http://www.purchasing.com/article/315870-Semiconductor_inventories_will_increase_in_second_half.php?rssid=20263&q=semiconductor+inventory
Summary
This article notifies about semiconductor suppliers who have just begun increasing chip inventories for the first time in a year. In the beginning, inventories at global semiconductor manufacturers were plunged by the decline of 15.1% in the first quarter and 1.5% in the second quarter of 2008. Later on in the year, they were declining even more by 2.2% in the third quarter and 6.6% in the fourth quarter of 2008. However, most importantly, at the end of the second quarter, inventories totalled $24.9 billion, was down from $32.6 billion in the beginning of the second quarter of 2008. Moreover, Carlo Ciriello who is the financial analyst for iSuppli Corp. stated that the falling demand in the first half of 2009 provoked a swift inventory correction among chip suppliers. This article further explains that chipmakers will currently increase inventory growing stockpiles by 5.5% in the third quarter and 1% in the fourth quarter to end this year at $26.5 billion. To simply state, this increase signifies that suppliers expect business to improve and demand for chips to grow.
Connection
The connection between chapter eleven and this article is the inventories. In chapter eleven, we learned that businesses that buy goods for the purpose of selling them at a profit are dealing in merchandise, and a merchandise business will definitely need inventory in order to put up on the market. Inventory is the key to success in a business because without inventory, where will money come in a business? However, if a business can not sell the majority of their inventory, problems will occur such as not enough cash to manoeuvre a business, or having not enough cash to buy other inventory to attract consumers. But without enough inventories, a business can not function properly, and I think that is why the semiconductor suppliers are increasing chip inventories. Although, this plan is a little risky, I believe they can overcome this dilemma.
Reflection
Businesses have to overcome many problems and risks. Take this article as an example, every quarter of the year the business is declining from as small as 1% to an enormous as 15.1% from sales. Personally, I do not think increasing chip inventories will solve this lack of sales predicament. The reason is because sales are decreasing and what happens if the sales do not improve. If this problem occurs then the business will be in a crisis which will eventually result in closing down the business. Perhaps, I am wrong, and sales will improve, which results in businesses demanding for more chip inventories just like what the manufactures are hoping for.
Tuesday, October 13, 2009
Sunday, September 20, 2009
Chapter 6
http://www.vancouversun.com/news/sinks+TransLink+million+hole/1961458/story.html
Summary
This article informs about the dilemma Harmonized Sales Tax (HST) will bring to TransLink’s future financial plans. TransLink had planned on relying to enhance a tax on commercial parking spaces, which would bring in $18 million a year to raise $57 million annually. However, because the parking tax is a sales tax, it is to be eliminated and combined into the HST when it initiates next July 1. This causes the Translink and the transportation ministry officials to have a problem to find a solution to fix this predicament. This article further explains that if the situation is not solved by the time Translink’s mayors’ council chooses among other financial options this fall, the transportation authority may have to result to a base plan that requires it to make drastic service cuts. The mayor’s council has chosen two of the many other financial options: A “funding stabilization” plan that minimizes service cuts but would require $130 million a year more in funding, or a “maintain and upgrade” plan that would strengthen existing service and lay the groundwork for expansion. However, it would require $275 million a year more than the base plan, and it also includes a vehicle levy.
Connection
This article connects to chapter six because chapter six is mainly about the GST and PST, which has been placed by the federal government and the provincial government. The GST taxes on the supply of most goods and services, while the PST base mostly on the price of goods sold to a customer. However, the HST (7%) which is the combination of the GST (5%) and the PST (7%) is supposed to make it more convenient for individuals especially for businesses because businesses will only have to collect one tax instead of two. However, the HST is causing the Translink to lose money after spending numerous amount of it to build new sky trains and sky stations instead of helping the Translink to make profits.
Reflection
I was quite surprised when I heard about HST, and I did not quite understand why we need to form a new tax, when we have been completely fine with GST and PST all these years. In my perspective, with the economy doing so poorly right now, creating HST is not the best choice to help the economy, and the Translink is a perfect example. The Translink have spent millions of dollars in order to provide and make better transportation, and with the HST in the way, how do the Translink make profit. If the “funding stabilization” plan, or the “maintain and upgrade” plan were to happen, we as British Columbians will have to be the ones to pay for the millions of dollars in the future.
Summary
This article informs about the dilemma Harmonized Sales Tax (HST) will bring to TransLink’s future financial plans. TransLink had planned on relying to enhance a tax on commercial parking spaces, which would bring in $18 million a year to raise $57 million annually. However, because the parking tax is a sales tax, it is to be eliminated and combined into the HST when it initiates next July 1. This causes the Translink and the transportation ministry officials to have a problem to find a solution to fix this predicament. This article further explains that if the situation is not solved by the time Translink’s mayors’ council chooses among other financial options this fall, the transportation authority may have to result to a base plan that requires it to make drastic service cuts. The mayor’s council has chosen two of the many other financial options: A “funding stabilization” plan that minimizes service cuts but would require $130 million a year more in funding, or a “maintain and upgrade” plan that would strengthen existing service and lay the groundwork for expansion. However, it would require $275 million a year more than the base plan, and it also includes a vehicle levy.
Connection
This article connects to chapter six because chapter six is mainly about the GST and PST, which has been placed by the federal government and the provincial government. The GST taxes on the supply of most goods and services, while the PST base mostly on the price of goods sold to a customer. However, the HST (7%) which is the combination of the GST (5%) and the PST (7%) is supposed to make it more convenient for individuals especially for businesses because businesses will only have to collect one tax instead of two. However, the HST is causing the Translink to lose money after spending numerous amount of it to build new sky trains and sky stations instead of helping the Translink to make profits.
Reflection
I was quite surprised when I heard about HST, and I did not quite understand why we need to form a new tax, when we have been completely fine with GST and PST all these years. In my perspective, with the economy doing so poorly right now, creating HST is not the best choice to help the economy, and the Translink is a perfect example. The Translink have spent millions of dollars in order to provide and make better transportation, and with the HST in the way, how do the Translink make profit. If the “funding stabilization” plan, or the “maintain and upgrade” plan were to happen, we as British Columbians will have to be the ones to pay for the millions of dollars in the future.
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