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Assignment:  Unit 3 – Individual ProjectType:  Individual ProjectDue Date:  Tue, 3/13/18Points Possible:  150Points Earned: 0Deliverable Length:  See assignment detailsView objectives for this assignmentDetailsLearnReadMy Work 

Assignment Description

You have been asked to provide more data to support your strategic recommendations that the organization should consider pursuing to effectively compete in the health care marketplace.

Prepare a report of 5–7 pages and include at least 5 relevant peer-reviewed academic or professional references published within the past five years that includes the following information:

• Prioritize all of the strategic recommendations that you identified in the Unit 2 report in order of effectiveness, explaining their impact on the organization’s competitive position in the health care marketplace.
• Prepare an estimate of the resources (operational, human, and length of time) that are needed to implement each of these recommendations.
• Using at least 3 appropriate financial ratios (compound annual growth rate (CAGR), return on equity (ROE), return on investment (ROI), net present value (NPV), profitability index (PI), internal rate of return (IRR), etc.) from your research, demonstrate the financial validity of each of your recommendations.
• Rank your recommendations based on financial impact.

For a resource guide on using the online library to search for references, click here.

Please submit your assignment.

Your assignment will be graded in accordance with the following criteria. Click here to view the grading rubric.

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Write a report that provides facts about various project method methodologies. The audience for your report is your senior leadership. Include the following:

1. Provide an overview of your organization and the project management methodology you currently use (traditional/waterfall, agile, lean, etc.). You may also use a company you wish to work for in the future. 

2. Write a 1-2 page summary of the existing methodology, its origin and advantages and disadvantages.

3. Write a 1-2 page summary of an alternate methodology (traditional, agile, lean, etc.) including its advantages and disadvantages.

4. Write a conclusion discussing recommendations for your company based on your findings.

The length should be in the range of 1500 words +/- 10%.

Make sure that your report contains all of the following headings, shown below in Components of a business report.

Brief Exercise 2-1

Select the qualitative characteristics for the following statements.

(a)		Quality of information that permits users to identify similarities in and differences between two sets of economic phenomena.
(b)		Having information available to users before it loses its capacity to influence decisions.
(c)		Information about an economic phenomenon that has value as an input to the processes used by capital providers to form their own expectations about the future.
(d)		Information that is capable of making a difference in the decisions of users in their capacity as capital providers.
(e)		Absence of bias intended to attain a predetermined result or to induce a particular behavior.

 

Brief Exercise 2-9

Vande Velde Company made three investments during 2014.

Where will Vande Velde report these investments in the fair value hierarchy?

(1)		It purchased 1,000 shares of Sastre Company, a start-up company. Vande Velde made the investment based on valuation estimates from an internally developed model.
(2)		It purchased 2,000 shares of GE stock, which trades on the NYSE.
(3)		It invested $10,000 in local development authority bonds. Although these bonds do not trade on an active market, their value closely tracks movements in U.S. Treasury bonds.

 

 

Brief Exercise 2-12

Identify whether the following expenditures is recorded as an asset or an expense. Assume all items are material.

(a)		Legal fees paid in connection with the purchase of land are $1,500.
(b)		Eduardo, Inc. paves the driveway leading to the office building at a cost of $21,000.
(c)		A meat market purchases a meat-grinding machine at a cost of $3,500.
(d)		On June 30, Monroe and Meno, medical doctors, pay 6 months’ office rent to cover the month of July and the next 5 months.
(e)		Smith’s Hardware Company pays $9,000 in wages to laborers for construction on a building to be used in the business.
(f)		Alvarez’s Florists pays wages of $2,100 for the month an employee who serves as driver of their delivery truck.

 

Exercise 2-1

Indicate whether the following statements about the conceptual framework are true or false.

(a)		Accounting rule-making that relies on a body of concepts will result in useful and consistent pronouncements.
(b)		General-purpose financial reports are most useful to company insiders in making strategic business decisions.
(c)		Accounting standards based on individual conceptual frameworks generally will result in consistent and comparable accounting reports.
(d)		Capital providers are the only users who benefit from general-purpose financial reporting.
(e)		Accounting reports should be developed so that users without knowledge of economics and business can become informed about the financial results of a company.
(f)		The objective of financial reporting is the foundation from which the other aspects of the framework logically result.

 

 

Exercise 2-2

Indicate whether the following statements about the conceptual framework are true or false.

(a)		The fundamental qualitative characteristics that make accounting information useful are relevance and verifiability.
(b)		Relevant information only has predictive value, confirmatory value, or both.
(c)		Information that is a faithful representation is characterized as having predictive or confirmatory value.
(d)		Comparability pertains only to the reporting of information in a similar manner for different companies.
(e)		Verifiability is solely an enhancing characteristic for faithful representation.
(f)		In preparing financial reports, it is assumed that users of the reports have reasonable knowledge of business and economic activities.

 

Exercise 2-4

Identify the appropriate qualitative characteristic(s) to be used for given the information provided below.

(a)		Qualitative characteristic being employed when companies in the same industry are using the same accounting principles.
(b)		Quality of information that confirms users’ earlier expectations.
(c)		Imperative for providing comparisons of a company from period to period.
(d)		Ignores the economic consequences of a standard or rule.
(e)		Requires a high degree of consensus among individuals on a given measurement.
(f)		Predictive value is an ingredient of this fundamental quality of information.
(g)		Four qualitative characteristics that are related to both relevance and faithful representation.
(h)		An item is not recorded because its effect on income would not change a decision.
(i)		Neutrality is an ingredient of this fundamental quality of accounting information.
(j)		Two fundamental qualities that make accounting information useful for decision-making purposes.
(k)		Issuance of interim reports is an example of what enhancing quality of relevance?

Exercise 2-7

Presented below are a number of operational guidelines and practices that have developed over time.

Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices.

(a)		Fair value changes are not recognized in the accounting records.
(b)		Financial information is presented so that investors will not be misled.
(c)		Intangible assets are capitalized and amortized over periods benefited.
(d)		Agricultural companies use fair value for purposes of valuing crops.
(e)		Each enterprise is kept as a unit distinct from its owner or owners.
(f)		All significant post-balance-sheet events are reported.
(g)		Revenue is recorded at point of sale.
(h)		All important aspects of bond indentures are presented in financial statements.
(i)		Rationale for accrual accounting.
(j)		The use of consolidated statements is justified.
(k)		Reporting must be done at defined time intervals.
(l)		An allowance for doubtful accounts is established.
(m)		Goodwill is recorded only at time of purchase.
(n)		A company charges its sales commission costs to expense.

 

IFRS Practice Question 1

Which of the following statements about the IASB and FASB conceptual frameworks is not correct?

[removed]

The IASB conceptual framework does not identify the element comprehensive income.

 

[removed]

The existing IASB and FASB conceptual frameworks are organized in similar ways.

 

[removed]

The FASB and IASB agree that the objective of financial reporting is to provide useful information to investors and creditors.

 

[removed]

IFRS does not allow use of fair value as a measurement basis.

 

IFRS Practice Question 2

Which of the following statements is false?

[removed]

The monetary unit assumption is used under IFRS.

 

[removed]

Under IFRS, companies may use fair value for property, plant, and equipment.

 

[removed]

The FASB and IASB are working on a joint conceptual framework project.

 

[removed]

Under IFRS, there are the same number of financial statement elements as in GAAP.

 

IFRS Practice Question 3

Companies that use IFRS:

[removed]

must report all their assets on the statement of financial position (balance sheet) at fair value.

 

[removed]

may report property, plant, and equipment and natural resources at fair value.

 

[removed]

may refer to a concept statement on estimating fair values when market data are not available.

 

[removed]

may only use historical cost as the measurement basis in financial reporting.

IFRS Practice Question 4

The issues that the FASB and IASB must address in developing a common conceptual framework include all of the following except:

[removed]

should the characteristic of relevance be traded-off in favor of information that is verifiable?

 

[removed]

should a single measurement method such as historical cost be used?

 

[removed]

should the common framework lead to standards that are principles-based or rules-based?

 

[removed]

should the role of financial reporting focus on internal decision-making as well as providing information to assist users in decision-making?

IFRS Practice Question 5

With respect to the converged FASB/IASB conceptual framework:

[removed]

work is being conducted on the framework as a whole, and it will not be issued until all parts are completed.

 

[removed]

work on the framework has a higher priority than projects on revenue and leases.

 

[removed]

work is being conducted on the framework in phases, and completed parts will be issued as completed.

 

[removed]

the framework will not address measurement issues.

 

 

you plan to purchase a $100,000 house using a 30-year mortgage obtained from you local credit union. the mortgage rate offer to you is 8.25 percent. You will make a down payment of 20 percentof the purchase price.
a.calculate your monthly payments on the mortgage
b. calculate the amount of interest and separtely principal paid in the 25th payment
c. calculate the amount of interest and separately principal paid in the 225th payment
d. calculate the amount of interest paid over the life of this mortgage

 

 

 

 

 

 

 

Spirit Airline Strategic Planning

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Executive of the Sprit Airline

Spirit Airlines is a highly low cost carrier. It gives the clients many options of customizing their base tickets amounts. The company has agent print-outs known as the boarding pass. The boarding pass is used to check the input versus the doing in the online kiosk. The system checks bags and progressively increases charges for overweight bags.  By 2007, the Spirit started charging an amount of $3 for drinks. The charges increased to $5 in 2011 for passengers boarding passes printed at the check-in. According to these company, any bags that can exactly fit under the seats, are not charged. Any big bags that cause the overwhelming condition to the operators are the ones that are charged. The company ensures that the luggage does not exceed 50 pounds, and the bags are loaded up to $25. The company started in the US as a carrier to temporary to increase the passenger baggage fees (Eden, 1996).  In the states, the bag fees began with a minimal fee of $2 to attract fewer bags to the airline during traveling.  The aim of the company in discouraging passengers from carrying huge bags have resulted in another open business.

The company attains a higher competitive advantage over the higher-cost carriers. Its low prices in the market make it maintain its customers. Unlike some other companies such as the Delta Airline, US Airways and many other means of transport enterprises in the US, the stripe line has the least charges thus making many people prefer to use it. The company is also winning the competitive ability by ensuring that its bankruptcy is protected (White, 2001).  The company was recorded to be among the businesses in the US airlines that protected its bankruptcy. By so doing, it established a strong foundation in the market as compared to the other airline which was declared bankrupt in the year 2012

The attractiveness of the Airstrip industry makes customers like it. The leisure travels cost which depends on the service provided by the airstrip increases when the service given by the airline industry are active. The most significant factor that makes the airstrip gain more customers is its effectiveness.

BCG Analysis

The BCG Matrix graphically shows differences amongst Spirit Airlines’ passenger revenues and profits and non-ticket income and profits about market share position and industry growth rate. Passenger revenue is obtained from the base company’s ticket sales.  Miscellaneous income is known ancillary fees generate non-ticket profits, including but not limited to checked baggage, advance seat selection, in-flight sales, etc. Spirit Airlines’ passenger revenues and profits division fall into 1st Quadrant, the Upper “Question Mark.” Units positioned in 1st Quadrant have high cash needs and small relative market share position, although they compete in a high-growth industry. Divisions in this Quadrant require close monitoring by internal controls and are often considered “problem children.” Spirit Airlines’ passenger revenues and profits section maintain a relatively small market share position, as evidenced by the firm’s 2% market share. Also, Spirit Airlines only carries 1% of U.S. passengers. At the heart Spirit Airlines’ business model is offering the lowest base fare to its customers.

Therefore, the passenger revenues and profits division will never become a Star or Cash Cow without dramatic strategy implementation. Attractive plans for departments in the Question Mark Quadrant are market penetration, market development, product development and divestiture. Spirit Airlines has made a significant investment to double the size of its fleet by 2020, representative of a current market growth strategy. As a result, this action could allow the passenger revenues and profits division to move from a Question Mark to Star, and ultimately Cash Cows if the airline continues to operate profitability. Spirit Airlines’ non-ticket income and benefits section fall into Quadrant III, the Upper “Cash Cow”. Divisions positioned in 3rd Quadrant of the BCG Matrix compete in a low-growth industry and have a high relative market share position. The non-ticket revenues and profits division generates cash more than its operating needs. It is the non-ticket income and benefits department that allows Spirit Airlines to maintain its competitive position in the marketplace, of offering the lowest base fare ticket value. As long as the non-ticket section’s revenues and profits continue to perform at this highly profitable level, Spirit Airlines will be able to maintain its strong position in the future. Although Spirit Airlines is innovative about its competition in using this division to generate significant portions of total revenue, this is a mature market because the firm has actively pursued this strategy and has been profitable (Eden, 1994). Attractive plans for divisions in the Cash Cow Quadrant include product development, diversification, retrenchment, and divestiture. Regarding Spirit Airlines non-ticket division, product development and diversification are the most advantageous strategies to pursue. On a BCG Matrix, the size of the divisional circles illustrates overall sales volume.

QSPM Analysis

Code sharing agreements are selected, acquisition of another airline, and the addition of a new route as viable strategies for Spirit Airlines to pursue. These strategies simultaneously combat the most heavily weighted threats and weaknesses, while capitalizing on Spirit’s strongest strengths and opportunities.

 External factors and the respective ratings from the IFE and EFE matrices quantitatively suggest codesharing, acquisition, and adding a new route are the most attractive strategies to pursue. The QSPM displays each policy regarding total relative attractiveness. Dealing with a codesharing strategy is most advantageous for the firm about existing strengths, weaknesses, opportunities, and threats. Additionally, a thorough Pro/Con Analysis has been conducted. The results supplemented the results indicated by the QSPM, affirming our decision to recommend a code sharing strategy.

Cultural Aspects Strategy

Cultural values include consist of beliefs, customs, norms, personalities, values, attitudes, heroines and heroes that exist in a company and that they describe the company. It is good to know that every organization have a culture that govern them and maintain their working relationships. Norms that can be emulated by the company define the firm’s success or failure.  It is crucial to look at the strategic management from the cultural way for the reason that the success and failure purely lies on the level of support that the strategies accrue firm’s culture. For instance if the strategies of the spirit airline company are supported by the cultural products, such as rites, rituals, ceremonies, stories, language, symbols, heroes and heroines then the managers often can make the changes more easily and with a lot of easiness. It is good to know that strategies which need less cultural changes can be more appealing because more changes take considerable time and effort to implement (Post, Frederick, Lawrence, & Weber, 1996). Therefore, for the Spirit Airlines firm to succeed, they should apply and take into consideration the cultural values of the area where the firm exists.

 

 

Grand Strategy Matrix Analysis

In 2013, the total airline revenues increased 5.06%, classifying it as a moderately rapid market growth industry. Spirit Airlines fell into 1st Quadrant of the Grand Strategy Matrix. The grand matrix is the most recommended strategies for companies in Quadrant I include in market growth Spirit Airlines has made plans to expand fleet size. This expansion will allow the firm to add services into new markets and extend operations to an underserved business environment that are already operating profitability (Lawrence, & Lorsch, 1986). There is a likelihood for serious market development due to the business’s assets and extensive amounts of available capital.

 

Recommendation

The most recommendable strategy to be used in the spirit Airline is the Grand strategy matrix analysis. It is the most an appropriate strategy since the company’s operation lies in its first quadrant, and it is this quadrant that any company has a room to extend its operations to areas that their services are profitable yet the company has not fully utilized the market share. Another important strategy is the one of scanning on the cultural aspects of the community from with the organization is operating. If the culture of a such an organization should be consider and relevant services be provided as per their needs, then the Spirit Airlines will continue dominating the market.

Critical Thinking

Analysis of the spirit Airstrip’s market is very important, it helps the company identify what its customers want and the way forward of achieving them. The use of the analysis matrices will help the company identify the best way to operate in order to realize its optimum results. The company should always consider all aspects of the community from where it operates and work to words achieving what the community needs.  The company on its strategic analysis should first consider the community’s opinion since it is through community opinion the company will understand the best way to present its products in an appropriate way that will attract the attention of the customer and thus more outcome. Analysis of the cultural aspects of the community marks the beginning of the company expanding its operation and profits.

In decision making, the company should not depend only one technique of strategic analysis techniques such BCG or any other mentioned strategy. The company should consider every important strategy mentioned and finally borrow concepts from the list from established. Combining the ideas obtained from the list will make the organization to come up with a hybrid technique of strategic planning. The implementation of such a plan will make the organization realize its full potential. Using of a single strategic analysis may provide a positive impact on the organization but the results would not be as good as the one used in the hybrid technique.

Conclusion

The spirit Airline will ever be on the lead if it implements all important aspects that are included in all strategic analysis strategies. The company should combine implement all positive aspects narrated in the BCG matrix and consider the cultural aspects to ensure that the company matches with the demand of the community. It should learn from the past experience and engineer a mechanism of fighting with any possible competition that may be coming into the market. The company will be on the lead if it maintains what its customers’ needs most

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Post, J. E., Frederick, W. C., Lawrence, A. T., & Weber, J. (1996). Business and Society: Corporate        strategy, public policy, ethics.

Lawrence, P. R., & Lorsch, J. W. (1986). Organization and environment: managing           differentiation and             integration (Harvard Business School Classics).

Eden, S. E. (1994). Using sustainable development: The business case. Global Environmental                    Change,             4(2), 160-167.

White, G. W. (2001). Business ethics. Journal of Business & Finance Librarianship, 6(4), 49-49.   

Kaplan, R. S., & Norton, D. P. (2001). The strategy-focused organization: How balanced scorecard         companies thrive in the new business environment. Harvard Business    Press.