PepsiCo restaurants Essay

I. Presentation The key inquiry is whether PepsiCo ought to extend its eatery business by seeking after the acquisition of CARTS OF COLORADO, a $7 million maker and merchandiser of portable food trucks and booths, and CALIFORNIA PIZZA KITCHEN, a $34 million café network in the easygoing eating fragment. II. Investigation of the fundamental problemPepsiCo has 3 primary portions: soda pops (35% of PepsiCo’s deals and 39% of its working benefits in 1991), nibble nourishments (29% of PepsiCo’s deals and 35% of its working benefits) and cafés (36% of PepsiCo’s deals and 26% of its working benefits). In the mid 1990’s PepsiCo’s three café networks (KFC, Taco Bell and Pizza Hut) were the pioneers in their separate section. PepsiCo’s senior administration accepts its capacity to move individuals inside and across divisions gives PepsiCo an upper hand in the café fragment. PepsiCo accepts their eateries perform because of their solid supervisory crews; which are created inside the company. PepsiCo might want to use their upper hand in running eateries with PepsiCo supervisors by including California Pizza Kitchen and CARTS OF COLORADO to the PepsiCo portfolio. Regardless of PepsiCo’s accomplishment with KFC, Taco Bell and Pizza Hut it experienced issues growing La Petite Boulangerie, a three-unit pastry shop chain it bought in 1982. The huge overhead for La Petite Boulangerie made the organization unrewarding and Pepsi sold it in 1987 for a $13 million misfortune. The ineffective endeavor into La Petite Boulangerie proposed that in spite of the fact that PepsiCo chiefs were talented and could be effortlessly moved across divisions; the moves would not generally ensures an effective business development. Along these lines, the fundamental issue for PepsiCo the executives is to choose whether it can effectively buy and oversee CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. This is considering the way that PepsiCo trusts it has an upper hand in the ability of its directors that was not borne out in the ineffective La Petite Boulangerie bread shop attempt. III. Suggestions PepsiCo can be ordered as a related diversifier. Around 30% of its income is part between its 3 fundamental industrialâ categories. PepsiCo’s specialty units share regular assets and abilities. Generally organizations that take a corporate methodology of related expansion play out the best (GBS_634M address notes). Along these lines on a superficial level doubtlessly enhancement by gaining CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO would be an astounding key choice. Nonetheless, in contentions depicted underneath; the proof doesn't bolster a suggestion for PepsiCo to buy Carts of Colorado or CALIFORNIA PIZZA KITCHEN. IV. Support for suggestions PepsiCo is a worthwhile organization and in this manner doesn't have to differentiate into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO to keep up it benefit. From 1987-1991 PepsiCo’s deals multiplied, pay from proceeding with tasks developed at a compound pace of over 20%, and the company’s esteem on the financial exchange significantly increased (PepsiCo eatery Case, pg. 4, and Exhibit 3). Eight key reasons NOT to broaden into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. It is poor reason for PepsiCo to expand into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO basically to diminish hazard. The café business is repetitive. A few eateries will be gainful, while some won't be productive. PepsiCo’s investors can expand hazard by buying partakes in CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO themselves. Besides, it's anything but a fitting methodology for PepsiCo the board to over-expand to ensure their own riches. Keeping up development is anything but a decent premise to broaden into CALIFORNIA PIZZA KITCHEN or CARTS OF COLORADO. Most investors would prefer to hold partakes in a little gainful organization, not a major unbeneficial organization. As an investor, there is just an advantage if PepsiCo makes a benefit. At present PepsiCo is making a benefit. Despite the fact that supervisors profit by development paying little mind to benefit or misfortune , development for development isn't a fitting motivation to enhance. Despite the fact that PepsiCo can utilize CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO to adjust income by piping money from its huge specialty units to the littler CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO specialty units; this isn't suggested. Indeed, even idea PepsiCo has the ability of doing this an individual investor can do this for himself. The counterargument would be that PepsiCo administrators can make a superior showing adjusting income than investors on the grounds that the partnership can be more duty proficient than the individual investor. Yet, this by itself is certainly not an adequate motivation to differentiate. The procurement of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO won't make cooperative energy inside the PepsiCo corporate technique. PepsiCo as of now has a Pizza section (for example Pizza Hut) and doesn't have involvement with the portable food truck section. Expanding into these two market sections won't produce corporate cooperative energy where the entire is more noteworthy than the whole of the parts. One valid justification for PepsiCo to decent variety into CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO is the sharing of framework and to make economies of degree. PepsiCo is as of now setting aside cash since they are contending in a few distinct enterprises (ie. Soda pops, nibble nourishments, and cafés). These specialty units share the help structure and along these lines the decreased expenses. While Pepsi’s economy of extension can be utilized to appropriate chips similarly just as sodas it isn't obvious that they can convey well in the specialty eatery advertise like CALIFORNIA PIZZA KITCHEN (allude back to La Petite Boulangerie disaster). If PepsiCo somehow happened to sell at least two distinct items all the while that would be gainful by making an economy of extension. For instance, if PepsiCo could appropriate Pepsi soda pops and California Pizza from a truck they would have legitimization for the procurement of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO since they would be sharing normal framework that would make them one of a kind. The uniqueness would make it exceptionally hard for contenders to mimic and would be motivation to enhance. Be that as it may, there are at present no instruments to sell California Pizza’s from a truck. Along these lines right now, sharing ofâ infrastructure is definitely not a decent legitimization for PepsiCo to expand into these two markets. It isn't evident that PepsiCo will build its market power in the event that they procure CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. PepsiCo as of now has various specialty units that purchase from a similar arrangement of providers and offer to same arrangement of clients. They have utilized this to pick up advertise power. It isn't evident that including CALIFORNIA PIZZA KITCHEN or CARTS OF COLORADO to the overlay will build PepsiCo’s piece of the pie fundamentally. It could be contended that by securing CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO PepsiCo is abusing center ability. In spite of the fact that this is commonly a valid justification to enhance by producing more income opportunity and contending in a few markets; this is certainly not a decent activity for PepsiCo in the circumstance with CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO. So as to abuse center abilities, PepsiCo’s specialty units must be connected, so they share a similar arrangement of aptitudes. All together for this procedure to be effective, the advantages to PepsiCo must be inaccessible to PepsiCo’s contenders. In the event that PepsiCo’s contenders can pick up a similar preferred position, at that point PepsiCo won't have a key advantage. In spite of the fact that the Colorado Carts are one of a kind, they can be copied by the opposition (for example California Carts, All-Star Carts, Creative Mobile frameworks). With respect to CALIFORNIA PIZZA KITCHEN, other pizza cafés can recreate the extraordinary flavors and styles of pizza. Along these lines, PepsiCo won't misuse its center skill and ought not enhance. On the off chance that PepsiCo is considering CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO as great ‘turnaround projects’ then this isn't a legitimization for enhancement. CALIFORNIA PIZZA KITCHEN is a productive organization. CALIFORNIA PIZZA KITCHEN has expanded the two deals and total compensation from 1990 to 1991. Trucks OF COLORADO has additionally indicated an expansion in deals and working pay from 1985-1991. The supervisory groups of the two organizations give off an impression of being performing admirably. Hence the ‘turnaround’ potential is certifiably not a valid justification to broaden. CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO don't fit into the PepsiCo Corporate strategyWhere does PepsiCo compete?There might be a market open door for PepsiCo in the obtaining of CALIFORNIA PIZZA KITCHEN and CARTS OF COLORADO, yet that doesn't really suggest that PepsiCo should accept the open door. The general extent of PepsiCo is on helpful nourishments and refreshments. The obtaining of CARTS OF COLORADO would unquestionably be in-accordance with PepsiCo’s focal point of giving nourishments and drinks at very much arranged areas. In any case, PepsiCo doesn't have involvement with the situation of versatile food trucks and subsequently PepsiCo would be off guard to those progressively experienced in the portable truck business. There is even less proof for a particular market open door for PepsiCo with the securing of CALIFORNIA PIZZA KITCHEN. PepsiCo as of now claims Pizza Hut and thusly has a spot in the eat in and take-out pizza business. In spite of the fact that CALIFORNIA PIZZA KITCHEN is appropriate for increasingly upscale markets with interesting flavors and tastes, Pizza Hut could present comparative one of a kind flavors and tastes. Moreover Pizza Hut has stores over the United States and universally, while CALIFORNIA PIZZA KITCHEN has a constrained geographic degree. It as of now works just 25 cafés in eight states (PepsiCo case, pg. 15). The odd p

Health Effects of Occupational Exposure: Case Study

Wellbeing Effects of Occupational Exposure: Case Study A recently selected representative at a furniture producing plant has as of late been griping of hack, chest snugness and brevity of breath. Manifestations start not long after initiating work and proceed for the duration of the day and night. They enhance the ends of the week however return when he begins work once more. What are the potential conclusions and which is the most probable? What business related variables could be included? Talk about the likely word related condition in this worker, plotting pathogenesis, hazard factors, clinical picture, demonstrative measures, protection procedures and potential results. Presentation to wood residue can lead or increment the hazard for disease of the respiratory framework and the gastrointestinal tract. A fourfold increment in hazard for sinonasal malignant growth was found among men engaged with the production of wooden furnishings, and a twofold increment in chance for gastric disease was found in the entirety of the part ventures of fundamental wood-handling (Olsen, Moller and Jensen, 1988). In this manner, such conclusion is certifiably not an ongoing wonders yet the aftereffect of continuous the study of disease transmission look into over the previous decades. Drawn out or rehashed presentation to air contaminants, for example, wood dust and different synthetic compounds identified with wood furniture assembling, for example, wood stick, wood stain and shower painting can make disturbance the respiratory framework prompting word related wellbeing ailment. Finding For this situation study, a recently enlisted worker at a furniture producing plant is grumbling of hack, chest snugness and brevity of breath. Such side effects can be analyzed by endeavoring to distinguish what is causing this awkward inclination. Side effects start not long after beginning work and proceed for the duration of the day and night for five days to enhance the ends of the week when the representative is missing from work. These indications re-start again when he profits to work for Monday. To analyze such side effects one must know about the potential dangers one is presented to and by having a sign of what could be making the pain the worker. Kuruppuge, (1998) contends that the wellbeing impacts of word related introduction to wood residue can be summed up under five classifications: poisonousness (counting dermatitis and unfavorably susceptible respiratory impacts) non-hypersensitive respiratory impacts sinonasal impacts other than disease (nasal mucociliary leeway and mucostasis) nasal and different sorts of malignant growth lung fibrosis Clinical analyze will show that these manifestations are business related since indications began straight after work and were not felt convent, that they improve when off from work and that they re-happen on returning back to work. This can be affirmed clinically by target testing by taking estimations of the lungs work previously and during work move. Such testing is called Peak Expiratory Flow (PEF) and will decide whether such side effects are brought about by being presented to word related risk at the work environment. PEF rate estimation shows how much patients can victory of their lungs in a single breath and it is helpful particularly when they are having an erupt of their respiratory infection, for example, word related asthma (OSCE Skills, 2013). The obligations alloted to this worker are obscure. Be that as it may, it is immaterial since the durance of introduction and portion sum are causing such manifestations and not simply the activity. The activity allocated could be an administrative one and not really an exchange work, yet in the event that the worker is being presented to synthetic compounds or wood dust, at that point it is the workplace that is unfortunate. Business related Factors One of the most well-known poisonousness signs from breathed in specialists in mechanical exposures is the bothering of the aviation routes, bringing about breathing troubles and even demise for the uncovered individual (Dallas, 2000). Being presented to wood residue and synthetic compounds identified with wood furniture producing at all phases of wood handling can cause torment manifestations which can be of an inconvenience to both upper and lower respiratory tract. For a long time, wood dust was viewed as an aggravation dust that disturbed the nose, eyes, or throat, yet didn't cause perpetual medical issues (Work Place Alberta, 2009). In any case, the study of disease transmission explore considers demonstrate that presentation to wood dust for a long haul may prompt hypersensitivities and malignant growth. Wood dust is a potential wellbeing danger since wood particles from procedures, for example, sanding and cutting become airborne. Breathing these particles for an extensive str etch of time may cause unfavorably susceptible respiratory side effects, mucosal and non-hypersensitive respiratory manifestations, and malignant growth. Poisonous synthetics that are utilized for furniture fabricating are likewise inconvenience to word related wellbeing. These synthetics can be assimilated into the body through the skin, lungs, or stomach related framework and cause impacts in different pieces of the body. The significant carpentry forms are debarking, sawing, sanding, processing, lathing, boring, facade cutting, chipping, mechanical defibrating and wood stain or shower painting. From the tree felling stage onwards through the different phases of carpentry and assembling forms, laborers are presented to airborne risk. Numerous people create asthma following working environment presentation, and a few asthmatics endure extra incitement following the inward breath of certain modern poisons and the inward breath of wood cleans, for example, has been ensnared in the tw o circumstances (Dallas, 2000). Hazard Factors Wood work activities create cleans of various molecule sizes, focuses, and organizations. Molecule size conveyance contemplates have demonstrated that the significant bit of airborne wood dust is contributed by particles bigger than 10 Â µm size which can be caught adequately in the nasal sections on inward breath and for which inhalable mass testing is generally suitable. Inhalable Particulate Matter (IPM) inspecting is the ecological estimation which is most intently prescient of the danger of creating nasal malignant growth (Hinds, 1988). As per the ISO (International Standard Organization), inhalable residue is characterized as the mass division of all out airborne particles which is breathed in through the nose and mouth (ISO, 1995). Pathogenesis Clinical Pictures The human respiratory framework is a progression of organs answerable for taking in oxygen and ousting carbon dioxide. In word related Health, infections and states of the respiratory framework can be brought about by the inward breath of remote items, for example, fine residue synthetic compounds, allergens and different aggravations. The human respiratory framework has impartial instrument against airborne dangers. (Dallas, 2000) clarify in detail that the nose has fine hair as bleeding edge boundary channel for dust which isn't more noteworthy than 5 femtometer (Fm). The trachea, additionally called the windpipe, channels the air that is breathed in. It branches into the bronchi, which are two cylinders that convey air into the lungs. This fine residue is caught in the nose, trachea and primary bronchi and it tends to be cleared by hacking and by unique body cells that pulverize microscopic organisms and infections. Be that as it may, dust which is better than 5 Fm will go further in the lungs, arriving at the bronchioles, alveolar pipes known as alveoli and settle there. These will liable to cause extreme touchiness responses word related asthma or excessive touchiness pneumonitis (aggravation of the dividers of the air sacs and little aviation routes), lasting obstructive infection and diffuse lung fibrosis which may prompt word related asthma or malignant growth in the respiratory tract framework. Extreme touchiness pneumonitis has all the earmarks of being activated when little particles infiltrate profoundly into the lungs where they trigger an unfavorably susceptible reaction (Work Place Alberta, 2009). Both (Kuruppuge, 1998) and (Dallas, 2000) portray that underlying impacts can create inside hours or following a few days following presentation and are regularly mistaken for influenza or cold side effects (cerebral pain, chills, perspiring, queasiness, windedness, and other fever indications). Snugness of the chest and shortness of breath regularly ha ppen and can be serious. With presentation over an extensive stretch of time, this condition can intensify, making perpetual harm the lungs. The dividers of the air sacs thicken and solidify, making breathing troublesome. Word related asthma grows simply after an underlying side effect free period or presentation, which causes breathing troubles because of irritation of bronchi and bronchioles. This causes a limitation in the wind current into the alveoli. Two kinds of hypersensitive response can happen in the lungs. Diminished lung limit is brought about by mechanical or substance disturbance of lung tissue by the residue. This bothering makes the aviation routes tight, diminishing the volume of air taken into the lungs and creating shortness of breath. It for the most part sets aside a long effort to see a decrease in lung limit. Constant Obstructive Pulmonary Disease (COPD) is the convergence of three related conditions, for example, incessant bronchitis, interminable asthma, and emphysema which is a dynamic illness that makes it hard to inhale (Zimmermann, 2012). Avoidance measures to improve plants and conceivable result. By and by, there must be a qualification between the various sorts of wood residue and synthetic compounds that is generally utilized. This is especially the situation for littler art organizations in Malta which the sorts of work and kinds of wood and working materials are continually changing, and a wide range of exercises happen in a little territory. The hazard factor peril ought to be limited to zero and individual defensive gear ought to be the final hotel as plot in the European structure order (Directive 89/391 EU, Art. 6). The business must take all the important estimations to concentrate on the general decrease of residue levels as limited by L.N. 36 of 2003, Articles 4, 5 and 6. This goal must be sought after paying little mind to the potential malignant growth hazards as residue and synthetic concoctions convey a general hazard to wellbeing, since it additionally impact the work process and item quality. The business must make an exact investigation of the current dangers and ought to

Great Depression Essay Topics

Great Depression Essay TopicsThe Great Depression essay topics vary a lot, depending on the major topic. The Great Depression essay topics include the great depression in the United States, the economic meltdown and the banking crisis. These themes are the ones that will lead you to certain answers, that means knowing which one is most appropriate.American writers have been faced with this kind of a tough situation since the beginning of the twentieth century. The only thing that has changed about the condition is that it is now officially acknowledged that this type of economic crisis can bring about a severe condition.The economic crisis has increased its rate of occurrence over the years and this causes the general opinion to change. On the other hand, a person who is involved in writing the Great Depression essay topics should be realistic, that is, should know the current status of the situation. We all have a way of asking ourselves questions.The Great Depression essay topics s hould not only cover the recent events but also involve the past history. People who are new to the topic should find out a few facts and learn how things were during the time of the Great Depression. This will help them understand the current problems in a much better way. There is no other more satisfying than to read a good Great Depression essay topics.Once the writer has found the right content, he or she should then come up with a title for the topic. The title must have as many important points as possible. Therefore, the title should be a reflection of the kind of question that has been asked.The Great Depression essay topics will only succeed if they give readers an idea of what they are going to write. All they have to do is to make a creative title, use the correct content and write a very good essay.Great Depression essay topics will always give a clear picture of the current status of the subject. It will show the person's level of knowledge in the subject. The essay to pics should be published in a journal of the same topic and this will allow for different people to give their feedback.

Picking the Right Security Certification

As the world gets more connected, it also gets less safe. And as more and more information is exchanged via email and websites, and more folks buy stuff online, more data and money is at risk than ever before. That’s why those with technical certifications in security are becoming more and more in demand. But there is a lot to choose from; which one might be right for you? We’ll give an overview of the most popular, and in-demand, security certifications you can get. For this article, we’re going to look at vendor-neutral certifications, which means specialized credentials from security companies like CheckPoint, RSA, and Cisco won’t be included. These certifications teach general security principals  and will have the widest range of usability. CISSP The CISSP, from the International Information Systems Security Certification Consortium, known as (ISC)2, is generally considered the hardest security title to get, and the most well-regarded as well. How hard is it? You’re not even eligible unless you have five years of security-specific experience. It also requires an endorsement by someone who can attest to your experience and qualifications. Even if you pass the exam, you may still be audited. That means (ISC)2 can investigate and make sure you have the experience you claim to have. And after that, you need to recertify every three years. Is it worth it? Most CISSPs would tell you yes  because the CISSP certification is the name hiring managers and others know. It verifies your expertise. As security expert Donald C. Donzal of The Ethical Hacker Network says, many consider the CISSP â€Å"the gold standard of security credentials.† SSCP The baby brother of the CISSP is the Systems Security Certified Practitioner (SSCP), also by (ISC)2. Like the CISSP, it requires passing an exam, and has the same rigorous checks in place, like needing an endorsement and the possibility of being audited. The main difference is your knowledge base is expected to be smaller, and you only need one year of security experience. The test is much easier, as well. Still, the SSCP is a solid first step into your security career  and is backed by (ISC)2. GIAC The other major vendor-neutral certification organization is the SANS Institute, which oversees the Global Information Assurance Certification (GIAC) program. GIAC is SANS’ certification arm. The GIAC has multiple levels. The first is the Silver certification, which requires passing a single exam. It has no real-world component, making it of dubious value in the eyes of potential employers. All you really need to do is be able to memorize the material. Above that is Gold certification. This requires writing a technical paper in your area of expertise in addition to passing a test. This adds significantly to the value; the paper will demonstrate an individual’s knowledge of a subject; you can’t fake your way through a technical paper. Finally, the Platinum certification is at the top of the heap. It requires a proctored, two-day lab practical after achieving Gold certification. It’s given only at certain times of year  during a SANS conference. This could be a stumbling block to some certification-seekers, who may not have the time or money to fly to another city to take a lab test over a weekend. If, however, you make it through that process, you’ve proven your skills as a security expert. Although not as well known as the CISSP, a GIAC Platinum credential is certainly impressive. Certified Information Security Manager (CISM) CISM is administered by the Information Systems Audit and Control Association (ISACA). ISACA is more well known for its CISA certification for IT auditors, but CISM is making a name for itself as well. The CISM has the same experience requirement as the CISSP – five years of security work. Also, like the CISSP, one test must be passed. A difference between the two is that you need to do some continuing education every year. The CISM appears to be as rigorous as the CISSP, and some security pros think it is actually more difficult to get. The reality, though, is that it is still not as well known as the CISSP. That should be expected, however, given that it didn’t exist until 2003. CompTIA Security+ On the lower end of security certifications, CompTIA offers the Security exam. It consists of one 90-minute exam with 100 questions. There is no experience requirement, although CompTIA recommends two or more years of security experience. Security should be considered entry-level only. With no required experience component and a simple, short test, its value is limited. It might open a door for you, but only a crack.

Life Is Suffering Siddhartha Gautama, The Man Who Would...

Sean Hronek Keith Bickley Intro to World Religions 04/05/17 Life is Suffering Siddhartha Gautama, the man who would be Buddha, set out when he was very young to find something. He had been sheltered for all his life, given everything he could ever desire, but even so he was not satisfied or content with his existence. When he exited his confinement, he realized the world around him was suffering, and he did not know what to do. That is what he went looking for, a cure, a cure to human suffering. He never found it in his lifetime, though he knew of its existence and knew he would reach it eventually. He did, however, discover a treatment that could lead to the cure. It was this discovery, brought about by spending a little more than a month†¦show more content†¦Some schools of Buddhism do think that gods, devils, and spirits may very well exist, but these entities did not bring the universe into existence and likely have their own problems to deal with. In other words, there’s no grand plan, just a great spinning cosmos that we all happen to liv e in. It’s similar to the views held by Friedrich Nietzsche, a man most famous for coining the phrase â€Å"God is dead†. Now while that may seem straightforward enough at a passing glance, most people don’t know the full quotation. Truthfully that might be for the best, given that Nietzsche’s actual meaning is a lot more depressing than simple deicide. â€Å"God is dead. God remains dead. And we have killed him. How shall we comfort ourselves, the murderers of all murderers? What was holiest and mightiest of all that the world has yet owned has bled to death under our knives: who will wipe this blood off us? What water is there for us to clean ourselves? What festivals of atonement, what sacred games shall we have to invent? Is not the greatness of this deed too great for us? Must we ourselves not become gods simply to appear worthy of it?† This is not a cry of victory; this is a cry of anguish. The phrasing is meant to be somber poetry, which it is, but it can be hard to decipher his actual meaning as a result. What Nietzsche is trying to say is that in the wake of the Enlightenment and the perfection of the Scientific Method, previouslyShow MoreRelated The Use of Hesse Siddhartha to Reflect the Legendary Atmosphere of Buddha1486 Words   |  6 PagesThe Use of Hesse Siddhartha to Reflect the Legendary Atmosphere of Buddha Siddhartha is one of the names of the historical Gautama, and the life of Hesses character resembles that of his historical counterpart to some extent. Siddhartha is by no means a fictional life of Buddha, but it does contain numerous references to Buddha’s philosophies and his teachings. Although Hesse’s Siddhartha is not intended to portray the life of Gautama the Buddha but he used the name and many other attributedRead MoreLife Leading Up to Siddhartha Gautamas Awakening Essay1358 Words   |  6 PagesLife Leading Up to Siddhartha Gautamas Awakening It is thought by many that the Buddha, Siddhartha Gautama, was born having this title and did not have to endure any hardships throughout his life. Despite these thoughts, Siddhartha Gautama was not born the Buddha, but had to find his own way to achieve enlightenment and become the Buddha. Before and after Siddharthas birth, Siddharthas mother and father knew that their son was special and had two paths in lifeRead MoreLife Of The Buddha ( Siddh Ā Rtha Gautama Buddha Essay1195 Words   |  5 Pagesabout the life of the Buddha (SiddhÄ rtha Gautama Buddha) because I remember learning about him in Sunday school, and as I recall, he had a very interesting biography. I also wrote about him because of the way I kind of respect him. I mean, he could’ve become another king like his father, yet he gave that up to help people! The Buddha, or Gautama Buddha, as we all know is the creator of the religion Buddhism. What you may not know about is his life before he becameRead MoreSiddhartha Gautama s Life And Spiritual Religion1467 Words   |  6 PagesSiddhartha Gautama’s Life Spiritual religion is one of the main aspects of human civilization. Buddhism is one of four religions that have the most followers besides Christianity, Judaism, and Hinduism. Siddhartha Gautama, called Buddha, was the founder and awakened leader of Buddhism. His life has a great influence on this religious belief. Siddhartha’s Birth Siddhartha Gautama was born as the royal prince at Lumini (a place in Nepal now) in 6th century B.C.E. His father was the king of a clanRead MoreSiddhartha Gautama And Its Impact On Asian Culture1627 Words   |  7 PagesSiddhartha Gautama, also known as Gautama Buddha or just simply the Buddha was born in what is now known as Nepal sometime between c. 563 BCE and c. 480 BCE into the caste system with his caste being the Kshatriya, the caste of royalty or the military elite. He was born to Ã…Å¡uddhodana, a head chief of the Shakya tribe, and Maya, a princess. Siddhartha’s father held a naming ceremony for a five day old Siddhartha where eight Brahmin priests predicted that Siddhartha would either be a great holy manRead MoreA Brief Overview of Buddhism Essay1338 Words   |  6 Pages565 B.C. with the birth of Siddhartha Gautama. The religion has guidelines in two forms in which Buddhist followers must follow. These are the quot;Four Noble Truthsquot; and the quot;Eightfold P ath. It all started in about 565 B.C. when Siddhartha Gautama was born. He was a young Indian prince born to the ruler of a small kingdom that is now known as Nepal. Gautamas father was said to have been told by a prophet that if Gautama saw the sick, aged, dead, or poor he would become a religious leaderRead MoreTheology: Overview of Buddhism1327 Words   |  5 Pagesteachings of Buddha, who was born Siddhartha Gautama in Nepal around 563 B.C.E. and lived in Nepal and India. Siddhartha was a privileged man who withdrew from the world, learned and meditated, and achieved the Enlightenment that made him Buddha. Buddhism has undergone schisms and evolutions but has some core beliefs such as Nirvana, Anatta and Dependent Arising. In addition, the Buddhas teaching centered on the Four Noble Truths and the Eightfold Path to end the cycle of suffering and achieve EnlightenmentRead MoreTaking a Look at Buddhism856 Words   |  3 Pagesrespect for the teachings of Buddha. Founded by Siddhartha Gautama when at 35 became enlightened the â€Å"awaken one†. Being born a prince royal blood, Gautama was born in the Shakaya Republic in the Himalayan foothills. He was part of Sakayas clan who his father Suddhodona was the king of. It was fore told to his father that his son was to be a great ruler or a great holy guy. Knowing this Siddhartha’s father build three palaces and try to shield him from human suffering. But try as he might, his fatherRead MoreThe Historical Biography Of Siddharta Gautama1423 Words   |  6 PagesSiddharta Gautama is mired with legend and religious influence. Who is Siddharta Gautama? Siddharta Gautama is Buddha. And that is the primary problem; most believe that Buddha is a person, when in fact it is a personal state of religious enlightenment. I hope to correct this major misconception for the reader, with a more accurate account of the life of Siddharta Gautama and in the process explain why the transformation from a normal man in turn became a God. Reliable factual data on the life of SiddharthaRead MoreAnalysis Of Queen Maya s Queen 911 Words   |  4 Pagesexplains how Siddhartha Gautama was born and got up and walked towards the way of a great religious leader. A few weeks later his mother had died and his father wanted to make sure that Siddhartha Gautama would be the next great king and made him believe that there was only on life and that was the palace life. When Siddhartha Gautama grew up and told his driver to take him to the park. He made four trips and saw different things in each trip. The first trip he saw old age and ask if that would happen

Tesco Financia Statement & Ratio Analysis - Free Solution

Question: Analyse the financial performance of the two companies based on your calculations, identifying and discussing the purposes of calculating those ratios and the weaknesses of ratios analysis. Answer: Introduction The main objective of accounting is to provide information to the decision makers (Peterson Drake and Fabozzi, 2012). Financial statement is an organized statement which is prepared to know the operating performance, financial position, disposal of surplus and movement of short term assets, cash position and total fund position. Financial statement analysis is the examination of historic financial data with the use of several financial tools such as Ratio analysis, Cash Flow statements, Profit Loss Account and Balance sheet. The main purpose of analyzing financial records is to evaluate the companys present performance and estimate the future potential and risk appetite of the company. These statements generates those information which are valuable for the organization, ensure the quality of earnings and helps in doing the SWOT analysis of a company. In this study for financial analysis of two companies namely Tesco and Sainsbury(Anon, 2015) are taken into consideration and their standard of performance are analyzed on the basis of three accounting period 2012, 2013 and 2014 (Anon, 2015). Company background Tesco is one of the largest retailers in the world. It was founded by Jack Cohen in the year 1919 from a small market at London. As the time passes this company grows and today it is operating across 12 countries in the world. They employ almost 530000 people and serve millions of customer every week. Their main two competitors in the world market are Wal-Mart and Carrefour. Sainsbury is another renowned company in retail sector and older than Tesco company. It was formed in 1869 and today it operates over almost 12000 supermarket and convenience store. They have employed almost 161000 persons who served on behalf of the company. They demanded that they provide best possible service to their customers among all the retail sectors in the same category (Collis, Holt and Hussey, 2012). Financial performance analysis TESCO Sainsbury- A comparative analysis As I have already mentioned that for performance analysis of a particular firm several techniques are used and ratio analysis is one of the important factors among those all. So here the analysis is mainly done on the basis of Ratios (Campilho and Kamel, 2012): (Collings, 2015). Profitability ratios Profitability ratios as the name suggest are those ratios which are used to measure the profitability of a company. Profitability means the return achieved by the efforts of management on the fund invested by the owners of the business. It is a net result of large number of policies and decisions. Long term profitability is vital for a companys survival and benefits received by the shareholder. There are many ratios which can indicate the profitability but out of those some main ratios are Gross profit ratio, Net Profit Ratio and Operating profit ratio (Drury, 2012). Gross Profit ratio is calculated on the basis of net sales revenue. It represents the percentage of gross profit earned by a company on sales. Gross profit means the profit earned from direct trading activities. The gross profit ratio of Tesco for the year 2014 is 4010/63557*100=6.3%, for the year 2013 is 4154/63406*100=6.6% and for the year 2012 is 5261/64539*100=8.2%. A high Gross Profit ratio indicates a good profitability. However, in Tesco Company is balance sheet analysis it is found that, their Gross Profit ratio in 2013 and 2014 were 6% (approx) compared to 8% in 2012. The gross profit ratio of Sainsbury for the year 2014 is 1387/23494*100=5.9%, for the year 2013 is 1277/23303*100=5.5% and for the year 2012 is 1211/22294*100=5.4%. The reduction in Gross Profit ratio may be due to the fewer amounts of sale in 2014 and higher amount of Cost of sales in 2013 whereas in case of Sainsbury Company, though their Gross Profit ratio is less than Tesco but it is in increasing trend (Robinson, 2012). Operating Profit ratio is another tool used for profitability evaluation. Operating profit means the profit which can be derived from the Gross Profit after deducting the operating expense from the Gross profit. This approach is efficient than Gross Profit approach as the analysis is based on more accurate financials. The operating profit ratio of Tesco for the year 2014 is 2631/63557*100=4.1%, for the year 2013 is 2382/63406*100=3.8% and for the year 2012 is 3985/64539*100=6.2%. In Tesco, the trend of the operating ratio is in a zigzag manner as in 2012 it was 6%, in 2013, it was 3% and in 2014, it was 4%. Overall, the ratio is drastically decreases by 50% (approx) in 2013 and though it has increased to some extent in 2014 still it is not much satisfactory. The operating profit ratio of Sainsbury for the year 2014 is 1009/23494*100=4.2%, for the year 2013 is 882/23303*100=3.8% and for the year 2012 is 874/22294*100=3.9%. In Sainsbury Company, it maintains a stable growth as this ratio is not fluctuating widely. Net Profit ratio is the most accurate technique used for profitability analysis as the net profit is derived after eliminating all indirect expenses from operating profit. The net profit ratio of Tesco for the year 2014 is 970/63557*100=1.53%, for the year 2013 is 24/63406*100=0.04% and for the year 2012 is 2814/64539*100=4.36%.The Net Profit ratio of Tesco shows a drastic fall in the year 2013 from 4.36% to 0.04%. In this year the company had to adjust a huge amount of loss from its discontinued operations which may be one of the reasons of this fall. In 2014, they showed an increasing trend compare to previous year. The net profit ratio of Tesco for the year 2014 is 970/63557*100=1.53%, for the year 2013 is 24/63406*100=0.04% and for the year 2012 is 2814/64539*100=4.36%.Sainsbury also did not perform very well but its condition is better than Tesco. Liquidity ratios Liquidity ratios show the liquidity position of a company. Liquidity means the amount of cash and cash equivalents the firm has on hand and the amount of cash it can arrange in a short period of time. Liquidity is essential for smoothly conducting of business activities. If the firm has a poor liquidity position it may not able to make timely payments to the creditors and, in effect will not be in a position to buy goods and service further on credit. High liquidity can help to grasp different market opportunities. The most two important liquidity ratio is current ratio and quick ratio (Alan Russell, R. Langemeier and C. Briggeman, 2013); (Collis, Holt and Hussey, 2012). Current ratio is also known as the working capital position ratio. It shows whether a companys short term debt is capable of paying off its short term liabilities. Higher the ratio better will be the companys position. The ideal ratio is always 2:1 i.e. for 1-rupee debt there should be rupees two as current asset. The current ratio of Tesco for the year 2014 is 13085/20206=0.65, for the year 2013 is 12465/18703=0.67 and for the year 2012 is 12353/19180=0.64. In Tesco Company, the current ratio is not at all in a good position as in all the 3consequtive years the ratio is below 1 i.e. there are not enough current assets to pay of the current liabilities. The current ratio of Sainsbury for the year 2014 is 1612/4847=0.33, for the year 2013 is 1677/4667=0.36 and for the year 2012 is 1572/4651=0.34. In Sainsbury Company also the ratio is too bad rather it is in diminishing trend. Quick ratio is also known as the Acid Test Ratio. This ratio further redefines the liquidity by measuring the quick assets and quick liabilities. These ratios exclude those items which are difficult to turn into cash like inventory, prepaid expense. The reason for the omission of stock from the current asset may be that stock can be valued in different ways by different firms. Quick ratio is often compared with current ratio. If the quick ratio is comparatively higher it indicates the dependency on the inventory. The quick ratio of Tesco for the year 2014 is 9509/20206=0.47, for the year 2013 is 8721/18703=0.47 and for the year 2012 is 8755/19180=0.46. In case of this ratio also the Tesco Company shows an unsatisfactory image as this is also below 1 it implies the company does not have enough cash and cash equivalent to pay off its liabilities. The quick ratio of Sainsbury for the year 2014 is 1612/4847=0.33, for the year 2013 is 1677/4667=0.36 and for the year 2012 is 1572/4651=0.34. One interesting thing happened in case of Sainsbury because in Balance sheet the company does not have any inventory balance so the quick ratio is same as its current ratio. Efficiency ratios Each performance has some standard and when the performance goes beyond the standard it is known to be an efficient performance. The efficiency ratios are the indicator of measuring the efficiencies. Receivable collection period, inventory turnover, interest coverage ratio etc are the commonly used efficiency indicators (Foroughi, 2012). Asset turnover ratio is indicating the availability of total assets on the basis of sales revenue earned. It also reveals the extent of utilization of the total asset into the business. The ratio proves the efficiency of the management in operational activities. Higher the ratio better will be the position. The asset turnover ratio of Tesco for the year 2014 is 50164/63557=1.27, for the year 2013 is 50129/63406=1.26 and for the year 2012 is 50781/64539=1.27. Tesco Company have almost stagnant turnover ratio among the three periods. The ratio above 1 indicates that the company is able to earn more than rupee 1 by its sales revenue after utilizing rupee 1 as asset. The asset turnover ratio of Sainsbury for the year 2014 is 10485/23949=2.28, for the year 2013 is 10441/23303=2.23 and for the year 2012 is 10342/22294=2.16.The Asset Turnover Ratio of Sainsbury is too good as it is more than 2 in three years representing that their revenue is almost double of their assets. Receivables collection period show the time allowed to debtors. It is the lag of time interval for collecting the dues from the debtors. It can also be termed as debtors collection period. A high turnover ratio indicates that the company cannot be able to collect the amount from their customers as a result cash is being blocked into it and its liquidity position is affected. Here in the ratio calculation it is found that their receivable collection period is low it indicates that the company is having a good receivable management policy as low the collection period means higher frequency of collection and lower the risk of bad debt. The receivable turnover ratio of Tesco for the year 2014 is 2190/63557=29.02, for the year 2013 is 2525/63406=25.11 and for the year 2012 is 2657/64539=24.29. Thus, the collection period for Tesco is in 2014 is 12.58, in 2013 is 14.53 and in 2012 is 15.03. The receivable turnover ratio of Sainsbury for the year 2014 is 1428/23949=16.77, for the year 2013 is 1254/23303=18.58 and for the year 2012 is 1099/22294=20.29. Thus, the collection period for Sainsbury is in 2014 is 21.76, in 2013 is 19.64 and in 2012 is 17.99. In case of Sainsbury, also the collection period is low though the frequency is less then Tesco. Payable turnover period is just opposite like the receivable collection period. It indicates the credit period allowed by the suppliers for making payment to them. A high turnover period indicates high obligation. The payable turnover ratio of Tesco for the year 2014 is 10595/59547=5.62, for the year 2013 is 11094/59252=5.34 and for the year 2012 is 11234/59278=5.28. Thus, the payable period for Tesco is in 2014 is 64.94, in 2013 is 68.34 and in 2012 is 69.17. The payable turnover ratio of Sainsbury for the year 2014 is 4457/22562=5.06, for the year 2013 is 4571/22026=4.82 and for the year 2012 is 4494/21083=4.69. Thus, the payable period for Sainsbury is in 2014 is 72.10, in 2013 is 75.75 and in 2012 is 77.80. Both Tesco and Sainsbury had too high payment period of 69 days and 77days respectively in 2012 and after that it has reduced its period to 64 days and 72 days in 2014. Inventory turnover period is the time lag which represents how many times inventory is ordered in a particular year. On the other terms, it shows the frequency in which inventory is cleared and new order can be made. A low inventory turnover indicates a good inventory management policy. The inventory turnover ratio of Tesco for the year 2014 is 3576/59547=16.65, for the year 2013 is 37445/9252=15.83 and for the year 2012 is 3598/59278=16.48. Thus, the inventory turnover period for Tesco is in 2014 is 21.92, in 2013 is 23.06 and in 2012 is 22.15. For the three consecutive years, Tesco have a good inventory turnover, which indicates that it has a well-organized inventory management policy and there is less chance of inventory pileup. The inventory turnover ratio of Sainsbury is not possible as it has no inventory given in its balance sheets. There is no balance available in the B/S of Sainsbury regarding the inventory so it is not possible to calculate the Inventory Turnover. Interest coverage ratio is used for calculating the financial stability of the company. It shows the number of time a company is able to pay its interest obligation based on earned profit. It is calculated by dividing the EBIT by interest. A high interest coverage period indicates a high financial leverage. The interest coverage ratio of Tesco for the year 2014 is 2337/78=29.96, for the year 2013 is 2134/82=26.02 and for the year 2012 is 3949/114=34.64. The interest coverage ratio of Sainsbury for the year 2014 is 924/26=35.54, for the year 2013 is 804/32=25.13 and for the year 2012 is 823/35=23.51. Tescos ratio analysis calculation shows that it had a very good interest coverage ratio in 2012 but all on a sudden it reduced by almost 50% in 2013 and then again it started increasing in 2014 whereas Sainsbury has 23.51 as interest coverage in 2012 which increase to 35.53 in 2015 indicating an upward movement of interest paying capability. Different group of investors provides long-term capital of a business. Gearing is a method of comparing how much the long-term capital of a business is financed by equity and how much is provided by fixed charged capital investors who are entitled to get interest before the payment of dividend to the shareholders. Financial gearing ratio can also be termed as Debt Equity ratio. It is showing the proportion of external debt of a company on which the company has to pay fixed interest obligation to the internal debt, which is known as the owners equity. The ideal ratio is 1:1. The debt equity ratio of Tesco for the year 2014 is 2009/14722=0.14, for the year 2013 is 887/16661=0.05 and for the year 2012 is 1966/16623=0.12. The debt equity ratio of Sainsbury for the year 2014 is 388/4369=0.09, for the year 2013 is 89/4259=0.02 and for the year 2012 is 338/4233=0.08. Both companies are having financial gearing ratio less than 1 it implies that these companies are more dependent on their internal fund (S and Suresh Kumar, 2013). Equity gearing ratio is the ratio between total asset and total equity. By this ratio we can say that how a company utilizes its owners equity for acquiring its assets. A higher ratio indicates an efficient performance. The equity gearing ratio of Tesco for the year 2014 is 14722/50164=0.29, for the year 2013 is 16661/50129=0.33 and for the year 2012 is 16623/50781=0.33. The equity gearing ratio of Sainsbury for the year 2014 is 4369/10485=0.42, for the year 2013 is 4259/10441=0.4079 and for the year 2012 is 4233/0.409=0.08. For the Tesco equity gearing ratio, is good as it is less than 1 and gradually decreasing. For Sainsbury it is in stagnant condition. Weakness of ratio analysis There are few limitations of ratios, which are as follows Ratios are calculated based on past results, so, proper prediction for future may not always be possible. Comparison of the ratios with the other units will be meaningless if the uniformity has not been observed in the preparation of the accounts of these units. Financial system suffers from a number of limitations. When the ratios are constructed from those financial statements, ratios suffer from the inherent weakness of the accounting system itself. Accounting ratios are simply clues. They do not indicate any cause of difference. Therefore they are not considered as basis for immediate conclusions. Ratios are not free from individual bias, because accounting is manmade. Two same type of business with the same level of operation may show highly incomparable financial results. While constructing a ratio arithmetic window dressing is possible by concealing vital facts and presenting the financial statements in such a fashion as to show the business in a better position than it actually is (Seal, Garrison and Noreen, 2012). Recommendations Following are my recommendations for the two companies From the Tesco companysbalance sheet it is observed that it has suffera huge loss from its discontinuing operations as a result their net profits are reducing, they should try to increase their revenue by cutting down unnecessary costs (Karelskaya and Zuga, 2012); (Kieso, Weygandt and Warfield, 2012). For Sainsbury Company they should change their payable management policy. It requires paying their dues in less time interval as a result their current ratio may improve. The same suggestion is applicable for Tesco also. The financial position of Sainsbury is not too bad so they can trade with more of debt capital for getting the benefit of trading on equity. Their interest coverage ratios are also quite good. Tesco should make new investments in different financial assets and instruments, which will give a fixed return to their company, and that return can be utilized for further expansion. The cash flow statement of Tesco shows a negative balance generated from all activities. The company should make proper investigation for revealing the reasons behind it (Kusano, 2012). Lastly, both the companies are very reputed company so they should try to take the benefit of competitive advantage by using their core competencies so that they can able to sustain in this competitive market. Conclusion Conclusion means the end report of the project or the summary of the whole study in brief. This study is concerned with the financial analysis of two firms on the basis their ratios. But reaching any particular conclusion only on the basis of ratio is not too accurate because there are some other factors influencing the financial decision. But if we want to incorporate all these factors into this study then it will be too elaborative. So here the initiative is taken to conclude the report on the basis of Ratios only (Llewelyn, 2012); (Marilena and Alice, 2012). Ratios are calculated from the various accounting data for establishing the logical relationship between them and for explanation and analysis of various accounting information. From the above discussions, relating with ratios the following conclusions can be made. Tesco Company has a higher Gross profit margin than Sainsbury though but later its fails to maintain its position and net profit ratio become too low. The liquidity position of Tesco is comparatively better than the other one. From the view point of efficiency in all the cases Sainsbury shows better result than Tesco except in Payable management policy. Sainsbury Company does not show any inventory amount though it reduces the dependency on inventory but it is not at all a good sign. So I would like to conclude that the business of Sainsbury is more consistent than the Tesco and both companies should take some measures to overcome their liquidity and profitability crunch (Goodhart, 2013): (Jury, 2012). References Alan Russell, L., R. Langemeier, M. and C. Briggeman, B. (2013). The impact of liquidity and solvency on cost efficiency. AgriculturalFINANCE Review, 73(3), pp.413-425. Anon, (2015). 1st ed. Anon, (2015). 1st ed. Campilho, A. and Kamel, M. (2012). Image analysis and recognition. Berlin: Springer. Collings, S. (2015). Interpretation and Application of UK GAAP. Hoboken: Wiley. Collis, J., Holt, A. and Hussey, R. (2012). Business accounting. Houndmills, Basingstoke, Hampshire: Palgrave Macmillan. Drury, C. (2012). Management and cost accounting. Andover: Cengage Learning. Foroughi, K. (2012). Market-consistent valuations and Solvency II: Implications of the recent financial crisis. Br. Actuar. J., 17(01), pp.18-65. Goodhart, C. (2013). Ratio controls need reconsideration. Journal of Financial Stability, 9(3), pp.445-450. Jury, T. (2012). Cash Flow Analysis and Forecasting. Hoboken: Wiley. Karelskaya, S. and Zuga, E. (2012). BALANCE-SHEET THEORY OF A.P. ROUDANOVSKY.ecoman, 17(1). Kieso, D., Weygandt, J. and Warfield, T. (2012). Intermediate accounting. Hoboken, NJ: Wiley. Kusano, M. (2012). Does the Balance Sheet Approach Improve the Usefulness of Accounting Information?. The Japanese Accounting Review, 2(2012), pp.139-152. Llewelyn, H. (2012). Likelihood ratios are not good for differential diagnosis. BMJ, 344(may28 1), pp.e3660-e3660. Marilena, Z. and Alice, T. (2012). The Profit and Loss AccountMajor Tool for the Analysis of the Company's Performance. Procedia - Social and Behavioral Sciences, 62, pp.382-387. Mook, L. (2013). Accounting for social value. Toronto, ON: University of Toronto Press. Peterson Drake, P. and Fabozzi, F. (2012). Analysis of financial statements. Hoboken, N.J.: Wiley. Robinson, T. (2012). International financial statement analysis workbook. Hoboken, NJ: Wiley. S, M. and Suresh Kumar, S. (2013). Proceedings of the fourth International Conference on Signal and Image Processing 2012 (ICSIP 2012). New Delhi: Springer. Seal, W., Garrison, R. and Noreen, E. (2012). Management accounting. London: McGraw-Hill Higher Education. Appendix Formulae of ratios Gross profit Ratio (Gross profit/Net Sales Revenue)*100 Operating profit Ratio (Operating profit /Net sale revenue)*100 Net profit Ratio (Net profit/Net Sales Revenue)*100 Current Ratio (current asset/Current liabilities) Quick Ratio (Quick asset/Quick liabilities) Asset Turnover Ratio (Revenue/Total asset) Receivable Collection period (365/Receivable turnover) Payable payment Period (365/Payable turnover) Inventory Turnover Period (365/Inventory turnover) Interest coverage ratio (EBIT/interest payment) Financial gearing ratio (Debt/Equity) Equity Gearing Ratio (Equity/Total asset) Tesco Sainsbury Profitability Ratios 2014 2013 2012 2014 2013 2012 Gross Profit() 4010 4154 5261 1387 1277 1211 Revenue() 63557 63406 64539 23494 23303 22294 Gross profit ratio 6.3% 6.6% 8.2% 5.9% 5.5% 5.4% Operating profit() 2631 2382 3985 1009 882 874 Revenue() 63557 63406 64539 23949 23303 22294 Operating Profit Ratio 4.1% 3.8% 6.2% 4.2% 3.8% 3.9% Net Profit() 970 24 2814 716 602 598 Revenue() 63557 63406 64539 23949 23303 22294 Net Profit Ratio 1.53% 0.04% 4.36% 3.0% 2.6% 2.7% Liquidity Ratios Current assets() 13085 12465 12353 1612 1677 1572 Current liabilities() 20206 18703 19180 4847 4667 4651 Current Ratio 0.64757993 0.666471 0.6440563 0.3326 0.3593 0.337992 Quick assets() 9509 8721 8755 1612 1677 1572 Quick Liabilities() 20206 18703 19180 4847 4667 4651 Quick Ratio 0.47060279 0.466289 0.4564651 0.3326 0.3593 0.337992 Efficiency ratio Total asset() 50164 50129 50781 10485 10441 10342 Revenue () 63557 63406 64539 23949 23303 22294 Asset Turnover Ratio 1.26698429 1.264857 1.2709281 2.2841 2.2319 2.155676 Receivables() 2190 2525 2657 1428 1254 1099 Revenue() 63557 63406 64539 23949 23303 22294 Receivable turnover 29.0214612 25.11129 24.290177 16.771 18.583 20.28571 Receivable collection period 12.5768995 14.5353 15.026651 21.764 19.642 17.99296 payables () 10595 11094 11234 4457 4571 4494 Cost of goods sold() 59547 59252 59278 22562 22026 21083 Payable payment turnover 5.62029259 5.340905 5.2766601 5.0621 4.8186 4.691366 Payable payment period 64.9432381 68.34048 69.172543 72.104 75.748 77.80249 Inventories() 3576 3744 3598 Nil Nil Nil Cost of goods sold() 59547 59252 59278 22562 22026 21083 Inventory turnover 16.6518456 15.82585 16.475264 nil Nil Nil Inventory Turnover period 21.9194922 23.06353 22.154425 Nil Nil Nil EBIT() 2337 2134 3949 924 804 823 Interest() 78 82 114 26 32 35 Interest Coverage Ratio 29.9615385 26.02439 34.640351 35.538 25.125 23.51429 Debt() 2009 887 1966 388 89 338 Equity() 14722 16661 16623 4369 4259 4233 Financial Gearing ratio 0.13646244 0.053238 0.1182699 0.0888 0.0209 0.079849 Equity() 14722 16661 16623 4369 4259 4233 Total asset() 50164 50129 50781 10485 10441 10342 Equity Gearing ratio 0.29347739 0.332363 0.3273468 0.4167 0.4079 0.409302

Mike Porter Researches Essays - Management, Strategic Management

Mike Porter Researches Michael Porter On How To Marry Strategy & Operational Effectiveness The Harvard management guru argues that operations & strategy must fit to create a sustainable competitive advantage. For almost two decades, managers have been learning to play by a new set of rules. Companies must be flexible to respond rapidly to competitive and market changes. They must benchmark continuously to achieve best practice. They must outsource aggressively to gain efficiencies. . . Positioning -- once the heart of strategy -- is rejected as too static for today's dynamic markets and changing technologies. According to the new dogma, rivals can quickly copy any market position, and competitive advantage is, at best, temporary. . . But those beliefs are dangerous half-truths, and they are leading more and more companies down the path of mutually destructive competition. Distinguishing Between Operational Effectiveness and Strategy Operational effectiveness and strategy are both essential to superior performance, which is the primary goal of any enterprise. But they work in very different ways. . . Operational effectiveness (OE) means performing similar activities better than rivals perform them. Operational effectiveness includes but is not limited to efficiency. It refers to any number of practices that allow a company to better utilize its inputs by, for example, reducing defects in products or developing better products faster. In contrast, strategic positioning means performing different activities from rivals or performing similar activities in different ways. . . Constant improvement in operational effectiveness is necessary to achieve superior profitability. However, it is not usually sufficient. Few companies have competed successfully on the basis of operational effectiveness over an extended period, and staying ahead of rivals gets harder every day. Strategy is the creation of a unique and valuable position, involving a different set of activities. If there were only one ideal position, there would be no need for strategy. Companies would face a simple imperative -- win the race to discover and preempt it. The essence of strategic positioning is to choose activities that are different from rivals'. If the same set of activities were best to produce all varieties, meet all needs, and access all customers, companies could easily shift among them and operational effectiveness would determine performance. Developing Strategic Fit Across Activities Strategic positions emerge from distinct sources, which often overlap. First, positioning can be based on producing a subset of an industry's products or services. I call this variety-based positioning. . . A second basis for positioning is that of serving the needs of a particular customer group. I call this needs-based positioning. . . The third basis for positioning is that of segmenting customers who are accessible in different ways. I call this access-based positioning. . . Positioning choices determine not only which activities a company will perform and how it will configure individual activities but also how activities relate to one another. While operational effectiveness is about achieving excellence in individual activities, strategy is about combining activities. Fit Sustains Competitive Advantage The importance of fit among functional policies is one of the oldest ideas in strategy. Gradually, however, it has been supplanted on the management agenda. Rather than seeing the company as a whole, managers have turned to core competencies, critical resources, and key success factors. In fact, fit is a far more central component of competitive advantage than most realize. Strategic fit among many activities is fundamental not only to competitive advantage but also to the sustainability of that advantage. It is harder for a rival to match an array of interlocked activities than it is merely to imitate a particular sales-force approach, match a process technology, or replicate a set of product features. Positions built on activity systems are more sustainable than those built on individual activities. Finally, fit among a company's activities creates pressures and incentives to improve operational effectiveness, which makes imitation even harder. Fit means that poor performance in one activity will degrade the performance in others, so that weaknesses are exposed and more prone to get attention. Conversely, improvements in one activity will pay dividends in others. Companies with strong fit among their activities are rarely inviting targets. Their superiority in strategy and in execution only compounds their advantages and raises the