Profitability, ROCE, Gross profit margin,Operating margin, Net profit Assignment

Profitability, ROCE, Gross profit margin,Operating margin, Net profit of British airways and Lufthansa - Assignment Example Therefore, return on capital employed ratio indicates the return generated by every investment made as capital employed. Concerning British airways, in 2012 and 2013, ROCE was 1.31% and 3.95% respectively. This means that in the year 2012, 1.31% of the company’s net profit was generated by the company’s capital employed. However, the company’s ROCE increased to 3.95 % in the year 2013 due to an increase in the net profit by  £ 197 million. ROCE can be used to determine the viability of a project. In order to maintain a higher level of ROCE, the company should improve its cost reduction strategies to increase the level of net profit. Comparatively, Lufthansa airways’ ROCE in the year 2012 and 2013 was 6.6% and 1.8 % respectively. The decrease in Lufthansa’s ROCE between the two years is attributed to a sharp decrease in the company’s net profit. this sharp decrease was caused by an increase in the operating activities. Therefore, in the year 2013, British airways had a higher ROCE than Lufthansa airways for the reason that Lufthansa airways had a higher proportion of net assets to net profit. Consequently, British airways’s net assets generated more returns than Lufthansa’s (Duncan 2009, pp. 42-44). Gross profit margin – the ratio indicates a company’s financial health after meeting the cost of sales. It also indicates the company’s ability to pay for future operating costs. Concerning British airways, the ratio for 2012 and 2013 are 95.8% and 96.2% respectively. This means that in the year 2013, 96.2 % of the total revenue were gross profit, whereas, the remaining 3.8% of sales were consumed by costs related to sales. The ratio increased compared to that of the previous year. The increase is attributed to a more than proportionate increase in the gross profit. From this analysis, it can be concluded that British airway’s level of production efficiency is high due to the effective management of cost related to sales. Comparatively, the

Creating a Manual for Better Service, Safety and Employee Relations Essay

Creating a Manual for Better Service, Safety and Employee Relations - Essay Example The need for an employee handbook became evident at the restaurant due to the high level of turnover among the wait staff and the cooks. It became apparent that many of the questions that new employees had were not being addressed during the new employee training, and there was not always opportunity to explain things to them during the busy hours in the restaurant. What the new employees needed was a manual that could be a ready reference with answers to frequently asked questions about cooking, serving, cleaning and customer service.The manual also needed to summarize policies concerning work-related issues such as paid leave, health benefits, sick days and performance reviews so employees that had acquired some longevity would always know what their rights and responsibilities were. Some skills developed in prior academic classes were utilized in this class. The writing in the manual needed to be clear and concise.This was difficult to do. The most important information in each ca tegory needed to be included, and nothing more. There was  a page and word limit that forced the language in the manual to be very direct. These constraints were placed upon the project by the print shop. The manual needed to be an asset number of pages with a specific page layout or the costs increased dramatically. The word and page restrictions forced me to use writing and summarizing skills learned in prior academic courses. A business law class was helpful in giving guidance when writing the section on employee rights.... The manual needed to be as set number of pages with a specific page layout or the costs increased dramatically. The word and page restrictions forced me to use writing and summarizing skills learned in prior academic courses. A business law class was helpful in giving guidance when writing the section on employee rights and benefits. This class assisted in writing in a manner that clearly spelled out rights and consequences for behaviors such as being late for work or not calling off when sick. Business law taught me that ambiguity in company policies could lead to legal challenges and conflict (Lewin, 2001). Management courses also informed the overall tone of the manual. Managing through positive, enthusiastic leadership was stressed in a few management related classes. As a result, attempts to interject good humor and a feeling of light into the manual were taken as often as possible. The goal was to create a document that was accessible to the employees and a bit of fun to read. The only more important goal than this one was the desire to make the manual factual and fair. These skills learned in prior academic classes were very helpful during the practicum. The majority of learning happened as the task was being completed and interaction increased with the employees of the restaurant. Especially helpful in the process was an employee that was a teacher in a middle school for many years. She became interested in the project and spent much of the time advising on various ways. She recognized the value of the project and wanted to help. Her greatest sharing of knowledge dealt with the physical content and layout of the manual. She shared that individuals that struggle to read need manuals and books that are rich in graphics, pictures and charts that