Case Study Assignment Company Analysis Example | Topics and Well Written Essays - 2500 words

Assignment Company Analysis - Case Study Example They use all the information available or that can be reasonably obtained - consisting of known information and beliefs about the future (inferred information). Being the determinant of stock prices, information is the central issue of the efficient market concept. An efficient market is defined as one in which the prices of securities fully reflect all known information quickly and accurately (Jones 1991). The current price of a stock incorporates or fully reflect all information that investors assimilate in the process of making their buy and sell decisions. According to this concept, it is assumed that all known information -- including past information (such as last years or quarters earnings), current information, and events that have been announced but not yet implemented, such as a stock split -- are fully reflected in the price. Other information that can be reasonably inferred such as a change in interest rates will also be reflected in the prices even before the event occur s. By "quickly and accurately" is meant the speed at which information is received by its users, instantaneously in most cases, particularly with current electronic communications availability enabling brokerage houses, institutional investors and others to obtain any information and process it for quick decisions. For individuals without such easy access, information can reach them a few hours or a day later. It is not quite easy to determine what accuracy in price adjustment means, but the theory simply assumes that an unbiased estimate of the equilibrium price is established after all investors have fully assessed the input of the information (Jones 1991). New information about a companys profitability can affect the price of its stock such that it has a positive excess return, described as that portion in the price not accounted for by the overall market movement. On an average day, the difference between the price and the overall market, the

Managing Organizational Deviance Assignment Example | Topics and Well Written Essays - 1750 words

Managing Organizational Deviance - Assignment Example Ethics in an enterprise include salespeople being honest, just and fair to all. Some individuals may perceive sales ethics as being an oxymoron or rather a contradiction depending on a number of factors including the culture of the people, the product itself, way the product or service is produced and delivered to customers as well as the behavior of the salespersons. The factors listed above are varied across cultures, nations and every action have both benefits and costs, which may render sales ethics an oxymoron. However, sales ethics is not an oxymoron. In most cases, it is the behavior of a salesperson, who connects the company and the customer (consumer) that largely contributes to the debate whether sales ethics is an oxymoron. If a salesperson creates and sustains a relationship that is based on honesty, commitment and trust, then the customer will be a lifelong and sales become ethical. The reason why sales ethics is oxymoron First, nothing is perfect. At times, matters beyo nd the control of the sales persons hamper him or her from delivering their value proposition. For example, if a salesperson promises a customer that the product will be delivered in an hour’s time and it delays, the salesperson will appear a cheat. But the delay may be occasion by traffic jam or breakdown among other genuine reasons. Secondly, the goals of the salesperson may make sales ethics a contradiction. This is true when a salesperson is driven by temptation and greed in the sense that he or she wants to make more commissions at the expense of the value delivered to the customer. For example, if a salesperson is fast-talking and extremely convincing, he or she often sells products to customers that have no value. According to Blocher (2008, 34), most adverts and salespersons do not reveal the complete story of products or services, which the buyer may not like. As a result, the customer purchases products or services that they do not need in the first place and they w ill feel cheated. Thirdly, salespersons may report inaccurate sales. In an enterprise, there are various forms of rewards systems which include salary, promotions, and bonuses. Among the salespeople, these systems are put in place based on their performance. However, it can result in employees being involved in unethical behavior. In order to attain sales targets employees may opt to use unethical practices such as using pressure and recording false sales. Lack of transparency may be costly to a company in the long run. It may spoil the sales, personal credibility and interfere with sales (Thorne 2008, 224). Such unethical behaviors may become persistent leading to other unethical acts, which may drive the company’s sales down significantly (Kidwell and Martin 2005, 44). Fourth, competition drives companies and their salespersons to act against good morals. Duska (2007, 90) attest that the perception that every business is in a competition, and focuses mainly on how to improv e profits may conflict with the existing ethics.