Service Corporation International

History, Development and Growth of the company Service Corporation International began its operations in 1962. Robert L. Waltrip formed the corporation. At first, it began its operation in Houston (USA). It was set up to offer funeral services, crematoria and cemetery facilities. Service Corporation International has expanded from Houston to North America. It offers funeral services and cemetery facilities mainly in United States and Canada.Advertising We will write a custom case study sample on Service Corporation International specifically for you for only $16.05 $11/page Learn More The Company has set up over three thousand funeral service locations, over five hundred cemeteries and around two hundred crematoria. In addition, it began to offer insurance services in five continents (SCI, 2011). To improve its operations, the company conducts multiple business activities. These activities include branding of services and acquisition of other similar com panies to gain competitive advantage. For instance, Service Corporation International has brought together all its products under one brand name ‘Dignity Memorial’. This was meant to increase service delivery to customers as well as boost its recognition. Service International Corporation has managed to expand steadily due to acquisition of additional funeral homes. The original names of the acquired firms as well as the existing management are retained after the acquisition. The company only ensures that their logo is used to identify all the property it owns. This has enabled it to expand secretly without the notice of its competitors. It has achieved reputation in the market since it is one of the most successful organizations. In this regard, it is rated to be one of the highly equipped providers of funeral and cemetery services. As a result, its market position in the minds of consumer has enabled it to conquer a large proportion of the market. In addition, the lev els of returns have made it diversify in the market. This process has yielded more loyalty from consumers and led it to be listed in the New York Security Exchange. Internal Strengths And Weaknesses Strengths Having examined the company’s development history, it is evident that it has survived all challenges to get to its present position. It is also clear that this company has a good profile that can be analyzed to foretell its future (Mooradian et. Al., 2012). Service Corporation International has numerous internal strengths that include:Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The company has a good work force- The Company has a good management system. It has been able to sustain the company through difficult times. For instance in the year 2000, the economic conditions were not favorable, which affected all businesses across the globe. Therefore, the management had t o cut down costs by closing down some of its subsidiaries. During this period, they realized that more than seventy percent of the company profits were from United States and Canada. The company has invested in real and financial assets- Service Corporation International owns numerous assets, which are famous. For instance, it owns the largest cemetery in the world that measures 2500 acres. It also owns Joseph Gawler’s Sons Funeral home in Washington D.C. This funeral home is preferred by famous personalities. These facilities are renown to offer the best services that meets clients’ needs. The company has distinctive brands- The Corporation has good brands, which enable customers to identify its property, products and services. These brands are unique and attractive compared to those of its rivals. As a result, its products and services are popular worldwide. Some of the brands of Service Corporation International includes: Dignity Memorial-This brand was found in 19 99, and operates in 41 states in the United States and 7 provinces in Canada Dignity planning- This brand is utilized in North America Advantage-The brand was designed to provide basic funeral services. Weaknesses Even though this company has portrayed significant strengths, weaknesses can also be raised out of its analysis. This can be given with the help of the controversies and scandals that have been raised against the company. The following issues have challenged the competitiveness of the corporation. In the late 1990’s, it was accused of failing to observe the law. The case was ruled in their favor because its founder was a friend to George W. Bush, the governor of Texas at that moment. The state frustrated the investigations of the matter. The governor and other leaders instructed the investigation to be abandoned. However, some individuals resisted. Consequently, they lost their jobs and were not given benefits as stated in the law.Advertising We will write a c ustom case study sample on Service Corporation International specifically for you for only $16.05 $11/page Learn More Service Corporation International has been accused of inappropriately delivering its services. In 2010, it was accused of having failed to inform the family of a woman that they had buried their member in a wrong grave. In addition, they later exhumed and buried the body correctly without notifying the family. The company also worsened the issue by failing to obtain a legal permit from the state before performing the exercise. A fine accompanied this activity on the company as well as punishments of the staff who were involved in the process. To ensure that the public notice the action, it published the whole issue in the company’s website. This mistake could have terminated its business. As a result, it established means of adhering to the law, and being careful in discharging duties. External Environment Service Corporation Internati onal is in an environment exposed to stiff competition. In this case, multiple corporations offer similar products and services. Forces such as the number of competitors, operational size, market share, profitability, and pricing strategies influence the corporation’s competitiveness (Johri, 2010). Porter’s five forces model can be used to illustrate the external environment forces. The model addresses the forces by analyzing the influence of suppliers, negotiation power of consumers, chances of new competitors entering the industry, degree of rivalry and threats of substitutes. Risk of New Entrants in the Industry A potential entrant refers to a firm that is not currently competing in the funeral and cemetery industry, but poses a threat if given a chance. This is because the penetration of newcomers causes competition for customers in the industry. Service Corporation International has minimized the degree of new companies entering the company through its strong capi tal base. At the same time, operating on low costs restricts new entrants. The marketing team of the corporation has promoted consumers’ loyalty. This process has been achieved through effective modes of product promotion in the industry. As a result, Service Incorporation International is controlling a larger market share. Suppliers’ Bargaining Power This relates to business entities that supply inputs to the corporation. Their negotiation power poses a threat to the corporation by interfering with prices of inputs such as raw materials and other input services. Consequently, suppliers may influence the operating costs. This threat caused by suppliers will lead to propagation of expenses costs to consumers.Advertising Looking for case study on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The cost managers of Service Corporation International take care of the welfare of its suppliers. Some of the approaches adopted include lucrative prices for consistency, rewards and bonus for supplies. Such business entities are regarded as a threat, and the corporation handles their matters appropriately. Threat of Substitutes The presence of substitutes with the ability to satisfy customers’ needs other than Service Corporation International’s products creates a threat. The corporation has learnt that reasonable prices should be charged for their services. In addition, the prices should fluctuate depending on the market conditions. When the number of companies that offer substitute services is small, the corporation benefits by charging optimum prices for its services. Furthermore, Service Corporation International differentiates its services through a variety of factors. Some of the factors used include geographical locations, demographic factors and attitudinal pr eference. In such a way, the customers have developed a positive mentality towards the corporation as the best choice. Buyers’ Powers The negotiation power of buyers refers to potential effects that consumers have on the prices of a company’s products or services. In this regard, strong consumers can affect the profitability of a company. To survive in the industry, Service Corporation International ensures that its services are of high quality standards. Through provision of reasonable priced services, it attracts consumers. At the same time, market segmentation has reduced the severe influence of consumers in their profitability. Therefore, the corporation continues to expand steadily without any challenge from consumers. Degree of Rivalry Rivalry illustrates the nature of competition for customers and inputs by firms in the same industry. Intense rivalry among well-established companies influences the profitability standards. Some of the factors that cause such a ph enomenon include demand conditions, growth rates and presence of a large customer base. In this regard, Service Corporation International negotiates with other firms in the same industry to establish a market structure for funeral and cemetery services. This initiative has reduced the fluctuations of profits in the corporations. Similarly, other corporations influence on Service Corporations International has significantly declined. The Value Chain Service Corporation International has survived in the market full of competitors. This company has a good system of service delivery. It can be well-explained using Porter’s concept of value chain. Porter has categorized value chain components into two groups: primary activities and support activities. Primary activities are activities done during provision of services by a company. This ensures that consumers are offered with the services. The corporation has carefully developed a strong value chain to gain competitiveness. It is crucial for a company’s survival in a competitive market. In this regard, the corporation has acquired multiple funeral homes that offer varied funeral services for the consumers. This is based on the social, cultural, religious and geographical differences. Some of these activities include upstream logistics, operations, downstream logistics, marketing sales and services. The realignment of these processes ensures that the corporation achieves the targeted objective of competitiveness. This will lead to a greater market share in the industry (Hersey Blanchard, 2002). Similarly, the corporation has a good system of conducting its operations. The other type of porter’s chain of activities called support activities illustrates this approach. Some vital issues that are considered include firm infrastructure, human resource management, technological development and procurement. The firm has a good organization structure with distinct chain of command. The roles of every e mployee have been clearly stated in their corporate governance guidelines. A board of directors that meet the qualifications of the company manages the company. Human resource management has carefully planned the corporation to ensure that workforce attains its set targets. The guiding core values of the department include dedication, excellence, integrity, accountability, innovation and respect. Technological development is also a crucial element of the corporation. Since technology is dynamic, the corporation incorporates new changes to ensure survival in the industry. Lastly, Service Corporation International has a sound procurement department that plans for acquisition of facilities and inputs. All these plans and approaches have enabled the corporation to remain in the peak of the industry (Heizer Render, 2004). The corporation is at the maturity stage of the business life cycle. The progress from this stage will lead to the post-maturity stage. Under this stage, the corporati on can experience three likelihoods. These likelihoods include renewal, steady or decline states. The appropriate state for the company to be is the renewal state. Through adoption of appropriate strategies, the company can renew its services and products to enhance its profitability. As a result, its influence in the market will continue to be felt. SWOT Analysis The SWOT analysis model describes strengths, weaknesses, opportunities and treats that a firm experience in the industry. Through the analysis of these factors, a company can be able to forecast future trends of the market. As a result, it can appropriately create strategies for dealing with any expected eventuality. Service Corporation International has the following strengths in marketing the funeral and cemetery industry: The services offered by the corporation are appealing and contending. These attributes have created preference and taste among consumers. Based on this fact, consumers have developed loyalty for the co rporation’s services in the industry. Since Service Corporation International has directed resources to provision of distinctive and innovative services, it has attracted a larger section of consumers. As a result, the volume of sales has steadily increased. Service Corporation International has been able to expand due to its flexibility in adopting new technology. The company has a good research and development team that handles financial and operational matters. The corporation has experience in the industry, which allows it adjust its services over other corporations in the industry. The company has seven brands that identify its services. This enhances marketing as customers easily recognize the services. Branding also differentiates the company’s products from those of other companies. Consequently, it assists in reduction of confusion among different companies’ services. Service Corporation International’s services are affordable to consumers as com pared to its rivals. Thus, the company can add any profit margin on the costs and still be a cost leader in the funeral and cemetery industry. Through this initiative, the expected profits are always high. As a result, the corporation can undertakes diversified investment projects in the same industry to attract more consumers.. Regardless of the above strengths, there are weaknesses within Service Corporation International. These weaknesses include: The previous records of the corporation affect its image among consumers. When the corporation messed up with the body of one of the families, fears began to develop. Furthermore, the favor given by the local government during the presentation of the verdict irritates most consumers. This occurs from the fear of such incidence reoccurring. Inappropriate advertising has affected the corporation market size. Based on its success history in the past, the corporation does not undertake rigorous promotions. The outcome of this incident has l ed to reduction in consumer base. Similarly, the marketing strategies do not cover substantially its various services. The management structure of the corporation does not cover effectively all the subsidiaries in the region. With the multiple subsidiaries, the corporation cannot effectively monitor their operations. In addition, the subsidiaries operate as different entities resulting in variation in service provision. Consequently, consumers are likely to go for those funeral and cemetery services from rivals with precise service specifications. The corporation’s human resource department is full of challenges. Since the department is located in each of the subsidiaries, they are operations are different. As a result, the large number of workforce cannot be easily monitored. This has led to inefficiencies in service delivery. To counter the above mention weaknesses Service Corporation International has viable opportunities in the funeral and cemetery industry. In addition, the opportunities boost the strengths of the corporation (Hamel, 2007). The following are the possible opportunities: The corporation has a substantial amount of base. In this case, it can invest in any type of investment with few limitations. In addition, their performance in the New York Security Exchange enables it to lure customers into their undertakings. This is because it is a sense of financial stability. The growing number of the population implies there is shortage of land to conduct funeral and cemetery services. In this regard, people will resort to commercial cemetery services and crematoria services. Such change of events would be in favor of Service Corporation International. If the company ventures into provision the services at affordable prices, it is likely to win over the market in the funeral and cemetery industry. Most of the services offered by the funeral and cemetery organizations are designed for the rich. If the corporation designs an initiative that favor s provision of services among the poor, the company would increase its customer base. This market would contribute small profits initially but will grow to offer the company substantial profits. In any business environment, all corporations are exposed to threats that may terminate their operations. Service Corporation International is likely to face the following threats in the funeral and cemetery industry: Provision of funeral and cemetery by giant manufacturers- Some providers of similar services as Service Corporation International may dictate the market directions through provision of products and services at relatively lower prices. Shortage of inputs and resources- During times of intense funeral and cemetery provision, Service Corporation International may not have adequate materials to inputs to provide the essential services. In addition, the corporation may experience a shortage of employees to provide similar. This will be caused by labor turnover, retirements or death in service. Consequently, it will expose the corporation to a risk of financial and customers’ loss. Low standards of services- Since Service Corporation International management are responsible for delegating their responsibilities to junior staff. The staff may not comply with the policies and procedures of the corporation. As a result, the company will taint its image in the eyes of the public. This will be a similar experience as it happened in the past. The above strengths, weaknesses, opportunities and treats reveal the nature of the corporation in the industry. Through integration of these elements, the organization will improve its competitiveness. If the corporation minimizes its weaknesses, it will play a great role in boosting its strengths. As a result, the profitability of the company would be high. This will go in line with maximization of stakeholder’s wealth (Graham Bennett, 1998). In a different dimension, the company has to exploit its opportunities at the current moment before they are obsolete. These opportunities are lucrative but seasonal. Based on these facts, the corporation can utilize its strengths to maximize on the available opportunities. The other aspects of threats should be dealt with appropriately. The corporation has to develop risk management strategies that will protect the company in case of any eventuality. Moreover, the corporation has to counter its competitors to survive in the industry. This could be through adjustment of business strategies or change of functional strategies. The Corporate Level Strategy Service Corporation International has a sound corporate management. It has developed its own corporate governance policy that governs its operations. Its corporate policy is as follows: ‘Service Corporation International (SCI) is committed to developing effective, transparent and accountable corporate governance practices’. The corporate governance philosophy adopts practices that are not o nly compliant with New York Stock Exchange (NYSC) and other legislative requirements. In addition, they have a board that constructively and actively engaged in corporate oversight. As a result, the corporation ensures that its services are genuine and effective amongst all its stakeholders. The company operates different lines of business, which includes provision of funeral services, cemetery facilities and crematoria services. The company offers these services in the name of the following brands. Dignity Memorial Brand It was the first national brand that was developed in 1999 to offer funeral, cemetery and crematoria services in North America. They assist in preparation of memorial services for consumers wishing to remember their loved ones. National Cremation Society It was formed in 1973 to offer cremation services. It is the oldest and the largest cremation service provider in North America. This facility provides the highest quality of service in the region. Advantage Servic e Corporation International aims at providing its services to all classes of people in the society. Advantage funeral homes were formed to gather for the needs of the poor. These consumers wish for simple forms of funeral services. Funeraria Del Angel Funeraria del angel is a brand that was formed to gather for the Hispanic group of people. This is because their death service requirement is different. As a result, their population is significant to demand an investment in providing such services to them. This service is also one of the projects initiated to cater for the cultural differences. Making Everlasting Memories Service Corporation International developed a brand that allows people to share memories of their loved ones. The company prepares biographies and other items that friends and relatives. These memories are shared amongst the families from one generation to the next. Memorial Plan In the process of providing services to all classes of people, the funeral services of h onorary people are addressed. A memorial plan has been formed to provide funeral services to those who wish to have prestigious funeral services. It is a new brand, which offers services in southern Florida. The Neptune Society The Neptune society is also called the ‘Trident society’ in some regions of California. It is known as the Neptune society in Los Angeles, San Luis Obispo, Santa Barbara and Ventura. The Neptune society offers cremation services to its consumers. Consumers with such a wish are provided with the service. The above seven lines of business operate under Service Corporation International’s management. They are distinct from each other with unique brands having their own logo. However, all properties of the company are identified by the ‘dignity logo’. Even though these brands operate distinctly, they are under one corporate management of Service Corporation International. Thus, Service Corporation International has been able to ex pand and grow since it was founded. It has acquired and merged with other companies in the same industry. Company’s Business-level strategy Service Corporation International is a single-business company. The corporation engages in provisions of funeral services. In addition, it acquires businesses in the same industry to promote its profitability. Some of the competitive strategies adopted by the company include service differentiation, cost leadership, and strategic development. These factors are influenced by the competitive position and life-cycle stage of the corporation (Shim Siegel, 2000). Service differentiation involves the formulation of services, which are unique in the market. In this case, Service Corporation International has invested in varied types of funeral homes. These funeral services address the needs of consumers depending on their social status, cultural backgrounds, geographical locations and religious beliefs. As such, consumers can differentiate the services of the corporation from those of its rivals. This has facilitated growth in the reputation of the company. Similarly, the consumers ranked the corporation among the best in the industry. Cost leadership involves the provision of services at varied prices to consumers. Based on the social classes of consumers, the corporation offers services to meet their needs. The corporation developed different funeral facilities and programs that consumers can make their choices. In this case, the corporation taps any revenue from diverse consumers. In addition, the services of Service Corporation International are relatively cheap compared to its rivals. This has made it one of the most cost-considerate companies in the industry (Freedman, 2007). In addition, the corporation has established functional strategic development. This initiative is aimed at expanding the asset base of the company within the region. Some of the programs that have been incorporated include marketing and researc h development. Through this means, the company is able to acquire more funeral homes. Moreover, it has incorporated comprehensive services that meet the consumers’ needs. Another critical element of the business-level strategies is the customer responsive nature. The corporation has established a set of values that govern the behavior of its employees during service delivery. High level of hospitality and respect are used to attract consumers. Through this act, consumers are given the first priority concerning their demands. This trend has made the company retain and attract more consumers. As a result, the customer base of the corporation steadily grows (Terry, 1999). Structure and control systems The corporation has well-structured and controlled systems of implementing its strategies. In this case, the company utilizes a vertical differentiation. The corporation has its headquarters in Houston and other subsidiaries distributed across North America and Canada. Over time, the company continues to acquire additional funeral homes. The management of all these branches may be challenging, but the company’s vertical differentiation plays a critical role (Williamson, 2004). The top management operates from the headquarters. These individuals are involved in formulation of strategic plans of the organization. The basis of the strategies is obtained from the lower level management. Through consultation made by the middle level managers and the operations managers, the top management can reflect on the real situations at the ground (Dewhurst, 2002). In this case, strategies are formulated to enhance retention of its existing employees and consumers. The human resource management department has established a vertical control system. In this regard, issues are addressed in sequential manners from the top management to the operational management. The vice versa also is functional. This management system assists the corporation to detect strengths and wea knesses in every dimension of its investments. On the other hand, employees will be monitored efficiently to ensure satisfactory service delivery. The challenge of addressing employees’ issues is dealt within the subsidiary levels. The nature of remuneration offered to employees depends on their contributions and position in the corporation. Initially, the managers are rewarded since they are responsible for overseeing departmental activities. On the other hand, employees receive attractive remuneration based on their contribution. The remuneration system consists of monetary and non-monetary benefits. The monetary benefits include salaries, commission and bonuses on the activities done. Non-monetary benefits consist of insurance covers, training programs and other additional benefits. This system of remuneration is attractive among the employees (Wilson Gilligan, 2005). As a result, the employees have high morale for service delivery due to employment security. However, the delivery of services has weaknesses at the lower level of management. Since employees at this level are either on contractual or permanent basis, it is hard to establish their real contribution. In addition, it is difficult to design a system that measures their real efforts due to the overlapping demands of services. As a result, the company’s management delegates such responsibilities to the operational managers. This could lead to interference of the actual expectations of the employees. Another crucial component of the company is marketing. Through designing of an appropriate marketing mix, the corporation’s management is able to influence the market of funeral services. The main product strategy adopted is enhancement of standards and variety of the services. Place strategies aim at providing unique services based on the geographical locations of consumers. In this case, the proximity of consumers to funeral homes has a great impact on the demand for service. Pri cing strategies are another crucial element of marketing. In this regard, the corporation differentiates it products to meet a wide variety of consumers. In addition, the corporation has incorporated market segmentation base on the social statuses of the consumers. Lastly, the promotion strategies are essential for the organization. In this case, the corporation combines advertising and public relations to influence its consumers (Shim Siegel, 2000). Regardless of the above marketing strategies, there are challenges in sourcing finance to achieve the desired goals. At times, substantial amounts of finance are invested on the strategies, but yield no returns. The nature of competition also in the industry interferes with the performance of the corporation. Based on the weaknesses experienced by the company, it is essential to develop an action plan to counter them. The ideal action would involve reengineering of its business processes. This involves creation of diverse and unique se rvices. In addition, it involves improvement of common services offered by the company. As such, it should be distinctive and qualitative. As a result, the weakness would be addressed in a series of phases that may take a period of three years. This implies that the corporation would portray a new set of policies and services offered to consumers (Woodhall Stuttard, 2006).). Financial analysis The financial aspect of the corporation is very important in evaluating its performance and position in the market. Through ratio analysis, one can identify the corporation trend. The ratios at the end of 2011 financial year include: Gross profit margin= Sales Revenue-Cost of Goods Sold Sales Revenue = 2,316,040,000 – 1,837,504,000 2,316,040,000 = 20.66 % Net profit margin = Net income Sales Revenue =146,232 2316040 = 6.31 % Return on Total assets= Net income Available to Common stockholders Total Assets = 144,903 9,327,812 = 1.55 % Return on stockholders’ Equity= Net income ava ilable to common stockholders Stockholders’ equity =144,903 222,956 =65 % Current ratio= Current Assets Current liabilities = 328,093 385608 = 0.85 Quick Ratio= Current Assets- Inventory Current Liabilities =328,093-25,513 385608 = 0.785 Inventory Turnover= Cost of Goods Sold Inventory = 1,837,504 25,513 =72.02 DSO =Accounts Receivable Total Sales/360 = 103,892 2,316,040/360 = 16.15 Debt-to-Assets Ratio = Total Debt Total Assets = 103,892 9,327,812 =0.011 Debt-to-Equity Ratio = Total Debt Total Equity =103,892 222956 = 0.47 Times-Covered Ratio =Profit Before Interest and Tax Total Interest Charges =362,699 133,782 = 2.71 Total Shareholder Returns =Stock Price (t + 1) Stock Price (t) + Sum of Annual Dividends per Share Stock Price (t) = 1(1+1)-1(1) +1 1(1) =200% Price-Earnings Ratio =Market Price per Share Earnings per Share =9.76 0.61 = 16 Market to Book Value =Market Price per Share Dividends per Share = 9.76 0.20 =48.8 Dividend Yield = Dividend per Share Market Price per Sh are = 0.20 9.76 = 0.0205 The financial ratios above indicate the performance and position of the corporation in the market. This analysis indicates that the liquidity of the company is significantly low. On the other hand, the assets held by the company are many. For the stakeholders, they benefit from the reception of annual dividends, which are consistent (SCI, 2011). Market recommendations The challenges facing the company need to be addressed. This involves the development of strategies that counter the problems, and increase future profitability. At the current period, the corporation offers funereal services to its consumers. This involves provision of funeral services such as cemetery and crematoria. As such, the corporation has to diversify the nature of its services. The incorporation should add services such as memorial services, insurance and obituaries. Moreover, the corporation should diversify its investments in other related industries. In this case, it is appropriate for the company to venture into the real estate industry because it has a large capital base. This will improve its performance in the security exchange market (Cadle et al., 2010). The corporate strategy has to be revised to comply with the changes in the industry. In this regard, the corporation has to alter most of its policies and initiatives in the marketing department. Since dynamism in technology offers better means of accessing consumers at lower costs, it is essential for the company to invest in this form of marketing. This reduces the operation costs. Consequently, the level of sales would increase. This is because a large consumer base will be achieved. Another critical element that the organization should reevaluate is the financial management. A strategy should be incorporate to enhance efficient utilization of resources in the organization. Through improvement of accountability and transparency, most of the corporation finance will be utilized appropriately. Similarl y, the finance will be directed to viable investments that will improve its profitability. Research and development is also a vital component of the corporation. This department should be utilized to establish new ventures and investments that are feasible. Some of the areas that should be researched on include services and products. With the improvement of their services and products, the company will be able to make large volume of sales (Hersey Blanchard, 2002). In addition, the services offered within the different funeral homes will be integrated. As a result, all needs of consumers will be addressed at their closest facility. Action plan 1stPhase (Two years) 2nd Phase (Third year and onwards) Functional strategies Thorough implementation of strategies already formulated to offer the company with the desired results. In this case, all its services will appropriately be delivered to the market, while offering services at affordable costs. This involves a serious campaign to overhaul the services offered by the company. In this regard, the company will add other services such as memorial services and obituaries for the customers. In addition, the previous services will be reengineered in a qualitative and quantitative perspective. Marketing The company would organize to conduct marketing on the region through means such as media advertising and public relations Over time, marketing strategies will change. Therefore, the company has to adopt the latest technological facilities to conduct promotion of its services and products. These methods include internet marketing and mobile marketing. Human resource management The organization has to realign its human resource structure. In this case, the management should portray a three-level structure consisting of top, middle and operational management. This will ensure efficiency in services delivery The corporation has to realign its management based on its objectives. In this regard, the management shou ld be decentralized,. As such, each subsidiary will has its own departments. In addition, the financial issues will be the only subject to be consolidated. Research and development This department has a cardinal role of ensuring that the organization survives in the industry. As a result, the company should utilize it to improve the nature and manner of delivering services to the consumers. When the services and products are ideal for consumers’ taste, it is necessary to upgrade them. This involves reengineering of varied types of services that can be offered to consumers. References Cadle, J., Paul, D., Yeates, D. (2010). Business analysis. Swindon: British Informatics Society. Dewhurst, R. F. (2002). Business cost-benefit analysis. London: McGraw-Hill. Freedman, E. (2007). Financial management. Mechanicsburg, Pa.: Pennsylvania Bar Institute. Graham, H. T., Bennett, R. (1998). Human resources management (9th ed.). London: Pitman. Hamel, G. (2007). The future of manage ment. Boston, Mass.: Harvard Business School Press. Heizer, J. H., Render, B. (2004). Principles of operations management (5th ed.). Upper Saddle River, N.J.: Pearson/Prentice Hall. Hersey, P., Blanchard, K. H. (2002). Management of organizational behavior: utilizing human resources (6 th ed.). Englewood Cliffs, N.J.: Prentice-Hall. Johri, A. (2010). Business analysis. Mumbai [India: Himalaya Pub. House. Mooradian, T. A., Matzler, K., Ring, L. J. (2012). Strategic marketing. Boston, MA: Pearson Prentice Hall. SCI. (2011). Annual report pursuant to section 13 and 15(d). Service Corporation International, 1(1), 1-150. Web. Shim, J. K., Siegel, J. G. (2000). Financial management (2nd ed.). Hauppauge, N.Y.: Barron’s. Terry, G. R. (2009). Principles of management (10 th ed.). Homewood, Ill.: R.D. Irwin. Williamson, D. (2004). Strategic management and business analysis. Amsterdam: Butterworth-Heineman. Wilson, R. M., Gilligan, C. (2005). Strategic marketing management planning , implementation and control (3rd ed.). Amsterdam: Elsevier/Butterworth- Heinemann. Woodhall, G., Stuttard, A. (2006). Financial management. Houndmills, Basingstoke, Hampshire: Macmillan. This case study on Service Corporation International was written and submitted by user Tamia K. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

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PMI analysis - Essay Example Another negative thing I learnt is that life is filled with things that try to reduce our success. E.g. economic recession, business competition and sickness. Trust and cooperation are the most important things that leaders use to make their employees feel sale. Unfortunately, these are feelings, and not everyone has them. Simon gives a story of captain Williams, who ran through bullets in an ambush to save lives. It is not often that we meet people who are willing to endanger their lives to save others. It is interesting also to note that great leaders are always willing to sacrifice the numbers to save the people. As much as they are concerned about making profit they are equally concerned about the people under their leadership. Great leaders can also make people safe, and this improves overall productivity within the organization. Trust and cooperation are very important aspects that every employee should possess. However, trust and cooperation are not instructions but rather feelings. It will take the actions of a great leader to make people under his leadership feel safe and in turn wins their trust and

Practicum nursing service administration 3 Essay

Practicum nursing service administration 3 - Essay Example The standards includes maintenance of ethical standards, enhancing education, evidence based practice and research, enhancing environmental health, communication, leadership, collaboration, resource utilization, professional practice evaluation and enhancing quality performance. The paper outlines a reflection of the above stipulated standards. The code of ethics for nurses acts as a guide ensuring that nurses carries out their responsibilities in a manner that is consistent with the quality and ethical obligations of the profession. These obligations are stipulated in American Nursing Association. The standards of professional performance by ANA describes the behavioral competency in the role of the profession in activities that commensurate with quality while providing care; education; and appraisal of performance among many others. It promotes nursing profession by advocating for high level or standard practices ensuring that the rights of nurses are catered for at the work place. Nurses have an obligation to integrate ethical conducts in the different facets of their practices. Nurses in the profession have a mandate to not only to establish and maintain professional therapeutic, patients and nurse relationship but also discharge health care in such a way that the patient’s dignity, autonomy and rights are uphel d. They are also required to make ethical decisions while at work; report cases that are incompetent and illegal; and maintain and ensure patients on confidentiality within the boundaries of regulations and legal requirements. It is a nurse’s responsibility of being accountable for their nursing practices and evaluating ideal and correct task delegation mechanisms. These tasks ought to be consistent with their duties to provide appropriate care for the patients as per the required standards. The ethical code of conduct also stipulates that each nurse has an obligation of upholding the safety and integrity of their patient. Moreover,

After the Revolutionary War Essay Example for Free

After the Revolutionary War Essay After the Revolutionary War, many Americans realized that the government established by the Articles of Confederation was not working. America needed a new form of government. It had to be strong enough to maintain national unity over a large geographic area, but not so strong as to become a tyranny. Unable to find an exact model in history to fit Americas unique situation, delegates met at Philadelphia in 1787 to create their own solution to the problem. Their creation was the United States Constitution. Before the Constitution could become the supreme law of the land, it had to be ratified or approved by at least nine of the thirteen states. When the delegates to the Philadelphia Convention signed the Constitution on September 17, 1787, they knew ratification would not be easy. Many people were bitterly opposed to the proposed new system of government. A public debate soon erupted in each of the states over whether the new Constitution should be accepted. More important, it was a crucial debate on the future of the United States. The Federalist Papers Nowhere was the furor over the proposed Constitution more intense than in New York. Within days after it was signed, the Constitution became the subject of widespread criticism in the New York newspapers. Many commentators charged that the Constitution diminished the rights Americans had won in the Revolution. Fearful that the cause for the Constitution might be lost in his home state, Alexander Hamilton devised a plan to write a series of letters or essays rebutting the critics. It is not surprising that Hamilton, a brilliant lawyer, came forward at this moment to defend the new Constitution. At Philadelphia, he was the only New Yorker to have signed the Constitution. The other New York delegates had angrily left the Convention convinced that the rights of the people were being abandoned. Hamilton himself was very much in favor of strengthening the central government. Hamilton’s Constitution would have called for a president elected for life with the power to appoint state governors. Hamilton soon backed away from these ideas, and decided that the Constitution, as written, was the best one possible. Hamilton published his first essay in the New York Independent Journal on October 27, 1787. He signed the articles with the Roman name Publius. (The use of pseudonyms by writers on public affairs was a common practice.) Hamilton soon recruited two others, James Madison and John Jay, to contribute essays to the series. They also used the pseudonym Publius. James Madison, sometimes called the Father of the Constitution, had played a major role during the Philadelphia Convention. As a delegate from Virginia, he participated actively in the debates. He also kept detailed notes of the proceedings and drafted much of the Constitution. Unlike Hamilton and Madison, John Jay of New York had not been a delegate to the Constitutional Convention. A judge and diplomat, he was serving as secretary of foreign affairs in the national government. Between October 1787 and August 1788, Publius wrote 85 essays in several New York newspapers. Hamilton wrote over 60 percent of these essays and helped with the writing of others. Madison probably wrote about a third of them with Jay composing the rest. The essays had an immediate impact on the ratification debate in New York and in the other states. The demand for reprints was so great that one New York newspaper publisher printed the essays together in two volumes entitled The Federalist, A Collection of Essays, written in favor of the New Constitution, By a Citizen of New York. By this time the identity of Publius, never a well-kept secret, was pretty well known. The Federalist, also called The Federalist Papers, has served two very different purposes in American history. The 85 essays succeeded by helping to persuade doubtful New Yorkers to ratify the Constitution. Today, The Federalist Papers helps us to more clearly understand what the writers of the Constitution had in mind when they drafted that amazing document 200 years ago.

Macbeth - Downfall Of Macbeth Essay -- essays research papers

We see in the play Macbeth that when the motivation to succeed in life becomes overpowering, other people may easily influence one and elements and one may decide on wrongful actions to achieve a goal. Some of the influences on Macbeth include the witches and the apparitions, Lady Macbeth, and lastly Macbeth's own insecurities and misguided attempts to control his future. The witches and their prophecies are the first major influence on Macbeth's actions. Macbeth seems happy and content with himself until the witches tell him he will be king. He begins immediately to consider murdering Duncan. "If good, why do I yield to that suggestion / Whose horrid image doth unfix my hair / And make my seated heart knock at my ribs, / Against the use of nature?" (I, iii. 144-147). Macbeth immediately writes Lady Macbeth. "'They met me in the day of success; and I / have learned by the perfectest report, they have more in / them than mortal knowledge." (I, v. 1-3). He obviously has great faith in the witches' words. Later on, the apparitions, called by the witches, influence Macbeth by making him believe he is invincible. "Rebellion's head, rise never, till the wood / Of Birnam rise, and our high-placed Macbeth / Shall live the lease of nature, pay his breath / To time, and mortal custom." (IV, i. 106-109). Lady Macbeth is a second major influence on Macbeth. As soon as Lady Macbeth learns of the witches' words from Macbeth's letter, we learn Macbeth is c...

Purity Steel Corporation

Harvard Business School 9-197-082 rP os t Rev. February 15, 2000 Purity Steel Corporation, 1995 op yo â€Å"I’m no expert in high finance,† said Larry Hoffman, manager of the Denver branch for the Warehouse Sales Division of Purity Steel Corporation, to Harold Higgins, general manager of the division, â€Å"so it didn't occur to me that I might be better off by leasing my new warehouse instead of owning it. But I was talking to Jack Dorenbush over in Omaha the other day and he said that he's getting a lot better return on the investment in his district because he's in a leased building.I'm sure that the incentive compensation plan you put in last year is fair, but I didn't know whether it adjusted automatically for the difference between owning and leasing and I just thought I'd raise the question. There's still time to try to find someone to take over my construction contract and then lease the building to me when it's finished, if you think that's what I ought to do. † Purity Steel Corporation was an integrated steel producer with annual sales of about $4. 5 billion in 1995. The Warehouse Sales Division was an autonomous unit that operated 21 field warehouses throughout the United States.Total sales of the division were approximately $225 million in 1995, of which roughly half represented steel products (rod, bar, wire, tube, sheet, and plate) purchased from Purity's Mill Products Division. The balance of the Warehouse Sales Division volume was copper, brass, and aluminum products purchased from large producers of those metals. The Warehouse Sales Division competed with other producer-affiliated and independent steel warehousing companies and purchased its steel requirements from the Mill Products Division at the same prices paid by outside purchasers.No tC Harold Higgins was appointed general manager of the Warehouse Sales Division in mid1994, after spending 12 years in the sales function with the Mill Products Division. Subject only to the approval of his annual profit plan and proposed capital expenditures by corporate headquarters, Higgins was given full authority for his division's operations, and was charged with the responsibility to â€Å"make the division grow, both in sales volume and in the rate of return on its investment. † Prior to his arrival at division headquarters in St.Louis, the Warehouse Sales Division had been operated in a centralized manner; all purchase orders had been issued by division headquarters, and most other operating decisions at any particular warehouse had required prior divisional approval. Higgins decided to decentralize the management of his division by making each branch (warehouse) manager responsible for the division's activities in his or her geographic area. In Higgins's opinion, one of the key features of his decentralization policy was an incentive compensation plan announced in late 1994 to become effective January 1, 1995.The description of the plan, as presente d to the branch managers, is reproduced in Exhibits 1, 2, and 3. Monthly operating statements had been prepared for each warehouse for many years; implementing the new plan Do Doctoral Candidate Antonio Davila and Professor Robert Simons prepared this updated case based on an earlier version. Case material of the Harvard Graduate School of Business Administration is prepared as a basis for class discussion and not to illustrate either effective or ineffective handling of administrative problems.Copyright  © 1997 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685 or write Harvard Business School Publishing, Boston, MA 02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 1 This docume nt is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013.Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 197-082 Purity Steel Corporation, 1995 rP os t required only the preparation of balance sheets for each warehouse. Two major asset categories, inventories and fixed assets (buildings and equipment), were easy to attribute to specific locations. Accounts receivable were collected directly at Purity's central accounting department, but an investment in receivables equal to 35 days' sales (the average for the Warehouse Sales Division) was charged to each warehouse.Finally, a small cash fund deposited in a local bank was recorded as an asset of each branch. No current or long-term liabilities were recognized in the balance sheets at the division or branch level. At the meeting in December 1994, when the new incentive compensation plan was presented to the branch managers, Higgins had said: tC op yo Howard Percy [division sales manager] and I have spent a lot of time during the last few months working out the details of this plan. Our objective was to devise a fair way to compensate those branch managers who do a superior job of improving the performance in their areas.First, we reviewed our salary structure and made a few adjustments so that branch managers do not have to apologize to their families for the regular pay check they bring home. Next, we worked out a simple growth incentive to recognize that one part of our job is simply to sell steel, although we didn't restrict it to steel alone. But more importantly, we've got to improve the profit performance of this division. We established 5% as the return-on-investment floor representing minimum performance eligible for a bonus.As you know, we don't even do that well for 1994, but our budget for next year anticipates 5% before taxes. Thus, in 1995 we expect about a third of the branches to be below 5%? and e arn no ROI bonus? while the other two-thirds will be the ones who really carry the weight. This plan will pay a bonus to all managers who help the division increase its average rate of return. We also decided on a sliding scale arrangement for those above 5%, trying to recognize that the manager who makes a 5% return on a $10 million investment is doing as good a job as one who makes a 10% return on only a half million dollars.Finally, we put a $50,000 limit on the ROI bonus because we felt that the bonus shouldn't exceed 50% of salary, but we can always make salary adjustments in those cases where the bonus plan doesn't seem to adequately compensate a branch manager for his or her performance. No After the telephone call from Larry Hoffman in May 1996, quoted in the opening paragraph, Harold Higgins called Howard Percy into his office and told him the question that Hoffman had raised. â€Å"We knew that we probably had some bugs to iron out of this system,† Percy responded. Let me review the Denver situation and we'll discuss it this afternoon. † At a meeting later that day, Percy summarized the problem for Higgins: Do As you know, Larry Hoffman is planning a big expansion at Denver. He's been limping along in an old multistory building with an inadequate variety of inventory, and his sales actually declined last year. About a year ago he worked up an RFE [request for expenditure] for a new warehouse which we approved here and sent forward. It was approved at corporate headquarters last fall, the contract was let, and it's to be completed by the end of this year.I pulled out one page of the RFE which summarizes the financial story [Exhibit 4]. Larry forecasts nearly a triple in his sales volume over the next eight years, and the project will pay out in about seven and a half years. Here [Exhibit 5] is a summary of the incentive compensation calculations for Denver that I worked up after I talked to you this morning. Larry had a very high ROI last year, and received one of the biggest bonuses we paid. Against that background, I next worked up a projection of what his bonus will be in 1997 assuming that he moves into his new facility at the end of the year.As you can see, 2 This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Purity Steel Corporation, 1995 197-082 rP os t his ROI will drop from 17. 3% to only 7. 2%, and even on the bigger investment his bonus in 1997 will go down substantially. Finally, I dug out the file on New Orleans where we're leasing the new warehouse that was completed a few months ago.Our lease there is a so-called operating lease, which means that we pay the insurance, taxes, and maintenance just as if we owned it. The lease runs for 20 years with renewal options at reduced rates for two additional 10-year periods. Assuming that we could get a similar deal for Denver, and adjusting for the difference in the cost of the land and building at the two locations, our lease payments at Denver during the first 20 years would be just under $250,000 per year. Pushing that through the bonus formula for Denver's projected 1997 operations shows an ROI of 7. %, but Larry's bonus would be about 15% less than if he was in an owned building. op yo â€Å"On balance, therefore,† Percy concluded, â€Å"there's not a very big difference in the bonus payment as between owning and leasing, but in either event Larry will be taking a substantial cut in his incentive compensation. † As the discussion continued, Larry Hoffman and Howard Percy revisited the formula for ROI: Net Income Return-on-investment = Investment in Operating Assets Net Income Sales x Sales Investment in Operating Assets = ( Return on Sales) x (Asset Turnover) No tC = DoBoth wondered whether the proposed bonus plan needed further revision or clarification. 3 This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 197-082 Purity Steel Corporation, 1995 I. Branch Managers’ Compensation Plan, Warehouse Sales Division Objectives rP os t Exhibit 1 The Warehouse Sales Division has three major objectives: A. To operate the Division and its branches at a profit. B. To utilize efficiently the assets of the Division. C. To grow.This compensation plan is a combination of base salary and incentive earnings. Incentive earnings will be paid to those managers who contribute to the achievement of these objectives and in proportion to their individual performance. op yo II. Compensation Plan Components There are three components to this plan: A. Base Salary Base salary ranges are determined for the most part on dollar sales volume of the district(s) in the prior year. The higher the sales volume, the higher range to which the manager becomes eligible. The profitability of dollar sales or increases in dollar sales is an important consideration.Actual salaries will be established by the General Manager, Warehouse Sales Division, and the salary ranges will be reviewed periodically in order to keep this Division competitive with companies similar to ours. tC B. Growth Incentive If the district earns a net profit before federal income tax for the calendar year, the manager will earn $1,750 for every $500,000 of increased sales over the prior year. Proportionate amounts will be paid for greater or lesser growth. C. Return-on-Investment Incentive No In this feature of the plan, incentive will be paid in relation to the size of investment and the return-on-investment.The manager will be paid in direct proportion to his effective use of assets placed at his disposal. The main emphasis of this portion of the plan is on increasing the return at any level of investment, hi gh or low. Do III. Limitations on Return-on-Investment Incentive A. No incentive will be paid to a manager whose branch earns less than 5% return-oninvestment before federal taxes. B. No increase in incentive payment will be made for performance in excess of 20% return-on-investment before federal taxes. C. No payment will be made in excess of $50,000 regardless of performance. 4This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. 197-082 Exhibit 1 (continued) IV. Calculations on Return-on-Investment Incentive rP os t Purity Steel Corporation, 1995 Exhibit 2 is a graphic presentation of this portion of the incentive. Since all possible levels of investment and return-on-investment cannot be detailed on the chart, exact incentive figures cannot be determined. However, a rough estimate can be made by: A.Finding the approx imate level of investment on the horizontal scale. B. Drawing a line vertically from that point to the approximate return-on-investment percent. op yo C. Drawing a line horizontally from that point to the vertical scale which indicates the approximate incentive payment. The exact amount of incentive can be determined from Exhibit 3 by the following procedure and example. Example: Investment: ROI: Step 1. $8,263,750 7. 3% Subtract 500,000 from the last six digits of investment figures if they are above 500,000. tC EXAMPLE: 263,750 is below 500,000; nothing is subtracted.Step 2. Divide the number from step 1 by 500,000. The result is a percentage. EXAMPLE: 263,750/ 500,000 = . 5275 No Step 3. Do Step 4. In the 1% Column in Exhibit 3, take the difference between the next highest investment and next lowest investment. EXAMPLE: Investment 1% $8,000,000 $2,100 Difference $50 $8,500,000 $2,150 Multiply the result of Step 3 by the result of Step 2 and add to the 1% Column figure for the nex t lowest investment. EXAMPLE: $50 x . 5275 = $26. 37 + $2,100 = $2,126. 37 Step 5. Multiply the result of Step 4 by the actual ROI%. EXAMPLE: $2,126. 37 x 7. = $15,522. 54 Incentive Payment 5 This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Purity Steel Corporation, 1995 Exhibit 2 Incentive Payments at Various ROI Percentages 50 20% 45 40 15% 35 30 Series1 25 10% 20 15 10 5 0 0. 5 1. 5 2. 5 3. 5 op yo Incentive Payment ($ thousands) rP os t 197-082 4. 5 5. 5 6. 5 7. 5 8. 5 Series2 Series3 Series4 5% 9. 5 10. 5 11. 5 12. 5 13. 5 14. 5 Do No tC Investment ($ millions) This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. Purity Steel Corporation, 1995 Ince ntive Payments at Various Investments and ROI Percentages Investment 5% 10%No incentive will be paid for less than 5% ROI. 7 This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860. No (24) Payback period 300,000 2,612,500 1,059,650 100,000 153 Add back depreciation and relocationAnnual return of funds $ 7. 3 years 4,072,150 5,534,549 96 (177) Less 35% tax Net income $ (220) (53) (273) Less depreciation Total return over 8 years (in dollars) Capital expenditures required (in dollars): Land Building Equipment Relocation expenseForecast Additional Sales, Expenses, and After-Tax Profits Due to New Facility (doll ars in thousands) Gross profit dollars Service income Total income Less expenses excluding depreciation Sales dollars Exhibit 4 Do Purity Steel Corporation, 1995 Return-on-investment and Incentive Compensation (in dollars) rP os t Exhibit 5 197-082 Denver Branch 1997 Projected Total Warehouse Sales Division 1995 Investment at Year-end Land $ Buildings (net of depreciation) 5,144,500 $ 13,950,500 Equipment (net of depreciation) 124,500 $ 300,000 $ – 1,010,425 1,010,425 481,000 3,879,385 1,010,425 50,000 1,382,500 ,568,960 32,000 21,817,000 Accounts receivable Building 50,000 50,000 op yo Subtotal Leased Building 324,500 2,722,000 Cash fund Owned Actual 1995 Actual – Total year-end investment Investment at start of year 22,517,500 Less: depreciation Less: lease payments Net pre-tax profit 3,466,250 4,904,500 8,782,135 5,913,175 5,263,500 8,395,650 5,483,150 100,404,000 5,084,000 8,588,895 5,698,150 4,147,310 917,870 710,000 710,000 (40,000) (92,765) (49,225) (648,705) (4 20,565) $ tC Return on investment 1,386,500 3,466,250 99,795,500 Profit before depreciation & taxes 1,386,500 3,132,000 101,012,500Average investment during year 1,241,500 55,295,500 Inventories 3,078,040 – $ 3. 07% 877,870 $ 17. 27% (243,200) 617,235 $ 417,575 7. 19% 7. 33% Incentive Compensation Sales volume increase (decrease) $ Bonus @ $1,750 per $500,000 ROI bonus: $ – 1,565,000 $ 1,565,000 8,500,000 5,500,000 2,150 1,810 60 Difference to next base 5,478 1,750 Value for 1% column, Exhibit 3 5,478 5,000,000 Base investment No (870,000) 50 65 25. 76 Interpolated portion 10. 08 8. 89 Total value per percentage point 1,760 2,159 1,836 30,392 15,515 13,453 ROI bonus Total incentive compensation $ 30,392 $ 20,993 $ 18,931Assumptions used for 1997 projections at Denver: Old facility and equipment sold at the end of 1996, proceeds remitted to corporate headquarters. Depreciation on new facilities in 1997 is $43,540 (60 years, straight line) and $49,225 on equipment (vario us lives, straight line). Year-end investment in receivables and inventory will approximate 1995 relationship: receivables at 10% of annual sales, inventories at 25% of annual sales. Average total investment assumes that new fixed assets are acquired on December 31, 1996, and that other assets at that date are the same as at the end of 1995.Profit taken from RFE (Exhibit 4) as $995,000 less $185,000 first-year decline, less $100,000 relocation expense. Additional mill profit of $65,000 does not reflect on divisional books and was used only at corporate headquarters for capital expenditures evaluation purposes. Do 1. 2. 3. 4. 5. 9 This document is authorized for use only by Corrado Cuccurullo at Second University of Naples until October 2013. Copying or posting is an infringement of copyright. [email  protected] harvard. edu or 617. 783. 7860.