Toyotas Culture and Leadership Strategy

Theoretical Background Efficient leadership is seen as one of the crucial factors affecting the company’s performance. Researchers, as well as practitioners, stress that leadership strategy should be consistent with the organisational strategy as well as the culture of the company (Witcher Chau 2010).Advertising We will write a custom essay sample on Toyota’s Culture and Leadership Strategy specifically for you for only $16.05 $11/page Learn More Bersin (2012) claims that a high-profile top manager can be unable to run a company if he/she chooses the wrong leadership strategy or worse has no leadership strategy at all. Toyota has been one of the examples of an organisation with the strong leadership consistent with the company’s organisational strategy. It is possible to evaluate the leadership strategy employed to get an idea of the way effective leadership strategy is linked to the organisational strategy. The evaluation of the co mpany’s leadership strategy should be considered in terms of the theoretical framework. The transformational theory has been regarded as the most efficient leadership approach for decades (Witcher Chau 2010). In terms of this paradigm, the leader inspires team members and implements the change. At that, the change should be ongoing as the business world is constantly transforming. Notably, such frameworks as lean leadership and servant leadership have been developed within the transformational theory. These leadership styles are based on the concept of collaboration, effective communication, guidance and mentoring. The styles will be discussed in more detail based on the particular example of Toyota. Toyota’s Background First, it is necessary to provide some background information about the company in question. Toyota was founded in 1937 when it produced its first automobiles. Importantly, one family runs the company throughout its entire history. This contributes to the creation of a particular culture and vision in the organisation. In 1958, the company penetrated the US market (Company history 2015). This was the start of the company’s global growth. Now, it is a high-performing company with a significant market share. It has also developed rapidly, and it had 9.7% of the global market share in 1998 while it achieved 13% market share in 2008 (Cole 2011). Schwagerman and Ulmer (2013) emphasise that the company has grown steadily for 40 years though other carmakers’ sales decreased. The financial crisis of 2008 had a significant adverse impact on the development of the company and led to some reduction in production. However, the company managed to overcome the difficulties and was even more successful than its primary competitors who faced more substantial losses.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More At that, the quake-tsunami that took place in 2011 was a significant impact the company is still trying to recover from. The natural disaster disrupted the supply chain that was highly efficient but unprepared for such a large-scale crisis (Agence France-Presse 2013). It is noteworthy that Toyota has been an illustration or even a symbol of performance excellence and high quality. Piotrowski and Guyette (2010, p. 90) note that the organisation has been â€Å"touted as the pinnacle of automotive excellence† by such rating agencies as Consumer Reports. Nonetheless, there have been a number of constraints associated with poor quality, and the company had to recall millions of cars in the 2000s. For instance, the scandal associated with car mats took place in 2009 (Cole 2011). Another serious quality crisis took place in 2010 when the company lost more than $2 billion as repair costs (Piotrowski Guyette 2010). Such crises had a significant adverse effect on the company’s performance and image. It is clear that some changes should be implemented. Thus, Mark Hogan who is American and has not moved through the ranks of the company was appointed (Agence France-Presse 2013). Some other international professionals are also promoted to top management positions to link the company’s leadership to the global market trends and peculiarities. Toyota’s Leadership Toyota’s Leadership and Culture Irrespective of numerous difficulties, the company is still one of the leaders of the industry. It is necessary to evaluate the strengths of the leadership strategy used in the company to come up with methods to improve it. Liker and Convis (2011) provide a detailed analysis of the company’s approach to leadership and note that lean leadership employed has proved to be effective and consistent with the organisational strategy and culture. Toyota is regarded as the creator of the lean leadership strategy, which is based on the principles introduced by Henry Ford (Shang 2014). Importantly, the lean approach has proved to be inefficient when it is not linked to the corporate culture of the organisation (Al-Najem, Dhakal Bennett 2012). To understand the essence of the lean leadership, it is crucial to consider some peculiarities of the company’s culture. Toyota’s culture is characterised by the so-called 4P model that consists of such major elements as philosophy, process, people/partners and problem solving (Liker Hoseus 2008).Advertising We will write a custom essay sample on Toyota’s Culture and Leadership Strategy specifically for you for only $16.05 $11/page Learn More Characteristic features of this culture are the emphasis on open communication, development and training as well as building trust. Liker and Hoseus (2008) highlight two primary parts within Toyota’s culture. The external part starts with the organisation’s customers while the internal part concentrates on employee s and their involvement in the culture. Importantly, the basic principle of the company (and the core of its culture) is ‘go and see’ (Daft Samson 2014). The case when Kiichiro Toyoda found one of his workers standing in front of his machine trying to understand why it was not working. The founder of the company literally rolled up his sleeves and looked into the machine’s pan. He found a lot of sludge there, which was the reason for the malfunction. This case has become one of the major concepts for the organisation’s employees (executives, managers, workers and so on) who have been trained that to understand the core of the problem it is essential to dig into it. The Role of the Leader The role of the leader is clearly defined and incorporated into the organisational culture. Hence, the leader is an observer who spends a lot of time with employees and is an empathetic listener (Wilson 2013). The leader is a lifelong learner who is ready to acquire knowl edge or to be trained. The leader is an initiator who develops, communicates and implements the plan. This is the person who is able to take risks as well. The leader is a lifelong teacher who is eager to find and realise new teaching opportunities. The leader is a role model who inspires employees. Finally, the leader is a supporter who encourages, guides employees and who has the necessary skills of the so-called servant leadership. Servant leadership presupposes prioritising employees at the top while placing the leader at the bottom of the pyramid (Shang 2014). Such leaders have three primary responsibilities. First, they support the operations, which implies guidance and mentoring. Secondly, they promote the system, which presupposes effective articulation of the vision and mission as well as development of the healthy atmosphere in the company. Finally, they lead the change through mentoring, encouragement and employment of various tools. Importantly, the servant leadership al so involves the concept of value-adding work, which is the process of doing tasks in the environment where all members add value.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Lean Leadership Since Toyota’s culture is described, it is possible to define lean leadership and evaluate its effectiveness. The concept of the lean leadership has developed from the lean manufacture. The primary concern of the latter is eliminating wastes. The concept transcended other areas, and now lean leaders focus on eliminating any wastes in production, quality, provision of services, communication, and so on. The central goal of the lean approach is to change the culture of the organisation from â€Å"passive and defensive to open and pro-active† (Al-Najem, Dhakal Bennett 2012, p. 125). The company with lean leadership ensures that customers are the major priority, and the customers should also feel that. This type of leadership presupposes elimination of barriers between senior management and employees. Another characteristic feature of the lean approach is standardisation (Chandra 2013). Mann (2009) stresses that lean leadership can be effective when senior management adopts it and sets an example, which leads to the development of the corresponding mind-set. As has been mentioned above, the leadership strategy has to be closely linked to the company’s culture, and this is the case with Toyota. The company’s corporate culture is based on the principle of empowerment of employees who are trained and committed to the culture. Leaders have to go and see what is really happening on the site. Prior to obtaining the right to make decisions, they have to be at â€Å"gemba†, which is the place where â€Å"the value-creating work happens† (Ahmed 2013, p. 32). There are no barriers between senior management and employees. Cooperation and open communication are the basis of the decision-making process. Finally, both Toyota’s culture and leadership strategy are based on the principle of empowerment. All employees are adding value, which is especially crucial when it comes to quality. Improvements to Be Made None theless, it is clear that the company, which has always been a symbol of high quality, has been involved in a number of quality scandals. This shows inefficiency of the leadership practices. Senior managers seem to forget about the ‘go and see’ principle or worse they chose to conceal some issues, which later led to significant impairment of the quality of products and services provided (Rajasekera 2013). Hence, it is essential to make sure that senior managers are committed to the culture as the lean leadership starts with top management. At that, these leaders should also be aware of major trends existing in the global market to be ready to address various issues that can occur (Agence France-Presse 2013). It seems that the principle of reporting about problems and malfunctions rather than concealing them was abandoned in the late 2000s (Piotrowski Guyette 2010). The organisation is lacking for transparency when it comes to operations, as well as communication among employees. These impairments in the leadership practice can be removed through the implementation of the change. Employees should be trained and mentored to become more committed to the corporate culture of the organisation. Apart from that, it is clear that the leadership failed in the period of crisis. The quake-tsunami in Japan and the flood in Thailand in the 2010s impaired the supply chain of the company, and it was unprepared to act in the time of crisis. Heineman (2014) stresses that crisis management should be incorporated into the leadership strategy utilised. The focus on quality should remain but executives should pay more attention to possible threats and crisis situations. The practice based on the ‘go and see’ principle should be facilitated by practices based on the principle ‘evaluate and foresee’. Employees should constantly question decisions made and make sure that the slightest issues are tackled properly. Finally, the organisation has t o be more transparent when it comes to internal as well as external communication. Rajasekera (2013) argues that Toyota’s inability to employ social networking has led to a significant damage of the company’s reputation. At that, modern customers are heavy users of such kind of technologies. More so, public opinion is often constructed through social networks. Therefore, it is crucial to utilise this platform as a way to increase the organisation’s openness. The focus should be made on the quality. Conclusion On balance, it is necessary to note that Toyota has long been a symbol of quality in business operations and leadership. The company has developed and successfully utilised the lean leadership. This paradigm consists in the elimination of all possible ‘waste’ in operations, manufacture, communication, leadership and so on. It presupposes elimination of barriers between senior managers and the rest of the employees. It is also based on the princ iple ‘go and see’ where all employees are active contributors adding the value. The leadership strategy is closely connected with the organisational culture, which makes it so efficient. However, the company has had certain difficulties associated with impaired quality lately. At that, the situation can be improved if Toyota returns to the core values and practices. The major focus should be made on such aspects as decision-making, transparency, and crisis management. Reference List Agence France-Presse 2013, ‘Toyota leadership changes signal new direction, analysts say‘, Industry Week. Web. Ahmed, M. H. 2013, ‘Lean transformation guidance: why organisations fail to achieve and sustain excellence through lean empowerment’, International Journal of Lean Thinking, vol. 4, no. 1, pp. 31-40. Al-Najem, M., Dhakal, H. N. Bennett, N. 2012, ‘The role of culture and leadership in lean transformation: a review and assessment model’, Internat ional Journal of Lean Thinking, vol. 3, no. 1, pp. 119-138. Bersin, J. 2012, ‘It’s not the CEO, it’s the leadership strategy that matters‘, Forbes. Web. Chandra, P. V. 2013, ‘Approach to lean leadership through creating a lean culture’, International Journal of Engineering Science and Innovative Technology, vol. 2, no. 4, pp. 35-40. Cole, R. E. 2011, ‘What really happened to Toyota?’, MITSloan Management Review, vol. 52, no. 4, pp. 28-35. Company history, 2015. Web. Daft, R. L. Samson, D. 2014, Fundamentals of management: Asia Pacific edition, Cengage Learning Australia, South Melbourne. Heineman, B. W. 2014, ‘The crisis management lesson from Toyota and GM: â€Å"It’s our problem the moment we hear about it†Ã¢â‚¬Ëœ, Harvard Business Review. Web. Liker, J. Convis, G. L. 2011, The Toyota way to lean leadership: achieving and sustaining excellence through leadership development, McGraw-Hill Professional, New Yor k. Liker, J. Hoseus, M. 2008, Toyota culture: the heart and soul of the Toyota way, McGraw-Hill Professional, New York. Mann, D. 2009, ‘The missing link: lean leadership’, Frontiers of Health Services Management, vol. 26, no. 1, pp. 15-26. Piotrowski, C. Guyette, R. W. 2010, ‘Toyota recall crisis: public attitudes on leadership and ethics’, Organization Development Journal, vol. 28, no. 2, pp. 89-97. Rajasekera, J. 2013, ‘Challenges to Toyota caused by recall problems, social networks and digitisation’, Asian Academy of Management Journal, vol. 18, no. 1, pp. 1-17. Schwagerman, W. C. Ulmer, J. M. 2013, ‘The A3 lean management and leadership thought process’, The Journal of Technology, Management, and Applied Engineering, vol. 29, no. 4, pp. 2-10. Shang, G. 2014, ‘Toyota way lean leadership: some preliminary findings from the Chinese construction industry’, in Proceedings of IGLC22, Oslo, pp. 1145-1156. Wilson, L. 20 13, ‘Six qualities of lean leadership’, Industry Week. Web. Witcher, B. J. Chau, V. S. 2010, Strategic management: principles and practice, Cengage Learning EMEA, Hampshire. 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What is investment and an introduction to investing The WritePass Journal

What is investment and an introduction to investing Introduction What is investment and an introduction to investing IntroductionWhat is investment and an introduction to investingFactors to consider to when investing in a companyLiquidityProfitabilityCapital structureGearingInvestor relationsShare price trendsCorporate social reportingCompany background Marks and spencerEasyjet Profitability for marks and spencerConclusionRecommendationsReferencesRelated Introduction What is investment and an introduction to investing Investment is a term to describe in business, which is totally dependent on how money or capital used to buy assets or where as the financial instruments which is to create profit return which is used to relating to the interest and income. The different types of investment used in finance are when purchasing securities or any other financial assets that are purchased from the capital market. Investment describes that when you are buying in the capital market it shows that a market has a high liquidity. Real life examples of investment include buying properties, gold, silver, insurance companies and cars. (http://finance.mapsofworld.com/investments) Financial investments are when investing in stocks, bonds or any type of investment.   Indirect investment is when investing with a third party such as the bank, pension funds which are available for old people and also there is a account which is made for students to invest in. Factors to consider to when investing in a company The factors to consider when investing in a company is how the company is generating profit for the next five years The next factor is that look at the company’s share prices and how well the company is performing on the London stock exchange. The main point of investing and putting money in a company is that how much returns on investment that they will get back. Investors should also look the newest addition of the annual report and analyse what so good in that company compared to others to invest in that company There is also a 50/50 chance of losing money when investing in a company and there is also 50 % chance of getting more money than you have invested in. Investing also contain huge amount of risk. Liquidity Liquidity in the finance terms refers which has the ability to change assets into cash quickly in order to repay the debts, which refers to a current liability.     The main points of liquidity in a company is that to meet the needs for liquidity where as the company must have the needs for cash because this shows that the cash in hand is relevant to the company can earn more cash or borrow money by paying off the debtors.   The liquidity of a company also depends on the short notice of cash, the cash in hand and also what the company reputation is in the financial market. Www.Riskglossary.com/liquidity Profitability Profitability is a word to describe how a company can generate or make earning form their products. The purpose of profitability is to help investors look at how the company has been performing over the two years and also they do this by using the profitability ratios and this is used to help the investors how the company has been performing over the two years and also the investor may choose one of the best companies to invest in. The profitability ratio measures seven different ways of how a company is using and how are they making their profits. The main points of profitability ratios are the gross profit and operating profit margin. investopedia.com/terms/p/profitabilityratios Gross profit is where the costs if goods have been sold which shows a percentage of sales. The gross profit margin shows how good the company or business is performing and how are they controlling their costs and also the stock of their products where as it is being sold and given to the customers. The bigger the gross profit it is showing that the company will get a higher amount of profit. Operating profit margin is where earning before interest and taxes which is included in the comprehensive statement which measures how well the company is performing overall efficiency and also showing all the expenses incurred for the period and also the business activity that the company is doing. http://tutor2u.net/business/presentations/accounts/profitabilityratios/default.html Capital structure Capital structure is how a company receives their money to help investors of how to finance or manage their money in an organisation. The purpose of capital structure in a business is that it shows where to allocate the shares in order to purchase new financial assets, which they must sell the shares in an organisation to buy the new assets. investopedia.com/terms/c/capitalstructure.asp Gearing Gearing is when a business or organisation manages or receives it money to the business activities that what exactly are they doing. Example of gearing includes bank loans, debentures, loans and shareholders.   A company or business which can use gearing to analyse which tells the potential investors that a company with a high gearing ratio is going to be weak in investing because it probably will not have the money is financed by long term loans where is shows there is a low gearing ratio is for shareholders and for retained earnings. investopedia.com/terms/g/gearing.asp Investor relations Investor relation in business states that it how a company or organisation gives financial data about the company and also shows how well they are doing financially to the shareholders. investopedia.com/terms/i/investorrelations.asp Share price trends Share price trends is where it shown on the London stock exchange which looks at company’s shares prices and looks at what has happened daily, weekly, yearly and monthly. All the UK based companies are FTSE 100, which are the best 100 companies in the UK Corporate social reporting Corporate social reporting in business looks how well an organisation is how good a company stabilizes. For example how a company create products for the environment the product must be eco friendly and it also look at the social factors and environmental issues of when a company is creating a product. consultnet.ie/Corporate%20Social%20Reporting.htm Findings Company background Marks and spencer Marks and spencer is one of the biggest leading retailers in the UK as they achieve very high profits such as net and gross. Marks and Spencers also consider how to attract their customers and also expand their marks and spencer branches locally and internationally.   Marks and spencer also think about future plans of how to improve the profitability and also Marks and spencer’s have recently have been making organic food to help customers to eat healthy and it was made to make the environment a better place to live. Marks and spencer annual report pg 1 Easyjet Easyjet is one of the successful and leading airline companies in the UK and Europe.   The purpose of Easyjet is to give customers the value for moneys and safe when travelling with Easyjet.   Easyjet also offers a good product and airline fares which apply to leisure activities and business, which is in a range of UK and European routes. Easyjet annual report pg1 Profitability for marks and spencer Marks and spencer is one of the biggest retailers in the UK because it shows they are able to generate high profits which are taken from the shareholders that they invest in and which also gets the results that shows the shareholders get paid dividends each year.   Also marks and spencer has a very long-term strategy because this shows how they can generate their long-term profits for the future.  Ã‚   Marks is spencer is also good for investing in the business which consider benefits for example is opening and creating more products and thinking about services is to get more money from the investors to improve the profitability of marks and spencer. Marks and spencer annual report Profitability for easy jet Easyjet for the last couple of years are doing well in the business market and also overall easyjet financial highlights are that there is continued growth in the total revenue per seat, which is 5.1%, but last figures show it was 8.6% so the change in percentage was 3.3 %. This shows that the shareholder has got a higher number of dividends in 2010 because it is a 3.3 % increase, which shows that they have profitability. Looking at the airline industry it shows easy jet is a low cost airfare airline which shows Easyjet are very well structured in the market.  Ã‚   Easyjet are also in the airline industry shows that the fares are going to increase so the business and leisure activities might decline for easyjet causing them to lose profits. Easy jet annual report Analysis of both companies Making the analysis of both companies and seeing both of the companies profitability it shows that marks and spencer is a business is making more cash which shows it is very good for the investors because marks and spencer have a better return on equity which shows marks and spencer have a better profitability than easyjet. Looking at easyjet as a business it is more profitable for the investors to invest in. Look at appendix Liquidity of easy jet and Marks and spencer Marks and spencer are quite weak at their liquidity because they cannot convert their assets into cash because marks and spencer don’t meet the need for the criteria because the company have invested in management systems which main aim is to reduce all the costs and make a high level of customer satisfaction which shows they are think about their long term goals which is to maintain profitability. Marks and spencer annual report Looking at easyjet profitability it shows that in the annual report it is shown that they are able to use liquidise which shows that they convert their assets into cash. When current situation arises such as volcanic ash disruption, winter snow disruption and air traffic control and this is to show that how easy jet can use liquidity to pay for the current situation but a disadvantage is that they might not be able pay off the long term loans. Easy jet annual report Analysis of liquidity of easyjet and marks and spencer. Looking at both of the companies liquidity it shows that easyjet has a higher liquidity factor which shows they have a higher current liability which tells you about how they can pay off the currents situations and also easyjet has more cash than marks and spencer as they can convert their assets into cash so easyjet can then make payments for dividends for marks and spencer. Look at appendix Capital structure Marks and spencer use capital structure and gearing by looking at all their finances which are the current liabilities such as bank loans, retained earnings finance rent lease is when you rent a shop branch. Marks and spencer borrow money from the bank and then marks and spencer will pay the bank later. Also if the interest rates are high for marks and spencer may not be able to pay of the long-term debts. Marks and spencer annual report Easyjet uses capital structure and gearing by looking at the money available which are all the long-term loans and which are looked at by the finance lease payments. The capital structure reviewed is looked is having the financial resources in place to support the circumstances occur that arise to the company’s which can withstand the company’s stock. These risk show that easyjet take are safety and security and incidents that are having a effect on the reputation, operational and the financial performance of the company.   The other risks that easyjet take is macroeconomic which is the effect of the residual value of the aircraft.   The next that easyjet risk they take is whether competition in the airline that can also result to the losses of the market shares. The next risk that easy jet take is where the impact on easyjet is where in the business market is the cost base and the market share of easyjet.   The last risk that easyjet take is environmental issues which there is lots of customer demand for easyjet. Easy jet annual report Analysis for both companies for capital structure and gearing. Looking at both of the companies it is shown in the appendix that marks and spencer have a higher long term finance which equals the liabilities which shows how the ratio is and how the largest amount of interest charge but there is a bigger risk so in the last couple of years it is shown that marks and spencer are doing better than easyjet. The figures show that the long-term debts to equity show how safely they can borrow money after a long period of time. The figures show they are more than 50% so this states that marks and spencer borrow more safely than easyjet.   The figures show that gearing that easyjet has a higher gearing than marks and spencer so this shows easyjet knows how to finance its operations. Look at appendix Investor relations Investors relations is when marks and spencer is that when the board members of marks and spencer is the main points of investor relations is that it has a good brand, clear plan and also marks and spencer has the people and employers which have very good leadership skills and also it is how the managers motivate the employees and gives the customers something to cheer about.   The importance of investor relations is that marks and spencer thinks about the long-term strategy and plans of the business. The approach to governance report is how marks and Spencers is thinking about what correct steps and decisions to take which are the potential shareholders, managers, employees and suppliers and also the environment.   Marks and spencer take the correct steps by doing the right thing by taking the right point across the business, which shows the correct balances, which is treating customers and supplier with kindness and respect. Marks and spencer annual report The investors in easyjet gives a chance to all it shareholder to have a say against the board of easyjet plc.   The easyjet investor will talk about how the business issues effecting easyjet and also how the relation department which talks about the easyjet which is about easyjet operations and presentations of the company. Easy jet annual report Analysis of investor relations The analysis of both of the companies is that it shows both of the companies are mature which shows that both of the companies have perfect management programmes. The disadvantage between easyjet and marks and spencer is that easyjet and marks and spencer are that easy jet has better researching and development methods in their products better than marks and spencer.   Easyjet also feels help out the investor when it involves the business activities Easyjet also offers and provides more information than marks and spencer such as monthly transactions going in and out which can show investors making the correct decisions in which company to invest is. Look at appendix Corporate social reporting in marks and spencer use in the products which are climate change, waste materials, natural resources and fair partner and health and well being of marks and spencer.   Marks and spencer try to decrease the greenhouse gases that produce and also mark and spencers in the last couple of years have cut down the carbon emissions by eight percent.   Marks and spencer’s have also help customer and employees who has made them choose them for a healthy lifestyle and also their 81% salt reduction on the food products.   Marks and spencer also ensure that their raw materials come from sustainable sources. Marks and spencers annual report and also look at appendix Easyjet in the corporate social reporting is that easyjet use composite risk value, safety management programme and airborne volcanic object identifier. Composite risk value looks at how safely the manager reports to the board, which is marked and looked at the members of the easyjet.   The safety management looks at how to look and identify the potential hazards and looking at all the risks involved and looking at the different changes which effect and the chosen hazards, which they may find a solution.   Airborne volcanic object idenfier look at how easyjet looks at the management systems with the infrared technology which is the aircraft, which is given help to the pilots to see volcanic ash, hundred kilo metre ahead in the attitude. Easy jet annual report Analysis of corporate social reporting of the both companies. The analysis of both of the companies is that marks and spencer shows they have a better way of showing it better than easyjet and also marks and spencer think about how to make the product eco friendly for the environment.  Ã‚   Easyjet has a major advantage compared to marks and spencer is that they main four points which are included which think about the safety of the customers and give the customers the value for money when travelling with easyjet and also think about why to invest in a company for easyjet. Easy jet annual report and marks and spencer and also annual report Analysis of the share trend of marks and spencer and easy jet   The share prices trends compared to marks and spencer and easyjet throughout for the year is at the start of the year easyjet figures shows that there is 20,000 pound difference and throughout is shown in the appendix it has been dropping and also been rising and then went to a constant price buts marks and spencer company share prices have been constant but they have lower share prices than easyjet so it better to invest in easyjet because it shows to the investor to get a better return back for how much you will put in the business. Look at appendix Conclusion As you can see from the analysis above it shows that easy jet and mark and spencer are both stable companies, which are currently in profits. Marks and spencer is a better company compared to easyjet is that in the profitability figures is shows that marks and spencer has a better return on sales than easyjet as this shows is this ratio describes how well the performance of the company is doing and also and getting the maximum sales available. Comparing both of the companies liquidity shows that marks and spencer has a better liquidity which shows that they have more cash in hand so it better to pay of their current obligations.   If you look at the retail industry and you look at the marks and spencer where the major competitors are and also looking how good are those companies are good to invest in. If you look at the retail industry it is current in huge profit so this shows the investors if they want to invest in marks and spencer they will get a higher dividend the following y ear. When looking at the airline industry have to look at other airline companies how are their share prices compared their share prices and also how are doing are losing profit or they gaining profits.   If looking at the share price trend is shown in the graph that easyjet has a higher share price so it better for the investors to invest in easyjet because it is shown that company has a got a high share price in the current market. Easyjet compared to mark and spencer capital structure and gearing show that marks and spencer know how to finance it money properly and also think about how total debts which equals to total amount of the total amount of assets which basically is how it focuses on the financial structure and also it shows how well marks and spencer has a got very good financial structure and also shows how effective marks and spencer’s use it finances which shows how well marks and spencer and easy jet are doing for the last couple of years. Recommendations The recommendation is that the company that I would go for is that marks spencer’s rather than easyjet because marks and spencer has a very good liquidity, profitability capital structure and gearing ration but the major disadvantage is the share prices and trends is that easyjet has a higher share price than mark spencer that is the only factor that effect that gives a weakness on marks and spencer. Investors should invest marks and spencer because it a well know profitable company and is well known internationally and will get a better return on equity at this shows the investor will get a higher dividend per year which is a good company to invest in. References www.investopedia.com marks and spencer annual report 2010 easy jet annual report annual report www.investorwords.com www.riskglossary.com/liquidity www.tutor4u.com/business and profitablity (http://finance.mapsofworld.com/investments) Books references Financial accounting and reporting (barry Elliot and Jamie Elliot Company accounts fourth edition roger groves Accounting international edition harrision

Impact of Other Industries on Power Tools Industry Essay

Impact of Other Industries on Power Tools Industry - Essay Example Hand Tools are tools that are powered manually (U.S. Department of Labor, 2002). These tools are powered solely by the person using it and do not use motors (Wikipedia, 2007). These include hammers, screw drivers, hand drills, saws and knives etc., that require manual power to operate. The Hand Tools industry can be a threat for power tools. Though outdated and used less frequently, yet they can be the tools of choice by some consumers due to their lesser costs and supposedly longer lives. Hand Tools offer some benefits as compared to power tools, these don't rust easily, there is no expenditure required for purchasing batteries etc., electricity is not required to operate these and there are no essential scheduled maintenance requirements. Hence, hand tools can provide a cost competitive alternative for some people, mainly the Do-It-Yourself (DIY) type of customers. The forecasting for the hand tools industry depends upon the value the user derives from the use of these tools. The estimations can be obtained using customer surveys that show preferences of customers who are using hand tools. The surveys can provide valuable information about the features that power tools manufacturers should try to incorporate in their design if possible. In addition, some estimates can be developed by analyzing the revenues and sales data of various companies providing hand tools and then comparing this data with the power tools sales information to identify the extent of competition hand tools providers are posing for power tools industry. Bench Mounted Tools Bench Mounted tools are those that are not portable; these are fixed (mounted) at a place. Usually, these are required in small industries where tools like Thickness Planer, Saw Table etc. (Mitre 10, 2007) are used by a group of workers at the same time. These are mainly used where a number of people are involved in doing a single task like an assembly line where all workers follow similar procedures. In these kinds of situations, using portable tools is cost ineffective; instead the bench-mounted tools are used for efficiency and effectiveness gains. These are also used in metal working environments. The Bench Mounted tools industry provides competitions to the portable electric power tools industry because a large number of industries have now installed fixed tools instead of providing portable tools to all its workers. The forecasts can be derived by analyzing the historical industrial data for new technology deployment and from sales figure of these tools. Air Driven (Pneumatic) Tools Pneumatic tools are powered by compressed air and include chippers, drills, hammers and sanders (U.S. Department of Labor, 2002). These tools are usually used in the mechanical and automotive industries which require high power tools. They may pose a competition to the portable electric tools market where the electric tools face the threat of substitution. The relevant forecasts and statistics can be obtained by analyzing the market size and segmentation. Liquid Fuel and Hydraulic Power Tools These tools are operated by generating power from liquid fuel like gasoline or water. These are used in environments where there is a need of extremely high power to operate the tool. The industry data can be obtained for estimating the market size and usage level and then an estimate can be made regarding