In Search of Excellence Essay Example | Topics and Well Written Essays - 2000 words

In Search of Excellence - Essay Example They claimed that excellent organizations had created methods that enabled them to strike a balance between the soft-s and hard-s factors achieved in a business. Maintaining and finding an applicable balance in these business factors was a vital issue in making an organization successful. According to Peters and Waterman (1982), then, the modest slippage of commercial America was to be observed as an imbalanced product in the American approaches to organization. They went on to argue that these imbalanced products had advanced in the organization approaches that had begun in America for the period of 1950s and 1960s. According to Peters and Waterman (1982), in the post second world war period, many managers in America were obsessed upon the hard-s business factors; structure, systems and strategy. In addition, the managers had not realized the significance of skill, style, superordinate goals, and staff which were the soft-s business factors needed in breathing life into systems, str uctures and strategies. Peters and Waterman (1982) recommend a more balanced management approach. The approaches considered balanced to business would hinge upon the energy, skills and imagination of managers. They are, therefore, charged with the duty of safeguarding the productive arrangements of the soft-s and hard-s business factors. ... They also stated that these companies would have a culture showing the eight aspects of excellence as shown in their research (Frost, Moore, Louis, Lundberg & Martin, 1985). Peters and Waterman listed the eight aspects of excellence. The first one was a bias for action. Exceptional companies engaged in planning activities that were traditional. However, the traditional activities did not bind the companies from other vital managerial approaches. They went on to argue that an excessive dependence on planning done traditionally and dependence upon the hard analysis of data, delayed decision making in many companies. It also discouraged risk taking. Exceptional companies avoided paralysis by analysis (Peters and Waterman, 1982). This was by evading using committees and refusing to agree that all decisions made have to be supported by hard analysis of data. Instead of using committees, these exceptional companies preserved a bias for action which explains the willingness in trying out in novative ideas and taking risks (Peters and Waterman, 1982). Peters and Waterman (1982) affirmed that the commitment in action was preserved by exceptional companies. This is because the exceptional companies form groups of people who like to experiment and innovate. This trend to action might be compared with approaches being adapted by other companies. These companies form committees that engage in briefs talks on experimentation (Peters and Waterman, 1982). The second aspect of excellence is a company’s in proximity to the customers. The exceptional companies have to improve their strategies, systems, structures and innovation in meeting and exceeding the customers’ expectation. Incase a product or a system did not satisfy the customer, exceptional

Project Appraisal & Finance Essay Example | Topics and Well Written Essays - 4500 words

Project Appraisal & Finance - Essay Example We have to clarify the two sets of key questions we are dealing with. The first answers the questions "what" investments are and "why" they are important for a business, whilst the second answers the question of "how" investments decisions are made. The second part of our paper elaborates and expands on some of the key concepts that we cover in the first part. In the process, we hope to acquire a deeper understanding of the principles, methods, and issues that have to be considered in investment decision-making. This paper will closely simulate the complex world of top management decision-making faced by any business on a daily basis, and where no single discipline - finance, production, corporate social responsibility, or general management - dominates. As we look at all the conceivable angles that any normal business looks at prior to the making of an investment decision, we can realise that just like in the real world, we need to make choices. Hopefully, our discussion will show that management decision-making is a complex task, that every decision made today can have far-reaching consequences, and that any professional manager who wants to be a worthy practitioner of the art and science of management must take his or her educational preparation, and eventually his or her responsibility as a manager very, very seriously. The ABC Mining plc Case For purposes of clarity in our understanding of the assumptions used in our discussions and the consequent calculations to arrive at our decisions, we summarise the key facts of the case. ABC Mining plc is investigating the possibility of purchasing an open-cast coal mine at a cost of 2.5 million which the government is selling as part of its privatisation programme. It would invest in and operate the mine for four years, after which it would clean it up and sell the assets. The Finance Director prepared the projected profit and loss accounts shown in Table 1, and in his report to the Board of Directors recommended that the company should not proceed as the profitability of the proposal is poor. The following are the questions that need to be answered: First, what could be considered as the most appropriate investment appraisal methods which would help the company to decide whether or not to proceed with the project Second, explain why we consider the investment appraisal methods just discussed to be the most appropriate for evaluating investment projects. Third, we would discuss briefly whether the project should go ahead. Table 1: ABC Mining plc Profit and Loss Statement (in millions) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Comments Investments Purchase (2.5) Paid to government Equipment (12.5) Financed 10m debt at 12% Sale of Equipment 2.5 Year 5 sale of vehicles/eqpt Working capital (0.5) One-time investment Sunk costs (0.2) Included in Year 1 write-off Survey costs (0.4) Counted in Year 1 Clean-up (0.4) Net vehicle sales 2.1 Sales 9.4 9.8 8.5 6.3 Less: Direct Exp Wages (2.3) (2.5) (2.6) (1.8) Incl.