U choose a topic Case Study Example | Topics and Well Written Essays - 1000 words

U choose a topic - Case Study Example This water industry operated under strict regulations from both governmental and nongovernmental organizations concerned with quality assurance. One such organization includes the International Bottled Water Association (IBWA), and the America’s Food and Drug Administration (FDA). These bodies are usually concerned with facilitating adoption of safety and quality related standards to consumer markets. Within any economic environment, bottled water industry plays a significant role in enhancing management and rational utilization of ground water (Gleick 54). In addition, this industry provides numerous opportunities for commercial ventures involving different stakeholders like suppliers and logistical manufactures. In the recent past, statistics indicates steadily increasing sales in bottled water within the global consumer market. In 2009 alone, sales of bottled water were approximately $78 billion within that fiscal year alone. In 2010, sales increased by 4.3% to hit a revenu e target of $81 billion. This specific increase within that short period indicates availability of business opportunities within the industry (Eshleman 71). In this regard, certain success factors facilitate achievement of production, distribution and sales objectives by involved companies. One such factor is conformance to production standards required by the industry. Bottled water industry is under governance by federal and state authorities in matters relating to product quality. In order for any organization to gain considerable recognition within any given marketing environment, they will first develop reliable standards of production allowed by relevant authorities. Within the American market, success only comes after an organization gains quality approval from the Food and Drug Association. Apart from such a local quality assurance authorities, other producers choose to advance towards attainment of standards required by international bodies like IBWA (Vasconcellos 84). In t his context, success is directly related to level of conformance to existing standards of product quality in the market. Another integral success factor in bottled water industry involves marketing strategies employed by a given company. In this case, an example of strategy that directly influence marketing trends include distribution and sales patterns used by a marketing agency to reach target consumers (Eshleman 88). Consumer trends suggest that individuals are more likely to purchase a convenience related product whenever their proximity to that product increases. In actual consumer markets, bottled water occupies same shelves as those of other soft drinks in convenience stores. In addition, bottled water can also be sold along with other soft drinks in restaurants, hotels and snack shops. This means that the ability of an organization to avail their product to these premises increases their chances of sales success. From a more practical illustration, Coca Cola utilized its sof t drink distribution channels to deliver its bottled water brands to the market. Fortunately, Coca Cola had a fully developed and efficient distribution channel for their soft drink market. The company was under no commercial obligation to develop a new distribution channel for their new products (Eshleman 92). In this regard, the company in subject supplied mineral water filled bottles to store shelves selling their popular soft drinks. Changes in the industry Since its inception on a commercial scale level,

Indirect method vs. Direct method. Statement of Cash Flows Essay

Indirect method vs. Direct method. Statement of Cash Flows - Essay Example Likewise, decreases in the current liabilities are recorded as decreases in the company’s cash inflows. In addition, the indirect method begins with the income statement’s net income data. Further, noncash deductions are added back to the net income to arrive at the correct cash inflow (Stickney, 2009). For example, the income statement shows a deduction for depreciation expense. Since the indirect methods starts with the net income, the depreciation expense reduced the company’s net income amount. Consequently, the proper process is to add back the depreciation expense to the net income. The reason is very obvious. All company expenses have a correspondent credit to cash or cash equivalents. However, there was no cash outflow or payment made when the company debited depreciation expense. To arrive at the amount of cash that flowed into the company’s coffers, the next step is to add back the cash-absent depreciation expense. The same process is applied to the amortization expense. Amortization expense is debited but there is no corresponding credit to cash or cash equivalents.... There is a big difference between the cash inflows from operating activities and the cash inflows from investing activities. The cash inflows from operating activities represent the cash inflows that come from the normal day to day business operations. For example, the company is engaged in the selling of television sets. Cash inflow figure comes from the day to day selling of the televisions sets. In terms of the company’s cash outflows come from the purchase of the television sets from the television store’s suppliers. If the company is a barber shop, the company’s cash inflows come from the customers who pay for their haircuts. The company’s cash outflows include the amounts paid for the electricity that is used to light the barbershop (Stickney, 2009). The cash inflows from investing activities represent just what account states. The amount represents cash inflows and cash outflows from non-operating activities. For example, the grocery company buys st ore inventory. The amount paid for the store inventory is part of cash inflows from operating activities. The company buys the inventory in order to sell the inventories to their current and prospective customers. On the other hand, the company buys the adjacent building. The amount paid for the building is classified as cash outflows from investing activities. The company is investing in the building because the company wants to expand the grocery business. When the company sells its old grocery building at a discounted price, the amount collected is classified as cash inflows from investing activities. The company decides to sell the old grocery building, which was originally recorded as cash outflows from investing activities, when the old grocery building was purchased. In the same