Why Did the League of Nations Fail in the 1930s?

Why did the League of Nations fail in the 1930s? CAUSE OF FAILURE| MANCHURIAN CRISIS| FAILURE OF DISARMAMENT| ABYSSINIAN CRISIS| The self-interest of leading membersThe League depended on the firm support of Britain and France. During conflicts, they were not prepared to abandon their own self-interest to support the League. Economic sanctions did not workLeague members would not impose them since they were worried that without America they would not work. When sanctions were imposed they were easily broken. Lack of troopsThe League had no armed forces and Britain and France were not willing to commit troops.Decisions were slowThe League met infrequently and took too long to make decisions. The need for all members to agree on a course of action undermined the strength of the League. America and other important countries were absentGermany did not join until 1926 and left in 1933. The USSR did not join until 1934 whilst Japan left in 1933 and Italy in 1937. The USA was never a member . The League therefore lacked authority. The Treaties it had to uphold were seen as unfairThe League was supposed to uphold the peace treaties, but it became apparent that there were unfair.This undermined the league. | When the league judged that Japan were wrong, instead of obeying and withdrawing from Manchuria, Japan said they intended to invade more of China and resign from the league proving they were self interested to obey the league. Sanctions would be meaningless without America. The league considered banning arms sales, but member countries disagreed. China and USA put up tariffs against Japanese kids, this put Japan in an economic crisis. Japan had a very powerful army.There was no prospect of Britain or France risking their navies or armies in a war with Japan. Only the USA or USSR would have the resources to remove the Japanese from Manchuria by force but they were not members of the league. When China appealed to the League, it took a full year for officials of the Le ague to report back from China and Japan what the truth was. (Lytton Report)Japan invaded Manchuria but still wanted more. Britain was too scared to argue in case there was another war. If America would have been present, they could’ve stopped Japan. Germany wanted all the countries to disarm to their level but the conference didn’t agree, so Germany left the conference then the League. If America had been part of the League and disarmed it is most likely that other countries would have followed as America was such an important country and this would have been the same if any other important country had disarmed. | Mussolini was humiliated from Abyssinia defeating him and wanted revenge. Britain and France signed the Hoare-Laval Pact agreeing to give Mussolini the best parts of Italy.When this news reached the media there was an outcry. Sanctions would only work if imposed quickly but each week a decision was delayed. Sanctions were ineffective because they did not inc lude war materials such as oil. As Britain and France had a limited amount of troops, they could not/didn’t want to help Abyssinia and let Mussolini invade the state. The League took too long deciding what to do about Mussolini, so he had time to bring his troops into Abyssinia and build armed forces. When a decision was finally decided, it was ignored. |

The Staff Development

This paper will review the characteristics of a teaching program for a critical care department in a local community hospital. This will include a review of teaching strategies that focus on the adult learner based on their development stage. A teaching program for the critical care department would entail small group and student-centered teaching strategies that focus on communication enhancement and core skill competency development among learners. This teaching approach emphasizes more autonomy in the clinical care setting and encourages the teacher to consider learner characteristics among clinical and professional workers. The educational program described will be offered in hospital and other generic health care organizations where proactive team building skills and communication skills development are necessary to ensure a multi-disciplinary approach to learning and care giving. The teaching program provided will include a team approach to healthcare education encouraging participants to learn and adopt strategies for conversing and communicating with diverse populations including other professionals, students, clinical workers, patients, families and community members. Teaching Program for Critical Care Department Foundation Learner characteristics for employees in a critical care work setting are unique. Adult learners generally have specific characteristics that require use of effective strategies for learning and teaching the adult learner (Huttly, Sweet & Taylor, 2003). Studies suggest that multiple approaches may be more effective for helping critical care staff develop, including a â€Å"team healthcare approach† which educators can adopt and simulate in an educational setting â€Å"through interprofessional education and vertical integration of student years† (Huttly, Sweet & Taylor, p. 5). Teaching strategies must be based on learner characteristics and the place of employment students intend to pursue their career to be successful. Teaching strategies that are varied are most likely to be successful, and may include information technology training in skills development and writing genres and education about working in a multidisciplinary health care setting where a depth and range of activities and problems solving skills are nurtured among future healthcare practitioners (Biggs, 1999; Huttly, Sweet & Taylor, 2003). Teaching strategies must incorporate multiple aims including improving adult critical care workers perceptions and experiences of their education and learning environment and supporting learners at varying developmental levels (Curzon, 2000). Among the skills necessary include improving communication skills in a patient centered manner; this may require that educators focus on assessing the student practitioner and providing information based learning in small groups that emphasizes problem based and problem solving learning (Huttly, Sweet & Taylor, 2003). Many support teaching strategies that incorporate good communication, skills and core competency training and specialist options that are student based and emphasize group study skills to support ongoing learning at each development stage among adult learners; further research suggest that the ability of adult learners to discover information and understand subject matter in a clinical setting depends in part on their ability to uncover information about subjects important to them and their professional careers (Huttly, et al. 2003; Wilby, 2001). It is important that teachers adopt strategies that allow them to act as â€Å"agents of change† in the classroom, drawing on their own educational experience to provide students with a learning environment that is â€Å"condensed but focused† (Huttly, Sweet & Taylor, 150). The clinic provides an adequate learning environment for all medical students, and teaching strategies in this environment should focus on providing students with skills, knowledge, expertise and professional ability to treat patients correctly and efficiently (Huttly, Sweet & Taylor, 2003). Teaching strategies that tend to work well in a clinical environment reflect learner characteristics, are generally subject-centered, consider student's pre-clinical ability and education and enable students to tackle â€Å"problem-oriented, practical experiences† geared toward their developmental level (Townsend, et al. 1997; Huttly et al. 2003). Small group learning is also considered â€Å"the most meaningful learning experienced by adult learners† and useful for all curricula including medical, particularly when characterized by â€Å"active participation of all group members† (Huttly, Sweet & Taylor, 101). Further small group experiences can enhance learning by involving them in various processes including â€Å"relating, applying, generating ideas and recognizing and resolving problems† (Huttly, Sweet & Taylor, 101). It is a more active than passive form of teaching that provides students with more stimulating methods of interaction and developing, enabling better responsibility for learning among students, helping develop generic clinical skills and promoting all adult learning characteristics and styles (Biggs, 1999; Huttly, Sweet & Taylor, 2003). Particularly in clinical education student centered modes of teaching including small group work allow students to adopt more active and autonomous roles better preparing them to function as team members in their medical communities at later dates and times (Huttly, Sweet & Taylor, 2003). There is ample evidence supporting the role of active learning in the clinical environment. There is also ample evidence suggesting that student centered approaches to teaching help clinical student learn to communicate better in a team environment and help develop more comprehensive communication and problem solving skills, important attributes within the medical profession (Huttly, Sweet & Taylor, 2003). This compared with more teacher centered approaches, strategies that in the past have proven less successful among adult learners with varying learning characteristics, particularly those learning in a clinical environment where it is important that students adopt transferable and generic skills (Huttly, Sweet & Taylor, 2003).

Drug Addiction Essay

-Drug addiction is a complex brain disease. It is characterized by compulsive, at times uncontrollable, drug craving, seeking, and use that persist even in the face of extremely negative consequences. -Drug seeking becomes compulsive, in large part as a result of the effects of prolonged drug use on brain functioning and, thus, on behavior. For many people, drug addiction becomes chronic, with relapses possible even after long periods of abstinence. Drug addiction is a chronic, often relapsing brain disease that causes compulsive drug seeking and use despite harmful consequences to the individual that is addicted and to those around them. Drug addiction is a brain disease because the abuse of drugs leads to changes in the structure and function of the brain. Although it is true that for most people the initial decision to take drugs is voluntary, over time the changes in the brain caused by repeated drug abuse can affect a person’s self control and ability to make sound decisions, and at the same time send intense impulses to take drugs. It is because of these changes in the brain that it is so challenging for a person who is addicted to stop abusing drugs. Fortunately, there are treatments that help people to counteract addiction’s powerful disruptive effects and regain control. Research shows that combining addiction treatment medications, if available, with behavioral therapy is the best way to ensure success for most patients. Treatment approaches that are tailored to each patient’s drug abuse patterns and any co-occurring medical, psychiatric, and social problems can lead to sustained recovery and a life without drug abuse. Similar to other chronic, relapsing diseases, such as diabetes, asthma, or heart disease, drug addiction can be managed successfully. And, as with other chronic diseases, it is not uncommon for a person to relapse and begin abusing drugs again. Relapse, however, does not signal failure — rather, it indicates that treatment should be reinstated, adjusted, or that alternate treatment is needed to help the individual regain control and recover. How Do Drugs Affect The People Around Environment * One of the largest ways in which drug abuse affects families is the creation of an unstable environment. Children especially are influenced and affected by their parents behaviors. As such, a sibling can also be affected by the actions of another sibling who is abusing drugs. Drugs can affect the way family members talk, act and care for their families. For example, the drug can often come before basic needs such as food, clothing or even the love and attention a child needs to have a stable environment. All of these actions can have long-lasting effects on others in the household, especially young children who grow up with drug abusers as role models. These effects can include the child following in the abuser’s footsteps, especially if they have never seen what a functional family should look like. Financial * Drug abuse can affect both family and friends financially. This can come both from enabling and from theft. Enabling is the action of helping a user with his habit because you feel bad for him, or feel it is keeping him around long enough for you to be able to change them. One of the main ways that enabling occurs is through directly or indirectly financing the drug habit through loaning or giving money to the addict. Drug abuse can also lead addicts to steal from friends and family members to support their habit. Violence * Drug abuse can also affect family and friends by inviting violence into the relationship. There are two main times where violence can quickly escalate for an addict: during extreme highs and during withdrawal. Alcohol is an especially guilty substance for causing violence when users are well over the legal limit of blood alcohol content. This can cause violence both through direct actions, such as getting in a fight, as well as indirect actions, such as driving a car while intoxicated. Violence can also affect the friends and family of a drug abuser during withdrawal. One of the most common symptoms of alcohol withdrawal is irritability and anxiousness. The desire to use can quickly cause users to become violent to even close family members in order to get help or money for their next high. Abandonment * One of the most heart-breaking effects of drug abuse on families especially is abandonment. Once drugs have altered the nerve pathways in the brain, the desire to use quickly becomes more important to anything else in the drug addict’s life. Friends and family members quickly get replaced by the next score of the drug of choice. This can often lead to divorce or the loss of children to state custody due to a lack of ability to be a loving and providing parent. There is also an increased risk of parents or spouses being locked up in prison for extended periods of time, leaving their children to grow up without a mother or father. The effects of this abandonment may stick with kids all the way through adulthood. Diseases Involved In Using Drugs Date: Tue 29 Jan 2013 Source: University of Oxford/Medical Research Council, press release [edited] The genetic variant rs12252-C was present in 69 per cent of Chinese patients with H1N1 swine flu [influenza A/(H1N1)pdm09]. A genetic variant which explains why Chinese populations may be more vulnerable to H1N1 swine flu has been found by researchers at the University of Oxford and Beijing Capital Medical University. This finding could help identify those at high risk of severe infection and help prioritise those in highest need of treatment The study, led by Dr Tao Dong of the University of Oxford, showed that people with a specific genetic variant are 6 times more likely to suffer from severe influenza infectionthan those without. The particular variant rs12252-C is occasionally found in Caucasian populations and was already known to be associated with more severe influenza disease. However, the research teams in the UK and China showed that this variant was present in 69 percent of Chinese patients with severe pandemic (swine) influenza in 2009 compared with 25 percent who only had a mild version of the infection. The results are published today [29 Jan 2013] in the journal Nature Communications. The study was part-funded by the Medical Research Council Dr Tao Dong of the Weatherall Institute of Molecular Medicine at Oxford University says: â€Å"Understanding why some people may be worse affected than others is crucial in improving our ability to manage flu epidemics and to prevent people dying from the virus. It’s vital that we continue to fund research that examines flu from the smallest details of our genetic code in the populations around the world that continue to be vulnerable to infection.† The results suggest that the gene variant increases the severity of, rather than susceptibility to, influenza infections. It is thought that the DNA change increases risk of severe infection by limiting the effectiveness of a protein which helps to defend against influenza and similar viruses. This protein, known as IFITM3, has been previously shown to slow down virus replication in mice.Professor Andrew McMichael, co-author of the study at the University of Oxford, says: â€Å"The apparent effect of this gene variant on the severity of influenza is of great interest. It remains to be seen how this gene affects the whole picture of influenza in Southeast Asia, but it might help explain why new influenza viruses often 1st appear in this region of the world.†. During the 2009 pandemic, hospitals in China admitted patients with severe infection but also, unusually, patients with mild infection who, under normal circumstances, would not require hospitalization. This â€Å"open-door† policy provided a unique opportunity to capture a relatively unselected group of patients with divergent outcome s, observed and managed under similar clinical conditions. The introduction provides the background and rationale for this investigation. â€Å"The SNP rs12252-C allele alters the function of interferon-induced transmembrane protein-3 increasing the disease severity of influenza virus infection in Caucasians, but the allele is rare. However, rs12252-C allele is much more common in Han Chinese. The authors report that the CC genotype is found in 69 percent of Chinese patients with severe pandemic influenza A H1N1/09 virus infection compared with 25 percent in those with mild infection. Specifically, the CC genotype was estimated to confer a 6-fold greater risk for severe infection than the CT and TT genotypes. More importantly, because the risk genotype occurs with such a high frequency, its effect translates to a large population-attributable risk of 54.3 percent for severe infection in the Chinese population studied compared with 5.4 percent in Northern Europeans. Interferon-induced transmembrane protein-3 genetic variants could, therefore, have a strong effect on the epidemiology of influenza in China and in people of Chinese descent.†The authors conclude that: â€Å"These data clearly extend the earlier observation in a European cohort that the IFTM3-rs12252CC genotype is significantly associated with influenza severity. The association is primarily with severity of disease rather than susceptibility to infection, although larger studies are required to prove this specific association. IFITM3 may have an important role in virus replication and dissemination following the initial infection. The much higher level of the CC genotype in the Han Chinese population compared with Caucasians may place the Chinese at a higher risk for developing severe illness upon influenza infection. It is not known whether those who are more severely infected with influenza virus are more likely to spread the infection. If this is the case, the high frequency of the C allele in Asian populations may influence the epidemiology of influenza.† – Mod.CP Government approach: ISABELA CITY, Basilan, Jan 21 (PIA) — The Peace and Development Coordinating Committee (PDCC) also known as Team Basilan has resolved to re-organize and activate the Provincial Anti-Drug Council to address the escalating drug problem in the province. In a recent meeting of Team Basilan, Provincial Administrator Tahira Ismael recognized the urgency of addressing the illegal drug situation in the province. She fears that the drug menace has slowly crept into the different communities in Basilan, after receiving unconfirmed reports from the ground on illegal drug use. The representative of the Philippine Drugs Enforcement Authority (PDEA) who requested anonymity confirmed the proliferation of illegal drugs in certain areas of Basilan. The PDEA representative disclosed that for lack of personnel and resources, agents from nearby Zamboanga City will provide the needed assistance during legitimate operations and raids in the area. PDEA was also thankful for the full support and initiatives of the local police and the military in addressing the drug problem. PDEA has only one agent for Basilan. Provincial Police chief PSSupt. Mario Dapilloza said that in his capacity as provincial director, he has activated the provincial anti-illegal drugs task force in the police department. With the deputization from PDEA, the task force was able to arrest the most wanted person in December last year. With the situation, Team Basilan has resolved to craft a resolution requesting PDEA for at least two additional agents for the province. â€Å"We need at least three PDEA agents, to be assigned in strategic areas in the province,† Ismael said. Moreover, Team Basilan has resolved to ask Gov. Jum Akbar for an Executive Order creating the Provincial Anti-Drug Council. Ismael said that the council will immediately convene as soon as the governor has approved the E.O. (RVC-PIA9, ZBST) LOILO CITY, Dec. 29 (PIA6) — Now it is not only the taxi drivers that should be randomly tested for illegal drugs, but also employees in offices and business establishments. Philippine Drug Enforcement Agency (PDEA) officer-in-charge Atty. Ronnie Delicana said the agency is pushing to expand the random drug testing among workers. â€Å"We will get the cooperation of the local officials to pass ordinances that require business establishments to allow random drug testing in their workplaces,† Delicana said in a radio interview. â€Å"This will be a pre-requisite to issuance of business permits,† he added. He also said that there should be a widespread culture of zero drug abuse in workplaces to boost PDEA’s campaign against illegal drugs. â€Å"We will be pursuing the signing of memoranda of agreement with different partners to realize drug-free work places,† Delicana said. Meanwhile, for 2012, PDEA arrested 438 suspected drug peddlers in 277 operations, where 34 of those arrested were among the 1,383 suspected drug personalities in Western Visayas, who are in the agency’s watch list. As to cases filed in court, PDEA records show that 482 were filed in court with 3,118 are still pending for lack of witnesses and evidence. The operations also yielded as per record, about P2.7 million worth of drugs and paraphernalia seized. (JCM/ESS-PIA 6, Iloilo) the government is doing actions with the issue. Programs: The Church of the Nazarene is now being asked to become a major partner in a drug prevention program in the Philippines. The program is centered around a high quality video presentation produced by Heinz Fuzzle, a freelance producer for Gospel Films who has worked on a number of projects with the Church of the Nazarene in the past. Portions of the piece were shot on the campus of Asia-Pacific Nazarene Theological Seminary in Manila. The film features interviews from a variety of personalities in the Philippines, including a Nazarene young man who was converted from a life of drug abuse. With 57% of the Philippine population under the age of 20 years old, drug abuse is becoming a serious problem in many parts of the country. Approval has been granted by Philippine government officials to show the film in 40,000 high schools, universities, and colleges across the nation. The film has a strong Christian message with follow-up linked to local churches. The Philippine Field Office hopes to launch 11 film teams to meet this new challenge. This is a tremendous open door for taking the Gospel into every corner of the Philippines

Historical Film Movement Film Noir as the Forerunner of the Present- Essay

Historical Film Movement Film Noir as the Forerunner of the Present-day Crime and Action Movies - Essay Example He presented a different kind of suspense thriller and was the first to attract attention from French film critics. His films presented the audience the flaws of the characters. He created the first psychological thrillers, one of them was Psycho, released in the 1960s. Psycho is based on the story of a serial killer named Ed Gein who was featured in a novel by Robert Bloch (1998). The term ‘psycho’ refers to the psychological state of a criminal, or someone who has committed or is about to commit a crime without consciously knowing it. Movies based on serial killing have been popular, but in the 60s, there were a few serial killings, one of these was perpetrated by the notorious Ed Gein (also one of the inspirations for the character of Hannibal Lector). Hitchcock bought the rights to the novel for $9,000.00. We can see at the start of the movie the use of shadows and windows. Marion and Sam peer out of the window through the blinds. Some other props used are stuffed birds’ shadows as they loom over Marion as she eats, and the perpetrator of the killing – the ‘mother’ – is seen in only shadows. Mirrors are used, reflecting the character Marion as she packs, later her face in the policeman’s sunglasses, and her hands as she counts out the money. Janet Leigh’s character Marion Crane is an effectively realized character, one who shares similarities with Norman Bates. Both are on the run – she, literally, from her past, and Norman from the present and future – and both have secrets. Marion’s secret has to do with the contents of her purse which contains a stack of bills that belong to her boss. Norman’s secret concerns the contents of his house, a spooky old hilltop mansion overlooking the Bates Motel in which Norman’s long-dead mother continues to reside, barking orders and hurling insults at her wayward son. One of the memorable scenes of Psycho is the shower scene which became controversial during Hitchcock’s time, but for which earned him the reputation as the maker of valuable film noirs.

Management Control Systems and Decision-Making Strategy Essay

Management Control Systems and Decision-Making Strategy - Essay Example Kober, Ng and Paul (2007, p. 427) reveal that a corporate strategy is not constant but is subject to conditions like entry into new markets or acquisitions. However, changing strategy is subject to uncertainties and deviations from defined measures that only MCS mechanisms can overcome. Although addressing deviations from actual metrics involves using diagnostic controls, uncertainties require continued dialogue and debate amongst managers and between managers and subordinates, and facilitate development and consideration of new ideas and information. Such information and ideas generated from MCS are essential for informed decision-making(Kober, et al., 2007, p. 429). Consequently, Langfield-Smith (1997, p. 210) reveals that informed decisions form the basis for strategic management, which ranges from strategic formulation to implementation. Further, the role of strategy formulation is solely a managerial activity that is concerned with establishment of strategies while strategy impl ementation is concerned with the translation of the formed strategy into actions(Porter, 1990, p. 44). The management additionally ensures that all defined strategic actions have resources and administrative systems allocated to them. The formation strategy has to respond to expected reforms to seek differentiation from competitors and seek new markets(Kober, et al., 2007, p. 447). Although the strategy informed by MCS is essential for effective organizational management, the priorities of the strategy may be insufficient to acquire competitive advantage or high organizational performance(Chenhall & Langfield-Smith, 1998, p. 243).

Ryanair the low-fares airline (Stratigic management) Assignment

Ryanair the low-fares airline (Stratigic management) - Assignment Example The balance sheet of the company shows that there has been a steady increase in the organisations net profit from 2006. The organisation is regarded as the world’s most profitable airline and this can be attributed to its strategic position in the budget airline industry. However, despite showing positive signs of growth in the industry, it has been recommended that Ryanair should embark on a drive to improve its marketing and communication strategies since it has been receiving negative media coverage. There is need to portray a positive image of and counter the negative publicity given to the airline by the media. It has also been recommended that the airline should strive to improve its industrial relations given that the employees are not fairly treated in this particular case. Employees should be treated as valuable assets in the organisation to ensure its viability. ... anair’s competitors-------------------------------------------------------------9 6.0 Strategic capabilities---------------------------------------------------------------9 7.0 Recommendations-----------------------------------------------------------------9 8.0 Conclusion--------------------------------------------------------------------------10 9.0 Bibliography------------------------------------------------------------------------11 Fig 1SWOT analysis--------------------------------------------------------------------6 Fig 2 Porter’s generic strategy model------------------------------------------------8 1.0 Introduction During the current period, it can be noted that organisations operate in an environment that is characterised by external factors of which in some cases, the companies have little control over them. Against this backdrop, this report seeks to critically evaluate the Rynair’s strategic position with regards to its external environment, competi tive forces, competitors, opportunities as well as threats. A SWOT analysis will be carried for the airline. The report will also discuss the company’s financial analysis, strategic capabilities, strengths and weaknesses. Recommendations about the measures that can be made to maintain the company’s success will be given at the end of the report. 1.1 Overview of the organisation Ryanair is a budget airline in Europe and it was modelled after the successful US carrier, Southwest Airlines. Ryanair was founded in 1985 by the Ryan family with the aim of providing scheduled passenger services between Ireland and the United Kingdom (UK). The aim was to provide an alternative to the then state monopoly carrier, Aer Lingus. Since its inception, the company went through a great deal of turbulence which resulted

Crisis Prevention & intervention in healthcare (management of Essay - 4

Crisis Prevention & intervention in healthcare (management of assaultive behavior)6 - Essay Example Patients in crisis can be a threat to others and to self. Restraining entails restricting the arms, legs and tying the waist to reduce or contain mobility. Patients can be confined in hospital willingly or unwillingly. Restrain prevents a patient from moving their head, body, arms or legs freely. Items used to facilitate medical examination such as bandage are not considered restrain. Measures to restrain patients with assaultive behavior are carefully selected because restriction or seclusion could lead to negative outcomes if excessively implemented. Therefore, recommended measures should be least restrictive and steered towards specific result. Restraining techniques are recommended only when necessary. Restraining can be granted if the patient or family request. Advice for restrain by the healthcare professional should be accompanied by the length of time the assaultive person should be restrained. Observations should be made when the patient is restrained and recorded at regular intervals. Reviews can be made to assist the patient overcome their condition. Restraining is not used as a convenient way of containing the patient when healthcare professionals want to discipline the assaultive patient. Additionally, healthcare professionals should be aware of the body alignment when implementing least restriction to avoid body injuries. The patient should be able to change movement and exercise. Body circulation is important to enable the body to continue functioning as Ballard and Rockett (2009, p. 34) mention. Psychological restrain may precede chemical restrain and physical measures to restrain. Psychological restrain is given in the form of a program or a therapy. Activities are designed to meet the diverse situation of the assaultive behavior by withholding certain privileges. The privileges withdrawn do not include the basic needs. The patient given retrain will have access to shelter, clothing and food. Patients

Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Essay

Tax-Planning Client Letter on Irrevocable Trusts, Gift Tax, and Estate Tax - Essay Example The first thing you need to know is that irrevocable trusts are treated as independent legal entities that own their assets. It is also important to know that in the course of establishing an irrevocable trust is likely involve unexpected tax consequences. Some of the tax consequences are likely to be unfavorable. Since you would like the income from the trust to be paid to your two grandchildren for 20 years, such payment would be accompanied by income tax. In this regard, you will need to complete Form 1041 and file it to report the trust income. This would be required if the trust earns over $600 in the course of tax year. Nevertheless, the income from the irrevocable trusts would be taxed in the same approach as individuals. You, as the trustee, will also be required to file and deliver copies of Schedule K-1 to each of the two grandchildren, who are the beneficiaries, in their first distribution during the tax year (Clausen, Givner, Kavagh, kaye, & Kinyan, 2014 ). There is also the issue of gift tax. In this regard, the transfer of your assets to the irrevocable trust is accompanied by gift tax liability. The only exclusion is a case of $13,000 per annum on each of the beneficiaries. If the gift exceeds $13,000, it is subjected a maximum tax rate of 35%. In such a case, you would be required to file the gift tax by filing Form 709.This would however be necessary if you owe the gift tax. It is important to note that your grandchildren, as the beneficiaries, will not be liable for the gift tax (Clausen, Givner, Kavagh, kaye, & Kinyan, 2014 ). Another case of possible tax liability is estate tax. Estate tax would be imposed after your death. This will be done on the portion of your estate that surpasses the gift tax exclusions in the same year of your death. Your executor after then would be required to file Form

Money Demand Term Paper Example | Topics and Well Written Essays - 2000 words

Money Demand - Term Paper Example The price variable is the price for domestic cars. Federal Funds Rate is initialized as FFR. It refers to how much an individual citizen of America is giving away just by holding on to one dollar. It is also known as the return’s proxy. Money is the defining factor in any economy therefore it is critical to regulate how much one has and how much one intends to spend. For the organs that deal with the amount of money that flow in a country’s economy, it is very crucial that the levels are checked regularly. This will help cub issues like money laundering and exaggerated loan rates. Money laundering is a very common thing in today’s world. Liquidity is referred to as the extent in which assets or securities can be purchased or sold in the marketplace without affecting the product’s price. Liquidity as we know it is characterized by relatively high levels of activities in trading. Those assets that are easily bought and sold are considered to be liquid assets. In whatever investment one engages in, there is a measurable amount of liquidity. It is not just because of the amount of the sellers or buyers present but mainly because of the product’s demand. They are not the same, but they are similar. Just to illustrate the point, there might be a very high demand for a product but the same product’s liquidity is low. However, another confusing term that is easily confused with liquidity is marketability. Marketability according to scholars is an assets ability to be converted to cash. Unlike many economic terms that are associated with it, liquidity does not have a formula that can be used so that one can find its valu1e. Despite this, some people use a technique that gives off a relatively good answer. It is calculating using liquidity ratios. It is considered safer, even within the learned circles to invest in liquid assets as compared to the illiquid assets. This is because from an investors point of

Lenten Candles †The Color and the Significance Essay Example for Free

Lenten Candles – The Color and the Significance Essay Lent candles have their own significance in the observance of Lent. The burning candles stands for the arrival of Christ as the illumination of the world. The shades of the candles can differ. Conventionally, three purple candles and one rose-colored or pink candle are used. The purple indicates that Lent is a period of regret as well as hope. Many churches use blue candles instead of purple ones to highlight the positive hope of the period. A candle is lit on the first Sunday of Lent with an additional one lit on every following Sunday. The blissfully colored pink candle is set aside for the third Sunday of Lent, Gaudete Sunday. Gaudete, which actually refers to rejoice in Latin, is the initial word of the Introit for that Sunday: Several Christians append an exact explanation to the four candles. The first candle, or the Prophet Candle, stands for the optimism and expectation of Christs incarnication as forecasted at so many places in the Old Testament. The second candle recalls how Christ was born in modest style, in the trivial village of Bethlehem. Therefore this candle is often referred to as the Bethlehem Candle. The third candle is identified as the Shepherds Candle. It brings to mind the joy of the shepherds when they left after having seen the Christ-child in the stable. The fourth candle is the Angels Candle. It take us back to the blissful crowd that declared the good news of our Saviors birth.

Strategies for Elderly Care and Dementia

Strategies for Elderly Care and Dementia INTRODUCTION There is often a stigma for people who have dementia because of the poor understanding of dementia and how to provide care for them. Although there is a strong association between dementia and old age this is not always the case as there are many reports of dementia in younger people. There is currently approximately 4000 people under the age of 65 with dementia in Ireland(The Irish National Dementia Strategy, 2015) In my report I will explore this in more detail after using various methodologies including internet, books, articles, journals, published reports, class notes, family members who have cared for a dementia sufferer and my own life experience. Main Body What is Dementia? What are the physiological and psychological changes that occur for the older person with Dementia? Dementia is the term used for a wide range of symptoms which sees a decline in intellectual functioning which is caused by a degeneration of the brain. (Hse.ie, 2015) There are many different forms of dementia I will cover the four main ones. Alzheimers Disease Is the most common type of Dementia. It starts off gradual and progress’s slowly. There are three main stages mild, moderate and severe. Each person progress’s differently. Symptoms can get worse during times of stress, ill health(infection) or fatigue. (Dementia.ie, 2015) Lewy body Disease Progress’s quickly and usually effects the part of the brain that control thinking and movement. Therefore the symptoms often are similar to parkinson’s disease ie tremor, shuffling gait. (Dementia.ie, 2015) Fronto temporal lobe Dementia Is caused by damage to the frontal/temporal lobes of the brain. Aspects effected are control, reasoning, personality and movement. Usually effects people at a younger age compared with Alzheimer’s (Dementia.ie, 2015) Vascular Dementia Deterioration of cognitive function caused by mini strokes that are not detected. (Dementia.ie, 2015) Explore the persons needs in relation to the condition. As all types of dementias develop in different stages and each person goes through these stages at different rates of time it is important to have different care plans that are updated regularly for each person if any changes occur even small changes in behaviour or health. Developing a person centred dementia care approach will give the highest quality of care to the individual. According to Tom Kitwood this is ‘Care that is centred on the whole person not just on the diseased brain’ (Vladut, 2014) This can be done if we as carers take the time to find out about the persons life, their interests, likes and dislikes so that we have a foundation to work on in building up a good relationship with the person. Maintaining a healthy diet M.U.S.T analysis is performed – diet adjustments made and food intake monitored Intake and outtake of fluids documented Daily activities done to a routine is very important for a person with dementia but keeping flexibility in mind depending on the individual Reminiscence therapy activities example photo book of ones life, smell of turf fire etc Assistance with personal hygiene, dressing and mobility and letting the individual do as much as they are able to maintain independence Maintaining a safe environment at all times Keeping their dignity, respect and independence in mind at all times Assisting them keep a good self image by letting them choose their clothes and what hairstyle they would like Active listening with the individual at all times What is the role of the carer and Multidisciplinary team in assisting the person with Dementia, what practises need to be implemented, what care settings are available? The role of the carer and Multidiciplinary Team (MDT) is to provide the best quality of care to the person with dementia. To include: Safe Environmentadhering to good housekeeping Risk assessment on environment Living Environmentgood manual handling practices Familiar surroundings Allowed have their own belongings and personal items ie, photos, home like settings if in a care home. Daily ActivitiesSonas Therapy, ie light exerises, music, smelling oils, tasting and textures and lights. Reality Orientation Therapy, using dolls, household items and day to day activities. Household duties – such as folding napkins or doing light gardening Personal AppearanceGood personal hygiene Correct clothing and footwear Assistance with hair if not manageable Maintaining clients dignity, respect and privacy at all times Good RelationshipsBuilding up a good stable relationship is vital Understanding their needs and taking the time to listen Social interaction with other clients, family, friends and workers It is vital in order to keep the client’s independence for the MDT to take our time with the person with dementia and allow them to do as much as they are able According to dementia.ie who conducted a countrywide survey there are 55 care settings in Ireland who are specific to dementia, which is very low considering the high numbers of people with Dementia according to the census in 2011. In the Laois area there is only 1 facility who specialise in dementia care available to people. St Brigids Hospital, Shaen, Portlaoise. 32 patients occupy this facility. According to the census in 2011 711 people in Laois have dementia(Anon, 2015) State the current approaches towards developing quality services for people with Dementia. The National Dementia Strategy Ireland was set up to make an improvement for the people with dementia and their families and carers. It provides information for the clients, their family and carers about the different support networks available to make their quality of life to a high standard. This is ongoing since 2011; they are hoping to have all the strategies in place by 2016. This will be a major breakthrough for Dementia Care in Ireland. (Dementia Services Information and Development Centre, 2015). Anon, (2015) Dementia Services Information and Development Centre – St James Hospital currently offer various courses on Dementia Care for Care workers and management. The Carers Association, Portlaoise offers information and support for carers on Dementia. (Carersireland.com, 2015) Alzheimer’s Association, Portlaoise offer a face to face support network for Alzheimers clients and their family and carers, and hope to open an Alzheimers Cafà © in Portlaoise where people with dementia, their family and carers can go to have a cup of tea to share their stories with other sufferers of dementia.(Alzheimer Society of Ireland, 2015) There has been a major breakthrough regarding medication for dementia, Aricept (Doneperil HCI) – made by Pfizer is a prescription medicine used to treat all types of dementia and can prolong the illness by up to 15 years if used after an early diagnosis. This medication works by stopping the breakdown of chemical called acetylcholine in the brain which when levels of this chemical decrease in the brain signs of dementia appear. (RxList, 2015) Conclusion During my research for this project I have learned that there is an ongoing research and development in ireland for Dementia care. This is much needed in order to combat this disease. I have learned that early diagnosis is key when dealing with dementia and with more widespread education a lot more people could deal with this this disease better. With our aging population I feel this is vital for this country as statistics say this disease will only get worse so with the help of many organisations and researchers we can deal with dementia head on. This will immensely improve the quality of life and quality of care for people with dementia. 2011 Census figures (Estimated number and projected growth in the number of people with dementia in Ireland by age group, 2011-2046(The Irish national Dementia Strategy) References Hse.ie, (2015). HSE.ie Coping with Dementia. [online] Available at: http://www.hse.ie/eng/services/list/4/olderpeople/tipsforhealthyliving/dementia.html [Accessed 14 Jan. 2015]. Leonard, S. (2015). Column: 4,000 people under the age of 65 are living with dementia in this country. [online] TheJournal.ie. Available at: http://www.thejournal.ie/readme/national-dementia-strategy-ireland-1840029-Dec2014/ [Accessed 14 Jan. 2015]. LIVESTRONG.COM, (2011). The Physical Effects of Alzheimers | LIVESTRONG.COM. [online] Available at: http://www.livestrong.com/article/104354-physical-effects-alzheimers/ [Accessed 19 Jan. 2015]. Nutricia.ie, (2015). What is dementia? www.nutricia.ie. [online] Available at: http://www.nutricia.ie/articles/what_is_dementia [Accessed 12 Jan. 2015]. Aricept.com, (2015). Aricept Home. [online] Available at: http://www.aricept.com/ [Accessed 12 Jan. 2015]. Alzheimers Society, (2015). Behavioural and psychological symptoms in Alzheimers disease The Journal of Quality Research in Dementia, Issue 1 (lay summary) Alzheimers Society. [online] Available at: http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=311pageNumber=3 [Accessed 19 Jan. 2015]. Alz.org, (2015). Vascular Dementia | Signs, Symptoms, Diagnosis. [online] Available at: http://www.alz.org/dementia/vascular-dementia-symptoms.asp [Accessed 19 Jan. 2015]. Dementia.ie, (2015). Dementia. [online] Available at: http://www.dementia.ie/ [Accessed 19 Jan. 2015]. http://www.atlanticphilanthropies.org/sites/default/files/uploads/Irish-National-Dementia-Strategy-Eng.pdf [Accessed 19 Jan. 2015]. Alzheimer Society of Ireland, (2015). Laois Alzheimer Society of Ireland. [online] Available at: http://www.alzheimer.ie/Services-Support/Services-in-your-county/Laois.aspx [Accessed 19 Jan. 2015]. Carersireland.com, (2015). [online] Available at: http://carersireland.com/services.php [Accessed 19 Jan. 2015]. Vladut, C. (2014). What is person centred care in caring for people with dementia? NurseBuddy Next Generation Home Care. [online] NurseBuddy Next Generation Home Care. Available at: http://nursebuddy.co/what-is-person-centred-care-in-caring-for-people-with-dementia/ [Accessed 19 Jan. 2015]. Anon, (2015). [online] Available at: http://www.genio.ie/files/Dementia_Prevalence_2011_2046.pdf [Accessed 19 Jan. 2015]. RxList, (2015). Aricept (Donepezil Hydrochloride) Patient Information: Side Effects and Drug Images at RxList. [online] Available at: http://www.rxlist.com/aricept-drug/patient-images-side-effects.htm [Accessed 19 Jan. 2015]. Alzheimers Society, (2015). Brain imaging in dementia The Journal of Quality Research in Dementia, Issue 1 (lay summary) Alzheimers Society. [online] Available at: http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=311pageNumber=4 [Accessed 19 Jan. 2015]. Leonard, S. (2015). Column: 4,000 people under the age of 65 are living with dementia in this country. [online] TheJournal.ie. Available at: http://www.thejournal.ie/readme/national-dementia-strategy-ireland-1840029-Dec2014/ [Accessed 19 Jan. 2015]. Alzheimers Society, (2015). Stem cells in dementia The Journal of Quality Research in Dementia, Issue 1 Alzheimers Society. [online] Available at: http://www.alzheimers.org.uk/site/scripts/documents_info.php?documentID=77pageNumber=7 [Accessed 19 Jan. 2015]. FETAC LEVEL 5 HEALTHCARE SUPPORT1EDEL BREW

Walmart Business Analysis

Walmart Business Analysis Contents (Jump to) Walmart’s Current Strategy Organizational structure, culture, and control systems SWOT Analysis for Walmart Porter’s Five Analysis of Walmart Key Strategic Issues at Walmart Personal SWOT Analysis Financial Analysis of Walmart Recommendations Walmart store Inc. is not only the retail giant, but also is the largest grocery chain in the world. Walmart store Inc. was founded in 1962. Samuel Walton and his brother J.L. Walton open their first Walmart Discount City in Rogers, Arkansas (Walmart History, 2010). For Walmart store Inc., their common mission is: Save people money so they can live better (Walmart corporate, 2010). Compared with their main competitors such as Target and K mart, Walmarts 2009 sales were almost 50% more. Because of its giant size and buying power, Walmart can buy its products at very low prices, exchanging high purchase volumes for low cost then passing the savings onto its customers (Wikinvest Walmart, 2010). Walmart has 8,900 stores around the world in three different business segments of retail stores that including: Walmart stores, Sams Club and Walmart international. All of them offer different kinds of merchandises including electronic appliances, groceries, furniture, apparel and health beauty stuffs etc. For their business segment, they have over 54% of the companys stores are located in the United States, and the others international stores are mainly located in central and south America and China. The company mainly focuses on offering the lowest prices to attract its consumers. Walmart totally earned $408 billion revenue in 2010, increase 1% compare to 2009 (Wikinvest Walmart, 2010). In 2009, Walmart earned $255.7 billion in the domestic segment of the companys revenue. For Walmart stores segment are further categories into three different formats including: Supercenters, Discount stores and Neighborhood Stores. For the Sams club, it is the second largest membership-only retailer club ( Costco is the first largest membership-only retailer) in United States belong to Walmart Inc., their main customers mostly are offices, convenience stores, motels, restaurants and schools etc. (Wikinvest Walmart, 2010). For now, Walmart has total 3,121 international stores all over the world including in Mexico, Japan, Canada, China and countries in central and South America. However, recently Walmart begins to slow down their growth rate in the United State and turn their main focus onto its international stores to develop growth. For international stores locations altogether earned total $98.6 billion revenue in 2009, compared to the sales of 2008, is increased 9.1% (Wikinvest Walmart, 2010). Strategic History of the Industry The whole retail industry in the United States has over $4 trillion annual revenue. The main retail companies are including Walmart, Home Depot, Kroger, Costco, and Target. Some of the large companies dominate some retail sectors such as mass merchandisers and grocery stores, other sectors like auto dealers and convenience stores are fragmented. However, retail industry still has many small and specialty retailers are single-store operations (Hoover, 2011). The economy deeply affects the retail demand. In other words, retail demand depends on the economy. Many different kinds of economic factors such as job growth, recession, personal income, consumer confidence and interest rates can strongly affect consumer spending behavior. When during recessionary periods, the bad economy can affect the retail sales growth rate slow drastically or even sales revenue decline. While the retail spending grows rapidly when in the period of strong economy growth, for example consumers will spend more on grocery when they have more income. However, the rising interest rates will affect consumer purchase behavior and consumer ability to finance large amount of purchase such as purchasing cars (Hoover, 2011). Strategic History of Walmart Store Inc. In the early stage of strategic history for Walmart, they always unchanged their vision always low price for their customers. Until 1990s, Walmart announced that they planned to go global. They wanted to look for international markets for the reasons as following: First of all, Walmart has facing very strong competition in United States such as Target and K mart. These two firms had aggressive expanding their business and had started sharing Walmarts market share. Secondly, the market in the United States is already saturated; it was becoming difficult for the company to continue its growth rate. Thirdly, the US population is accounted for only 4% of the worlds population and if they want to expand their global market, China had the potential massive growth due to their huge population of over 1.3 billion people. The last reason is, globalization opened up new markets in China and created opportunities for discount stores such as Walmart (Walmarts Cost Leadership Strategy, 2004). On the other hand, Walmart is using the strategy that cooperates with local suppliers to purchase their products, even though the organizational culture is standardized with the home country. This strategy is not only use to the products purchasing, but also adapted to the local cultures and stores decoration and designed are also changed to meet local taste all around the world (Walmarts Cost Leadership Strategy, 2004). Organizational mission statement As we know, the mission statement for Walmart is every day low price. In order to insist their mission, Walmart implemented three approaches in the market. First, it increased the local purchasing in order to reduce the purchasing costs and also suit consumers needs in different places. Secondly, it maintained a good relationship with their suppliers, satisfied them by paying within 3-7 days during its initial years. Thirdly, it established distribution centers (DC) and computerized its management system to improve efficiency and reduce costs (ICFAI, 2005). Business Level Strategy For these several years, Walmart has been trying hard on expand its stores outside the United States. It through two different to expand their international business market: new store construction and acquisition. Acquisition strategy of supermarket chains had been a part of Walmarts entry and  store expansion strategy in Canada, Mexico, Brazil, Japan, China and Great Britain (The Walmart Puzzle, 2008). Over all, the Walmart strategies were including: multiple store segments, lower daily prices, lots of name-brand merchandise, reduce operating costs, emphasized customers satisfied service, wide selection products, disciplined expansion into new geographic markets, and using acquisition to enter foreign market (Walmart Store Inc., 2010). However, no matter Walmart are in which foreign country, their company vision always low prices is never changed. The companys low distribution costs and cost-efficient supply chain management are the big reasons why Walmart is so success and at the same time reduce the products prices. Walmart has get into distribution efficiency compare with their competitors because of its rural store locations. Current strategy for the major operations/functions of the company Current strategies for Walmart are including low costs, high volume, increase customer satisfaction and expansion strategy. Walmart creates name recognition and customer satisfaction, and combined the retailer with the reputation of offering the best prices. They also expand their new business segments to different sectors such as pharmacies, automotive repair, and grocery sales to increase their sales revenue. Expansion strategy: The company realized that building a new store will allow for increase market share value. After their success in the rural areas, Walmart moved to urban areas and then moved to surrounding areas. The expansion strategy made Walmart the number one retail store in the United States. As Walmart continue its expansion domestically, the firm decided to go international. Furthermore, Walmart realized that acquiring an existing retail firm is necessary for expand domestic and international markets. Therefore, Walmart by acquire retail store which enable to expand locally and internationally. Always low prices make customers live better strategy is believed the strongest strategy used by Walmart. The firm developed the idea of dealing directly with the manufacturer and with the power control by Walmart will enable it to get the best deal from the manufacturers and suppliers. Organizational structure, culture, and control systems Saving people money to help them live better was the mission for Walmart. Hence, Walmart negotiates different suppliers and understanding their cost structure in order to reduce the price. Walmart has to be certain that the manufacturers were doing their best to cut down costs. Also, Walmart believed in establishing a long-term relationship with their suppliers. Walmart had 129 distribution centers located at different locations all over the US. Over 80,000 items were stocked in these centers. Walmarts own warehouses directly supplied 85 percent of the inventory, as compared to 50-65 % for competitors. Shipping costs for Walmart is about 3 % which is lower than its competitors, 5%. The distribution centers ensured a steady and consistent flow of products to support the supply function (Walmarts Cost Leadership Strategy, 2004). Walmarts logistics infrastructure was its fast and successful transportation system. The distribution centers were serviced by more than 3,500 company owned trucks. To make its distribution process more efficient, Walmart also uses a logistics technique called cross-docking. In this system, the finished goods were directly picked up from the manufacturing plant from suppliers, and then directly supplied to the customers. The system reduced the handling and storage of finished goods, eliminating the role of the distribution centers and stores (Walmarts Cost Leadership Strategy, 2004). SWOT Analysis for Walmart Store Inc. (S)trengths Reputation Brand Name: Walmart is a powerful brand and pioneer in the retail industry with the wide spread network of stores. It has a reputation for low price, convenience and a wide range of products all in one store for customers. Walmart has captured about 10% of the retail market in the U.S. and continues to expand. Walmart stores continue to open all over the country making Walmart a household name. Walmart has also been widely acknowledged for its social responsibility actions. The company has donated to a variety of charitable organizations and has been accredited for bringing jobs and wealth to less developed communities. Offer Low Prices: Walmart uses its enormous size and buying power to pressure its suppliers into extremely low prices, offering orders of high volumes of merchandise in exchange for low prices. The good thing about Walmart is that its shifts the low cost advantage to customers and available the products at lower prices. It has loyal customer base because it meets the expectation of customer by always delivering the goods at lower prices at compare to its competitors. Expand Global Market: Walmart has aggressively expands its international market over the past few years and has experienced global expansion. For example its purchase of the United Kingdom based retailer ASDA. Technology: Technology is strength to Walmart with its inventory control system that was recognized as the most sophisticated in retailing. The technology linked all the stores to the headquarters and the companys distribution centers. It also enables the warehouse of which the goods are ordered, and direct the flow of goods to the store and proper shelves. Supply chain and logistics management: Supply chain and logistics management are one of the strengths of Walmart. This allows Walmart to utilize the Just- in-time inventory concept and avoid the pilling up inventory to save the extra cost for maintaining inventories in the warehouses. Human Resource: Walmart always keen to provide training to their employees to improve the customer service level. The firm hire locally, provides training programs for its employees. Walmart also gets its employees involve and encourage them to make use of words like: we, us, and ours. It also provides stock ownership and profit sharing with great contribution from the H. R of the firm. Walmart was named one of the best 100 firms to work for. Cross-docking inventory system: Using the cross-dock technique, Walmart was able to effectively leverage their logistical volume into a core strategic competency. Walmart operates an extensive satellite network of distribution centers serviced by company owned trucks. Its satellite network sends point of sale (POS) data directly to 4,000 vendors. Each register is directly connected to a satellite system sending sales information to Walmarts headquarters and distribution centers. (W)eaknesses Employee turnover: Walmart has high employee turnover which costs more money and time for company to train the new employee. Bad publicity: Walmart is currently facing a gender discrimination lawsuit. Their female employees accuses that they were discriminated against in matters regarding pay and promotions. And also, Their female managers were accounted for the minority group in the company. Lock of flexibility: Walmart sell very wide range kinds of products for example like clothes, food, pharmacy or stationary which lack of flexibility compare with other more focused competitors. Other competitors may have the ability to make changes and improve on a certain product lines when the needs of their customers change. Walmart, however, may have too much merchandise and not be able to focus in on sectors that need to be improved. Some products have poor quality: Although Walmart provides low price of products, however, customers sometimes complain about the poor quality of few products. Facing difficulty in International market: It is hard for Walmart to expand their business out of US to totally different countries all around the world. Moreover, Walmart has to facing different culture and customer behavior in different countries, for example Walmart facing difficulty to expand the market in China. (O)pportunities Customers: Because Walmart provides low price to their customers, so they are able to attract more customers. Furthermore, customers basically are able to purchasing everything in one store that satisfied their needs. Walmart 24 hours stores also satisfied their customers. Diversified store types: Walmarts different store types and new locations provide more opportunities to exploit new market. Stores diversified from local, small-based sites to large super centers. International Expansion: No doubt that continued expand the international market is a huge opportunity for Walmart. Walmarts oversea stores have experienced significant growth. There are actually tremendous opportunities for future growth in developing countries and Asian markets than in the United States such as China and India. Creating strategic alliances and licensing agreements with other global retailers are ways to move into different countries. (T)hreats Competition: Walmart faces different strong competitions locally and internationally. Walmart main competitors are including Kmart, Target, Carrefour and Costco wholesale. In 2010, the Net Profit Margin for Walmart is 3.59%, Target 4.22%, Costco wholesale 1.69%, Carrefour 0.38%, respectively (Hoovers, 2010). Target is Walmarts direct competitor in the US, offering a range of general merchandise in a similar store format (Wikinvest, 2010). Economy Recession: The revenue for Walmart is affected by economy recession. Good economy is an opportunity for great business, because customers will have more money to spend. If the economy is great, there will be more jobs and people will shop more. However, if the economy is bad, there will be fewer jobs and people will shop less. Also, with the high price of gasoline and its effect on the economy, Walmart will certainly be affected the most. Strategy imitation: Walmart strengthens its competitive advantage on low-cost products. Other competitors may imitate their low-cost strategy to take over their market shares. Low Brand Loyalty: In the retail industry, customers would like to choose the product with the lowest price. In other words, customers do not care about the brand or which retail stores, if Costco has the exactly same chips that sell cheaper than in the Walmart, then customers will choose to buy the chips in the Costco not Walmart. TOWS MATRIX STRENGTHS WEAKNESSES Reputation Brand Name Bad publicity Offer Low Prices Lock of flexibility Expand Global Market Some products have poor quality Technology Facing difficulty in International market Supply chain and logistics management Employee turnover Human Resource Cross-docking inventory system OPPORTUNITIES OPPORTUNITIES-STRENGTHS OPPORTUNITIES-WEAKNESSES Customers Build on its already efficient distribution system to further expand in the U.S and globally. Walmart should be awareness and strict to control of the quality of the product in order to keep their customers basis. Diversified Store Types Expand diversified store types to International market in order to increase profit in International market. Set higher employment standards through enhanced training to keep their employees have best performance. International Expansion Duplicated the successful delivery logistic management and the distribution centers into International market. Continue to build on cost efficient pricing and production due to expansion. Go into new markets and buy out their local retailers to gain market share. THREATS THREATS-STRENGTHS THREATS-WEAKNESSES Competition Buy raw materials or products from local suppliers to hold a better political status within the local community further to compete with their competitors. Human resource department should set a benefits long-term promotion program or standard and training program for their employees in order to decrease the employee turnover. Economy Recession Create their own brand of products and increase the quality of products in order to establish customers loyalty. Establish joint venture partnerships or long-term relationship with local retail companies to get the advantages in the International segment. Strategy imitation Develop strong RD and technology to enhance the competitive advantage and avoid imitation from other competitors. Low Brand Loyalty Five Forces Analysis for Walmart Store Inc. Threat of entrances Low The threat of new entrance in the grocery and discount retailer industry is very low. New entrants have to face with the strong low-price competition among exist giant retail companies like Walmart, Costco and Target. New entrants need to invest large amount of capitals to establish their brand recognition, service, and variety of product offerings that Walmart, Target, and others competitors continue to improve on each day. In addition, existing companies can drop prices lower in order to force a new competitor out of the market. Therefore, the threat of entrances is low. Power of buyer-High Customers have many choosing opportunities and consider about products very details. They want the product now and they want it with the best service, best quality and reasonable price. Customers also enjoy increasing choice of products and choose one product that has the best quality and better price. For example, if customers find out Target sells an exactly product that has better quality and price than Walmart, and then they will choose to buy it in Target instead of Walmart. Power of Suppliers   Low The bargaining power of suppliers is very low. Walmart is very famous on giving pressure to their suppliers to cut their price lower and lower in order to offer the lowest price to their customers. On the other hand, become the supplier of Walmart is a very fierce competition. In 2004, about 10,000 new suppliers applied to become Walmart vendors. However, only about 200, or 2%, were ultimately accepted by Walmart (Gwendolyn Bounds, The Wall Street Journal). Therefore, the bargaining power of suppliers is low. Rivalry High The competition in the US grocery and discount retailer industry is very high. The main competitors for Walmart in the local market are Kmart and Target. These companies also have to face competition from wholesalers such as BJs, Costco and even the international market such as Carrefour. Walmart has adopted a cost leadership generic strategy. In the past, most companies have not been able to match Walmarts strategy everyday low prices. However, Walmarts barrier to entry (economies of scale) and strength (supply-chain management) can be easily imitated with sufficient resources. Therefore, retailers are in a fierce competition that see who can offer their customers the lowest price. Threat of substitute Low The threat of substitutes in this industry is low because only few companies have ability to offer such a variety of products available instantly and also low prices. One possible substitute is online shopping; however, customers usually do the online shopping for clothes or other stuffs but not for food or grocery shopping. Therefore, the threat of substitute is low. Key Strategic Issues Issue #1: Open too many new stores close to existing stores lead to new stores taking over the market shares from existing stores. Status Quo Wal- Mart depends on opens many new stores and expands into new market to increase the long-term sales and income growth. However, because of Walmarts large size of expansion, new stores are effects the sales on existing stores. For example, Walmart builds a store relatively close to an already existing store, the new store might take away customers from the old store thus decrease the sales in existing stores (Walmart, 2010). Evolutionary Change (Incremental Improvement) In order to solve this problem, Walmart expands their business segment into international market instead of domestic market. For example, Walmart opened 5 times number of stores in the international market in 2010 compared to domestic stores; most of stores are in Mexico, China, and Central America (Walmart, 2010). Revolutionary Change (Huge/Drastic Change) Walmart is also aggressively to open business segments in India if the country opens up the sector to foreign direct investment. India has retail market more than 1 billion; no doubt India is a huge opportunity for Walmart. However, retailers that carry multiple brands (like Walmart) are restricted to wholesale outlets in India. After Indias policy change, Walmart is allowed to expand superstores and generate revenue in India (Walmart, 2010). Specific tactics to implement the strategy Walmart needs to establish long-term relationship or joint venture with local retail company to get into the market in India. Although in 2006, Walmart announced that it had tied up with Bharti Enterprises Ltd. (Bharti) to get into the Indian retail sector. Bharti was a diversified company, and one of the biggest mobile telephone service providers in India (Walmart and the Indian Retail Sector, 2007). However, because of the government policy, the small retailers groups and the Left parties against allowing the company into India are all the barriers that Walmart has to face it. Issue #2: International competitors Status Quo In order to expand and improve the sales revenue for the economy recession especially in the domestic market, Walmart has been aggressively expand its business segment into international market. However, the local big retailers or small retailers groups are against Walmart to get into their market to take over the market shares because of its low price strategy (Walmart, 2010). Evolutionary Change (Incremental Improvement) Improve its supply chain, logistic and technology segment to lower its delivery and operation costs in order to compete with local big retailers such as Britains Tesco, Frances Carrefour, and Germanys Metro (Walmart, 2010). On the other hand, retail business segment is hard to create products differentiation, because commodity products are all the same for customers. The only way that gains the market shares for retail stores is not only low price but also quality of products. Therefore, Walmart should awareness of its quality of products to attract more customers even in the international market. Revolutionary Change (Huge/Drastic Change) Walmart should acquire and purchase the local retail companies in order to get into the international market. On the other hand, establish long-term relationship with local suppliers to have the win-win situation for their cooperation. Specific tactics to implement the strategy In the beginning of year 1, 2 and 3, Walmart should first focus on improving its supply chain, logistic and technology improvement in order to compete with local big retailers on its lower operation, delivery costs and high quality of products. For the long-term tactics, Walmart should deeply penetrate into the local market, understand different cultures and customers behaviors and then cooperate with local suppliers to establish long-term partnership. Personal assessment SWOT Analysis of myself in relation to the organization (What can I offer to the organization?). (S)trengths: International expansion (China): Walmart is extremely aggressively penetrated into the market in China. Also, no doubt that China has 1.3 billion populations which accounted for the most majority population in the world, creates a huge business opportunity for Walmart. Therefore, Walmart needs a manager who can speak fluently Mandarin and English, and really understand about Chinese culture and Chinese customers behavior. Hence, I can offer Walmart my knowledge to develop more opportunity in Chinas market in order to maximize the profits. (W)eaknesses: Lack of working experience: Even though I can speak fluently Mandarin and understand the Chinese culture and customers behavior; however, I still lack of working experiences. I do have some part time working experience such as working in starbucks, but do not have full time working experiences. (O)pportunities: Because of my professional knowledge (bachelor and master degree are both business management) are expertise on this field which can offer Walmart a professional employees or manager. Moreover, my family also has business in China, Hangchow, which makes me has understanding and interested about China. I can provide Walmart establish partnership with local suppliers and establish long-term relationship with them to compete with local retails competitors. (T)hreats: Many applicants around the world: There is still having many talented applicants around the world apply to get into this company. Some of the applicants have high education degree and business knowledge and also have ability to speak many different kinds of languages. Therefore, I am in extremely fierce competition. Not every business segment in Walmart is my expertise: I have weakened and lower advantages compared to local American because of the speaking and cultural differences. Furthermore, the company does business in many different retail formats, including supercenters, food and drugs, general merchandise stores, cash and carry stores, membership warehouse clubs, apparel stores, soft discount stores and restaurants. However, not every business segment in Walmart is in my field of expertise. Financial Analysis 2010 Annual Sales (Figure2-1) (Source: Hoovers, 2011, http://0subscriber.hoovers.com.leopac.ulv.edu/H/company360/competitiveLandscape.html?companyId=11600000000000) As you can see in Figure 2-1, this is 2010 annual sales for 4 main retail stores in the United States. They are including Walmart, Target, Costco Wholesale and Carrefour. Walmart has almost $400 billion sales in 2010. Compared to other competitors, annual sales for Walmart was much higher than other companies. Carrefour annual sale in 2010 was around $100 billion. Annual sales for Target and Costco were just around $50 billion in 2010. 2010 Net Profit Margin (Figure2-2) (Source: Hoovers, 2011, http://0subscriber.hoovers.com.leopac.ulv.edu/H/company360/competitiveLandscape.html?companyId=11600000000000) In Figure 2-2, net profit margin in 2010 for Walmart was 2.98%. Target was higher than Walmart which had 3.69% net profit margin in 2010. Other two competitors, Costco and Carrefour were both under 1.84% in net profit margin in 2010. Figure 2-3 (Source: Hoovers, 2011, http://0subscriber.hoovers.com.leopac.ulv.edu/H/company360/competitiveLandscape.html?companyId=11600000000000) The Return on Asset ratio is useful in measuring how efficiently a company uses its assets to generate profit. By definition, ROA is calculated by dividing the Net Income by the total asset of a company. Refer to Figure 2-3, ROA for Walmart from 2006 to 2010 are much higher than its competitors. Walmarts ROA were around 9% to 10% each year, compared to its competitors which were all much lower than Walmart. This basically means that Walmart utilizes its assets well enough to generate profit in comparison with their competitors. However, ROA in 2007 for Target is higher than Walmart, Target 9.29%, Walmart 9.05%. Targets major competitive advantage over Walmart lies in its customer base: the average household income for Target customers is about $50,000 a year, whereas the average yearly income for a Walmart customer is only $35,000 Figure 2-4 (Source: Hoovers, 2011, http://0subscriber.hoovers.com.leopac.ulv.edu/H/company360/competitiveLandscape.html?companyId=11600000000000) The return on Stockholders Equity (ROE) ratio measures the percentage of profit earned on stockholders investment in the company. In other words, return on equity  measures a corporations profitability  by revealing how much  profit a company generates  with the money shareholders have invested.  Ãƒâ€šÃ‚   In Figure 2-4, ROE for Walmart were around 20% from year 2006 to 2010, compared to other competitors which are higher than others. Figure 2-5 (Source: Hoovers, 2011, http://0subscriber.hoovers.com.leopac.ulv.edu/H/company360/competitiveLandscape.html?companyId=11600000000000) Net profit Margin is an indication of how effective a company at cost control

New Classics of the Horror Film Genre Essay -- Pleasures of Horror Fil

Dracula. Frankenstein. Godzilla. These monsters no longer strike fear into the hearts of viewers as they once did. Formerly the villains of the classic "monster movie," these relics, who now represent all that is archaic in horror film history. The monster movie of the past makes way for the thriller or slasher movie of the present, while the monster villain gives its role to the deranged, psychotic serial killer. Friday the 13th series, Nightmare on Elm Street, Copycat and Seven have become the new classics in the genre of the horror film. With films like The People Under the Stairs, Nightmare on Elm Street, and New Nightmare, Wes Craven has proven himself to be a master of the creation of modern horror films. With recent masterpiece Scream, Craven shows his audience that he is not restricted by the typical conventions of the horror film. In most of these films, the background is set up before the killer does any actual slashing. However in Scream, Drew Barrymore's character is tormented by the killer from the film's very beginning and both she and her boyfriend are dead less than ten minutes after the opening credits. Craven manages to make Scream a film of less "fluff" and more substance than most thrillers. Recurring themes in the film, such as the lack of teens' seriousness, the callous nature of today's younger generation, the crossover and confusion between reality and movies, and the negative representation of television media not only add to the film's entertainment value, but also often portray a fairly accurate picture of twentieth century America. Despite all the film's blood and gore, Craven creates a comedic tone so successfully that at times the audience wonders whether Scream might be a comedy after all. Even though the safety of their small town has been shattered by a deranged serial killer, the characters do not seem to take the situation very seriously. The main characters are eating lunch at school the day after the first murders and, as might be expected, the killings make up the topic of their conversation. At one point, the character Randy turns to Tatem, and in a convincing imitation of Billy Crystal, he asks her, "Did they really find her liver in the mailbox? Because I heard they found her liver in the mailbox." Tatem and Sidney, the other female present and the movie's main character, cringe at this tasteless remark. Tatem'... ...ssuring that we remain productive m mbers of society (King 500). So, perhaps if you are in need of this type of therapy, or in search of an offbeat study in American popular culture, all that you need is a good horror film. Rent Scream or go to a movie theater to see the sequel. You will probably be surprised by what you see, and you might even be impressed. Works Cited Craven, Wes. Interview. Fresh Air. National Public Radio. KQED, San Francisco. 16 February 1998. King, Stephen. Ã £Why We Crave Horror Movies.? Common Culture. Petracca, Michael and Madeleine Sorapure, eds. Upper Saddle River: Prentice Hall, 1995. Pinedo, Isabel Cristina. Recreational Terror: Women and the Pleasures of Horror Film Viewing. Albany: State University of New York Press, 1997. Works Consulted Grant, Barry Keith, editor. Planks of Reason: Essays on the Horror Film. London: The Scarecrow Press, Inc., 1984. Newman, Kim. Nightmare Movies. New York: Harmony Books, 1988. Riptov, S.A. Kidnapped Corpus Whasamat Univ. Press, 1984 Scream. Dir. Wes Craven. With David Arquette, Neve Campbell, Courteney Cox, Skeet Ulrich, and Drew Barrymore. Dimension Films, 1997.

Trainning as a Recruitment Tool :: Free Essay Writer

Trainning as a Recruitment Tool The title of the article is â€Å"Training as a recruitment tool†. It begins by addressing the problem which is that although we are living in a time of good conditions like low unemployment rate, many employers fell so bad. In the last decade employers had a deep and wide pool of new college graduates and recently laid-off, trained workers from which to choose. The workforce was also faithful and had no interest in leaving the security of a paid job to join the unemployed. The article suggests that the cause of this frustration is recruitment and retention problems. In an attempt to solve this problem, many organizations are offering nontraditional benefits, which include training and development opportunities. Training is considered the number 1 attraction and retention tool followed by flexible work schedules and competitive salaries. The author points out that we shouldn’t just believe that more training will improve conditions. He bases his argument on a study that found that high performing organizations provided each employee with an average of only 30 hours of training, compared to the average of 45 hours of training for each employee in other organizations. So as a conclusion, if more training hours do not guarantee improved performance, then there must be other factors that needs fixing. The difference between high performing companies and all other organizations is the degree to which training is integrated into company culture and strategy. Despite less time was given for formal training, the employees were benefiting more. This is due to the environment of continuous learning in which nontraditional training opportunities were offered and encouraged. Another important factor is linking strategy and training. Training is considered an investment for the organization because it is potentially a company’s most critical asset. The author then goes on by providing a list of tools to help managers and employees think about contribution and development in a new way. The first tool is the human capital value chain. This model consists of the opportunities offered to employees in the work environment enabling them to engage in the overall business strategy. The second tool suggested is the value creation continuum. This model helps employers define employee contribution to the organization, independent of job title or position, and define growth through the development of competencies. As employees progress, they begin to contribute more by growing intellectual capacity and leveraging their work and the work of others.

Feminist Theory

Feminism refers to political, cultural, and economic movements aimed at establishing greater rights, legal protection for women, and or women's liberation. It includes some of the sociological theories and philosophies concerned with issues of gender difference. Nancy Cott defines feminism as the belief in the importance of gender equality, invalidating the idea of gender hierarchy as a socially constructed concept. Feminism has earned itself a bad reputation, but it never undermined gender differences that exist between males and females. A man can never be as good a mother as a female can.Similarly, a woman can never be as good a father as a male can. While accepting these anatomical and physiological differences between the two genders, feminism seeks for both genders to be equally respected. They are both human and as a species, humans cannot progress without either one of them. Maggie Humm and Rebecca Walker divide the history of feminism into three waves. The first wave transpi red in the nineteenth and early twentieth century’s, the second occurred in the 1960s and 1970s, and the third extends from the 1990s to the present.In each wave of the movement, though men have taken part in significant responses to feminism, the relationship between men and feminism has been complex. Historically, a number of men have engaged with feminism. Philosopher Jeremy Bentham demanded equal rights for women in the eighteenth century. In 1866, philosopher John Stuart Mill presented a women's petition to the British Parliament and supported an amendment to the 1867 Reform Bill.An extension of feminism into theoretical or philosophical fields such as anthropology, sociology, economics, women's studies, literary criticism, art history, and psychoanalysis is called feminist theory. Feminist theory aims to understand gender inequality and focuses on gender politics, power relations, and sexuality. While providing a critique of these social and political relations, much of feminist theory focuses on the promotion of women's rights and interests. Themes explored in feminist theory include discrimination, stereotyping, objectification (especially sexual objectification), oppression, and patriarchy.Today, feminist theory has manifested in a variety of disciplines such as feminist geography, feminist history, feminist theology, and feminist literary criticism and has changed traditional perspectives on a wide range of areas in human life, from culture to law. Feminist activists have campaigned for women's legal rights such as rights of contract, property rights, and voting rights while also promoting women's rights to bodily integrity and autonomy, abortion rights, and reproductive rights.They have struggled to protect women and girls from domestic violence, sexual harassment, and rape. On economic matters, feminists have advocated for workplace rights, including maternity leave and equal pay, and against other forms of gender-specific discrimination aga inst women. During much of its history, feminist movements and theories were led predominantly by middle-class white women from Western Europe and North America. However, at least since Sojourner Truth's 1851 speech to American feminists, women of other races have proposed alternative feminisms.This trend accelerated in the 1960s with the civil rights movement in the United States and the collapse of European colonialism in Africa, the Caribbean, parts of Latin America, and Southeast Asia. Since that time, women in former European colonies and the Third World have proposed postcolonial and Third World feminisms. Postcolonial feminists argue that oppression relating to the colonial experience, particularly racial, class, and ethnic oppression, has marginalized women in postcolonial societies.They challenge the assumption that gender oppression is the primary force of patriarchy. They object to portrayals of women of non-Western societies as passive and voiceless victims and the portr ayal of Western women as modern, educated, and empowered. Today, they struggle to fight gender oppression within their own cultural models of society rather than through those imposed by the Western colonizers. They, thus, react against both universalizing tendencies in Western feminist thought and a lack of attention to gender issues in mainstream postcolonial thought.Some postcolonial feminists, such as Chandra Talpade Mohanty and Black feminists, such as Angela Davis and Alice Walker, are critical of Western feminism for being ethnocentric. Chandra Talpade Mohanty criticizes Western feminism on the ground that it does not take into account the unique experiences of women from third-world countries or the existence of feminisms indigenous to third-world countries. This discourse is strongly related to African feminism and is also associated with concepts such as black feminism, womanism, Africana womanism, motherism, Stiwanism, negofeminism, chicana feminism, and femalism.Pro-femi nism is the support of feminism without implying that the supporter is a member of the feminist movement. The term is most often used in reference to men who are actively supportive of feminism and of their efforts to bring about gender equality. The activities of pro- feminist men's groups include anti-violence work with boys and young men in schools, offering sexual harassment workshops in workplaces, running community education campaigns, and counseling male perpetrators of violence.Pro-feminist men also are involved in men's health, activism against pornography including anti-pornography legislation, men's studies, and the development of gender equity curricula in schools. This work is sometimes in collaboration with feminists and women's services, such as domestic violence and rape crisis centers. Some activists of both genders refer to all pro-feminist men as ‘pro-feminists' and not as ‘feminists'. There have been positive and negative reactions and responses to fe minism, depending on the individual man and the social context of the time.These responses have varied from pro-feminism to masculism to anti-feminism. In the twenty-first century, new reactions to feminist ideologies have emerged, including a generation of male scholars involved in gender studies and men's rights activists who promote male equality including equal treatment in family, divorce, and anti ­discrimination law. Today, academics like Michael Flood, Michael Messner, and Michael Kimmel are involved with men's studies and pro- feminism.The United Nations Human Development Report 2004 estimated that, when both paid employment and unpaid household tasks are accounted for, on average women work more than men. In rural areas of selected developing countries women performed an average of 20 per cent more work than men, or an additional 102 minutes per day. In the OECD countries surveyed, on average women performed 5 per cent more work than men, or 20 minutes per day. On 3 Sept ember 1981. The UN Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW), described as an international bill of rights for women, came into force.While Iran, Sudan, Somalia, Qatar, Nauru, Palau, and Tonga have not ratified CEDAW, several countries have ratified the Convention subject to certain declarations, reservations, and objections. A number of feminist writers maintain that identifying as a feminist is the strongest stand men can take in the struggle against sexism. They have argued that men should be allowed, or even be encouraged, to participate in the feminist movement. Other female feminists counter- argue that men cannot be feminists simply because they are not women.They maintain that men are granted inherent privileges that prevent them from identifying with feminist struggles, thus making it impossible for them to identify with feminists. Irrespective of what the feminist writers maintain, the feminist movement has effected change in Wester n society, including women's suffrage, greater access to education, more nearly equitable pay with men, the right to initiate divorce proceedings and ‘no fault' divorce, and the right of women to make individual decisions regarding pregnancy (including access to contraceptives and abortion), as well as the right to own property.

Analysis and Valuation of Privately Held Companies Essay

10.1 What is the capitalization rate and how does it relate to the discount rate? Answer: The terms discount rate and capitalization rate are often used interchangeably. Whenever the growth rate of a firm’s cash flows is projected to vary over time, the term discount rate generally refers to the factor used to convert the projected cash flows to present values. In contrast, if the cash flows of the firm are not expected to grow or are expected to grow at a constant rate indefinitely, the discount rate employed by practitioners is often referred as the capitalization rate. 10.2 What are the common ways of estimating the capitalization rate? Answer: Capitalization rates may be estimated by using the Capital Asset Pricing Model, cost of capital, price-to-earnings ratios, accounting based returns such as the return on equity, and the build-up method. 10.3 What is the marketability discount and what are common ways of estimating this discount? Answer: The risk associated with an illiquid market for the specific stock is often referred to as the marketability or liquidity discount. Liquidity is the ease with which an investor can sell their stock without a serious loss of value. An investor in a small company may find it difficult to sell quickly their shares because of limited interest in the company. Consequently, the investor may find it necessary to sell their shares at a significant discount from what they paid for the shares. 10.4 Give examples of private company costs that might be understated and explain why. Answer: Examples may include employee training and the cost of complying with government regulation such as OSHA and the EPA. Small, privately owned firms tend to under-spend in these areas since they do not contribute directly to current profitability. 10.5 How can an analyst determine if the target firm’s costs and revenues are understated or overstated? Answer: The analyst may determine that revenues have been overstated by comparing the accounting practices to GAAP guidelines and to other comparable firms. It may be determined that costs are understated by comparing the firm’s accounting practices with GAAP standards and by comparing the firm’s common size financial statements with those of similar firms. 10.6 Why might shell corporations have value? Answer: Merging with an existing corporate shell of a formerly publicly traded company may be a reasonable alternative for a firm wanting to go public that is unable to provide the 2 years of audited financial statements required by the SEC or unwilling to incur the costs of going public through an initial public offering. Thus, merging with a shell corporation may represent an effective alternative to an initial public offering for a small firm. Shell corporations may also be attractive for investors interested in capitalizing on the intangible value associated with the existing corporate shell. This could include name recognition; licenses, patents, and other forms of intellectual properties; and underutilized assets such as warehouse space and fully depreciated equipment with some economic life remaining. 10.7 Why might succession planning be more challenging for family owned firms? Answer: Succession planning is a critical activity in any firm. However, the challenge often is greater in family firms which wish to keep top management  positions in the family. This restriction limits the total pool of management talent available to the family owned firm, as some family members may have no interest in the firm and others simply do not have the credentials to step into a management role. 10.8 What are some of the reasons a family-owned or privately-owned business may want to go public? What are some of the reasons that discourage such firms from going public? Answer: Private or family owned firms are more likely to go public when valuations are high or are increasing. Companies also are inclined to go public when they anticipate an inability to finance future investment opportunities or the outlook for the future profitability is unclear. In contrast, private firms are less likely to go public because of the increasing reporting requirements of Sarbanes-Oxley and the SEC, as well as concern about interference from public shareholders. Private firms also are less likely to go public when the special privileges that accrue to the controlling shareholders exceed the anticipated benefits from going public. 10.9 Why are family owned firms often attractive to private equity investors? Answer: Family-owned firms often encounter succession problems. The founder wants to retire but either lacks confidence in existing family members as successors or cannot find a family member with the right credentials interested in taking control. Consequently, selling out to a private equity firm may be an attractive alternative. Such firms are interested in not only providing financing but also in providing board and management experience and expertise. They intend to invest for the long-term enabling the founder to cash out with some assurance the firm will continue to prosper. 10.10 Rank from the highest to the lowest the liquidity discount you would apply if you as a business appraiser had been asked to value the following businesses: a) a local, profitable hardware store, b) a money losing laundry, c) a large privately owned but marginally  profitable firm with significant excess cash balances and other liquid short-term investments, and d) a pool cleaning service whose primary tangible assets consist of a 2-year old truck and miscellaneous equipment. Explain your ranking. Answer: In descending order of magnitude, the liquidity discounts associated with these businesses would be as follows: d) The business is small, with few liquid assets of significant value; b) the business is small and unprofitable but does have some equipment that can be liquidated; a) the business is financially healthy; c) the business is large with substantial liquid assets. Selected Practice Problems and Answers 10.14 Based on its growth prospects, a private investor values a local bakery at $750,000. She believes that cost savings having a present value of $50,000 can be achieved by changing staffing levels and store hours. Based on recent empirical studies, she believes the appropriate liquidity discount is 20 percent. A recent transaction in the same city required the buyer to pay a 5 percent premium to the asking price to gain a controlling interest in a similar business. What is the most she should be willing to pay for a 50.1 percent stake in the bakery? Answer: The investor should not offer more than $336,672. Maximum Offer Price (50.1%) = ($750,000+$50,000) x (1-.2)(1+.05) x .501 = $336,672 10.15 You have been asked by an investor to value a restaurant. Last year, the restaurant earned pretax operating income of $300,000. Income has grown 4% annually during the last five years, and it is expected to continue growing at that rate into the foreseeable future. The annual change in working capital is $20,000, and capital spending for maintenance exceeded depreciation in the prior year by $15,000. Both working capital and the  excess of capital spending over depreciation are projected to grow at the same rate as operating income. By introducing modern management methods, you believe the pretax operating income growth rate can be increased to 6% beyond the second year and sustained at that rate into the foreseeable future. The ten-year Treasury bond rate is 5%, the equity risk premium is 5.5%, and the marginal federal, state, and local tax rate is 40%. The beta and debt-to-equity ratio for publicly traded firms in the restaurant industry are 2 and 1.5, respectively. The business’s target debt-to-equity ratio is 1, and its pretax cost of borrowing, based on its recent borrowing activities, is 7%. The business-specific risk premium for firms of this size is estimated to be 6%. The liquidity risk premium is believed to be 15%, relatively low for firms of this type due to the excellent reputation of the restaurant. Since the current chef and the staff are expected to remain after the business is sold, the quality of the restaurant is expected to be maintained. The investor is willing to pay a 10% premium to reflect the value of control. a. What is free cash flow to the firm in year 1? Free cash flow to the firm in year 1 = $300,000 x 1.04 x (1 – .4) – $20,000 x 1.04 – $15,000 x 1.04 = $187,200 – $20,800 – $15,600 = $150,800 b. What is free cash flow to the firm in year 2? Free cash flow to the firm in year 2 = ($300,000 x 1.042) x (1-.4) – $20,000 x 1.042 – $15,000 x 1.042 = $194,688 – $21,632 – $16,224 = $156,832 c. What is the firm’s cost of equity? Industry’s unleveraged beta = 2 / (1 + .6 x 1.5) = 1.05 Restaurant’s leveraged beta = 1.05 (1 + .6 x 1.0) = 1.68 Cost of Equity = .05 + 1.68 (.055) + .06 = .2024 d. What is the firm’s after-tax cost of debt? After-tax cost of debt = .07 x (1-.4) = .042 e. What is the firm’s target debt-to-total capital ratio? Restaurant’s target debt-to-total capital ratio = target D/E / (1 + target D/E) = 1 / 2 = .5 f. What is the weighted average cost of capital? Weighted average cost of capital = .5 x .2024 + .5 x .042 = .1012 + .0210 = .1222 g. What is the business worth? PV = $150,800 + $156,832 + ($156,832 x 1.06)/(.1222 – .06) = (1.1222) (1.1222)2 (1.1222)2 = $134,379 + $124,536 + $2,122,313 = $2,381,228 (Note: The first two terms represent the PV of the firm’s operating cash flows before the application of modern management methods is fully implemented; the third term is the terminal value and reflects the anticipated sustained improvement in cash flows when the benefits of the new management techniques are fully realized.) PV (after the liquidity discount & control premium) = $2,381,228 x (1 – .15) x (1 + .10) = $2,226,448