Tag: Company

  • A case study of CPA audit failures in listed companies

    A case study of CPA audit failures in listed companies

    Review of the financial fraud case of Wanfu Biotechnology: A case study of CPA audit failures in listed companies – The main business of Wanfu Shengke (Hunan) Agricultural Development Co., Ltd. is the research and development, production, and sales of rice intensive processing products. Discussion on Impact of Big Data Analysis on CPA Audit.

    Here are the articles to explain, Discussion on A case study of CPA audit failures in listed companies!

    The company stood successfully listed on the Growth Enterprise Market in 2011. But it stood exposed to a financial fraud scandal in just one year. In 2012, when the CSRC inspected the company. It found that the prepaid account balance in the company’s financial statement data was very high. Which stood suspected financial fraud. Therefore, the CSRC decided to file a case for inspection in September, and the exchange suspends trading of the company’s stock for one month. Later, Wanfu Shengke admitted to financial fraud and temporarily suspended trading for the second time on May 16, 2013.

    Analysis of the fraudulent methods of Wanfu Biotechnology

    “One-stop” fraud mode, strong systematic

    Wanfu Shengke made virtual purchases, production, and sales, and forged corresponding credentials. The non-real-money fraud mode adopts by the post-listing financial fraud. A huge amount of prepaid accounts existed fabricated. The “one-stop” fraud process is to first transfer the funds in one’s account to scattered personal accounts using prepayment, which is ostensibly the prepayment for the purchase of grain, and then the fictitious income, and pass the money in these personal accounts through the company. The sales revenue stands transferred back to the company’s account. And the free funds complete the extracorporeal circulation to achieve the purpose of inflating sales revenue and increasing profits. A series of pipelined frauds are enough to reflect its systematic fraud.

    Fictitious cash flow, strong concealment

    Its free funds change ways in cardiopulmonary bypass. It stands shown as a prepayment of a large amount of money. Which stands divided into several pieces of funds when the payment stands returned to avoid the attention of the auditors. At the same time, to avoid inconsistency between personal and corporate accounts, Wanfu Biotechnology also took the risk of smuggling the business seals of several banks and forging bank receipts. Investigators also spent a lot of time checking bank receipts and found fake bank receipts. This shows that the fraud exists hidden and realistic, and it is relatively difficult to find the problem directly.

    Adopting the cost backward calculation system, the overall balance of the financial statements

    According to the principle of income and cost ratio, Wanfu Biotechnology adopts the cost-back calculation system. The financial staff reversely calculates the company’s cost according to the fictitious income to achieve a balance between production and sales. Not only that, many of Wanfu Biotechnology’s businesses are true and false. True numbers also have false numbers. And based solely on the financial statements calculated backward. It is impossible to see the tricks and find out the problem of fraud.

    Reasons and faults in the case study of CPA audit failures

    In addition to Wanfu Shengke’s fraudulent methods, certified public accountants also have many mistakes in the audit business. Such as the following:

    The analysis program is not in place

    First of all, as a rice processing enterprise. Wanfu Biotechnology has an abnormally high gross profit margin and low inventory turnover rate. In the analysis of the upstream and downstream industry chains. It can be found that the upstream purchase price increases. While the downstream product sales price decreases. , the gross profit margin is very stable strangely.

    Sponsors and accountants may fail to find abnormal gross profit margins. And can easily conclude that the company’s business is normal and gross profit margins are no problem; not only that. Auditors also did not maintain proper professional prudence for the abnormally high prepaid accounts and gave due consideration. Some are concerned, see through the lies of their raw material supply, and conduct further audits on the above anomalies. Thereby identifying and assessing the risk of material misstatement.

    Lack of confirmation and supervision procedures

    Auditors must implement corresponding procedures based on the principle of relevance, clarify work requirements, and ensure the quality of practice. However, later investigations found that Zhonglei and its certified public accountants did not make any judgments about the bank deposits and account receivable of Wanfu Biotechnology at the end of 2008 and 2009.

    Correspondence to the balance of the payment was carried out, and the corresponding alternative audit procedures were not implemented. Due to the lack of bank deposit confirmation and accounts receivable confirmation procedures, the certified public accountants contacted by Zhonglei failed to detect Wanfu Shengke’s fraud and completed the fact of fictitious income through the extracorporeal circulation of its funds.

    Even in the implementation of the confirmation procedure. The firm did not perform well and did not control the implementation process of the confirmation. Some of the replies even had the signature and seal of the person who was not asked to inquire about the letter. The above-mentioned procedural defects and carelessness were the important reasons for the failure of the audit.

    There is no “ground gas”, and the verification of the bank’s running water is ignored

    The certified public accountant failed to start with the details, especially the original documents. Such as bank receipts and other original documents to find the issuer’s financial abnormality. Many companies’ fraudulent methods are not flawless. It was the auditors who were careless, ignored some details, and passed over the subtleties. The bank balance deposits and bank receipts with high authenticity were passed over, allowing them to forge.

    Thoughts and Suggestions for the case study of CPA audit failures

    Design, implement, and maintain necessary internal controls

    The realization of the “one-stop” fraud reflects the excessive concentration of power in Chinese enterprises. Gong Yongfu and his wife Yang Ronghua hold 80.38% of Wanfu Biotechnology, and the equity is highly concentrated. It is like a mom-and-pop shop and lacks perfect internal control. Defects in the company’s governance structure are a major driving force behind the realization of Wanfu Shengke’s financial fraud. Therefore, enterprises should design and implement necessary internal control, strengthen corporate governance, and change the situation of excessive concentration of power.

    Certified public accountants should abide by and strengthen professional ethics

    As far as auditing business is concerned, a certified public accountant must be independent of the audited entity and be in the public interest. A certified public accountant with good professional ethics can abide by professional ethics requirements, maintain corresponding professional doubts, and reasonably use professional judgments.

    In Wanfu Shengke’s audit, the firm’s upstream and downstream verification found signs of false transactions, but did not conduct further audits, but issued an unqualified opinion, which is obviously against professional ethics. Secondly, auditors should not blindly listen to the information provided by the audited enterprises but should conduct audits in strict accordance with the procedures and collect evidence from different information channels, to effectively prevent and reduce the risks brought by the audit.

    Strengthen supervision and management of intermediary agencies and local governments

    Because intermediaries are subject to the business entrusting party, to continue to receive high remuneration from the entrusting party, many intermediary agencies have lost their independence, and illegal operations have contributed to financial fraud and harmed the interests of investors and the public. Therefore, the China Securities Regulatory Commission should improve relevant laws and regulations, introduce and improve the corresponding civil compensation system, clarify rights and responsibilities, and increase the cost of violations.

    All sectors of society should also work with relevant government departments to build a reputation mechanism for intermediaries. At the same time, overcome the local government’s use of the number and “performance” of locally listed companies as its “performance”, and increase the punishment of government officials for illegal “green light” behaviors of listed companies.

    A case study of CPA audit failures in listed companies Image
    A case study of CPA audit failures in listed companies; Photo by Chris Ensminger on Unsplash.
  • The International Company in UAE and the Agent

    The International Company in UAE and the Agent

    Any International Company has to appoint a selling agent, purchase the commodities in UAE. This agent is like representing an international company in the UAE on behalf of the company. He is responsible for the profits, sales, discounts, losses, etc. As we all know that Law is federal in UAE therefore the Agency Law UAE is also federal and applicable in all the Emirates of UAE. Article 2 says that the agent should be a UAE National. It can also be a company that owns by an Emirati National. Ownership must be One Hundred Percent. Article 4 says that both parties need to have an agreement with each other. There is no acknowledgment of any deal like this if both parties are not bound by any agreement.

    Here is the article to explain, The International Company in UAE and the Agent!

    CAL or Commercial Agency Laws also restrict the other importers and exporters not to indulge in the import and export of goods which only allow a few companies and enterprises. In case of any dispute, the committee which makes to resolve the CAL disputes is responsible to resolve the disputes. Commercial Agency Arrangement has to register with the Ministry of Economy. The Local Agent should be and he has to be a UAE Citizen or a private business with full local citizen ownership.

    We will not throw light on the types but we can name them here and those are; Commercial Agency Agreements and the Distribution Agreements. We would like to give a reference here from the CAL Articles and that is Article 3 which says that “No Person shall engage in the business of commercial agencies in the UAE unless his name has been recorded in the register of commercial agents maintained in the ministry”.

    Types of Companies:

    UAE offers you to open companies in a few formats like Sole Proprietorship, LLC, and Free Zone. Free Zone companies allow you to get 100% ownership. Sole Proprietorship is also 100% ownership but this facility is only for UAE Nationals or GCC Nationals. The owner must have to qualify and have professional education and the qualification whatever require for opening a sole proprietor company and to offer particular services.

    This format can have more than one branch while operating. Limitations regarding managers should keep in mind. The first and start approvals have to obtain from Dubai Economic Department. Patent rights, office, etc. are the mandatory things to offer. LLC and Free Zone companies are not going to discuss here. It can check with quality Lawyers in Dubai by Emirati Law Firms.

    Business Freedom and Security:

    Dubai and the entire UAE government allow the people complete freedom and security to invest in the UAE. UAE ranks 11th position among the world for having a business or opening an office of your international company business. Free Zones will provide you 100% ownership and you can operate here as a sole owner. UAE is the most protected place for women to live. A most protected place to raise the children. Law and order are quite well so investments of people protect. If a person (reader) is concerned about freedom and security then he can confidently come to Dubai.

    Support by Law Firms:

    Yes, the answer is yes. Support from Law Firms require. The company set up, logo and patent registrations, Labor and Employment agreement drafting, internal agreements and offer letter drafting. These Law Firms can also help to establish the hiring process, staffing, recruitment, establishing the HR, or establishing the internal legal department if it is a requirement of a company that is quite great in its operations.

    Business Growth:

    Yes, business growth is greater in size. Investment in Dubai can let you have multiple times more than your investment due to the opportunity available in the market. Business growth is not risky in Dubai and UAE. 2008 was the recession, a global recession. Dubai also got hit due to its global recession. But the business survives instead, doing a good business during the recession, post-recession even after or during the covid-19.

    The reason is that the Economic pillars of the region are based on a well-defined system. If anybody breaches the Law, then he is accountable. Even if you are a national then you cannot escape from the law. Business growth in Dubai and the rest of the UAE is amazing. Businessmen across the world can come and enjoy the business expansions in Dubai and multiply their investments. 

    Civil Cases:

    Cheque Bounced Cases treat under Civil Law. Civil Law allows people to get their money back, with legal expense, legal rewards. For the compensation, a separate case can fill. Criminal Cases can only be for arranging the punishment by the Law, and civil litigation is for collecting the liquid cash or recovery of assets lost before. Civil Cases and Commercial cases though similar but different types of cases. Both cases are dealt with in the same Dubai Court (For Dubai) and dealt with by the same judges called Qazi, in the local language. We must differentiate that it is quite different indeed.

    For Civil Cases, the lawyers which hire, call different names. They know as Civil Lawyers, Commercial Lawyers, Business Lawyers, Corporate Lawyers, etc. Emirati Civil Lawyers are the Advocates who can hire only for a “Court Appearance” and full civil case representation in all the courts. Keep in mind if the claim amount is greater than 500000 AED then the third court also known as cassation court or high court can also be approached.

    Whether this is a company setup, business management, resolving the dispute, or giving advice, lawyers are the need to do business very peacefully. Business always needs legal support and therefore the big business companies always open an inside legal department or sign the full-time Retainership with the companies. Dubai and UAE are good places to live and do business. People can come here confidently without any fear or hesitation.

    The International Company in UAE and the Agent Image
    The International Company in UAE and the Agent; Image by Mohamed Hassan from Pixabay.
  • How to Find the Best Software Development Company

    How to Find the Best Software Development Company

    Best Software Development Company, when you are a beginner choosing is a tough job? Today, we are surrounded by technology. We use it for work, leisure, and everything in between. Software development companies develop apps that help us do our everyday tasks more easily. The best custom software development company will create an app that is custom-made to suit your needs.

    Here is the article to explain, How to Find the Best Software Development Company? When you are a Beginner!

    There are so many to choose from and all of them advertise their services like they’re the best thing since sliced bread. To make it worse, most of these companies develop apps for dating sites; which means that you’ll be stuck with an app that’s similar to your competition. Don’t let this happen. In this blog post, we will discuss what criteria you should use when searching for a good software development company; and, how to avoid getting trick into hiring one that isn’t worth your time or money.

    Analyze Your Requirement

    The first step is to develop a list of your desired features and requirements. Decide what kind of app you want to develop. Do you want to develop a dating app like Tinder, a productivity app, or a social media app?

    Create a list of the features you need your software to have. Do you want it to support push notifications and in-app purchases, for example? What type of analytics tools do you want to be built into it? This will ensure that you are clear about what needs it should meet so there won’t be any confusion later down the line when talking with developers or evaluating bids from different companies.

    Get Referral from Trusted People

    Getting referrals from family, friends, and acquaintances is the simplest way to find a custom software development company that will develop an app for you. This won’t guarantee success but it’s certainly worth considering.

    If someone has had a positive experience with one of these companies in the past then they are likely to have strong opinions about them. Ask them if they would be willing to give their referral out; so, that you can contact this person directly or speak up during your meeting with the developer (if there is one). These testimonials often come with insider knowledge; such, as what type of services the other business provides and whether or not project timelines were met on time; which could be helpful when vetting potential developers.

    LinkedIn has a great feature that lets you find companies nearby. You simply enter your location and allow LinkedIn to give suggestions, of which one will be the best software development company for you.

    This is an excellent way to ensure that you get a match with someone who lives in or near your area; so, there won’t be any issues transporting materials back and forth when they develop an app for you. It also ensures that they are within driving distance if they need on-site at some point during the project process; which could come in handy down the line should technical difficulties arise when developing apps for Android devices, for example.

    Check The Companys’ Portfolio 

    The portfolio of a company depicts what they offer. The best custom software development company will have an extensive portfolio of apps that showcase; their skills and the work they’ve done for other businesses; which is something to consider when looking at possible developers.

    This should also serve as your first indication on whether or not this developer has any experience with your desired features since these projects likely include in that portfolio; so it’s worth taking a closer look at them before meeting up with someone; who doesn’t specialize in those areas (or if there isn’t anyone available).

    Ask Questions Confidently

    Ask questions before writing a contract with any custom software development company to develop your app. These meetings design to give you information about how they develop apps; how long they take to develop them, and what their prices are. They should also be able to answer any questions about the features you need in your app; so that there will be no surprises down the line when it comes time for development.

    One thing worth asking is whether or not they have a clear timeline on hand of previous projects; because, this can help determine if their timelines for developing an app match up with yours. This might seem like a small detail but it’s important enough that many businesses want information on these types of details before proceeding with hiring someone since developers often miss deadlines; which could result in more costs than planned or missed opportunities; if the project doesn’t finish as soon as possible.

    Check the Software Development Technology

    It’s important to make sure the company you’re considering is developing apps in your desired software development technology. Some companies develop applications for both iOS and Android but others specialize in one or the other. So, it’s worth knowing what they do before getting started with them; if you want a certain platform developed quicker than another.

    Also, check the software development language. Some apps develop using Swift which is iOS-only while other apps use Java, Android SDK, and Xcode. Software development technology affects the quality of the mobile app, so it’s important to consider this upfront.

    Check Security System of the Company

    The best custom software development company should have a secure, encrypted network for all its data. The security system of software developing companies is among the most significant factors to consider when choosing a business.

    A company should have industry-standard security that includes data encryption, real-time monitoring, firewalls, and 24/hour network surveillance to ensure customer information is safe at all times. They should also develop apps with the latest security measures, like two-factor authentication and multi-factor access to accounts for developers. A custom software development company should also insure or license by third-party inspectors such as McAfee Secure.

    Review Their Pricing Structure

    The best custom software development company will have transparent pricing structures. It’s worth looking into whether or not they have a flat fee for app development; which is often the most cost-effective option because it eliminates uncertainty about how much will charge at various stages of development. Pricing structures of software developing companies vary greatly and depend on numerous factors, like the features the app will have.

    The best custom software development company should be able to provide you with an estimate on how much it would cost for them to develop your desired features. Be sure to make note of any hidden fees associated with their service; which can include things like upgrades, maintenance, support agreements, and customization requests. This might seem insignificant at first, but this type of item can add to the final price tag in ways that weren’t anticipated by some who don’t read all about what’s included before hiring someone to develop their app.

    How to Find the Best Software Development Company Image
    How to Find the Best Software Development Company; Photo by Christina @ wocintechchat.com on Unsplash.
  • How to Start a Property Management Company? Explain

    How to Start a Property Management Company? Explain

    Start a Property Management Company: Property managers or administrators are employed to deal with the activities, support, and organization of property rentals for a proprietor. Their work, among numerous different errands, incorporates advertising rentals and discovering leaseholders, guaranteeing rental rates are serious while covering duties and overhead, gathering rent, and agreeing with rental laws. Also, Their precise obligations will change dependent on the sort of property being dealt with, the sum they are getting paid, and the details of the management contract. There are some significant jobs a property supervisor can take on to help investment property proprietors.

    Here is the article, How to Start a Property Management Company? Explain and Discuss their Meaning, Definition, Need, Importance, and Functions.

    What does mean Property Management? Meaning and Definition. Property management is the training by which an outsider is given the duty of keeping a home’s the norm and mollifying its inhabitants. Also, Property directors are, along these lines, customarily recruited by investment property proprietors to regulate the day-by-day tasks of their land resources and manage any inquiries or concerns the inhabitants may have. On the occasion the property is empty, it’s the property supervisor’s responsibility to make sure the house is leased. As its name recommends, property management deals with each part of a rental home, from promoting space and marking leases to gathering rent and calling for fixes. Scarcely any procedures, so far as that is concerned, are more valuable for a rental portfolio than recruiting an outsider property administrator.

    Why we Need a Property Management Company?

    Picking whether to utilize property management organizations is a hard choice for some land financial backers. Some wouldn’t fantasy about putting resources into the land without a property management firm set up before finalizing an individual negotiation. Others, nonetheless, the battle to break liberated from the “DIY” mentality that keeps them from achieving more. Incidentally, just something single is sure: utilizing a property management organization isn’t pretty much as evident as I would have gotten a kick out of the chance to accept. If for that alone, I have persuaded the advantages of utilizing a property management organization far exceed the negatives.

    Any reasonable person would agree the contention originates from the expense one should assimilate to work with a property chief, however, I stray. The expense isn’t such a lot of a negative, but instead a venture. While it does, indeed, cost cash to recruit an outsider director, I can guarantee you it’s definitely justified even despite the cost. Also, their inclusion could undoubtedly expand the odds of developing your primary concern. On the off chance that that is adequately not, here is a portion of the significant assignments a decent property management organization will add to your rental portfolio.

    Importance or Benefits of having a Property Management Company:

    Claiming an investment property can be an incredible wellspring of extra pay. Be that as it may, it additionally accompanies the additional duties of property management, including upkeep, fixes, and promoting. In case no doubt about it “do I need a property administrator?” — consider these eight advantages of utilizing a property management organization. A property chief will:

    Screen out issue inhabitants:

    Perhaps the greatest advantage of property management is that the property supervisor will deal with inhabitant screening. Experienced property administrators see hundreds (or thousands) of uses, so their prepared eyes are bound to see potential warnings while evaluating a candidate’s desk work. They’re rapidly ready to spot great occupant characteristics, for example, paying rent on schedule, dealing with the property, and that’s only the tip of the iceberg. Also, Allowing them to deal with the inhabitant screening cycle can improve your odds of handling a dependable leaseholder.

    Go about as the purpose of contact for inhabitant concerns:

    If something breaks at your property, it’s not generally advantageous or conceivable to roll over to the unit to investigate it yourself (particularly if it’s in another town or state). A property chief can address issues at the entire hours of the day and mastermind a specialist organization to fix or supplant the thing. Or on the other hand, if you have an occupant who consistently appears to have a grumbling — be it the boisterous neighbors or the canine who assuages itself on the front grass — you can inhale simply realizing that the property supervisor is the purpose of contact for those kinds of calls.

    Market your rental:

    Property supervisors gift at rental advertising, including composing rental advertisements, taking great photographs, and facilitating open houses. They likewise have nearby land information and will actually want to help you set a serious lease cost. Recruiting a property supervisor with promoting experience can help fill your property sooner and lessen the time it sits empty. If you intend to showcase your property yourself, the property Rental Manager offers an issue-free approach to list your rental on various high-traffic sites.

    Abatement occupant turnover:

    Great property management organizations realize how to keep their tenants cheerful. They are responsive and accessible, and they deal with issues when they emerge. Upbeat leaseholders are additionally more averse to search for somewhere else to live and more willing to acknowledge sensible lease increments. Of occupants who decide to remain in their present rent, half think their house is a decent incentive at the cost and 40% say they love the spot they rent.

    Guarantee lease pay on schedule:

    Since property management organizations deduct their charges from the month-to-month lease, they persuade to keep those installments streaming in. Steady lease assortment is vital to getting rent installments on schedule, and utilizing a property management organization will help authorize rent strategies if installments aren’t gotten. On the off chance that occupants are reliably neglecting to pay their lease on schedule (or by any stretch of the imagination), the property director will realize how to manage the circumstance, including giving an expulsion notice if fundamental. Also, Installment assortment can be a typical issue — the regular leaseholder burns through 29% of their pay on a lease; and, a huge portion of rental families are one huge cost away from being not able to pay.

    Stay away from expected legitimate issues:

    Property directors comprehend landowner occupant laws and reasonable lodging laws. Which can assist you with keeping away from possible claims and save time, cash, and energy over the long haul. Also, They will likewise commonly deal with any legal counselor expenses related to removals or property harm issues. In case you’re not open to taking care of things like expulsions, marking and ending leases, and dealing with lease and security stores. You may require property management organization skills.

    Get a good deal on support and fix costs:

    Utilizing a property management organization may likewise accompany limits for support administrations. If the property directors work with a customary specialist co-op or utilize an in-house upkeep staff. They can perform standard investigations and discover issues before they transform into more pressing issues. Which will decrease the quantity of crisis fix bills.

    Decrease your rental cerebral pains:

    On the off chance that another person is taking care of the everyday management of your investment property and inhabitants. You’ll have fewer entanglements and responsibilities to stress over. On the off chance that additional time and less pressure are vital to your personal satisfaction. Utilizing a property management organization can be an extraordinary resource.

    These are the advantages of property management. Putting resources into an investment property can add to your month to month income and assemble long haul riches. Yet, everyday property management isn’t for everybody. If you simply need extra pay from the lease and don’t have any desire to be answerable for the subtleties of your rental speculation. Consider all the property management benefits that you’ll get for a level of your rental payments.

    What the Functions of a Property Management Company?

    At the point when you have speculation or investment property. Employing a property management organization to deal with your resources is now and again in a way that is better than overseeing everything yourself, also think How to Start the company. Particularly on the off chance that you have more than one property.

    Here are a portion of the duties and capacity of property management organizations:

    Communication or Correspondence:

    The best resource management obligation is correspondence. It is critical to discuss successfully with occupants, proprietors, and providers. Ensure everybody on the same wavelength knows about what should finish.

    Reports:

    It is essential to expect monetary reports consistently. These reports should incorporate any record, the cash got cover bills and different costs. Also, The report ought to incorporate the expense of keeping up the property. For example, cover cleaning, power, yard care, painting, plumbing, and different things, repeating costs. Property chiefs ought to get a definite report that shows all the properties doled out to their consideration.

    Support and Maintenance:

    The property management group gets calls and requests from occupants for fixes and upkeep when required. How to Start the company. These calls can come whenever of day or night, and if the highly sensitive situation requires quick thoughtfulness regarding your property. The management group will actually want to deal with the crisis. Numerous organizations have their support accounts with organizations and business people who perform different kinds of fixes.

    Filling opportunities or vacancies:

    It is the obligation of the management group to keep your property involved by inhabitants, not that property ought to be empty for an extensive stretch. At the point when all units are abandoned, the proprietor loses cash. Property Management Company, having likely, will have an information base of occupants prepared to take off when the current inhabitant moves, How to Start. This data set generally draws because of their promoting endeavors. For example, online advertisements, paper advertisements, and once in a while because of the characters show in a few spots in the area.

    Screening of tenants or occupants:

    At the point when a potential inhabitant is looking for the property. It is the duty of n bequest chief to screen the occupants before leaving the property for them. This may incorporate confirmation, credit check, and individual preferences. Numerous organizations have an estimating scale that decides if the candidate is solid and safe.

    Reviews and Inspections:

    Property chiefs should complete ordinary minds the property to guarantee. That all occupants are attempting to keep the resource great as it was expressed in the arrangement of their rent. The structure should examine by the state establishment, material, plumbing, and cultivating.

    Caution and Warning:

    The management organization will circulate public statements to inhabitants regularly as a bulletin for utilization and advise. Them, about the exercises regarding the local area, significant issues, and critical issues that need consideration.

    How to Become a Property Manager and what does a do they?

    How Does A Property Manager Respond? The expense of property the executives is a substantial contention, particularly when you consider reducing your main concern. Yet, I can guarantee you it’s busy yet. How to become a Product Manager and what does a do they? Truly, a property the board organization will be sure cost extra cash to employ. Yet, I like to consider it a venture, rather than an expense. A decent property manager can without much of a stretch return more than their own underlying expense. All things considered, the normal property the board organization will ordinarily grant financial backers with the accompanying:

    • Collect rent from tenants and gather lease from inhabitants.
    • Listen to maintenance requests and address the problem or tune in to upkeep demands and address the issue.
    • Property managers can manage to default occupants that are a very long time behind in lease. Also market a subject property to limit vacancies.
    • Property managers will showcase a subject property to restrict opportunities
    • Managers will keep nitty-gritty records of everything occurring at the property. And also detailed records of everything happening at the property.
    Rent and Lease Collection:

    Gathering rent is perhaps the clearest undertakings of a property manager. On the off chance that that is all property managers did, notwithstanding. It would positively be more earnestly to legitimize recruiting one – particularly with online installment abilities. Obviously, that doesn’t mean gathering rent is simple using any means. On the off chance that the entirety of your occupants are covering their leases forthright and you wouldn’t fret paying an extraordinary law office when things don’t go right. You may hold on to assess the entirety of the administrations. However, most land financial backers are not in that circumstance. Some work in business sectors where it is a fight to bring in the lease each month.

    Normal and Regular Property Maintenance with Support:

    Managing occupant upkeep calls is maybe the greatest driver for land financial backers to enroll the assistance of a property manager. It isn’t just about the support, be that as it may: managing the occupants can regularly be the greatest test. Now and again their necessities aren’t large or costly, however, the circumstance and desperation are. It could impede and reversing pipes toward the end of the week or being secured out in the center of the evening. A ton of these calls can be bothering to a landowner. Yet, on the off chance that they constantly treat that way. Greater issues with tenants and investment property execution make certain to emerge. Quick and responsive client support expect to advance pay properties.

    Property managers will manage these solicitations, easing you from the weight. If it is little, the solicitations might be dealt with inside. Bigger and more unpredictable issues might appoint outside subject matter experts. Modern property financial backers ordinarily have a property the board arrangement that approves the organization to deal with up to a specific dollar measure of fixes without requiring express authorization first. This simply smoothes out the interaction and guarantees issues don’t deteriorate if you can’t be reached.

  • Difference between Private Company and Public Company

    Difference between Private Company and Public Company

    Private Company and Public Company Difference; A private company isn’t like a public company. The private company runs in the same way as a public company runs. A public company refers to a company that lists on a recognized stock exchange and its securities trade publicly. Also, A private company is one that not lists on a stock exchange and its securities hold privately by its members.

    Difference or distinction between Private Company and Public Company in PPT presentation.

    The Differences of Company content below are the following and presentation;

    Which means:

    A public company alludes to a company that records on a perceived stock trade and its protections are exchanged publicly. Also, a private company is one that not records a stock trade and its protections are held privately by its individuals.

    Name of company end word:

    As well as, a public company needs to exclude “private” in its name. However, for a private company, it is required to compose the words “private restricted” toward the finish of its name.

    Number of Members for Company:

    There should be at any rate seven individuals to begin a public company. Yet, despite what might expect, the private company can be begun with at least two individuals. There is no roof on the greatest number of individuals in a public company. Also, a private company can have a limit of 50 individuals, including its at various times representatives.

    Number of directors in Company:

    A public company ought to have at any rate three chiefs; Also, a private company can have at least 2 chiefs.

    Majority:

    It is obligatory to assemble a legal general conference of individuals, on account of a public company. The presence of two individuals is a sufficient majority for the regular gathering on account of a private company. Then again, there should be in any event five individuals, by and by present at the yearly regular gathering for comprising the essential majority if there should be an occurrence of a public company.

    Capital for Company:

    As well as, a public company should have a settled up capital of rupees five lakh. Alternately, a private company should have a settled up capital of rupees one lakh.

    Beginning of Company Business:

    To begin a business, the public company needs a testament to the beginning of business after it is fused. As well as, a private company can begin its business soon after accepting an endorsement of the fuse.

    Articles of Association:

    As well as, a public company can receive the model Articles of Association given in the Companies Act. Also, a private company should get ready and document its own Articles of Association.

    The adaptability of offers in the financial exchange:

    Also, the adaptability of portions of a private company totally limited. Unexpectedly, the investors of a public company can openly move their offers.

    Limitations on the Appointment of Directors:

    Ahead of a public company will record with the recorder’s agreement to go about thusly. He/she will sign the reminder and go into an agreement for capability shares. He/she can’t cast a ballot or participate in the conversation on an agreement where he/she intrigue. 66% of the overseers of a public company should resign by a pivot. These limitations don’t have any significant bearing on a private company.

    Difference or distinction between Private Company and Public Company Image
    Difference or distinction between Private Company and Public Company; Image from Own.
  • L’Oréal SWOT Analysis for the cosmetic company

    L’Oréal SWOT Analysis for the cosmetic company

    Explore L’Oréal’s SWOT analysis to gain insights into its strengths, weaknesses, opportunities, and threats, shaping its future in the cosmetics sector. Before the establishment of facial cosmetics, L’Oréal can be identified as a hair-color formula that has been introduced by a French chemist known as Eugene Schueller in 1907. It was then known as ”Aureole”. Poster presentation on L’oreal Luxury Cosmetic. Schueller formulated and manufactured his own products which were sold to Parisian hairdressers.

    It was only in 1909 that Schueller registered his company as “Societe Francaise de Teintures Inoffensive pour Cheveux”, the future L’Oréal. Schuller began exporting his products, which was then limited to hair-coloring products. It focuses to engage in the field of Production and Marketing of concentrating on hair colors, skincare, perfumes, and fragrances, makeup, and styling products.

    The Concept of L’Oréal SWOT Analysis, Why? L’Oréal is the world’s biggest cosmetics and beauty products company.

    There were 3 chemists employees in 1920. In 1950, the research teams increased to 100 and reached 1,000 by 1984. Today, research teams number to 2,000 and still expect to increase shortly. Through agents and consignments, Schuller further distributed his products in the United States of America, South America, Russia, and the Far East. The L’Oréal Group is present worldwide through its subsidiaries and agents. L’Oréal started to expand its products from hair-color to other cleansing and beauty products.

    The L’Oréal Group today markets over 500 brands and more than 2,000 products in the various sectors of the beauty business. Such include hair colors, permanents, styling aids, body and skin care, cleansers, and fragrances. Indeed, the L’Oréal Group has reached the peak that all cosmetic brands sought after. Many factors contribute to the success of the Company. Since L’Oréal was known to be France’s leading beauty company, it was international presence was so limited that many believed and had a conception of Parisian beauty as being expensive and high culture.

    What is SWOT Analysis?

    • S.W.O.T. is an acronym that stands for Strengths, Weaknesses, Opportunities, and Threats. A SWOT analysis (Dell swot) is an organized list of your business’s greatest strengths, weaknesses, opportunities, and threats.
    • Existing businesses can use a SWOT analysis, at any time, to assess a changing environment and respond proactively. In fact, I recommend conducting a strategy review meeting at least once a year that begins with a SWOT analysis.
    • New businesses should use a SWOT analysis as a part of their planning process. There is no “one size fits all” plan for your business, and thinking about your new business in terms of its unique “SWOTs” will put you on the right track right away, and save you from a lot of headaches later on.

    SWOT Analysis for L’Oréal:

    The SWOT analysis framework involves analyzing the strengths as “S” and weaknesses as “W” of the L’Oréal’s internal factors, and the opportunities as “O” and threats as “T” of its external factors of performance.

    Through this analysis, the weaknesses and strengths within L’Oréal can correspond to the opportunities and threats in the business environment so that effective strategies can be developed. It follows from this, therefore, that an organization can derive an effective strategy by taking advantage of its opportunities by using its strengths and neutralize its threats by minimizing the impact of its weaknesses.

    Moreover, SWOT analysis can be applied to both a whole company as well as a specific project within a company to identify new company strategies and appraise project feasibility. Here is you’ll understand the SWOT Analysis for the L’Oréal Paris cosmetic company.

    Strengths of L’Oréal:

    The ongoing success of the L’Oréal Group is without if not for the ingenuity of the concept of their vision as a team. L’Oréal Chairman and CEO Lindsay Owen-Jones consider passion as the key to the well-renowned accomplishment of the said Company.

    The primary strength of the Company is the continuing research and innovation in the interest of beauty which assures that L’Oréal Cosmetics offers the best to their consumers.

    Their dedication to their continuous research makes them the leader in the growing cosmetics industry despite the competition in the market. The strength of the L’Oréal Groups is the developed activities in the field of cosmetics as well as in the dermatological and pharmaceutical fields to put more concentration in their particular activities.

    The cosmetics activities of L’Oréal divide into five groups. First is the Consumer Product Division which encompasses all the brands distributed through mass-market channels, ensuring that L’Oréal quality is available to the maximum number of consumers. The Luxury Products Division includes the prestigious international brands selectively distributed through perfumeries, department stores, and duty-free shops.

    Professional Strengths of L’Oréal:

    The Professional Products Division offers specific hair care products for use by professional hairdressers and products sold exclusively through hair salons. The Active Cosmetics Department creates and markets products for selective distribution through pharmacies and specialist health and beauty outlets. The L’Oréal Group’s dermatological activities are linked with Galderma. Which is basically a dermatological firm that contributes to the innovation of L’Oréal Group’s products.

    The pharmaceutical activities of L’Oréal also handle by Sanofi-Aventis. These divisions and subdivisions ensure the quality that the L’Oréal Group offers to its customers. To further add to the enumerated strengths of the company. L’Oréal’s advertising strategy also plays a major part in its growth. Through adapting to the culture of their target market as the main tool of their advertisement. The Company brought L’Oréal products within reach of other women from different parts of the world.

    Weaknesses of L’Oréal:

    Perhaps one of the weaknesses that a big company faces is the decentralized organizational structure. This is also part of the difficulties that L’Oréal is facing. Due to the many subdivisions of the Company, there is also the difficulty in the control of L’Oréal. This slows down the production of the Company because of the need for giving reference to the other Board members and directors of the Company. L’Oréal will also have difficulty in finding out what division is accountable for the possible pitfalls of the Company. Another weakness that L’Oréal faces is its profit.

    The profit margin of L’Oréal is comparably low than that of the other smaller rivals. While L’Oréal projects a certain rise in digits as their profit, the result does not usually meet the expectations. Perhaps, this is also due to the high-end advertising and marketing as well as the width of the Company. Finally, the coordination and the control of the activities. And, the image in the worldwide market also view as a weakness on the part of L’Oréal. Due to its worldwide marketing strategy, there are also dissimilarities brought about in the campaign of L’Oréal products as to what image they are to project.

    Opportunities for L’Oréal:

    The L’Oréal Company concentrates on cosmetic products that enhance women of all ages. The growing demand for beauty products allows L’Oréal to focus on their field of specialization, particularly on hairstyling and color, skincare, cosmetics, and perfumeries. Being the leading cosmetic brand gives them the edge for their well-known image.

    The opportunity also emanates from their growing market that ranges from the affluent, the aging, and also the masses of the developed countries. Another opportunity that L’Oréal must take advantage of is its greater market share. Because of the numerous patents registered by the Company. This enables them to have the top-of-the-line products only to their name. Therefore would lead customers only to them for they could not find any of the said cosmetics in other brands.

    Threats for L’Oréal:

    A threat to the L’Oréal group is also the growing competition within the field of cosmetic brands. Due to the ongoing addition to the field of cosmetics. There is still the danger that other brands could surpass the profit of L’Oréal. Another threat to the Company is the economic downturn that is quite evident in other countries. Such could thus hurt the possibility of higher profit for the company. Most products of L’Oréal are within the reach of the citizens of developed countries. But, L’Oréal may have problems reaching out even to the average people from under-developing countries.

    Also, a threat to the L’Oréal Group is the spending habits of the consumer. The economic crunch that most countries are experiencing as of present. While the L’Oréal Group may be producing the best of its line. People may find that their products are not of their basic needs and would skip buying L’Oréal products. However, with the growth of the market, the damage could be far from taking place.

  • What do you think of Data Warehousing?

    What do you think of Data Warehousing?

    Companies using data warehousing and its effects, How many Types of Data Warehousing? What are the benefits of using data warehousing? The term data warehouse or data warehousing was first coined by Bill Inmon in the year 1990 which was defined as a “warehouse which is subject-oriented, integrated, time variant and non-volatile collection of data in support of management’s decision-making process”. When referring to data warehousing as subject-oriented, it simply means that the process is giving information about a particular subject rather than the details regarding the on-going operations of the company. It is a blend of technologies and components which allows the strategic use of data. You are read and studying to learn, What do you think of Data Warehousing? Download PDF.

    A data warehousing is a technique for collecting and managing data from varied sources to provide meaningful business insights. What do you think of Data Warehousing? Download PDF.

    It is electronic storage of a large amount of information by a business which is designed for query and analysis instead of transaction processing. It is a process of transforming data into information and making it available to users in a timely manner to make a difference. Moreover, when data warehousing was referred to as integrated it means that the data or information which are gathered from a number of sources are then all gathered to synthesize a coherent whole.

    On the other hand, data warehousing being time variant simply means that the data available were identified during a particular period. Lastly, data warehousing as being non-volatile means that the data is stable and when a new data is added to the system, the old data are never removed, instead they just remain there and this enables the organization to be able to give the management consistency in their business. In the existence of modern times with the advent of technological advancements inevitably affecting the businesses in major ways, there has also been a development and emergence of new measures, practices, and techniques which used technology to be able to provide an unwavering solution to the problems in the organization with regards to the level and kind of information that the organization needs to be able to survive and prosper amidst the increasing competition in the market.

    Undeniably, one of this techniques and practices refers to the emergence of data warehousing as a tool for helping today’s businesses to be able to manage competition and the turbulent economic condition. The birth f the concept of data warehousing can be contributed to various researches and studies which were conducted in the past to provide various organizations with the means of getting information in a manner which is efficient, effective, and flexible. The data warehousing which is known today among the corporate practice is not what it was when it started almost two decades ago. The practice of data warehousing nowadays is a result of the experiences and technologies in the last twenty years. Bill Inmon and Ralph Kimball are two of the heavyweights when it comes to data warehousing.

    However, although their names are known in this field, these two scholars have two varying views with regards to data warehousing. The paradigm which was illustrated by Inmon holds that the data warehouse forms only a part of the general business intelligence system. On the other hand, the paradigm of Kimball assumes that the data warehouse is a conglomerate of all the data in the organization.

    Other researchers assume that there is no right or wrong theories among the two assumptions from the two heavy weighs in data warehousing. However, most of them support the notion of Kimball’s paradigm. They believe that most data warehouses started only as efforts from various departments starting with what they call as data marts until they develop and evolve to become a data warehouse. Furthermore, data warehousing has been heralded as one of the sustainable solutions to management information and dilemma and such also provide the organization and environment which entails various benefits if they are practiced in the right way and if the perspectives are directed towards the right goal.

    The process of data warehousing is said to have the intention of providing an architectural model which can best provide an illustration of the flow data from the systems regarding the operation of the decision support environments. However, according to the same author, one problem stems down from the data warehousing technique – that is such a system is said to be too expensive to be affordable for some organizations or businesses.

    It is undeniable that data warehousing continues to attract interest, it is also undeniable that many projects are failing to deliver the expectations from what they are supposed to deliver and they still prove to be too high of accost to be handled by some businesses. However, to be able to justify this relatively high cost, it has been said that organizations should look at the long-term benefit of the warehouse rather than simply looking at the short-term benefits that such an offer. Moreover, data warehousing is also said to be designed to be able to support ad-hoc data analysis, inquiry and reporting by end-users, without programmers, interactively and online.

    There are some key factors which can make the data warehousing practice a success among different organizations. One of the key ingredients to the success of the practice is to make the management, especially the higher management, aware and conscious of all the benefits which this tool entails and what can data warehousing do to improve the performance of the business.

    Another key to the success of data warehousing is choosing the right people to make it happen. By choosing the right people, the contribution of individual minds should be recognized to form a synthesis and a greater whole. Training strategy, the right structure or architecture, a sustainable mission statement, showing early benefits, ensuring scalability, understanding how important is the quality of data and using only proven and effective methodology are some of the other key ingredients to make data warehousing a successful practice, Data Warehousing file Download in PDF.

    Why needs Data warehousing?

    The data warehousing is needed for all types of these users like:

    • If the user wants fast performance on a huge amount of data which is a necessity for reports, grids or charts, then Data warehouse proves useful.
    • Decision makers who rely on the mass amount of data.
    • It is also used by the people who want simple technology to access the data.
    • It also essential for those people who want a systematic approach to making decisions.
    • The data warehouse is a first step If you want to discover ‘hidden patterns’ of data-flows and groupings.
    • Users who use customized, complex processes to obtain information from multiple data sources.

    The Companies using data warehousing and its effects.

    An example of a known company which uses data warehousing is WalMart. Being the world’s largest retailer, many say that the company should be also the organization with the largest data warehouse which is going to serve as the database of its inventory and all transactions related to their business performance. The data warehousing also has a big implication on the business of WalMart.

    According to the management of the world’s largest retailer, more than any other purpose, their data warehouse is helping them to be able to make decision support systems between the company and its various suppliers. Aside from that, another implication of data warehousing on WalMart is that it enables the suppliers to be able to access a large amount of online information and data which will be helpful with their suppliers in terms of improving their operations.

    One example of companies using and reaping the benefits of adapt warehousing will be various pharmaceutical companies, or on a larger scale, the general healthcare industry. For most of the pharmaceutical businesses which are under operation, they were able to acknowledge the fact that they lack a sustainable focus on their promotional practices, resulting in diffused sales efforts. With that, they regard that data warehousing technique has a big implication in their business because they regard such as the best medicine and remedy for the aforementioned problem.

    They are even using data warehousing to be able to attain a sustainable competitive edge against other businesses in the industry. In the case of pharmaceutical companies, it has an implication also in the marketing department. Data warehousing helps the marketing department, through various information contained, to come up with promotional and marketing activities which can yield the maximum results. Moreover, data warehousing also has an implication on the human resources department of the organizations because they can also help in the effective allocation of people and resources.

    How many Types of Data Warehousing?

    There are three main types of Data Warehousing are:

    • Enterprise Data Warehousing: Enterprise Data Warehouse is a centralized warehouse. It provides decision support service across the enterprise. It offers a unified approach to organizing and representing data. It also provides the ability to classify data according to the subject and give access according to those divisions.
    • Operational Data Store: Operational Data Store, which is also called ODS, are nothing but data store required when neither Data warehouse nor OLTP systems support organizations reporting needs. In ODS, Data warehouse is refreshed in real time. Hence, it is widely preferred for routine activities like storing records of the Employees.
    • Data Mart: A data mart is a subset of the data warehouse. It specially designed for a particular line of business, such as sales, finance, sales or finance. In an independent data mart, data can collect directly from sources.

    What are the benefits of using data warehousing?

    Some of the benefits of data warehousing that it offers include the fact that it has a relative orientation on the subject area, it has the ability to provide an integration of data which were retrieved from diverse and multiple sources, it allows data analysis from time to time, it adds ad hoc inquiry and reporting, it provides decision makers with the capabilities to analyze, it relieves the IT from information development.

    It has the ability to provide better performance for complex analytical queries, it relieves the burden of processing databases which are based on transactions, it allows a planning process that is perpetual and continuous, and lastly, it converts corporate data to make them strategic information which can help them in planning for a better performance of the organization.

    Another benefit of data warehousing is that it enables and it helps different organizations in the strategic decision making resulting into the formulation of strategic decisions which are geared towards enabling a better business performance and yielding better results.

    It can be assumed that most data warehousing practices are not intended for strategic decision making because they are normally used for post-monitoring of decisions regarding how effective they are. Nonetheless, it should not be also disregarded that data warehousing, can also be sued for strategic decision making and can be used profitably.

    Another benefit of data warehousing is that it enables the user to have unlimited access to a relatively very large amount of enterprise information which can be used to potentially solve a large number of enterprise problems which can even be used to increase the profitability of the company. A very well-designed data warehouse can yield a greater return-on-investment with unlimited benefits had the ability to better assess the risks associated with the organization. Fully read on PDF file and download.

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  • Top 5 case studies of FedEx company that we realize is why they are the Best

    Top 5 case studies of FedEx company that we realize is why they are the Best

    Here is top 5 case study about FedEx, FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. FedEx Company will be doing courier services of delivering Goods and Package. Also learn, Continue to learn Top 5 case studies of FedEx company that we realize is why they are the Best.

    Understanding and Learn What? Top 5 case studies of FedEx company that we realize is why they are the Best.

    The case study is the study of knowledge, When will the FedEx Company need to create a courier company, or the FedEx company has done the job of courier for the first time? This case study tells us that when the FedEx company has started the work of the courier, and how will it be started?

    What problems did they get after starting the courier company, and how would they have solved the problem? Case studies of all companies tell us how the company started, how the company touched the new height and went ahead? Occasionally the company’s case study also shows how much money the company has earned and spent?

    Some company’s case studies also tell us how, when, and how, or what do the customers join the company, and what does not make the company away and go towards new companies. So, here are the top 5 case studies of the FedEx Courier Company. How do they make the company? How are they all right? How are they growing and achieving success? How have they started courier services in many places? Now, learn and understand how the FedEx company started, and day by day, the company touched the new height of the sky.

    FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express (now FedEx Express), which was used from 1973 until 2000.

    The company is known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location (to help in finding lost packages), a feature that has now been implemented by most other carrier services. This information was collected from Wikipedia.

    FedEx, an international company that provides shipping by air and ground and a range of logistics and trade consulting services, must provide speed and dependability globally not only for its core businesses with customers but also in its communications with constituencies about key business objectives. Employees at FedEx work in 200 countries 7 days a week, 24 hours a day. The corporate communication function must operate in as broad a landscape with speed, high impact, and precision.

    1. Case Study of Leveraging Information Technology to Grow Business in FedEx.

    Case Study of Leveraging Information Technology to Grow Business in FedEx - ilearnlot
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    The Federal Express Corporation had a visionary leader to become the first motivator in the express transport and logistics industry, leaving FedEx with a remote source: their ability to help them control the entire supply chain management.

    The ability of the company to use technology and its supply of resources has made competitors difficult to match standards of company standards. FedEx is mainly successful because of their technical progress. Technology has given them better customer service and quality which is not unique by any company. No company was able to offer overnight delivery of packages with speed and precision of the Federal Express. Learn More to Visit the Article.

    2. Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

    Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx - ilearnlot
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    Given the core businesses of the company, communication challenges can arise in many challenges – anything from crisis management, such as an accident after the accident or computer outage, for the management of e-commerce initiatives, the implementation of a new business model quickly for.

    According to Corporate Vice President Bill Margaritas, corporate communications need to add significant value to the business and the company should have a complete alliance with high impact strategic decision makers. But how did they complete it in FedEx? First of all, Margaritis organizes an annual audit with the authorities so that it can know what they are trying to achieve and establish a scorecard for success.

    These are the company’s new “customer-facing market-market” strategies to improve development and profitability. This structure allows the team to pay full attention to active opportunities, rather than being less vulnerable to operational issues, which are important for management but are distinctly different. Learn More to Visit the Article.

    3. Case Study of the Success Story of FedEx Company.

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    FedEx’s strengths in logistics, operations, and technological innovation allow them to pursue a differentiation business level strategy. FedEx works to stand apart from its competitors by creating a level of service that is difficult for competitors to match. FedEx has clearly been identified as an innovator, but what they need to get across to their customers is that they provide a high level of quality service.

    FedEx charges higher prices for its services than many of its competitors in the industry. This is considered a premium that a customer pays for the quality of service FedEx provides. By differentiating their standard of quality from their competitors, FedEx lets their customers know that if they are willing to pay more, it will be worth it.

    FedEx is able to meet the needs of all these segments. They have spent an extraordinary amount of capital developing their infrastructure just so they can make the best promises to their customers. FedEx transports more than 3 million items to over 200 countries each day. Within each business unit are specific functional units that perform particular functions. The main functional units are logistics and operations for its transportation system. Learn More to Visit the Article.

    4. Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx.

    Case Study of Pioneer of Internet Business in the Global Transportation and Logistics Industry for FedEx - ilearnlot
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    It provided a successful technology for the FedEx Corporation as a pioneer in the whole industry for e-business. This strategy became an advantage that they used to undermine their competitors’ strengths and localized customer service. With a globally connected IT network, FedEx was able to leverage their IT advantage to service their corporate accounts on a global basis, rather than on a country by country basis.

    Pioneer of Internet Business in the Global Transportation and Logistics Industry:

    FedEx Corporation created its own website form in 1994, it is the first step and basis for the company to develop its e-commerce. FedEx.com is the first transportation website which could accept the one line order for package tracking and allow the customers to transact the business by the Internet.

    Both shippers and recipients could access shipping information and print documentation via the Internet. As the pioneer in the industry, FedEx should continually improve their system and service due to its competitor also created the Internet service and Internet software. Learn More to Visit the Article.

    5. Case Study of Using Marketing Channels to Create Value for FedEx Customers.

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    FedEx’s service covered all around the globe, making services available for customers from many countries and almost every place. FedEx has many drops off location around the globe. A customer can choose either one drop- off location that is nearest to them. This Case Study analysis with How companies create value for customers? How is Value Created and What Does It Do?

    FedEx has great air network, having more than 320 daily international flight and 654 aircraft ready to ship the packages. FedEx has many hubs around the world working as a midpoint for delivering the packages. There are four hubs in the Asia Pacific. That is Shanghai, Osaka, Seoul and Guang Zhou. Besides, FedEx has hubs in London, Cologne, Frankfurt, and Paris which will later ship the parcel around the European area. Moreover, hubs that link Latin America, the Caribbean and Canada were in Memphis and Miami.

    One thing that makes FedEx so special out of so many transportation or shipping company is the collection of airplane uses by FedEx in order to ship the parcel. FedEx is the first company who use the plane called the Boeing 777. The uniqueness of the plane is the plane is a fuel saver. It shorter the transit time with larger space to put the parcel. This had made the overnight courier service possible. Learn More to Visit the Article.

    Top 5 case studies of FedEx company that we realize is why they are the Best - ilearnlot
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  • Case Study of the Success Story of FedEx Company

    Case Study of the Success Story of FedEx Company

    Federal Express was founded in 1971 as the “big idea” of charter airplane pilot Fred Smith. It launched its overnight air express business in 1973, and just 10 years later, it was the first U.S. company to top $1 billion in revenues in its first decade. What do you learn, Case Study of the Success Story of FedEx Company?

    Understand and learn what? Case Study of the Success Story of FedEx Company. 

    The intro of FedEx by Wikipedia: FedEx Corporation is an American multinational courier delivery services company headquartered in Memphis, Tennessee. The name “FedEx” is a syllabic abbreviation of the name of the company’s original air division, Federal Express (now FedEx Express), which was used from 1973 until 2000. The company is known for its overnight shipping service and pioneering a system that could track packages and provide real-time updates on package location (to help in finding lost packages), a feature that has now been implemented by most other carrier services.

    Today, FedEx (its nickname, “FedEx,” officially became the company name in 2000) is the world’s largest express transportation company-almost 196,000 employees move more than 3 million items to more than 200 countries each business day, up from 110,000 workers and 2 million packages just five years ago! In 1990, FedEx became the first service company to win the Baldrige Award. Since then, the company has expanded its ground delivery business by purchasing both Parcel Direct (formerly a division of Quad/Graphics, now renamed FedEx SmartPost) and more than 1,100 Kinko’s locations (now FedEx Kinko’s Office and Print Centers) in 2004.

    The survival issue is prominent in the minds of quality leaders. FedEx’s Fred Smith compares the awakening to quality to “a near-death experience. A lot of times it’s brought on by trauma.” Leaders often embrace Total Quality Management because they see no alternative: improve or die. Whatever inspires them-the fear of failure, the promise of success, the achievement of other companies, the belief that there must be a better way to manage a company-triggers the leap of faith. Once they are on the quality path, the cultural changes they see all around them frequently breed a missionary zeal about the need for, and the benefits of, the quality improvement process.

    The first step for any company president, chairman, or CEO is committing himself or herself, as well as the company, to the process. Jamie Houghton took this step in 1983, shortly after he became Corning’s chairman. Fred Smith and his top executives founded FedEx on the idea of providing the highest quality of service, then participated in quality training in the first year of the company’s existence.

    At FedEx, Fred Smith has been directly involved in the development of every quality process and system the company has implemented. He founded the company on a belief that customers would value a time-definite express delivery service, then used on-time delivery as the company’s primary measure of performance. In the late 1980s, he helped develop a more comprehensive, proactive, customer-oriented measure of customer satisfaction and service quality: the Service Quality Index (SQI).

    As Smith said, “We believe that service quality must be mathematically measured.” The company tracks these 12 indicators daily, individually and in total, across its entire system. Each indicator is weighted: the greater the weight, the greater the impact on customer satisfaction. One of FedEx’s service goals is to reduce the totals of the SQI every year.

    SCAC codes use by FedEx:

    The Standard Carrier Alpha Code (SCAC) is a unique code used to identify transportation companies. It is typically two to four alphabetic letters long. It was developed by the National Motor Freight Traffic Association in the 1960s to help the transportation industry for computerizing data and records.

    FedEx’s codes include:

    • FXE – FedEx Express.
    • FXSP – FedEx SmartPost.
    • FXG – FedEx Ground.
    • FXFE – FedEx Freight.
    • FDCC – FedEx Custom Critical.
    • FXO – FedEx Office, and.
    • FSDC – FedEx Same Day City.

    Service is one of the company’s three overall corporate objectives: People-Service-Profit. Every manager at FedEx, including Fred Smith and the senior executive staff, has annual benchmarks for each of these three corporate objectives. Smith sets his own personal objectives with input from the board of directors, and the process cascades through the organization from there. Managers are evaluated on how well they achieve their objectives.

    To develop and implement such broad measures and objectives, Smith and his staff had to understand the company’s quality objectives, its customers’ needs, and the potential effectiveness of the SQI as a measure and motivator. Many other service companies are still trying to figure out what to measure. Smith led the development of a measure that tells all FedEx employees, every day, exactly how they are doing on customer satisfaction and service quality. Active participation in the quality improvement process doesn’t get any better than that.

    Good leaders know that having a customer focus is critical. At FedEx, each officer is assigned responsibility for the major customers in a sales district. Smith and his staff talk to customers continuously at the executive level to make sure their needs are being met.

    FedEx has three corporate goals: People-Service-Profit. As Smith summarizes, “when people are placed first, they will provide the highest possible service, and profits will follow.” The three corporate goals are translated into measurable objectives throughout the corporation. Progress on the people goal is determined by the Leadership Index, a statistical measurement of subordinates’ opinions of management’s performance.

    Service is based on the Service Quality Indicators described earlier. The profit goal is a percentage of pretax margin, determined by the previous year’s financial results. Success in meeting the objectives for each area determines the annual bonuses for management and professionals.

    FedEx Corporation in the United States administers the variety of advanced factors of production. These are managerial sophistication, logistics know-how, and physical infrastructure. Logistics is one of the main advanced factors which FedEx developed for managing its complex hubs. Physical infrastructure that FedEx uses is not only airports but also roads and ports.

    Additional distinctive competencies that FedEx have, also arise from firm-specific tangible and intangible resources, namely, FedEx’s hubs and package handling systems; its package tracking and customer support function and its logistics support. Again, the main barrier to imitate these firm-specific resources is the high cost associated with acquiring them. FedEx’s package tracking and customer support functions, as well as their logistic support, are examples of the firm’s distinctive competencies as well.

    The barriers to imitate FedEx’s package tracking and customer support functions are based on the fact that FedEx was the initiator in establishing the first tracking applications website and providing each customer with a unique barcode to individualize each shipment. That allowed FedEx to gain proficiency in these systems and knowledge about the functional operations.

    FedEx’s strengths in logistics, operations, and technological innovation allow them to pursue a differentiation business level strategy. FedEx works to stand apart from its competitors by creating a level of service that is difficult for competitors to match. FedEx has clearly been identified as an innovator, but what they need to get across to their customers is that they provide a high level of quality service.

    FedEx charges higher prices for its services than many of its competitors in the industry. This is considered a premium that a customer pays for the quality of service FedEx provides. By differentiating their standard of quality from their competitors, FedEx lets their customers know that if they are willing to pay more, it will be worth it.

    FedEx is able to meet the needs of all these segments. They have spent an extraordinary amount of capital developing their infrastructure just so they can make the best promises to their customers. FedEx transports more than 3 million items to over 200 countries each day. Within each business unit are specific functional units that perform particular functions. The main functional units are logistics and operations for its transportation system.

    These units assure the coordination and smooth flow of FedEx’s deliveries. The end result is a high level of quality service. Their service includes customer responsiveness and innovations such as; its aircraft fleet, its hubs and package handling systems, package tracking, customer support functions, and logistics support. Not only does this help FedEx follow through with their promises, but in some ways that are superior to that of the competition.

    FedEx has transformed itself into an e-business by integrating physical and virtual infrastructures across information systems, business processes, and organizational bounds. FedEx’s experience in building an e-business shows how a company can successfully apply its information technology expertise in order to pioneer “customer-centric” innovations with sweeping structural and strategic impacts. It also shows the role of outsourcing, which frees companies to concentrate on their core business.

    The value chain for FedEx Express can be seen as starting with the pick-up of the packages. FedEx employees gather the packages from various locations such as drop boxes, businesses, and residences. Value is created for the customers by making package pick-ups possible just about anywhere or anytime. FedEx has a money back guarantee for those people whose packages do not arrive on time, therefore creating value by assuring timely delivery of the packages.

    After the packages are initially picked up, they must then be transported to a hub. The hub is a central location where packages are sorted according to their destinations. The packages will likely pass through many hands before reaching their final destination. The packages stay at the hub until they are picked up and shipped either by truck or plane.

    FedEx Supply Chain Services which synchronize the movement of goods for enhanced customer satisfaction. With all of this evident, it can be said that FedEx segments its markets according to the needs of the customers and not by demographic regions.

    While FedEx is a very large company that occupies a large portion of market share in the express delivery sector as well as the ground sector we have concluded that FedEx does not so much possess distinctive competencies, as it has strong existing competencies that allow it to compete competitively with industry leader UPS. These competencies include a very timely customer response time, cutting-edge technology and innovation.

    With the fact that FedEx does not have a competitive advantage, or distinctive competencies, yet is still the largest express package delivery service there are many directives that could be followed to attain both. This is obviously a long-term goal, however, it can be seen that the undertakings have already begun. Its most recent endeavor, characterized as a diversification from its “usual” product offering of actual shipment of good’s, is the newer service offering of consultation.

    Labeled FedEx Trade Networks, this newest division of the FedEx offerings showcases the company’s vast competence of international shipping knowledge to an array of customers. These customers are provided value creation with the knowledge that can greatly increase efficiencies through the supply chain. FedEx Trade Networks offers a full range of international support services, including customs clearance, freight forwarding, Trade & Customs Advisory Services (TCAS) and trade technology solutions.

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  • Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx

    Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx

    Understanding and Learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

    FedEx is an international company that provides shipping by a series of air and land and logistics and business consulting services, not only for its core businesses with customers but also for the main business objectives, with speed in their communication with the constituencies And provide dependence. In FedEx, employees work in 200 countries for 7 days a week, 24 hours a day. The corporate communication function should act as a broader scenario with speed, high impact, and precision. Also learn, Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx.

    Given the core businesses of the company, communication challenges can arise in many challenges – anything from crisis management, such as an accident after the accident or computer outage, for the management of e-commerce initiatives, the implementation of a new business model quickly for.

    According to Corporate Vice President Bill Margaritas, corporate communications need to add significant value to the business and the company should have a complete alliance with high impact strategic decision makers. But how did they complete it in FedEx? First of all, Margaritis organizes an annual audit with the authorities so that it can know what they are trying to achieve and establish a scorecard for success. These are the company’s new “customer-facing market-market” strategies to improve development and profitability. This structure allows the team to pay full attention to active opportunities, rather than being less vulnerable to operational issues, which are important for management but are distinctly different.

    Since the company has created cross-functional groups to solve these strategies, which are at the center of FedEx business. Margaritis Corporate Communications specifies people to have each cross-functional groups dedicated to the “well-known market” strategy. In this way, the perspective of corporate communications on issues such as message about launching a new product, sending news about mergers and acquisitions, pitching the media, and helping in the management of government relations in highly regulated environments, where FedEx operates , Voices are raised with concerns about finance, operations, information systems, and long-term strategic goals.

    By dividing corporate communications employees into “go-to-market” groups, customer-facing tasks such as sales, customer care and information technology, Margaritis has gained significant side-effects, they develop a multi-talented group of communication professionals Strategic-level issues of reduction in functional areas such as marketing, finance, sales, technology, and tactics Can help solve problems. Members of his team do not just fill a narrow space, such as writing newsletters for pilots or making speeches for senior executives. Instead, their employees can move through projects to build a comprehensive knowledge of business and can contribute to value-added advocates in those decisions.

    The senior management at FedEx realizes that when the company offers new services, offering new services, and making a commitment in the market, the company’s brand is online with several constituencies – opinion leaders, media, Investors, employees, customers as well. For the strategy of working, the company’s culture has to be migrated to a new strategic direction; Employee behavior, motivation, and emotions should be changed accordingly.

    Using an example of the company need to make a purchase for a new customer initiative, Margaritas explained the possible partnership between corporate communications and the company’s major strategic decisions:

    When companies are rapidly considering changes to their business strategies or business models, then corporate communications groups should play a vital role in the planning and execution process. To change quickly, the company needs to get this news primarily in an attractive, versatile manner in important constituencies, and they have to buy. For example, the company makes a new pledge to the customers, the organization should have a program that connects employees with this new purpose.

    A company wants that loyalty of employees to be combined with new value propositions, and translate the new pledge into shareholder value. Employees need to reach new strategies. If not, the company’s brand and reputation may be suffering, corporate communications, one of the things is related to research between employee behavior, and tasks with customer service, and therefore performance interval with active communication programs. Corporate communication has to play a leadership role in a changing environment.

    FedEx takes a holistic view of corporate communications in all channels and audiences: by planning and executing a new strategy to measure attempts to add behavior and approach to business and market behavior related to marketplace and market behavior.

    Case Study of A Powerful Partnership of Strategy and Corporate Communication in FedEx - ilearnlot
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