Honeywell Company Case Study Example | Topics and Well Written Essays - 1500 words

Honeywell Company - Case Study Example 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, 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 This section