Quality Management in Organizations

Introduction In manufacturing as well as the service industry, among the critical success factors includes building in addition to sustaining high performance in organizations. If an organization implements an effective quality management strategy, there is a significant likelihood that the organizational success will be underpinned.Advertising We will write a custom essay sample on Quality Management in Organizations specifically for you for only $16.05 $11/page Learn More Contemporary organizations have realized the significant number of benefits presented by incorporating an aspect of quality management. The profitability as well as the competitiveness associated with the modern organizations can be largely attributed to quality management. Antony, Escamilla and Caine (2003, p. 40) identifies quality management as an approach whose main focus is to improve, not only quality but performance as well in an effort towards meeting or even exceeding the exp ectations of the customers. Generally, quality assurance entails four major aspects, which include quality assurance, quality control, quality planning in addition to quality improvement. An organization that employs quality management tends to focus on quality and the way in which the quality can be achieved. Therefore, in quality management, not all the four aspects are utilized. Instead, only quality assurance and quality control are emphasized on (Antony, Escamilla Caine 2003, p. 41). Thesis statement The purpose of this paper is to review the manner in which quality management frameworks can generally contribute to the success of an organization. In addition to this, the paper will also focus on identifying and analysing critically how quality management frameworks are applied in an organization. This analysis will be based on management as well as technical systems. Further, the paper will access both the benefits as well as the problems that are likely to be encountered by a n organization with application of six-sigma quality management in the future. Discussion How quality management framework facilitates the success of an organization Foremost, in order to understand how this success comes around, the top management of the organization must ensure that they understand this concept fully. As such, quality management framework is a term commonly used in total quality management to refer to a tool used to facilitate the successful delivery of both products as well as services across the enterprise.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Guided by the quality management framework, an organization that has implemented total quality management in its system usually operates to its full capacity. On the other hand, an organization that has not yet realized the necessity of quality management does not operate to its full potential (Shenawy, Baker Lemak, 20 07 p. 442). Below are some of the ways in which quality management frameworks facilitate success to an organization. Standardization of processes An organization employing the aspect of total quality management is known to standardize the internal in addition to the external processes. This implies that quality management frameworks provide an allowance of increased efficiencies, that is, faster processes in addition to fewer costs, with regards to introducing new products to the customers. Further, the standardized processes add up to strengthen the techniques used in the supplier management. Moreover, standardized processes, through quality management, enable an organization to effectively control the robust costs. This implies that the overall profits of the organization will be greatly improved. PCI and security compliance In their research, Shenawy, Baker and Lemak (2007, p. 460) found out that quality management framework, when implemented, serves as a key success factor. The reason for this is that through it, an organization is able to ensure that the PCI in addition to security across the lifecycle of a project is entirely complied with. Defining the Lifecycle of a project to be undertaken by an entity helps in coming up with the most viable framework and as such; it helps greatly in implementing the robust security policy. This in turn guarantees success to an organization. When quality management framework is adopted by an entity while making use of artefacts, which have been designed specifically for robust security policy, it follows that there will be an achievement of meaningful improvements in the organization and this implies continued success. Fit for purpose processes Organizations implement quality management frameworks to ensure that the both the internal as well as the external processes are fit for use. The essence of quality management is continuous improvement of processes. This involves continuous checking of the processes and thereby identifying the cause of any flaw within the processes. Through this continuous checking, it implies that the processes will always be free from flaws and this in turn ensures that the processes are always fit for purpose. When an organization’s processes are always fit for purpose, there is no instance where questionable quality of products or under productivity will be reported and this guarantees success in addition to maintaining the competitive advantage of the organization.Advertising We will write a custom essay sample on Quality Management in Organizations specifically for you for only $16.05 $11/page Learn More Sufficiently robust processes Implementation of quality management frameworks ensures that the internal as well as the external processes of an organization are sufficiently robust. This means that the scope or the coverage of the production processes is extensive thus the organization is able to capitalize on any opportunities w hile identifying problems. Further, robust processes utilize the full capacity and potential of the organization while observing the quality and thus maximization of returns. This in turn helps the organization to establish itself among the most financially stable and hence attracting investors at the same time consolidating its credit worthiness status to the financiers. Burdensomeness An organization that has not realized the usefulness of quality management in most cases succumbs due to unproductiveness, inadequate quality as well as constant losses owing to burdensome processes. However, implementing quality management process minimizes or entirely wipes these burdens and hence restoring the competitiveness of an organization. How quality management frameworks are applied in an organization Quality management frameworks, when applied in an organization, entirely focus on the satisfaction of the expectations of the customers, detection of problems, commitment building in addition to promoting contribution of ideas from the employees for the purpose of decision making. Quality management frameworks applies several analytical tools including check sheets as well as statistical chards with an aim of collecting data regarding the activities practiced within the organization. Several techniques are used and these include; brainstorming, nominal groupings in addition to forming of consensus in an effort towards facilitating both the decision making process as well as the communication process (Juran 1995, p. 87). Several organizations have been practicing quality management framework application since it was discovered. However, this has been limitedly done. The process of integrating quality management frameworks not only do it enhance but complements the methodologies used in standard program and assessment model as well. These methodologies are indeed vital as they are considered as mechanisms necessary to establish the strategic directions for an organization . With model standards available, an organization is therefore provided with a rational method in which it can assess its stipulated goals in addition to its potentials with regards to products or service outcomes.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More An organization that applies quality management frameworks tends to put its entire focus on work processes. In this kind of a focus, several techniques are applied with an aim of improving the production process of the organization and these include both behavioural as well as analytical techniques. Application of quality management frameworks involve use of a series of flow diagrams and therefore aiding in identifying the steps followed in the production process of an organization. Further, the factors perceived to be the chief contributor to delays in the process are also identified. Apart from this, application of quality management frameworks allows an organization to not only identify but try various steps to improve the production process in addition to monitoring the results in an effort towards the attainment of improvements, which is continuous in nature. In this kind of an application, there is a fundamental challenge surfaced and this concerns the utilization of internal standards of performan and Lemak (2007, p. 471) established that, while the utilization of standards of performance is considered to be the initial point of total quality management, quality management process, which is continuous a continuous process, surpasses the conformity to standards of management. Application of quality management frameworks requires the top management conduct a systematic analysis of the entire work performed by the employees in and for the organization. During this analysis, the emphasis point should be the horizontal integration of both the services as well as products across the present program areas in the organization. The process improvement is usually based not only on processes but outcomes as well. An organization must exhibit that it has the capabilities of improving the problem solving capacity in a constant manner while making use of leverages such as performance standards during the process of improvement (Henderson Evans, 2000, p. 260). Applic ation of quality management frameworks requires that the intended change be based on both the needs as well as the desires of the organization’s customers as in addition to the needs of the employees involved in the entire organizational process. The application also requires that all personnel levels participate actively. Particularly, the application of these frameworks in an organization requires the top management respond to the ideas suggested by the participating personnel quite rapidly and in a thoughtful manner. The quality management framework’s application requires that the participating personnel have a clear in addition to precise understanding of the process of the work involved as well as how it relates to the larger system. It is necessary that there be an analysis of the process and it should be done in a rigorous manner. Also, evaluation of each and every activity should be done provided that the organizational process is ongoing. The application of th e framework further requires the recognition in addition to application of all the underlying psycho-social principles which, according to the findings of Wyper Harrison (2000, p. 720), affects individuals as well as groups in an organization. Quality management frameworks require the acceptance of the fundamental assumption that most problems faced in organizations does not arise out of errors by employees but due to the inability of the system, which the entire personnel of the organization must function within, to perform sufficiently. While model standards put strategic production outcomes objectives as the major focus in addition to stakeholders as the ultimate organization clients, quality management frameworks are used to examine each and every link in the production process involved in order to attain production objectives (Sila 2007, p. 100). In the application of quality management frameworks, the main challenge to the top management team is to spend both time as well as energy extensively rather than assuring adherence to stipulated performance standards in an effort towards facilitation in addition to assurance of continued improvements with regard to the various interrelated production processes that are the duties of the various departments in the organization (Henderson Evans, 2000, p. 275). Six-sigma approach to quality management Six-sigma, as used in quality management, is used to describe a measure of quality known to drive an organization to reach near perfection state. Usually, it is an approach, which is disciplined in addition to being data driven. Further, it entails methodologies through which defects and flaws in a process are eliminated. Wyper Harrison (2000, p. 727) acknowledged that six-sigma approach to quality management involves an aspect of quality management that is project driven in an effort towards improving both the products as well as the services of an organization in addition to processes used in producing them. The approach focuses entirely on reducing the defects in an organization in a continuous manner. It is referred by many analysts as a business strategy that advocates the improvement of understanding of all the customer requirements. Further, the approach also tends to focus on improvement of a business system, the productivity of the business and the performance especially the financial performance. Benefits, obstacles, and future of six sigma application Benefits The benefits of applying six-sigma approach to quality management vary with different sectors. Manufacturing sector Application of six-sigma approach to quality management causes both savings as well as reduction of defects in several processes. For instance, it causes a great reduction of defect levels in the manufacturing process. With regard to aircraft integration systems, the time allocated for the maintenance of the depot is also ideally reduced. In organizations involved with leasing business, the turnaround time spent at repair facilities are also reduced significantly (Lin 2007, p. 315). For businesses involved with shipments, the time for concept-to-shipment cycle is also reduced. Financial sector For businesses in the financial sector, application of six-sigma quality management leads to increased savings (Lin 2007, p. 320). Health sector The principles of six sigma approach to quality management match absolutely well with health care service. This is because; health care encompasses an aspect of zero tolerance with regard to mistakes as well as medical errors. Engineering and construction field Implementation of six-sigma approach to management leads to savings in this sector. These savings are realized due to the effective identification as well as prevention of reworks and defects in each and every construction process ranging from designing to on-time delivery of the payrolls to the employees (Gloet 2006, p. 405). Research and development In the research and development sector, the goals mainly focused include reduction of costs and speed to market increase in addition to the improvement of research and development processes. In order to identify the degree of the effectiveness of six-sigma, it is necessary that the organization puts a focus on reviews, which are data driven, as well as integration of research and development into the stipulated work processes among other focus aspects. Problems There are several problems associated with implementation of six sigma approach to quality management. Problems in strategy For a considerable time, six-sigma has been under criticism and subject to controversies. Indeed, some critics call it Quality management on steroids. Critics argue that there is nothing innovative new ideas advanced by the approach. Instead, it is only a rendition of traditional techniques associated with quality. Indeed, this kind of an approach is not really the answer to the entire diverse issues that face a business. In order to ensure that the app roach is sustainable for a considerable period of time going into the future, an organization must not only analyse the approach’s strengths and weaknesses but accept them as well. Problems in the culture of an organization Rather than just concentrating on monitoring quality at the manufacturing phase, there is a need to embed quality concept into the designing phase. In quality management, change of organizational culture is the most important point to consider since it waylays quality into planning (Evans Lindsay, 1995, p. 59). There is no point of addressing only those issues that can be easily corrected and then claim that six-sigma approach to quality management is viable. Indeed, this is a clear deception. There is a big likelihood of failure for those organizations whose management has not fully understood the problems of the approach. A strong commitment in addition to support as well as leadership exhibited by the top management team are among the vital considerati ons to effectively deal with cultural differences or issues, which are largely associated with the implementation of the six-sigma approach (Evans Lindsay, 1995, p. 55). Issues evident in training In the implementation of this approach to quality management, training serves as an essential aspect. Indeed, it should be incorporated as part of an integrated approach during the implementation process. The training program ought to be customized in order to have both the managerial as well as economic benefits incorporated. According to the findings of a research conducted by Johnson Swisher (2003, p. 12), it was established that challenges that surface during the implementation of six-sigma projects are responsible for the selection of employees identified by having less capabilities. Conclusion From this analysis, it is evidently clear that the aspect of quality management, if implemented in an organization, plays a significant role in ensuring that the organization maintains its co mpetitive nature while enjoying superior returns on investments, that is, profits. In order to comprehensively in addition to successfully implement quality management so that the underlain benefits can be realized, the organization should be centered on the customer while accepting the fact that employees are not a means to an end but rather assets to the company. Focus on the customers can only be done through ensuring improvements throughout the organization and therefore deriving quality which a customer desires (Antony, Escamilla Caine 2003, p. 42). Quality management entails improvement of the production process. As such, according to this analysis and as Johnson Swisher (2003, p. 15) found out, it is only through detection of flaws in the production process that improvements can be made. He further assets that the detection of problems should be a continuous process and ultimately, a great deal of quality will have been ensured and the benefits of quality management will ha ve surfaced. References Antony, J, Escamilla, JL Caine, P 2003, ‘Lean Sigma’, Manufacturing Engineer, Vol. 82 no. 4, pp. 40–42. Evans, JR Lindsay, WM 1995, The management and control of quality, West Publishing, New York, NY. Gloet, M 2006, ‘Knowledge Management and the Links to HRM Developing Leadership and Management Capabilities to Support Sustainability’, Manage. Res, Vol. 29 no. 7, pp. 402-413 Henderson, KM Evans, JR 2000, ‘Successful implementation of six sigma: benchmarking general electric company benchmarking’, An International Journal, Vol. 7 no. 4, pp. 260–281 Johnson, A Swisher, B 2003, ‘How six sigma improves RD’, Research Technology Management, Vol, 46 no. 2, pp. 12–15. Juran, JM 1995, A History of Managing for Quality, ASQC Quality Press, Milwaukee, WI. Lin, HF 2007, ‘Knowledge sharing and firm innovation capability: an empirical study’, Int. J. Manpower, Vol. 28 no. 4, pp. 315-3 32 Shenawy, EE, Baker, I, Lemak, DJ 2007, ‘A metal-analysis of the effect of TQM on competitive advantage’, Int. J. Qual. Reliability Mange, Vol. 24 no. 5, pp. 442-471 Sila, I 2007, ‘Examining the effects of contextual factors on TQM and performance through the lens of organizational theories: An empirical study’, American Journal of Management. Vol, 25 no. 1, pp. 83-109 Wyper, B Harrison, A 2000, ‘Deployment of six sigma methodology in human resource function: a case study’, Total Quality Management and Business Excellence, Vol. 11 no. 4, pp. 720–727. This essay on Quality Management in Organizations was written and submitted by user Sage to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

13 Electric Vehicle Conversion Companies

13 Electric Vehicle Conversion Companies Fuel is expensive, but one way to eliminate stops at the pricey pump is to go electric. An electric vehicle (EV) conversion is a procedure that involves modifying a petroleum fuel-powered vehicle into an all-electric vehicle. If your commuting needs and lifestyle are such that you can go electric with one or more of your vehicles, here’s a list of companies to get you started. Depending upon where you’re located, there may or may not be one of these companies within a reasonable distance. If youre not within driving distance, choose a company on this list that will sell you the parts for a DIY conversion, or hire a reliable mechanic to do the hard work for you.   Companies That Offer DIY Conversion Kits Canadian Electric Vehicles Ltd.  CEV was established in 1991 to convert internal combustion engine vehicles to electric power- including heavy-duty diesel truck conversions for the airline industry. In addition to selling conversion kits for many vehicles, they offer components for modifications and offer custom-build options. Their customers include governments, industrial companies, and private individuals. Conversion Companies Clean Ride Electric Vehicles  Located in Minnesota, this company restores and electrifies classic VW beetles from top to bottom. They replace the internal combustion engine and fuel system with an electric motor and 6 12-volt lead acid batteries and upgrade standard components. These all-electric VWs offer a 20- to 30-mile range with a top speed of 50 mph.EVPorsche.com  Located in West Palm Beach, Florida, and Los Angeles, CA, this company can convert any vehicle to all-electric power but specializes in Porsche sports car conversions due to their dependability, lightweight design, and engineering. They offer a wide variety of battery, range and model configurations to meet driving styles and needs. Speeds for their EVs: 0-60 in about 5 seconds or even faster with 2 motors and series to parallel switching.Eco-conversions  This company specializes in converting regular gas burning cars into clean electric machines- they have zeroed in on luxury vehicles with their benchmark, the BMW 8-Series, aiming to â€Å"shatter the image of the traditional electric car.† They recently partnered with eVionyx, an American company that has developed superior charging nickel-zinc batteries. Electric Vehicle Systems – Based in New Underwood, SD, this company offers complete repair services for all-electric vehicles, using the latest technology. According to their website, most repairs of a two-wheel electric scooters run $45. Call them to learn more.Electro Automotive – Located in Felton, CA, Electro Automotive was founded in 1979 as a single source for quality conversion components. According to their website, Electro Automotive â€Å"believes in electric vehicles built to live in the real world.† They are all about EVs that are simple in design, easy-to-use, reliable, affordable and practical.Electric Vehicles of America (EVA) - EVA provides free detailed calculations for specific all-electric applications, from industrial, on-road electric car or truck, off-road EV or boat. They also offer free technical papers on safety, batteries and conversion details, in addition to system design, supplier data and drawings, installation manuals and videos. Lo cated in New Hampshire.EV-Blue/Electric Blue – Based in Kansas, this company will convert any gasoline burner to electric- you supply the vehicle, they do the conversion. Their basic option includes a 144V battery and charger for $11,000. AC, heat and power steering are extra. Call or email for additional details. EV Source LLC - Located in Logan, UT, this company provides high-quality electric vehicle components to the high performance, high voltage EV conversion market. From speed controllers, fuses and breakers to assembling your own conversion kit, they know how to help you go all-electric.Green Motors Inc.  - Based in northern Arizona, Green Motors converts standard vehicles to electric power, in addition to servicing, maintaining and refurbishing all types of electric vehicles. They offer service support for the DIYer, plus sales of parts. Visit their products page for a current list of available vehicles.Metric Mind Corporation  - Based in Oregon, Metric Mind Engineering (MME) is an international company that supplies high end AC drive systems and other EV components. According to their website, MME is a single source of all the main electronic hardware necessary to complete an EV conversion.†REVOLT Custom Electric Vehicles LLC  - This company provides design, building and m aintenance services for electrical vehicle conversions in the Austin, TX area. Wilderness Electric Vehicles  - Located in Utah, this company specializes in electric car conversions. You supply the vehicle- they provide the conversion in 3 to 4 months. They also offer a variety of kits to convert to electric. Call or email for additional details.

Martin Luther King Jr I have a dream Essay Example | Topics and Well Written Essays - 250 words

Martin Luther King Jr I have a dream - Essay Example While his oratory skills are legendary, how did King establish credibility with this particular audience? By invoking Abraham Lincoln and the Emancipation Proclamation, he reminds the audience of its history and the promises still to be realized. He also discusses how the Constitution and the Declaration of Independence address the rights of every American, not just certain segments of the population. By doing so, he unites his audience with a common cause that reflects on every citizen. From the standpoint of establishing character, it is clear that he is passionate about the subject and pulls the audience in with both the poetry and practical approach of his words. He gains their respect by addressing the reasonable points of his argument and reminding them that change must be found on â€Å"the high plane of dignity and discipline.† The speech is very charismatic, evident by the way in which the audience responds to King’s words. Eye to eye with the audience, his command is powerful; it is indeed like a minister speaking to his congregation. As the speech progresses with greater energy and rhythm, the audience is engaged in an almost shared religious experience. King appeals to the audience both emotionally and intellectually. He tells them that the struggle for equality involves everyone. By reminding his audience that we are all bound together and referencing various parts of the country, he strengthens his argument. When he says â€Å"We cannot walk alone,† King is reinforcing a sense of community and faith in the goodness of Man. Therefore, he makes those that disagree seem divisive and beholden to the past. I believe his main point involves taking the lessons--and promises--of the past and using them to build a future that has no regard for the color of one’s skin. Speaking of hardships, unity and hope, he makes clear the urgency of his

Explain the Scientific Management Approach with reference to Henry Essay - 1

Explain the Scientific Management Approach with reference to Henry Fayol and Frederick Taylors principles of management - Essay Example tation of science was basically targeted at manufacturing industry and other regular responsibilities, in order to improve productivity and competence from top to lower echelon of leadership. On the one hand, Taylor suggests that the development of proven practices need to be anchored on comprehensive observation of business processes, and on thorough training and recruitment of the most qualified of workers, because by doing so, organizations will be guaranteed smoother processes and more profit (Maqbool, Zakariya, and Paracha, 2011). In light of this, Taylor summarised his approach in four principles namely: a) scientific creation of work processes; b) scientific selection and training of workers; c) enlightening workers on the benefits of scientific management; and d) specialization of employees (Taylor, 2013). All of these strategies are aimed at improving productivity and better gains in organizations. Taylor (2013) argues that developing a scientific system of work eases the measurement of employee output. With these analyses, positive adjustments could be affected to the equipment and workstation programs used by employees, which would eventually enhance efficiency and productivity of business. Scientific recruitment and preparation of workers to weather various workplace challenges helps to realign divergent employee aptitudes, and fit them to their respective job. In light of this, the role of management would translate in to selecting the most qualified of employees for a particular job, and training the candidates scientifically to enhance their productivity (Maqbool, Zakariya, and Paracha, 2011). For instance, a high school that is in need a graduate teacher specialised in specific subjects, would recruit such an individual from a pool of applicants, and train him or her on the best ways to relate well with students, fellow members of staff, parents, school clinicians and the immediate community to ensure they fit in the new workplace

Tesla Motors, Inc. Financial Analysis Essay Example for Free

Tesla Motors, Inc. Financial Analysis Essay Tesla Motors, Inc. was founded in early 2003 by a group of Silicon Valley engineers, incorporated in Delaware on July 1 of the same year, and is now headquartered in Palo Alto, California (â€Å"Tesla- Investor†). The company designs, develops and manufactures electric vehicles and electric vehicle powertrain components. Tesla also provides the same services and powertrain components to other manufacturers of electric vehicles (Analysts Corner 2). Tesla Motors is best known for producing the Tesla Roadster, an all electric sports car released in 2008, with outstanding performance results (â€Å"About Tesla†). Tesla has developed a unique marketing plan that differs from the traditional automotive industry by marketing and selling its products over the internet and through a global network of 32 stores that are owned and operated by Tesla. The company has 2,964 employees and has electric vehicles on the road in 37 countries around the globe (â€Å"About Tesla†; Analysts Corner 2). On June 29, 2010 Tesla Motors Inc. became the first American car company to go public since the Ford Motor Company in 1956. The company offered 11.8 million shares priced at $1 above the initial offering at $17. The IPO was so successful that Tesla offered an additional 20% equity in the company by increasing the offering to $13.3 million shares to meet demand. The company raised a total of $226 million, the stock price soaring up 41% to $25 a share on opening day (Andrejczak). Today, Tesla Motors Inc. (TSLA) is traded on the NASDAQ stock exchange at a price of more than $180 a share. The stock has grown over 800% since its IPO and now Tesla has a market capitalization of over $22 billion. This impressive increase in stock price may come as a surprise to many investors due to the company’s earnings, or lack thereof. Given the current economic conditions, the relatively new market and existing competition; the Tesla stock price is grossly overvalued. Tesla produces an outstanding product with an outstanding price tag. The new Tesla S was designed to compete in the luxury sports car arena along with BMW, Mercedes and Audi. Tesla has estimated that 21,000 Model S will roll out of its production facility in 2013 at a sticker price between $70,000 and $100,000 (Seetharaman; Finger). This year, Mercedes will sell 25,000 luxury sedans in that price range to U.S. consumers and BMW just slightly less than Mercedes (Finger). Tesla has estimated it will produce 40,000 Model S next year, almost twice the number of BMW’s sold in that price range. In the post recessionary economic climate of 2013, there is not a strong demand for vehicles in this price range, even with the $7500 tax credit offered to consumers. The Tesla Model S is still out of reach for most Americans. There are more reasonably priced alternatives in the EV market such as the Nissan Leaf and the Chevy Volt, but sales have been sluggish (Stammers; Alpert). General Motors recently â€Å"announced a $5,000 formal price cut for the Chevrolet Volt plug-in hybrid† and Chrysler has opted to stay out of the EV market until â€Å"dragged there by consumers† (Buss). Since the key to the future profitability of Tesla Motors is in the mass production of an affordable EV, demand for the product becomes paramount. As Dale Buss, an automotive industry journalist explains; It’s one thing for Tesla to sell nearly 1,500 Model S a month at about $70,000 apiece in the U.S. market these days; when Elon Musk’s startup attempts to penetrate the lower part of the EV market with its own model, success will be a lot harder to come by. (Buss) Tesla intends to meet that challenge with the 2016 release of the Gen. III., a Tesla EV with the range of a Model S, but half the price. The 200 mile range of a Tesla EV is what gives it a competitive advantage over other more affordable EVs, but at the cost of additional batteries (Alpert). The added cost of the batteries makes the target price next to impossible to reach, but necessary in order to avoid the fate of other affordable EVs, such as the Volt. So, rather than realize their goal †to accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars†(â€Å"Tesla Improves†), Tesla Motors is â€Å"helping create a highly bifurcated segment where only expensive EVs can achieve a feasible volume† while pushing affordable EVs and its own profitable future further out of reach (Buss). Tesla Motors CEO, Elon Musk, maintains that there is still adequate demand for the Model S and that the company has received 10,000 orders in North America alone. The truth of the matter is that the true demand for EVs remains to be seen. In May of 2013, Tesla shocked analysts when it â€Å"stopped disclosing its end-of-quarter order backlog which might have shed light on the issue after previously trumpeting a 15,000-unit reservation list† (Alpert). Many of Tesla’s orders were cancelled due to the company’s price increases on options for the Model S, which added an average 8%-9% to the overall price and stirred up numerous customer complaints on the Tesla website blog (Finger; Blanco). Many consumers are interested in reducing CO2 and reducing our dependence on fossil fuels, but simply cannot afford the more expensive alternatives. In an attempt to make Tesla vehicles more affordable and increase sales; Tesla Motors has partnered with U.S. Bank and Wells Fargo Bank to provide financing to qualified Model S customers that includes longer terms, lower payments and the Tesla resale guarantee. â€Å"Buying a Model S through the Tesla financing offering now comes with a guarantee that the resale value will be higher than that of BMW, Audi, Mercedes, Lexus or Jaguar† (â€Å"Tesla Improves†). The guarantee is personally backed by the CEO of Tesla Motors â€Å"to give owners complete peace of mind about the long term value of the product† (â€Å"Tesla Improves†). Elon Musk, Tesla’s chief executive described the financing program during an interview; If our car was chiefly available for purchase and not by financing, I think thats maybe accessible to roughly 1 million US households. A financed product with the right financing-fully optimized financing, I think its probably accessible to the top 10 million households. (Seetharaman) Musk went on to report that since the finance program was implemented, the company has experienced â€Å"a meaningful increase in demand† that he estimates to be about 30,000 cars a year in North America (Seetharaman). There is little doubt that the Tesla financing program has boosted sales. â€Å"In the second quarter 30 percent of sales fell into this category† (Finger). Amazingly, against generally accepted accounting principles (GAAP), Tesla records the entire amount of the payment it receives from the bank as  revenue. The bank pays the full amount of the car price to Tesla, but after the 3 year lease agreement ends, Tesla pays the outstanding balance of around $46,000 when it takes the car back as part of the buy-back guarantee. According to GAAP, the $46,000 would be a debt until the bank has been paid. This method of recording debt as revenue makes Tesla look more appealing on the books. Meanwhile, Tesla builds up an expensive and costly inventory of used Model S sedans as it works hard to convince consumers that the model S should be replaced, which effectively lowers the value of their own used inventory. The buy back guarantee has the potential to become a serious liability for the new car company. In an effort to promote the use of cleaner technology and improve the air quality in the state of California, law makers there have implemented a program whereby automobile producers can earn credits for every zero-emission-vehicle (ZEV) and partial-zero-emission-vehicle (PZEV) brought to or sold in the state. Manufacturers can only sell a certain amount of vehicles that don’t fall into this category. The manufacturers then have the option to purchase more credits from other companies in order to continue selling vehicles in California. Tesla earns credit every time the company sells a Model S and these credits are sold to competitors. It has been estimated that for every Model S sold, Tesla receives between $25,000 to $35,000 worth of these credits and could contribute about $188 million in revenue for 2013 (Isidore). This year Tesla Motors Inc. reported its first profit in the first quarter and â€Å"better than projected earnings† for the second quarter (Isidore). A closer look at the source of that revenue reveals that it did not come from sales of vehicles, but actually from the selling of zero-emissions-credits. Tesla sold a total of $68 million worth of the credits, 12% of its total revenue in the first quarter (O’Brien). Despite the source of the income, Tesla Motors stock price rose 17% when the quarterly report was released (Seetharaman). Another contributing factor to the run-away stock price is that historically Tesla stock has been a favorite amongst investors for shorting. One analyst at Barron’s reported that as much as 45% of Tesla outstanding shares were shorted until the first quarter earnings were released (O’Brien). When the  stock began its climb, the short sellers were forced to buy back at higher prices than they had hoped to, which effectively drove the market price higher. Investors also responded favorably to the news that the Model S won The Car and Driver Magazine’s Car of the Year for 2013 and again when the Model S earned the highest score ever given to an automobile by Consumer’s Reports (O’Brien, Finger). The forward price earnings ratio for Tesla Motors is in the neighborhood of 170. A high price-earnings ratio suggests that investors are expecting future growth and earnings. An exceptionally high P/E is indicative of a speculative bubble and overvaluation. Market Capitalization for Tesla Motors Inc. has doubled within the last couple months and is now over $22 billion. The value of an enterprise for profit is dependent on what it can produce or profit from moving forward into the future, and in doing so increase the wealth of the ownership. Tesla Motors will produce roughly 20,000 cars this year and plans on doubling that output for 2014. That makes every car Tesla produced this year worth $1.1 million of stock. Compare that number to â€Å"luxury automaker BMW that has a market cap of$52.79 billion on global sales of 1.85 million cars or $28.53 thousand per car. Mercedes Benz produces cars at $43.4 thousand per car using the same calculation (Finger). Tesla will have to produce hundreds of thousands of vehicles to support a stock price even half of what it is currently. With the limited amount of demand at the current price, the stock can soar as high as the market will allow it, but the price will have no foundation and will eventually crumble down. The over-valuation leaves Tesla poised for a buyout or takeover by a larger manufacturer. Tesla Motors is obviously good at what it does. The technology developed by the company is being used by other more established automobile makers, such as Toyota and Daimler. The problem with specialization is that it leaves a company, especially a large one, vulnerable to changes in technology, market shifts and consumer sentiments. Tesla has all of its eggs in one basket. A significant shift in the market, a radical change in technology or even consumers warming to the hybrid concept before taking to the electric one; would be the end for the new car company. It seems that Tesla has nothing to fall back on, no contingency or alternate plan. Although Tesla has taken the electric vehicle to new heights, the technology is not break-through and the concept is not mind blowing. The whole package is a winning combination, in a small segment of the market. The company may be headquartered in California and founded by geeks, but it is still an automobile producer. The automotive industry is dominated by an oligopoly of corporations that historically have been successful at weeding out smaller companies just like Tesla Motors. The competition is fierce and the pockets are deep, economies of scale are a reality in automobile manufacturing. The patents and proprietary technology that Tesla holds right now will be meaningless in a matter of a few years, or several months. If the demand for electric cars increases significantly, Tesla will be forced to compete. Without the differentiation that Tesla has now, the company doesn’t have much of a chance. Tesla has a challenging future; in order to survive it must lower its costs and crank up production. The niche market of wealthy movie stars that want to be seen in a Tesla Roadsters isn’t going to get them there. The high price people are willing to pay for their stock isn’t going to either. Tesla Motors Inc. produces amazing all electric vehicles that are sporty, luxurious, and state of the art. The company’s CEO and spokesperson, Elon Musk is an innovative billionaire, who is enthusiastic, confident, and as cool as the Tesla Roadster. The company has turned the automotive industry upside-down and investors want a piece of it. The stock price is just waiting for another promising news story or SEC filing to soar even higher.†Tesla is, according to all the critics, an incredible car, but it is a company held together with financial bubblegum† (Finger). The only question is when will the bubble burst? Works Cited About Tesla Motors. Teslamotors.com, 2013. Web. 23 Sep 2013. . Alpert, Bill. Recharge Now!. Online.barrons.com, 2013. Web. 24 Sep 2013.

The Reasons For American Economic Prosperity In The 1920s :: essays research papers

Why was there economic prosperity in American in the 1920’s? I know that America on it’s surface was prosperous during the 1920’s. I know this because of the physical signs, and the evidence I have found supporting this concept. Some of the physical signs of the then prosperity are evident today, like the skyscrapers and Empire State building. There were the inventions of manufactured fabrics and materials such as Bakelite, artificial silk and Cellophane. Airlines carried almost half a million passengers a year, which compared to Europe at the same time, was a massive number of people. In this essay I will analyse all the reasons behind the economic prosperity in 1920. World War 1 assisted America’s latter prosperity. Throughout the war American industry benefited, because countries that couldn’t buy goods from Europe, did so from America. And along with this Europe bought products from America, products that they weren’t producing while they were fighting. Furthermore, during the First World War, American banks lent money to their European Allies. In the 1920’s, this was being paid back with interest. The war had also led to advances in technology, such as mechanism and manufactured materials. Production of Iron Ore, coal, petrol and wheat and exportation of chemicals, wheat, iron and steal all had increased considerably by the end of the war. By the end of the war, America had decided to isolate itself from the problems of Europe, and set itself about making the most profit in business. This isolationism built up the confidence of the American people. An increase in personal wealth, demand and output production all helped America’s prosperity. Banks were eager to lend money to businesses and individual’s. With this easy money, and the introduction of hire-purchase schemes, the demand for products increased. Consumer spending was incredibly high, which is reflected in the statistic that in 1920 there were 312 department stores, and by 1929 there were 1395. There was a consumer boom. Business profits rose by 80% during this period, which in turn raised share dividends by 65%. Also some women had continued working as they had done through the war. Both of these elements contributed to giving people again, more money to spend. However, the availability of money was not the only reason for increased consumer spending. New inventions such as vacuum cleaners, refrigerators and washing machines became available, and advertising over the popular radio encouraged consumers to spend more on everyday products.

Louise Essay

The story is entitled by a woman’s name, therefore it gives a foreshadowing that the story will be about a woman or a girl named Louise. The first sentence begins with the personal pronoun I, which means that the story is written in the first person. Thus, taking into consideration that the author is a man, even before the reading, it is possible to suppose that the story will be about a woman who has left a great impression about herself. Usually it is a good impression even if it is about a one-way love. That’s why from the very beginning the story has surprised me much, because it begins with the sentences: â€Å"I could never understand why Louise bothered with me. She disliked me and I knew that behind my back she seldom lost the opportunity of saying a disagreeable thing about me.† Such statement (she disliked me) is a challenge for a curious reader and makes him read up to the end and find the reasons. Having read the story â€Å"Louise† I can say that the main theme of it is the relationships between people. The problem which the author raises is that some people can play on their neighbours’ feelings very easily. They use any possibility to do it. In case of the main character, Louise, it is her mystic heart disease. She could convince everybody, including herself, in its existence and there have not been any attempts to argue, before the narrator has done it. He tells the story in an ironic way, but at first it is a hidden irony. He does not comment on the events, he just presents them. For example, while Louise’s first husband Tom Maitland wants the narrator to believe in her bad condition and for that oxymoron â€Å"she’s dreadfully delicate† and metaphor â€Å"her life hangs on a thread† are used, the narrator brings the proofs of an absolutely different state of things, using the antithesis in parallel constructions: â€Å"I had noticed that if a party was amusing she could dance till five in the morning, but if it was dull she felt very poorly and Tom had to take her home early.† In such way, without any remark, just using antithesis in order to show how Louise’s words contradict her actions, the author shows the irony of the situation: â€Å"Of course it will kill me,† she said – It didn’t kill her.† â€Å"Her friends asked her why she did not marry again. Oh, with her  heart it was out of the question, she answered – A year after Tom’s death, however, she allowed George Hobhouse to lead her to the altar.† The uttered represented speech shows the way of Louise’s usual behavior and produces the necessary effect on the reader. And even that fact that she always repeated to her husbands that she wouldn’t live long and the fact that she â€Å"outlived† both of them produces an ironic effect. I think, it is possible to say that all Louise’s life is one big antithesis, because she has lived more than forty years softly making other people do what she wants but constantly repeating â€Å"I hate the thought of anyone sacrificing themselves for me.† All people who surrounded her describe her with such epithets: â€Å"a frail, delicate girl with large and melancholy eyes†, â€Å"dreadfully delicate†, â€Å"the most gentle wife† and no one has ever thought that it was just a mask. Only the narrator has mentioned the possibility of its existence: â€Å"Perhaps she knew that I alone saw her face behind the mask and she hoped that sooner or later I too should take the mask for the face.† And only at the end of the story he reveals his true attitude to her. He expresses his irony about her behavior openly and says: â€Å"I think you’ve carried out a bluff for twenty-five years. I think you’re the most selfish and monstrous woman I have ever known. You ruined the lives of those two unhappy men you married and now you’re going to ruin the life of your daughter.† Again the antithesis is used. Firstly the narrator himself describes her as â€Å"a frail, delicate girl with large and melancholy eyes† and then from his own words she appears to be â€Å"a selfish and monstrous† and even â€Å"a devilish woman†. Only now it is possible to answer why â€Å"Louise bothered† with the narrator. Only he has seen her real face. The plot structure of the story â€Å"Louise† is as following: 1. There is no exposition. The development of the action begins from the first sentence: â€Å"I could never understand why Louise bothered with me†. 2. The rising action is almost the whole story 3. The climax is in the last dialogue between the narrator and Louise. 4. The falling action is a wedding of Louise’s daughter 5. The denouement is Louise’s death.  The elements of plot are ordered chronologically. The line of narration is straight. There are two main characters: Louise and the narrator himself, where Louise is an antagonist and the narrator is a protagonist. There are  also some flat characters such as Tom Maitland, the first husband of Louse; George Hobhouse, her second husband, and her daughter Iris. Making a conclusion, I want to say that this is a true to life story, which can happen anywhere (the author does not even point to a place where the actions have been developing). To my mind, he decided to write this story because Louise really had impressed him much. It seems to me that in some cases he even admires the ability of this woman to make everything in a way she wants it to be done. It produces such effect that she dies at the day of her daughter’s wedding only because she wants to show that she is really ill and has had right that her daughter’s wedding will kill her. I think it is very topical nowadays, because a lot of people wear their masks in order not to show their real faces and intentions.