Business & Society case Study Essay Example | Topics and Well Written Essays - 500 words

Business & Society case Study - Essay Example Market stakeholders aid Disney Corporation in delivering its services to the community, notably the provision of job opportunities to the surrounding communities, though commuting from the less expensive surrounding community since the area is considered to being a business location and not for settlement. The first key market stakeholders are the creditors who play an important role in the day to day running of the business in most corporations as they provide the unavailable funds that companies and businesses require to invest in as the aim to boosts its business activities (James E. Post 6). Disneyland is a business location in which their major business is the tourist and resort centre which is a booming industry. The creditors of the companies involved in the tourism and resort business are the major stakeholders because they have lent their money expecting the returns of capital principal as well as the interest (James E. Post 15). The second key stakeholder in this case study are the employees who contribute the relevant knowledge and experience as the workforce to the company in which, in return, they get wages benefits, salaries and the chance for personal realization and satisfaction. The third suppliers who are the holding key backbone on the going concern of the tourist and resort business in Disneyland, the suppliers supply services, energy, raw materials, other various inputs in return for payments. The final non-market stakeholders are the wholesalers, distributors and the retailers who are the main chain of the distribution in the whole process thus aiding its movement to the final consumers (Post et al. 25). In this case, the non-market stakeholders are the surrounding society, the general public, media, non-governmental organizations and the business support groups. All of these non-market stakeholders are generally not affected by the economic exchange of the company. It is important to note that the decisions of

Effects of Raising Interest Rates on Inflation

Effects of Raising Interest Rates on Inflation What causes inflation? How is inflation bad for the economy? How can raising interest rate lower inflation? (1000) Introduction Inflation is defined as continuing rise in the general level of prices, such that it costs more to purchase a typical bundle of goods and services that is produced or consumed or both. In simple words, inflation leads to a decline in the real value of money. Sloman (2006) explains that the rate of inflation measures the annual percentage increase in prices. Consumer Price Index (CPI), which is published every month, is used to measure the rate of change in consumer prices. Undoubtedly, inflation is an undesirable condition for an economy. Prior to discussing the consequences of inflation in the economy, it is important to understand the causes of inflation. Inflation may be caused by demand side factors or supply side factors. As it can be seen from the above diagram in the case of demand pull inflation the AD curve shifts to the right because of an increase in demand which leads to an increase in output. Thus it is associated with a booming economy. The suppliers will only be willing to supply more at a higher price therefore increase the level of price. Whilst in the case of cost push inflation, there is an increase in price as a result in an increase in the cost of production independent of aggregate demand. This may occur as a result of increase in wages, or it might be that import price has increased irrespective of an increase in demand. There might be an increase in the level of taxes as well. Therefore any factor which contributes to an increase in the cost of production which leads to a rise in inflation causes cost push inflation. As a result of which there is a shift in the AS curve to the left. The suppliers will not bear the increased cost of production and instead will shift the price to the consumers by increasing prices and as a result fuelling inflation. Amongst several harmful effects highlighted Gwartney et. al (2000) argued that inflation distorted the information delivered by prices. They further stated that people responded to high and variable rates of inflation by spending less time producing and more time trying to protect themselves from inflation. Furthermore, inflation results in increased uncertainty which reduces the level of investment. A reduced level of investment would hamper economic growth, which further restricts people having a better standard of living and may also lead to unemployment. Further criticisms are that inflation redistributes income away from those on fixed incomes and those in a weak bargaining position to those who can use their economic power to gain large pay, rent or profit increases. Higher levels of inflation also worsens balance of payments position, a higher rate of inflation makes a country’s export less competitive in world markets and imports become cheaper and more attractive. Bes ides, extra resources are used to cope with the effects of inflation. Increasing interest rates has been one of the solutions offered to combat increasing level of inflation. Inflation has for long been considered a monetary phenomenon and economists believe that inflation can best be tackled by adopting the monetary policy approach. The UK economy recently has been a good example of such measure. Inflation was 3.79% well above the 2% target and after the increase in interest rate in the past months to 5.5% and also an anticipated increase in interest rate has led the inflation rate to fall to 2.8% in April (Website: BBC). In the UK Bank of England sets the interest rates which controls the money supply and in turn controls inflation as well. The UK government follows a target and instrument approach to keep inflation under control. Increasing interest rates with a view to controlling inflation works in a manner that it reduces the money supply. People have an incentive to save rather than spend, therefore controlling the increasing rise in prices. Thi s measure is a useful approach though the government should be careful to not continuously raise interest rates and curb spending because it would then adversely affect aggregate demand thereby slowing economic growth. Besides interest rates, the government could also opt for fiscal policy measures by increasing level of taxes or may be reducing government spending and in that manner controlling supply of money, To tackle cost-push inflation, government could provide tax relief or provide subsidies to firms so that the cost of production reduces which could lead to the producers maintaining the level of prices rather than increasing them. Some economists have also stated that costs of inflation may be mild if the inflation is kept in single figures. Conclusion From the preceding paragraphs it can be said that increased level of inflation is not a desirable situation for an economy. However, a certain level of inflation is required in the economy to incentivise producers to produce more and better variety of goods and services. Inflation poses to be a problem when the level of increased prices dampens exports, reduces the competitiveness of a country and starts affecting the economic growth of the country by creating uncertainty and therefore leading to reduced level of investments. However, fiscal and monetary policy measures can be taken to control the increasing level of inflation. Increasing interest rates, leads to a restricted flow of money supply, resulting in reduced level of spending, saving more, demanding less of goods and services and therefore leading to a slower increase in price levels. Fiscal policy measures could also be used to combat inflation. More importantly for an economy to grow reducing levels of inflation is an imp ortant macroeconomic objective. In conclusion it can be said inflation can be adversely affect levels of economic growth if allowed to go out of hand and increasing interest rates is undoubtedly one of the ways, though not the only way, to tackle inflation. BIBLIOGRAPHY Dornbusch, R., Fisher, S., Macroeconomics, (2000), Eighth Edition, Mc-Graw Hill Education Griffiths, A. and Wall, S., Applied Economics, (2001), Ninth edition, FT Prentice Hall Gwartney, James D., Stroup, Richard L., and Sobel, Russell S., Economics Private and Public Choice, (2000), Ninth Edition, The Dryden Press. Sloman, J., Essentials of Economics, (2004), Third edition, FT Prentice Hall Howells, P and Bain, K, The Economics of Money, Banking and Finance, (2002), Prentice Hall Journals and Articles Carlstrom, Charles., Money Growth and Inflation: Does Fiscal Policy matter?, Federal Reserve Bank of Cleveland, April 15, 1999 Internet and Other Sources: http://news.bbc.co.uk/1/hi/business/6656899.stm

Some Surrender :: English Literature

Some Surrender I have recently reviewed the short story â€Å"Some Surrender† written by Bernard MacLaverty. It deals with the relationship between the father and the son however wider issues including bigotry and prejudice are also incorporated into the story. Maclaverty choose to set the story in Belfast and the strained relationship between the father and son. The two men are meeting to celebrate the fathers 75th birthday. They meet on a local hill on the outskirts of Belfast. We see the symbolic relationship between the struggle up the hill and the men’s relationship. â€Å"†¦.The steep angle of the hill†¦.† They have not been speaking to each other for the last 20 years and only in recent times have the met. We soon discover the source of the struggling and damaged relationship is the mother. After marrying a roman catholic and having a baby with his wife before they were married he was shunned from his family as his actions conflicted with his mothers strong sectarian beliefs. The father also mentions â€Å"†¦.done this climb since you were small†¦.† This shows that much time has passed and also that the characters are familiar with the setting. The son based a book he has created of photos taken in Belfast this also shows that the son has returned to Belfast in the past but not to be with his family. The title of the book is â€Å"Some Surrender† which is based on the protestant slogan â€Å"No Surrender.† The story is divided into four parts during which we learn about the characters and plot. It is also told in present tense. The first part forms the climb of their journey. We learn about the background of the two men their secret meetings and the son’s alienation from the mother. The story is told in the dialog of the two men through which we see humour, honesty, strain etc between the two characters. They are celebrating the fathers 75th birthday and are reminiscing and catching up with each other. The main focus is on Roy we hear of the broken relationship with his mother and the damaged relationship with his father. We learn that Roy is a photographer with some success. â€Å"I see your postcards all over the place. Supermarkets even.† He lives in Dublin and is now separated from his wife. We also her how much is his mother disapproved of the son’s marriage. â€Å"She wasn’t even a good catholic.† It is evident that bigotry is the main cause of the problems. In the second part we hear again through the humour and dialog of the characters the problems that exist in Ireland and why each thinks the

A Study on the Effects and Treatment

Alcohol related mishaps and accidents remain the largest concern of society and in response to this more and more sectors of society have been implementing rules to curb the negative effects of teenage drinking.   There is no doubt that society has seen the negative consequences of teenage drinking.In a national probability sample of 4,023 adolescents between the ages of 12 and 17, it was found that 15% of the sample used alcohol, 10% used marijuana, and 2% reported hard drug use in the past year (Farrell, 2006, p 284)).   This means that the problem of underage or teenage drinking is even more prevalent than other substances.Although some alcohol consumption among adolescents is considered normative, there is great concern for the number of teens who are exhibiting signs of alcohol abuse or dependence with 7% of the above sample meeting diagnostic criteria for alcohol, marijuana, or hard drug abuse or dependence.Trends in alcohol use reported in the Youth Risk Behavior Survey in dicate that binge drinking (five or more drinks on one occasion during the 30 days prior to the survey) has shown little variation over the past several years, ranging from 31.3% in 1991 to 33.4% in 1997 to 31.5% in 1999 (Eaton, 2005, p. 79).Drinking continues to be a problem among youth and needs to be targeted specifically.   This drinking problem has led to a number of problems such school absenteeism and failure, depression, risky behaviors (especially driving under the influence), addiction, and death.This brief discourse, shall tackle the issue of alcohol abuse in teenagers as well as the possible treatments that can be done.   It shall also provide an etiological perspective of the problem in order to show the different factors that affect teenage alcoholism.Working as a school counselor for this age group, I agree with the American Academy of Child and Adolescents Psychiatry’s Report (2007) which states that the following groups are most at risk for alcohol abuse: 1) teenagers with a family history of addiction, 2) teenagers suffering from depression, 3) teenagers suffering with low self-esteem, and 4) teenagers that have academic problems.It has been shown that from the following groups the teenagers with a history of alcohol have higher rates of alcohol addiction with over 42% of the sample size coming from that background.The next group is that of those who were drinking because they were upset with a rate of 40% while the rest admitted that they usually drink because of low self-esteem and peer pressure which accounts for 25% of the teenagers (Farrell, 2006, p.284).   The number of teenagers that drink due to academic problems has steadily been on the rise since 1998 and is now at a rate of 25% of the teenagers.   From the list, one could argue that most teenagers have been in one or more of its categories at one time in their lives.Etiological Approach:The article, Etiology of Alcoholism Reconsidered, is an insightful article that p rovides a biophysical analysis of the problem.   Alcohol related mishaps and accidents remain the largest concern of society and in response to this more and more sectors of society have been taking steps to understand the nature of the problem.   One such approach is the biophysical approach conducted by Vailliant and Milofsky on the Etiological Approach to Alcoholism.It is theorized in the study conducted by Vailliant and Milofsky that there are other factors that must be considered when studying the problem of alcoholism.   According to the authors, there are personality and childhood influences that must be examined in order to arrive at a better understanding of the problem.In the study conducted, Vailliant and Milofsky studied many different factors and collected different types of date including ethnicity, heredity, psychological instability, childhood and adult personality variables, and family background (Vailliant and Milofsky, 1982, p43).   The data that was colle cted from all of this was then used to quantify the variance of each of the different etiological factors.It was from the data analytic strategy that Vailliant and Milofsky were able to draw the conclusion that whenever there are correlations that exist between alcoholism and certain behavioral patterns or symptoms, it is usually alcoholism that is the cause of such behavior or symptom rather than it being the result (Vailliant and Milofsky, 1982, p483).Alcoholism is, according to the authors, not so much a disorder whose etiological causes are personality and behavior but rather, it is a precedent for such behaviors.   It was also noted from the study that â€Å"premorbid antisocial behavior† is a major contributor to the etiology of alcoholism.Another important finding in the article is the fact that while Vailliant and Milofsky greatly downplayed the role of child antisocial behavior, it played a significant role in most of the categories.As with the other etiological fa ctors, it has been shown that there are correlations that have been overlooked or underrepresented in the study conducted by Vailliant and Milofsky.   As such, this has led to the theory of Zucker that in order for there to be an accurate etiological study, there must be a study that is conducted over â€Å"developmental time† and inclusive of â€Å"different levels of data† since it is only through this process that a proper understanding can be arrived at (Zucker 1986).There are, however, still certain researchers who argue that this study was not significant in that it failed to account for certain factors or relationships such as that of antisocial behavior and personality factors which was thought to be underestimated in the study.   This does not detract, however, that the study process used presented an angle that was quantifiable and perhaps accurate of the etiology of alcoholism.   

TERORISM and it’s Growing Threat to the entire Human Civilization

Terrorism has been among the oldest and yet the most devastating social problems in every human civilization that passes the earth’s history. True, as time passes, terrorism gains more and more development along with all the advancements of both science and technology.Through the passing years of the human history, terrorism has brought pain and grotesque effect to the people living within the so called ‘war arenas’ of terrorist attacks.Through the world reports dating way back several years past, terrorism could be identified to be among the strongest culprit, which keeps away the possibility of enhancing peace and security within the human society. In the late 1980’s, terrorism appeared to be on the decline. However, a new breed of terrorist has emerged.Today’s terrorist threat comes primarily from extremists who have established their own funding networks—through traffic in drugs, private business, independent wealth, charities, and local f inancial support. Moreover, they continue to be as ruthless as ever. (Schimoff, 10)Recent years saw a proliferation of senseless acts of terrorism. The World Trade Center in New York City was bombed, killing six people and injuring some 1,000. A cultreleased sarin nerve gas in the Tokyo subway system, killing twelve and injuring more than five thousand. A terrorist leveled a federal building in Oklahoma City with a truck bomb, killing 168 and injuring hundreds.Yes, it is indeed fearful enough for the current generations living today, thinking of the fact that terrorism now is ever developing and is directly affecting the entire human activities. Going back to the most recent and the most controversial terrorist attack that shocked the whole world is the September 11 incident in the United States.Upon the bombing of the big establishments in the United States, the whole world was alarmed and was moved to unify for peace. It could be remembered how the different races form equally dif ferent nations began to join in prayer for the whole world’s freedom from all the fears of being victimized by terrorism.With these, President Bush, acknowledged all those who took time to at least several minutes to pry for the aim of stopping the grave effects of terrorism not only in America but also in the entire human society.In his speech, President Bush points out the importance of the nations coming together in a goal of putting an end to the social dilemma brought about by the selfish aims of terrorists especially from Afghanistan.He further adds that there ought to be some changes on the way people from the said region of the world concerning their treatment to other nationalities especially to Americans. It could be noted that the most applauded part of his speech was that of the statements he directly addressed to the Afghan terrorists or Al Qaeda.As he said, he demands the people and whole society in Afghanistan to surrender any hidden terrorists in their country , thus helping the American government to eliminate the deepened terrorism operation in the said company.Furthermore, President Bush asks that the foreign national who were held captive by the al Qaeda group be released especially the soldiers who were only there to fight for the rights of the world to be free from the selfish and crooked desires of the said terrorist network group.Aside from this, the closure and the ceasing of the operation of numerous training camps in Afghanistan have also been demanded by the US President.   Hence, through this, the continuous development of young terrorists in the country could be ended and thus give the young boys of Afghanistan a better future than just the world that is controlled by anger, guns and wars.To be clear of what his idea of fighting terrorism is, he stressed that the fight is not against the believers of the Islam religion or the Afghanistan nationals living in the cradle of terrorism. He even pointed out that those who are en gaged in terrorism activities are traitors of their own faith. Thus, President Bush further emphasizes the importance of the fight, which he implies towards the terrorists.He then says that this is a fight of all those who believe in progress, pluralism, tolerance and freedom. Hence, to be able to fight terrorism, it is not war that is believed to stop the dilemma, but the application of meeting violence with patient justice.In the paragraphs to follow, the necessary points of consideration regarding the fight against the network terrorism activities around the world shall be carried through and tackled carefully. It shall highlight the act on how the American society as well as with the whole world is supposed to take high potential actions towards terrorist attacks.

Ming and Ottoman Empires essays

Ming and Ottoman Empires essays World power can be seen today in two very different but extremely vast empires. They are the Ming Empire and the Ottoman Empire. To contrast these empires in order to predict their futures, it is necessary that I observe and analyze key factors such as leadership, military strengths and weaknesses, and morals among the people. The two empires have different types of leadership, and from this it is possible to find the core of any disadvantage. From the leadership, it is possible to continue into the military and values that these empires embody. The Ming Empire is led by brilliant philosophical scholars, The man who is promoted to the higher degrees in this field prides himself on the fact that he has in truth attained to the pinnacle of Chinese happiness (Andrea/Overfield 116). The Ottoman Empire has dedicated and knowledgeable leaders as well, but they are of a more warlike and brutish character. These leaders rise in service by merit alone (Andrea/Overfield p.88). Indulging in the writings of Matteo Ricci, who observed first hand the workings of the Ming government, and the writings of Ogier Ghiselin de Busbecq, who observed the government under Suleiman I of the Ottoman Empire, the prediction of success will be able to be made knowledgably. The Ottoman Empire began around 1300 as a tiny state built on the strength of an army of Turkish nomad warriors and a few Christian converts to Islam in northwestern Anatolia (Bulliet 601). It quickly proved to be a military strength and threat to the surrounding civilizations. The Turks expanded their empire through brilliant military tactics, including using Janissaries on foot, who used the new weapon called a gun in battle, and the same horseback archery that made them so successful in their previous military accomplishments. The selection of Turkish leaders has greatly influenced the success of the Ottoman Empire. A Turks grandeur i...

Free Essays on Mass Communication

Wherever we turn in today’s high tech society we are surrounded by the media though mass communication. They fight for our attention and our interest by using catching phrases and clever cliffhangers. But they may fail to bring the individual what they feel is important in the interest of pleasing the masses. My intake of information through the media during the day is quite interesting do to all the sources I have available to me. While I am at work I am in constant contact with a TV or Radio. On my day of observation at work it seemed the news media was not present on the radio, only constant weather reports. I was never interrupted with short news briefs on any of the major stations, which can be conmen on high volume news days. The short briefs only started broadcasting after the World Trade Center tragedies on September 11th. The TV inside the shop was first turned to the NASCAR Race of the day, and then to ESPN. ESPN was dominated with the news of the NCAA tournament bids. ESPN was showing a 3 hour special on the tournament, going over rankings, placement, and expected finishes, it is believed so much fuss is generated over this tournament due to all the gambling involved. ESPN was just constantly feeding its viewers with information to make them potentially better informed to place bets. Which in turn will draw in viewers. When I returned back to my dorm room is where I found must of my information. Watching the 11 o’clock local news on channel 2 I picked most of the current events. Major plans are being planed for Monday March 11, as it is the 6-month anniversary of the WTC attacks. A moment of silence is planed at 8:46am to mark the hit of the first plane against the towers. Other news touched on the major weather change over the weekend and the power loss many experienced. One of the most interesting facts I found was that the temperature dropped 20 degrees in 18 minutes. I think that is amazing. The local news also menti... Free Essays on Mass Communication Free Essays on Mass Communication Wherever we turn in today’s high tech society we are surrounded by the media though mass communication. They fight for our attention and our interest by using catching phrases and clever cliffhangers. But they may fail to bring the individual what they feel is important in the interest of pleasing the masses. My intake of information through the media during the day is quite interesting do to all the sources I have available to me. While I am at work I am in constant contact with a TV or Radio. On my day of observation at work it seemed the news media was not present on the radio, only constant weather reports. I was never interrupted with short news briefs on any of the major stations, which can be conmen on high volume news days. The short briefs only started broadcasting after the World Trade Center tragedies on September 11th. The TV inside the shop was first turned to the NASCAR Race of the day, and then to ESPN. ESPN was dominated with the news of the NCAA tournament bids. ESPN was showing a 3 hour special on the tournament, going over rankings, placement, and expected finishes, it is believed so much fuss is generated over this tournament due to all the gambling involved. ESPN was just constantly feeding its viewers with information to make them potentially better informed to place bets. Which in turn will draw in viewers. When I returned back to my dorm room is where I found must of my information. Watching the 11 o’clock local news on channel 2 I picked most of the current events. Major plans are being planed for Monday March 11, as it is the 6-month anniversary of the WTC attacks. A moment of silence is planed at 8:46am to mark the hit of the first plane against the towers. Other news touched on the major weather change over the weekend and the power loss many experienced. One of the most interesting facts I found was that the temperature dropped 20 degrees in 18 minutes. I think that is amazing. The local news also menti...

How to Study in Graduate School vs College

How to Study in Graduate School vs College As a graduate student, youre probably aware that applying to graduate school is very different than applying to college. Graduate programs dont care about how well rounded you are. Likewise, participation in many extracurricular activities is a boon for your college application but graduate programs prefer applicants who are focused on their work. Appreciating these differences between college and graduate school is what helped you gain admittance to graduate school. Remember and act on these differences in order to succeed as a new graduate student. Memorization skills, late night cram sessions, and last minute papers may have gotten you through college, but these habits wont help you in graduate school and instead will likely harm your success. Most students agree that graduate-level education is very different from their undergraduate experiences. Here are some of the differences.   Breadth vs. Depth Undergraduate education emphasizes general education. About one-half or more of the credits that you complete as an undergraduate fall under the heading of General Education or Liberal Arts. These courses are not in your major. Instead, they are designed to broaden your mind and provide you with a rich knowledge base of general information in literature, science, mathematics, history, and so on. Your college major, on the other hand, is your specialization. However, an undergraduate major usually provides only a broad overview of the field. Each class in your major is a discipline unto itself. For example, psychology majors may take one course each in several areas such as clinical, social, experimental, and developmental psychology. Each of these courses is a separate discipline in psychology. Although you learn a lot about your major field, in reality, your undergraduate education emphasizes breadth over depth. Graduate study entails specializing and becoming an expert in your very narrow field of study. This switch from learning a little bit about everything to becoming a professional in one area requires a different approach. Memorization vs. Analysis College students spend a great deal of time memorizing facts, definitions, lists, and formulas. In graduate school, your emphasis will change from simply recalling information to using it. Instead, youll be asked to apply what you know and analyze problems. Youll take fewer exams in graduate school and they will emphasize your ability to synthesize what you read and learn in class and critically analyze it in light of your own experience and perspective. Writing and research are the major tools of learning in graduate school. Its no longer as important to remember a specific fact as it is to know how to find it. Reporting vs Analyzing and Arguing College students often moan and groan about writing papers. Guess what? Youll write many, many papers in graduate school. Moreover, the days of simple book reports and 5 to 7 page papers on a general topic are gone. The purpose of papers in graduate school is not simply to show the professor that youve read or paid attention. Rather than simply reporting a bunch of facts, graduate school papers require you to analyze problems by applying the literature and constructing arguments that are supported by the literature. Youll move from regurgitating information to integrating it into an original argument. You will have a great deal of freedom in what you study but you will also have the difficult job of constructing clear, well-supported arguments. Make your papers work double duty by taking advantage of class paper assignments to consider dissertation ideas. Reading It All vs. Copious Skimming and Selective Reading Any student will tell you that graduate school entails a lot of reading- more than they ever imagined. Professors add lots of required readings and usually add recommended readings. Recommended readings lists can run for pages. Must you read it all? Even required reading can be overwhelming with hundreds of pages each week in some programs. Make no mistake: You will read more in graduate school than you have in your life. But you dont have to read everything, or at least not carefully. As a rule, you should carefully skim all assigned required readings at minimum and then decide which parts are the best use of your time. Read as much as you can, but read smartly. Get an idea of the overall theme of a reading assignment and then use targeted reading and note-taking to fill in your knowledge. All of these differences between undergraduate and graduate study are radical. Students who dont quickly catch on to the new expectations will find themselves at a loss in graduate school.

Gender Equality and Social Institutions in USA and United Arab Essay

Gender Equality and Social Institutions in USA and United Arab Emirates - Essay Example It is clear from the discussion that in both USA and United Arab Emirates the education system followed in English, even though Arabic is taught in UAE. USA is famous as superpower and UAE is famous for its oil wealth. Both the countries are well known as the tourist destination. Both America and UAE has a large population of expatriates and is haven for migrant workers who look for better prospects in life and career. Just like America, UAE also consists of different states which are called â€Å"emirate† unitedly known as UAE. The currency of UAE is closely as valuable as American Dollar. Both American and UAE have a high living expense and high standard of living. The citizens of UAE like Americans lead a comfortable and quality life. Both these countries have a strict law system and criminals are punished severely once convicted. UAE like America has a population of an indigenous tribe who were early descendants of the country. In general USA and UAE, both allow freedom of religion to its citizens. The population of UAE is also similar to Americans in food habit as they love junk food. They too like Americans mainly follow a meat-based diet along with vegetables. Since UAE like the USA is a very modern, free-market country, people enjoy indulging in new products and different varieties of fast foods. For the very same reason, both countries have high obesity rates among citizens. The primary and prominent difference between both the countries is the religion they follow. UAE is an Islamic country and USA is predominantly a country which follows Christianity.UAE has Islamic laws governing the country whereas the USA is a secular nation. American is a highly liberal nation and gives complete freedom to its citizens whereas, UAE nationals are bound by Islamic laws. The USA has a government system whereas UAE is ruled by royal family of the nation. The national language of USA is English whereas UAE follows Arabic as their national language. The USA is a country with regions of varied geographical nature and climate, but UAE is a desert region and most part of the year is hot and humid. The geographical area of both these countries also varies drastically. USA is a huge country whereas UAE is a tiny country.UAE nationals unlike Americans are family oriented and are closely connected with family members. Among UAE nationals, the private functions are attended by men and women separately. The marriage ceremonies and other functions are truly Islamic law based. When it comes to the costume of UAE nationals they follow traditional outfit whereas American is casual and trendy in their dress sense. One will only find UAE men in white robe and women in a Black hijab with a veil on their face. America is famous for its pop culture and fast life but UAE follows Bedouin culture and lives a life which is medium paced.UAE imposes a restriction on dressing code, alcohol, and vulgarity in public while America is pretty much liberal.

LEGAL AND FINANCIAL ENVIRONMENT Assignment Example | Topics and Well Written Essays - 1000 words

LEGAL AND FINANCIAL ENVIRONMENT - Assignment Example This is the proportion of work done at the end of that period. UITF 40 method increases profits and tax. A single charge for service providers results in high financial difficulties and may lead to closure of the business. This affects service providers where a large amount of revenue is earned by owners and not employees. In case the contract is short-term, revenue is earned after selling or after working. Sometimes it may take place after delivery of the goods and their acceptance by the customers. Identification of UITF Abstract 40 has the highest benefits to proprietors who have contributed the highest value of the contract. Prior year adjustment accounts require a review of WIP for the earlier years which includes opening and closing balances, goodwill in the balance sheet that has been written off or amortised for any contracts that are in progress. All previous year’s figures are restated. All unaudited company accounts are added. While calculating incomes, ACCA advises that owners should deduct any incomplete work that is not billed in debtors-accrued income. Deduct all unclear balances of any contract; write off all insignificant amounts or any balances. Time records, diaries assess recovery records. The value of debtors is calculated as unbilled contracts. This contract contains all conditions agreed upon. They may include payment, working hours, overtime work and pay and resignation notices. Grace and Taylor require a written employment contract since they are many and work in various departments. According to Crmraeg (2014), employment contract contains employees’ employment conditions, their rights, responsibilities, and duties. Contracts are effective from the beginning of the work offer. The commencement of work indicates that the worker has agreed to the terms of the contract with the employer. Contracts will benefit this company since it contains details of payments, holidays,

Are latin Americans growing more anti-AmericanExplain your answer in Research Paper

Are latin Americans growing more anti-AmericanExplain your answer in detail.C.Q.Resercher, July 21, 2006, Vol.16.issue 26 - Research Paper Example And since Latin America is its closest neighbor, it was natural for the United States to take active interest in developments in the region. Often disparagingly referred to as US' backyard, it was in Latin America that US' imperialist goals were first implemented. (Field, 1978, p.659) And the continuation of these goals has led to genuine grievances among Latin American intellectuals and masses alike. It then comes as no surprise that anti-American sentiment in this part of the world is steadily increasing. The rest of this essay will present further evidence in support of this claim. Looking at the history of American politics, the perception of the United States as an imperialist state was first mooted in the early part of the nineteenth century and the outbreak of the Spanish-American war in 1898 confirmed this fact. Indeed, the final years of the 19th century saw the peaking of American imperialist aggression as it occupied Cuba, Puerto Rico and the Philippine Islands – th e latter two eventually becoming American colonies. (Lens & Zinn, 2003) Unfortunately, though, not much has changed since the time of these conquests, creating a sense of resentment and despair among Latin Americans. ... All of these factors have established political institutions in many countries in Latin America. In several others, American involvement has sapped the economy to the brink of collapse. But when looks at the views of founding fathers of the United States, they have unequivocally stated such strategic and economic goals, albeit covered in polished language. For example, the early indicators of imperialist tendency can be found in the founding documents of the country. Even luminaries such as Thomas Jefferson have articulated an imperialist vision for the United States in no unclear terms. The annexation of Louisiana in the eighteenth century is seen as the first act of this vision. During the nineteenth century, the U.S.' foreign policy was largely confined to the American continent, with Central and Southern American regions being focal points. (Sawyer, 2004, p.115) As is typical of imperialist propaganda, convoluted justifications were given for aggressive foreign policy. It was sta ted that lands of 'semi-civilized' and 'primitive' peoples were occupied in order to bring Western civilization (which is supposedly superior) to these lands. Empire expansion was also projected as benign and compassionate, for Christian missionary work was invariably associated with it. Propaganda also had it that the standards of living of subjects of the empire will eventually rise. On the whole, imperialist enterprise was promoted using these vapid and empty slogans and motives. (Lens & Zinn, 2003) But sooner, the affected masses came to see these projected noble goals for what they are. And the stirring currents of dissent in Latin America today are one of its manifestations. America's destructive interventions in other parts of the world has also disillusioned many

Language in Copley's Gibraltar Essay Example | Topics and Well Written Essays - 1250 words

Language in Copley's Gibraltar - Essay Example Dadaism â€Å"unbound† language and played with its potential. I also want to â€Å"unbind† â€Å"language† as a concept by relating it to one of John Singleton Copley's paintings, The Siege and Relief of Gibraltar. I selected the word â€Å"language,† because it has a large role in several defining experiences of my college life. In this essay, I describe painting as a â€Å"language† in itself that can be directly experienced, struggled with, and enjoyed, which is like learning a second â€Å"language.† A painting has a â€Å"language† that can be directly experienced, when the audience try to interpret its implied stories and meanings. The Siege and Relief of Gibraltar tells the story of the battle between two old superpowers, Spain and Great Britain, a battle that can be related to the struggles of learning a second language. The painting asks the audience to see the Battle at Gibraltar in splendid action and drama with definitive winners and losers. It is neatly divided into two planes of the two groups. The British are depicted as an orderly and coordinated team. General Sir George Eliott leads his men through giving orders on how to float the Spanish flotillas or floating batteries. The Spaniards witness their flotillas sinking along with their crew. They are portrayed, not only as the losers, but also as barely human beings, because of the lack of details in how they were painted. I look at this painting and it teases my imagination, as I think about Eliott's ingenuity in planning always three steps ahead. I can feel the experience of the action in the battlefield. I designate myself as an impassioned observer, but amazed at the military tactics and technologies used during these times. General Sir George Eliott has planned everything so well that his men hardly had to do anything, while the Spaniards, in sharp contrast, resemble cats who are at their ninth life. They will try everything to survive. The S iege and Relief of Gibraltar has embedded meanings and implications that â€Å"language† can dismantle. This visual reading is similar to learning a second â€Å"language,† where I also have to make sense of the arbitrary symbols the English â€Å"language.† I find it perplexing to no longer see my native â€Å"language† as arbitrary, because I have grown with it. It is part of my breathing already. Yet this other â€Å"language† loses its natural character and becomes emerged into arbitrariness, transforming it into an alien code that I have to learn and decipher. I understand now why Dadaism undermined the linguistic sign. A foreign â€Å"language† can take a psychophysiological eidetic experience, one that can be broken apart and played with (Rumold 77). In addition, Copley's painting fits what Keats describes as the ability of a work of art to become a â€Å"made† entity that catch the audience by â€Å"teasing [them] out of thou ght† (cited in Behrendt 37). Truly, reading a painting can bring the audience to an â€Å"imaginative alternative reality† (Behrendt 38). Furthermore, the painting, as an experience, pushes the audience to attack the works through reflecting on the process that it is perceived and assessed (Behrendt 38). Learning a second â€Å"language† also invited me to be critical of this perception process. How do I see English as a â€Å"

Sarbanes Oxley Act Essay Example | Topics and Well Written Essays - 2000 words

Sarbanes Oxley Act - Essay Example The degree of disclosure of financial information is also a main reason. Mostly the corporate running bodies do not find them answerable in front of any regulatory body; therefore they keep on trying 'innovative' ideas for which others have to pay. (Maclean, 2005) Financial information in the form of audited accounts can prevent the system slipping into corruption (Sunlight is the best detergent), but it is not clear why, for example, a superior US financial reporting infrastructure did not help us detect Enron. The Sarbanes-Oxley Act of 2002, Pub. L. No. 107-204, 116 Stat. 745 (July 30, 2002), is a United States federal law also known as the Public Company Accounting Reform and Investor Protection Act of 2002 (and commonly called SOX or SarbOx). With the major financial reforms in most of the countries of the world the Sarbanes-Oxley Act was passed in the United states in order to deal with the issues such as establishment of the public company, the level of auditor's independence, proper monitoring of the accounting practices of the company under a board, corporate social responsibility and enhancement in the financial disclosure to the prescribed level by the act. The law is seen as the major reform in the after the New Deal passed in 1930. The act revolutionized United States securities laws. The House approved act with the majority of 423-3 and Senate by 97-0. The act increased the U.S. Securities and Exchange Commission powers. The Sarbanes-Oxley Act's requires the companies to make their financial reports certify by the chief executive officers and chief financial officers. According to the act the Executive officers and directors are not allowed to take personal loans. The act prescribed the companies for the extended disclosure of the financial information in order to improve the shareholders and stakeholders accountability. The act also increased the jail sentence duration and increased the fine amount in case of violence of the securities law or misuse. The corporate executives misstating the financial information will also have to face increased sentence time duration and higher amount of penalties. The act also prohibited the audit firms to provide any services additional to that of the auditing to the companies they are working for. The compensation of the Chief executives and other higher executives are also required to be reported. The act also accelerated reporting of trades by insiders and prohi bition on insider trades during pension fund blackout periods. (Wikipedia, 2006) Reference Maclean, P., (2005). Power Play - Robert McCullough was interviewed for an article covering Enron's role in the California power crisis and its aftermath, Portland Monthly, May 2005, Retrieved 05/005/06 from Wikipedia, (2006). Sarbanes-Oxley Act, Retrieved 05/005

Electronic Art Inc. Analyst Report Assignment Example | Topics and Well Written Essays - 2500 words

Electronic Art Inc. Analyst Report - Assignment Example Today, the company is one of the largest interactive entertainments that deal with the software companies (Zippay, Lori 87). The company is located in CA 94063 in Redwood City. In 2001, Electronic Arts acquired pogo.com. Pogo is at the forefront in offering the services of online family games with nearly seventeen million members who are registered. Because of the company’s popularity, most leading research companies names the acquired firm as one of the stickiest web pages in 2000. But the financial details of the deal remained disclosed. In 2000, the company released The Sims, which was rated as the best-selling personal computer game of all time. In 1998, the company announced that it had signed a deal to buy all the outstanding stock of a company called the Westwood Studios. Additionally, it bought the Virgin Interactive Entertainment studio assets. Virgin Interactive Entertainment is one of the branches of Spelling Entertainment Group. The transaction cost was valued at 1 22.5 million dollars. COMPANY PROFILE Ticker symbol The video game maker company changed its NASDAQ stock exchange from â€Å"ERTS† to â€Å"EA†. The ticker symbol was made effective on Thursday 15th Dec 2011. Therefore, the current ticker symbol for Electronic Arts is â€Å"EA† Mission Statement The mission statement for Electronic Arts is â€Å"We are an association of Electronic Artists who share a common goal. We want to fulfill the potential of personal computing†. Corporate Headquarters The company is a global organization with development studios and offices that are located across the world. The company provides their employees with opportunities and avenues to leverage their talents across various locations of the world. The company makes sure that all workers in all regions are equipped with best investment, great facilities, and support to work while maintaining team spirit and creativity. The company has united locations to generate the passio n of creating great game software which fulfills the quest for entertainment ("Multimedia & Graphics Software Industry Leaders & Laggards: Industry Center - Yahoo Finance."). Electronic Arts operates its corporate headquarters in California in Redwood Shores. Its regional headquarters is in Singapore and Geneva Switzerland. Additionally, the company has worldwide studios in the following areas: United States ( Tiburon, Maxis, Mythic, Visceral Games, and All Play), Canada (All play, Bio Ware, EA Montreal, and EAC ), Europe (Galway, Criterion, Digital Illusions, Phonemic, and Bucharest), and Asia (Shanghai, Seoul, Hyderabad, Pandemic, Singapore, Melbourne) ("Multimedia & Graphics Software Overview: Industry Center - Yahoo Finance."). Date of Incorporation The company was founded and incorporated in 1982 May. The founder of the company was Trip Hawkins. Electronic Arts became the pioneer of the home computer games and was known for promoting the programmers and designers that are respo nsible for their own games. The company became the 3rd largest software companies for games after Activision Blizzard and Nintendo (Zippay, Lori 98). Electronic Arts Executive Name Position Andrew Wilson Chief Executive Officer Lucy Bradshaw Senior Vice President Maxis Frank Gibeau Executive Vice President EA mobile Blake Jorgensen Chief Financial Officer Joel Linzier Executive Vice Pr

Sarbanes Oxley Act Essay Example | Topics and Well Written Essays - 2000 words

Sarbanes Oxley Act - Essay Example The degree of disclosure of financial information is also a main reason. Mostly the corporate running bodies do not find them answerable in front of any regulatory body; therefore they keep on trying 'innovative' ideas for which others have to pay. (Maclean, 2005) Financial information in the form of audited accounts can prevent the system slipping into corruption (Sunlight is the best detergent), but it is not clear why, for example, a superior US financial reporting infrastructure did not help us detect Enron. The Sarbanes-Oxley Act of 2002, Pub. L. No. 107-204, 116 Stat. 745 (July 30, 2002), is a United States federal law also known as the Public Company Accounting Reform and Investor Protection Act of 2002 (and commonly called SOX or SarbOx). With the major financial reforms in most of the countries of the world the Sarbanes-Oxley Act was passed in the United states in order to deal with the issues such as establishment of the public company, the level of auditor's independence, proper monitoring of the accounting practices of the company under a board, corporate social responsibility and enhancement in the financial disclosure to the prescribed level by the act. The law is seen as the major reform in the after the New Deal passed in 1930. The act revolutionized United States securities laws. The House approved act with the majority of 423-3 and Senate by 97-0. The act increased the U.S. Securities and Exchange Commission powers. The Sarbanes-Oxley Act's requires the companies to make their financial reports certify by the chief executive officers and chief financial officers. According to the act the Executive officers and directors are not allowed to take personal loans. The act prescribed the companies for the extended disclosure of the financial information in order to improve the shareholders and stakeholders accountability. The act also increased the jail sentence duration and increased the fine amount in case of violence of the securities law or misuse. The corporate executives misstating the financial information will also have to face increased sentence time duration and higher amount of penalties. The act also prohibited the audit firms to provide any services additional to that of the auditing to the companies they are working for. The compensation of the Chief executives and other higher executives are also required to be reported. The act also accelerated reporting of trades by insiders and prohi bition on insider trades during pension fund blackout periods. (Wikipedia, 2006) Reference Maclean, P., (2005). Power Play - Robert McCullough was interviewed for an article covering Enron's role in the California power crisis and its aftermath, Portland Monthly, May 2005, Retrieved 05/005/06 from Wikipedia, (2006). Sarbanes-Oxley Act, Retrieved 05/005

Diversity Ability in the work place Term Paper Example | Topics and Well Written Essays - 500 words

Diversity Ability in the work place - Term Paper Example In developed nations like the United States and UK where diversity is the major facet of democratic setup, the concept of workplace diversity is mandatory. Researchers are deeply at odds regarding the pros and corns of maintaining diversity in workplace. Many are of the opinion that diversity will intensify the organizational issues including conflict of interest, increasing HR costs, and communication barriers. On the other hand, others believe that diversity will enhance the potential of labor force. For instance, according to the latter concept, a workgroup that consists of senior, experienced individuals would ease the managerial tension as these individuals are familiar with every activity of business operation. In the same way workers from different cultural background can easily identify the potential customer segments of their region or culture. A company can make use this diversity for acquiring knowledge on various legal, ethical, cultural aspects of its business destinatio n. Acquiring diverse workforce will help a firm to preserve a pool of diverse skills too. For instance, elders with work experience and practical knowledge are equally important to youngsters with creative ideas and higher level of adaptability.

Next PESTLE Analysis | Next Plc

Next PESTLE Analysis | Next Plc Tags:  PESTLE Analysis, PESTEL Analysis, PEST Analysis Introduction A PESTLE analysis provides and analysis of six of the key macro level factors which affect a business and the decision which it makes (Grant, 2008). This assignment will apply the relevant factors within the PESTLE framework to the international clothing retailer Next and its subsidiaries. Data upon which the assignment is based comes from a variety of sources including the companys annual report (Next, 2012) and released and well as information from the academic and business press. In order to give the assignment a greater level of focus, the report will be limited to an analysis of the external environment in the UK. Political There are a wide range of political factors which affect Next at present but also factors which may have an impact upon the company in the future. One key political decision which affects Next in the UK is the rate of tax levied by the government. This has the ability to affect both the bottom line of the company in the form of corporation tax but also the ability of customers to spend with next, linked to income tax. At present, levels of corporation tax in the UK have been lowered in order to attempt to stimulate economic activity (Telegraph, 2012). However, given the continuing deficit, there is no guarantee that governments in the future will maintain the rate of corporation tax at its current level. Other key political decisions consider interest rates. At present, UK interest rates stand at an all-time low of 0.5% (BoE, 2010). This may be seen as a positive factor for firms such as Next who are effectively able to borrow large amounts of money for the purposes of capital expansion at much lower rates than have been previously seen. Such borrowing may take place in the form of long term borrowings from banks and financial institutions, alternatively the company may choose to issue corporate bonds (Arnold, 2008). Other political issues relate to the governments relatively arms length approach to Europe and remaining outside of the single currency area (FT, 2012). For a UK based business such as Next that has international operations in the Euro Zone, this could be seen as negative with the prospect of foreign exchange rate risks being felt and the introduction of additional transaction costs which would be eliminated if the government decided to join the Euro Zone. From a more general perspective, the UK political system based upon parliamentary democracy may be seen as providing Next with a relatively low risk political environment in which to operate within (CIA, 2013). This may be seen as an advantage in comparison some of Nexts ventures into potentially less stable political nations such as Russia and those of the Middle East. As such, this makes the UK a relatively safe market for Next to make further long term capital investments in where the company may think twice in the case of less stable political environments. Economic A critical factor which may have an impact upon Next in the UK is the current state of the economic environment. As a business which makes use of a premium based differentiated strategy, as opposed to being a cost leader, it may be seen that swings within the economic environment have the ability to impact the fortunes of the company to a greater degree than those operating in the necessity and budget sector of the market (Johnson et al, 2008). From a purely statistical perspective, the years since 2007 have been an economic rollercoaster for the UK. Following the onset of the global financial crisis in 2007, the subsequent year saw GDP growth revert to negative figures with -1% contraction in the economy. This was followed by even worse performance in 2009 with a -4% contraction. Low levels of growth have been seen since in 2010 and 2011 with GDP growth of 1.8% and 0.8% respectively (World Bank, 2013). However, while the statistics show a slight recovery in 2010 and 2011, others within the business press (BBC News, 2012) indicate that the UK economy could continue to flat line or worse result in a double dip recession. These headline figures may seem to paint quite a negative picture for retailers such as Next which are highly reliant on the UK economy as a source of revenue. However, an analysis of more detailed economic data may highlight a different perspective. Tutt (2012) presents data which looks at the level of unemployment and household disposable incomes in the UK. In this case an alarming pattern is seen. On the one hand, levels of unemployment have been increasing in recent years with a rise from 0.86m in 2007 to 1.53m in 2011. However, conversely, the levels of disposable income of individual households during the period has consistently risen from  £14,308 per household in 2007 to  £16,042 per household in 2011 (Tutt, 2012). For Next and other premium end retailers this may have a key impact upon strategy. While there may be few customers able to by the products and services of Next due to rising unemployment, those who have remained in employment have generally become wealthier. As a result it is likely that such economic patterns may help Next to improve its average spend per customer, even if the total number of customers falls. Social-Cultural There are many social and cultural changes taking place in the UK at present which may have a high level of impact upon the performance of fashion retailers such as Next. In many cases, as representatives of an essentially socio-cultural industry, the fashion industry itself may be seen as an industry which is affected by such trends to a greater degree than other industries (Curtis et al, 2007). One of the key issues in the UK market, but also seen across Nexts wider European markets is the general aging of the population (Parliament UK, 2012). This may be seen as both problematic but also an opportunity for Next. One the one hand, an ageing population may see Next having to adapt its product portfolio in an attempt to ensure that the products supplied by company appeal to this aging demographic of the population. In addition, the prospect of an aging population may also see that competition for the increasingly smaller younger demographics of the market becomes more intense for Next as time progresses. Despite these drawbacks, there are also advantages linked to the issue. On consideration is that ageing populations tend to be less mobile than younger demographics, this may be a key advantage for Next given that its home delivery and online business model offer a convenient solution to the problem. Other socio-cultural factors include the consideration that the UK has since World War Two become an increasingly culturally diverse nation with an influx of diverse cultures, races and ethnicities all contributing towards the socio-cultural backdrop of the UK social system (Shepherd, 2010). For Next, this has not only external implications such as those linked to aligning product ranges to specific cultural segments, in attrition, the company musty also ensure that it deals with issues such as managing diversity in the context of its own organisation. In this case, increased cultural diversity can be seen as both a source of a competitive advantage yet also a potential source of conflict (Liff, 1997, Ivancevich et al, 2010). As EU expansion takes place and the new member states become further integrated into the EU, there is a distinct possibility that the trends for increased diversity in the UKs labour and consumer markets will increase rather than decrease. Technological There is little doubt that new technological developments have transformed the UK business environment, especially those operating in the retail sector. Key developments may be seen as those technologies which are internet or communications based in nature, such as the wide spread diffusion of broad band (Jobber, 2007). Key technological developments such as the internet have allowed firms such as Next to develop online business models which complement traditional bricks and mortar retail establishments. Empirical evidence from the ONS (2009) on the subject shows that the growth has been almost exponential with a rapid acceptance on the behalf of customers of online shopping in both retail and other markets. Yet communications technologies have not only been used by the sector to facilitate online sales and shift away from the traditional high street place. Other aspects of new technological development have seen a range of new marketing options opened up to retailers such as Next. Most important amongst these are developments which have allowed retailers to interact with customers using online social networking sites such as Facebook, YouTube and Twitter. These are now seen as key ingredients in the development of a successful marketing strategy (Zarrella, 2010), largely the product of technological changes in the sector. Other technologies have simply allowed businesses to develop better relationships with their consumers and communicate in a more effective way. Take for instance the technological developments of smartphones and apps. Such technology has allowed companies to develop apps which allow consumers to find their nearest branch or check the facilities and product availability at a branch before making a visit. This allows an effective bridge to be built between the purely online business model such as those operated by a company like Amazon and those falling into the bricks and clicks category (McGoldrick, 2002) such as Next who must seek to leverage the benefits of both arms of the business. While technology in this section has largely been presented as an opportunity, there is of course a risk factor. Many have expressed concerns over the abandoning of the high street as consumers flock to online business models. The case is illustrated only too recently with the example of Jessops going into administration, a business which may be seen as falling victim to technological developments (Goodley, 2013). Legal Like all businesses, Next must conform to the legal minimum standards which are enforceable in a jurisdiction. The case of Nexts UK operations legal elements may be seen as more complex given that the company must comply with both UK law and EU law. Some of the key legal regulations which affect Next in the UK are considered below: Minimum wage legislation A key piece of legislation in the UK which affects organisations such as Next with a large number of low paid workers is that of various minimum wage regulations. In this case, the legislation requires UK employers to pay their employees a minimum of  £6.19 per hour for those aged over 21 (Gov UK). Given the large number of employees of firms such as Next which are affected by the National Minimum Wage, temporary shifts in legislative policy can have a high impact upon the sector. Other key legislative issues include equal opportunities legislation and various other acts of parliament designed to ensure equality both in the work place and in the recruitment and selection process (Pilbeam and Corbridge, 2010). In this case, such legislation has a direct impact upon the processes and practises of an organisation such as Next who are required not only to design corporate polices which facilitate equality but also to record activities related to recruitment and selection should an employee call foul at a later date. The issue here for businesses such as Next is that the legislative environment often places the burden of proof on the defendant rather than the claimant in such cases. As such, the development of detailed HR processes and practises is critical (Bratton and Gold, 2007). Further issues relate to potential moves on the behalf of legislators to become tougher in relation to issues of tax avoidance. While Next has to date not been implicated in any of the tax avoidance scandals, there is a consideration that the actions of other retailers such as Starbucks and Amazon (Syal, 2012) may have provoked the onset of a tougher legislative environment in the future which may have an impact upon innocent parties such as Next. Environmental The physical environment is also a key issue for firms operating in any given national market and consideration should be considered two how firms treat the physical environment and the impact this has on the business, but also the impact the physical environment generally has upon a business. In general terms, the physical environment which Next operates within in the UK may be seen as relatively benign in comparison to other parts of the world which suffer from high intensity natural disasters such as earthquakes, hurricanes and forest fires. Despite such an environment there have been a number of environmental issues recently in the UK which have affected the retail sector. These have included increasing more frequent floods (Retail Bulletin, 2013) and poor sales due to snow storms and the failure of local authorities to prepare for periods of inclement weather (Hall, 2011). Other aspects of the environmental analysis require firms to consider their own impact upon the environment. In general terms, the literature (Parsons and MacLaran, 2009) considers that consumers are becoming increasing aware of the impact of businesses upon their environment. As such, if businesses are to maintain customer loyalty and avoid negative backlashes, then they must seek to minimise their impact upon the environment. In the retail sector, this may include reducing waste, running more efficient transport operations and implementing ethical sourcing policies. While failure to comply with such consumer demands may result in a negative consumer backlash, with the adoption of the right approach, high environmental credentials can be used to add value to a product or service. Such an example is seen in the Marks and Spencer (2013) and Body Shop business models in the retail sector. Conclusion Having reviewed the key factors within the macro level environment as presented in the PESTLE framework, it is possible to come to a number of conclusions in relating the model to Next and its UK operations. On the one hand, it would appear that the external environment is a significantly challenging one for Next with the prospect of further poor economic performance and a requirement to comply with what may be seen as a relatively tough legislative environment. However, the PESTLE factors would also seem to indicate that there are some large opportunities for Next in the UK. Such opportunities include the ability to borrow at low interest rates to fund capital expansion and increased opportunities to link technological developments to changes in the social fabric of society in order to drive more sales through web based platforms. Other factors such as changing technologies and increases in diversity may be seen as neither positive or negative intrinsically but still require some ch ange on the behalf of Next. Having reached these conclusions, the final opinion of the writer is that the external environment is essentially neutral for Next at the moment and that the success of the business will be largely dependent upon whether managers of the business capitalise upon the stated opportunities or allow the challenges to see Next becoming another casualty of the death of the high street. Bibliography Arnold, G. (2008). Corporate financial management. 4th ed. Harlow: FT Prentice Hall. BBC News. (2012). UK economy in double dip recession. Available online at: http://www.bbc.co.uk/news/business-17836624 [Accessed on 18/01/13]. BoE. (2010). Bank of England maintains bank rate at 0.5% and the size of the asset purchase program at  £200 billion. Available online at:  http://www.bankofengland.co.uk/publications/news/2010/084.htm  [Accessed on 18/01/13]. Bratton, J, Gold, J. (2007). Human resource management theory and practise. 4th ed. Basingstoke: Palgrave Macmillan. CIA. (2013). World fact book UK. Available online at:  https://www.cia.gov/library/publications/the-world-factbook/geos/uk.html  [Accessed on 18/01/13]. Pilbeam, S, Corbridge, M. (2010). People resourcing and talent planning. 4th ed. Harlow: FT Prentice Hall. Curtis, E, Watson, H, Sephton, L. (2007). Fashion retail. 2nd ed. New York: John Wiley and Sons. FT. (2012). UKs Euro trade supremacy under attack. Available online at:  http://www.ft.com/cms/s/0/736bd72a-3c9a-11e2-a6b2-00144feabdc0.html  [Accessed on 18/01/13]. Goodley, S. (2013). 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Automobile Sector Analysis: Five Forces and SWOT Automobile Sector Analysis: Five Forces and SWOT 1. Overview of the automobile sector Five forces analysis Competitive Rivalry between Existing Players: High Competition between existing automobile companies is high. Although the automobile market was dominated by the three big auto manufacturers in US, Toyota and Honda in Japan, the situation is changed. With the growing demand in emerging market, the emerging competitors in China and India may drive an intensified price competition. However, the competition could also focus on the safety, warranty and financial services etc. Threat of New Entrants: Medium Although the entrant barrier is high for the automobile industry because the requirement of capital and technology, an increasing number of automobile manufacturers are emerging in China and Asia due to the economic expansion and growing demand. However, these automakers are in the development status and may not catch up the leading technology in Japan and US, so the threat from new entrants is medium. Threats of Substitutes: Low Customers could choose to switch to transportation means other than automobile such as bicycles, buses and subways. However, the automobile is still the favourite despite the relevant high cost than other mentioned transportation means because its flexibility, comfort and convenience. Bargaining Power of Suppliers: Low In automobile industry, the component supplier has little bargaining power because the manufacturer could switch to other suppliers easily. On the other hand, the components are generally low value and the suppliers find it difficult to bargain with automakers. Bargaining Power of Customers: High The competition in the automobile industry is intense as mentioned above. So the customers have many choices on the brands and models. Customers care about the quality, price, safety, comfort, appearance of the car. Recently, customers are also more and more concerned about the environmental effect of the automobile and the energy efficiency. So the customers get more and more bargaining power in automobile industry. 2. Toyota Motor Company 2.1 Overview of the company Company profile Toyota Motor Corp. is one of the largest and leading automobiles manufacturers in the globe. It operates in three main business segments; the two biggest are automobile and financial services whereas the third one is comprised by many smaller other divisions. It is spread worldwide as it has 50 manufacturing facilities in 27 countries and regions Toyota designs, manufactures and sales passenger cars of several types and utilities, trucks, tractors and material handling equipment, minivans and other car accessories. Its products can be divided into 2 main categories, conventional and hybrid vehicles. The company sells its products under Toyota, Lexus, Hino and Daihatsu brands The company is also engaged in the financial industry as it provides financing to its customers and dealers. It is also involved in housing, marine, e-commercial, ITS and biotechnological activities. Toyota sells its vehicles in more than 170 countries and regions worldwide. Toyotas primary markets are Japan, North America, Europe and Asia. It is headquartered in Toyota City, Japan and employed around 316,121 people as on March 31, 2008 Strategy Analysis Toyotas strategy can be summarised under three key principles; growth, efficiency and stability. These are the three priorities the companys management will pursue to achieve future sustainable growth and increase the economic value. Growth will be achieved through continuous investment mainly in hybrid vehicle segment to meat the increasing demand. Efficiency is mainly focused on cost management and further reduction in order for the company to be able to provide high quality products in affordable prices and maintain its competitive advantages. Stability will be ensured by maintaining a solid financial base. Within the economic downturn it is important for Toyota to maintain sufficient liquidity in order to continue to finance its investments in research and development of new technologies, which is an integral and essential part of the companys advantages. Peer Group As Toyota operates in the global market its competitors come from all around the world. Its major competitors are BMW AG, DaimlerChrysler AG, Fiat S.p.A., Ford Motor Company, General Motors Corporation, Honda Motor Co. Ltd., PSA Peugeot, Renault S.A., Volkswagen AG and many others SWOT Analysis Strengths Weaknesses Strong overall financial performance Strong reputation and quality Strong position is Asian market Research and development Production pipeline system and cost management Diversified product portfolio Financial services are still undeveloped Huge expenses on pensions and post-retirement benefits Opportunities Threats Increasing demand for hybrid and environmental-friendly cars Expansion in emerging Asian markets Financial and other non-auto division development New car models Global economic crisis Strong competition in automotive industry Yen and US dollar exchange rates Tight environmental regulations on carbon emissions Problems with specific components of sold cars. (Recent brake problem) 2.1. Key Financials Analysis 31/3/2009 31/3/2008 31/3/2007 31/3/2006 31/3/2005 Sales 207,852.40 264,120.58 202,821.01 178,294.05 173,443.60 Operating Income -4,667.52 22,809.82 18,959.84 15,919.51 15,192.39 Net Income Available to Common -4,423.79 17,259.05 13,923.62 11,629.63 10,950.45 Total Assets 292,725.95 324,979.61 275,051.76 242,604.35 227,515.08 Total Liabilities 185,398.39 199,132.47 169,488.89 148,104.55 138,230.49 Common Equity 101,865.07 119,249.79 100,242.15 89,502.94 84,563.86 Net Cash Flow Operating Activities 14,724.7 26,357.6 27,783.5 22,136.2 22,144.6 * IMPORTANT First year to report losses * Stable increase in sales Decline in 2009 greatly affects income * Severe decrease in cash flow from operating activities, nearly 50% * Very big difference between sales and operating income points out severe cost expenses for the company. As this differences is constantly increasing it is not far from the truth to say that Toyota is gradually loosing its competitive advantages in cost efficiency against its competitors. * General trend in key financial s shows a steady and permanent increase until 2008 and a sharp decline in 2009, due to severe problems of economic recession and its great impact on automobiles industry. This trend applies for almost all financial s, pointing out that the companys performance as a whole followed a movement like this. 2.3. Multiples analysis 31/3/2009 31/3/2008 31/3/2007 31/3/2006 31/3/2005 Price To Earnings -22.43 9.19 14.74 15.25 11.23 Price To Book 0.97 1.32 2.04 1.97 1.44 Price To Cash Flow 7.41 4.83 7.83 7.80 5.87 Price To Sales 0.5 0.7 0.8 1.0 0.7 * Multiples follow companys general trend, namely increase until 2007 and then decreasing sharply * Consistent with overall picture of company, multiple analysis show the economic downturn of the entity from 2007 onwards * Point to mention: negative P/E ratio. Markets expectation about company looks really slim. The economic crisis, alongside with its severe problems generating income and its recently damaged reputation, create really unfortunate future prospects for Toyota. The negative P/E ratio and specifically its magnitude (-22) implies that nobody is neither willing to pay to buy the companys share nor expecting any profit generation. * Very sharp decline as well; 31.62 units is something extremely noticeable. If we focus on decline itself, it shows an extremely quick unfavorable turn of the market towards the company. 2.4. Companys performance 31/3/2009 31/3/2008 31/3/2007 31/3/2006 31/3/2005 Profitability Return on Equity -3.98 14.49 14.68 14.00 13.60 Operating Profit Margin -2.25 8.64 9.35 8.93 8.76 Asset Utilization Total Assets Turnover 0.71 0.81 0.74 0.73 0.76 Net Sales % Working Capital 28.93 180.70 1412.62 29.78 15.30 Gearing EBITDA / Interest Expense 20.94 86.19 77.33 153.70 146.20 Long Term Debt/ Common Equit 62.63 50.40 52.92 53.41 55.44 Valuation Investment Earnings Per Share -1.41 5.43 4.34 3.57 3.32 Dividend Yield Close 3.21 2.82 1.59 1.40 1.63 Liquidity Quick Ratio 0.81 0.77 0.76 0.81 0.87 Current Ratio 1.07 1.01 1.00 1.07 1.15 * Negative profitability in 2009 * Fluctuating sales/working capital as a result of fluctuation if investments (working capital) * Gearing increase in 2009 at the same time with high decrease of interest cover * Stable and quite low liquidity 2.5. Cash Flow analysis 31/3/2009 31/3/2008 31/3/2007 31/3/2006 31/3/2005 Cash Flow Operating Activities 14,724.7 26,357.6 27,783.5 22,136.2 22,144.6 Cash Flow Investing Activities (12,265.3) (34,254.0) (32,727.4) (29,704.4) (28,591.6) Cash Flow Financing Activities 6,967.4 6,242.7 7,565.6 7,716.8 3,917.0 Effect of exchange rates -1,294.04 -749.27 218.18 604.94 232.09 Net Cash Flow 8,132.86 -2,402.99 2,839.91 753.58 -2,297.85 * Severe decrease in cash flow from operating activities, nearly 50% which vividly affects its operating income * Extreme decrease in investing activities around 70%, probably caused by cash shortage and policy change. The company issued a new project with main goal to improve profits and cover operating expenses and as a result we see a large negative impact in new investments. * Financing activities exhibit a stationary trend over the past few years indicating the stable financial policy of the entity. * Adverse effects of exchange rates during the last two years indicating the risk the company runs because of the Yens depreciation to the U.S dollar and the Euro. 2.6. Stock Performance The companys share performance seems to move according to the index, with the trend to over perform it constantly. We can see the decline of the shares price, which started right before the end of 2008, following the global economic recession. At the turning point, which is in the beginning of 2009, we observe a relatively high trading volume, probably indicating the forthcoming upward movement. It is also really significant to point out the extreme high trading volume observed during the first months of 2010, followed by a new decline of the shares price. This reflects the problems that Toyota is facing nowadays. There is a considerable lack of trust from the market towards the company which is mainly caused by its severely damaged reputation and loss of quality. 3. Ford Motor Company 3.1 Overview of the company A . Company profile The group operates in two segments: Automotive and Financial Services. For the automotive segment which consists of Ford, Lincoln, Mercury and Volvo has a main operating activity in manufacturing, sale and service of component for cars and trucks. The Financial services segment is included of financing, insurance and leasing regarding to cars, trucks, industrial equipment, construction equipment and other activities. The company has operation in North America, South America, Europe, Africa and Asia- Pacific. B. Strategy Analysis  · One Ford The Company has initiated the new strategy called â€Å"One Ford† which has detail as follow: o ONE TEAM focuses the significant of team work in order to reach the automotive leadership. The measurement is satisfactory of business partners, employees, investors, and related companies. o ONE PLAN: The four-step plan has been established which composed of: balance between cost structure and revenue; develop new product follow customer preference; develop balance sheet status and finance the plan; and cooperation around the world to leverage companys resources. o ONE GOAL: That is â€Å"to create an exciting and viable company with profitable growth for all†. Ford has started the restructuring business process before the economic crisis which the Company has reduced the excess capacity, closed some unprofitable plants and lower excess workforce. In addition, Ford has improved the product line in term of higher quality, more safety, use less energy and more economic. * Affordable Fuel Economy: Focusing on deliver fuel efficiency engine to the market. For example, the 2010 Ford Fusion is now Americas most fuel efficient midsize sedan for both the hybrid and conventional gasoline models. * Electrification strategy: plan to bring pure batteryelectric vehicles, next-generation hybrids and a plug-in hybrid to market quickly and more affordably over the next four years. * Safety leadership: Ford got totaling 16 models picked from the Insurance Institute for Highway Safety which more than other brands. * EcoBoostâ„ ¢ Engine: delivers significant gains in fuel economy along with a great performance drive feel. C. Peer Group Fords peer group is Daimler AG, Fiat Spa ¸ Honda Motor Company Limited, Motors Liquidation Company, Nissan Motor Company Limited, Toyota Motor Corp and Volkswagen AG. D. Fords SWOT Analysis Strengths Weaknesses l Wide geographic Operate throughout the world and has a strong market in North America, Europe and Asia. Sales of each region of 2008 are 49%, 39% and 12% respectively. The well diversified market of ford reduces the risk of economic problem in specific area. l Brand royalty Ford has renowned reputation about quality and also owns other renowned brands such as Lincoln, Mercury and Volvo. l Quality car Ford owns totaling 16 models of car that rated as safety car by the Insurance Institute for Highway Safety l Product Recall Experienced many recalled products due to the quality of defective cruise control switch which may cause fire. Even though there is no fire cases reported but the Companys reputation is negative affected. l Negative operating result l Low gross margin GSKs long-term debt increased by 115.5% in 2008, which may lead to problems such as heavy interest payment, risk of having too little working capital and even increasing possibilities of bankruptcy. l Too much long-term debt This may lead to problems such as heavy interest payment, risk of having too little working capital and even increasing possibilities of bankruptcy. Opportunities Threats l Expanding market in emerging market Ford has a plan to expand its sale in the emerging market which has great buying power in the future. l Eco-friendly engine Ford has high reputation in the eco-friendly engine such as hybrid engine which has very promising market. l Fuel efficiency Ford found another opportunity in the market for fuel-efficient in small and middle car. l High competition Due to new competitor, lower demand and excess capacity. l Economic crisis Economic crisis and regression in USA where is the main market of Ford caused severe effect to the Company. 3.2. Key Financial Analysis Source: ThomsonFinancial Scaling Factor : 1,000,000 USD Currency: USD 12/31/08 12/31/07 12/31/06 12/31/05 12/31/04 Net Sales or Revenues 146,277.00 172,455.00 160,123.00 177,089.00 171,652.00 Operating Income 3,518.00 8,031.00 -8,167.00 7,010.00 10,681.00 Earnings Before Interest And Taxes (EBIT) -4,885.00 6,792.00 -6,689.00 9,354.00 11,669.00 Interest Expense On Debt 9,682.00 10,927.00 8,783.00 7,643.00 7,071.00 Net Income Available to Common -14,681.00 -2,764.00 -12,615.00 2,441.00 3,634.00 Total Assets 215,773.00 276,459.00 275,337.00 264,891.00 294,447.00 ST Debt Current Portion of LT Debt 63,972.00 61,052.00 62,456.00 59,904.00 66,433.00 Long Term Debt 90,716.00 107,478.00 109,593.00 94,428.00 106,540.00 Total Liabilities 231,889.00 269,410.00 277,643.00 250,812.00 277,525.00 Common Equity -17,311.00 5,628.00 -3,465.00 12,957.00 16,045.00  · Net sales decreased from 2007 about 15% as the economic crisis in the State which is the main market of Ford. The Company has had substantial losses from operation since 2006.  · Ford has high outstanding of long-term loan which may causes liquidity deficiency or bankruptcy if the Company still has continuously loss in the future.  · As a result of net losses from operation since 2006, Ford has had negative shareholders equity since then. 3.3. Multiples Analysis MONTHLY HISTORICAL MARKET PRICES Y2008 Y2007 Y2006 Y2005 Y2004 January 6.64 8.13 8.58 13.17 14.54 February 6.53 7.91 7.97 12.65 13.75 March 5.72 7.89 7.96 11.33 13.57 April 8.26 8.04 6.95 9.11 15.36 May 6.80 8.34 7.16 9.98 14.85 June 4.81 9.42 6.93 10.24 15.65 July 4.80 8.51 6.67 10.74 14.72 August 4.46 7.81 8.37 9.97 14.11 September 5.20 8.49 8.09 9.86 14.05 October 2.19 8.87 8.28 8.32 13.03 November 2.69 7.51 8.13 8.13 14.18 December 2.29 6.73 7.51 7.72 14.64 . 5 Year 5 Year VALUATION Y2008 Y2007 Y2006 Y2005 Y2004 Y2003 Growth Rate Average P/E Ratio (High) -1.36 -6.93 -1.41 12.94 9.63 34.66 -1.04 2.57 P/E Ratio (Low) -0.16 -4.75 -0.90 6.64 7.01 13.16 -1.01 P/E Ratio (Close) -0.35 -4.81 -1.12 6.77 8.13 32.00 -1.01 1.73 Price/Sales 0.04 0.08 0.09 0.09 0.18 0.18 -0.80 0.10 Price/Book Value -0.32 2.62 -4.14 1.14 1.74 2.62 -3.94 0.21 Price/Cash Flow 0.44 1.24 1.76 0.70 1.11 1.35 -0.67 1.05 Price/Working Capital 0.00 0.00 0.00 0.00 0.00 0.00 -0.16 7.78 TARenderChart.png * P/E ratio turned to be negative since net losses from operation since 2006 and also the market price has continuously decreased from 8.58 in the beginning of 2006 to 2.29 at the end of 2008. * P/B ratio had negative value in 2008 from the negative book value of Ford. 3.4. Companys performance Worldscope Currency: USD PROFITABILITY RATIOS 12/31/08 12/31/07 12/31/06 12/31/05 12/31/04 Return On Invested Capital 0.25 1.92 1.95 2.95 3.32 Operating Profit Margin 2.43 2.94 3.12 5.02 6.54 ASSETS UTILIZATION RATIOS Asset Turnover 0.63 0.60 0.59 0.59 0.58 Net Sales Pct Working Capital 10.62 6.21 5.68 11.06 41.64 LEVERAGE RATIOS EBITDA / Interest Expense -0.50 0.62 -0.76 1.22 1.65 LT Debt Pct Common Equity -76.88 233.49 316.38 1,268.12 1,229.66 LIQUIDITY RATIOS Quick Ratio 1.05 1.08 1.12 1.08 1.03 Current Ratio 1.21 1.25 1.30 1.25 1.19  · Profitability ratios do not show the good performance as Ford has had net loss from operation since 2006.  · Leverage ratios also go in the same trends as a result of negative equity and high outstanding balance of long-term loan.  · Liquidity ratios present that Ford still can generate cash to supply its working capital but if consider to the long-term debts Ford may cannot provide enough cash to support its debt payment since these ratios are still in the low range compared with its debt outstanding amount. 3.5. Cash flow analysis Source: ThomsonFinancial Scaling Factor : 1,000,000 USD Currency: USD 12/31/08 12/31/07 12/31/06 12/31/05 12/31/04 Net Cash Flow From Operating Activities -179.00 17,074.00 9,609.00 21,674.00 22,591.00 Net Cash Flow From Investing Activities 3,143.00 6,457.00 24,862.00 -7,462.00 8,567.00 Long Term Borrowings 42,163.00 33,113.00 58,258.00 24,559.00 22,223.00 Inc(Dec) In ST Borrowings -5,120.00 919.00 -5,825.00 -8,591.00 4,937.00 Reduction In Long Term Debt 46,299.00 39,431.00 36,601.00 36,080.00 36,021.00 Net Cash Flow From Financing Activities -9,104.00 -5,242.00 15,273.00 -20,651.00 -14,226.00  · The Company cannot generated sufficient cash from operation and had negative net cash flow from operation. Moreover the Company had to pay interest expenses for loans and had high net cash paid for financing activity. 3.6. Stock market performance  · Ford shares have been traded lower than SP500 since 2001 until 2010. Especially since 2006 that the operating results had continuous substantial losses. 4. Honda Motor Company Limited 4.1. Introduction Honda Motor is one of leading automobile manufacturers in the world. The company develops, manufactures and markets automobiles, motorcycles and power products. The company also provides financing services to the dealer and customer for the sale of products. Honda has global operations in areas including North, South and Central America, Asia, Middle East, and Europe with its headquarter at Tokyo in Japan. Strategy analysis Honda Motor has three strategies. They are â€Å"Staying Close to Customers†, â€Å"glocalization† and â€Å"five region strategy†. Staying close to customers mean the maintenance of the qualities of a small company, Provide value product with flexibility and efficiency as a small company does and maintain global reach and technology advantage as a large company does is the drive to the future growth of Honda. Glocalization means the effort to launch subsidiaries in regions that could best meet the demand of local customers and expand the subsidiaries as the local demand increases. Five region strategy requires the operations focus on five areas the world. They are North America, South America, Europe/Middle East/Africa, Asia/Oceania and Japan. The management decisions are served to suit the situation in different areas. The advanced RD capacity equips the Honda to provide flexible products to adjust the need of these regions. Business activities The company operates through four business segments: the automobile business, motorcycle business, financial services, and power products. The automobiles business division manufactures passenger cars, multi-wagons, minivans, port utility vehicle, sports coupe and mini vehicles. Hondas automobiles use gasoline engines of three, four or six-cylinder, diesel engines and gasoline-electric hybrid systems. Honda also offers alternative fuel-powered vehicles such as natural gas, ethanol, and fuel cell vehicles. In 2008, the company sold 3,925,000 units of automobiles. The motorcycle business produces a range of motorcycles, including scooters, electric-motor-assisted bicycles, sports bikes and large touring cycles. Hondas motorcycles use gasoline engines developed by Honda that are air or water cooled, two or four cycled, and single, two, four or six cylinder. In 2008, the company sold a total of 9,320,000 units of motorcycles. Honda offers a variety of financial services to its customers and dealers through its widespread finance subsidiaries. Hondas power products manufactures a variety of power products including power tillers, portable generators, general purpose engines, grass cutters, outboard engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers and lawn tractors (riding lawn mowers). Honda also manufactures the major components and parts used in its products, including engines, frames and transmissions. Peer Group The globalization of the Honda motor makes it face the global intense competition. The competitors include Ford Motor, Nissan Motor, Toyota Motor, Volkswagen etc.(in the automobile sector) and Yamaha Motor, Harley-Davidson etc.(in the motor vehicle industry). SWOT Analysis Strengths Weaknesses l Global diversification The company operates a total of 397 subsidiaries, and 104 affiliates all over the world. l Leading market position and good brand image Honda is one of the largest vehicle and motorcycle manufacturers over the world with strong brand strength. l Strong Research and Development capacity The large investment in RD could equip Honda the capability to differentiate itself in the intense competitive market. l Declining Market Share in Sector Evident of decline in unit sales and lost of market shares in the automobile industry. l Low employee productivity Honda has a weak proportion on the number of employees and the revenues. Opportunities Threats l Growing demand in Asian market Honda has taken measures to occupy the huge potential Asian market. l Growing demand in hybrid electric vehicles The companys emphasis on hybrid technology innovation will capture market trends as an opportunity to enhance its market share. l Global competition The competition would result in price pressure and thus reduce the profitability. l Tightening emission regulations The emission standards will cause Honda to occur more costs in product development, testing and manufacturing process design. 4.2. Key Financials Analysis Source: ThomsonFinancial Currency: JPY Scaling Factor : 1000000 JPY 31/3/2009 31/3/2008 31/3/2007 31/3/2006 31/3/2005 Sales 10,011,241.00 12,002,834.00 11,087,140.00 9,907,996.00 8,650,105.00 Operating Income 189,643.00 953,109.00 851,879.00 730,889.00 630,920.00 Net Income Available to Common 137,005.00 600,039.00 592,322.00 597,033.00 486,197.00 Total Assets 11,579,494.00 12,439,610.00 11,964,917.00 10,533,995.00 9,187,808.00 Total Liabilities 7,449,150.00 7,753,539.00 7,359,399.00 6,320,785.00 5,828,513.00 Common Equity 4,007,288.00 4,544,265.00 4,482,611.00 4,125,750.00 3,289,294.00 Net Cash Flow Operating Activities 383641 1126918 904525 576557 746624 l The operating income reduces dramatically, approximately 80% from the previous years result. This result is caused by the severe decline in the sales and the consequently increase in inventory cost. l Before 2009, all the s are in a healthy and steady upward trend. But in the fiscal year ended at 31st march 2009, the volumes all experienced a dramatic decline. They are caused by the sales plunge. l The declines trends are due to the economic recession caused by the financial crisis because the demand in Japan, US and Europe shrank. The automobile industry faces a severe challenge and most companies in the sector reported unsatisfactory results. 4.3. Multiple analysis 31/3/2009 31/3/2008 31/3/2007 31/3/2006 31/3/2005 Price To Earnings 30.7 8.6 10.3 Price To Book 1.0 1.1 1.6 1.5 Price To Cash Flow 4.6 4.2 6.8 Price To Sales 0.4 0.4 0.7 0.7 0.6 l Although the P/E ratio increases significantly, its not a good sign. The increase in P/E ratio is not due to the high expectation of the investors and the fundamentals such as growth opportunities. Instead, the soaring P/E is the result of the plummeting earnings to common shareholders. l The price to book ratio and price to sales declined in 2008 and 2009, indicating the declining