How Organization Wide Change Is Best Carried Out Management Essay

How Organization Wide Change Is Best Carried Out Management Essay Both change and continuity may be desirable for the triumphant accomplishment of change. Picture upon the results of an global investigation the article suggests: 1. Company are deteriorating to fully consider the consequences and implications of change. 2. Many changes individual introduced as a result of contemporary management carry out have negative impacts. 3. The hypothesis of steady linear progress is not always justified. 4. Continuity and change are important complements, and more attention needs to be devoted to the continuity of valued relationships. 5. People should be given the liberty to decide the level and nature of modify required in relation to their exacting activities. 6. More holistic, thoughtful and people centered approaches to management are needed. To really appreciate organizational change and begin guide thriving change efforts, the change agent should have at least a broad understanding of the circumstance of the change effort. This includes considerate the basic systems and structure in organizations, as well as their typical terms and roles. This obligation applies to the understanding of leadership and management of the organizations, as well. That is why divide up courses in business often initially include a course or some discussion on organizational theory. This topic includes several links to help you gain this broad accepting. The following relations broadly reviewed in the following order might be helpful to establish some sense about organizations, and their leadership and management. Overview of Change Management There are several phrase regarding organizational change and development that look and sound a lot similar, but have diverse meanings. As a result of the importance of the topic, there seem to be increasingly different interpretation of some of this phrase, while others are used interchangeably. Without at least some sense of the difference between these phrases, connections about organizational change and development can be more and more vague, confusing and frustrating. Methodology of the study: What is Organizational Change: Typically, the concept of organizational transform is in stare to organization-wide change, as opposed to smaller changes such as addition a new person, modify a program, etc. Examples of organization-wide change might contain a change in mission, reformation operations, new technologies, mergers, major collaborations, rightsizing, new program such as total quality management, re-engineering, etc. Some experts refer to organizational alteration. Often this term designates a basic and radical reorientation in the way the organization operates. What is Provokes Organizational Change: Modify should not be done for the sake of change its a policy to accomplish some in general goal. Usually organizational change is aggravated by some major outside heavy force, substantial cuts in funding, address major new markets/clients, need for dramatic increase in efficiency/services, etc. Typically, organizations must commence organization-wide change to evolve to a similar level in their life cycle, going from a highly instant, capitalist organization to more steady and planned development. Change to a new chief executive can incite organization-wide change when his or her new and unique personality pervades the entire organization. Why is Organization-Wide Change Difficult to Accomplish: Typically there are tough resistances to modify. People are afraid of the unknown. Many people think things are by now just fine and dont appreciate the need for change. Many are inherently cynical about change, particularly from reading about the idea of change as if its a mantra. Many hesitations there are effective means to accomplish major organizational change. Often there are conflicting goals in the organization, to increase resources to accomplish the change yet concurrently cut costs to remain viable. Organization-wide change often goes against the very values detained dear by members in the organization, that is, the change may go alongside how members believe things should be done. Thats why much of organizational-change text discusses wanted changes in the development of the organization, including changes in members values and beliefs and in the way they ratify these values and beliefs. How Organization-Wide Change Is Best Carried Out: Winning change must engage top management, as well as the board and chief executive. Typically theres a champion who originally instigate the change by being creative, persuasive and consistent. A change agent role is usually responsible to translate the vision to a sensible plan and carry out the plan. Change is frequently best carried out as a team-wide attempt. Communications about the change should be common and with all organization members. To maintain change, the structure of the institute itself should be customized, including strategic plans, policies and procedures. This change in the structures of the organization typically involves an unfreezing, change and re-freezing procedure. The best approach to address resistances is from side to side increased and continued communications and education. For example, the leader should meet with all managers and employees to explain reason for the change, how it usually will be carried out and where others can go for supplementary information. A plan should be developed and communicate. Plans do change. Thats fine, but communicate that the preparation has tainted and why. forum should be held for organization members to state their ideas for the plan. They should be able to state their concerns and aggravation as fit. Some General Guidelines to Organization-Wide Change: In adding to the general strategy listed above, there are a few other basic guidelines to keep in mind. 1. Consider using a counselor. Ensure the consultant is highly knowledgeable in organization-wide change. Ask to see reference and check the references. 2. Widely communicate the possible need for change. Communicate what youre doing about it. Communicate what was done and how it work out. 3. Get as much advice as sensible from employees, including what they think are the problems and what should be done to determine them. If possible, work with a team of employees to manage the change. 4. Dont get wrap up in doing change for the sake of change. Know why youre making the change. What goal do you hope to achieve? 5. Plan the change. How do you plan to get to the goals, what will you need to reach the goals, how extended might it take and how will you know when youve reach your goals or not? Focus on the coordination of the departments/programs in your organization, not on each part by itself. Have someone in charge of the plan. 6. End up having every employee in the end exposure to one person, if possible, and they should know who that being is. Job images are often complained about, but they are useful in specifying who reports to whom. 7. Delegate decision to workers as much as possible. This includes yielding them the power and responsibility to get the job done. As much as possible, let them decide how to do the project. 8. The process wont be an it will take longer than you think. 9. Keep perspective. Keep listening carefully on meeting the needs of your consumer or clients. 10. Take care of yourself first. Organization-wide change can be extremely stressful. 11. Dont look for to control change, but rather to expect it, appreciate it and manage it. 12. Include conclusion in the plan. Recognize and celebrate your accomplishments. 13. Read some resources about organizational change, as well as new forms and structures. Finds of the study: Harley-Davidson copes against Suzuki to survive and take over in the market by the following way: Level 1- shaping and anticipating the future : At this level, Harley-Davidson start out with few assumptions about the business itself, what it is good at, and what the future will be like. Management generates alternate scenarios of the future, defines opportunities based on these possible futures, assesses its strengths and weaknesses in these scenarios changes its mission, measurement system etc Level 2 Harley-Davidson defining what business to be in and their Core Competencies: Many attempts at strategic planning start at this level, either assuming that: 1) The future will be like the past or at least expected 2) The future is personified in the CEOs of Harley-Davidson vision for the future 3) Management doesnt know where besides to start 4) Management is too scared to start at leve because of the changes needed to really meet future necessities 5) The only permission they have is to refine what job already exists. After a mission has been defined and SWOT strengths, weaknesses, opportunities and threats analysis is finished, an organization can then define its actions, goals, strategies. More information on this is in the next article, moving from the Future to your Strategy. Level 3 Reengineering (Structurally Changing) Your Processes: Either as a result or result of level one or two work Harley-Davidson independent action, level three work focuses on basically changing how work is consummate. Rather than focus on modest improvement, reengineering focuses on making major structural changes to everyday with the goal of considerably improving productivity, efficiency, quality or customer satisfaction. Level 4 Incrementally Changing your Processes: Harley-Davidsons changes are focus in making many small changes to obtainable work processes. Oftentimes organizations put in substantial effort into getting every employee focused on creation these small changes, often with substantial effect. Unfortunately, making improvement on how a buggy whip for horse-drawn carriages is made will hardly ever come up with the idea that buggy whips are no longer necessary because cars have been invented. To read more about organizational changes and how it compare to level , We trained an internal facilitator, helped them deliver teaching in a just-in-time fashion, and had them focus on specific technical problems. The team management shaped reduced early quality defects by 48%. The disadvantage of such an incremental move toward includes avoid structural, system-wide problems, and assume existing processes need modest development. In addition, using incremental approaches can be frustrating to employees and management if does not catch on in the organization. As a result of these disadvantages, many organizations experience a high risk of failure in the long run. Harley-Davidson also takes positive decisions in the following ways: These levels have much of the similar goal increasing customer fulfillment, doing things right the first time, greater employee efficiency, etc. in spite of these similarities, they differ considerably in the methods they use to achieve these goals. In Harley-Davidsons skill, companies that use this method tend to have a elevated need for change, risk-tolerant management, comparatively few constraint and have considerable agreement among its management on what to do. Types of industries include those whose environment requires rapid revision to fast-moving events, electronics, information systems and telecommunication industries. Companies using mostly incremental tools have management that perceives only a unassuming require for change, is relatively risk-avoidant, has many constraint on its events and only has a modest consensus among themselves on what to do. Harley-Davidson using level three methods. If they are considering changes in business lines, re-organizing by customer instead of by purpose, or making key changes in how the everyday employee is being paid, they are using method. regrettably, all of this argument hinges in managements belief about how much change is necessary. This belief often hinges on their often unaided beliefs of: 1) How well the organization performs compare to other organizations a not have of benchmarking. 2) What the future will be. As a result, my suggestion is that organizations conduct scenario/strategic planning movements anyway, even if they have by now decided that incremental method will be sufficient to solve their problems. This way organization can be aware of the limits of the lower-level methods they are using and understand when it is best to throw away these lower-level methods for something more substantive. Based on this exercise, comparison of existing inner processes with world-class examples benchmarking and market study, management may come to realize how much change is necessary. Goals Based on no matter what level work you are doing, the chance that are found need to be evaluate to determine which of them best suit the obtainable and future capability of the organization and offer the most bang for the buck in terms of development in your measures of success. In calculation, goals need to have the resources. Harley Davidson uses the slogan We will expand into the polystyrene market within the next five years and achieve 20% market share. Strategies Harley-Davidson focuses on what, strategies focus on how. Some examples include: We will re-engineer our research and development process We will evaluate and improve our sales and marketing department We will conduct a SWOT analysis and then define our core competencies Supplementary examples of strategy are included in the affecting from the future to your strategy. Wait a second. Arent goal and strategy really the same. They are in one sagacity as they both need to be SMART. As what you force guess, the goals of a level are achieve by create strategies at the minor levels. History of Harley Davidson: William S. Harley and Arthur Davidson make available to the public the first production Harley-Davidson motorcycle. The bike was built to be a racer, with a 3-1/8 inch bore and 3-1/2 inch stroke. The factory in which they worked was a 10 x 15-foot wooden shed with the words Harley-Davidson Motor Company crudely scrawled on the door. Arthurs brother Walter later joins their efforts. Harley-Davidson Motor Company is incorporated on September 17th. The stock is split four ways between the four founders, and staff size has more than doubled from the previous year to eighteen employees. Factory size is doubled as well. Dealer recruitment begins, targeting the New England region. In 1908, Walter Davidson himself scored a perfect 1000 at the annual Federation of American Motorcyclists (FAM) Endurance and Reliability Contest. Three days later, he set an FAM economy record at 188.234 mpg. Also in 1908, the first motorcycle sold for police duty was delivered to the Detroit police force. By 1909 Harley-Davidson was bustling, and the partners introduced the very first Harley-Davidson V-twin engine, a design that continues to thrive to this day. From that base, they built twin-cam V-twins, overhead-cam V-twins and 4-valve V-twinsall before 1920. The company exported its first bike, to Japan, in 1912. In 1916, the company began publishing a magazineThe Enthusiastfor its customers. Still available today, it stands as the longest continuously published motorcycle periodical in the world. During the war, the famous Wrecking Crew, Harleys team of factory riders, was nearly unbeatable in racing, and in 1921, the Crew won every race during the season. Although prime competitor Indian was two years older than Harley-Davidson, Harley was already becoming dominant, both in sales and racing. To further spur buyers, Harley introduced bike financing in 1923. Despite the fact that the country was in the throes of the Great Depression, in 1938 Harley-Davidson introduced the overhead-valve V-twin engine that would come to be known as the Knucklehead, as well as the sophisticated new bike that went around it. That engine and its refinements stuck around for 12 years. The same year, Harley licensed the manufacture of and supplied tooling for a Japanese version of the Harley, called Rikuo, for which the Japanese company Sankyo never paid any royalties. In 1937, Harleys factories were unionized. Mission of Harley Davidson Heritage Harley-Davidson fulfills dreams by providing all riders and customers with a friendly, comfortable and knowledgeable Harley-Davidson environment. We will consistently treat everyone with fairness and integrity and be genuinely interested in their satisfaction and in maintaining a long term relationship. Vision of Harley Davidson Our vision is to provide an unsurpassed experience for all motorcycle enthusiasts while providing fulfilling, worthwhile work and growth opportunities for our team of trained professionals. We strive for continuous improvement in everything we do. Our Work Values Integrity; Loyalty; Fairness; Competence; Sharing knowledge; Accomplishment. We ride with our customers and apply this deep connection in every market we serve to create superior value for all of our stakeholders. Harley-Davidsons values are These are our values. They are the heart of how we run our business. They guide our actions and serve as the framework for the decisions and contributions our employees make at every level of the Company. Tell the Truth. Be Fair. Keep Your Promises. Respect the Individual. Encourage Intellectual Curiosity. Harley-Davidsons financial reports: In Millions of USD (except for per share items) 3 months ending 2009-12-31 9 months ending 2009-09-27 3 months ending 2009-06-28 3 months ending 2009-03-29 3 months ending 2008-12-31 Revenue 893.65 3,888.26 1,277.61 1,395.32 1,342.92 Other Revenue, Total Total Revenue 893.65 3,888.26 1,277.61 1,395.32 1,342.92 Cost of Revenue, Total 743.86 2,738.14 953.45 907.33 959.56 Gross Profit 149.79 1,150.12 324.16 487.99 383.36 Selling/General/Admin. Expenses, Total 256.39 594.78 209.89 221.08 246.05 Research Development Depreciation/Amortization Interest Expense(Income) Net Operating Unusual Expense (Income) 122.34 130.33 43.52 34.86 0.00 Other Operating Expenses, Total Total Operating Expense 1,122.58 3,463.24 1,206.86 1,163.27 1,205.61 Operating Income -228.93 425.01 70.75 232.05 137.31 Interest Income(Expense), Net Non-Operating Gain (Loss) on Sale of Assets Other, Net Income Before Tax -238.10 416.76 69.53 223.74 138.04 Income After Tax -147.17 217.81 19.75 117.35 91.94 Minority Interest Equity In Affiliates Net Income Before Extra. Items -147.17 217.81 19.75 117.35 91.94 Accounting Change Discontinued Operations Extraordinary Item Net Income -218.70 163.58 19.75 117.35 77.81 Preferred Dividends Income Available to Common Excl. Extra Items -147.17 217.81 19.75 117.35 91.94 Income Available to Common Incl. Extra Items -218.70 163.58 19.75 117.35 77.81 Basic Weighted Average Shares Basic EPS Excluding Extraordinary Items Basic EPS Including Extraordinary Items Dilution Adjustment 0.00 0.00 0.00 0.00 Diluted Weighted Average Shares 232.72 234.43 233.52 232.65 232.04 Diluted EPS Excluding Extraordinary Items -0.63 0.93 0.08 0.50 0.40 Diluted EPS Including Extraordinary Items Dividends per Share Common Stock Primary Issue 0.10 0.30 0.10 0.10 0.33 Gross Dividends Common Stock Net Income after Stock Based Comp. Expense Basic EPS after Stock Based Comp. Expense Diluted EPS after Stock Based Comp. Expense Depreciation, Supplemental Total Special Items Normalized Income Before Taxes Effect of Special Items on Income Taxes Income Taxes Ex. Impact of Special Items Normalized Income After Taxes Normalized Income Avail to Common Basic Normalized EPS Diluted Normalized EPS -0.29 1.22 0.21 0.58 0.40 Findings of the study: There are no typical activities that always effectively address certain types of issues in organizations. Many times, the achievement of a project lies not with having chosen the perfect choice of actions, but rather with how honest and participative people were during the project, how much they learned and how open they were to altering their plans for change. However, there are some basic consideration that most people make when select from among the many choices for organizational expansion, or capacity building, actions. Considerations include: First, does the change-management method propose what organizational growth activities to use now, for example, the method of strategic management might propose that a SWOT analysis be done, strategic goals be recognized along with action tactics for each goal, and then achievement of the action plans be closely monitor. Frequent Monitoring the Dealers: Continuous monitoring system is very important to observe the market. Therefore Marketing Executives visit to the distributors should be more frequent like other competitor companies To Increase good relationship: Distributors are the main sources for the sales of motor cycle products. So my recommendation is that, the company should extend and increase good relationship with all dealers and salesmen. Price Stability: Presently because of Under rate process the distributors are facing different problems. As Under rateof product price creates a great problem in smooth selling, therefore price stability of all product is very much necessary. Availability of marketing executives: In present competitive market situation most of the competitive companies are engaging a big marketing executives to capture the market. In compare with that marketing executives are not sufficient to cover all of the distributors. So marketing executives availability should be ensured. Low price of products: At present the price of Harley-Davidsons products is relatively high in comparing to other competitor companies product. But to capture the market and reach their product to all kind of customers, my recommendation is that, Walton should reduce somewhat their product price. Recommendation of the study: 1. Standard Advertisement Advertisement plays a vital role to run any business well. But in my survey, I have found hat the advertisement of Harley-Davidsons is not satisfactory at all. So the company should pay more attention to advertising. 2. Quality of the products: From my survey I came to know that the of some products of Harley-Davidsons is very low. Some products create disturb even two or three months after selling. If Walton wants to exist in the market for long time and face the competition, it must concentrate on better quality products. Continuous customer contact and monitoring is essential. 4 Integrated Marketing Communication (IMC) must be used. 5. Customer attraction and retention policy should be modified. 6. To identify new area where the product is not available. At last I want to say that the company should practice Total quality management (TQM) properly. Conclusion: merely put, strategic planning determine where an organization is going over the next year or more, Harley Davidson how its going to get there and how itll know if it got there or not. The focus of a planned plan is usually on the whole organization, while the focus of a business plan is typically on a particular product, service or program. There are a variety of perspective, model and approaches used in strategic planning. The way that a strategic plan is residential depends on the nature of the organization leadership, culture of the organization, complexity of the organizations environment, size of the organization, expertise of planners, etc. For example, there are a variety of strategic planning models, as well as goals-based, issues-based, organic, scenario some would state that circumstances planning are more a method than model. goals-based planning is most likely the most common and starts with focus on the organizations mission and vision, values, goals to work toward the mission, strategies to achieve the goals, and act setting up who will do what and by when. Issues-based strategic planning often starts by examining issues facing in the Harley Davidson organization, strategies to address those issues, and action plans. Organic strategic planning might start by articulating the organizations vision and values and then action plans to achieve the vision while adhering to those values. Some planners prefer a particular approach to planning, eg, appreciative inquiry. Some plans are scoped to one year, many to three years, and some to five to ten years into the future. Some plans comprise only top-level in order and no action plans. Some plans are five to eight pages long, even as others can be significantly longer.

Ethics and Compliance Paper Essay

Starting in Seattle with one store, Starbucks has grown across the country and has become a household name delivering one of the best tasting coffees in existence. The first Starbucks opened in 1971, serving fresh roasted coffees. â€Å"Today, more than 15,000 stores in 50 countries, Starbucks are the premier roaster and retailer of specialty coffee in the world† (Starbucks, para. 7, 2010). The organization has been successful because of excellent managerial skills and implementing sound business decisions. Starbucks mission statement reads as follows: â€Å"to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time† (Starbucks, 2010, p. 1). The company values its relationships with communities, its stores, business partners, shareholders, and employees. Responsible ethical character and compliance helps the Starbucks brand protect its reputation. This paper will explain the role of ethics, procedures, Securities and Exchange Com mission (SEC) compliance, and evaluate the financial performance of the Starbucks organization. Ethics and Compliance Policies A successful organization builds its reputation on honesty and trust displayed to customers and business partners. Starbucks conducts business in an ethical manner that protects reputation and supports its culture by unceasingly striving to do what is right. Starbucks has a commitment to company values that successfully employs a Business Conduct Helpline and a Business Conduct Web-line for questions and guidance. Starbucks has incorporated an Anti-Retaliation Policy and does not tolerate retaliation against anyone reporting misconduct. The organization is an equal opportunity employer and use best practices in the hiring process. Business practices include and are not limited to accurate and truthful business transactions and comply with laws and regulations in any country the company operates in, and encourage partners to understand and adhere to the rules. Starbucks has an outside agent who facilitates and ensures an honest and ethical relationship with government officials throughout the international arena. Partners associated with the Starbucks brand must practice ethical conduct in sales, services, and promote fair competition. Matters dealing with conflicts of interest, gifts and entertainment, and securities are also addressed and implemented by the company. The company closely monitors proprietary information such as new ideas, company records including financial and audit details. Starbucks explains the Ethical Decision-Making Framework to identify ethical issues, give any possible solutions, pursue ideas from others, and take the best approach to resolve unethical matters and follow-up on results. The aforementioned framework empowers each Starbucks associate and affiliate to take responsibility to help maintain Starbucks ethical and honest reputation. â€Å"Ethical behavior is doing the right thing, and ethical dilemmas are everywhere in finance† (Keown, Martin, Petty & Scott, para. 1, 2005). Securities and Exchange Commission’s Regulations According to Ethisphere.com, (2010), Starbucks is one of the most ethical companies in the world for 2010. One of the key points to being an ethical business is to file reports for investors, government bodies, and the public to view. Starbucks complies in one way with the ethics policies set in place by the directors and organization by providing accurate data. The financial records of Starbucks are available to the investors, public and government in a timely manner via the website. The requirement set by the Securities Exchange Committee for a public business is to provide accurate reports in a timely manner. Starbucks publishes an annual report to the Starbucks website for anyone to find via the Internet. The annual report contains cash flow statements of income and expenses. The reports show that Starbucks is performing well even during a tough economic time. The annual report also contains a statement of Starbucks critical accounting policies. Starbucks believes that critical accounting practices are important. Starbucks considers its policies an asset impairment, stock-based compensation, operating leases, self insurance reserves and income taxes to be the most critical in understanding the judgments which are involved in preparing the consolidated financial statements, as stated in the annual report on Starbucks website, (2010). Financial Ratios for the Past Two Years Starbuck’s financial records allow investors, the government, and the public to have a firsthand look into the financial stability of the company. The financial records are available for several years; this allows the long-term financial success of the company to be easily accessible and available anyone wanting to know about the company. As an investor with interest in expanding into Starbucks there are several things the investor should look for. The current ratio allows investors the ability to measure how well a company can pay back short-term debt (Keown, Martin, Petty, & Scott, 2005). Starbucks ability to pay back debt in 2009, increased over 2008. In 2008 Starbucks closed several unprofitable locations (Starbucks Investor Relations- Financial Release, 2009) resulting in the decrease of overhead costs for those locations; allowing for additional funds and increasing the ability for Starbucks to pay back short-term debt. This increases the stability of Starbucks. The availability of extra funds allows Starbucks the opportunity to invest those funds in profitable time value investments. The funds could be invested in the company for improvements or costs for innovate new products. The extra funds could also pay necessary expenses outright. This allows the company to have lower amounts of outstanding credit or loans. The lower the amount of outstanding loans and credit allows for lower credit fees and lower costs. *Current Ratio 2009 2008 Current AssetsCurrent Liabilities 599.81581.0 269.82189.7 37.93% 12.32% Investors can also look at the Debt Ratio of Starbucks. The debt ratio shows the amount of debt a company carries in relation to their assets (Keown, Martin, Petty, & Scott, 2005). Companies must carry some debt to do business effectively. However, the company does not want to carry too much debt. Starbucks has expenses that must be paid for; some of these can be paid using credit. However, the company should ensure they are not charging unnecessarily. Starbucks must also show they are paying off their debt. Starbucks debt ratio decreased from 56.08% in 2008 to 45.38% in 2009 (Starbucks Investor Relations- Financial Release, 2009). Tends in the Ratios This shows a positive financial trend. The company had larger debt in 2008 and was able to repay a good portion of the debt without increasing debt somewhere else in the company, ultimately lower the overall debt of the company. This positive trend will increase the credit status of Starbucks. This will allow the company to have credit available if needed in the future. *Debt Ratio 2009 2008 Total DebtTotal Assets 2531.15576.8 3181.75672.6 45.38% 56.08% Investors can also look at the Return on Equity Ratio. The Return on Equity Ratio measure the amount of net income returned as a percentage of shareholder equity (Keown, Martin, Petty, & Scott, 2005). The main reason investors invest into companies is to make money!! If the investor does not make a sizable return on their investment, they may take their money and decide to invest elsewhere!! The investor wants to have confidence the company is going to make solid decisions that will increase the profitability of the shareholders. Starbucks has seen a decrease in Return on Equity. In 2008 Starbucks Return on equity was 21.10% and in 2009 it fell to 19.64% (Starbucks Investor Relations- Financial Release, 2009). This is a negative trend for Starbucks. Investors do not want to lose money! The decrease was minimal, yet it was a decrease. Overall the company has solid financials. This one negative issue can become a major problem if Starbucks continues to make decisions that allow shareholders equity to decrease. *Return on Equity 2009 2008 Net Income Common Equity 598.23045.7 525.82490.9 19.64% 21.10% *All numbers are in millions Conclusion In conclusion, Starbucks has proven itself to be a good investment for any investor. The organization has been in the business for 30 years and has showed substantial growth throughout. The organization started out with one location and has grown to over 15,000, which are located throughout the globe. The organization as a whole strives to uphold ethical behavior, not only set by the SEC but as well as for them. Not only does the organization uphold a high ethical behavior for them but as well only does business with those who have the same mentality. This was proven by being ranked one of the most ethical places to work and this was according to Ethisphere.com. Even though there was a small decrease in the return on equity from 2008 to 2009, which consequently could be because of the recession that most businesses have been affected by, Starbucks has still proven strong that the organization is still a good investment. The organization has shown an increase in profit and a decrease in debt. All and all, Starbucks is a good investment for anyone who is interested in getting into the business, which the organization has shown through good business decisions and ethical behaviors. Reference Keown, A. J., Martin, J. D., Petty, W. J., & Scott, D. F. (2005). Financial Management: Principles and Applications. Pearson Prentice Hall. Retrieved online on November 22, 2010 located at https://portal.phoenix.edu/classroom/coursematerials/fin_370/20101109/. Starbucks Investor Relations- Financial Release. (2009, 11 4). Retrieved November 20, 2010, from Starbucks: http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-newsArticle&ID=1492291&highlight= SEC. Gov, (2010). The Investor’s Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation. Retrieved on November 22, 2010 online located at http://www.sec.gov/about/laws/sea34.pdf Starbucks. (2010). About Us. Retrieved online on November 22, 2010 from http://www.Starbucks.com Starbucks website, (2010). Investor relations. Retrieved on November 22, 2010 from Starbucks website http://www.starbucks.com Starbucks website, (2010). Annual Report. Retrieved from Starbucks website on November 20, 2010: http://www.starbucks.com

Jp Morgan& Chase Annual Report

JPMorgan and Chase 2011 Financial Analysis Abbiton Mumba , Bomboma Douti, Thuy Doan, Tracy Nguyen [Type the company address] General Information: JPMorgan Chase (NYSE: JPM) is one of the oldest financial institutions in the United States with a history dating back over 200 years. JPMorgan and Chase is basically included Chase- the U. S. consumer and commercial banking businesses serve customers under the Chase brand. The consumer businesses include: Branch, ATM, telephone and  online banking, Credit cards, Small business, Home finance and  home equity loans, Auto finance, Education finance, Retirement & Investing, Retail Checking.The commercial banking businesses include: Middle Market, Corporate Client Banking, Commercial Real Estate, Business Credit, Equipment Finance, Commercial Term Lending, Community Development. – and JPMorgan which is J. P. Morgan clients include the world's most prominent corporations, governments, wealthy individuals and institutional investors. T hese businesses use the  J. P. Morgan brand: Investment Bank, Asset Management, Treasury Services, Worldwide Securities Services, Private Banking, Private Client Services, One Equity Partners.The corporate headquarters are in  270 Park Avenue,  Midtown,  Manhattan, New York City, New York, and the  retail  and  commercial bank  is headquartered in  Chase Tower,  Chicago Loop,  Chicago, Illinois, United States. The biggest event recently that JPMorgan anticipating in is acquisition of Washington Mutual in 2008. JPMorgan Chase raised $10  billion in a stock sale to cover write-downs and losses after taking on deposits and branches of Washington Mutual  Through the acquisition, JPMorgan now owns the former accounts of  Providian Financial, a credit card issuer Washington Mutual acquired in 2005.The company announced plans to complete the rebranding of Washington Mutual branches to Chase by late 2009. JPMorgan and Chase has the fiscal year end Dec 31. Interne t Information: The internet address of the corporation is www. jpmorgan. com. The website provides broad information. The most important section is the â€Å"Investor relation† section. We can find Financial Information including annual report/ proxy statements, SEC filing, earning release, credit releases, Investor presentations , shareholder information including stock price history.The purpose of website is describe the corporation, provide customer service information, promote the industry the corporate in, provide employment information, publicize corporate citizenship. The annual reports and other different reports can be found in the government website www. sec. gov. The primary Standard Classification (SIC) is 6021 6029 6712 and the Central Index Key (CIK) number assigned to corporations that file with the SEC is 19617. The latest form 10-K is dated February, 29th, 2012. Basically, JPMorgan and Chase have a moderate change in the price of the common stock over the las t two years.The biggest downward slope is between September 2011 to December 2011 and then it continues to be upward sloping. This fall price considers a narrow price range. Income Statement Compared to last year, Revenue growth decreased by -5. 3168%. A decreased of $5,460,000,000. The decline in net revenue from 2010 was driven by lower net interest income, securities gains, mortgage fees related income, and principal transactions revenue, partially offset by higher asset management, administration and commission revenue and higher other income.The increase in noninterest expense was driven largely by higher compensation expense, reflecting increased headcount. Despite the fact that the revenue lost than last year, over the last 5 year the company experienced the increased revenue due to net inflows to products with higher margins, higher deposit and loan balances, and the effect of higher average market levels. Growth in Revenue decreases than last year but Growth in profit incre ases by 9. 2458%. Although the Net Revenue of the current year is less than last year but Pre-provision profit on 2010 decreases from $16,639,000,000 to $7,574,000,000.That reason makes Growth in profit during the current year increased by 9. 2458%. Common-size Analysis: | Current Year| Previous Year| Revenue| 100%| 100%| Non-interest Expense| 64. 70%| 59. 59%| Interest Expense| 13. 99%| 12. 45%| Income Tax Expense| 7. 99%| 7. 29%| Income from continuing operations| 27. 51%| 24. 21%| Net Income| 19. 52%| 16. 91%| In general chase’s total non-interest expenses in 2011 rose 5. 11% higher than the total non-interest expense in 2010. The net income in 2010 seems lower than 2011 due to less operating and investment activities in 2010.Apart the item labeled other expenses and amortization of intangibles; all the other expenses were slightly higher. The increase in non-interest expense was driven largely by higher compensation expense reflecting headcount. The operating cost as part of the non-interest expense was definitely higher compared to 2010. The higher headcount visibly explains this increase. The provision for credit lost was 8. 41% lower than the 2010 provision. This was due to the amelioration of collection from customers. Consumer business modestly improved and mortgage net charge-offs and delinquencies improved.It is probably included in the item â€Å"other expenses† which were lower than 2010 but 6. 38% higher than 2009. Tax Burden: The total revenue in 2011 was 5. 62% lower than the revenue in 2011 but the bottom line was a lot higher than the previous year (2. 61%). The tax burden became consequently higher than the previous year; actually about 0. 7%. The increase in the tax burden due to the higher income in 2011 was definitely the result of the lower provision in credit loss in 2011. The provision in 2010 was about twice the provision in 2011, because of the lower interest revenue.Profitability in 2011 was better than the one in 2010 . As a percentage of total revenue, net income was 2. 61% higher than the one in 2010. Net income in 2011 was by itself 9. 2 % higher than the one in 2010. This was again the result of the lower provision for credit losses. The consumer portfolio also improved. The decline in 2010 was driven by lower net interest income, security gains, mortgage fees and related income. The other-than-temporary impairment losses are included in securities gains for the periods presented was $27million in 2011 and $94 million in 2010. Balance sheet JPMorgan Chase ; Co. s one of the oldest, largest and best-known financial institutions in the world. The firm's legacy dates back to 1799 and operates in more than 50 countries. JPMorgan and Chase is proved to be a mature firm with higher capital and liquidity. The Total Assets on the balance sheet grew $148,187 million, year ending Dec 31, 2011 from previous year ending Dec 31 2010 representing a percentage of 0. 07. The change in Assets were partly due to the acquisition of RBS Sempra on July 1, 2010 and the transaction in 2011 of RBS Sempra which is a commodities’ global oil, global metals and European power and gas businesses.This acquisition almost doubled the number of clients the firm’s commodities’ business can serve and has enabled the firm to offer clients more products in more regions of the world. J. P Morgan Chase completed purchase of the remaining interest in High bridge, which resulted in $228 million Capital surplus. Missing Common size analysis Cash Flow Statement: The cash flows resulting from operation activities in 2010 and 2011 were -$3752 million and $95,932 million. The cash flow resulting from investing activities in 2010 and 2011 was $54,002 million and -$170,752.The cash flow resulting from financing activities in 2010 and 2011was -$49,217 million and $107,706 million. There was a significant increasing in cash $ 32,035 in 2011 and a little $1,361 million in 2010. The beginning in cash balance was $27,567 million and $26,206 million respectively in 2011 and 2010. The ending cash balance in 2011 and 2010 were $59,602 million and $27,567 million. There were three significant sources of cash which were from a hug number of net change in deposit, proceeds from long-term borrowings and trust preferred capital debt securities and from net earnings and sell securities.The three most significant uses of cash were taken from acquisition of businesses or dispositions, purchase securities and loans out and proceed from sales, securitizations and pay downs of loans held-for-sale and net change in trading assets. Based on a comparison of the income statement to the statement of the cash flows, depreciation and amortization in intangible was add back to statement of cash flow and other-than-temporary impairment losses are included in securities gains for the periods presented, caused the greatest differences net income ( loss) and the cash flow from operation. Statement of cha nges in Stockholders’ Equity:The number of common shares outstanding has decreased over 3 years. On March 18, 2011, the Board of Directors approved a $15. 0 billion common equity (i. e. , common stock and warrants) repurchase program, of which $8. 95 billion was authorized for repurchase in 2011. The $15. 0 billion repurchase program superseded a $10. 0 billion repurchase program approved in 2007. During 2011 and 2010, the Firm repurchased (on a trade-date basis) an aggregate of 240 million and 78 million shares of common stock and warrants, for $8. 95 billion and $3. 0 billion, at an average price per unit of $37. 35 and $38. 9, respectively. The Firm did not repurchase any of the warrants during 2010, and did not repurchase any shares of its common stock or warrants during 2009. As of December  31, 2011, approximately 408 million unissued shares of common stock were reserved for issuance under various employee incentive, compensation, option and stock purchase plans, dire ctor compensation plans, and the warrants sold by the U. S. Treasury. Retained Earnings: fixed Dec 31 2011 Dec 31 2010 Beginning Retained earnings (2008) $54,013,000,000 Net Income $944. 00, 000 $1,001,000,000 Ending Retained Earnings $88,315,000,000 $73,998,000,000 From the number above we can conclude that Retained earnings increased in 2008 to $88,315,000,000 from $73,998,000,000 in 2010. Notes and supporting schedules to the financial statements. Cash and cash equivalents: the corporation define their cash equivalents by fund invested in US, T-bills, money market account, demand deposits or small-denomination time deposit and other investment with a maturity of 3 months or less when purchase.Account receivable: The corporation has the gross Account Receivable of $89,087 million current year and $102,413 million in 2010 reflects to 30. 9% and 31. 5% percentage of uncollectible. The lower the ratio the better, JPMorgan and Chase’s percentage uncollectible for 2011 is slight ly better than 2010. The results of the receivable turnover in 2011 and 2010 were 1. 48 times and 2. 69 times respectively. The higher the turnover is the better. However, the current year 2011 is lower than the previous year 2010.This is the result of the higher revenue in 2010. Inventories: N/A Property and Depreciation: The Corporation classified its property, plant and equipment into five categories: land, buildings, leasehold improvements, furniture and fixtures, hardware and software. JPMorgan Chase computes depreciation using the straight-line method over the estimated useful life of an asset. For leasehold improvements, the Firm uses the straight-line method computed over the lesser of the remaining term of the leased facility or the estimated useful life of the leased asset.None of the assets were recognized as impaired during the current year. The Accumulated Depreciation increased from $13,355,000,000 of last year to $14,041,000,000 of current year. Despite the land or co nstruction in progress, percentage of Fixed Asset Depreciation was approximately 23. 17% last year and 23. 26 % this year. For the percentage of fixed asset depreciation do not included land and construction in progress, there is slightly increased from last year to this year. The increase in premise and equipment was predominantly due to renovation of J.P Morgan Chase’s headquarters in New York City, the purchase of a building in London, retail branch expansion in the US, and investment in technology hardware and software, as well as other equipment. The increase was particularly offset by depreciation and amortization. This implies that in the future the company will spend more money on replacing the old equipment and that means it impacts on the capital expenditure on their financial statement. However, the company applies on the fixed asset turnover to generate revenue. The ratios are 7. 50 times last year and 7. 0 this year Operating and Capitalized leases: JP Morgan Cha se hasn’t declared any capitalized leases in the 2011 10K. We do have a section devoted to operating leases. Obligation associated with operating leases in 2011was $2,228 million, and expense associated with operating leases in the current year is $1,825 million. Payment for operating leases next year is $1,753 million. Long term debt: JPMorgan Chase issues long-term debt denominated in various currencies, although predominantly U. S. dollars, with both fixed and variable interest rates.Included in senior and subordinated debt below are various equity-linked or other indexed instruments, which the Firm has elected to measure at fair value. Changes in fair value are recorded in principal transactions revenue in the Consolidated Statements of Income. The following table is a summary of long-term debt carrying values (including unamortized original issue discount, valuation adjustments and fair value adjustments, where applicable) by remaining contractual maturity as of December 31, 2011. Most debts were JPMorgan Chase Capital.The five largest debt were JPMorgan Chase Capital X $1,016 million in amount with the rate of 7%, JPMorgan Chase Capital XXV $2,292 million in amount with the rate of 6. 8% rate, JPMorgan Chase Capitals XXVI $1,815 million in amount with the rate of 8. 0% , JPMorgan Chase Capitals XXVIII $1,500 million in amount with the rate of 7. 2%, JPMorgan Chase Capitals XXIX $1,500 million in amount with the rate of 6. 7%. Those debts aren’t due until next 30 years. JPMorgan and Chase don’t have any significant debt payment outstanding.Pension Plans: JPMorgan and Chase recognize in its statement of financial position the funded status of a benefit plan; measure defined benefit plan assets and obligations as of the end of the employer’s fiscal year (with limited exceptions) and recognize as a component of other comprehensive income, net of tax, the gains or losses and prior service costs or credits that arise but are not rec ognized as components of net periodic benefit costs pursuant to prior existing guidance. JPMorgan and Chase don’t have Defined Contribution Pension expense but Defined Benefit Pension with the expense of 11,808 billion.Defined benefit obligation in the current year: $13461 millions for U. S and Non U. S plans. Fair value of the retirement plan assets at the end of the current year: At December 31, 2011 defined benefit pension plan amounts not measured at fair value included $50 million. At the end of December 2011, the accumulated defined benefit pension obligation had a balance of ($9,008) million, but in my opinion, the plan is well funded. At December 2011, the plan was said to have 2. 6 billion balance overfunded. It is clearly stated in the notes that by December 31st 2011, the U. K plan was $33 million unfunded.Amount recognized on the balance sheet related to pension: $ 1,429 million funded in the U. S, and a non-U. S balance of 160 million. The amount contributed to t he defined benefit pension plan in 2011 was 37 million for the U. S and 169 million for the Non-US. $540 million were paid to retirees in the U. S whereas 93million were paid to non U. S in 2011. Investments in the defined benefit pension fund are the Firm’s U. S. defined benefit pension plan assets are held in trust and are invested in a well-diversified portfolio of equity and fixed income securities, real estate, cash and cash equivalents, and alternative investments (e. . , hedge funds, private equity, real estate and real assets). Non-U. S. defined benefit pension plan assets are held in various trusts and are also invested in well-diversified portfolios of equity, fixed income and other securities. Assets of the Firm’s COLI policies, which are used to partially fund the U. S. OPEB plan, are held in separate accounts with an insurance company and are invested in equity and fixed income index funds. The investment policy for the Firm’s U. S. efined benefit p ension plan assets is to optimize the risk-return relationship as appropriate to the needs and goals using a global portfolio of various asset classes diversified by market segment, economic sector, and issuer. Assets are managed by a combination of internal and external investment managers. Periodically the Firm performs a comprehensive analysis on the U. S. defined benefit pension plan asset allocations, incorporating projected asset and liability data, which focuses on the short-and long-term impact of the asset allocation on cumulative pension expense, economic cost, present value of contributions and funded status.Postretirement Benefits other than Pensions: there is no expense associated with non-pension post-retirement benefit. Benefits obligation for the non-pension post-retirement benefit plan was $999 million in 2011. Fair market value of assets held for non-pension post-retirement benefits plan was 1,435 million in 2011. The plan is adequately funded. The fair market valu e of the post-retirement benefit plan has enough resources to operate. Amount recognized on the balance sheet related to the non-pension post-retirement plan was $436 million.Amount contributed to non-pension post retirement benefits during the current year is $2 million, and amount of non-pension post retirement benefits paid to retirees during the current year is $26 million. Income Taxes: The income tax expense for the current year in the income statement is $7,773 million and $1,693 million of the current year’s income tax expense has been deferred to future periods. The effective tax rate for current year is 29. 1%. There are two types of Income taxes disclosed on the notes: Gross deferred tax asset is $27,632 million and Gross deferred tax liability is $12,856 million.As the results, the Net deferred tax amount is $14,776 million. The significant activities resulted in recognition of deferred tax liabilities that are not yet due to a tax authority are depreciation and a mortization, leasing transactions, non-US transaction and others. On other hand, the significant activities led to the recognition of deferred tax assets will be utilized in the future are allowance for loan losses, employee benefits, accrued expenses and others, non-US operations, tax attribute carry forwards. Stock-Based Compensation: MISSING Segmental and Geographic Information: JPMorgan Chase & Co. JPMorgan Chase) is a financial holding company. The Company is a global financial services firm and a banking institution in the United States, with global operations. The Company is engaged in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, asset management and private equity. JPMorgan Chase’s principal bank subsidiaries are JPMorgan Chase Bank, National Association, a national bank with the United States branches in 23 states, and Chase Bank USA, National Association, a national bank that is the Company’s credit card-issuing bank.The bank and non-bank subsidiaries of JPMorgan Chase operate nationally, as well as through overseas branches and subsidiaries, representative offices and subsidiary foreign banks. One of the Company’s principal operating subsidiaries in the United Kingdom is J. P. Morgan Securities Ltd. , a subsidiary of JPMorgan Chase Bank; N. A. JPMorgan Chase’s activities are organized into six business segments, as well as Corporate/Private Equity. JPMorgan Chase’s activities are organized into six business segments, as well as Corporate/Private Equity.The Company’s wholesale businesses comprise the Investment Bank (IB), Commercial Banking (CB), Treasury & Securities Services (TSS) and Asset Management (AM) segments. The Company’s consumer businesses comprise the Retail Financial Services (RFS) and Card Services & Auto (Card) segments. Contingencies: NEED TO FIX Probable Litigation: The Firm has established reserves fo r several hundred of its currently outstanding legal proceedings. The Firm accrues for potential liability arising from such proceedings when it is probable that such liability has been incurred and the amount of the loss can be reasonably estimated.The Firm evaluates its outstanding legal proceedings each quarter to assess its litigation reserves, and makes adjustments in such reserves, upwards or downwards, as appropriate, based on management’s best judgment after consultation with counsel. During the years ended December 31, 2011, 2010 and 2009, the Firm incurred $4. 9 billion, $7. 4 billion and $161 million, respectively, of litigation expense. There is no assurance that the Firm’s litigation reserves will not need to be adjusted in the future.Mortgage Foreclosure Investigations and litigation: JPMorgan Chase and four other firms have agreed to a settlement in principle (the â€Å"global settlement†) with a number of federal and state government agencies, in cluding the U. S. Department of Justice, the U. S. Department of Housing and Urban Development, the Consumer Financial Protection Bureau and the State Attorneys General, relating to the servicing and origination of mortgages. The global settlement, which is subject to the execution of a definitive agreement and court approval, calls for the Firm to, among other things: (i) make cash payments of approximately $1. billion (a portion of which will be set aside for payments to borrowers); (ii) provide approximately $500 million of refinancing relief to certain â€Å"underwater† borrowers whose loans are owned by the Firm; and (iii) provide approximately $3. 7 billion of additional relief for certain borrowers, including reductions of principal on first and second liens, payments to assist with short sales, deficiency balance waivers on past foreclosures and short sales, and forbearance assistance for unemployed homeowners. If the Firm does not meet certain targets for provision o f the refinancing or other borrower relief within certain prescribed time periods, the Firm will instead make cash payments. ) In addition, under the global settlement the Firm will be required to adhere to certain enhanced mortgage servicing standards. Overdraft Fee/Debit Posting Order Litigation: JPMorgan Chase Bank, N. A. has been named as a defendant in several purported class actions relating to its practices in posting debit card transactions to customers’ deposit accounts.Plaintiffs allege that the Firm improperly re-ordered debit card transactions from the highest amount to the lowest amount before processing these transactions in order to generate unwarranted overdraft fees. Plaintiffs contend that the Firm should have processed such transactions in the chronological order they were authorized. Plaintiffs seek the disgorgement of all overdraft fees paid to the Firm by plaintiffs since approximately 2003 as a result of the re-ordering of debit card transactions.The cl aims against the Firm have been consolidated with numerous complaints against other national banks in multi-District litigation pending in the United States District Court for the Southern District of Florida. The Firm’s motion to compel arbitration of certain plaintiffs’ claims was initially denied by the District Court. On appeal, the United States Court of Appeals for the Eleventh Circuit vacated the District Court’s order and remanded the case for reconsideration in light of a recent ruling by the United States Supreme Court in an unrelated case addressing the enforcement of an arbitration provision in a consumer product agreement.The Firm has reached an agreement in principle to settle this matter in exchange for the Firm paying $110 million and agreeing to change certain overdraft fee practices. The settlement is subject to documentation and court approval. Service Members Civil Relief Act and Housing and Economic recovery Act Investigations and litigation : multiple government officials have conducted inquiries into the Firm’s procedures related to the Service Members Civil Relief Act (â€Å"SCRA†) and the Housing and Economic Recovery Act of 2008 (â€Å"HERA†).These inquiries were prompted by the Firm’s public statements about its SCRA and HERA compliance and actions to remedy certain instances in which the Firm mistakenly charged active or recently-active military personnel mortgage interest and fees in excess of that permitted by SCRA and HERA, and in a number of instances, foreclosed on borrowers protected by SCRA and HERA. The Firm has implemented a number of procedural enhancements and controls to strengthen its SCRA and HERA compliance.In addition, an individual borrower filed a nationwide class action in United States District Court for South Carolina against the Firm alleging violations of the SCRA related to home loans. The Firm agreed to pay $27 million plus attorneys’ fees, in addition t o reimbursements previously paid by the Firm, to settle the class action. Additional borrowers were subsequently added to the class, and the Firm agreed to pay an additional $8 million into the settlement fund. The court entered a final order approving the settlement in January 2012. Reasonable Possible:The Firm believes the estimate of the aggregate range of reasonably possible losses, in excess of reserves established, for its legal proceedings is from $0 to approximately $5. 1 billion at December 31, 2011. This estimated aggregate range of reasonably possible losses is based upon currently available information for those proceedings in which the Firm is involved, taking into account the Firm’s best estimate of such losses for those cases for which such estimate can be made. For certain cases, the Firm does not believe that an estimate can currently be made.The Firm’s estimate involves significant judgment, given the varying stages of the proceedings (including the f act that many are currently in preliminary stages), the existence in many such proceedings of multiple defendants (including the Firm) whose share of liability has yet to be determined, the numerous yet-unresolved issues in many of the proceedings (including issues regarding class certification and the scope of many of the claims) and the attendant uncertainty of the various potential outcomes of such proceedings.Accordingly, the Firm’s estimate will change from time to time, and actual losses may be more than the current estimate. Auction Rate Securities Investigations and Litigation: Beginning in March 2008, several regulatory authorities initiated investigations of a number of industry participants, including the Firm, concerning possible state and federal securities law violations in connection with the sale of auction-rate securities.The market for many such securities had frozen and a significant number of auctions for those securities began to fail in February 2008. Th e Firm also faces a number of civil actions relating to the Firm’s sales of auction-rate securities, including a putative securities class action in the United States District Court for the Southern District of New York that seeks unspecified damages, and individual arbitrations and lawsuits in various forums brought by institutional and individual investors that, together, seek damages totaling approximately $50 million.The actions generally allege that the Firm and other firms manipulated the market for auction-rate securities by placing bids at auctions that affected these securities’ clearing rates or otherwise supported the auctions without properly disclosing these activities. Some actions also allege that the Firm misrepresented that auction-rate securities were short-term instruments. The lawsuits are being coordinated before the federal District Court in New York.Additionally, the Firm was named in two putative antitrust class actions. The actions allege that the Firm, along with numerous other financial institution defendants, colluded to maintain and stabilize the auction-rate securities market and then to withdraw their support for the auction-rate securities market. In January 2010, the District Court dismissed both actions. An appeal is pending in the United States Court of Appeals for the Second Circuit.Interim (Quarterly Reporting: During the current year 2011, the company’s revenue for 1st quarter is $25,221 million, 2nd quarter is $26,779 million, 3rd quarter is $23,763 million and 4th quarter is $21,471 million. There is a significant fluctuation in quarterly data because It experienced a decrease in revenues during the current year from 1st quarter to 4th quarter. Report of independent Auditors: Auditor is PricewaterhouseCoopers LLP located at 300 Madison Avenue New York, NY 10017. The auditor believes that the financial statements were presented fairly.Their opinion is stated as follow: In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, changes in stockholders' equity and comprehensive income and cash flows present fairly, in all material respects, the financial position of JPMorgan Chase ; Co. and its subsidiaries (the â€Å"Firm†) at December 31, 2011 and 2010, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.Also in our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Report of Internal control: Management of JPMorgan Chase ; Co. (â€Å"JPMorgan Chase â€Å"or the â€Å"Firm†) is responsible for establishing and maintaining adequate internal control over financial reporting. The same authority, Management of JPMorgan Chase ; Co. â€Å"JPMorgan Chase â€Å"or the â€Å"Firm†) is responsible for maintaining adequate internal control over financial reporting. The auditor does believe that the corporation maintained adequate internal control over financial reporting. Here is their opinion: â€Å"in our opinion, the Firm maintained, in all material respects, effective internal control over financial reporting as of December 31, 2011, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Ratio Analysis Analysis of profitability: The profit margins were 16. 1% and 19. 52 % to the following 2010 and 2011 year end. The increase in profit margin due to the advantage of the allowance for losses, noninterest revenue and interest expense. Interest income and interest expense is recorded in the Consolidated Statements of Income and classified based on the nature of the underlying asset or liability. Interest income and interest expense includes the current-period interest accruals for financial instruments measured at fair value, except for financial instruments containing embedded derivatives that would be separately accounted for in accordance with U.S. GAAP absent the fair value option election; for those instruments, all changes in fair value including any interest elements, are reported in principal transactions revenue. For financial instruments that are not measured at fair value, the related interest is included within interest income or interest expense, as applicable. The corporation has the return on assets of 0. 86% in 2011 and 0. 79% in 2010. The returns on assets were significant low compare to return on stockholder’s equity of 10. 5% in 2011 and 9. 66% in 2010. In general, JPMorgan and Chase is a big corporation, but they had a tight controlled and managed very well. Therefore, their earning is improved and very stable in recent year although the economy looks doom. Earnings per share (â€Å"EPS†) is calculated under the two-class method under which all earnings (distributed and undistributed) are allocated to each class of common stock and participating securities based on their respective rights to receive dividends.JPMorgan Chase grants restricted stock and RSUs to certain employees under its stock-based compensation programs, which entitle recipients to receive non-forfeitable dividends during the vesting period on a basis equivalent to the dividends paid to holders of common stock; these unvested awards meet the definition of participating securities. Options issued under employee benefit plans that have an anti-dilutive effect are excluded from the computation of diluted EPS. EPS in 2011 was $4. 50 compare to 2010 of $ 3. 98. This increase is the result of increasing in net income in 2011 due to bet ter management.The corporation does disclose the diluted EPS with $4. 48 in 2011 and $3. 96 in 2010. Cash dividend per share in 2011 was $ 0. 94 dollar per share and $0. 36 dollar per share in 2010. Dividend payout ratio for 2010 was 16% and 35% in 2011. Price/ Earning ratio also improves between 2010 with 9. 26 times and 2011 with 9. 62 times. In the past decade, the average P/E ratio for Major Corporation has ranged from 14 to 25. JPMorgan and Chase’s P/E was below the range about 5 points. However, we can’t say that JPMorgan and Chase is no t growing.JPMorgan Corporation is huge plus with the gloomy economy right now, but this corporation still generates profitability while other corporation in the same industry is struggling. This tell us that JPMorgan is a stable for a long run. Analysis of Liquidity: JPMorgan and Chase had the current (working capital) ratio in 2011 of 1. 55:1 and 1. 71:1 in 2010. Net working capital was $964,168 million in 2011 and $932,220 in 2 010. Quick (Acid –Test) ratios were 0. 28:1 in 2011 and 0. 31:1 in 2010. The liquidity position of the corporation weakened a little in 2011.Although there was an increase in cash and receivables in 2011, there was less account receivable compared to 2010. There was also a large increase in current liabilities in 2011, because of the increase in deposit. Based on this, JP Morgan Chase should be able to meet its current obligation even though the ratio was a little down compare to the previous year of 2010. Since it is a big and sustainable corporation in the financial industry, there is rarely a change for them to have a problem with the working capital. Analysis of Solvency: Debt to total Assets in 2011 was 91. 8% and 91. 6% in 2010.There is not much difference between the debt to assets ratio showing the amount of leverage JP Morgan Chase used to finance its operations between the year 2011 and the year 2010.. The rule of thumb is to make sure that the bottom which is the a ssets is larger than the top which is the liabilities. The ratio of 91. 8% percent for the year 2011 and 91. 6% for the year 2010 at first glance would give an impression of a company which is over leveraged. This is not the case, JPMorgan Chase Debt to Assets ratio is very consistent with the banking industry standards especially banks of JPMorgan Chase size.Banks make money by lending other peoples money. It never hurts however, to bring the ratio a little lower as it would give the bank more space to maneuver should there be a financial melting in the general economy like the one experienced in 2008. Potential lenders would prefer the ratio to be as lower as much as possible because that would show that the company has more Assets than Liabilities which can help the company pay its debt when it’s due or assets that can be liquidated to pay its lenders should the company end up in liquidation. Missing Time Interest Earned Ratio Industry Competitor Comparison:A close competi tor of JPMorgan Chase is Bank of America Corporation. The difference between these large banks is that Bank of America is primarily a bank operating in other financial services while J. P. Morgan is an investment firm also operating as a bank. It has offices in more than 60 countries of the world. Both companies have relatively similar gross profit percentages; but percentages changed if we go down to income from continuing operations of both companies. As we see on the table 3, we know that the Net income from continuing operations of JP Morgan Chase is greater than Bank of America Corporation.This shows that Chase is good at managing costs on other income and expenses besides selling general and administrative and others. On the balance sheets, we both see the similar common-size on total assets of both companies. Another difference between two of them is the profitability. As we see on Table 3, profit margin of Chase bank is higher due to net income (gain) while Bank of America e xperiences a net loss. Return on asset for both companies are pretty low on last year. Return on equity for Chase bank is higher that means the shareholders earn a sufficient return on their equity investment.The major different on Profitability ratio between two companies is the dividend payout ratio which is the Bank of America is way too high. It indicates the company pays high dividends whose stock price is temporary not good. Moreover, a high dividend payout ratio can also point to a mature company with few growth opportunities. On other hand, Chase bank has low dividend payout ratio that we know Chase is a fast-growing company whose shareholders willingly forego cash dividends, because the company uses the extra money to generate higher returns and, in turn, a high stock price.As a conclusion, JP Morgan Chase is more profitable than Bank of America Corporation. Compared on the liquidity ratios, both companies meet their requirements on pay their liabilities on time. If we take down to Acid test, we easily understand Bank of America has more liquid assets available to pay its current debts. On the debt ratio, both companies’ ratios are over 0. 5 which means both companies’ assets are finances through debts. On the Time interest earned ratio, JP Morgan Chase is little bit higher which is better since Bank of America Corporation Company has more debts.Last but not least, Operational ratios are very similar and they both efficiently know how to use the assets on sales. As the whole comparison between too biggest bank firms, I think they are overall doing very well on managing their companies. Taking on to the details, JP Morgan Chase has more probability on sales. Bank of America is still doing fine but if I prefer invest on JP Morgan Chase’ stock. |   JP Morgan ;Chase |   | Bank of America Corp. |   | Income Statement Common-Size Data|   |   |   |   | Gross Profit/Sales| 92. 0%|   | 95. 6%|   | Income from Continuing O perations/Sales| 19. 5%|   | 7. %|   | Balance Sheet Common-Size Data|   |   |   |   | Current Assets/Total Assets| 19. 5%|   | 42. 5%|   | Current Liabilities/Total Assets| 71. 4%|   | 74. 1%|   | Liabilities/Total Assets| 91. 9%|   | 89. 2%|   | Equity/Total Assets| 8. 1%|   | 10. 8%|   | Profitabilty Ratios|   |   |   |   | Profit Margin| 19. 5%|   | 1. 3%|   | Return on Assets| 0. 9%|   | 0. 1%|   | Return on Equity| 10. 6%|   | 0. 7%|   | Dividend Payout Ratio| 18. 0%|   | 400. 0%|   | Liquidity Ratios|   |   |   |   | Current Ratio| 0. 62 :1|   | 0. 64:1|   | Quick Ratio| 0. 27 :1|   | 0. 2:1|   | Solvency Ratios|   |   |   |   | Debt/Total Assets| 0. 92|   | 0. 89|   | Times Interest Earned (Accrual)| 3. 00|   | 1. 12|   | Operational Ratios|   |   |   |   | Receivable Turnover| 1. 5|   | 1. 5|   | Inventory Turnover| N/A|   | N/A|   |  © 2008 William R. Pasewark|   |   |   |   | | | | | | Making Decision based on annual report Total net revenue for 2011 was $97. 2 billion, a decrease of $5. 5 billion, or 5%, from 2010. Results for 2011 were driven by lower net interest income in several businesses, lower securities gains in Corporate/Private Equity, ower mortgage fees and related income in RFS, and lower principal transactions revenue in Corporate/Private Equity. These declines were partially offset by higher asset management fees, largely in AM. Investment banking fees decreased from 2010, predominantly due to declines in equity and debt underwriting fees. The impact from lower industry-wide volumes in the second half of 2011 more than offset the Firm's record level of debt underwriting fees in the first six months of the year. Advisory fees increased for the year, reflecting higher industry-wide completed M&A volumes relative to the 2010 level. Management discussion and analysis) Revenues increased from 2009 to 2010 by 2. 25 %. The increase c ame in part from noninterest income, securities and principal transactions. The economy will be the most important factor on the banking industry in the next year. The mortgage industry is still hurting even if it shows some signs of improvement. JP Morgan showed a net profit of at 5 billion this first quarter of the year, but it is hard to predict if the total revenue at the end of the year would match the previous year’s revenues.Next year’s revenue is probably going to be in the 100-103 billion range. JP Morgan Chase’s income comes from diverse business units. The total revenues increased 2. 25% from 2009 to 2010. The increase came from asset management, the noninterest revenue, the security gains and the item marked other income. Also the reduction in the allowances for credit losses for mortgages and credit cards as a result of improved delinquency trends and lower estimated losses reflected the net revenue increase. Principal transactions revenue increased compared with 2009.This was driven by the Private Equity business, which had significant private equity gains in 2010, compared with a small loss in 2009, reflecting improvements in market conditions. Net income next year could be in the 19 to 20 billion range. In my opinion, JP Morgan chase’s assets will have a stable growth in the next few years. Despite the visible improvement in the economy, the banking industry is not likely to record rapid growth in the next few years. The recovery is still weak; investments are still lagging and so directly affecting the books of the banks. I expect the total Assets to increase a little more next year based on the mprovement in the broad United States and World economy. My belief is based on the fact that JPMorgan performed better than the average bank in 2010 and 2010 arguably the west years for any business in recent history due to the subprime mortgage melt down of the financial markets. The last few years so a high number of unemp loyment hitting 10% before starting drop later part of 2011 and the highest number of mortgage foreclosure. The mortgage industry as bottomed and the market is already healing and banks like Wellfargo are already posting stronger than expected results due to their mortgage based assets performing better than expected.JPMorgan Chase’s balance sheet looks relatively strong and do not show that it will need additional financing next few years. It has deposits in excess of $85,279,000,000 and it is sitting on cash of $59,602,000,000. JPMorgan Chase should not have a problem raising funds from the Capital market should they need additional financing based on the strength and growth of its balance sheet. The strength that JPMorgan chase has is the relative ability and strength of deposits which Chase can use to fund its business.This is one advantage banks like Lehman brothers that went under during the financial crisis may not have had. The three areas we see as the strongest aspe ct of JPMorgan Chase is high balance of deposits with the bank in the amount of 85,279,000,000 which shows the relative confidence the market in JPMorgan. Cash deposits are particularly important to banks because they use this morning to lend out for interest and other related fees. The 2011 balance show retained earnings in the amount $88,315,000,000 and retained earning $73,998,000,000 on the 2010 balance sheets respectively.This is important because it shows that JPMorgan Chase have enough resources to fund it operations and enough left over to reinvest into the business for future growth. The Debt to Total Asset ratio was 91. 8% 2011 and 91. 6% 2010 respectively showing that JPMorgan Chase has more Assets than Liabilities which should help the firm raise financing from the markets . should there be a need. This always a good indication to the investors that there investment is covered should the company goes into liquidation.One of the biggest weaknesses we identified was the re lative number of law suits and the amount funds that is being spent on settling law suits. Though the Debt income ratio is way better than most of the banks in its industry, we believe it would be helpful to bring the amount of leverage down to somewhere around . 075 % to better absorb economic shocks in the larger economy. We are very optimistic for the future of JPMorgan Chase especially as the mortgage industry bottom out and American economy continues creating jobs;we will see banks start do declare above average profits. The firm’s Stock price at 43. 4 is performing relatively better than it competitors like Bank of America at 8. 8 and Citi group at 34 indicating that investors still have confidence in the company. We would not invest in the stock of JPMorgan Chase stock at the moment even if we had money available to invest because we strongly feel that JPM Morgan already a very mature company and does not offer much potential for growth. We would instead invest in comp etitors such Capital One Corp. which is a relatively small and growing company with enough potential for growth. There stock price also now at 53 has performed better than JPMorgan Chase over the past year.

Essay On Cultural Identity - 1114 Words

Culture identity development is an important part of every life due the emergence of self through primary and sociocultural contexts (Ecklund, 2016). These stages of development are made up of either a dominant or a non-dominant group and intersectional adaptation. More specifically, cultural identity is a self-construct where individuals share the same culture, which causes them to attribute themselves to that group (Ecklund, 2016). Being a part of the dominant culture in the United States has opened my eyes to the privilege and disadvantages of being a Euro-American female. Through developmental status and coping strategies, diversity discomfort, intersectional dynamics, and vulnerabilities in discomfort I have developed have a greater†¦show more content†¦My immersion/emersion status is still developing because I am still actively learning and understanding the differences between the dominant and non-dominant groups. 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