The valuation of the National Grid company Assignment

The valuation of the National Grid company - Assignment Example The reason behind the selection of the model can be explained with the help of the following advantages National Grid Company Plc is a multinational company headquartered in London. The primary business includes the supply of electricity and gas utility. The company is listed both in London Stock Exchange and FTSE 100 index. It is categorized under the diversified utilities industry. The company has 20th largest primary listing on London stock exchange. The company also has the secondary listing on NYSE (Hoover, 2011). The market price on October 1st 2012 was  £624.68(closing price of London stock exchange on Oct 1st 2012) (yahoofinance, 2015).Comparing the market price with the intrinsic value calculated using the residual income model above shows that the Stock of National Grid Plc is undervalued as compared to the intrinsic value. The rationale for the stable long term growth rate of 0.05% was that the National Grid is expected to reach the stable level of supply requirement of gas in UK because in the beginning of 2015, which shows minimum shortfall of 15mcm in London, which can be managed easily afterwards through the flows from Norway and Britain with the lingled pipeline. National Grid is in the process to further improve the supply side by the end of 2015, which may lead to the stabilized phase of National Grid Plc (Reuters, 2015). Therefore, after 2015 and onwards the growth in retained earnings are expected to be minimal i.e. around 0.05%. On May 1st 2015, National Grid Stock has reached at the level of 886.30 which is slightly overvalued from the intrinsic value calculated as on 1st October 2012. Therefore, it can be implied that the price of National Grid Stock is mean

Improving Organisational Performance using HPW Assignment

Improving Organisational Performance using HPW - Assignment Example Through information sharing the employees will be loyal to the organization. This will increase productivity, which will boost the performance of the organization. Creation of a strong communication network is another benefit of high performance work systems. This is because in the instance of the market competition, the company will depend on the employees in forecasting on the probable problems, eradication of obstacles and manufacturing of new products while focusing on product quality (Yeatts & Hyten, 1998). HPW enable the employees to interact freely with the management, which enables the management to hold constant meetings with the employees whereby through the meeting the management will be able to form a strong communication network. This will lead to efficient decision-making and execution of the necessary progress. Organizations will be able to engage the employees in formal trainings that will assist in minimizing the mistakes and ensuring quality products. The employees will have a better understanding of the production process and information technology system used, thus facilitating effective problem solving within the organization and improvement in performance (Murray, 2002). After IBM executed the formal training of the employees in information technology, the firm realised a 19 % increase in performance. This improvement was because of the formal training, which led to notable improvement of work output in terms of quality and quantity. Research has revealed that an increase in the formal training has led to reduction of wastage of organizational resources. HPW is vital to an organization since it entails the execution of the compensation plan. The payment that employees receive... This paper mainly focuses on how the organizations are working to improve their performance by using the High-performance work (HPW) practices. High-performance work practices refer to the situation in which organizations ensure that employees are highly involved in all organizational matters. The aim of the study is to understand the impact of employee management and treatment to the overall performance of an organization. In the paper two computer manufacturing companies are used as examples, these companies are Cray and IBM. Business Case High-Performance Work (HPW) is very vital to all organizations. Basing on research, the results have indicated that most companies achieve excellent performance through the implementation of the HPW practices. High-performance work entails the human resources management procedures that enhance perfect employee performance. Numerous studies have revealed that whenever the employees are excellent in their performance, there is always an automatic i mprovement in the performance of the entire organization because there will be augmented productivity. HPW is very important since it enables the employees to do excellent work, which results in improved productivity and organizational growth. In the conclusion, we see that the management of any organization has to ensure that it upholds the rights of all employees and adheres to all rules and regulations. This creates trust between employees and their managers and in the end increases performance.