Honeywell Company - Case Study Example

Download file "Honeywell Company" to see previous pages... Honey well company divided payout has increased over the years, this increase can be associated with the increased efforts to increase labor productivity through outsourcing, the following chart shows dividends paid out by the company over the years: data was retrieved from yahoo finance
From the above chart it is evident that the divided payout level were low for the period 1976 to 1992 with only slight increases,
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for the period 1992 to 2000 the divided payout amount increased at an increasing rate and for the period 2000 to 2004 dividends remained constant and for the period 2004 to 2008 the divided payout amount increased at an increasing rate, this shows that there has been an increase in the profitability of the company and this has been due to increased efforts top outsource cheap labor in other parts of the world.
From the above chart it is evident that productivity has increased over the years, labor productivity increased gradually for the period 1987 to 1993 but declined in the period 1993 to 1997. For the period 1997 to 2000 labor productivity increased and this increase in labor productivity can also be associated with outsourcing, this is because aerospace manufacturing companies have increased productivity of labor through outsourcing.

Major findings:
From the above trends it is evident that the profitability of the Honeywell company has increased over the years, this increase can be attributed to reduced production costs that are realized through outsourcing, it is also evident that labor productivity in the aerospace industry has also gradually increased over the years, their productivity level indicates the labor costs incurred by companies with relation to production, it is therefore evident that through outsourcing companies are able to increase their profitability.

Other sources of data:
Data on labor productivity and divided yield could also be collected in other ways, the above are secondary sources of data and other primary sources could be used in the collection of data, data can be collected through interview and questionnaires, in order to collect this data a research questionnaire should be prepared or an interview conducted with the company representative where data could be collected and recorded. Primary sources are that best sources of data although they are time consuming and costly compared to secondary sources.




Regression analysis:
Data variables will include labor productivity and dividends paid out each year for the company, the following table shows the data used:
Year
labor productivity
Honeywell company dividends
1988
87.409
0.51875
1989
87.646
0.45
1990
89.095
0.45
1991
94.098
0.4
1992
96.494
0.25
1993
101.304
0.29
1994
95.564
0.3245
1995
95.652
0.39
1996
99.413
0.45
1997
100
0.52
1998
119.149
0.6
1999
120.8
0.68
2000
103.394
0.752
2001
115.688
0.752
2002
118.649
0.752
2003
119.019
0.752
2004
113.245
0.752
2005
124.959
0.824
2006
117.935
0.908

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