Thursday, 30 April 2015

ASS2# Step3

Three services of Hays
1.       Recruit, engage and retain people
2.       Provide industry training
3.       Provide leadership program

Recruiting company usually get paid for placing a qualified candidate into a client's organization for a specific vacancy. They do not find people jobs. 
The most common fee structure is take some percentages of the annual remuneration of the placed candidate, payable when the candidate has signed his/her contract or starts working. 
So for example say you are getting $10 an hour you’re probably actually getting $18 pound and hour but the agency is taking the $8. Some charge you a fee if you find employment through them. Some charge the company through getting an employee for them for advertising their company

Contribution Margin (CM) = Sales (S) – Variable Costs (VC)
Contribution Margins are the difference between what a products cost (variable and fixed costs) for the cost of the services.


Services
Recruit, engage and retain people
Provide industry training
Provide leadership program
Selling price
$200 per person
-5 hours /day
$800 per person
-5day course
$920 per person
-5 day course
Variable costs
$120
$550
$580
Contribution margin
$80
$250
$340


Traditionally sales people have been remunerated on a combination of base salary and sales commissions calculated as a percentage of their sales. This is a fixed and variable component model and it makes “break-even point” the most important item to manage.
Variable costs on the other hand, fluctuate with activity. As activity rises, so do variable costs — things like advertisements, commissions, and travel costs tend to be variable.
Managing the ratio between fixed and variable costs is one of the few opportunities a recruiting manager has to demonstrate business acumen. This cost structure lends a number of advantages and becomes even more important when demand cycles are unpredictable.

Why not only produce the product or service with the highest contribution margin?
Firm may have all different contribution margin in each product. As long as it has a positive contribution margin, they make profits and they can sell it for more than it cost to produce it.
So it is better to producing than not producing at all.

Some of constrains that my company might face are:
1.       Reputation of the company- the reputation influences recruitment process and people are most interested in applying in a good reputation company
2.       Organisational Policies – people may not happy with company’s policy that they are applying for.
3.       Unattractive Jobs – if job has lack of opportunities for promotion or not good salaries and working condition may affect to recruitment process.
4.       Training costs- Although providing training is an essential benefit to both business and the employee as employee training programs ensure that all workers have the skills, knowledge and experience to perform job tasks safely, it is costly to provide to the all employees and workers.

5.       It is necessary to introduce a new technology in order to improve their competitive and it cost a lot.

ASS2# Step2

Step2: Restate financial statements








ASS2# Step1


Step1:
Analysing financial statement! When I read chapter 4 at first, I had no idea about restating if I am honest. I had to look over and over again but it was still tough to get understanding.  However after attending lecture week 6 and 7 it was easier to understand this chapter with lecturer’s explanation and it also helped me to do step 2 of assignment 2 which is restating financial statements.
I found difficult to distinguish operating and financial activities when I restating of the financial statements. It was also confusing to allocate cash to operating asset and financial assets. The hardest part was changes in equity as I had to calculate tax benefits.

So these are my key concept questions about chapter 4.

KCQ:
Dividend is transfer value rather than adding value
Free cash flow
What are key drivers of economic profit?
Measuring cost of capital
Understanding difference between operating and financial activities
How do I distinguish operating and financial activities?
Understanding difference between transfer value and adding value

What’s different between economic profit and net profit?
Relationship between profitability and efficiency
Tax benefits

What I learnt?
1.       Powerful way to view information to restate the annual report.
How? (How do we restate?)
è Need to know what is operating and financial activities and need to know how to distinguish these.

Why do we do restating?
èTo better view, better understanding have to restate the annual report

I was wondering why they don’t publish restatement in their annual report if it is really important
2.       To focus the future, one must conducted the past.
3.       Distinguish operating and financial activities of a firm
4.       The two common frameworks used to analyse firms
          A.       DCF
          B.        Economic profit
I wondered again why they don’t use it in their annual report because it is important as it is the most efficient way to look at the key value drivers of economic profit and cash flow,
What is the difference between net profit in normal report and economic profit?
Economic profit= NO profit /NOA = %- Cost of capital (interest payment)
5.       How firms add value?
       Difference between adding value and transfer of value

6.       Financial statement help readers to make better informed decisions in their dealing with the  entity.


Wednesday, 1 April 2015

Step4


Chapter 1

I found really easy to read and understand this study guide I liked the way the study guide is written and it really helped me to get some clue and understand the concepts of accounting.
I really want to say thanks to Martin as I didn't have any difficulties with understanding this chapter. To be honest as English is my second language I hate to read textbook. However it was quite fun to read and I liked the sentence “Accounting is, at the end of the day, a model. Not a fashion model, or a model plane, but a business model”. Haha.
However, it was little bit boring to read the list of businesses in Yeppoon. It was too much photos and details and I just skipped that part as I don’t think it is necessary.
I strongly agree that “accounting is about reality” Cannot imagine life without accounting.

KQC
Assets and liabilities represent the value of the firm. Equity represents the value of the interest of its owners in the firm

Fundamental accounting equation: Assets –Liability = Equity
Extended accounting equation: Assets = Equity + (Revenue-Expenses) +Liabilities

What does five elements of accounting?
What is really going on in a firm?
What is accounting? (This is still the easiest and hardest question for me!)
Double entry accounting and the reason of using it.

Chapter 3

After reading this chapter I could go through my annual report. It really gave me some clue to get to know my firm better by using and reading annual report. I also used the footnotes of the annual reports to get the details.

KQC
The firm balance sheet show that it financial position 
There are four main financial statements: balance sheet, income statement, statement of changes in equity and cash flow statement.
Income statement shows the revenue and expenses so we can get to know the story of how the company is going how much they made the profit over the period.
I still have problems in understanding the ration analysis and how it works with accounting.





Saturday, 28 March 2015

My 3 top blogs:

-The presentation of blog is very good looking. Not only good theme gives me the look and feel but also well prepared her company’s information.

-Simple looking but contains every single details of her company and information. It was fun to look up her blog.


-Eye-catching blog! Can see her effort on study. Like the style and easy to read and understand

So yes, It was the first time I have looked at a company’s annual reports and I was overwhelmed with a lot of information with a lot of pages compare to my friend’s annual report as everything was new to me. Also I found it very curious about the currency as they are using Euro and how foreign currency translation affects to my company. After reading chapter 1 and 3 of the study guide helped me to get some clue for organising and alanysing financial reports.  

There are Hays’ annual report links:





Hays’ annual reports gives a lot of information so I can easily understand what really happened in that year. This annual reports not only shows financial statements but also gives how they create value and the economic backdrop in their markets for the year. As I cans see their progress of the year I have started to understand bit more about the Hays.

I found that only 2011 annual report contains Trade and other payables in non-current liabilities but not in following years. I was wondering what the Trade and other payables exactly mean is.

Through the annual report, I would get to know financial highlights in each year and compare among years of 2012 to 2014

In 2012, Hays delivered good net fee growth of 8% driven by a strong performance by International business and excellent conversion rate of 37.5% driving 11% growth in operating profit. Consultant headcount increased by 4%.

In 2013 16% net fee declined in Australia driven by 25% fall in perm business and a step down in mining activity but 4% net fee growth in Asia. Strong conversion rate of 32% achieved due to control on costs.

2014, there was 5% increase in Group net fees and 20% increase in operating profit. Also there was 19.4% of conversion rate of Group net fees into operating profit and 5,357 croup consultant headcount up 6% over the year (2013: 5,037).

KCQ’s are following:



What does consolidated mean

What does trade and other payable mean?

Cash and cash equivalents?

What's in other reserves- own shares? 

What does PSP and DAB means?


I am very satisfied about the company that I have been given. as Hays is one of the biggest company in recruiting industries with good reputation. They built a platform that takes that expertise across the world and into many different industries and sectors which made in interested in their company. Also, as I used to work in human resource department in Korea for 1 year so it was bit easy to approach as I am familiar with recruiting.

Spread sheets of Hays











Friday, 27 March 2015

ABOUT HAYS



ABOUT HAYS

Hays is the one of the top global recruitment consultancies and leading global experts in qualified, professional and skilled recruitment. With international offices around the world, our truly global footprint enables us to provide professional recruitment services that meet the demands of job-seekers and employers whose needs extend beyond local markets.
Hays offers a highly professional and specialised service to candidates and clients alike and is proud of the long established track record we hold with many of the world's leading institutions
Hays’ values underpin our skills, behaviours and way of doing business. These values are: Ambitious,  Passionate about people,  Expert and  Inquisitive.

INTRODUCING HAYS
Hays’ Specialist Recruitment business begins in 1969, when former CEO Denis Waxman opened the business. This business was acquired by Hays plc in 1986, the Specialist Recruitment business forming part of the diversified larger Hays Group. He led the company ever since and has the same passion and commitment until he retired after nearly 40 years with the specialist recruitment business of Hays.
Over last 45 years the company has grown. Hays now has 237 offices in 33 countries (UK & Ireland; Continental Europe & Rest of World; and Asia Pacific) and Hays employs 237 staff in 237 offices across 33 countries and 20 specialisms. It’s a powerful success story. 



Companies and organisations rely on Hays to find high quality professionals for a range of roles in accountancy and finance, Accountancy and financial services, legal, human resources, information technology, Construction& Property, Engineering& Manufacturing, and Health & Social Care. Professionals who are looking for a new role, whether it’s on a permanent, interim or contract basis, trust Hays to find them their ideal job. 


In the vast majority of the businesses Hays operate a contingent fee model that fees paid by the company when an agency introduced candidate accepts a job with the client company.






HAYS  on YouTube

I found a video about  Hays' international business. It was very interesting to see that how their recruiting experts are the power behind experts working across various sectors around the world.