas to acetic acid, vapor phase oxidization to acetic acid and other novel technologies (Sunley, G., & Watson, D., 2000 p.294). The carbonylation of methanol in the production of acetic acid is capable of catalyzing at high rates with minimal water concentrations while using iridium or iodide based reactor. The onset of methanol carbonylation to acetic acid began in 1960 and was commercialized by the BASF. In this introductory approach, the production o acetic acid employed the use of cobalt catalyst that was in operational synergy with the iodide as a co-catalyst. This process was conducted at high pressures of about 680 bars as well as high temperatures of 250 degrees Celsius. The Baden Aniline and Soda Factory (BASF) selectivity procedure to acetic acid production accounts for about 90% on the basis of methanol. In the mid 1960s, Monsanto developed a novel approach in methanol carbonylation using rhodium as the major catalyst again aided with iodide as a co-catalyst. This acetic acid production mechanism was highly selective accounting for approximately 99% based upon methanol (Sunley, G., & Watson, D., 2000 p.294). The use of rhodium in methanol carbonylation was novel because it allowed acetic acid production under mild chemical environments. ... Exclusive licensing and patent rights to Monsanto was acquired by BP Chemicals, the UK based group in 1986. Ten years upon this acquisition, BP Chemicals announced an innovative process in methanol carbonylation. This process was named Cativaâ„ ¢, on the basis of an upgraded iridium/iodide catalyst. The methanol carbonylation process as described by Cativa offers greater improvements compared to the conventional rhodium based catalyst technology. These advancements include high rates of reaction, improved yield of carbon monoxide, and improved stability of the catalyst enabling the process to be taken under low concentrations of water. Additionally, the Cativa process offers a reduction of the liquid by-products. This full implementation of the Cativa process commercialization was in November 1995 (Sunley, G., & Watson, D., 2000 p.295). The effectiveness of using iridium in tandem with iodide as a co-catalyst for methanol carbonylation at minimal pressure was initially demonstrate d by Roth and Paulik while working at Monsanto. This was during the time of their discovery of the rhodium/iodide catalyst methanol carbonylation process. The reactivity and mechanism of iridium based catalysis in acetic acid production can be conducted in either a nonionic acid or methyl acetate. These studies have elucidated that the iridium catalyzed reaction is more complex compared to rhodium catalysis process (Sunley, G., & Watson, D., 2000 p.296). There exists two catalytic cycles in the iridium catalyzed methanol carbonylation process in the manufacture of acetic acid. One reaction involves the neutral catalytic intermediaries while the other involves predominant negatively charged species. In his study, Forster was unable to distinguish the reaction rates from the ones

Reverse Logistics Processes

Reverse Logistics Processes Definitions â€Å"The process of planning, implementing, and controlling the efficient, cost effective flow of raw materials, in-process inventory, finished goods and related information from the point of origin to the point of consumption for the purpose of conforming to customer requirements.† Logistics is defined by The Council of Logistics Management What is Reverse Logistics? We refer to the term reverse logistics as all activity associated with a product/service after the point of sale, the ultimate goal is to optimize or make more efficient aftermarket activity, thus saving money and environmental resources. As equally as Logistics deal with the set of events that move the product to customer, the reverse process moves the product at least on step back in the supply chain. The objective is to regain the value or proper disposal, when the product returns in the opposite direction. The sold goods get returned due to improper quality control measures leading to damage, recalls, hazardous materials and obsolescence.,   It involves collection, transportation disposal of returned , damaged /surplus goods through reuse, resale, or repair. Importance Of Reverse Logistics. Reverse logistics responsiveness and quality has a direct a positive effect on the companies economic performance.   Companies have to accept returns in the shape of products or materials as a legal obligation. As organizations offer warranty along with sale of items, and to minimize the cost of warranty and sale price, the reversals become inevitable for sustaining customer satisfaction and quality assurance. The closer the company is to the end customer, the greater the size and scope of reverse logistics issues. .The worldwide legislations on hazardous materials (WEEE and ROHS), demand reverse logistics for repairables. Size Of Reverse Logistics It is difficult to estimate the cost in Reverse logistics management as many   companies do not have systems to estimate. Research says it is around 4% of the cost of logistics, based on a survey sample.. Return Percentages The reverse logistics process can be divided into two categories depending on the areas of reverse flow which in turn comprises of primary products, or primary of packaging. A Company has varied disposal options to choose once a product has been returned. The company looks primarily to return it to the supplier for a full refund. In case of goods not used may be resold to a different customer or at an outlet store. If goods do not meet required quality levels, then it may be sold to a salvage company that will export the goods to a foreign market. Common Reverse Logistics Activities : Activites that comprise of reverse logistics include:, Refurbishing, Recycling , landfill, repackaging, returns processing and salvaging Key Reverse Logistics Management Elements Gatekeeping Compacting Disposition Cycle Time Reverse Logistics Information Systems Centralized Return Centers Zero Returns Remanufacture and Refurbishment Asset Recovery Negotiation Financial Management Outsourcing Strategic Use Of Reverse Logistics The strategic usage of Reverse logistics among the retailers and wholesalers is to reduce the risk of buying products that may not be hot selling items. In some industries goods are distributed with the understanding that retuning the goods for credit is allowed if they are not sold. This encourages retailers to carry a huge stock thereby shifting the risk of having unsold goods (obsolescence) goes to the company. The retail seller at the nearest reach to the customer exploits the situation ordering a huge consignment and resulting in heavy returning. An example of the strategic use of returns in the market is the sale of newspapers and magazines, and the sellers carry more stock for a considerable incentive. By doing this the reseller were allowed to return the goods within the stipulated time frame. This facilitated the customers to the inventory low and purchase things in time. Every business aims to lock the customers in and not to opt for to another supplier. There are many ways developed by the supplier to link themselves to the customers not to switch to another supplier. One important service that a supplier can offer to his customer is the ability to accept the defective goods immediately and refund the amount timely. Every retailer needs to have a strategic vision of the logistics in order for him stand updated in the market. The retailer in business of electronic toys can easily get off business if they do not have the knowledge or vision of reversal logistics. Several surveys have estimated that a larger part of the profit was due to the improvised strategies. How An Effective Strategy Can Be Developed: The best methodology for an effective reverse logistics to be framed and implemented would be working on the existing process in the business. The traceability and quality management system will identify goods timely and correctly outlining the features of a product in details and the reasons of defect with a solution of a product when returned. The reverse logistics process can be managed through a tailored program called Enterprise resource planning system. A tailored ERP system can provide varied information related to the returned inventory. It can give the number of returns from the customer, identify the reasons of the returned goods, check the course action to be taken and deal with the product and allocate resources in dealing with the product. An ERP system, equipped with robust processes, should be sufficient to manage its reverse logistics strategy. The other crucial aspect in reverse logistics is the concept of collaboration. It works efficiently with a effective collaboration involving a larger visibility. Sharing of information, supporting integrated decision making should be a vital feature of the collaboration. Constant communication and shared processes with a common vision should be practiced for a successful designing and implementation of Reverse Logistics. This has become a integral part of any business in day to day life which may results in many benefits to the company. Every retailer, manufacturers and producers need to create the necessity of reviewing the logistics followed. They can work on their existing systems that trying to find ready made solutions. The companies have developed various simple and effective strategies for running a successful Business. The various steps or factors involved while defining at effective reverse logistics Security Shipping and Receiving Labour The Return Policy Inspect Returns Assign Disposition Real Examples or Practical Examples of Effective Reverse Logistic. Reverse logistics is also applied for a different non-commercial cause and used for a reason of charity or   gain a mileage augmenting advertisement returns. Such donations get a goodwill to a company and act as a substitute for ads .Henna Anderson Co s Hannadowns   campaign retrieves   used clothes from the customers and gives an offer on the new purchases. The returned clothes reach the less-privileged ones. As a second example, Kenneth Cole Productions makes offers to customers returning old shoes and given away to the needy. Nike shreds the retrieved old shoes and converts them into basketball courts and tracks. Business Implications Despite the costs, companies do accept returned goods, with original receipt or a fees, as Returns Management is an important strategic tool in a competitive environment. Return policies are in place to influence purchase decision of a customer. Return management is a strategy similar to reverse logistics involving a decision on how the return will be dispositioned. When returns are a liability and restrictions are too many in land filling, then disposal is a less attractive   option. Difficulties Of Reverse Logistics Companies budget for   what is known as â€Å"Brand Equity† to attach an image   to products and can not afford to reduce the value of primary investment   , by having their product appear in a flea market. The difference in the objective of the manufactures and retailers exists due to the different strategies followed in managing returns. For Eg, In case a retailer wants to return a good to the manufacturer and he would disagree for varied reasons as follows: Condition of the item,Value of the item and the promptness. The assumption by the retailer for returns sent back in pure , pristine conditions and any damages must have occurred in transit or must be manufacturing defects, leads to criss cross of purposes. The inefficiency of the reverse logistics is indicated by the amount of returns inventory being held in the warehouse and clearly denotes the way the firm is handling returns. Unfortunately, some symptoms that cannot be identified and observed are as below. These have been defined by Dr. Dawe. For most firms processing returns is not a priority.Focus is on new generated products revenue and returns received are in more number to the processing or disposal. Declined value of the returns due to obsolescence (computers , fashion ware). Company policies making it difficult to handle returns as the â€Å"junk† damages quality products. Conclusion First, develop strong reverse logistics strategies. Second, clearly outline financial, corporate, branding, marketing and other objectives. Treat it as another business; and not a simple operation. Give it goals, give it objectives, give it resources, give it executives and let it be part of the â€Å"Lifecycle† design for your products and your customers. References Curt Barry, â€Å"How to Develop a Reverse Logistics Strategy: 8 Tactics to Try.† Catalog Success Magazine, 2003.+http://www.fcbco.com/articles-whitepapers/Reverse-Logistics-Strategies.pdf Reverse Logistics Executive Council, http://www.rlec.org. Stefan E. Genchev, Reverse logistics program design: A company study Business Horizons, Volume 52, Issue 2, March-April 2009, Pages www.logisticsit.com/absolutenm/templates/ http://ideas.repec.org/a/aes/amfeco/v10y2008i24p192-209.html http://www.reverselogisticsprofessional.com/ http://www.sciencedirect.com/science http:www.mhhe.com/browsersox-scm Hawks, Karen. VP Supply Chain Practice, Navesink. Reverse Logistics Magazine Winter/Spring (2006). http://www.rlmagazine.com/edition01p12.php Rengel, P. Seydl, C. (May 2002). Completing the Supply Chain Model. Retrieved on 2008-04-25. Harrington, Ryan, VP GM for Reverse Logistics / Projects, NYK Logistics. Reverse Logistics Magazine. Winter/Spring (2006). http://www.rlmagazine.com/edition01p14.php Greer, 2004 Rogers, 2002 Mollenkopf D., Russo I. and R. Frankel, 2007 The returns management process in supply chain strategy. http://veltusresearch.com/Documents/Mollenkopf%20etal-07-Returns%20Mgmt%20Strategy%20(Italy).pdf. Retrieved 2008-05-05. Reverse side of logistics: The business of returns. http://www.forbes.com/2005/11/02/returns-reverse-logistics-market-cx_rm_1103returns.html. http://dictionary.bnet.com/definition/reverse+engineering.html http://www.clrb.com.br/publicacoes/academico_framework.pdf

Audit Memo

Audit Planning Memorandum for Database Environment Date| 02/04/2013| To| Audit Senior Management| School Board| Temple University| Prepared By| Shan Jiang| ————————————————- Background Types of RDBMS: MySQL 5. 0 – an open-source database used extensively in small or medium-sized web applications. One of the simplest databases to secure from hacking because of the small attack surface it exposes Number of DB servers: 3 Business units rely on the DBs: Sales and Distribution, Financial Services, Procurement, and Accounts Receivable.Organizational structure of the group who manages the DBs: Data Owner, system administrator, and database administrator. 1. 0 Internal Audit Objective and Scope 2. 1 Internal Audit Objective The objective of this review is to audit confidentiality, integrity, and availability of XYZ Company’s MySQL 5. 0 database environment. 2. 2 Inter nal Audit Scope and Approach The scope of this review includes an assessment of MySQL 5. 0 database environment. Specifically, this review will include: * Physical and administrative control Concurrent access controls * Change controls * Server configuration control * Database checkpoints * Schema Modifications * Redundancy elimination and relationship verification * Database restructuring * Data backup and disaster recovery plan 2. 3 Deliverables Audit deliverables will consist of the following: * Fieldwork documentation * Finding Issues * Audit draft report * Action plan and recommendation * Audit final report It is planned that the above deliverables will be delivered to you by 02/07/2013 for your review and subsequent discussion. . 0 High-Level Work Program Policy and standards, data backup and procedures, levels of access controls for data, data encryption, confidentiality, integrity, availability of data elements, database checkpoints at junctures, database reorganization, dat abase restructuring procedures and write report. 3. 0 General Information 4. 4 Internal Audit Team The internal audit team, with roles and responsibilities, includes the following people: * Lua Li: associate, audit database basic step and general controls. *Jia Meng: associate, audit database operating system security * Shan Jiang: associate, audit database accounts and permissions management * Zhou Zhou: senior associate, audit password strength and review database privileges * Chao Lang: senior associate, audit data encryption * Jia Yu: manager, verify database auditing and activity monitoring. 4. 5 Duration of Internal Audit The duration of this internal audit will be for one month commencing on 02/11/2013. 02/11/2013-02/15/2013 Planning 02/16/2013-02/20/2013 Fieldwork and documentation 2/21/2013-02/25/2013 Issue discovery and validation 02/26/2013-04/01/2013 Solution development 04/02/3013-04/07/2013 Report drafting and issuance 04/08/2013-04/11/2013 Final report and issue track ing It is anticipated that the fieldwork, working papers and drafting of deliverables will be completed by Internal Audit Team. 4. 6 Location of Internal Audit The location of the internal audit will be performed at XYZ Company. It is predicted that a site visit to XYZ Company will be conducted during the course of this review. 4. 7 Temple University Previous Audits Previous Audit Version: March 3, 2012Previous Critical Findings: Developers have direct access to update production code without permission. Impact: It is fixed. The DBMS team implemented a baseline tool for protecting the production code. The ability to check new code into this tool will be limited to the DBA. The team also documented procedures requiring approval and testing prior to submitting new production code for check-in. 4. 8 Key Contacts Contact| Position| Department| E-mail| Contact No. | Jim Green| Database Administrator| IT| [email  protected] com| 435-234-8899| Lucas Xiao| System Administrator| IT| [email   protected] om| 123-324-3211| David Han| Database Developer| IT| [email  protected] com| 876-123-1234| Ryan Li| System Analyst| IT| [email  protected] com| 542-345-0989| Billy Zhou| Manager| IT| [email  protected] com| 324-123-4321| 4. 0 High-Level Work Schedule Date| Task| Contact| 02/11/2013-02/15/2013| Verify policies and procedures about database version and available patches| David Han| 02/16/2013-02/20/2013| Determine baseline for adequate security setting and permissions on the directory and registry keys. | Ryan Li| 02/21/2013-02/25/2013| Verify legitimate accounts creation and password management capabilities. Jim Green| 02/26/2013-02/28/2013| Confidentiality, integrity, availability and encryption of data| Lucas Xiao| 03/01/2013-03/03/2013| Database checkpoints at junctures| Ryan Li| 03/04/2013-03/05/2013| Database reorganization| Lucas Xiao| 03/06/2013-03/08/2013| Database restructuring procedures| Jim Green| 03/09/2013-03/11/2013| Ready to report| Billy Zhou| 5. 0 Key concerns of management. Operating system administrators gains easy access to MySQL Server. SQL Server DBA's has local administrator privileges on Windows. Data breaches that compromise IP or personal privacy. 6. 0 Manager Sign-off Billy Zhou 02/07/2013