Small bussines Essay Example | Topics and Well Written Essays - 500 words

Small bussines - Essay Example As can be seen from Appendix A, the business will have losses for the first two years but beginning in the third year profitability will become positive and the following years thereafter. However this paper will report only the first three years. The higher expenses than revenues in the first two years are understandable as the business is just starting. Sales revenues will expand over time with higher sales volume into new locations as the branded products of the business become known. The decreasing expenses starting after two years would come as the business take less expensive locations. This would result to increasing gross monthly margin overtime as can be seen in Appendix B. Increasing sales is observable for the next three year period and such behavior should indicate growth of the business for the next three years. The greater the revenues the higher would be the changes for better profitability after deducting the expense (Bernstein, 1993; Droms, 1990). The profitability of the business is obvious the third year and as reflected in the positive net profit margin of 16.7% after having negative rates for the past two years because of the losses. See Appendix C. Profitability essentially means higher revenues than expenses which would mean that the business would naturally incur cost or expenses in running the business but the same should generate higher revenues in exchange of the expenses to indicate profitability of the business. The profit generated by the business is not enough to assure that business will prosper. The business must be able to pay its maturing obligations on time like the salaries of employees, payment for goods and services to supplies, regular bills for electricity, telephone and other utilities. In other words, it must have sufficient working capital or excess of current assets over its current liabilities at one point in time which can be measure also by liquidity ratios

Company Assignment Example | Topics and Well Written Essays - 500 words

Company - Assignment Example The company operates in countries that average 37 and employs 28,400 workers directly as of mid-2013. 65% of these are in Europe, 26% is based in Asia, while 95 is based in the Americas (Düblin 8). Most employees in Europe work in Germany, France, and Switzerland. Richemont reported revenues of â‚ ¬10.150 billion in 2013, which was up from â‚ ¬8.868 billion the previous year (Düblin 10). Some strengths of the company include its high position of 6th in the Swiss Market Index, being the 2nd largest luxury goods company, and its large employee base, while it also encompasses several world-renown luxury brands like Piaget and Cartier among others. Its biggest weakness is that it has limited presence in emerging economies. Richemont’s HR brand is one of the most respected in the world, especially with regards to its highly trained staff, highly competitive remuneration packages, and its family culture. The main responsibilities of their group HR function are to develop processes, establish policies, and offer strategic direction to constituent brands’ HR functions with regards to best practices in HR management (Düblin 22). The main clients for the group HR are its brand HR teams. The HR’s plans, strategies, and direction were influenced by the 2009 financial crisis, especially with regards to restrictions on recruitment. This led them to focus on effectiveness and quality, while also shifting their focus from an approach solely based on skills to one also based on personality with regards to ambition, attitude, willingness to learn, and ability to learn (Düblin 23). This was to ensure that employees could fit into the Richemont family culture. Fitting employees into this culture also requires that Richemont find a balance between locals and expats for its overseas offices. This also ensures that their HR function embraces diversity in their work culture. This fit into