Part 1
Every company assumes a certain amount of risk. There is uncertainty in everything we do. In business, anything can happen; interest rates can rise, the economy can slow down, labor can go on strike, the cost of transportation can skyrocket overnight, etc. There is always a risk that we will not have enough sales to meet expenses and that we will not leverage our assets well enough to earn maximum profits.
1. Select a publicly traded company. (You may use the same company you researched for the Discussion Board in Unit 1. Remember a company may only be used once! So, be sure to check the board and make sure that another student has not already selected this company.)
2. Go to www.finance.yahoo.com (Links to an external site.) Enter the company"'s stock symbol in the ""Get Quotes'" box. If you do not know the stock symbol, you can enter the company"'s name in the search tool.
3. In one paragraph, write a description of the company.
4. Using the left hand tab, scroll down and click on the Income Statement. Describe the pattern of change for Total Revenue and Net Income from Continuing Operations.
5. Go to Balance Sheet. In one sentence, describe the pattern of change in Stockholder"'s Equity. Is this a matter of concern?
6. Click on Analyst Estimates. Do the company"'s earnings estimates appear to be more or less promising for the future?
7. Click on Competitors and Industry. How does this company compare to two other competitors and to the industry in terms of margin financial performance?
8. Some people say that many companies, especially small companies, fail because of growth. What do you think about this statement? Explain how this statement relates to financial risk and leverage, and state whether or not you agree with this statement.
Part 2
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As we know, technology changes rapidly. No sooner than we buy software or a hardware component, a new and more efficient item is on the market. Organizations, both large and small, must allocate a large amount of resources to develop the infrastructure for their software and hardware needs. Such infrastructure requires a considerable amount of money.
As a result, many organizations have begun to use cloud computing (also called on-demand computing or utility computing). These remote services allow a company to use and pay for only what they need and use. For example, an organization's data can be stored on remote servers and can be accessed and updated by employees and clients via the Internet. Rather than purchasing business application software, organizations can access such software online. Of course, there are advantages and disadvantages to using cloud computing, so the MIS and business manager must weigh the pros and cons for their particular company.
1. Why is selecting computer hardware and software for an organization an important management decision?
2. What management, organization and technology factors would you consider if you had to decide whether or not to use on-demand computing for your company?
3. What are the "green" advantages of using cloud computing and virtual storage?
4. When you reply to your classmates, compare and contrast their findings and decisions with yours.