Case Analysis Study Example | Topics and Well Written Essays - 250 words

Analysis - Case Study Example With industry analysis we have estimated few companies ROE who are performing significantly for long time. For example: In scale of ROE (Return on Equity) GSK (GlaxoSmithKline) presents .46, .45, NOVARTIS presents .151, .140 and Abbott presents .203, .198 for the consecutive year 2010 and 2011. In this comparative positioning among the competitor’s Abbott can sustain with ROE, which will eventually protect asset and efficiency improvement in the long run. With the global recession this ROE ratio appears a slowdown in recent years, which is accurate in compare to other ratio like ROA, which came across the result as the recent years are higher than previous, this present’s short term affect of business operation than long term picture of existing activities. For a manufacturing company the model we can get most viable to implement is â€Å"Reduce operating expenses and staff salaries†. In recent competition, price of the products are increasing due to different raw materials and fuel price increases, besides these when operating and staff salaries become good amount product price gets uncontrollable and business may lose its market for high price. Under these conditions implementing commission based model would be a bigger save for the manufacturing companies for the long term sustenance, in terms of price control. Commission based activities and fulltime urgent functionalities have to be separated to identify the weight of the assignment or the internal task. There are some sorts of activities which can be best performed upon task performance commission basis, instead of continuous salary whether there are sufficient need of particular skill or not. For example machine operator of the core item needs to be employed in salary bas is, but the market seller as well as product design and development research activities has to be commission based on specific amount to complete the task