Wonderful Wire Cable Berhad (manufacturing company) Essay Example

Wonderful Wire Cable Berhad (manufacturing company) Essay As for the manufacturing company, the business risk may arise whether the company able to control the output prices. If the company has ability to adjust output prices when there are changes input costs, such as raw material, the lower the degree of business risk. Manufacturing company has the authorities to increase the selling prices of its products, when the raw material costs increases, subsequently company would not bear extra losses. Alternatively, company could not raise the selling prices when the raw material costs increases, the profit of the company will be reduce. Hence, company bears the business risk. For instance, there was a significant decreased in Wonderful Wire Cable Berhads sales which may due to unexpected and unprecedented escalating prices of copper and aluminium which seriously hurt the earnings of cable manufacturers in the country. On the other hand, retailing company, Hai-O Enterprise Berhad does not face this problem as the company does not incurred raw material costs as the manufacturing company. Retailing company get the final goods from the manufacturer and sell off the goods through branches, therefore retailing company does not have significant problem on this. The price of final goods that purchased from the manufacture is more stable. Furthermore, for the manufacturing company such as Wonderful Wire Cable Berhad, will need more finance in order finance its fixed assets. Due to its nature, manufacturing company need more assets to produce their products, so company need more fund to get assets and maintain the assets. We will write a custom essay sample on Wonderful Wire Cable Berhad (manufacturing company) specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Wonderful Wire Cable Berhad (manufacturing company) specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Wonderful Wire Cable Berhad (manufacturing company) specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Company may have not enough cash or fund to finance; in order to get more fund, short-term borrowings and long-term borrowings will be adopted. Therefore, the gearing of the manufacturing company will be higher than the retailing company. In 2007, Wonderful Wire Cable Berhad has negative financial gearing which mean the company has very high accumulated losses. This is caused by the increased prices in copper and aluminium. Companys equity unable to cover the borrowings, this could lead company into difficulties. However, retailing company such as Hai-O Enterprise Berhad has high operating gearing might be due to the large inventory that the company need to keep in the warehouse. The inventory that kept in the warehouse need to be guard by security or managed by the staff, this may incurred more extra expenses. As we know that, operating expenses is the ratio of the companys fixed cost to its total costs. Therefore, the Hai-O Enterprise Berhad has higher operating costs compare to financial gearing. Company have low financial gearing which mean company does not rely much on borrowings. This gearing indicates that this company is safe for investment. In conclusion, Hai-O Enterprise Berhad and Wonderful Wire Cable Berhad does not represent all the retailing and manufacturing industry. But, it has indicates that the companies need a good risk management to reduce their risk into an acceptable level. Thus, this could ensure the company able to run their operations smoothly without liquidation problems.

The Story of Bakelite, the First Synthetic Plastic

The Story of Bakelite, the First Synthetic Plastic Plastics are so prevalent throughout the world that we rarely give them a second thought. This heat-resistant, non-conductive, easily-molded material holds the food we eat, the liquids we drink, the toys we play with, the computers we work with, and many of the objects we buy. It’s everywhere, as prevalent as wood and metal.   Where did it come from?   Leo Baekeland and Plastic The first commercially-used synthetic plastic was Bakelite. It was invented by a successful scientist named Leo Hendrik Baekeland. Born in Ghent, Belgium, in 1863, Baekeland immigrated to the United States in 1889. His first major invention was Velox, a photographic printing paper that could be developed under artificial light. Baekeland sold the rights to Velox to George Eastman and Kodak for one million dollars in 1899.   He then started his own laboratory in Yonkers, New York, where he invented Bakelite in 1907.  Made by combining phenol, a common disinfectant, with formaldehyde, Bakelite was originally conceived of as  a synthetic substitute for the shellac used in electronic insulation. However, the strength and moldability of the substance, combined with the low cost of producing the material, made it ideal for manufacturing. In 1909, Bakelite was introduced to the general public at a chemical conference. Interest in the plastic was immediate. Bakelite was used to manufacture everything from telephone handsets and costume jewelry to bases and sockets for lights bulbs to automobile engine parts and washing machine components.   Bakelite Corp Fittingly, when Baekeland founded the Bakelite Corp, the company adopted a logo that incorporated the sign for infinity and a tag line that read The Material of a Thousand Uses. That was an understatement.   Over time, Baekeland obtained about 400 patents relating to his creation. By 1930, his company occupied a 128-acre plant in New Jersey. The material fell out of favor, however, because of adaptive issues. Bakelite was fairly brittle in its pure form. To make it more malleable and durable, it was strengthened with additives. Unfortunately, the additives dulled the hue colorized Bakelite.  When other plastics that followed were found to hold their color better, Bakelite was abandoned.   Baekeland, the man who ushered in the age of plastic, died at the age of 80 in Beacon, NY in 1944.