Assigment 2_MGT322_Group 3

Assigment 2_MGT322_Group 3 - Problem #2 A.) The argument in...

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Problem #2 A.) The argument in the article that Six Sigma’s aim is to increase efficiency and to cut costs is an overly parsimonious depiction of the true aim of Six Sigma. An accurate definition of Six Sigma would be as follows, “a structured, data driven methodology for eliminating waste from processes, products, and other business activities while having a positive impact on financial performance.” The concluding part of definition was highlighted because this is an important part of Six Sigma that the QualPro Inc. report failed to acknowledge. If increased efficiency and cutting costs result in stock price denigration than the process should not be implemented. One of the fundamental axioms of corporate business is to increase stock price. Any methodology that does not take this into account is an invalid methodology. Six Sigma’s goal is to increase efficiency and cut costs, but only if doing these things proves to be advantageous; has a positive impact on financial performance. B.) A quality management program like Six Sigma does impact stock and from my perspective in a positive way, but there are several other relevant factors that can also affect stock price. Stock price is influence according to a Forbes.com article, Eight Factors That Influence Daily Trading some of the factors most conducive to affecting stock price are: Economic Data: Like interest rate changes that can drive money out of one market into another. Analyst Upgrade/Downgrade : For example, if Lowe’s (Home Depot’s major competitor) stock is downgraded because of slackening demand Home Depot’s stock may devalue as well because they sell similar products and investors may seem the slacking demand as a universal trend. Other factors like this can also lead an analyst to downgrade or upgrade a stock price. Web Sites : Company information is now available and articles by analyst are several times contradictory. If investors respond, more to the negative information the company’s stock will plummet. Six Sigma is an important factor in determining stock price as analyst would look upon this as
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Assigment 2_MGT322_Group 3 - Problem #2 A.) The argument in...

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