Essay on Victoria Chemicals Plc (a): the Merseyside Project

* The price earnings ratio has dropped by 5.510%, meaning that investors in 2009 were willing to pay slightly less per dollar of earnings than in 2008.

Production line workers are the employees who are usually doing their work by hand or in this day and age, running the machine or equipment to make the products. In this particular case, Canada Chemicals Corporation utilizes their production employees by producing industrial chemicals. These production worker’s jobs are a lot more complete then other production level workers employees as they usually have plenty of skill, knowledge and experience, and have high educational background. In order to reverse recent challenges with production and sales, I have composed a compensation package for these employees that will motivate them intrinsically, and focus on rewards that are extrinsic.

Also, there are some concerns that if Merseyside would undergo renovations and is able to produce polypropylene cheaper than our sister plant at Rotterdam, then cannibalization would occur. We are not so sure that since we are in different geographical locations and service different areas that cannibalization would occur. But, if a problem would arise and cannibalization is suspected, Victoria Chemicals can enact a price averaging policy for both plants. Although Merseyside may be able to produce and sell polypropylene cheaper than Rotterdam if we average the sales price and have both plants sell at the same price it would alleviate this issue.

As Motorking Corporation considers introducing its now “gas extender” product into the market, the management must consider various factors to determine if this is a good financial move. The production manager needs to determine if the product will generate a profit for the corporation, how much product is expected to sell to determine how much to produce and how much to outsource.

The annual budget 2011/12 yielded a profit for the company, however, by looking into its quarterly performance it will be noted that the organisation will incur a net loss.

The Standard Oil Trust of Ohio was and American oil producing, refining, and transporting company. It was founded in 1863 by John D. Rockefeller and lasted until 1911. During 1868, Rockefeller expanded the oil company to become the largest oil refining company in the world. In 1870, the company was renamed Standard Oil Company. After it was renamed, Rockefeller purchased most of the oil companies that were currently in business to make one large company.

A poor financial performance reflects BlackBerry Company is going down. In the article of “Company Overview”, the author stated a SWOT analysis of BlackBerry. In the weaknesses of company, the author described the revenues decreased primarily due to lower shipment volumes and lower average selling prices of hardware products. The company’s revenues declined from $19,907 million in FY2011 to $11,073 million in FY 2013. (p.6) Continuous decline impacts the company’s profits and margins. In 2013, RIM recorded the operating loss of $1,235 million compared with operation profit of $1,497 million and $4,636 million in 2012 and 2011. It also suffers a decline in the cash position which from $4,009

Wilkerson’s competitive situation is that of declining profits due largely to chronic and severe price-cutting on pumps, the company’s main product in terms of units produced (Exhibit 4). Being a standard commodity product, demand for pumps is price elastic, and customers look for the cheapest price irrespective of the company they buy from. With its competitors constantly lowering their prices, Wilkerson’s only option for remaining competitive in the pump market was to match these price cuts. As a result, the actual selling price of pumps is $87, well below the target selling price of $107.69 (Exhibit 2). Consequently, Wilkerson’s actual gross margin of 19.5% on pumps is well below the company’s uniform target line of 35% for all

business is doing financially. The net income of the company will affect the financial position of

its newest and most advanced plant. The main components plant was located in the German town of

The company reported a loss in net revenue for FY2015 was 19.1 million compared to FY2014 which was 19.2 million. Following the decline in revenue net income

•) from FY1976 onwards, net income fell continuously - in FY1978 net loss of 262US$m due

The yearly shareholder equity increase suggest the organization was holding onto their profits for future business operations, but in 2016, shareholder equity decreased following a reduction in the firm’s assets (Motley Fool, n.d.). Lastly, the statement of cash flow shows net income volatility for NBL during these five years. The most distinct change in net income occurred between 2014 and 2015, where net income dropped from $1,214 to $(2,441) (Noble Energy Inc., 2017a). Though NBL still recorded a negative net income in 2016, this loss was an improvement from previous year. Due to the fact shareholder compensation correlates to a company’s net income, Nobles net income loss indicates that future dividend payouts will be negatively affected (InvestingAnswers, n.d.). As a result, the industry downturn is evident in Noble Energy’s financial performance in 2015 and

This indicates a risk for a potential investor, as there is not enough substantiating information detailing the previous fiscal years’ performances and whether there is a trend of net income or net loss percentage from year to year (Harrison, Horngren, Lemon, & Seguin, 2014, pg. 24).

As a world wide major competitor in the chemical industry, Victoria Chemicals is a leading producer of polypropylene, a polymer that is used in a variety of products around the globe. Polypropylene is known for its strength and malleability and was priced as a commodity. The company operates two plants that produce polypropylene, one at Merseyside, England and the other at Rotterdam, Holland. Both plants were identical in scale, design, and age. However, Morris Greystock, the manager for the Merseyside plant saw a decline in the company’s stock, and decided to improve the position of the company. To do that, she came up with a project to increase production efficiency, rationalize the