2 Essay Example | Topics and Well Written Essays - 1000 words - 3

2 - Essay Example equal to capital and liabilities because when a person or an entity start their business, they inject the capital which can be in form of cash or other assets therefore at the beginning of the entity all there is are assets and capital. When the company expands it purchases goods or offers services which give rise to further assets and further liabilities as loans are acquired and credit is obtained out of that same capital. Some amount is also generated as profit for their business. Therefore, all the transactions of the entity take place through the same capital and the assets of the company must always equal their liabilities and capital. The statement of financial position gives the position of the company at a given moment of time where it provides the description of company’s assets, liabilities and equity from its establishment to that particular date, while the Income statement provides the details of all the income and expenditure activities during the year as at the date of balance sheet. In a nut shell, the financial position is the standing at that date while the Income statement is the movement during the period which is why the dates begin with ‘as at’ and ‘year ended’ respectively. The figure of net cash flow will mostly be different from that of net profit because the cash flows of the company are purely due to the monetary items such as sale, purchase, monetary income of dividend and interest, monetary expenses of salaries and rent etc. These expenses are purely of monetary nature while the net profits of the company not only involve these monetary items but also involve non cash items such as depreciation, fair value, amortization etc therefore normally cash and cash equivalents of the company are usually not equal to their net profit. Certain expenses are not affected by the cash flows of the company as it does not involve cash dealing on the time of the transaction. These expenses or income do not affect the cash flows because

The Current And Potential Use Of Knowledge Management Within The Essay

The Current And Potential Use Of Knowledge Management Within The Airline Industry - Essay Example The Current And Potential Use Of Knowledge Management Within The Airline Industry The various sectors of both AirAsia and the Malaysian Air travel industry were considered and the study research conducted on how they have strategized their operations in order to reap the good benefits of Knowledge Management (AirAsia 2007). The key aspects of Knowledge Management with concern to the airline industry included the information communication technology, organizational learning that involves collective approach towards gaining intellectual capital by the organization, and knowledge sharing that is done between various organizations and institutions either within or externally to acquire better skills and knowledge (Christensen 2007). An industry analysis was conducted and it was clear that the Malaysian Air Services is an oligopoly. It was found out that ICT had been used in innovation, knowledge development and utilization and knowledge capitalization whereas organizational learning and knowledge sharing were so fruitful in improving the modus operandi and new business development for the two airlines. It was thus recommended that the AirAsia knowledge management practices needed to support their expanding business besides sustenance of its cost-leadership advantage and MAS would have to face challenges of its hybrid strategy of competitive pricing and differentiation that would in turn make its brand recognized as a five-star value carrier. (Oxford Business Group 2007). 2.0 Introduction The term Knowledge Management is a diverse field though does not have a specific common definition throughout the universe. In a general sense this is the collective use of skills, principles, facts and rules embodied in a firm’s knowledge assets to add value to the organization by gaining competitive knowledge over othe r firms (Stonehouse and Pemberton, 1999).Knowledge Management is a prerequisite to successful operation by various companies in the current hyper-competitive and ever-dynamic environment where survival can only be a product of their ability to develop longing knowledge-based competencies which can be easily adapted (Nonaka, 1991).though it be difficult to manage, it is most likely that it is the most strategic organizational asset (Shepard, 2000) and is the dominant way of gaining competitive advantage. Knowledge can be classified as either generic or specific though to a certain degree specific knowledge is unique to the firm hence it is more likely source of competitive advantage and is the basis of main competences in comparison with generic knowledge which is even so necessary for business operation (Stonehouse and Pemberton, 1999).the airline industry with its very competitive nature, dynamic stance, complexity alongside its high dependence on knowledge management gives