Finance Essay Example | Topics and Well Written Essays - 1000 words - 11

Finance - Essay Example A business could not open and operate without working capital finance. Another purpose of working capital is addressing seasonal or cyclical financing needs. Here, working capital finance supports the build-up of short-term assets needed to generate revenue, but which come before the receipt of cash. Adequate and appropriate working capital financing ensures that a firm has sufficient cash flow to pay its bills as it awaits the full collection of revenue. When working capital is not sufficiently or appropriately financed, a firm can run out of cash and face bankruptcy. Working capital is also needed to sustain a firm’s growth. As a business grows, it needs larger investments in inventory, accounts receivable, personnel, and other items to realize increased sales. Lastly, working capital is used to undertake activities to improve business operations and remain competitive, such as product development, ongoing product and process improvements, and cultivating new markets. The components of working capital usually comprise all the components of Current Assets (Petroff, June 1, 2001). However, that is not always so in the nature of the working capital cycle. Some modifications to working capital may involve the exclusion of some components of current assets. The diagram below illustrates a simple working capital cycle of an organization. There are two elements in the business cycle that absorb cash - Inventory (stocks and work-in-progress) and Receivables (debtors owing money to the organization). The main sources of cash are Payables (your creditors) and Equity and Loans. Each component of working capital (namely inventory, receivables and payables) has two dimensions: (1) Time and (2) Money. When it comes to managing working capital, time is as valuable as money. If an organization can get money to move faster around the cycle (e.g. collect monies due from debtors more quickly) or reduce the amount of money tied up (e.g.

Services Marketing (encounter experiences) Essay

Services Marketing (encounter experiences) - Essay Example The aspect of degree of satisfaction as well as dissatisfaction is yet another problem that crops us in this regard. However, the measurement scales provided in the Annexure that details the experiences gives us a relatively better view into how satisfactory or for that matter dissatisfactory these experiences have been. In this regard, it should be mentioned at the very outset that service encounters refer to the customer’s most vivid impression of the service (Ziathaml, Bitner, Gremler & Pandit, 2011). Thus the report starts analyzing these experiences or to be more specific the service encounters from various managerial frameworks available to us as well as make comments on the degree of satisfaction or dissatisfaction it caused to the customers availing the service. Satisfactory Satisfactory experiences in terms of service encounters refer to those encounters of availing services that result in meeting the moot objective of the demand. However, nowadays, more and more serv ice sector firms are tending towards providing a more wholesome service experience to their clients and customers. In this regard, Clow and Kurtz (2003) have been of the opinion that satisfaction or dissatisfaction is known to be an episodic measure in that it normally relates to the last service experience. Thus, service quality becomes increasingly important an aspect from the point of view of services marketing as well as management of services as a whole. So far as the satisfactory service experiences are concerned, the present report presents six favorable or for that matter satisfactory service experiences are concerned, these focus on the aspects of favorable experiences that lead to repeat purchases or to be more specific result in customer loyalty. The first satisfactory service experience has been experienced has been in a cirque named Cirque de Soleil in London in the Royal Albert Hall. In spite of much hype as well as a long queue in front of the ticket counter along wit h the other encumbrances that any hyped show comes with, the cirque lived up to its expectations and thus customers left the hall satisfied. Of course, in terms of analysis, satisfaction in this case is due to the level of perfection that the show had attained given that the organizers had kept note of every minute detail thereby bringing parity as well as that they had taken care of the details of the service thereby referring to the impeccable service blueprint that they had put in action. Also, though the food has not been as exemplary as the other aspects have been, everything else has been just perfect thereby leading to an overall satisfactory service experience for the audience or for that matter, customers in this case. In this regard, a service blueprint refers to a graphic representation of the essential components of the service both front stage as well back stage (Fisk, Grove & John, 2008). In terms of the quality of food not being up to the mark, the concept of zone of tolerance comes into the picture. The food not being of the highest quality seemed to be well within the zone of tolerance and thus the customers were still happy with the overall