Harvard Business Review
Report to Richard Norton, CEO of Software Associates
1. Prepare a variance analysis report based on the information in Exhibit 1. Would this be sufficient to explain the profit explain the profit shortfall to Norton at the 8 am meeting? ( see highlighted answers below exhibit 1)
2. Prepare a variance analysis report based on the information in Exhibit 2.
3. Prepare a spending and volume variance analysis of operating expenses based on the additional information supplied in Exhibit 3.
4. Prepare an analysis of the revenue change, separating the volume effect (increase in number of consultants) from the productivity effect (billing percentage).
5. Prepare an analysis of actual versus budgeted revenues, consultant expenses and margin using the additional information supplied in Exhibit 4.
Exhibit 1 Software Associations Income Statement , Q2, 2000
Revenues $3,264,000 3,231,900 ( F)
Expenses $2,967,610 $2,625,550 ( U)
Operating Profit $296,390 $606,350 ( U)
Profit Percentage 9.1% 18.8%
F= Favorable, U = Unfavorable
Description | Favorable / Unfavorable |
Revenues | Favorable |
Expenses | UnFavorable |
Operating Profit | UnFavorable |
this exhibit requires the following
a) Billing hours
b) Billing rate
Exhibit 2 Budget and Actual Income Statement: Quarter 2 2000
Revenues $3,264,000 3,231,900
Consultants' salaries and fringes $2,029,050 $1,748,250
Operating Expenses $938,560 $877,300
Total Expenses $2,967,610 $2,625,550
Operating Profit $296,390 $606,350
Profit% 9.1% 18.8%
Number of consultants (FTE) 113 105
Hours supplied 50,850 47,250
Hours Billed 39,000 35,910
Average billing rate $83.69 $90.00
Exhibit 3 Expense Items: Budget Q2, 2000
Actual Budget % Variable
Advertising and promotion 22,100 15,100 0%
Administrative and support staff 225,000 191,250 80
Information systems 126,200 120,000 80
Depreciation 23,400 22,700 0
Dues and subscriptions 11,800 13,100 80
Education and training 36,200 38,900 80
Equipment leases 23,500 22,440 25
Insurance 33,600 32,200 0
Professional services 39,500 34,700 0
Office expenses 42,100 36,550 100
Office supplies 86,200 89,600 80
Postage 27,300 24,700 80
Rent-real estate 117,260 117,260 0
Telephone 40,000 38,500 100
Travel and entertainment 57,800 56,300 100
Utilities 26,600 24,000 25
Total 938,560 877,300
Exhibit 4 Line of Business Budget and Actual Operating Statistics: Q2 2000
Contract Solutions Total
Number of consultants (FTE) 64 49 113
Billed hours 24,000 15,000 39,000
Billed Revenues 1,344,000 1,920,000 3,264,000
Hours supplied 28,800 22,050 50,850
Consultant Costs 1,036,800 992,250 2,029,050
Number of consultants (FTE) 56 49 105
Billed Hours 20,160 15,750 35,910
Billed Revenue 1,088,640 2,143,260 3,231,900
Hours Supplied 25,200 22,050 47,250
Consultant costs 756,000 992,250 1,748,250
I created a tab for each exhibit in Excel (attached) and created a "report" for each. I added ...
I created a tab for each exhibit and created a "report" for each. I added some analysis and thoughts on each that you could use in your write up. You can cut and paste the exhibits into your report. Your response includes four exhibits with commentary and five ideas for additional analysis if more data was available. A hypothesis about market share is shared.
Recruitment and Selection Strategies in HRM
Select a job for which as a HR practitioner, you may be required to hire an employee. You must be able to obtain at least the position description and person specification for this job. It could be a job, one you have found on an internet site; or one you have discussed with someone working in a particular organization. It is important you can access sufficient detail about the job to be able to prepare this assignment properly. The advertisement for the position should not be any more than six month old. (Job position must be in Australia)
Hint: if you choose a job from a newspaper or recruitment website, you can usually obtain job descriptions and person specifications from the organization or the recruitment firm. Government and semi-government organizations usually supply this information as part of the recruitment package.
Based on the information you have about the job, address the following issues:
Part A-Recruitment strategy
 Identify and list the key selection criteria you would consider for the position; either from the person specification, or from your interpretation of the documentation you have been provided (i.e. some will detail specifically the key selection criteria for the position; others will simply provide a list of required knowledge, skills and abilities).
 Describe and justify the methods you would use to recruit an appropriate pool of applicants.
Part B-Selection strategy
 Assuming you have a pool of potentially suitable short-listed applicants, describe and justify the selection methods you would use to identify the most suitable applicant.
Appendix: you must attach the job advertisement (including date of advertising), the job description and the person specification (sometimes referred to as job specification) for the position.
Report format (excluding report front matter, reference list and appendices). Harvard reference style, at least 15 references; all references must be academic journals. The report should include an effective introduction and conclusion; an executive summary of no more than one page to preface the report; and a table of contents to give guidance to the reader.View Full Posting Details