Co-op Bank Essays

Co-op Bank Essays Co-op Bank Essay Co-op Bank Essay As the regulation had been more relaxed in the bank industry, cost accounting came more important due to aggressive competition among banks. Traditional volume based costing is obviously inappropriate. Therefore, the Bank changed to activity-based costing (BBC). We find that the implementation of activity-based costing (BBC) enhanced the ability to identify profitable products and customers but it had some weakness as follows: 1. BBC implementation was too costly, time-consuming and complex. 2. Too small sample from past data might affect the accuracy of its cost driver rate and not sufficient for decision making. . The 15% Of banks expense Ewing sustaining costs were not allocated to any products due to irrelevant causing too high administrative cost. Recommendations discussed include: 1. The bank should regroup 235 activities for those with the same characteristics. 2. The team should extend data collecting range since there were a few transactions occurred in three months and use the most recent data. 3. The bank should allocate sustaining cost by using dual-rate cost allocation method. 4. The bank should follow up the service quality to ensure that customers receive what it used to be. 5. The management should increase sales for profitable products. Then unprofitable products, we suggest the firm reduce non-valued added cost. The report also investigates the fact that the analysis conducted has limitations. Some of the limitations include: The article didnt state cost of BBC implementation so we couldnt compare between cost and benefit of using it. Contents Page Company Background Cost Structure Analysis of BBC implementation 3 Recommendation Conclusion 5 Appendices Exhibit 1 : Timeline of Co-pop Bank 6 Exhibit 2 : Major Resource Cost Pools Exhibit 3 : Personal Sector Products (classified by profitability) 7 References 8 The Co-operative bank was founded as an department of the Co-operative Wholesale Society (COWS) serving the treasury needs for its operation. Between late sass and 1 971, the deposit dramatically increased. As a result, the bank was separated to independent entity with COWS holding the whole issue of share capital. Then the first situation for new hired managers was to solve the problem which was from competitive pressure. They decided to focus on personal customers by introducing free banking for customers who maintained credit balances in their current accounts. In 1975, the banks broadened customer base for both assets and deposits as a settlement bank. During 1 sass and ass, the bank expanded the range of products and services for personal and corporate customers by introducing credit cards and launching many saving products to generate growth from internal. In 1988, since the Government deregulates the financial sector, many new players were inspired to move to this area. When there were many banks, customers were willing to switch banks and to take products from several institutions so the competition was very aggressive on price. To compete the market, Managing Director assigned Thomas, one of the management, to solve this problem. He thought that the bank should re-affirm the fundamental values which were Mission Statement and Ethical policy then restructure Co-pop Banks operations by settle Personal Customer Service center serving personal customers and Regional Processing Center serving corporate customers. Moreover, the bank increased cross-selling activities and offered new products such as credit cards, current account and services. Unfortunately this affected on high cost-to-income ratio. In late 1992, the ann. was about to restructure so Thomas launched Project SABER (Sales And Business REengineering) to improve the cost income ratio and the service to customers. This project was to address five corporate needs: 1. Overhead Reduction 2. Re-engineering of business processes, particularly those that did not add value to customers. 3. Product Profitability 4. Customer Profitability 5. Segment Profitability The existing cost system Co-pop Bank used was traditional cost system described as Expense was measured for geographic and departmental cost centers. Headquarter expense was allocated to operating segments by illume and size of business. Revenue measured from fee income and net interest. No estimation for costs of producing the revenue. After 3-month data collecting (March-May 1993) for analysis and decision making to restructure organization, the banks project team decided to implement BBC following the pilot project in check clearing center. BBC implementation steps are as follows: 1 . Identify resource cost pools and divided into three categories: operational staff, infrastructure and miscellaneous. (See the major resource cost pools in Exhibit 2) 2. Identify activities. 3. Match resource cost to activities. . Define activity cost driver and collect the quantities of each activity cost driver. 5. Calculate activity cost driver rate. 6. Trace activity cost to each product with 15% remaining to the sustaining cost. 7. Calculate product profitability. (See the profitable/unprofitable products list in Exhibit 3) After they implemented BBC, they use the result for decision making in many way. L. Product decision The bank used BBC allocating sustaining cost to analyze whether its product were profitable. Its targeted product were financial advice and new investment products which grew in deregulated area. Fortunately they were not successful as they hoped. However; there were high profitable products: Visa credit cards. II. Customer profitability With limited customers data, the BBC team extend the study to the customer- specific expenses based on sample of current accounts. They found that 55% of expense were related to processing transactions and the rest w ere maintaining costs. Revenue measurement was classified by each product for each customer. The analysis showed that current accounts were unprofitable because of low balance so the managers started to find the way to attract this reduce from customers. For Visa credit card, the team divided into two groups: profitable and unprofitable customers. The bank earned interest income from customers who had large unpaid balances and processing fee from customers who transacted frequently. Ill. Overhead reduction and business process reengineering From SABER project, the Co-pop Bank moved their focus to process-oriented organization. This urged managers to figure out which processes were value added to customers and which were not, and to improve efficiency for processes which could help the bank reduce cost and use extra capacity to enervate more income. In detail, analysis showed that high cost was from fixed cost so the bank solved this problem by outsourcing some areas such as computer development and ATM network to replace fixed cost with variable cost. IV. Sustaining Cost Since a large number amount of expenses classified as sustaining cost was a result of property and information technology resources not from products and customers, the management would have to concern more about making a decision on these issues. The main point was to lower cost-to-income ratio. Analysis of BBC implementation. Strength: Expenses were directly allocated to each cost center except for support department expenses. It could allocate cost to each product so cost of product became more accurate leading to identify profitable area and unprofitable area which increases accuracy when top management performed decision making. Weakness: As the project team collecting data for analysis from March to May, 1 993 (3 periods), that might affect the accuracy of its cost driver rate and not sufficient information for manager to do decision making. The 15% of banks expense being sustaining costs were not allocated to any products due to relevant causing too high administrative cost. If the bank can allocate BBC implementation was too costly, time-consuming and complex. The cost of using this BBC might be high comparing with the benefits from it. For example, when there are too many activities, it was time wasted for collecting cost driver data such as service hour. Sahara (1992) described step-by-step why bank should implement BBC: Identify and set up profit centers. Prepare product list associated to each profit center, product list related to activities and non-product list related to activities. Classify non-product list to activities by using unit-specific significance and organization-wide significance. Spread the former activities across all products Comparing Co-pop banks step with Sharmas step above, the banks BBC system was good but it needed some improvements for better efficiency. Our suggestions are as follow; 1. The team should extend data collecting range since there were a few transactions occurred in three months and use the most recent data. We recommend to collecting data from January to December 2012. 2. The bank should regroup 235 activities for those with the same characteristics. For example, Existing Activity Description Activity Cost Driver Clear debit items No. Of debits processed Clear debit and credit items No. Of debits and credits processed Clear credit items NO. Of credits processed Branch operations for debit items No. Of branch counter debits Branch operations for debit and credit items No. Of branch counter debits and credits Branch operations for credit items No. Of branch counter credits Customer inquiries No. F telephone minutes No. Of questions Customer correspondence No. Of customer letters 3. The bank should allocate sustaining cost by using dual-rate cost allocation teeth by classifying all costs into two cost pools: a fixed-cost cost pool and a variable-cost cost pool. Fixed-cost cost pool There are three steps to allocate fixed sustaining cost for bank products. 1 . Evaluate budget for fixed sust aining cost such as hardware maintenance and long term software license 2. Calculate cost allocation formula by using activity cost of each product. This formula will show proportion of all activities of all products. Proportion rate = activity for one product/ activities of all products. 3. Allocate fixed sustaining cost by resource product required. Allocation rate = Proportion rate * Budget for fixed sustaining cost Variable-cost cost pool Variable cost to activity cost driver ratio will generate constant value for period of time which consider significantly. When activity cost driver has changed, the ratio also changed. For example, we identify activity cost driver as the number of cheese book issued. If the number of cheese book issued is increased, relating cost increases. We use two ratios together to calculate total allocated cost for each product. 4. As Co-pop Bank implemented BBC system to reduce cost, they should follow up the service quality to ensure that customers receive what it used to be. This leads to customers loyalty. So, it becomes sustainable competitive advantage. 5. The management should increase sales for profitable products by offering promotions to attract more customers. Then unprofitable products, we suggest the firm reduce non- valued added cost.

Healthy food on the go chain companies at start up level Research Proposal

Healthy food on the go chain companies at start up level - Research Proposal Example Although the customer lost the case, it entailed negative publicity about MacDonald’s image causing serious damage that took time and huge amounts to repair. For some time, the company experienced drop in sales. In the past, fast food chains and restaurants continue to add healthier supplements to their recipes with success and sometimes with big misses. MacDonald’s for instance, flopped with its introduction of low-fat beef burger dubbed the McLean. Pizza on the other hand, failed with the addition of lower-fat pizza toppings in the Hut. Success started emerging with new entrants in the food industry such as EAT and Burger King started grilling chicken with much success. The company labeled the grilled chicken, BK Broiler now referred to as Tendergrill. People find it challenging to shop for healthy foods produced responsibly. Sometimes the labels are confusing and the lists of ingredients are complex with few directions on government regulations. It is challenging to people to identify true foods for families because the environment provides a tricky situation in most cases. Some fast food chains and restaurants take the initiative to provide reliably healthy foods that give priority to the health of their clients, the environment that they produce foods in, and producers. This is a family-owned coffee-roasting fast food located in the Pacific Northwest. The fast food offers sustainably and fairly produced foods and drinks to customers. The products benefit the consumers, the environment, as well as to the suppliers, a position taken by farmers. The company operates on the mission of supporting social equity and environmental sustainability using organic, trade, and shade-grown coffee. The health of the products offered by Grounds for Change restaurant is certified organic (Pinto, 2010, p. 42). Food materials come from farmers emphasizing on using

Critical Self-Analysis Paper Essay Example | Topics and Well Written Essays - 500 words

Critical Self-Analysis Paper - Essay Example I have been able to be more careful about the equation between the amount of calories I consume and the amount I spend (Hoeger and Hoeger 2012). I began this workout program in the recent past but I intend to continue to be a part of it in the future. I have already increased the number of times I visit the fitness center from three to five. Given the health record of my family, I believe that it is necessary for me to be a part of a strict regimen for fitness. My father does not smoke and his consumption of alcohol is limited; yet he suffers from high levels of blood sugar and cholesterol. My mother too suffers from high blood pressure. My workouts, as I mentioned, left me tired for a short duration, thereafter raising my energy levels. I found that this left my body in the perfect state for sleep as well. While my sleep used to be fitful earlier, I now have a good night’s sleep every day. The program has also streamlined my physical activity in such a way that I do not work out anytime near my sleep schedule. Maintaining the schedule of my natural body clock is something that this program has enabled me to do. It has at the same time, percolated down to my awareness of the necessity of sleep, something that work and stress often obfuscate (Hoeger and Hoeger 2012). My earlier lifestyle was more stress-filled leading to my inability to provide my body and mind with enough rest. This workout program has been very helpful in this regard. My diet before joining the workout program was not an unhealthy program. My family eats a diet comprising vegetables and adequate protein. Joining the program has thus, enabled the addition of exercise to a good balanced diet, thereby completing the two most important requisites of a healthy lifestyle. I have, however, reduced the intake of fats in my diet, restricting it to the consumption of healthy fats. The workout keeps me thirsty, enabling the consistent hydration of my body. As a result of all these changes, my

Relation between Error in Healthcare prescription and the inconsistency in Technological information Essay Example for Free

Relation between Error in Healthcare prescription and the inconsistency in Technological information Essay Relation between Error in Healthcare prescription and the inconsistency in Technological information Introduction Background Information            A lot of errors are occurring within the healthcare field lately. They are a result of many factors. Among the principle causes of error are related to wrong prescriptions. As indicated by Benjamin (770), one of the elements that is playing a key role ion this is the use of advanced technological methods. Computers have been used to aid in the computerized entry of prescription orders. Depending on the intensity of the prescription, they can result in serious injuries on the patient or even lead to fatality incidences. In turn, they lead to unnecessary court cases and legal suits that eventually cost many healthcare institutions and practitioners a lot of money that is paid to cater for the damages (Carroll 52-8). As such, there is a need to study the main causes of wrong prescription to ensure that such avoidable consequences are kept at their possible minimal rates. The main questions that will be answered in this study include:            What are the most common types of error in healthcare prescriptions?            What kind of information technology is used in the provision of proper prescription?            Are there specific errors that are related to inconsistently provided information in the same prescription order entry? Methodology            In this study, both primary and secondary data collection methods will be employed. It will include the use of surveys for the collection of first-hand information. In this sense questionnaires and interviews from the participants will also be used to gather information for the data. For accuracy and proper validation, these will be combined with secondary sources such as the national health statistics (Wu, Pronovost, Morlock 88). Data analysis            In this study, the..method of data analysis will be used. The method mainly†¦. Findings            Previous research performed on this topic revealed that†¦..Thus, in relation to this study, it was evident that†¦.. Conclusion It is important that the laid down professional ethics are adhered to in different fields. This is especially within the medical field where a slight mistake can lead to            devastating consequences. Therefore, healthcare providers are always obligated to use the knowledge that they acquired in their studies as well as new knowledge and practices appropriately. They should ensure that drugs are prescribed in the most proper ways to avoid errors. In particular, computerized drug entries should be counterchecked to eliminate disparities. However, owing to the continuous change in the nature of disease processes and hence the production of advanced drug formulas, there is need to conduct more research. These will provide more guidance to guarantee safe drug prescription by providers of healthcare services using new technological methods. References Benjamin, D. M. Reducing medication errors and increasing patient safety: case studies inclinical pharmacology. Journal of Clinical Pharmacology. 2003; 43:768–83. Carroll, P. Medication issues: the bigger picture. RN. 2003; 66(1):52–8. Wu, A. W., Pronovost, P., and Morlock, L. ICU incident reporting systems. Journal of Critical Care. 2006; 17(2):86–94 Source document

Arizona Needs to MIne Black Mesa :: Counter Argument

To the northeastern part of Arizona lay a debacle between the Native American citizens and a coal mining company known as Peabody Coal. In the seemingly unending conflict between the two groups, the problem began in 1968 when the Hopi and Navajo tribes both signed leases to Peabody Coal for mining. The contract included paying both tribes more than $1000 per acre-foot of natural aquifer water each year (Peabody Energy Online par 4). As time drew on, many indigenous people were alarmed that the water was carelessly being depleted from their land. Mining on Black Mesa should still be kept in progress because Peabody Coal helps support the fight against high-cost electricity, recent findings have stipulated that mining on Black Mesa is not as potentially harmful as many would like to think it is, and it offers jobs to the local economy. If a group of people give certain privileges to another, and the affects of it prove to help the economic society surrounded by it, there r eally is not a problem. Black Mesa, a natural resource for water is still being occupied by Peabody Coal, the world’s largest coal company. Located on the Navajo and Hopi Reservations of Northern Arizona, the mining company pumps water out of the Navajo Aquifer (N-Aquifer) which is mixed with grated coal known as slurry. The slurry is then pumped through a pipeline to Nevada’s Mohave Generating Station where it is converted into low-cost electricity (Peabody Energy Online par 3). Peabody has two mines on Black Mesa which includes the Peabody Coal Mine as well as the Kayenta Mine, both help to produce enough coal that supports 1.5 million people in the Southwest including Arizona, Nevada, and California (Peabody Energy Online par 8). The low-cost electricity is quite affordable for the people who live in the area. Peabody Coal has many coal mines around the world which help fight to keep the cost of energy down. Peabody Coal had stated that they do respect the values and beliefs of the native people that occupy the reservations. In that sense, the coal company consoled the U.S. Department of the Interior’s Office of Surface Mining for concerned questions about the usage of the groundwater. According to the OMS 2004 annual report, the N-Aquifer is in a stable condition, the quality is still excellent, and streams that were presumed to be in an unstable condition due to the mining, is not the cause:

People Naturally Walk in Circles Essay

The article  ¨People naturally walk in circles ¨ by Emily Sohn, represents an important research when trying to completely understand human behavior and specifically, to have an idea of how our brain manages decision making, order of actions, communication and reasoning. Humans, apparently start walking in circles when we cannot see an external focal point, the moon and the sun represent some examples. In fact, when I first read the article, I was hoping to find a concrete explanation for this problem. However, soon after I knew that so many factors came into play when trying to follow a straight path. When trying to associate these investigations with other aspects of our behavior, I found out that we always find ourselves in need of a sort of a guide in order to fallow a straight line, or in other words, to do what we think is right for our own benefit. Every time we are about to make a decision, we try to find a guide, sometimes this involves getting help from others. Usually, people who get help will most likely make a better decision rather the ones who worked alone without a guide. Personally, I really think this is a big concern, given that there are no answers for such theory. Although I expected to hear from a solution, I found the article very interesting in the end, this represents another big reason why our brain and our anatomy in general is so complicated, therefore studies like this one help us understand ourselves a little bit more, which leads to keep on investigating and learning from it.

Retirer - to Remove, Take off - French Verb Conjugation