Types of Sedimentary Rock

Michael Jordan And The Transnational Marketing Of...

1. Are Michael Jordan and the transnational marketing of professional basketball connected in or responsible for directing the ambitions of Arthur and Williams? Why or Why not? I believe Michael Jordan can be held responsible for driving the ambitions of young athletes like William and Arthur. Jordan was not just an athlete, but he was a black American athlete who earned thirty million from playing with the Bulls and nearly sixty million form endorsements. Everyone who grew up to watch Michael Jordan play had aspirations to reach success alike his. According to LaFerber â€Å"Jordan personified not only the imaginative, individual skills that Americans dreams of displaying in a society that adores graceful and successful individualism, but the all-out completive spirit and discipline that Americans like to think drive their nation to the peak of world power† (LaFerber 28). Jordan could charm hundreds of millions of television viewers; while at the same time mesmerize crowds with his â€Å"Nijinskyesque† capabilities and his acrobatic slam-dunks (50). Even with all the success, ball players are still condemned by the public for choosing to dunk basketballs or catch football rather than becoming doctors, lawyers, or business leaders (28). Jordan is a hero who was one of the most successful advertising figures and one of the wealthiest athletes in the world. Because of Jordan, the NBA became a â€Å"television goldmine† in the US and globally (49). In addition of Michael Jordan, theShow MoreRelated The Globalization of Sports Essay2164 Words   |  9 Pagesincreases based on the increase in television and digital technologies. (Holt, 2007) The goal of the UCL was to increase revenue through a newly structured European club soccer league. The first way that UCL accomplished this was through centralized marketing. This was accomplished through selling the television rights as the UCL brand rather than allowing the clubs to individually sell the rights to the games. This increased the value of the television rights and in turn increased the profitabilityRead MoreCase Study9153 Words   |  37 Pagesthe business ac tivity being run right and at the same time to ensure their business activity will archived their objective, mission, and vision. An objective is important to the business activity same like McDonald’s corporation because it guide marketing action and at the same time used to make sure how well plan is working along the business activity. There are many interact to accomplish the goals of the organization by the levels. First, they must act in the best interests of, and fulfil theirRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. 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Discuss why ethical issues and professionalism affect HR management as a career field. ââ€"  ââ€"  ââ€"  ââ€"  ââ€"  3 HR TRANSITIONS HR Management Contributes to OrganizationalRead MoreManagement Course: Mba−10 General Management215330 Words   |  862 Pagesproductive cost reduction How to recognize when regular audits of quality compliance will not guarantee customer loyalty Businesses are growing more intricate and at warp speed. For example, consider the effects of venture capital financing, multiple marketing channel distribution, and entirely new patterns of employee recruiting, development, and training. In addition, product and services launches increasingly require more effective development initiatives. Rapidly increasing numbers of new offerings—fromRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 PagesSingapore Taipei Tokyo Editorial Director: Sally Yagan Director of Editorial Services: Ashley Santora Acquisitions Editor: Brian Mickelson Editorial Project Manager: Sarah Holle Editorial Assistant: Ashlee Bradbury VP Director of Marketing: Patrice Lumumba Jones Senior Marketing Manager: Nikki Ayana Jones Senior Managing Editor: Judy Leale Production Project Manager: Becca Groves Senior Operations Supervisor: Arnold Vila Operations Specialist: Cathleen Petersen Senior Art Director: Janet Slowik Art

Science in Our Daily Life Free Essays

There are many wonders of science. Science plays an important part in our daily life. It has made our life easier and more comfortable. We will write a custom essay sample on Science in Our Daily Life or any similar topic only for you Order Now Science is nothing but a systematic way of knowledge and living. Man’s qualities of curiously, alertness and keen observation of changes in natural happenings has given birth to science and scientific study. 2. Scientific Invention- Scientists have invented several things and machine – big and small – through observation of very simple events.Water boiling in a kettle has given us the idea of Railway engine. Falling of apple from a tree has helped Newton to discover the law of gravity. Electricity is the greatest invention of man. It serves us in hundreds and thousands of ways. It runs our trains, mills and factories. It cools and keeps our houses warm. It washes and irons our clothes. It gives us cool air and entertains us through Cinema, TV and radio, besides lighting our houses. Modern life is impossible without electricity. 3.Means of communication-Buses, cars, trains, ships and aeroplanes are the greatest contribution of science. Man can reach any part of the world within hours. He has even reached the other planets with the help of science. The day is not very far when man will be able to travel easily to other stars and planets. 4. Medicine and surgery-Science has not only cured man from terrible diseases, it has lengthened his age and made him healthier as well. In the field of surgery too, Science has done wonders.Heart surgery and heart transplantation have become ordinary things now- a-day. Science has controlled incurable diseases like T. B. , leprosy and Cancer too. 5. Atomic energy- With the discovery of atomic energy man has harnessed an inexhaustible source of energy. It can meet the demands of energy of the world for a long time. 6. Computers- computers are the great and wonderful inventions of science. Computers have helped man in several fields. They make complex and complicated calculations in a fractions of a second.They help in controlling several machines, rockets, TV stations and satellites. 7. Disadvantages of science – everything has two sides. Science too has a dark side. The invention and production of atom bombs and other dangerous weapons are a great threat to the existence of humanity in the world. These can destroy the world within seconds. Secondly, big factories, mills and other machines have polluted the atmosphere. It is becoming more difficult to get pure air and water. Pollution of atmosphere is also a great threat to the world at large. .How to minimize the disadvantages – by creating a healthy atmosphere we can keep the threat to humanity under control. We must have brotherly affections for all men and women. All threats of war must be ended. Secondly by planting trees and in other ways we can keep our atmosphere clean and healthy. 9. Conclusion – science is a great helper to modern man. It properly used it can make the life of man healthier and happier. Truly it is because if science that man is called the master of the world. How to cite Science in Our Daily Life, Papers

Policing history free essay sample

The purpose of this paper is to discuss the historical development of the police and it’s importance. Also the local, state, and federal law enforcement agencies under the jurisdiction of the Department of Homeland Security and their purpose. Lastly, we touch on the Issues Facing the Police Departments of today. Police agencies, whether it’s local state, or federal are expected to put the safety of all individuals regardless of their jurisdiction first at all cost. The Historical Development of the Police Department originated in London, England. It was a major component of the criminal justice system during the 18th Century Era under the English leaders. The citizens were responsible for their own safety and community. There was no training involved or pay for any services provided. During the 1840’s The Metropolitan America, focused on crime prevention verses post-crime detection and punishment. At that time officers were starting to get paid for their duties and 24 -hour services were provided. We will write a custom essay sample on Policing history or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The Frontier America Businessmen hired private security in efforts of reducing violence, theft and protecting their personal property. Bounty hunters, Vigilantes, self -proclaimed posses served as informal law enforcement in territories and Indian land (â€Å"Cji Interactive†,n. d. ). In the 1920’s Professionalism, policing focused more on law enforcement and crime control. While the social service elements were reduced and the political connections were rejected. Civil service systems were eliminated and police work became standardized, with specialized areas like juvenile and drug units (â€Å"Cji Interactive†,n. d. ). There are many different types of policing organizations in the United States and they all have different roles and functions at the state, local, and federal level. Federal employees roles differ because they are able to make an arrest in any state or county with no jurisdictions like the FBI, DEA, and Homeland security are some of the federal agencies. The Department of homeland security interacts with local, state, and federal enforcement agencies by the developing, gathering, accessing, receiving, and sharing of information. But, they are not required, to provide basic services of protection and criminal investigation (Walker and Katz, 2008,pg76). State employees such as, State troopers, Highway Patrol officers are not able to make any arrest outside of their state jurisdictions. The duties of the two departments consist of patrolling a specific area, conducting investigations, and enforcing traffic laws on highways. The state police are much like local police except their jurisdiction is much larger and they are broken up into specialized units, such as, investigative, aviation, and tactical units. Where the highway patrol officers mainly enforce traffic laws on the states roads such as, DUI’s, drug trafficking, and traffic accidents. Local employees such as Police, county Sheriffs are not allowed to make any arrest outside of their city or county jurisdiction. Local police officers are responsible for providing safety within the communities, providing information to the public, conducting investigations, patrolling the streets, and preventing crimes. â€Å"The main functions of patrol are the prevention and repression of criminal, the maintenance of the peace, and the protection of life and property† (Iannone, 1975 p5). In any American community with a police department, the patrol officer would be primarily responsible for the previously listed functions. Astoundingly the patrolman serves one of the most important roles in law enforcement. Even though a patrolman is at the bottom of the chain of command his duty is of great significance. Today’s issues in the police departments are the rise in crimes because of lack of jobs, bad cops with in the force, being understaffed, lack of trust among the public, and most of all the political involvement in the criminal justice system. If those particular issues are faced head on and solved accordingly, I truly feel things will improve for the better. There should be a more serious screening of the hiring process and if bad cops are found than they should be prosecuted. Increase of pay for policemen would most likely attract more good honest people for employment and that would help in the unstaffed issue. Continue to solve more cases effectively by arresting the right criminal the first time around saving tax payer money and increasing the faith back into our policeman of today. In conclusion, the historical development of our policing has changed tremendously. We have not quite mastered every aspect of the system and all its capabilities but we have created some important roles within our government. With the change of times so will the ways of policing and jurisdictions limits change. Later, we should see a lift in some areas of jurisdictions allowing local and state governing bodies to provide the additional support needed to prevent crimes and solve cases in more timely fashion. Importantly with our world changing more every day with technology and computers, one cant help but think of the changes to come as anything else but positive.

Article`S Analysis Essays - Black Sitcoms, The Cosby Show

Article`S Analysis In Jacqueline Bobo's article, The Color Purple: Black Women as Cultural Readers, it is discussed how black women create meaning out of the mainstream text of the film The Color Purple. In Leslie B Innis and Joe R. Feagin's article, The Cosby Show: The View from the Black Middle Class, they are explaining black middle-classed responses to the portrayal of Black family life on The Cosby Show. In their articles, Bobo, Innis and Feagin are investigating the representation of race, particularly African American race, in the mass media. However, these two shows are better portrayed than what was seen in the first article. This article Midnight Ramble portrays a much earlier media perception of African Americans. The information shows the first blacks in films, as well as the white actors who were painted up to portray the black characters. Midnight Ramble occurred between WWI and the 1950's. This, while not an excuse, does at least show that things have changed some. The chief concerns of the investigations of the articles, lie in how African Americans deal with the way these representations portray them individually and their social group as a whole. This paper's purpose is to compare the issues in each article and analyze the larger sociopolitical implications of these media representations. In Bobo's article, the chief concerns of the author are the savage and brutal depiction of black men in the film, black family instability, and the way that black women embrace the film and use their own reconstructed meaning of it to empower themselves and their social group(Bobo, 90-92). Film, as a medium, starts out with many potential limitations and problems when it comes to representing a whole race of people. No two people are exactly alike no matter what race they come from, so there is no one film that can represent all people. Unfortunately, many people believe that this is possible. Some believe that a certain depiction of black people characterizes all black people, which is certainly not the case. This is dangerous because it involves stereotyping and discrimination. The viewing public pays for movies, therefore, movie producers have to tailor their product so that the majority of viewers will enjoy, and agree with their product, so that the majority of viewers will enjoy, and agree with the ideas behind the film. The majority still, almost always means white America. Even African American based movies are made for white audiences. The representation of blacks in this type of environment does not always portray the real African American person. The film The Color Purple has been the center of controversy since it was made in 1985.many feel that the film is a bad portrayal of black family life, and that it is stereotypically portraying black men as evil and brutal who imprison and abuse women. The main purpose of Bobo's article was to find out why black women loved the movie so much and if they saw the film as helping or hindering their cause. Bobo did find that while many black women loved the movie, they found things inherently wrong with the way black men were portrayed. They did find the film positive, though, because it did portray black women in a more positive way than most other films. The women found power in the film and were able to identify with this search of power and their own identity. The Color Purple presented a new type of feminism to black women who were used to seeing black women characters portrayed as slaves, maids, or nannies. The women saw the film as a little bit of truth wrapped in a blanket of stereotypes (Bobo,102). They did believe that it was a story that needed to be told. The larger implications of The Color Purple are very serious. Black family life is presented as dysfunctional. Women are seen as fragile and easily abused by their men. And, even though it is suppose to be a middle classed family, it is portrayed as a lower classed family. In Innis and Feagin's article, the chief concerns of the authors are how black middle classed people are viewed on television, particularly, on The Cosby Show. Unfortunately, television presents many potential problems. This occur because

Financial Incentives in Health Care Essays

Financial Incentives in Health Care Essays Financial Incentives in Health Care Paper Financial Incentives in Health Care Paper In Delivering Healthcare in America, a book by Leiyu Shi and Douglas Singh, the author explains that although in the US healthcare the primary payer is the government, the systems has a disproportionate amount of health plans and insurance policies that only complicate the system. The current financial incentive policies in place that attempts to control the delivery of health care has also been seen to promote demand creation, where an artificial demand is prompted by healthcare providers who have financial gain in mind (Shi Singh, 2008). In an effort to curb the tendency of healthcare providers, who are operating under financial incentives, to require unnecessary care or too little care in the interest of financial gain, managed care programs have been introduced in the system. : These care programs are organized in such a way that care providers received a fixed salary as opposed to a financial incentive, affecting care provision in that the provider’s focus in removed from their financial gain.   According to Chaix-Couturier, Durand-Zaleski, Jolly and Durieux (2000), this system has greatly improved the provision of care, where the focus has moved from treating illnesses to promoting wellness. Similarly, Shi and Singh (2008) explains that in an effort to cut the cost of health care spending, the government has implemented heavy regulations that have cut reimbursements to health care providers, as a response care providers have by limiting inpatient care, promoting outpatient alternatives and creating new modes of healthcare delivery such as home health care and long-term care. In evaluating financial incentives in the healthcare system in relation to its effectiveness and its influence on type of care provided collection of data is not enough, there must be a theoretical evaluation based on the idea of professional practice. Chaix-Couturier, C.,   Durand-Zaleski, I., Jolly, D. Durieux, P. (2000). Effects of Financial Incentives on Medical Practice: Results from a Systematic Review of the Literature and Methodological Issues. International Journal for Quality and Healthcare volume 12:1,133-142. Shi, L. Singh, D. (2008). Delivering Healthcare in America: A Systems Approach. Sudburry, MA: Jones and Bartlett Publishers, Inc.

Verdict Of The Coroner's Inquest Essay Example | Topics and Well Written Essays - 2000 words

Verdict Of The Coroner's Inquest - Essay Example a dependent position." (Matthews, 2010) The law does draw a distinction between neglect and the negligence While essentially accidental, a failure by caregivers was the actual causative agent. The medical staff failed in their essential duties towards this patient, but health care was provided although the proper precautions were not taken to ensure that the prescribed treatment was administered correctly. It is noteworthy that the specialist pharmacist stated that no single person w as completely responsible for the death, in the capacity of sole culprit. ?he system was in place, not wholly effective.There were mistakes made by several parties. Yet it is clear that the mistaken dosage was clearly an error, per the professional diagnosis by Dr. R, where he described the dispensation of the medication as 'glaringly wrong', and a 'huge aberration.' Furthermore, investigations of medical findings pertaining to nodular sclerosing Hodgkin's disease will reveal that the condition is not in variably fatal. (van Spronsen et al., 2000) The inevitability of J's death is not to be taken for granted with absolute certainty. While a doctor had predicted the patient's present status to most likely result in mortality, the death of this individual was not unavoidable from this condition, nor should the consequences of his demise be viewed as less severe, on account of J's age or health status. Even should the physician's estimate of 27 months have been accurate, negligence is still apparent, and the patient was not entirely beyond hope. And while the Dr. has noted that J's condition was terminal, with a 27 month probable lifespan based on medical precedent for others suffering from nodular sclerosing Hodgkin's disease, the five-year survival rate ranges from 90 to 60%, depending upon... This essay analyzes that there are no apparent incentives that would suggest the error to be the result of deliberate action on the part of the patient, or on the part of the pharmacist. Thus negligence contributed to the accidental death of the patient, J. in the absence of actual malice, or evidence of deliberate denial of care and the narrative verdict is warranted in the case of J.  This essay analyzes that there are no apparent incentives that would suggest the error to be the result of deliberate action on the part of the patient, or on the part of the pharmacist. Thus negligence contributed to the accidental death of the patient, J. in the absence of actual malice, or evidence of deliberate denial of care and the narrative verdict is warranted in the case of J.   The purposes of this inquest require an exhaustive summary of the circumstances surrounding the death of the patient, ways in which that death might have been prevented and contributing factors. This verdict has a ttempted to give a factual account of the demise of J, in the absence of deliberate, premeditated actions that were intended to cause death. This would also C exclude the deliberate withholding of sustenance or treatment. The narrative is an accounting of events and contributing factors, but it is not appropriate in this instance to make a definitive attempt to assign blame in the criminal sense. The pharmacy staff could have double checked their assumptions. The chief pharmacist could have ensured that those under him operated in accordance with the proper protocols. Nurses at the rest home should have had an opportunity to at least question the dosage, should any of them have been familiar with the standard dosages of this sort of chemotherapy. The principal pharmacist should in all probability face sanction, but his actions were not deliberate, and an attempt was made to provide care albeit grossly incorrect.

The European Central Banks Targeted Inflation Rates Assignment

The European Central Banks Targeted Inflation Rates - Assignment Example Inflation is a rise in the price of soothing ds and services within an economy which results in a decline in the purchasing power of every subsequent unit of currency and this causes a loss in the real value of exchange within an economy. The main measure of inflation is the Consumer Price Index which provides an indication of the price level of consumer goods and services which are purchased by households, business firms, the government as well as the rest of the world (in case of an open economy). The CPI in the United States is defined by the  Bureau of Labor Statistics  as â€Å"a measure of the average change over time in the prices paid by urban consumers for a  market basket  of consumer goods and services.† This paper helps to provide an insight into the inflation that is currently taking place within the German economy. As per the current happenings within the German economy, the prices of goods and services naturally saw a hike due to the holiday season; this period mostly witnesses an increase in demand of goods and services which is met by an almost equivalent amount of supply. ... Most governments, especially in the European zone, had been able to recover well from the financial crisis that took place world over in 2008-2009 but the repercussions of that are lingering on as inflation in the same economies. German consumer prices nonetheless, harmonized to compare with other European Union countries, showed a rise of 2.4 percent on the year in December, down from 2.8 percent in the previous month. The following graph helps to show the Consumer Price Index in Germany and the changes that the same has undergone over a decade. The graph thus helps in interpreting the various changes within the German economy with respect to fluctuations in the Consumer Price Index. By understanding the ups and downs within the graph it may be understood that the demand and supply situation of a consumer base within Germany has never been a constant; it varies according to the variations of the need for goods. Thus, putting the same to thought, it may be comprehended that a hike is usually seen during the peak holiday season when the demand and supply of goods and services see a huge rise. Chart - CPI inflation Germany 2011 (yearly basis) Interest rates refer to the rates at which a borrower is able to borrow money in order to have greater purchasing ability. (Parkin, Michael) Since loans and smaller debts can be taken from the European Central Bank at lower rates, consumers have been able to increase their purchasing powers and have been thus causing the economy to slow down considerably. Due to increased spending by the consumers, the economy has witnessed growth and expansion which has almost led in the demand outpacing the supply.

Msc International Finance Essay Example | Topics and Well Written Essays - 1500 words

Msc International Finance - Essay Example Some of the reasons for this conclusion are: The Company operates in a large number of foreign countries; the currencies of these countries generally do not move in the same direction at the same time". On the other hand, many corporations with big universal networks, like IBM or Coca Cola, make wide use of derivative financial tools to hedge currency and thus increase share holder value. Financial or corporate risks are risks which stems due to the variations in prices. These risks are insidious, and directly or indirectly control the worth of a company. Great deregulation, competition at the international level, rates of interest and foreign exchange rate instability, along with commodity price separations which appeared from the late 1960s, compounded corporate vexations. This resulted in the altered significance of financial risk management in the years that followed (Allen and Santomero, 1998). Prior to derivatives markets were genuinely formulated, the mode of dealing with corporate gambles was few, and therefore financial risks were not within the scope of managerial control. The alternatives to which the firms resorted under such circumstances were to establish plants abroad so that the risk in currency exchange rates was minimised. Some firms adopted natural hedging by attempting to equalise the currency constitution of their assets and liabilities (Santomero, 1995). Allen and Santomero, (1998) state that â€Å"During the 1980s and 1990s, markets for derivative instruments have developed and grown at a breathtaking pace, and many corporations have become active participants in derivatives markets. Since then, the range and quality of both exchange-traded and OTC derivatives, together with the depth of the market for such instruments, have expanded intensively.† The growth of the derivatives market, dynamic risk management became a vital component of current corporate strategy. This is evidenced by the fact that

Analysis Of BMW Financial Position And Performance Accounting Essay

Analysis Of BMW Financial Position And Performance Accounting Essay This is a financial analysis report on BMW. Specifically, in the first part of this report, the financial position and performance of BMW for the four financial years from 2008 to 2011 will be firstly re-formulated, and the financial ratios for the company will be computed for analysis purposes. In order to perform a throughout financial analysis on the company, the trends of the financial ratios of BMW will be analyzed. Then, the financial statements of Audi will also be reformulated and the respective financial ratios for Audi will also be computed. The financial performance of Audi will be used to compare to the performance of BMW, to gauge the relative performance of BMW, as compared to one of the peer within the industry. Then, in the second part, BMWs forecasted value of equity per share at the end of the fourth financial (i.e., at FY 2011) will also be computed. Recommendations will be provided if the stock is a good investment choice, based on the various findings derived fr om this study. 1.2 Company Background Today, BMW is the worlds best-selling manufacturer of premium cars (Rauwald, 2012). BMW is founded in 1916; and is headquartered in Munich, Germany. Today, the company has more than 96,000 workforces at 24 production facilities in 13 countries and had penetrated to around 140 countries in the world (Avery Bergsteiner, 2011). BMW is also a company emphasizing on corporate social responsibilities (Stamoulakis Bridwell, 2009). Some of the competitors of BMW include Audi and Mercedes-Benz, whereby these companies has also been competing with BMW in important markets such as China (Rauwald Pearson, 2011a). Referring to Table 1 below, the various business segments BMW is operating within is shown. The major revenue contribution of the company comes from selling automobiles, and then followed by car financing activities. Table 1: The Various Business Segments BMW Operating Within Source: Worldscope Table 2 below however shows the various geographical regions BMW is operating within. As shown from the figure, the revenue generated from BMW sales in China is improving fast, while the revenue generated from the United States are stagnating. Indeed, prior to the financial crisis, United States is the biggest market for BMW (Rauwald, 2010). In contrast, as discussed in Muller (2010), BMW growth in recent years had largely driven by the increase of sales from emerging countries. This is a trend worth acknowledging in analyzing the current financial performance and to predict the future probable performance of the firm. Table 2: The Various Geographical Region BMW Operating Within Source: Worldscope Part I: Analysis of BMW Financial Position and Performance In Part I, the financial analysis on BMW will be performed through two major methods, firstly by reviewing the trends of the financial metrics of BMW and its competitor; and secondly, through the review of various financial ratios of BMW and to compare the ratios to the competitors ratios. 2.1 Trend Analysis A Review of BMW Past Performances 2.1.1 Profitability Ratios Based on Table 3 below, the various profitability ratios of BMW are shown. As measured by the Return on Assets, Return on Equity and Return on Invested Capital, BMW performance is generally well-performing in FY2007, but subsequently suffered to a minimal profitability in FY2008 towards FY 2010, before returning to superior profitability situation in FY2011. This is not surprising. In FY2008, the world financial crisis hit, and the automotive industry, which is cyclical in nature, are impacted adversely (Peterson, 2008). Indeed, the entire automotive industry fall into a turmoil as auto sales have plunged in the United State and Europe; while sales faced stagnation in previously booming markets like China and India (Rauwald, 2009b). In 2009, as discussed within Rauwald (2009a), BMW suffered losses due to recession as the sales and demand of luxury cars stalled. This is logical as in recessionary period, people cut down spending and luxury product manufacturers are often the most im pacted as the product demand are highly elastic. Then, qualitatively speaking, in FY 2010, the profitability improvement in BMW is due to improved efficiency significantly in all areas of the company (during the restructuring programme of BMW in the global financial crisis) as well as favourable exchange-rate fluctuations for the company (Rauwald, 2010). Next, Rauwald Schmidt (2012a) had however attributed the significant enhanced of BMW performance due to the companys comprehensive transformation, via cutting jobs and costs since 2007 (which include a cut of more than 8,100 jobs and reduction of more than 6 billion Euros in costs). This is also true as based on the employee per sales figure, the company is showing positive improvement as in recent years, more sales are generated per employee. Aside from that, it is also observed that the ratio of research and development to sales ratios has also been high, approximately around 5%. This is because BMW has been investing in research and development activities for further innovations in the future. For example, one of the recent innovations of BMW is development of eco-super car through the Vision Efficient Dynamics concept (Kable, 2010). Overall, based on the profitability ratios, a gross profit margin of 24% and the Return on Equity ratio of 19.2% in the recent years suggest that BMW is a well performing firm. Nonetheless, the fact that the firm could be seriously affected by recession also suggests that the business is cyclical, and therefore, the business risk faced by the firm and investors could be high. Table 3: Trends of Profitability Ratios of BMW Source: Worldscope 2.1.2 Asset Utilization Ratios Based on Table 4 below, the various asset utilization ratios, such as assets per employee, total assets turnover, inventory turnover and net sales to gross fixed assets are shown. Overall, there is a trend of improvement on these ratios. As discussed in Rauwald Schmidt (2012b), the strong performance of BMW is primarily contributed by the strength of the BMW, MINI and Rolls-Royce brands as well as improvements in efficiency. The improved of efficiencies can be noted as the assets per employees had increased (i.e., fewer employees as compared to the total assets), and the higher total assets and inventory turnover ratios (as the company is more able to generate more sales from every unit of asset). Table 4: Trends of Asset Utilization Ratios of BMW Source: Worldscope 2.1.3 Leverage Ratios Based on Table 5 below, the trends of use of debt financing and capital structure of BMW are shown. Overall, it can be noticed that BMW is a highly geared firm, as the long term debt within the capital structure has been consistently high throughout the past few years, i.e., at approximately 60%. Then, the portion of debt is also far outweigh the portion of equity, and as indicated by the total debt to common equity ratio, the total debt is approximately more than 2 to 3 times the total amount of equity. Overall, this suggests that BMW is heavily leveraged and the firm would face higher finance risks (such as solvency, liquidity and interest payment risks) in hard times. In contrast, the firm would make high return on equity for the shareholders due to use of leverage. Therefore, part of the reasons contributing to the high return on equity for BMW is through the use of high leverage within the firm. Table 5: Trends of Leverage Ratios of BMW Source: Worldscope 2.1.4 Liquidity Ratios Based on Table 6 below, the various liquidity ratios such as quick ratio and current ratio are shown. Overall, the liquidity position of BMW is marginally satisfactory, as the current and quick ratio fall around the range of 1. A more conservative ratio would be a current ratio of more than 2 times. Then, it is also noted that throughout the years, the proportion of receivables in the current assets is the highest, followed by cash, and then inventories. This is however unavoidable, as most of the customers would purchase the luxury cars on credit. Table 6: Trends of Liquidity Ratios of BMW Source: Worldscope 2.1.5 A Review of the Financial Performance Trends of BMW In order to form an overview of the financial performance of BMW in the past few years, the general profitability picture of BMW is presented in Figure 1. As shown below, prior to the crisis, BMW has been in a rising profit position for more than a decade (Avery Bergsteiner, 2011). However, unfortunately, the firm performance is badly affected during the global financial crisis (as discussed previously). During the period of financial crisis, the net income, return on equity and total common equity fall sharply. Nevertheless, upon the crisis, the profitability of BMW surged sharply. Avery Bergsteiner (2011) had found that one of the reasons contribute to fast BMW recovery from the global financial crisis in 2008 is due to sustainable leadership model and processes within the company. Therefore, this suggests the resiliency and the quality of the management within the firm as satisfactory and competent. Then, another trend worth discussing is that in the recent years, BMW car sales have been increasing significantly in the China market (Rauwald, 2012). Indeed, as discussed within Schafer (2011), much of the sales increases of BMW come from the growth of sales from China and India. Such a trend had contributed significantly as even in FY2011 and FY2012, BMW sales in Europe are facing challenges due to sovereign debt crisis (Rauwald Pearson, 2011a). Similarly, as discussed within Schafer (2011), the sales of BMW cars are slow in Europe due to the slow recovery within the region. Figure 1: Net Income, Equity, ROE and ROCI Trends of BMW C:Documents and SettingsHappyGoLuckyDesktopData Collectiondatareturn analysis chart.jpg Source: Worldscope 2.2 Peers Financial Ratios Comparisons In this section, in order to understand the financial position and the performance of BMW in the context of its industry as well as in relation to its peers, the various financial ratios of BMW, the peers and one of its leading competitors, namely Audi will be performed. 2.2.1 Growth Rates related Ratios As shown in Table 7, the various growth rates of BMW is compared to the peers and Audi. Firstly, it is noted that the growth of sales of BMW is slightly worse than the growth of Audi, but significantly worse off than the peers. In other words, both Audi and BMW are performing less satisfactorily as compared to the industry average. Therefore, while the financial picture of BMW is recovering and experiencing sharp upturns in FY2011, the firm is actually down perform as compared to the industry average. Table 7: Trends of Growth Rates of BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Key 1 Year Growth Rates Sales 1Yr Growth 13.80 22.22 24.42 Operating Income 1Yr Growth 53.21 47.75 57.09 Net Margin 1Yr Growth 32.92 104.88 36.41 Net Income 1Yr Growth 51.26 149.43 69.72 EPS 1Yr Growth 51.12 146.47 69.73 Total Assets 1Yr Growth 11.71 14.54 19.56 Equity 1Yr Growth 13.11 8.58 13.72 Key 5 Year Growth Rates Sales 5Yr Growth 7.03 15.17 7.20 Operating Income 5Yr Growth 16.39 23.44 14.71 Net Margin 5Yr Growth 3.92 7.76 18.21 Net Income 5Yr Growth 11.22 23.09 26.72 EPS 5Yr Growth 11.21 21.35 26.72 Total Assets 5Yr Growth 9.18 12.25 14.00 Equity 5Yr Growth 7.17 9.09 11.83 Source: Thomson One Banker As shown in Table 8, the figures of growth rates of several financial metrics are also computed, from the reformulated financial statements (as shown in Appendix at the end of this document). Overall, it can be observed that both Audi and BMW financial performance move in tandem, whereby the good performance of both company tend to be happen at the similar time. For instance, the growth of sales was negative for both of the firm at FY2009. Then, the growth rates of common shareholder equity also tend to be similar in terms of magnitude. For example, the growth rate of shareholder equity has been slight negative or positive at FY2009. However, the growth rate of operating income (after tax) for both the company tend to be less similar. This could be due to the operational management differences between the two firms. Table 8: Trends of Growth Rates of BMW to Audi Profitability R 2009 2010 2011 Growth Rate in Sales BMW -4.73% 19.33% 13.80% Audi -12.74% 18.77% 24.42% Growth Rate in OI (after tax) BMW 352.36% -20.66% 49.91% Audi -43.17% 128.13% 60.40% Growth Rate in NOA BMW 31.36% 13.02% -10.94% Audi 10.86% 47.64% -4.07% Growth Rate in CSE BMW -1.79% 15.94% 17.18% Audi 2.62% 9.30% 13.72% Source: Computed from Reformulated Financial Statement 2.2.2 Profitability Ratios As shown in Table 9, the profitability related ratios for BMW, peers and Audi are shown. Overall, the profitability margins of BMW would be slightly lesser than that of the Audi (particularly from the net margin perspective), but would be higher than that of the peers. This is because BMW operate within the luxury car segment, and therefore, the margins would be higher, as the majority of other competitors go for the volume for profitability. Therefore, the asset turnover of BMW and Audi is lower significantly than the peers, as the company focus on the luxury niche segment. Aside from that, it could be seen that the RD expense to sales ratio for BMW (and Audi) is higher than that of the peers. For this, one of the successes of BMW comes from investing heavily in extra production capacity and new technology constantly (Rauwald, 2012). Table 9: Profitability Related Ratios for BMW, Peers and Audi Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Asset Turnover 0.57 0.85 1.25 Pretax Margin 10.73 13.70 ROA 4.37 13.86 Return on Invest Cap 5.62 34.13 Reinvest Rate 13.25 37.59 35.68 R D to Sales 4.90 3.43 5.09 Gross Profit Margin 24.62 19.45 18.57 Operating Profit Margin 11.42 6.92 9.54 Pretax Margin 10.73 13.70 Net Margin 7.09 9.95 Source: Thomson One Banker Table 10 is about the profitability ratios of BMW and Audi, computed from the reformulated financial statements (as shown in Appendix at the end of this document). Overall, it can be seen that Audi would perform slightly better than BMW, although from the net profit margin perspective, BMW outperform Audi in FY2010 and FY2011. Then, it is also observed that the financial margins of BMW are more volatile as compared to Audi. Therefore, the risks (from the standard deviation perspective) for BMW are higher. Nonetheless, as discussed before, BMW is performing well in terms of cutting down the expense. This can be observed as the portion of administration costs to the sales ratio for BMW has been decreasing from FY2008 towards FY2011; whereby the ratio for Audi had been staying relatively constant (around 8-10%). This reaffirm that BMW had been slowly transform itself into a more efficient organization. Table 10: Trends of Profitability Ratios of BMW to Audi 2008 2009 2010 2011 Operating Profit Margin BMW 0.95% -0.09% 5.71% 8.03% Audi 5.27% 3.43% 6.59% 8.50% Sales Profit Margin BMW 1.95% 9.27% 6.17% 8.12% Audi 5.27% 3.43% 6.59% 8.50% Other Items Profit Margin BMW 0.00% 0.00% 0.00% 0.00% Audi 2.82% 2.86% 2.87% 2.90% Net Profit Margin BMW 1.25% 0.13% 5.23% 7.75% Audi 6.46% 3.52% 3.07% 5.91% Expense Ratio Admin Costs BMW 9.59% 9.91% 7.98% 7.83% Audi 9.47% 10.52% 8.57% 8.16% Expense Ratio Distribution Costs BMW -0.21% 0.10% 0.24% 0.50% Audi 0.88% 1.01% 1.06% 0.97% Operating Profitability (RNOA) BMW N/A 14.55% 9.55% 14.27% Audi N/A 12.48% 21.87% 30.03% Financing Profitability (RNFA) BMW N/A 0.70% 0.98% 1.37% Audi N/A 5.07% 5.54% 9.98% Source: Computed from Reformulated Financial Statement 2.2.3 Asset Utilization ratios Table 11 is about the asset utilization related ratios for BMW, Audi and peers. Overall, BMW down perform both Audi and the peers from asset turnover and inventory turnover perspective. Indeed, Audi perform best in utilizing assets in generating revenue. This shown that BMW may not be effective to the peers and Audi in leveraging on the assets to generate sales, and there are much room for improvement to significantly enhance the asset utilization ratios for the firm. Table 11: Asset Utilization Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Asset Turnover 0.57 0.85 1.25 Inventory Turnover 5.11 8.52 8.85 Source: Thomson One Banker 2.2.4 Leverage Ratios Table 12 is about the comparisons of leverage related ratios between BMW, Audi and peers. Obviously from the figure of the industry mean score, it can be noticed that most of the automotive manufacturers are highly geared. Indeed, as it is discussed that BMW is a firm that relied heavily on debt instrument for financing its operations, the industry average figure is even higher. In stark contrast, Audi is a lowly leveraged firm. Indeed, the use of debt is very minor within the firms capital structure. Table 12: Leverage Ratios Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Total Debt to Common Equity 245.94% 250.96% 9.39% LT Debt to Common Equity 133.58% 146.61% 0.17% LT Debt to Total Capital 56.96% 41.23% 0.16% Dividend Payout 17.46% 15.80% 0.00% Cash Dividend Coverage Ratio 7.13 21.08 #N/A Source: Thomson One Banker In Table 13 below, trends of leverage ratios of BMW and Audi, computed from the reformulated financial statements (as shown in Appendix at the end of this document) are presented. Similar to the discussions presented above, the financial leverage ratio of BMW is significantly higher than the case of Audi. However, from the operating liability leverage ratio perspective, the figures of the two firms are roughly comparable. Table 13: Trends of Leverage Ratios of BMW to Audi 2008 2009 2010 2011 Financial Leverage Ratio (FLEV) BMW 0.299 0.414 0.413 0.410 Audi 0.256 0.198 -0.128 0.054 Capitalization Ratio BMW 1.378 1.843 1.796 1.365 Audi 0.781 0.844 1.140 0.962 Operating Liability Leverage Ratio (OLLEV) BMW 1.093 0.663 0.645 1.011 Audi 1.479 1.381 1.058 1.268 Source: Computed from Reformulated Financial Statement 2.2.5 Liquidity Ratios In Table 14 below, the liquidity related ratios for BMW, Audi and peers are compared and presented. It is noted that the liquidity position of BMW, as measured from all of these ratios, i.e., quick ratio, current ratio, cash and equivalent to current assets ratio, account receivables days as well as inventories days held are not only down performing the peers, but also perform much badly as compared to the situation of Audi. Indeed, Audi is having strong liquidity position, thereby indicating that the firm is unlikely to suffer from any near term liquidity issues. Audi had also outperformed the peers significantly and based on the findings above that Audi is a lowly geared firm; the firm is financially conservatively managed. Table 14: Liquidity Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Quick Ratio 0.82 1.00 1.32 Current Ratio 1.04 1.28 1.60 Cash Equivalent to Current Assets 23.52 32.24 41.13 Accounts Receivable Days 136.25 102.07 61.22 Inventories Days Held 71.44 48.60 41.24 Source: Thomson One Banker 2.2.6 Summary Overall, while BMW is a profitable firm, and the firm is performing very well in FY2011 (i.e., experiencing sharp recovery) such performance can be largely attributed to the industry wide recovery situation around the world. However, the performance of BMW would seem to be lacking, more risky and less efficiently, effectively and conservatively managed when compared to the peers. This is particularly when compared to Audi, as Audi had found to be having much stronger and yet conservative financial position and performance. It can be summarized that BMW performed unsatisfactorily as compared to the other automotive manufacturers. Part II: Valuation In this section, valuation of BMW stock will be performed via the discount cash flow model. In order to compute the company value via this method, the dividend distributed to the investors will be treated as the proxy of the cash flow to the investors. Currently, the latest dividend payment from BMW is EUR 2.30 (Figure 2, the indicated dividend payment from the management). Then, from Figure 3, the growth rate of the dividend yield/ payment (i.e., the growth rate of the cash flow of the firm) range from 0.23% (i.e., 3-years growth rate) to 1.01% (i.e., 3-years growth rate). Theoretically, the longer term growth rate should be used. However, the global financial meltdown in FY2008 to FY2009 would be considered as anomalies (the black swan event), and therefore, it is unfair to take the three year average figure for the firm. Therefore, conservatively, a growth rate of 0.5% would be assumed to represent the growth rate of dividend payment for the investors. Then, in order to compute th e required rate of return for BMW, the risks pertaining to the firm will be considered. As BMW is found to be highly geared, a required rate of return of above 10% would be necessary. Therefore, conservatively speaking, a required rate of return of 15% is justifiable. Hence: D = EUR 2.30 g = 0.5% r = 15% Firm value = D (1+g) (r-g) = 2.3 (1+0.005) (0.15-0.005) = 2.3 (1.005) (0.145) = EUR 15.94 Therefore, a very conservative firm value for BMW from the dividend discount model (i.e., Gordon Growth Model valuation method) is only EUR 15.94. This is even much lower than the analysts target price of EUR 75.60 (Figure 2). Therefore, from the valuation method applied, it is unwise to purchase into BMW stock. Figure 2: Estimates from Analyst C:Documents and SettingsHappyGoLuckyDesktopUK0538 Advanced financial statement analysisData Collectiondatathomson forecast report.jpg Source: Thomson Financial Figure 3: Estimates from Analyst C:Documents and SettingsHappyGoLuckyDesktopUK0538 Advanced financial statement analysisData Collectiondatastock valuation.jpg Source: Thomson Financial In Table 15 below, the price multiple of BMW, peers and Audi is shown. It is shown that BMW stock prices is valued at 10 times earnings multiple, as compared to Audi (which is only 5 times earnings multiple). Indeed, from the other two yardsticks, namely price to book value and price to cash flow ratios, BMW stock is valued more expensively. Then considering that the financial position and performance of BMW is significantly lower than the peers, and particularly, to Audi, the high price multiples of BMW would justify a sell comment on the stock. Table 15: Market Value Related Ratios for BMW, Audi and Peers Company BMW AG Peer Mean Audi AG Last Fiscal Yr End Date 12/31/2011 12/31/2011 Current P/E Ratio 10.17 5.15 Price/Book Ratio 1.84 1.33 1.81 Price/Cash Flow Ratio -11.10 1.94 3.34 Source: Thomson One Banker Then, from the qualitative perspective however, looking forward, competition between automotive manufacturers in China could be intensifying and this could affect how BMW compete with other car manufacturers (Rauwald, 2012). However, some analysts had also been optimistic as they anticipate growth in markets such as China and Russia which would contribute to higher BMW sales in these emerging regions (Rauwald Schmidt, 2012a). Then, as discussed in Reed Schafer (2010), the rise of sales in China is primarily due to the branding and the quality of the cars sold by BMW. Therefore, the growth story of BMW in emerging regions would be in doubts, as the competitors, such as Audi has also strong performance in these emerging regions. Therefore, from a more conservatively perspective, it is reasonable to conclude that even it is expected that BMW could profit from the emerging countries, which would also not justify the high valuation of the stock. Hence, it is not rational to purchase i nto the stock of the company at the current price. In contrast, investors seeking exposure to automotive industry would be better to purchase the stock of Audi, as the firm is financially conservatively and operational effectively managed, and yet, having a low price multiple. References Avery, G. C., Bergsteiner, H. (2011). How BMW successfully practices sustainable leadership principles. Strategy Leadership, 39(6), 11-18. Kable, G. (2010). Bolts from BMW. Autoweek, 60, 12-12. Muller, J. (2010). BMWs push for made-to-order cars. Forbes, 1. Penman, S. H. (2010). Financial Statement Analysis and Security Valuation, 4th Edition. McGraw-Hill Irwin, New York. Peterson, T. (2008). BMW 135i: High performance, low price. Business Week (Online). Rauwald, C. (2009a). Corporate news: BMW posts loss as unit sales fall 21%. Wall Street Journal. Rauwald, C. (2009b). Corporate news: BMW swings to $1.24 billion loss as luxury-car sales plunge. Wall Street Journal. Rauwald, C. (2010). Luxury demand drives BMW results. Wall Street Journal (Online). Rauwald, C. (2012). BMW, Porsche profits rise on higher sales. Wall Street Journal (Online). Rauwald, C., Pearson, D. (2011a). Corporate news: BMW cranks up profit view luxury-auto maker gains on emerging-market demand as European woes damp peugeot-Citroen. Wall Street Journal (Online). Rauwald, C., Pearson, D. (2011b). BMW raises sales, profit forecasts. Wall Street Journal (Online). Rauwald, C., Schmidt, N. (2012a). Managing careers: For BMW, a tough transformation pays off. Wall Street Journal (Online). Rauwald, C., Schmidt, N. (2012b). For BMW, a tough transformation pays off; no grand prix cars, but pole position in luxury market gives CEO reithofer a happy start to the new year. Wall Street Journal (Online). Reed, J., Schafer, D. (2010). Demand for luxury powers BMWs China sales. Financial Times. Schafer, D. (2011). BMW receives sales turbo-charge from China and India. Financial Times. Stamoulakis, D., Bridwell, L. (2009). BMWs approach to global warming and environmental management: Corporate social responsibility or greenwashing? Competition Forum, 7(1), 98-106. Subramanyam K. R., Wild, J. J. (2009). Financial Statement Analysis, 10th Edition. McGraw Hill, New York.

Japanese Auto Manufacturing :: essays research papers

The Road to Japanese Automobile Manufacturing Dominance Japan was devastated at the end of World War Two. Although the automobile industry wasn’t as heavily hit as some of the other industries, there were some severely hindering effects on production. Steel and other materials were difficult to obtain causing production to drop 50% by the end of the war (Chao, 1997). Now they are the leading automobile manufacturers in the world. Japan is the epitome of car manufacturers.   Ã‚  Ã‚  Ã‚  Ã‚  Japan had a big ditch to dig themselves out of. First of all to enter into any kind of production they had to get permission from the General Headquarters of the Allied Powers of G.H.Q. This entity regulated trade of the Japanese until 1955. They allowed for as many as thirty manufacturers to enter the production of trucks in 1945, and in 1947 as the ambitions of the industry increased they allowed manufacture of small passenger cars (although limited to only 300 cars per year). With such small potential for production there was mass unemployment and the manufacturers had to take on the repair of their own damaged vehicles.   Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Consequently, in 1949 with the tight government finance and banking policies adopted (to suppress inflation) Japan was hit with a massive recession. It was a real blow to the automobile industry; manufacturers had to cut wages and layoff workers. From 1949 to 1950 employment in the automobile industry was slashed by 23% (6,200 people). The labor unions confronted the management of the car makers, and all the manufacturers were hit with the longest strikes in Japanese history.   Ã‚  Ã‚  Ã‚  Ã‚  Japan struggled through the early 1950’s, and in 1955 the â€Å"Post-War Era† officially ended. With the G.H.Q. out of the picture the Ministry of Transportation announced the People’s Car Plan, which gave Japanese auto manufacturers an excellent opportunity to develop new original cars of their own. The plan was eventually be scrapped because the manufacturers thought that proposal’s requirements would be â€Å"impossible to manufacture with the performance and sales price requested† (Shimokawa, 1994). The People’s Car Plan did influence competition to market new products and it gave primarily three-wheeled vehicle makers a way to enter the four-wheel market. Suzuki, Fuji (Subaru), Mitsubishi, and Toyo Kogyo (Mazda) all entered small cars into the market almost immediately.  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Moreover, the first two small cars that really made a name for themselves were the Toyota Corona and the Nissan Bluebird. Of course 90% of these cars were used for business (Rinehart, 1997).