Southwest Airlines Case Analysis Essay Example

Southwest Airlines Case Analysis Paper Southwest History 1966: Rollin King marched into Herb Kelleher’s law office with a plan to start a low-cost/low-fare airline that would shuttle passengers between San Antonio, Dallas, and Houston. Thought of this idea because businessmen were complaining about the commute. 1967: Kelleher filed papers to incorporate the new airline and submitted an application to the Texas Aeronautics Commission for the new company to serve Dallas, Houston, and San Antonio. 4 year legal and regulatory battle from rival airlines 1971 (January): Lamar Muse brought in as the CEO to get operations under way. Boeing supplied three new 737s, discounted price by $1 million (5gt;4) and financed 90% of the $12 million deal. 1971 (June): Southwest initiated its first flights with a schedule that soon included 6 round-trips between Dallas and San Antonio and 12 round-trips between Houston and Dallas. Disappointing results despite only $20 fare compared to rivals $27-28. Their funds stretched thin and they were putting fuel on Muse’s credit card. Employee morale was high. 1971 (November): Muse came up with idea to offer $10 fare to passengers on the Friday-night Houstongt;Dallas flight. The flight sold-out without advertising. Muse came up with a two-tier on-peak and off-peak pricing structure. BEGINNING OF THE NO-LAYOFF POLICY, they have never laid off or furloughed any employees. 1972: Moved flights in Houston from the newly opened Houston Intercontinental Airport to the abandoned Houston Hobby Airport (for money and location reasons). 1973: Reported its first-ever annual profit in 1973. Introduced a profit-sharing plan for senior employees (first in the airline industry) -Rest of the 1970s consisted of legal battles- 1977: Listed on the NYSE 978: Muse resigned; Howard Putnam became CEO after Kelleher turned down the offer. 1979: First route outside Texas (New Orleans) 1981: Putnam resigned; Kelleher became CEO. Southwest had 27 planes, $270 million in revenues, 2100 employees, and 14 destination cities. Kelleher did not run from his office but among the troops. 1983: 3 additional Boeing 737s purchased; Southwest flies more than 9. 5 million passengers. 1984: Sout hwest is ranked first in customer satisfaction among the U. S. airlines for the fourth straight year. 1985: Service begins to St. We will write a custom essay sample on Southwest Airlines Case Analysis specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Southwest Airlines Case Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Southwest Airlines Case Analysis specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Louis and Chicago Midway. Southwest named the Ronald McDonald House as its primary charity (a pilot lost his daughter to leukemia). 1986: Southwest flies more than 13 million passengers. 1988: Southwest becomes the first U. S. airline to win the Triple Crown (best on-time record, fewest reports of mishandled baggage, and fewest complaints per 100,000 passengers) for a single month. 1990: Revenues reach $1 billion; only major U. S. airline to record both an operating and a net profit. The Culture Committee was formed to promote â€Å"Positively Outrageous Service. † 992: First annual Triple Crown; second-year running they were the only major U. S. airline to record both an operating and a net profit. 1993: Begins operations on the East Coast and wins second annual Triple Crown; revenues exceed $2 billion and profits exceed $100 million. Third consecutive year of being the only U. S. airline to record both an operating and net profit. 1994: Introduced ticketless travel in four c ities; third Triple Crown; acquires Morris Air (Salt Lake City) 1995: Ticketless travel becomes available system-wide; fourth consecutive Triple Crown. 996: Service to Florida begins; fifth consecutive Triple Crown; ~$740,000 to RMDH 1997: Service begins to Southwest’s 50th city; more than 50 million people fly Southwest. 1998: Named by Fortune as the best company to work for in America 1999: Service is added to three more cities. 2000: # of passengers exceeds 60 million; revenues surpass $5 billion; 28th consecutive year of profitability; 9th consecutive year of increased profits; becomes the 4th largest U. S. airline in terms of passengers carried. 2001: 30th Consecutive year of profitability; only U. S. airline to report a profit; record 64. million passengers 2001 (June): Kelleher stepped down as CEO but stayed chairman of the Board. James Parker and another trusted protege became CEO. 2002: Ranks second among companies across all industry groups (first in airlines) on Fo rtune’s 2002 list of most admired companies. Began changing the look of its planes. 2004: Parker retired unexpectedly. Gary Kelly appointed CEO. 2005: Becomes 2nd largest U. S. airline in terms of passengers carried. First significant blemish on Southwest’s safety record (overshot runway in Chicago). 2006: A record 96. 3 million passengers fly Southwest. 007: Becomes the largest U. S. airline in terms of passengers carried; profitable for the 35th consecutive year; named to Business Week’s first ever â€Å"Customer Service Champs† list and is voted â€Å"Overall Best Airline in the U. S. They introduced the Business Select fare to attract economy-minded business travelers. Did an â€Å"Extreme Gate Makeover† to improve experience. Ticketless travel accounted for more than 95% of all sales. Operation Kick Tail (customer service initiative) launched. 2008: More people were flying Southwest than any other U. S. airline and they were the only U. S. Air carrier that was consistently profitable and had been since 1973. Southwest did not choose to use a la carte pricing like other airlines; they stuck with an all-inclusive fare. Mission statement was revised to highlight customer service commitment. Belated Aircraft Inspections further tarnish Southwest’s reputation (placed three employees on leave). 2008 (May): Kelleher resigned as chairman of the board. Kelly assumed chairman of the board, president, and CEO. Southwest Financial and Statistical Background Key Financial Ratios | 2005| 2006| 2007| 2008| Gross Profit Margin| 31. 2%| 30. 54%| 26. 63%| 22. 07%| Operating Profit Margin| 9. 56%| 10. 28%| 8. 02%| 4. 07%| Net Profit Margin| 6. 38%| 5. 49%| 6. 54%| 1. 61%| Return on Total Assets| 3. 46%| 3. 71%| 3. 85%| 1. 27%| Return on Stockholders Equity| 7. 25%| 7. 74%| 9. 29%| 3. 59%| Earnings Per Share| 61. 00%| 63. 00%| 85. 00%| 24. 00%| Current Ratio| 94. 07%| 90. 09%| 91. 84%| 94. 55%| Quick Ratio| 90. 18%| 89. 37%| 87. 34 %| 88. 80%| Working Capital| -$228| -$286| -$395| -$153| Routes and Flight Data May 2008 serves 52 U. S. cities. Currently serves 69 U. S. cities. Top 10 Airports: May 2008| Current| Las Vegas| Las Vegas| Chicago Midway| Chicago Midway| Phoenix| Phoenix| Baltimore/Washington| Baltimore/Washington| Oakland| Denver| Houston Hobby| Houston Hobby| Dallas – Love Field| Dallas – Love Field| Los Angeles| Los Angeles| Orlando| Oakland| San Diego| San Diego| Aircraft Fleet: | May 2008| Current| Total A/C: | 527| 544| Total Seats:| 71,824| 74,153| †¢Southwest tested Wi-Fi on four of there airplanes, and in late 2009, made the decision to begin installing satellite-delivered broadband from their Wi-Fi provider, Row 44, on the rest of their fleet. Southwest estimates that heir entire fleet will be Wi-Fi enabled in the 2013 timeframe. Number of Domestic Passengers by Air Carrier | 2000| 2005| 2006| 2007| Q1 2008| Southwest| 15. 32%| 19. 63%| 21. 68%| 21. 95%| 23. 21%| American| 14. 42%| 17. 16%| 17. 29%| 16. 48%| 16. 64%| Delta| 20. 68%| 17. 22%| 14. 29%| 13. 26%| 13. 43%| United Air| 15. 30%| 12. 25%| 12. 88%| 12. 14%| 11. 61%| US Airways| 11. 96%| 8. 22%| 7. 18%| 11. 17%| 11. 26%| Northwest| 10. 23%| 10. 36%| 10. 16%| 9. 43%| 9. 09%| Continental| 7. 73%| 7. 32%| 8. 05%| 7. 99%| 8. 18%| Jet Blue| 0. 24%| 3. 21%| 4. 07%| 4. 42%| 6. 59%| America West| 4. 11%| 4. 63%| 4. 41%| 3. 6%| 0. 00% *| * America West data is included with US Airway starting in 2007 due to merger. Operating Revenues of Selected US Airlines, 2000-2007 (in billions) | 2007| 2006| 2005| 2004| 2003| 2002| 2001| 2000| American| 1st$22. 9| 1st$22. 5| 1st$20. 6| 1st$18. 6| 1st$17. 4| 1st$15. 9| 2nd$15. 6| 2nd$18. 1| United| 2nd 20. 1| 2nd19. 3| 2nd17. 3| 2nd15. 7| 3rd13. 4| 2nd13. 9| 1st16. 1| 1st19. 3| Delta| 3rd 19. 2| 3rd17. 5| 3rd16. 5| 3rd15. 2| 2nd14. 3| 3rd12. 4| 3rd13. 2| 3rd15. 3| Continental| 4th 14. 2| 4th13. 1| 5th11. 1| 5th9. 9| 5th7. 3| 5th7. 4| 6th8. 2| 5th9. 4| Northwest| 5th 12. 5| 5th12. 6| 4th12. | 4th11. 3| 4th10. 1| 4th9. 2| 4th9. 6| 4th11. 0| US Airways| 6th 11. 7| 6th11. 6| 7th7. 2| 6th7. 1| 6th6. 8| 6th6. 9| 5th8. 3| 6th9. 2| Southwest| 7th 9. 9| 7th9. 1| 6th7. 6| 7th6. 5| 7th5. 9| 7th5. 5| 7th5. 6| 7th5. 7| America West| *| *| 8th3. 4| 8th2. 5| 8th2. 2| 8th2. 0| 8th2. 0| 8th2. 3| Total| 110. 5| 105. 7| 96| 86. 8| 77. 4| 73. 2| 78. 6| 90. 3| *America West merged with US Airways in 2005. Major U. S. Airlines Fuel amp; Oil and Total Operating Expenses Per Passenger Revenue Miles Southwest Airlines had the 4th lowest fuel cost in 1995, 2nd lowest in 2000, and the lowest fuel cost from 2006 to Q1 2008 Southwest Airlines had the 2nd to the lowest total operating expenses in 1995 and the lowest from 2000 to Q1 2008. | 1995| 2000| 2005| 2006| 2007| Q1 2008| Fuel amp; Oil| | | | | | | America West| 1. 40| 2. 18| 3. 32| 3. 85| 3. 87| | American Airlines| 1. 53| 2. 04| 3. 67| 4. 15| 4. 34| 5. 75| Continental Air Lines| 1. 67| 2. 18| 3. 42| 3. 82| 3. 97| 5. 26| Delta Air Lines| 1. 70| 1. 73| 3. 68| 4. 18| 4. 32| 5. 67| Northwest Airlines| 1. 73| 2. 35| 4. 01| 4. 56| 4. 47| 5. 94| Southwest Airlines| 1. 56| 1. 95| 2. 44| 3. 37| 3. 71| 4. 54| United Air Lines| 1. 51| 1. 98| 3. 53| 4. 11| 4. 26| 5. 5| US Airways| 1. 59| 2. 44| 3. 89| 4. 30| 4. 45| 5. 63| | | | | | | | Total Operating Expenses| | | | | | America West| 10. 57| 12. 15| 14. 50| 16. 15| 15. 58| -| American Airlines| 14. 25| 14. 48| 15. 18| 15. 55| 15. 98| 18. 18| Continental Air Lines| 12. 87| 13. 70| 16. 38| 16. 51| 16. 56| 18. 81| Delta Air Lines| 13. 53| 12. 85| 16. 68| 17. 50| 17. 63| 20. 95| Northwest Airlines| 12. 77| 12. 99| 17. 40| 16. 20| 15. 90| 19. 25| Southwest Airlines| 10. 91| 10. 91| 11. 21| 12. 03| 12. 53| 13. 85| United Air Lines| 12. 58| 14. 65| 15. 35| 16. 07| 16. 27| 19. 13| US Airways| 17. 73| 19. 8| 18. 49| 20. 03| 20. 14| 21. 45| Operating Expenses per Average Seat Mile (Available Seat) | 1995| 2000| 2005| 2006| 2007| Compensation| 33. 95%| 36. 35%| 40. 62%| 37. 39%| 35. 38%| Fuel amp; Oil| 14. 29%| 17. 34%| 19. 63%| 26. 25%| 28. 02%| Maintenance| 8. 49%| 8. 15%| 6. 46%| 5. 80%| 6. 81%| A/C Rentals| 6. 65%| 4. 27%| 2. 36%| 1. 93%| 1. 76%| Landing Fees| 6. 22%| 5. 69%| 6. 58%| 6. 02%| 6. 15%| Depreciation| 6. 08%| 6. 08%| 6. 83%| 6. 36%| 6. 15%| Other Expenses| 24. 33%| 22. 12%| 17. 52%| 16. 25%| 15. 71%| 1. Is there anything that you find particularly impressive about Southwest Airlines? One of the most impressive facets about Southwest Airlines is the foundation the airline was built on and how that foundation remains present after 40 years, â€Å"true grit. † Southwest Airlines fought to be in existence, remain in existence, and today fights to remain a lean and fearless competitor by providing a low-cost, low-price and no-frills product. Southwest Airlines’ tenacity is very distinctive and they are proud to show it through their marketing campaigns, such as, â€Å"Nobody Is Going to Shoot Southwest Airlines Out of the Sky for a Lousy $13. † The value Southwest Airlines has for its employees is impressive. The low employee turnover rate and large number of applicants is a strong indicator that this value is real and not lip service. Another interesting fact in regards to employees at Southwest is that in 40 years there have only been four CEOs, with 20 of those years being one individual, Herb Kelleher. 2. What grade would you give Southwest management for the job it has done in crafting the company’s strategy? What is it that you like or dislike about the strategy? Does Southwest have a winning strategy? In respect to Southwest’s efforts in crafting the company’s strategy, we feel that the company deserves an A for its relentless efforts to stay true to its low-cost provider strategic intent and for its ability to be able to achieve a sustainable competitive advantage. As customers, we feel like the low prices are an extremely likeable aspect of the strategy. It is also important to mention that their customer service level is strong and leaves each passenger feeling a connection with the Southwest brand. However, we dislike the lack of creature comforts and the cattle-like approach to boarding. Southwest does maintain a winning strategy. One of the most important concepts that Southwest developed and grasped in their strategy was that it was not enough to be a low-cost provider; they needed to have a sustainable competitive advantage. The company addressed this by stressing that through the low-cost provider strategy, customer service, and customer satisfaction, they are able to achieve a sustainable competitive advantage, which is demonstrated in their financial and statistical data. A manager from Southwest stated â€Å"our fares can be matched; our airplanes and routes can be copied. But we pride ourselves on our customer service. † Although no strategy is without fault or mistake, Southwest has managed to significantly make its strategy into one that can thrive in both a short and long-term vision. With its focus on ways to keep cost low for customers, from paperless tickets to special programs for frequent flyers, the company has been able to effectively provide service to their customers and hold true to their mission. 3. What are the key policies, procedures, operating practices, and core values underlying Southwest’s efforts to implement and execute its low-cost/no frills strategy? Southwest has many key policies, procedures, operating practices and core values that help to implement and execute its low-cost/no frills strategy. Fare Structure: Southwest employs a relatively simple fare structure featuring low, unrestricted, unlimited, everyday coach fares, along with even lower fares available on a restricted basis. Route System: Southwest did not use the hub-and-spoke route systems like their rivals; instead their route system was carefully designed to concentrate on flights between pairs of cities 150-750 miles apart where there was enough passenger traffic that Southwest could offer a sizable number of daily flights. Relationship with Boeing: Southwest operates only one type of aircraft (Boeing 737s) to minimize the size of spare parts inventories, simplify the training of maintenance and repair personnel, improve the proficiency and speed with which maintenance routines could be done, and simplify the task of scheduling planes for particular flights. With their loyalty to Boeing they were able to acquire new aircrafts at favorable prices. Ticketless Travel Option: Southwest was the first major airline to use ticketless travel which eliminated the need to print and process paper tickets. They were also the first to allow customers to make reservations and purchase tickets at their website; this allowed them to bypass the need to pay commissions to travel agents for handling the ticketing process and reducing staffing requirements at reservation centers. Congestion Avoidance: Southwest de-emphasized flights to congested airports which helped them produce better-than-average on-time performance and reduce the fuel costs associated with sitting in line on taxiways or circling waiting for clearance to land. It also allowed them to avoid the higher landing fees and terminal gate costs at such high-traffic airports. No Reserved Seats Policy: To economize on the amount of time it took terminal personnel to check passengers in and to simplify the whole task of making reservations, Southwest stopped assigning seats. No Cleaning Crew: Southwest flight attendants were responsible for cleaning up trash left by deplaning passengers. No First-Class: Southwest does not entertain a first-class section in any of its planes nor do they entertain frequent fliers at fancy clubs in terminals. They also do not serve meals in order to make reprovisioning planes simple and quick. Bags Fly Free: Southwest does not charge a baggage transfer service fee. Passengers pick up their luggage themselves. Software Updates: They implemented use of new software that significantly decreased the time required to generate optimal crew schedules and help improve on-time performance. Cloth to Leather: Southwest concluded that an all-leather interior would be more durable and easier to maintain, more than justifying the higher initial costs. Fuel Hedging: Southwest was a first-mover to fuel hedging and derivative contracts to counteract rising prices. Their fuel hedging strategy had produced savings of about $3. 5 billion since 1998. Vertical Winglets: To enhance the performance and efficiency of the fleet, they added vertical winglets on the wing tips to reduce lift drag, allow aircraft to climb more steeply and reach higher flight levels quicker, improve cruising performance, extend engine life and reduce maintenance costs, and reduce fuel burn. New Technology: Southwest is investing in technology and software to replace its ticketless system and its back-office accounting, payroll, and human resource information systems. This will enhance data flow, operational efficiency, and customer service capability. 4. What are the key elements of Southwest’s culture? Is Southwest a strong culture company? Why or why not? What problems do you foresee that Gary Kelly has in sustaining the culture now that Herb Kelleher, the company’s spiritual leader, has departed? The key element of Southwest’s culture is the total employee benefit package, from compensation to training and development to promotion to retirement. Southwest’s operative principle states, â€Å"employees come first and customers come second. Management believes that by placing a high priority on employees, it would result in those employees being passionate about their jobs, but also lets the employees know that Southwest is concerned for their general well-being and would provide them with job security. It is important to note that Southwest Airlines has never laid off or furloughed any of its employees since beginnin g operations in 1971. Southwest’s simple thesis is as follows: Keep employees happy—then they will keep customers happy. CEO Gary Kelly even said, â€Å"Our people are our single greatest strength and our most enduring long-term competitive advantage. † Southwest is a very strong culture company. By placing their focus on employees first, they are ensuring that their customers will be well taken care of. They hire employees based on their attitude and then train them for skills. Herb Kelleher stated â€Å"We can train people to do things where skills are concerned. But there is one capability we do not have and that is to change a person’s attitude. So we prefer an unskilled person with a good attitude†¦Ã¢â‚¬  Southwest has the belief that superior, hospitable service and a fun-loving spirit flowed from the heart and soul of employees who themselves were fun-loving and spirited, who liked their jobs and the company they worked for, and who were also confident and empowered to do their jobs as they saw fit. Southwest also has the lowest employee turnover rate in the industry with pay scales above the industry average (sometimes even near or at the top of the industry). Another important part of their culture is their no-layoff policy. Kelleher stated â€Å"Nothing kills your company’s culture like layoffs†¦you want to show your people you value them and you’re not going to hurt them just to get a little more money in the short-term. † Southwest has two core values: LUV and fun. LUV turned into the code word for how to treat customers, with dignity and respect and demonstrating a caring, loving attitude. LUV and red hearts appeared on posters at company facilities to remind employees of the behavior that was expected towards customers and other employees. Fun at Southwest includes pranks and jokes, dressing up on holidays, charity benefit games, entertaining behavior of employees while on the job, and more. CEO Gary Kelly explains that the â€Å"Southwest Way†, which includes having a Warrior Spirit, Servant’s Heart and a Fun, Loving attitude are the three things that have defined their culture for 36 years. In 1990, a Culture Committee was formed to nurture the Southwest Spirit. The committee sponsored and supported hundreds of ways to promote the Southwest Spirit by using the red hearts and LUV to embody the spirit of caring and other things such as serving employees pizza. Southwest’s monthly newsletter, LUV Lines, spotlights experiences and deeds of certain employees, reprinted letters of praise from customers, and company milestone celebrations. There are also occasional meetings called Culture Exchange in which they share similar information as the LUV Lines. All of these culture-building exercises have helped Southwest be a profitable company with loyal employees and happy customers. Gary Kelly may still encounter problems after taking over as CEO. Herb Kelleher instituted practices and support systems that promoted operating excellence which were a source of company pride. He devoted many years and a great amount of effort to find the best and most effective ways to operate every aspect of the company, from aircraft maintenance to efficient baggage transfers. CEO Gary Kelly has been following Kelleher’s lead in pushing for operational excellence. Kelly may not be the â€Å"original spiritual leader,† but he is doing his part to keep the company the way Kelleher left it. Kelly has strong strategic objectives; one being that Southwest would be â€Å"the safest, most efficient, and most reliable airline in the world. Both men believed that having a strong balance sheet and profitability were important financial aspects of the company. Kelleher’s vibrant, fun and caring attitude will be hard for any other CEO to match. He was known for his Hawaiian print shirts, making jokes and tricked out motorcycle. He was well known not only inside the company, but also outside for his combativeness. In 1990, he had a message penned in the Dallas Headquarters Office that stated: â€Å"The people of Southwest Airlines are the creators of what we have becomeand of what we will be. † Kelly will never be the same person as Kelleher and it may take longer for employees to warm up to his different management style. Kelly is less of a â€Å"culture pusher† than Kelleher, which could hurt Southwest in the long run, since their whole company is based on promoting a fun, caring atmosphere. Although Kelleher spoke very highly of Kelly when he took over as CEO in 2004, that doesn’t mean that Kelly will be as highly respected in terms of a spiritual leader to employees than Kelleher was. In addition, the Kelleher era at Southwest seemed to always be in a dogfight to build and become what they are today. As the employees who fought that fight with Kelleher retire, a piece of the â€Å"warrior spirit† goes with them. This may make it hard for Kelly to keep the warrior mentality alive with new employees who didn’t have a dog in the fight and may feel they don’t have as much invested to ensure they stay on top. 5. What grade would you give Southwest management for the job it has done in implementing and executing the company’s strategy? Which of Southwest’s strategy execution approaches and operating practices do you believe have been most crucial in accounting for the success that Southwest has enjoyed in executing its strategy? Are there any policies, procedures, and operating approaches at Southwest that you disapprove of or that are not working well? During a difficult time within the airline industry, Southwest made its entrance in 1971, despite the endless attempts from rivals to collapse the company before they could get started. Southwest emerged and made its first flight in June 1971. Since then Southwest’s management team has done a monumental job in implementing their strategies. By using a differentiation approach Southwest was able to stand out amongst its competitors. Low fares, entertainment, more flights to the same locations, the gradual expansion into new geographic markets, adding flights in areas where rivals were cutting back service using first-mover strategies, and flight turnaround times around 25mins (compared to 50-60 minutes from its competitors) all contributed to a grade A for Southwest’s management. Southwest’s overall strategy has transitioned from the 1971 to 2010. When the airline first started, they were serving a market niche in the Golden Triangle (Houston, San Antonio, and Dallas). They moved towards a Focused Low-Cost Provider as they expanded their service by expanding into new geographic markets and adding flights in areas where rivals were cutting back service. Southwest is now moving towards becoming a Best-Cost Provider by upgrading the quality of the customer experience (i. e. leather seats, business-focused areas, family-focused areas, etc). The low-cost, low-price, and no frills strategies have worked very well for Southwest. The company took a two-tier fare approach which gave customers a choice between a low unrestricted, unlimited, everyday coach fare and one which was restricted that was even lower cost. Despite its highly effective strategy, Southwest has some aspects that may not be working as well as others. Their infamous cattle call (procedure for boarding) can make customers feel like animals rather than people when they are fighting for a seat. Many customers may choose to forgo the lower airfare to enjoy a more peaceful boarding experience. Another issue to be addressed is the maintenance policies and procedures that ultimately led to the fairly recent media debacle. Reports of lax aircraft inspections surfaced and Kelly admitted the wrongdoing of the company. He limited the bad media exposure by ensuring the public his airline was one of the safest to fly with. Despite his public apology, this matter needs to be aggressively approached to ensure customers feel safe flying Southwest. 6. What weaknesses or problems do you see at Southwest Airlines? 1. Public perception of safety after airline inspection issue 2. Lack of creature comforts such as pre-assigned seating and on-board meals. 3. There is no first class for customers, so those wanting a more luxurious experience may fly with competing airlines. . It also offers no baggage transfers to other airlines, which may be a complaint from passengers needing to catch another plane in a short amount of time. 5. Cattle-call boarding procedure 7. What recommendations would you make to Gary Kelly? 1. Establish a more aggressive maintenance inspection program, especially with the older aircraft in their fleet. 2. Offer premium services for a fee. For example: seat selection, leg room, seat size, baggage transfer, and boarding first. 3. Provide a few more creature comforts on longer flights. Doing without comfort is fine on short flights. 4. Sell even lower cost tickets to spontaneous travelers who truly decide at the last minute to get away for a short weekend vacation when there are vacant seats available. 5. Continue hedging fuel to save money in that aspect. 6. Explore increasing the number of destination cities so they can grow their customer base. 7. Southwest should continue learning about the types of customers that tend to fly with Southwest so they can make changes to better serve their clientele. 8. Explore international flight options.

32 Patriotic Independence Day Quotes

32 Patriotic Independence Day Quotes It was a historic moment when Thomas Jefferson, along with other members of the Continental Congress, drafted the Declaration of Independence. The Continental Congress declared the people of America independent from the British colonies. It was the moment of truth all Americans had waited for. If the effort of severing ties from the British succeeded, the leaders of the movement would be hailed as true American heroes. However, if the effort failed, the leaders would be guilty of treason and face death. It was the clever wording of the Declaration of Independence, followed by some smart strategies employed by the leaders that sparked the Independence movement. What followed was a relentless power struggle to gain absolute independence from the British monarchy. July 4, 1776, was the historic day when the Continental Congress approved the Declaration of Independence. Every year, Americans rejoice and celebrate Independence Day, or the 4th of July, with great fanfare. Amidst colorful parades, flag hoisting ceremonies, and barbecue parties, Americans remember the suffering their forefathers endured to win them precious freedom. Patriotic Quotes for Independence Day Erma Bombeck: You have to love a nation that celebrates its independence every July 4, not with a parade of guns, tanks, and soldiers who file by the White House in a show of strength and muscle, but with family picnics where kids throw Frisbees, the potato salad gets iffy, and the flies die from happiness. You may think you have overeaten, but it is patriotism.Adlai Stevenson: America is much more than a geographical fact. It is a political and moral fact the first community in which men set out in principle to institutionalize freedom, responsible government, and human equality.Elmer Davis: This nation will remain the land of the free only so long as it is the home of the brave.Joseph Addison: Let freedom never perish in your hands.Dwight D. Eisenhower: Freedom has its life in the hearts, the actions, the spirit of men and so it must be daily earned and refreshed - else like a flower cut from its life-giving roots, it will wither and die.George Bernard Shaw: Liberty is the breath of life to nations. Woodrow Wilson: The American Revolution was a beginning, not a consummation.Harry Emerson Fosdick: Liberty is always dangerous, but it is the safest thing we have.Ralph Waldo Emerson: For what avail the plough or sail, or land or life, if freedom fail?Daniel Webster: May the sun in his course visit no land more free, more happy, more lovely, than this our own country!John Dickinson: Then join hand in hand, brave Americans all!By uniting we stand, by dividing we fall.Hamilton Fish: If our country is worth dying for in time of war let us resolve that it is truly worth living for in time of peace.Benjamin Franklin: Where liberty dwells, there is my country.Thomas Paine: Those who expect to reap the blessings of freedom, must, like men, undergo the fatigue of supporting it.-  Thomas Paine: In a chariot of light from the region of the day,The Goddess of Liberty cameShe brought in her hand as a pledge of her love,The plant she named Liberty Tree.He that would make his own liberty  Ã¢â‚ ¬â€¹secure,  must guard even his enemy from opposition; for if he violates this duty he establishes a precedent that will reach himself. Franklin D. Roosevelt: The winds that blow through the wide sky in these mounts, the winds that sweep from Canada to Mexico, from the Pacific to the Atlantic - have always blown on free men.James G. Blaine: The United States is the only country with a known birthday.Paul Sweeney: How often we fail to realize our good fortune in living in a country where happiness is more than a lack of tragedy.Hubert H. Humphrey: We need an America with the wisdom of experience. But we must not let America grow old in spirit.George Santayana: A mans feet must be planted in his country, but his eyes should survey the world.Bill Vaughan: A real patriot is the fellow who gets a parking ticket and rejoices that the system works.John Quincy Adams: All men profess honesty as long as they can. To believe all men honest would be folly. To believe none so is something worse.Aurora Raigne: America, for me, has been the pursuit and catching of happiness.Gerald Stanley Lee: America is a tune. It must be sung tog ether. Lee Greenwood: And Im proud to be an American, where at least I know Im free. And I wont forget the men who died, who gave that right to me.John F. Kennedy: And so, my fellow Americans: ask not what your country can do for you - ask what you can do for your country. My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man.John F. Kennedy: Let every nation know, whether it wishes us well or ill, we shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, to assure the survival and success of liberty.Oliver Wendell Holmes: One flag, one land, one heart, one hand, One Nation evermore!Rev. Dr. Martin Luther King, Jr.: So let freedom ring from the prodigious hilltops of New Hampshire.Let freedom ring from the mighty mountains of New York.Let freedom ring from the heightening Alleghenies of Pennsylvania!Let freedom ring from the snowcapped Rockies of Colorado!Let freedom ring from the curva ceous peaks of California!But not only that; let freedom ring from Stone Mountain of Georgia!Let freedom ring from Lookout Mountain of Tennessee!Let freedom ring from every hill and every molehill of Mississippi.From every mountainside, let freedom ring. Abraham Lincoln, The  Gettysburg Address, 1863: Four score and seven years ago our fathers brought forth on this continent a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal.

Competitive markets, monopolies, oligopolies as types of markets Essay

Competitive markets, monopolies, oligopolies as types of markets structures - Essay Example This means that the seller has a lot of authority and control over the market conditions such as price and supply. Some of the characteristics of monopolistic market structure include little quantity or absence of substitute products, large barriers to market entry, little or no competition, while seller has a great authority over market conditions, prices are determined by the seller, insignificant difference exists between the industry and firm. Additionally, the demand curve for monopolistic markets is downward sloping, which simply means the seller can sell less at a higher price, or vice versa (Nicholson, & Snyder, 2008, p. 491). Unlike in competitive markets, monopolistic markets have the upper hand in setting market prices. Since the firms or the sellers have little to worry about competitors, they can set the prices above the marginal costs. They can set the prices above the normal profits as would be in the case of competitive markets. Additionally, the seller can influence supply, thereby determining the price by either selling more at a lower price or selling less at a higher price. The maximum possible price will be where marginal cost, marginal revenue, and demand curve intersect. Although monopolies can maximize profits in several ways, the output is largely determined by marginal cost and marginal revenue. The seller will continue increasing the output, as long as marginal costs are lower than marginal revenue. The maximum profit will be realized when the difference between marginal revenue and marginal cost is maximum. Since the seller is the price determinant, it is possible to regulate the output such that the profit obtained is maximized when other market conditions are considered. Monopoly markets have many market entry barriers as compared... It is evidently clear from the discussion that competitive markets are characterized by unlimited number of buyers and sellers, all trading on the same or similar commodity in a manner that the prices of the commodity are largely determined by the market forces. Therefore, a single individual or a small fraction of the buyers or sellers has little or no impact upon the price. Once the prevailing market forces set the price, buyers or sellers have no option but to go with the offered prices. Monopoly type of market structure refers to a market whereby there is little or no competition on the offered commodity. This means that the seller has a lot of authority and control over the market conditions such as price and supply. Some of the characteristics of monopolistic market structure include little quantity or absence of substitute products, large barriers to market entry, little or no competition, while seller has a great authority over market conditions, prices are determined by the seller, insignificant difference exists between the industry and firm. Oligopoly is a market structure whereby few sellers dominate the market. Unlike in monopoly form of market structure, oligopoly players can hardly make independent decisions since the other market players will react in response. Therefore, the decisions of one player are under the influence of the others. Few large firms characterize the market structure, each firm is appreciably large in comparison to the overall market, similar or close substitute products, and large barriers to entry.

Case Study Work Based Learning Assignment Example | Topics and Well Written Essays - 3250 words

Case Study Work Based Learning - Assignment Example L'Oreal reported revenues of $19.8 billion in 2004 with more than 52,000 employees worldwide. The news of acquisition has surprised Animal protection organizations and ethical consumers worldwide. Though this deal has been endorsed by financial analysts for its financial viability there are sharp protests from ethical consumer forums. They have reacted with surprise at the news that L'Oreal will acquire The Body Shop International. There have been particular concerns over the future of The Body Shop's firm and consistent stance against animal testing and ethical consumerism. The groups issuing this statement work together in a global coalition operating those programs such as the Corporate Standard of Compassion (US) and Humane Cosmetics Standard (EU), working closely with leading cosmetics companies worldwide to end animal testing. The acquisition is over but major challenges lying ahead of L'Oreal and Body Shop of identifying the metrics to measure success, and unifying the contrasting 'people' cultures and management styles of a French corporate giant and a UK-based company whose culture - and business and operating model - is inextricably based upon a strong ethical trading stance, is matter of importance for success of merger. Though L'Oreal and Body Shop belonged to the same business domains there was a large gap between their operating business philosophies. While Body Shop has been a champion of ethical business and ethical consumerism L'Oreal's track record in this field has not been that clean. L'Oreal has accepted in past, the use of animal testing for their cosmetology and dermatology research. L'Oreal receives a worst rating from Ethical Consumer for its animal testing policy, and also has had boycott calls against it for testing its cosmetic products on animals. And while the Body Shop has always considered natural ingredients as important, L'Oreal is criticized by environmental campaigners for including harmful pollutants and worrying chemicals in its cosmetics. Another worry is its link to Nestle. In many European surveys consumers have voted Nestle as a least ethical and responsible organization because of its baby milk which it advertise to be substitute of breast milk. Business Ethics Body shop has sensitized the European customers about the business ethics. According to business philosophy of Body Shop it is opposed to testing products and various ingredients used in cosmetics on animals. Body Shop has also been a champion of business ethics and corporate responsibility to contribute for the cause of society. Following are some lines from the corporate values they are said to follow: "We consider testing products or ingredients on animals to be morally and scientifically indefensible. We support small producer communities around the world who supply us with accessories and natural ingredients. We believe that it is the responsibility of every individual to actively support those who have human rights denied to them. We believe that a business has the responsibility to protect the environment in which it operates, locally and globally." Considering above statements, L'Oreal and Nestle, which owns 26% of L'Oreal, do not have a healthy records at least for the social activists, environmentalists and for Body Shop till the date of acquisition. Anita Roddick, CEO and founder of Body Shop, has many times lashed out at the policy of Nestle of not being ethical. Following Anita's

Global International Markets Research Paper Example | Topics and Well Written Essays - 2250 words

Global International Markets - Research Paper Example According to Wensley, global strategic market is â€Å"initiating, negotiating, and managing acceptable exchange relationships with key interests groups or constituencies, in the pursuit of sustainable competitive advantage within specific markets, on the basis of long run consumer, channel and other stakeholder franchise† (Wensley, 1982). The Wal-Mart Wal-Mart is one of the largest retail stores chain in the world and was established in 1962. On the basis of the strategic perspective, the Wal-Mart is structured into three main segments namely, Wal-Mart United States, Sam’s Club and Wal-Mart International. According to the statistical report of the company, in 2011, the Wal-Mart’s revenues constitute up to about three-fifth of the United States market. The web portal, Wal-Mart.com also contributes heavily to the total turnover of the company, constituting nearly 8% of the total revue through online retail operations (Wal-Mart 2011). Today, the company operates th eir business in over 15 countries, accounting for 25% of their net sales. Their selling policy includes promotion techniques of discounting outlets, restaurants, superstores, retail stores and multiple formats of outlets, to gain the maximum satisfaction of their customers especially in countries like China and Japan. The retail and online operations of the Sam’s club contributes about 10.5% in terms of annual revenues to the company. Moreover, the company holds the top position for employing over 2.1 million people, which remains bigger than all other major retailers (Carrefour, Tesco and Metro AG) put together (Wal-Mart 2009).Besides, the company functions nearly 3000 superstores, 720 discount outlets, and more than 600 Sam’s Club outlets in the United States. Globalization of Markets Globalization of Markets refers to the integration of national markets into one large global marketplace. Today international trade has become much easier as the hurdles of crossing the borders for trade is eradicated. All companies like to offer a standard product worldwide. However, there are considerable variances existing among each market such as, consumer tastes and preferences, cultural variations, and legal regulations. Such variations in the international market make a company to adopt strategies that may match with the conditions of a country’s market. Wall-Mart may still require diversifying their products across each country according the local tastes and preferences. Globalization of production The term globalization of production is associated with sourcing of goods and services from various locations across the globe while taking advantage of the variations in cost and quality of factors of production across the regions. Here, Wal-Mart operates over 4200 outlets in the global markets and which constitutes a quarter of its annual revenues. Its efficiently running primary retailer markets like Mexico and Canada enhance a fast market expansion a cross South America, Africa and Asia (Wal-Mart 2009). Driving Forces There are various drivers of globalization in the global marketplace. When a company becomes subject to these forces, they practically become candidates for globalization. The major driving forces of globalization are; technological advances, global economic growth, converging market needs and wants, pressure to improve quality, opportunities for

Role of Public Sector in Modern Economies

Role of Public Sector in Modern Economies Forces of demand and supply control prices in modern capitalist economies, government intervention has been limited to provision of social services. Prices of goods and services as well as cost of production are determined with minimal government intervention. A perfect capitalist economy can only exist in an ideal situation and since there is no ideal situation, there are always some government controls, rules and regulations in an economy (Pigou, 2006). In general, government controls the performance of an economy through fiscal and monetary policies. These policies are aimed at changing or controlling certain factors in the economy to enhance or limit production. Government participation varies among countries were developing countries need a higher involvement than developed countries (Ceccacci, Marchesiani and Pecchi, 2007) This paper discusses the role of the public sector in modern economies and factors public sector consider when making financial decision. Political stability The government is made up of political class, who control the economies of a country, they play the role of politicians and economic drivers, and however, political situation in the world is not stable. There have been changes and uncertainty in different countries. A country like Kenya in East Africa underwent tribal crashes in 2007 after a disputed election. The crisis affected the economy of the country. In November 2010, Ivory Coast in Central Africa had disputed election a move that have affected the countrys economic performance. In civilized countries like the United States of America, which is the worlds largest economy, the performance of the ruling class affects the economy positively and negatively. A country as China, which has the highest economic growth in the world, has a stable government (Dalton, 2003) from the above discussion, it is clear that one major functions of government is to ensure there is political stability in the country. If the political class maintain s political harmony in an economy then growth and stability in the country is possible. One of the most surprising thing is that to destroy an economy that had been built for many years can take a matter of weeks in case of political unrests. For example, Zimbabwe was among Africans best performing countries, when there were disputed presidential economies in 2009; the country is now ranked as the poorest in the world. Other than local politics, international politics affects country economic, social and political performances. International policies and relations affect how economies conduct their business. There are times that goods from a certain countries have been limited to enter in the international market through tariff and non-tariff barriers (Buchanan, 1987). Maintaining good International relations Foreign ministry in different countries is given the responsibility of maintaining good international relations with different countries. Globalisation and international trade has opened the international market, assisted by transport and communication networks (Quigley, 2000). To ensure that a country participates in international trade effectively and reduce chances of international rivalry, it should ensure that there are good international relations. Switzerland has managed to be the world largest tourism country because of its political neutrality and maintaining of good relations with other countries. Sometime to be competitive, countries engage in economical alliances to be able to negotiate for better teams in the world markets. Such integration includes European Union, East African Community, and Pan African among others (Dietmar, 2000). Other than having a good international relations, it is the role of the government to ensure that its country have a good reputation. It sh ould not be known for negative things like poverty, corruption and inequality. Such reputations are not built by word of mouth by through actions undertaken by the government. Protection of citizens The government has the mandate of ensuring that the constitutional rights of every human being are respected. These rights include rights to protection, where the government provides security to its citizens. Security is from foreign and internal attackers. There are times that the government sets minimum or maximum prices of goods to ensure that consumers are not exploited. On the other hand, the government also sets standards required in a country; this is in the move to ensure that it has protected its consumers against substandard goods and services provided by businesspersons. There was another move made by Chinese government, which has been seen as a new government move where the government aims at reducing the rate of economic growth in the country (Edward, McCaffery and Joel, 2006) Infrastructures The government has the mandate of providing infrastructures like roads and communication networks, which cannot be left in the hands of individuals. These infrastructures ensure that an economy has social resources that can be used by society members without paying for them directly. In time of disaster, the public sector is called upon to assist. This is in case of terror attacks, drought and floods. The government should have adequate machinery and mechanisms to ensure that in case of a disaster, it has assisted its own citizens and sometimes extend the help to other nations. Other social economic factors affect an economy. They include inflation and deflation. The government has the mandate of ensuring that its economy has neither excess funds (inflation) or has limited funds (deflation) (Gabriele, 2009). Leadership and strategic decision-making The government is expected to make strategic decisions, which define the pathway that the country aims to follow over a certain period. This can be yearly or take a couple of years. Every year, governments make financial budgets to be followed when financing various projects in the country. These budgets contain yearly, monthly or projects that take more than one year. Such policies are the ones, which attract international investments in a country. In the 1990s, many countries had Vision 2000, which they wanted to have attained certain economic, social and political goals. In the current 20th century, there are calls to Vision 2020, Vision 2015 and visi0n 2030 among others depending with a country and the goals it has for the economy (Wildasin, 2008) Issues a government need to take into account when financing the activities adopted to fulfil the role set out in (a) above The government control an economy using fiscal or monetary policies. They can be either direct or indirect. The kind of financing adopted, depends with the goal and objective the government want to attain in a particular time. To control the economy effectively, consideration must be made to ensure that the most appropriate measure is taken (Reed and Swain, 1997). Generally, there are factors that government need to consider when financing different projects in the economy they are: The level of economic development in the country or locations The government has the role of setting up infrastructures to be used by the public and private sectors in their efforts to grow the economy. Before certain infrastructures are made, the government need to analyse the project and ensure that it is economically viable. Priority should be given to those places that have potential yet the exploitation of such potential is hindered by lack of infrastructures like roads and communication networks. Investments in infrastructures is an expensive exercise where the government spend public resources to make such infrastructures, they should thus benefit the greatest majority in the country. In developing economies, the government has a more active role where it is expected to make a platform that international and national inventors can built on. Such infrastructures include electricity production plants, transport networks, taxation incentive and communication networks. Some countries like China have had the government cut down its public fin ance expenditure to ensure that the economic growth rate in the country slows down. It has opted to have higher taxation to companies and individuals to ensure that they have low income to spend in economic development (Schulte, 2000). Countries competitive advantage sectors Different countries have different economic potentials; the kind of products that can be produced effectively by a nation varies among different nations. There is need to understand the potential that a country has and investments should be skewed to that direction. For example is a country has a potential in natural resources like oil reserves or good climate, then the government should direct most of its finances to these sectors. This will ensure that high levels of efficiency have been attained for economic development. Absolute and competitive advantages are important when deciding the countries to make economic integrations. There are times that countries produce the same commodities, in such cases such countries can make good economic blocs to negotiate for better prices for their products. They though cannot make good trading partners since they make more the same products (Schumpeter , 1994). The rate of inflation/deflation The rate of inflation in country affects expenditure decision by the government. When an economy is facing high rate of inflation, then the government has the mandate of controlling the economy. Controlling inflation and deflation are monetary issues where the government devises measures to reduce money in circulation (in the case of inflation) or increase money in circulation (in the case of deflation). In inflation, the government can decide to sell government securities like bond and bills at an attractive interest rate where investors will be attracted to buy them and the money in circulation is reduced. On the other hand, it might decide to increase the lending rate to banks through central bank, which will be transmitted, to consumers making the cost of lending money expensive. This reduces the rate of money attractiveness thus, the growth of money in the economy reduces (Sheila, 2004). In the case of deflation, the government devises measures to increase the flow of cash in the economy. If the government decides to reduce central banks lending rate, then banks will be more willing to lend money. This increases the money in circulation curing the deflation (Tresch, 2002). Living standards Different countries have different living standards. It is the dream of leaders to have citizens who have high living standards. To attain this need, the government takes deliberate measures to increase the living standards of its people. Such measures include wide investment in social facilities like public hospitals, building of roads, communication networks and education facilities. There are countries, which have opted to offer free medical and educational facilities to their citizens in the move to have increased living standards. Countries with high living standards do not require much invention of the government in their affairs but those that are underdeveloped and have reduced living standards the government intervention is highly required (Shinnick, 2008). Some government have national libraries, some even mobile ones to ensure that its population has access to information for personal empowerment. Adoption of technology in different sectors has enabled a countries population have higher living standards as people are more informed of their rights that they can fight for (Shoup, 2006) Resources distribution Resources in a country are not equally distributed; there are some parts, which have higher allocation of natural and manmade resources in a country. The in-equally bring about difference in social, economic and sometimes political. The government should ensure that its country have well distributed resources for a harmonious growth in all regions of the country. The differences make the government direct most of its resources to areas that are disadvantaged (Musgrave, 2008). They are given priorities in the efforts to see whether they can catch up with other areas. A country that has high levels of inequality is most likely to be in political disputes from time to time. This is when some people feel oppressed by the system. In the past, social rivalry in countries for example in French revolution, were brought about by inequality and oppression in the economy. To avoid a repeat of such things in an economy, the government should ensure there is equality in the economy. Equality can be brought through indirect measures like education, social amenities, and employment (Moore, 2009). Unemployment level Government has a role in creating employment in its country. If the economy is facing high levels of inflation, then the government must put on measures to ensure that the economy produces job opportunities. For an increased employment creation in country, the government should create an atmosphere where local and international investors feel attracted (Minea and Villieu, 2009). Such measures include reduce taxation, offer incentives to investors like tax holidays , investments deductions and offering land for factory settlements. Other than focusing on international and local major investors, the government can undertake different measures to facilitate small-scale investments through small traders and artisan. Finances can be directed to the areas where the government offer loans to deserving population to starts up their own business . Other than business, there are other individual talents that can be tapped and still create employment. This includes sporting activities and enter tainment industry where the government can support youth to engage in such activities (McGee, 2004). Security situation It is the role of the government to ensure that its citizens are protected from internal and external security threats. The state of security in a country will determine the amount of investment that will be directed to this task. There are times that a country may be threatened of an attack, or the security system in the country is not good. In such cases, the budget for security should be increased appropriately. Different times require different security levels, for example, in times of political unrests, high security is required than in times of harmony in a country, so the amount of investment that a country makes in investment is determined by security level in the country (Martin, 2005). Global environment The international community affects the trend of spending in a government. There are times that international relation and trade may require a government to spend higher than in normal circumstances. Currently with globalisation, the world is facing an increased trade among countries. The trade calls for improved infrastructures, communication systems and security along borders. Although these factors benefit an economy, they require the government to make investments in the economy. To facilitate international trade, the government need to invest in good roads to transport goods produced within the country to the departure ports and those coming from abroad to their destinations (Kabelo,  Khalo and Mafunisa, 2007). Communication is crucial in making trading negotiations and contracts where the government should lay good communication systems. International trade does not just happen without government intervention, there is need to control the flow of goods. Through customs depart ment, the government imposes custom duties and tariffs to some imports and exports in its move to collect revenue and protect internal industries. Through borders, some goods that are harmful to a population can get their way; it is the role of the government to ensure that borders are free from such goods. For border security, revenue collection and national companies protection to be effective, the government has to make massive investment in detecting tools like scanners, personnels to patrol the borders and revenue collection officers. Making of ports is capital intensive and thus before such an investment is made the government should ensure that it has analysed the economic benefit of such a move. For example, the decision to make Suez Canal was for trading purposes, it has assisted North African countries like Egypt, however, maintaining high standards in such an entry is an expensive practice (Jà ¼rgen and Wagner, 2004) Technology Scientific innovation and inventions have resulted to an increase in technology in the world. Efficient technology assists a county to produce goods and services effectively with maximum utilisation of resources. The government has a role to play in technological development and adoption in the economy. This can be through its own adoption of technology in its systems or it can be creating an environment that enables companies to adopt technology. There are times that the government controls the rate of technological adoption in its economy. For example in Kenya, the government is opposing the use of tea plucking machines by tea growing factories since it believes that the number of jobs that will be lost as a result are going to harm the economy. To enhance adoption of technology, the government have sometimes offered incentives to those companies with high technology like tax incentives to facilitate further technology use (Hyman, 2007) Environmental concerns The world is having increased concerns about environmental damage. International bodies have enacted rules and regulations to be followed in its efforts to reduce environmental damage. Such international regulations include Kyoto protocol on green gas emission where signatories were expected to reduce their production of green house gasses (Howard, 1992). To facilitate moves that protect the environment, the government is involved in different activities that aim at corporate and to individuals. It has put on measure that reduces the amount of emission from industry. Such measures include taxation on carbon emission, having national environmental control policies and programs, offering tax incentive and facilitating technology adoption (Bradford, Auerbach and Shaviro, 2000). The rate of investments in a country The investment environment in countries determines the rate of investment in a country. When the environments are not attracting investments, then the government has to undertake strategic measures to ensure that it has facilitated investments. This can be through targeting certain industries, which are crucial for investment decisions in a country, and enhancing their capabilities in attracting investments (Gstoettner and Jensen, 2010). For example, the energy sector is important for economic development and attracting investment. The government can control prices in such an industry and cover the deficit. This will make investors attracted by the low rate of production cost offered by such moves. In countries like China, the government have used this consideration to devise measure that reduces the rate of investment. There are times that the government becomes the investor in come strategic industries, which are considered low income generating. This is in the move to ensure that all essential products and services are available in a country (Blanca and   Wodon, 2006) Economic deficits and Balances of payments There are times that a country may be facing economic and balance of payments deficits. The deficits harm an economy, the government requires to take strategic decisions to ensure these deficits are cured. In cases of economic deficits, it means that a government will not be able to finance all budget activities in a particular year or periods. It may be forces to offer some government bonds and bills, which are offered at a cost to the public. It may also decide to sell its products to raise money to finance its deficit. The right move to make in such case is determines the decision made by the government (Bastable, 2003) International trade brings about balances of payments (B.O.P.). For a healthy economy without a deficit in balance of payment, then imports should be of a lower cost than exports. To facilitate an increase export, or reduce importation, the government have a role to play. In facilitation of exports, the government offers incentives to exporters to increase their exportation. These incentives may be subsidies in production. To discourage importation, the government can increase taxes charged to imports and empower local companies to produce goods that were otherwise imported. When a country has a healthy balance of payment, its currency is strong making its goods and services competitive in the international markets (Arye, 2003) Conclusion Modern economies are mostly capitalists, where forces of demand and supply determine prices. Government intervention in these economies is minimal but important. Government intervenes in economies to facilitate an appropriate economic growth rate and protect citizens from violation of their constitutional rights. It uses monetary and fiscal policies to control the economy. Before making an investment decision, government consider economic, political, social, global and environmental implication of such decision. Maintain political stability in a county is an important role of the government. The right decision to make is one that results to increased welfare of majority in the country.

Abortion: Where Do We Draw The Line? :: Biology Essays Research Papers

Abortion: Where Do We Draw The Line? Possibly one of the most controversial court cases in our country's history was settled in January 1973. In a decision known as Roe vs. Wade, the Supreme Court legalized abortion in the United States (1). Now, according to the National Center for Health Statistics, abortion practices have become the most frequent surgical operation in the United States. But at what point is abortion just wrong? Only under certain circumstances should abortion practices be legal. Many would argue that abortion is wrong because as soon as the baby is conceived, it becomes a living, breathing organism. Therefore, aborting the small organism is simply murder. However, when Roe vs. Wade was decided, organizations like Planned Parenthood publicly supported this ruling, arguing that during the first three months of pregnancy, the fetus is nothing more than a mass of tissue (1). In addition to Planned Parenthood, there are also many religious organizations in agreement with the legalization of abortion. These organizations include American Baptist Churches USA, the Episcopal Church, Presbyterian Church USA, the United Methodist Church, and the United Synagogue for Conservative Judaism (2). But under what circumstances should abortion practices be accepted? As time passes, it seems as if more and more women are having abortions as a way of shunning responsibility. According to the AG Institution, fifty percent of women who have abortions use it as their sole means of birth control (3). This is one example of how abortion practice is being taken advantage of and used for the wrong reasons. In addition, approximately 45% of all abortions in the United States are done by women ages 19 and under. Why is this? Based on a survey of 1900 women in this country, the two most common reasons for abortion are: 1) the woman can not afford to keep the baby, and 2) the woman is not ready for the responsibility. These responses accounted for nearly 42% of all answers (3). However, these reasons are far from legitimate because these issues can be easily fixed. There are too many contraceptives and other forms of birth control to allow these excuses to be justifiable. So what are acceptable reasons to abort an unborn baby? For one, a mother's health should never be in jeopardy. Another understandable reason to have an abortion is when there could be possible health problems for the unborn child.

Function of Art

Function of Art Art connects people by offering an idea they can relate to. It is important as it helps to improve and learn in areas of communication, expression, and historical understanding. Another reason art is important is its interwoven relationship with culture on the basis that culture is articulated and influenced by art. It is a way to communicate and express ones thoughts and dreams through cinema, dance, literature, music, painting, sculpture, and theater. As a child I grew up in the Bay Area and was introduced to art at a very young age.I was very fortunate to be exposed to several types of art forms from going to the San Francisco ballet, the de Young Museum, the Curran or Orpheum Theater, and San Francisco Symphony. Even though I was introduced to art at a young age I did not come to fully appreciate art until much later in life. From kindergarten to fourth grade I took ballet. From fifth grade thru high school I was involved in music, theatre, and art through differe nt mediums such as painting, clay, and wire. I tend to lean toward art in the form of painting or theatre for inspiration.The artist that stands out is Jackson Pollock, an American painter whose form of painting is referred to as abstract expressionism. Jackson Pollock’s art conveys the mindset of Abstract Expressionism. The painting has a life of its own. Pollock’s paintings are a spirited technique of pouring and dripping paint onto a canvas on the floor. It has been said that Pollock is more at ease working on the floor as he feels closer to his painting literally seeing it from every side becoming one with the painting. Pollock’s painting aborts traditional composition and lacks a fundamental motif.His works stimulates the viewer’s peripheral vision thus one’s eyes are continuously moving. I am fascinated by his work, and can attain creative and inspiration from his paintings. Theatre stimulates creativity in problem solving and challenges perc eptions about the world and about one’s self. It provides an outlet for emotions, thoughts, and dreams and if only for a few moments explore a new role or understand problems faced by figures of literature or historical. Theatre is at the center of is communication.Like any arts theatre allows us to communicate and understand others in new and different ways. In today's increasingly information-centered world theatre provides guidance in the practical characteristics of communication. Participating in theatre made it easy for me to speak in public, be more persuasive both in oral and written communications and able to put myself into someone else’s shoes. It also made me a more positive, confident and discipline. Through theatre I learn to cooperate, work together, contribute, collaborative, listen and accept the viewpoints of others.Theatre is an important tool for preparing one to live and work in a world that is increasingly team-oriented rather than hierarchical. I have researched the subject of art serving a societal purpose. Art bring awareness to humanities by means of presenting truths that cannot be articulated in another way. Art connects a society by offering an idea most can relate to. Philosophies that come from art lead to an enriched society, as long as we take action based on the values seen in art. Art can inspire sympathetic but reveal misconceptions, which are parts of the human experience as related in society.Perception can be a beneficial as one gains a better understanding of their place in society and about society as a whole. If the individual puts this new understanding into practice society will profit. Although I have some background in the arts, I would like to further my learning and discover more areas, such as music, cinema, and dance. I find value in painting as it helps develop insightful meaning and entice creativity in me. Theatre has helped me to develop an understanding for the world and the physical elements within it.Finally, art should be viewed as serving a purpose to society an important aspect that connects people by offering an idea that people can relate to. If the people act upon their artistic ideas society can better Because of this art should not exist solely for its own sake. Art is a drive to communicate an interpretive way, not bound by status quo. It is a sign of evolving society. Art is a way to express inner thoughts and feelings that words cannot. It is an emotional and physical outlet with symbols and meaning for us to interpret. Art is this and more, and its function is to expand communication on higher levels of thinking.

Stuart Family Album essays

Stuart Family Album essays He was a believer of Absolute Power, as he himself believed he had power bestowed upon him by God ( known as the Divine Right of Kings ). While he occasionally passed statements in favor of the Puritans/Anglicans, he was believed to be ( as most Stuarts ) secretly Catholic. He was not exceedingly fond of Parliament, but had few skirmishes with them, he favored He was believed to be a homosexual, and married only out of responsibility to the throne. He believed in absolute power, and so decided not to call Parliament, as it was his decision whether or not they met; they couldnt do anything without his permission to meet. Due to a Scottish uprising, he found himself in need of money to create an army. Parliament met once upon his request in 1640, refusing his money, and dissolved. After he called them back, they decided to stay together for 20 years ( called the long Parliament )...during which they passed the Triennial Act, Impeached archbishop Laud, and got rid of the High Commission and Star Chamber ( royal courts ). A civil war broke out between the King and Parliament from 1642-1649. Eventually Charles I had the Model Army on his hands, led by Oliver Cromwell and the other Roundheads ( Parliamentarians ). His own Army, the Royalists/Cavaliers, fell to them. In 1649 he was beheaded. He believed in the Divine Right of Kings and attempted to achieve Absolute Power. Married to a Catholic Princess, who strongly influenced him. While in power he worked towards making the Anglicans more Catholic, and persecuted His successor was his Archnemises, the Roundhead leader of the Model Army, Sir Oliver ...

The financial statement of BAE system analysis of company’s financial perform-ance The WritePass Journal

The financial statement of BAE system analysis of company’s financial perform-ance   Introduction The financial statement of BAE system analysis of company’s financial perform-ance   IntroductionKey FactsLANDAIRSEAHOMELAND SECURITYTECHNOLOGY INNOVATIONINFORMATION TECHNOLOGYBalanced Scorecard  Kaplan and Norton describe the innovation of the balanced scorecard as followsThe Financial Perspective  BAE Systems Plc.Key Recent DevelopmentKey benefits of buying this profile include,Why I Chose The Balance Scorecard To Calculate My AnalysisConclusion Related   Introduction BAE Systems is a global defence and security company with approximately 100,000 employees worldwide. The Company delivers a full range of products and services for air, land and naval forces, as well as advanced electronics, security, information technology solutions and customer support services. In 2009 BAE Systems reported sales of  £22.4 billion (US$ 36.2 billion). BAE Systems plc. (BAE) is one of the leading global defence, aerospace and security companies, providing advanced electronic, security, information technology solutions. The company is engaged in designing, manufacturing, and supporting military aircrafts, space systems, surface ships, submarines, avionics, radars, C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) systems, electronic systems, and guided weapon systems. BAE’s other operations include complex software development, advanced manufacture, and providing specialized training services. Its distribution network covers about 130 countries.(www.baesystem.com) 2nd largest global defence company based on 2009 revenues* Approximately 100,000 employees worldwide Global capability Customers in more than 100 countries 2009 sales exceeded  £22.4 billion * (: Defense News Annual Ranking, published June 2010) Key Facts LAND BAE Systems is a global leader in the design, development, production and support of armoured combat vehicles, major and minor calibre naval guns and missile launchers, canisters, artillery systems and intelligent munitions. AIR BAE Systems delivers advanced military air capability through major aircraft programmes in the UK, US and to many overseas customers. SEA BAE Systems has a breadth of capabilities and is delivering high performance through a range of warships, submarines, auxiliary vessel programmes and naval armaments HOMELAND SECURITY BAE Systems is well positioned to play a key role in this developing market, where protecting people, assets and infrastructure, and maintaining national security and economic stability are paramount TECHNOLOGY INNOVATION BAE Systems has a proud heritage of ground breaking inventions including Concorde, Radio communication, and the Harrier Jump Jet. In the changing world of defence and homeland security, technology and innovation are still at the heart of our business. INFORMATION TECHNOLOGY BAE Systems Information Technology, based in McLean, Virginia, is one of the ten largest IT providers to the US government. Our aim is to be a recognized provider of managed IT Operations. (www.baesystem.com) Balanced Scorecard   The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and non profit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics to give managers and executives a more balanced view of organizational performance. The balanced scorecard has evolved from its early use as a simple performance measurement framework to a full strategic planning and management system. The â€Å"new† balanced scorecard transforms an organization’s strategic plan from an attractive but passive document into the marching orders for the organization on a daily basis. It provides a framework that not only provides performance measurements, but helps planners identify what should be done and measured. It enables executives to truly execute their strategies. This new approach to strategic management was first detailed in a series of articles and books by Drs. Kaplan and Norton. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to what companies should measure in order to balance the financial perspective. The balanced scorecard is a management system (not only a measurement system).(www.balancescorecard.org) Kaplan and Norton describe the innovation of the balanced scorecard as follows The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. The Balance Score Card Frame Work Adapted from Robert S. Kaplan and David P. Norton, â€Å"Using the Balanced Scorecard as a Strategic Management System,† Harvard Business Review (January-February 1996): 76. balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx The Financial Perspective Kaplan and Norton do not disregard the traditional need for financial data. Timely and accurate funding data will always be a priority, and managers will do whatever necessary to provide it. In fact, often there is more than enough handling and processing of financial data. With the implementation of a corporate database, it is hoped that more of the processing can be centralized and automated. But the point is that the current emphasis on financials leads to the unbalanced situation with regard to other perspectives.  Ã‚  There is perhaps a need to include additional financial-related data, such as risk assessment and cost-benefit data, in this category. For example: Growth stage   goal is growth, such as revenue growth rate Sustain stage   goal is profitability, such ROE, ROCE, and EVA Harvest stage   goal is cash flow and reduction in capital requirements The following table outlines some examples of financial metrics: Objective Specific Measure Growth Revenue growth Profitability Return on equity Cost leadership Unit cost Financial Performance Of BAE System BAE Systems plc. (BAE) is one of the leading global defence, aerospace and security companies, providing advanced electronic, security, information technology solutions. The company is engaged in designing, manufacturing, and supporting military aircrafts, space systems, surface ships, submarines, avionics, radars, C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) systems, electronic systems, and guided weapon systems. BAE’s other operations include complex software development, advanced manufacture, and providing specialized training services. Its distribution network covers about 130 countries.(www.baesystem.com)   BAE Systems Plc.Key Recent Development Jul 26, 2010 BAE Systems, Aquamarine Power Collaborate On Wave Energy Mar 24, 2010 BAE Systems Plans To Develop Hydrogen Fuel Cell Bus For Sun Line Transit Mar 16, 2010 BAE Systems Delivers First Hybrid Propulsion Systems To Alexander Dennis Under Green Bus Fund Initiative Sep 28, 2009 Oshkosh Bags New Deal From BAE Aug 19, 2009 BAE Systems To Provide Propulsion Systems To King County Metro Transit For 500 Hybrid Electric Buses. This comprehensive SWOT profile of BAE Systems plc. provides you an in-depth strategic analysis of the company’s businesses and operations. The profile has been compiled by Global Data to bring to you a clear and an unbiased view of the company’s key strengths and weaknesses and the potential opportunities and threats. The profile helps you formulate strategies that augment your business by enabling you to understand your partners, customers and competitors better. The profile contains critical company information including Business description A detailed description of the company’s operations and business divisions. Corporate strategy Analyst’s summarization of the company’s business strategy. SWOT Analysis A detailed analysis of the company’s strengths, weakness, opportunities and threats. Company history Progression of key events associated with the company. Major products and services A list of major products, services and brands of the company. Key competitors A list of key competitors to the company. Key employees A list of the key executives of the company. Executive biographies A brief summary of the executives’ employment history. Key operational heads A list of personnel heading key departments/functions. Important locations and subsidiaries A list and contact details of key locations and subsidiaries of the company. Detailed financial ratios for the past five years The latest financial ratios derived from the annual financial statements published by the company with 5 years history. Interim ratios for the last five interim periods The latest financial ratios derived from the quarterly/semi-annual financial statements published by the company for 5 interims history. Key benefits of buying this profile include, You get detailed information about the company and its operations to identify potential customers and suppliers. The profile analyses the company’s business structure, operations, major products and services, prospects, locations and subsidiaries, key executives and their biographies and key competitors. Understand and respond to your competitors’ business structure and strategies, and capitalize on their weaknesses. Stay up to date on the major developments affecting the company. The company’s core strengths and weaknesses and areas of development or decline are analysed and presented in the profile objectively. Recent developments in the company covered in the profile help you track important events. Equip yourself with information that enables you to sharpen your strategies and transform your operations profitably. Opportunities that the company can explore and exploit are sized up and its growth potential assessed in the profile. Competitive and/or technological threats are highlighted. Scout for potential investments and acquisition targets, with detailed insight into the companies’ strategic, financial and operational performance. Financial ratio presented for major public companies in the profile include the revenue trends, profitability, growth, margins and returns, liquidity and leverage, financial position and efficiency ratios. Gain key insights into the company for academic or business research. Key elements such as SWOT analysis, corporate strategy and financial ratios and charts are incorporated in the profile to assist your academic or business research needs.(www.baesystem.com)  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Why I Chose The Balance Scorecard To Calculate My Analysis In most cases big companies need different tools to evaluate overall performance. For instance, Company X may have supply department which needs logistic solutions, customer support service that need to solve customer’s problems, sales department, HR department and so on. As said above, different business areas have different KPIs. But all your departments should woks as one single whole. Thus, if sales department has imperfections, supply department cannot work 100% of its capacity. If HR department spend money inefficiently and cannot find new employees on time, you will suffer losses which will affect the entire company. Under such conditions, every department or business type should use Balanced Scorecard in its own way in terms of KPIs. Sales department must calculate number of new customers, while contact centre is taking care of first resolution rate (number of calls which solve customer’s problem from the first time). Balanced Scorecard will make you and your employees feel confident as you will be always informed on strengths and weakness of your company. At the same time, Balanced Scorecard will contribute to positive organization climate and help you establish a fair and comprehensive compensation system. Establish certain evaluation periods (for instance once or twice a month) and call overall meeting of the company with representatives of different department. Using Balanced Scorecard you will be able to summarize company performance and make smart decisions as to future development strategy. Of course, you know what to tell a head of logistic department if he always has several unused vehicles in his fleet. And you do know if customers are complaining that call center operators are sometimes incompetent to solve their problems. Balanced Scorecard is your reliable advisor in the changeable world of business. This is a MUST have tool for top managers, head of departments and companies, development managers, quality control specialists etc. 1.  Profitability   its ability to earn income and sustain growth in both short-term and long-term. A companys degree of profitability is usually based on the income statement , which reports on the companys results of operations; 2.  Solvency   its ability to pay its obligation to creditors and other third parties in the long-term; 3.  Liquidity   its ability to maintain positive  cash flow, while satisfying immediate obligations; Both 2 and 3 are based on the companys  balance sheet, which indicates the financial condition of a business as of a given point in time. 4.  Stability the firms ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a companys stability requires the use of both the income statement and the balance sheet, as well as other financial and non-financial indicators. Financial analysts often compare  financial ratio (of  solvency, profitability, growth, etc.): Past Performance   Across historical time periods for the same firm (the last 5 years for example), Future Performance   Using historical figures and certain mathematical and statistical techniques, including present and future values, this extrapolation method is the main source of errors in financial analysis as past statistics can be poor predictors of future prospects. Comparative Performance   Comparison between similar firms. These ratios are calculated by dividing a (group of) account balance(s), taken from the balance sheet and / or the  income statement by another, for example: Net income  / equity =  return on equity  (ROE) Net income / total assets =  return on assets  (ROA) Stock price / earnings per share =  P/E ratio Comparing financial ratios is merely one way of conducting financial analysis.  Financial ratios  face several theoretical challenges: They say little about the firms prospects in an absolute sense. Their insights about relative performance require a reference point from other time periods or similar firms. One ratio holds little meaning. As indicators, ratios can be logically interpreted in at least two ways. One can partially overcome this problem by combining several related ratios to paint a more comprehensive picture of the firms performance. Seasonal factors may prevent year-end values from being representative. A ratios values may be distorted as account balances change from the beginning to the end of an accounting period. Use average values for such accounts whenever possible. Financial ratios are no more objective than the accounting methods employed. Changes in accounting policies or choices can yield drastically different ratio values. They fail to account for exogenous factors like investor behaviour that are not based upon economic fundamentals of the firm or the general economy (fundamental analysis)  [1]. Financial analysts can also use percentage analysis which involves reducing a series of figures as a percentage of some base amounts [2]. For example, a group of items can be expressed as a percentage of net income. When proportionate changes in the same figure over a given time period expressed as a percentage is known as horizontal analysis [3]. Vertical or common-size analysis reduces all items on a statement to a â€Å"common size† as a percentage of some base value which assists in comparability with other companies of different sizes  [4]. Another method is comparative analysis. This provides a better way to determine trends. Comparative analysis presents the same information for two or more time periods and is presented side-by-side to allow for easy analysis.[5]    The Report This report is divided 2 chapters Chapter: 1 Analysis of ratio calculation Profitable ratio:   1.   ROCE:- operating profits / capital employed x 100 2009= 982/4727 x 100 0.208 x 100 20.80% 2008=1718/7289 x 100 0.236 x 100 23.60% Companies can use these figure as a benchmark to see if they are making a good profit. BAE System would conclude that it’s ROCE (%) shows success relative to other firms both 2009 and 2008. However, the fall in the ration between 2009 and 2008 is a sign of a 2.80 % declined. 2. GROSS MARGIN:- gross profit/ sales x 100 2009= 779/ 20374 x 100 0.0382 x 100 3.82 % 2008= 1700/16671 x 100 0.1020 x 100 10.20 % This ratio must be treated with caution, as gross profit in the profit and loss account in sales minus costs. Since all of the overhead are ignored in this calculation, it is not as important a measure of success as net profit.   However, the fall in the ration between 2009 and 2008 is a sign of a 6.38% declined. 3. NET PROFIT:-   net profit / sales x 100 2009 = 982 / 20374 x 100 0.0482 x 100 4.82% 2008 = 1718 / 16671 x 100 0.103 x 100 10.30% The fall in the ration between 2009 and 2008 is a sign of a big declined. 2009 was 4.82 % and 2008 was 10.30 % so different between this two year are 5.48%. 4. ASSETS TRUNOVER:- sales / capital employed 2009 = 20374 / 4727 4.31 2008 = 16671 / 7289 2.29 Expressing the assets turnover ratio as so many times is traditional but the measure would be more meaningful if we called it pounds rather so many times. This ration is going up between 2009 and 2008 is a sign of a slight up. Means it’s up just only 2.02. LIQUIDITY RATIO:   1. CURRENT RATIO :- current assets / current liabilities 2009 = 8788 / 11993 0.73 2008 = 8069 / 10790 0.75 It should be noted that a maximum as well as minimum ratio is recommended. Too many current assets will limit a firm’s ability to purchase the fixed assets that are needed to produce the goods that provide the company’s profits. Consequently, a high current ratio may be an advantage in the short run but will inhibit the long term profitability of the company. Calculation of these ratio gives the result is 2009 and 2008 respectively 0.73 and 0.75 just slight declined. 2. QUICK RATIO(ACID TEST):- Quick assets / Current liabilities  Ã‚  Ã‚  Ã‚   2009 = 7901 / 11993 0.66 2008 = 7143 / 10790 0.66 The current ratio assumes that stocks and debtors are liquid assets. Firms cannot be certain that their stock will sell quickly, so that Acid test ratio is used as an alternative to the current ratio. The calculation of the Acid test ratio ignores stock in its calculation, considering only cash, bank balance and debtors as a liquid asset. Calculation of these ratio gives the result is 2009 and 2008 no change in this ratio. 3. RECEIVABLE DAYS: receivable / sales x 365   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   2009 = 3764 / 20374 x 365 0.185 x 365 68 days 2008 = 3831 / 16671 x 365 0.23 x 365 84 days This is a ratio measuring the average time a companys customers take to pay for purchases, equal to accounts receivable divided by annual sales times 365. In this calculation we can see that this ratio is falling down by 16 bays it’s good signed for company. 4. PAYABLE DAYS: payable / purchase x 365 2009 = 10218 / 20060 x 365 0.57 x 365 186 days 2008 = 9165 / 15386 x 365 0.60 x 365 219 days This is a ratio measuring how long a company is taking to pay its trade creditors. It is calculated as: 365 * Accounts Payables divided by Cost of Goods Sold. In this calculation we can see that this ratio is falling down by 33 bays it’s good signed for company. 5. INVENTORY DAYS: inventory / cost of sales x 365 2009 = 887 / 20060 x 365 0.044 x 365 16 days   Ã‚   2008 = 926 / 15386 x 365 0.060 x 365 22 days This is a ratio measuring the number of days inventory is held. As a general rule, the longer inventory is held, the greater is its risk of not being sold at full value. It is calculated as: 365 * Inventory divided by Cost of Goods Sold  Ã‚  Ã‚   . In this calculation we can see that this ratio is falling down by 6 bays it’s good signed for company. Ratio to measure risk: 1. FINANCIAL GEARING: debt / equity 2009 = 20680 / 4655 4.44 2008 = 18386 / 7234 2.54 Shareholders ought to have the upper hand because if they dont that could cause them problems as follows: Shares earn dividends but in poor years dividends may be zero: that is, businesses dont always need to pay any! Long term liabilities are usually in the form of loans and they have to be paid interest; even in bad years the interest has to be paid Equity shareholders have the voting rights at general meetings and can made significant decisions Long term liability holders dont have any voting rights at general meetings but they have the power to override the wishes of the shareholders if there are severe problems over their interest or capital repayments So, shareholders like to see the gearing ratio, the relationship between long term liabilities and capital employed, being in their favour! A shareholder of company will be unhappy with this result .because the ration is going high 1.90.       2. DIVIDEND COVER: PAT / total dividend   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚   2009 = 45 / 573.6   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   0.008   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚   2008 = 1768 / 518   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   3.41    The dividend cover ratio tells us how easily a business can pay its dividend from profits. A high dividend cover means that the company can easily afford to pay the dividend and a low value means that the business might have difficulty paying a dividend. We can see in this calculation it’s fall in very biggest so it’s not a good news for shareholder. 3. INTEREDT COVER: PBIT / interest     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚   2009 = 282 / 22   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   12.82   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚   2008 = 2371/ 23   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   103.09 The interest cover ratio tells us the safety margin that the business has in terms of being able to meet its interest obligations. That is, a high interest cover ratio means that the business is easily able to meet its interest obligations from profits. Similarly, a low value for the interest cover ratio means that the business is potentially in danger of not being able to meet its interest obligations. Calculation of these ratio gives the result is 2009 and 2008 it’s big fall in this ratio. 4. OPERATING GEARING: fixed costs / variable costs   2009 = 203 / 282 0.72 2008 = 18 / 2371 0.008 Operational gearing is the effect of  fixed cost on the relationship between sales and operating profits. If a company has no operational gearing, then operating profit would rise at the same rate as sales growth (assuming nothing else changed). Operational gearing is simple and important and often neglected. High fixed costs increase operational gearing. Calculation of these ratio gives the result is 2009 and 2008 it’s big rise in this ratio. Conclusion There is a lot to be said for valuing a company, it is no easy task. I hope that we have helped shed some light on this topic, and that you will use this information to make educated investment decisions. If you have any other questions about fundamental analysis please do not hesitate to Contact us. Ratios must not be ignored. They are still an excellent guide to performance. Conclusion should be based on the specific circumstance. In some cases, profitability ratios may be most important measure, but in emergencies, liquidity ration may be more significant. The problems and limitation involved in ration analysis should be borne in mind. References Introduction is available:   Ã‚  Ã‚   baesystems.com/AboutUs/FactSheet/index.htm Balance score card is available:   Ã‚  Ã‚   balancedscorecard.org/BSCResources/AbouttheBalance  Ã‚  Ã‚   dSc  Ã‚  Ã‚   orecard/tabid/55/Default.aspx Key facts: Defense News Annual Ranking, published June 2010 Bob Ryan (2008), financial Accounting for business, 2nd education   Ã‚  Ã‚  Ã‚  Ã‚   .uk:   Ã‚  Ã‚   cengage learning college.p. 25-35. John Wolunski and Gwen Coates (2005) A2 Business studies. Kieso, D. E., Weygandt, J. J., Warfield, T. D. (2007). Intermediate   Ã‚  Ã‚  Ã‚  Ã‚   Accounting (12th Ed.). Hoboken, NJ: John Wiley Sons, p.     Ã‚  Ã‚  Ã‚  Ã‚   1320  ISBN 0-471-74955-9. Kieso, et al., 2007, p. 1320 Kieso, et al., 2007, p. 1320 Kieso, et al., 2007, p. 1319 Roy Dodge (1997) Foundation of business accounting. NA(2009) Ratio Analysis available.www.bized.co.uk. NA(2009) Ratio Analysis calculation available:www.skymark.com NA(2009) Ratio Analysis conclusion available:   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   www.measurebusiness.com www.marketresearch.com NA(2010) about bae system available   Ã‚  Ã‚   :http:en.wikipedia.org.