Exercise

Article

While Chryler’s minivans, pickups, and sport utility vehicles take a big share of the truck market, its cars trail behind those of GM, Ford, Honda, and Toyota. Quality problems include, among other things, water leaks and defective parts.

1. Define broad problem area?2. Define problem?3. Explain how would you proceed further?

Employee loyalty

Companies benefit through employee loyalty. Crude downsizing in the organizations during the recession crushed the loyalty of millions. The economic benefits over loyalty, embrace lower recruitment and training costs, higher productivity of workers, customer satisfaction, and the boost to morale of fresh recruits. In order that these benefits are not lost, some companies while downsizing try various gimmicks. Flex leave, for instance, is one. This helps employee receive 20% of their salary, plus employee provided benefits, while they take 6 to 12 months sabbatical, with a call option on their services. Others try alternatives like hand holding, more communication and the like.

Accounting gets radical

• The GAAP(Generally Accepted Accounting Principles) do an unacceptable job of accounting for the principle activities of the information age companies. Today investors are in dark because accounting is irrelevant. The basic purpose of accounting is to produce useful information to help investors make rational investment, credit, and similar decisions, but today’s most important assets and activities-intellectual capital and work knowledge-are totally ignored.

• Professor Robert A. Howell wants to reform the accounting system with a goal of making measurement of how company produce cash and create value.