Sunday, January 12, 2020

Bmw and Peugeot

[pic] MBA 503: Managerial Decision Making: Financial Analysis Professor: Sameer Mustafa [pic] [pic] INVESTMENT IN AUTOMOBILE INDUSTRY: BMW OR PEUGEOT Section F12N72 Team members: Ranjan Saha Sam Khassawneh Elena Dugarova Executive Summary This report provides a financial analysis and assessment of two automobile companies Bayerische Motoren Werke (BMW Group) and PSA Peugeot Citroen. Methods of analysis include comparison and evaluation of financial ratios, financial SWOT, R&D and cash flow analyses. All calculations can be found in the appendices.Results of data analyzed show that both companies have strengths, weaknesses, threats and opportunities, but Peugeot has more strengths and opportunities in terms of long-run prospective, than in BMW. After analyzing both companies we recommend to invest in Peugeot. Table of Content 1. Introduction †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. â⠂¬ ¦Ã¢â‚¬ ¦.. 2. SOWT Analysis †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. †¦Ã¢â‚¬ ¦ 1. BMW Strengths †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 2. BMW Weaknesses †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 3. BMW Opportunities †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4. BMW Threats †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 5. Peugeot Strengths †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚ ¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 6. Peugeot Weaknesses †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 7.Peugeot Opportunities †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 8. Peugeot Threats †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 3. Comparison of two companies †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 4. Recommendations †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 5. Conclusion †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 6. Appendices †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. 7. References †¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.. 1. Introduction This report provides data on the financial situation of two well-known automobile brands, BMW Group and PSA Peugeot Citroen, over 2009 and 2011. The purpose of the report is to evaluate the financial situation of these companies in order to make an investment decision in any of these companies.First part of the report provides brief description about the companies followed by the situation analysis of both companies. Third part of the report illustrates the comparison followed by recommendation and conclusion. The recommendation will be made based on the result of the situation analysis. BMW Group was founded in Germany in 1917. This is one of the most prospering automobile, motorcycle, and engine manufacturing companies. BMW Group has three one of the finest brands in this industry: BMW, MINI and Rolls-Royce (Annual report, 2011, p. 3).The other company PSA Peugeot Citroen was founded in Paris in 1976. PSA Peugeot Citroen offers automobiles and motorcycles worldwide (PSA Peugeot Citroen, 2012). Nowadays this automobile company is supplying its products to China, Latin America, Russia and Europe (Annual report, 2011, p. 4). 2. Situation analysis for BMW and Peugeot The following section will discuss the financial strengths, weaknesses, threats and opportunities of both companies. 2. 1 Strengths of BMW 2. 1. 1 Sustainability of the company Maintaining the profitability is vital for any firm in order to be remaining sustainable.From the profitability test, it is apparent that the company improved it’s profitability over the year 2009 to 2011. Gross profitability increased significantly from 13. 96% in 2009 to 24. 38% in 2010 and continued to climb up to 27. 79 by the end of 2011. 2. 1. 2 Excellent creditworthiness BMW has been assigned credit rating status as â€Å"stable† by both Moody’s (rating A2) and Standard & Poor (rating A) which indicates the firm’s sound solvency position to debt (www. bmwgroup. com). In addition, their interest cover ratio provides very positive indication as it increased from 3. 36 in 2009 to 9. 54 in 2011.By utilizing this status company will be able to attract potential creditor with lower interest rate. Therefore, their profitability will increase due to the lower interest expenditure. 2. 1. 3 Increase investment in research and development Investment in research and development (R&D) is significantly important in order to take competitive advantage and mai ntain sustainable growth. BMW is committed to in R&D to meet current and future demand. Their expenditure rose up by 13. 3%? to â‚ ¬2,773 million from 2010 to 2011. One of the most advantages of BMW is creative production (Annual report BMW, 2011).They invested extensively in the past 3 years towards improving the environment and reduction of the CO2 emissions by 30 %. They also introduced fuel efficient product line such as BMW i models in order to meet the current demand. Moreover, BMW is searching for alternative energy solution by electrification and utilizing solar energy in their future product range. By introducing new product line BMW could take competitive advantage over it competitors by attracting environmental friendly customers which would maximize their profit as well as their image as innovative company. 2. 1. Commitment to Employees training The company values its human resources and invests in attracting and training skilled workforce to boost the quality of its products by reducing error rate, waste in production. It will also help BMW to strengthen customer relation as trained employees would able to communicate with confident by utilizing their knowledge and skills which will increase customer satisfaction. Moreover, due to the training employees will gain confidence to communicate more clearly with management which will improve the relationship between employee and management.As a result disputes between labour union and BMW will be reduced (Bloom & Lafleur, n. d. pp 5 – 9) In 2011 expenditure on basic and further training rose sharply by 37. 4% to â‚ ¬246 million (Annual report BMW, 2011). 2. 1. 5 Social responsibility BMW signed the UN Global Compact and issued a â€Å"Joint Declaration on Human Rights and Working Conditions which demonstrates that BMW complies with the fundamental working standards of the International Labor Organization (Annual Report BMW, 2011). It also indicates that BMW is a socially responsible firm w hich will have a positive impact on the image of the company (Murillo & Martinek, 2009).BMW’s image as a good citizen would help to attract potential investors, creditors and customers who care about social responsibility of any company. 2. 2 Weaknesses BMW 2. 2. 1Operating efficiency Receivable turnover has sharply declined from 55. 04 in 2009 to 15. 93 in 2011. Inventory turnover has also declined from 14. 50 in 2010 to 5. 43 in 2011. Both ratios are below the industry norm, which indicates that management was not efficient enough to collect its receivables. This also indicates that sales and marketing department didn’t perform well compare to the competitors to increase the sales. . 2. 2 Sharp decline in sales: In 2011 BMW’s sales dropped by 37 % in the US which is the largest market outside Europe. If it continues to decline, BMW may lose market share significantly which would have a very negative impact on the profitability as well as it would be a threat t o the sustainability of the company. 2. 2. 3 Liquidity BMW’s ability to meet the short-term financial obligation is low comparing to the industry norm. If BMW don’t pay attention to increase the liquidity, it could turn into a threat from weakness. 2. 2. 4Market shareDecreasing global market share for BMW. It goes down from 2. 89% in 2005 to 2. 45% in 2010. (www. statista. com). This shows that demand BMW’s cars are decreasing which is a bad sign for company. 2. 3 Opportunities BMW 2. 3. 1 Utilizing the exist technology to produce more environmental friendly products: As this issue became an important for the society. (BMW Annual report, 2011, p. 19) states, â€Å" In September 2011, SGL Automotive Carbon Fibers – a joint venture of the BMW Group and the SGL Group – opened a new state-of-the-art carbon fiber manufacturing plant in Moses Lake, USA.The facility plays a major strategic role in the manufacture of ultra-lightweight carbon-fiber reinfor ced plastics (CFRP), which will be used extensively in the BMW i vehicles to be launched by the BMW Group from 2013 onwards†. BMW group is already having this idea, but they could get more profit if they increase the art carbon fiber plants. 2. 3. 2 Growth in Asia: Asian countries are encouraging the foreign investment and they have a cheap labor. In addition, the cost of capital is cheaper than Europe. These factors lead to less cost of production and higher revenue.In order to gain this benefit BMW adopted â€Å"Completely Knocked Down† (CKD) assembly to manufacture automobiles with partners in six locations such as Thailand, Malaysia, Russia, Egypt, Indonesia and India (www. bmwgroup. com ). This would help BMW to attract the large Asian market as well as increase market share in the region. 2. 3. 3 Increasing demand on sports car BMW is already produced a few sport cars and they have to increase the number of sport cars and promote them to championships and customer s who like this type of cars. In July 2011,  BMW  pulled the covers off of the  BMW M3 DTM Concept Car, a vehicle that was to be the basis of the actual racer that will compete in the 2012 DTM season† (www. topspeed. com). 2. 3 Threats BMW 2. 3. 1 Euro zone crisis: Current economic slowdown along with sovereign euro zone crisis may tremendously hurt the company as sales are declining in Europe. It might pose even greater threat if bigger economies like Italy and Spain has to default like Greece which will lead Europe into a recession (World Economic Forum, 2012).It would not only affect BMW’s sales in Europe but also rest of the world because recession in the EU will have adverse effect in the world’s economy (International Monetary Fund, 2012). 2. 3. 2 Changes in Trend: Recent trend in the usage of car, where wealthy people prefer cheaper/affordable cars instead of luxurious car (24/7 Wall Street, 2012). Due to this trend, BMW as a luxurious car manufactur er might lose sales revenue and market share. Ultimately, it would have negative impact on the sustainability of the company. 2. . 3 Disputes with labour union: Labour union in Germany is very strong where firing employee is very costly (Global Competitiveness Index, 2012). Any dispute with the labour union could have significantly negative impact on the business operation as union could go for strike which will break the whole supply chain. 2. 4 PSA Peugeot Citroen 2. 4. 1 Strengths Peugeot 2. 4. 2 Sustainability of the company Company’s overall profitability significantly increased from very negative profitability in 2009(gross profit on sale -3. 0% and return on sale -5%) to a positive profitability in 2011 (gross profit on sale 17. 10% and return on sales 1. 50%), which demonstrates management’s extraordinary performance to bring the company back into a sustainable position. 2. 4. 3 Operating Efficiency Over the years from 2009 to 2011 Peugeot demonstrated continuo us improvement of its operating efficiency as management was improved efficiency to collect receivables (receivable turnover 20. 63 in 2009 and 26. 98) as well as increased inventory turnover (7. 14 in 2009 and 9. 06 in 2011) which is higher than industry norm (6. 4).Though receivables turnover is lower than industry norm (34), Peugeot’s continuous improvement indicates that management is paying attention to improve in order to maintain the capacity of operating assets. 2. 4. 4 Diversified business segments Diversification in the business segment reduces the risk of failure as it reduces company’s dependency on one single segment (The Economics Times, 2012) The Group's operations are organized in five main business segments: the Automotive Division, the Automotive Equipment Division, the Transportation & Logistics Division, the Finance Division and other businesses. These segments increased revenue by 6. % from â‚ ¬56061million in 2010 till â‚ ¬59912 million in 2 011 (Annual report BMW, 2011). Due to the diversified business segments Peugeot will be able to offset of one segment’s loss from other segment’s profit. 2. 4. 5 Investment in research and development To meet the current and future demand Peugeot invest heavily in research and development. This French auto manufacturer has maintained its R budget at â‚ ¬2152 million in 2011, or 3. 6% of revenue in order to secure sustainability in the future (www. peugeot. com). In 2011, PSA Peugeot Citroen was the most active patent filer in France with 1,237 patents in all.This performance demonstrates the positive outcome of its exceptional investment in R. New patents would enhance the innovative product line which would differentiate Peugeot’s product from its competitors in order to gain competitive advantage. This indicates better future for Peugeot. 2. 4. 6 Affordable price with good quality PSA Peugeot Citroen offers high quality distinctive cars for affordable price and specifically targets middle class (annual presentation 2010 PSA Peugeot Citroen). It would help Peugeot to gain market share faster in the emerging market such as China, Brazil and India where the number of middle class is very large.Higher market share in the emerging markets would strengthen Peugeot’s position in the global automotive industry. 2. 5 Weaknesses Peugeot 2. 5. 1 Creditworthiness Recently, Peugeot’s credit rating has been downgraded from â€Å"stable† to â€Å"negative† by both international credit rating agency Standard & Poor and Moody’s which would negative impact on creditors confidence. As a result, their interest rate will increase as creditors might feel risky to invest (Mustafa, 2012, Class lecture). However, French government’s â‚ ¬7b credit guarantee for Peugeot might help to maintain creditor’s confidence which will keep the interest expense stable. . 5. 2 Declining sales in Europe: Peugeot’s s ales declined by 5. 75% in 2010 in Europe, it’s largest market and it remained stable in 2011. Moreover, sales dropped further by 10. 8% by the end of September 2012 (European Automobile Manufacturers’ Association, 2012) It indicates a potential threat for Peugeot to losing market share in Europe, if it continues further. However, increasing sales outside Europe 39% in 2011 compare to 32% in 2010 (Annual Report Peugeot, 2011) could help Peugeot to maintain market share in the global automotive industry. 2. 5. 3 Liquidity Since 2009 to 2011 Peugeot’s liquidity has declined from 1. 07 to 1. 4 which even lower than the industry norm. Decrease in liquidity could have negative impact on the operating activities as firm might run out of cash to meet short term obligations. 2. 6 Threats Peugeot 2. 6. 1 Unionized labour market: French labour market is strongly unionized which give labour union a very strong bargaining power. The recent announcement by Peugeot to cut 800 0 jobs in their French plant (BBC News, 2012) might create disputes with the union. Therefore, there is a huge risk that union could go for strike due to the dispute with Peugeot which might disrupt their supply chain and cost a considerable amount for the company.However, French government’s announcement to provide credit guarantee in exchange to keep these jobs (The New York Times, 2012) would help Peugeot to avoid dispute with the union. 2. 6. 2 Euro zone crisis: Economic downturn and euro zone crisis had a very negative impact on Peugeot’s sales in Europe as the market demand declined sharply which resulted a decline in sales by 5% in 2010 and. If it continues may be the sales will drop further. 2. 6. 3 Competition from other producers: Increasing market share gained by other affordable car producers such as Hyundai could hurt Peugeot. There is a risk that French firm could lose market share. . 7 Opportunities Peugeot 2. 7. 1 New Trend Peugeot would be able to attr act customers with high income people due to the new trend as more rich people buy affordable price car (24/7 Wall Street, 2012) This is a very positive indicator for Peugeot to increase market share by attracting this large segments. 2. 7. 2 Market shift to globalization Peugeot is focusing on specific markets in the world. Since globalization is facilitating world trade, Peugeot would benefit significantly from it’s expansion to the emerging markets in Asia, Latin America and Middle East (The New York Times, 2012). . 7. 3 Increase the demand of hybrid electric cars PSA Peugeot has a joint venter with GM to produce hybrid cars. The joint arrangement agreement was signed on 25 October 2011. The Group is committed to providing total capital of â‚ ¬63 million, of which â‚ ¬13 million had been paid as of 31 December 2011. Registered in the Netherlands. (Peugeot annual report 2011) 3. Comparison of BMW and Peugeot This section compares and contrasts of both company in order to identify the better option for investment. 3. 1 Sustainability Both BMW and Peugeot improved their gross profit.BMW is around 10% more profitable in terms of gross profit ratio compare to Peugeot. However, Peugeot had higher return on sales which indicates that management of Peugeot was more capable to control it’s variable cost. Peugeot was also able to generate higher return from its asset compare to BMW as well as industry norm this demonstrates the management’s ability to utilize its asset in order maintain sustainable profit. 3. 2 Management efficiency Management efficiency is lower than the industry norm for both companies. However, Peugeot’s management is more efficient than BMW in collecting receivables.It is also more efficient in inventory turnover, which indicates that Peugeot’s sales, and marketing department is performing better than BMW. 3. 3 Diversified business segments Peugeot’s business segments is more diversified that BMW th is would help Peugeot to reduce the risk because it can cover the loss of one segment from another segments profit. 3. 4 Market share Even though BMW has higher market share in certain market. However, it has declined gradually over the past several years while Peugeot has increased market share in the emerging markets such as China, Russia, India and Latin America. This indicates better future for Peugeot. . 5 Credit ratings BMW’s credit ratings are better than Peugeot because BMW’s credit ratings have been improved from negative to stable. On the other hand, Peugeot’s credit ratings have been downgraded in 2012 (Moody’s 2012) As a result Peugeot’s borrowing cost might increase while BMW will benefit from the lower interest rates. 3. 6 Interest coverage ratio BMW’s interest cover ability is considerably better than Peugeot, which is 9. 54 and 1. 68 respectively. Due to higher interest coverage ratio it will create more confidence in BMW, wh ich will reduce interest expense. 3. 7 Liquidity Liquidity for both companies is below industry average.However, Peugeot has higher liquidity than BMW. This indicates that Peugeot has better ability to cover the short-term obligations. 3. 8 New trend Demand for Peugeot cars would be higher than BMW due to the changes in trend and customer’s preferences as wealthy people are buying cheaper cars. However, increasing demand for sports car would provide benefit to BMW. 3. 9 Euro zone crisis Euro zone crisis has significantly affected on both companies. However, Peugeot has increased sales outside Europe from 32% in 2010 to 39% in 2011 while BMW lost 37% sales in 2011 in the US which is their biggest market.Due to the increasing sales outside Europe, Peugeot will be able to maintain overall sales revenue though there is decline in sales revenue in the European market. 3. 10 Political risk Political risk could negatively effect on both companies. However, BMW is more vulnerable in the Middle Eastern countries which are one of their biggest market due to Arab spring. 3. 11 R Both companies invested heavily in R but Peugeot was able to generate more patents than BMW. In 2011 Peugeot had in total 1237 patents (Annual Report 2011 Peugeot).Higher capability of invention would provide competitive advantage to Peugeot as it will be able to meet the consumers demand. 4. Recommendation The above analysis illustrates that both companies has strengths and weaknesses. However, Peugeot has more strength and opportunities than BMW. Peugeot’s strengths and opportunities are better sustainability, higher management efficiency, diversified business segments, better match with new trend and increasing market share in the emerging market. These strengths demonstrate that investment in Peugeot would be a better choice as the company’s future seems to be stronger and more sustainable than BMW.These also indicate that investment in Peugeot would be less risky. Theref ore, we recommend investing in Peugeot. 5. Conclusion In conclusion, different factors were investigated in order to come up with right decision regarding the investment in BMW or Peugeot. Some of these factors are related to profitability, efficiency, debt, R & D and market position. Some other factors are related to their products’ quality and customer satisfaction. All of these factors were analyzed for three years starting from 2009 to 2011. In addition, the SWOT analysis played an important role in our decision-making.However, after analyzing both companies’ situation and looking at their strengths and opportunities, Peugeot was the best choice to invest in. References BBC News (2012) Peugeot Citroen plans 8000 job cuts. Available at http://www. bbc. co. uk/news/business-18808662 [accessed 11 November 2012] Bloom, M. R. & Lafleur, B. (n. d. ) Turning Skills into Profit: Economic Benefit of Workplace Education Program. The Conference Board. Available at http://www. conferenceboard. ca/Libraries/EDUC_PUBLIC/Skills_Profits. sflb [accessed 10 November 2012] Murillo, R. H. & Martinek,C. J. (2009) Corporate Social Responsibility Can Be Profitable.The Regional Economist. Available at http://research. stlouisfed. org/publications/regional/09/04/socialresponsibility. pdf [accessed 8 November 2012] The Economics Times (2012) Nine Diversified Companies: Are these firm attractive investment proposition. Available at http://economictimes. indiatimes. com/features/slideshows/et-slideshows-made-here/nine-diversified-companies-are-these-firms-attractive-investment-propositions/nine-diversified-companies-are-these-firms-attractive-investment-propositions/quickiearticleshow/7390833. cms [accessed 5November 2012] The New York Times (2012) France to back Peugeot With 7 billion euro in credit.Available at http://www. nytimes. com/2012/10/24/business/global/france-to-back-peugeot-with-7-billion-euros-in-credit-guarantees. html? _r=0 [accessed 11 November 2012] Wo rld Economic Forum (2012) Global Competitiveness Report. Available at http://www3. weforum. org/docs/WEF_GCR_Report_2011-12. pdf [accessed 25 October 2012] International Monetary Fund (2012) Debt Crisis, as it happened. Available at http://www. telegraph. co. uk/finance/debt-crisis-live/9681567/Debt-crisis-as-it-happened-November-16-2012. html [accessed 16 November 2012] Appendices [pic] Figure 1: Source: [pic] Figure 2: Source: PSA Peugeot Citroen 2011 [pic]

Saturday, January 4, 2020

The Short Happy Life of Francis Macomber by Ernest...

It is the mainstay of many pieces of classic American literature, especially those that fall into the category of pulp, to have thin, cardboard-cutout characters with obvious emotions and intentions for which their only purpose is to drive the story to a predetermined end. The seductive and dangerous femme fatale; codgerly old men; the badgering and nagging housewife, adorned with dress and apron; and etc... These characters, and the many like them, are set into a story to play a specific role—namely as a reactor—and force the protagonist in some direction. After all, what would a hero do if there was nothing heroic to be done? Sit around? Twiddle their thumbs...? These characters are, in some degree, necessary for the purpose of†¦show more content†¦In the story he plays the guide and is an experienced safari goer and hunter. He, as described, is â€Å"[...]about middle middle height with sandy hair, a stubby mustache, a very red face and extremely cold blue eyes[...]†(The Short Happy... Pg. 01) Throughout the story, Wilson is the person we most hear the thoughts of, scattered through the narrative are his opinions and comments, presented mentally, and although minor, lead to important understandings in the story. Wilson, in his experience, has probably learned to keep his own affairs private, and as well, to keep out of others. He does a commendable job of trying to help Francis forget about his blunder against the lion, and remove strain in situations involving both Mr. and Mrs. Macomber. He is a diplomat, though as the story will prove, not a very consistent one. He holds a lukewarm contempt for women, especially American women, whom he deems â€Å"cruel† (and perhaps, once we look at Margot, this is not without merit). He is socially introverted, and as so tries to keep away from the personal affairs of the Macombers, but in the end fails and sleeps with Margot Macomber after her many flirtations and a late night seduct ion in his tent. Wilson is strikes as a person of regret and self abasement. He seems to truly love what he does, hunting for sport, but is known, as the story tells, to break a few of the tenets ofShow MoreRelatedThe Short Happy Life Of Francis Macomber By Ernest Hemingway1296 Words   |  6 Pagesthe darker parts of their nature and the insecurities they hide within. The short story â€Å"The Short Happy Life of Francis Macomber† by Ernest Hemingway depicts the struggles between people caused by their weaknesses, yet are built upon the inner workings of gender roles, and how losing their fears could have let them break away from their cycle. The story starts with the wife, Margot Macomber, trying to join the men, Francis and Wilson, in conversation but they both quickly kick her from her wants inRead More Analysis of The Short Happy Life of Francis Macomber by Ernest Hemingway909 Words   |  4 PagesAnalysis of The Short Happy Life of Francis Macomber by Ernest Hemingway Ernest Hemingway is known for producing novels and short stories with ambiguous endings. In his short story, The Short Happy Life of Francis Macomber, he definitely leaves his readers guessing. The question is whether Margot kills her husband, Francis, intenionally, or if she accidentally shoots him in an effort to save his life. There are many points that could be argued for both conclusions, but my observationsRead MoreThe Short Happy Life of Francis Macomber by Ernest Hemingway Essay1229 Words   |  5 PagesThe Short Happy Life of Francis Macomber by Ernest Hemingway Death is not the biggest fear we have; our biggest fear is taking the risk to be alive. Yet death is something that is inevitable, and for some shortcoming. In Ernest Hemingways The Short Happy Life of Francis Macomber, Francis Macomber deals with the humiliation of being a coward and the constant battle for a little boy to come of age. Hemingway explores the theme of death through metaphors and influential symbols, ironicallyRead MoreAn Analysis Of Ernest Hemingway s The Short Happy Life Of Francis Macomber 1434 Words   |  6 PagesErnest Hemingway has long been known for his two â€Å"heroes† in his writing. The hero who is a weak, pathetic individual who is often lost physically and mentally, and the code hero who usually shows â€Å"grace under pressure† and helps the Hemingway hero find his place. These two heroes often come together in a relationship where the code hero is the teacher who initiates the Hemingway hero into the code. Ernest Hemingway’s short story, â€Å"The Short Happy Life of Francis Macomber,† is the quintessentialRead MoreErnest Hemingway: A Brief Biography 1210 Words   |  5 PagesErnest Hemingway was born in Oak Park, Illinois in 1899. He was a writer who started his career with a newspaper office in Kansas City when he was seventeen. When the United States got involved in the First World War, Hemingway joined with a volunteer ambulance unit in the Italian army. During his service, he was wounded, and was decorated by the Italian Government. Upon his return to the United States, he was employed by Canadian and American newspapers as a reporter, and sent back to EuropeRead MoreAnalysis Of Ernest Hemingways Portrayal Of Margot Macomber1112 Words   |  5 PagesErnest Hemingway’s Portrayal of Margot Macomber In the short story â€Å"The Short Life of Francis Macomber, Hemingway portrays many emotions and motivating forces behind his characters’ intentions. Ernest Hemingway experienced many historical events in his lifetime, in which, he endured humiliation and disappointment such as wanting to join the military, but being unable to due to a health condition (Young). Hemingway also underwent a divorce four times (Young). These experiences help influence Hemingway’sRead MoreThe Short Happy Life of Francis Macomber Essay801 Words   |  4 Pageshave nothing to fear, but fear itself.† Known by many, this common phrase has few words, but a intense meaning. In Ernest Hemingway’s short story, â€Å"The Short Happy Life of Francis Macomber,† the overcoming of fear is shown throughout the story. Francis Macomber and his wife Margaret Macomber are on an African safari with a man name Robert Wilson. Hemingway portrays Francis Macomber as wealthy and beautif ul, yet cowardly. Macombers wife Margaret also young and beautiful, but seemingly dissatisfiedRead MoreErnest Hemingway Superficial Superiority Essay755 Words   |  4 PagesHemingway: Superficial Superiority -----------------------------------------------------------------. Throughout the short stories of Ernest Hemingway people of color and other ethnicities are deemed inferior by the caucasian- americans in the story despite being portrayed by Hemingway in a bad light. In Hemingway’s short stories he explores ideas of racism through the portrayal of white americans having a false sense of superiority over other races. One instance where Hemingway explores racismRead MoreThe Killers And The Short Happy Life Of Francis Macomber1731 Words   |  7 Pages The Killers and The Short Happy Life of Francis Macomber By: Ernest Hemingway When analysing Ernest Hemingway s work in both â€Å"The Killers† and â€Å"The Short Happy Life of Francis Macomber† you come across many forms of literary devices that hemingway used throughout both novelas and how his application of the elements used in both stories. In both stories we see him use the themes of violence and grace when faced with violence as well as demonstrating the power relations between the characters ofRead More Margots Intentional Killing in Hemingways The Short Happy Life of Francis Macomber511 Words   |  3 PagesErnest Hemingway is known for writing novels and short stories with unresolved endings. In his short story, ?The Short Happy Life of Francis Macomber?, he definitely leaves his readers guessing. The question is whether Margot kills her husband, Francis, intentionally, or if she accidentally shoots him, because she tries to save his life. There are many points that could be argued for both conclusions, but my observations have led me to believe that Margot did indeed shoot her husband intentionally

Friday, December 27, 2019

William Faulkner s A Rose For Emily - 1144 Words

In â€Å"A Rose for Emily† William Faulkner presents very disturbing instances and events that lead up to a shocking ending. Throughout the story, the narrator gives just enough information about Miss Emily’s past and present that leaves suspense until the very end. Miss Emily’s hardships throughout her life lead up to a mental breakdown. The author combines various literary elements to produce a brilliant and compelling short story. In his short story, â€Å"A Rose for Emily†, William Faulkner makes good use of foreshadowing, character traits, point of view, and setting to illustrate the toll grief can take on one’s mental health. Faulkner uses foreshadowing throughout the story to suggest a major theme, character traits, and Homer’s fate. The theme of death is revealed in the very first paragraph of the story when the town is gathered for Miss Emily Grierson’s funeral. After dating and hearing rumors about Homer Barron, Miss Emily buys rat poison and refuses to tell the salesperson her intentions with the arsenic. On one of the days following her purchase, Homer is seen entering Miss Emily’s home and is never seen alive by the town again. Miss Emily was also seen buying a toilet set with Homer Barron’s initials engraved in it and a man’s suit. Equally important, the narrator reveals that Miss Emily has mental illness in her family history. Miss Emily refused to recognize the reality and finality of death and this is exposed after her father’s death. She refused to give up herShow MoreRelatedWilliam Faulkner s A Rose For Emily951 Words   |  4 Pagesliterary Response to â€Å"A Rose for Emily† â€Å"A Rose for Emily† by William Faulkner was published in 1930. This short story is set in an old southern town. I believe that this and several other combinations of events are what made the main character Miss Emily go insane. Miss Emily was an old school southern woman trapped in a modernizing society. She tried desperately to keep to her old ways, but the changes that happened around her were inevitable. This made me feel like something was going to goRead MoreWilliam Faulkner s A Rose For Emily1316 Words   |  6 Pagesminuscule detail in the writing. In order to fully enjoy William Faulkner’s â€Å"A Rose for Emily† readers must do the latter. Faulkner is a witty writer; some symbols are less obvious than others in his writing. To fully appreciate and obtain full meaning of the text readers must pay attention to his symbols and how they contribute to the greater theme. William Faulkner uses symbolization in â€Å"A Rose for Emily† to develop a theme of personal struggle. Emily faces many personal struggles: her relationship withRead MoreWilliam Faulkner s A Rose For Emily1181 Words   |  5 Pages Is William Faulkner s A Rose for Emily iconic American literature? Faulkner uses setting, theme and plot to show the ways â€Å"A Rose for Emily† is an iconic American literature. Faulkner saw the Forum magazine with his short story he wrote, â€Å"A Rose for Emily† and found out that was his first national publication. The Mississippi Writers Page says, â€Å"The man himself never stood taller than five feet, six inches tall, but in the realm of American literature, William Faulkner is a giant† (MWP). Read MoreWilliam Faulkner s A Rose For Emily1528 Words   |  7 Pagespoint of view is A Rose for Emily told? Why? In William Faulkner s short story A Rose for Emily the reader is given the account of an old woman who is rejected by society. The reader is acquainted with Miss Emily Grierson by a spectator, somebody who is not Miss Emily, but rather part of the town that rejects her. The storyteller has a somewhat omniscient perspective, knowing more than the normal town s individual, however not all that matters there is to think about Miss Emily. The storytellerRead MoreWilliam Faulkner s A Rose For Emily1801 Words   |  8 Pages William Faulkner is known for his many short stories, however, many has wondered what has influenced him in writing these stories. Like his well known, most famous short story â€Å"A Rose for Emily†, which has always been compared to â€Å"Barn Burning†, one of Faulkner’s other short story. It only make sense to compare them two together because these two stories has may similarities , whether it may be in setting , characters or style they favor each other . Nevertheless they also have many differencesRead MoreWilliam Faulkner s A Rose For Emily957 Words   |  4 PagesBereavement While a â€Å"Rose for Emily† by William Faulkner and â€Å"A Good Man is Hard to Find† by Flannery O’Connor share the common themes of unexpected death and the old south, the murders found in each story are vastly different. Both stories tell of strong female protagonists who don’t cope well with change and both foreshadow death right from the beginning, but the murderers themselves come from completely different worlds. Emily Grierson of â€Å"A Rose for Emily and the grandmother in â€Å"ARead MoreWilliam Faulkner s A Rose For Emily879 Words   |  4 Pagesare both similar due to how these emotions cause a human to act irrationally. The lone woman in A Rose for Emily and the cashier, Sammy, in A P both portrayed a greater sense of hate which overcame their love. We as humans, capable of powerful emotion typically act too quickly to even understand the consequences of our actions. One prime example is portrayed in William Faulkner’s A Rose for Emily, Emily loved Homer tremendously, however he did not feel the same way †he liked men, and it was knownRead MoreWilliam Faulkner s A Rose For Emily1682 Words   |  7 PagesLyons Professor Amy Green Writing about Literature COM1102 Oct. 06, 2015 William Faulkner s A Rose for Emily is a short story that has also been adapted into a short film; both have been largely debated. Faulkner’s lack of a normal chronology and situation-triggered memories generates a story that has many understandings among its readers, but surprises everyone at the end. When asked about the title of his story, Faulkner said, [The title] was an allegorical title; the meaning was, here was aRead MoreWilliam Faulkner s A Rose For Emily854 Words   |  4 Pages Literary Response to â€Å"A Rose for Emily† â€Å"A Rose for Emily† by William Faulkner was published in 1930. This short story is set in an old southern town. I believe that this and several other combinations of events are what made the main character Miss Emily go insane. Miss Emily was a old school southern woman trapped in a modernizing society. She tried desperately to try and keep to her old ways, but the changes were inevitable. This made me feel like something was going to go wrong very early inRead MoreWilliam Faulkner s A Rose For Emily1810 Words   |  8 Pages William Faulkner is one amazing writing ,who is known for his many short stories .However, many has wondered what has influenced him in writing these stories . Like his well known, most famous short story â€Å"A Rose for Emily†, which has always been compared to â€Å"Barn Burning†, one of Faulkner’s other short story. It only make sense to compare them two together because these two stories has may similarities , whether it may be in setting , characters or style they favor each other . Nevertheless

Thursday, December 19, 2019

Moral Code And The Rise Of Civilizations - 1217 Words

Civilizations began as a small, scattered, simple, and unremarkable groups. But they rise to be large, unified, complex, and legendary societies. The indispensable elements crucial to any civilization rise comes from the following factors; moral code, trade, and accountability in leadership. The moral code must be collective and opposed upon the entire community of all ranks. In addition, moral code must be built around tolerance and justice for the people as a whole. Trade is a gateway to money, economic incline, technology, and medicine. Trade requires exchange, exportation of surplus, importation of goods, and additionally connections with neighboring nations. Furthermore, leadership has to have a positive influence upon its subjects. Leaders must be charismatic, visionary, and potent to be influential. Accountability in leadership, moral code, and trade are prominent factors which contribute to the rise of civilizations. Superior leadership primarily plays a role in the rise of civilizations. The Mongol empire thrived and prospered due to Genghis Khan, a strategic commander in war. Though the Mongol Empire existed before, but Genghis Khan regenerated the empire to become the largest and most complex. His reputation was seen as fearful, courageous, and powerful which was evident in the triumph of his battles. Examples of his military tactics include spy networks and anticipated attacks. The spy networks consist of Genghis’s generals who would spend months examining andShow MoreRelatedThe Collapse Of A Society1484 Words   |  6 Pagessociety. Civilizations both thrive and fall due to numerous reasons. Invasion from foreign forces, natural disasters, overexpansion, and decay of religious beliefs can all be attributed to decline in civilizations, but looking further into the decline there is another pattern. The breakdown in moral behavior precipitates the collapse of civilizations. The desire f or power and wealth most often cause morality to decay. This pattern is significant for the reason that the decline in moral behavior bringsRead MoreThe Foundation of Society: Common Morals1383 Words   |  6 Pagespeople. In order for a nation like ours and many others around the globe to define their laws, they first turn to their common morals. These morals become the basis of all forthcoming laws, and society cannot stand without a base of common morals. The Past To explore the impact of morals on past governments, let’s delve into the oldest known set of laws. Hammurabi’s code, written in 1772 BC is the oldest known written law. Among the 282 laws are specific punishments for crimes of thievery, bodilyRead MoreWomen s Status Of Inferiority1405 Words   |  6 Pagesmaking them be seen as â€Å"property† (Ahmed 12). In many instances, the rise of urban societies negatively affected women as Leila Ahmed stated in â€Å"Women and Gender in Islam† and as demonstrated in late Sumerian, Babylonian, and Assyrian cultures. The complexities of these civilizations produced military competitiveness, escalating the aspects of male dominance and classes that further demeaned women (Ahmed 12). However, the rise of Islam rectified the unjust social constructs as women were given moreRead MoreUnderstanding of God in Ancient Rome Essay1009 Words   |  5 Pagescivilization’s definition of the divine. In noting the develo pment of this definition in Rome and Greece, the author Francis Schaeffer (1976) states the civilizations initially, â€Å"tried to build a society upon their gods. But these gods were not big enough because they were finite, limited†¦ All their gods put together could not give them a sufficient base for life, morals, values, and final decisions† (p. 21). Schaeffer’s argument is that Rome’s fall has root in the fact that its gods were the ancient world equivalentRead MoreNotes On The World And The Arabian Peninsula1186 Words   |  5 Pages -coastal regions had agriculture, sizable cities, and regional kingdoms -trading towns were developed in rocky regions Clan identity, rivals, and Clan Identity, Clan Rivals, and The Cycle of Vengeance vengeance †¢ Arabia : gave rise to forms of social organization and lifestyle †¢ Organization and Lifestyle -kin related clan groups -survival depended on cooperation and support from kin Summary: -being cut off from kin was fatal Read MoreThe Rise and Fall of Early Civilizations Essay823 Words   |  4 Pages All the way from the start of civilization through to the Early Christianity there has been a pantheon of; destruction, recognition, wars, cultural diffusion, religious breakthroughs, laws that have been established, kings and queens crowned and dethroned. The Mesopotamian Civilization it was the land between two rivers the Tigris and the Euphrates Rivers that civilization first began. The rise of civilization in 3200 B.C. through 525 B.C That was an act of human creation of the Near Eastern riverRead More Seeds of Trees Essay1172 Words   |  5 Pages According to the encyclopedia Encarta, a civilization is an advanced state of a society possessing historical and cultural unity. There are four early river valley societies that had successfully met the requirements to be called civilizations: Mesopotamia, Egypt, China and India. These four civilizations encompass several similarities as to how they developed, including location, spirituality, governmental structure and forms of written communication. Location played a fundamental role in theRead MoreDifferences Between Egyptian And Egyptian Civilization Essay861 Words   |  4 PagesA country in North Africa, along the Mediterranean Sea, and is among the grandeur of Egyptian culture which influenced many ancient civilizations. Small agrarian communities became the first medical texts describing the treatment of over 200 different diseases around 1500 BCE. Stability was a hallmark of Egyptian culture. Given the duration of Egyptian civilizations, there were surprisingly few basic changes in styles and beliefs. Egyptian emphasis on stability was reflected in their view of a changelessRead More Greeks and romans Essay1008 Words   |  5 Pages Three ancient civilizations contributed most to Western society. These ancient cultures were the Romans, Greeks, and Judeo-Christians. Although all three had a major impact on our life today in areas such Philosophy, Art, Architecture, Education, Military, Family Life, Government, and many more, it is evident that the Roman civilization has impacted Western Society beyond the other two. But to come to this conclusion you must first look at all aspects of life of all three cultures. nbsp;nbsp;nbsp;nbsp;nbsp;TheRead MoreShould The Death Penalty Be Banned?1250 Words   |  5 Pagesdeath penalty be banned as a form of punishment? This is a topic that has been debated for many years. This subject also has a plethora of pros and cons that should be taken into consideration before one can truly make an informed decision. One of the moral questions concerning capital punishment has less to do with whether someone convicted of a violent crime deserves to be put to death than with whether state and federal governments deserve to kill someone whom it has incarcerated. However, there are

Wednesday, December 11, 2019

Interpreting Accounting Information Decision Making Process

Question: Discuss about the Interpreting Accounting Information for Decision Making Process. Answer: Introduction: Fruito is the local fruit shop operating in Australia. It is engaged in the selling and distribution of their produce to the local business such as hotels and restaurant. The accounts payable departments is concerned with monitoring the expenditure cycle along with ordering and receiving parts of the stocks. The company is exposed to the various risk faced while receiving and ordering the fruits and vegetables. This calls for the company to consider the need of the internal control of the accounts payable departments (Abbasi 2014). The company has appointed the financial accountant for the identification of the risk and the implementation of the internal control. Table of finding: S.No Threat/ Issue Risk Phase of expenditure Business impact Recommendation for identified risk (Control/ Risk mitigate) 1. Risk of inaccuracy of stock take (Mitra, 2015). Receiving of the stocks This might lead to the waste and shrinkage of the stocks and results in lower level of the accountability of inventories. a) There needs to be the stock process which is simple and the traceability of all the information should be easily allocated. This would help in minimizing the waste and shrinkage of vegetables and fruits. b) On the receiving of the stock, the Fruito should perform the quality control test which leads to accountability of higher level. 2. Storage risk is another risk which Fruito might be exposed to. Receiving Improper storage would leads to the faster spoilage of the fruits and vegetables. The organization would not be able to provide the quality products if it is facing storage risk and thus hampering sales. a) The Fruito Company should have the proper guidelines of storing the products. b) There needs to be the receiving and stocking tips and there should be the process of handling an incoming delivery of products. 3. Risk related to the vendor supplying the product Ordering The relationship with the prime vendor impacts the supply of the stocks to the local businesses of the organization. a) In this context, the level of the service needs should be established and whether the operations requires higher service level and there should be the identification of the frequency of deliveries based on the storage and space limitations (Lucia, 2013). b) There should be the audit privileges concerning the agreement with the vendors, which would serve as the compliance check. The managers or the financial accountant of the company should make the escape clause in the agreement made with the vendors (Alikhani et al., 2013). 4. Financial risk related to the ordering of the stock ordering The ordering system needs to make financial sense as the excess inventory would leads to wastage and physical product in storage would impact the availability of the cash used in operations. a) The organization should have the proper system of ordering the stocks, which would make financial sense. It is recommended that the inventory level of the food products should vary from four to sixth times in a month. This would also assist in combating the cost (Collier, 2015). b) There should be the consolidation of purchasing which would result in greater buying power with the suppliers and thereby reducing the overall costs. 5. The best plan of the company might get affected by the undesirable weather condition (Demski, 2013). Ordering and receiving The variations in the condition of weather would make Fruito inconsistent in meeting the demand of the local business and thus impacting the profits and return of the company. a) There should be accurate scheduling and planning that should allow the potential for the variation in the condition of weather. b) It is recommended that the Fruito should evaluate the level of experience in supplying and distributing their produce. 6. Risk associated with the inadequate control related to the expenditure cycles. ordering This would lead to the material weakness and results in the possibility of materially misstating the cost of service. It also leads to the failure of detecting the accrued liabilities on a timely basis. a) It is recommended to segregate the inventory control from the warehouse and the financial accountant should be able to reconcile the records of inventory to the physical inventory. b) There should be the segregation of the accounts payable and general ledger from the disbursement of cash (Hall, 2012). 7. Risk of loss associated with the receiving process receiving This would impact the operations of the inventory control. a) The deliveries should be scheduled so that the products are stored immediately after thoroughly checking the fruits and vegetables by the receiving agents. There should be storage layout that is efficient, which helps in maintaining the safety, security and save time. b) The receiving agent should be made aware of the steps to be followed in receiving the stocks as this would ensure that the right product is available at the right price. Reference: Abbasi, H. (2014). Role of Management Accounting Information System in Organizations.Journal of Business and Technovation,2(1), 96-102. Alikhani, H., Ahmadi, N., Mehravar, M. (2013). Accounting information system versus management information system.European Online Journal of Natural and Social Sciences,2(3 (s)), pp-359. Collier, P. M. (2015).Accounting for managers: Interpreting accounting information for decision making. John Wiley Sons. Demski, J. (2013).Managerial uses of accounting information. Springer Science Business Media. Hall, J. A. (2012).Accounting information systems. Cengage Learning. Lucia, P. P. (2013). Accounting, an essential component of the information system.Annals-Economy Series,1, 66-73. Mitra, S. (2015). Accounting information system a welfare approach. Zare, I., Nekounam, J., Pirzad, A., Sedaghatjoo, F., Mosavimoyahar, S. (2013). Role of accounting information systems on relevance of accounting information.Life Science Journal,10(3s).

Tuesday, December 3, 2019

Super Weeds and Problems with Them

Agriculture is the backbone of any economy given that people will need food now and in the future. It is important to note that people spend huge percentages of their income on food. To have sustainable growth in any country, there needs to be a continuous growth in food production (Acquaah 549). Food production has even gained a lot of concern in the recent past because of the ever increasing population which exerts more pressure on the current quantities of food.Advertising We will write a custom research paper sample on Super Weeds and Problems with Them specifically for you for only $16.05 $11/page Learn More Consequently, scientists all over the world are busy looking for ways of increasing productivity from agricultural fields. Unfortunately, while scientists and other professionals are working hard to come up with ways of curbing weeds, nature is working against their efforts. Strains of weeds that are resistant to herbicides have developed and ar e increasingly becoming a problem to agriculture. Super weeds as these new strains are known are quickly multiplying and giving specialists a lot of problems. Over the years, people have depended on herbicides to deal with weeds and this has been so far effective. However, from early 2000’s reports started to be made on some strains of weeds that were resistant to herbicides (Rastogi par 3). Though the problem looked minor at that time, it has slowly caught up with farmers. Since then, more and more farmers have reported presence of resistant weeds in their fields. Despite the increased efforts that have been directed towards researching on how to deal with super weeds that have destroyed many farms, solution is not insight. Weeds are increasingly becoming resistant to the herbicides that are currently in use. Waterhemp and actually many weeds are developing herbicide resistant strains at a very alarming rate. The numbers of acres of land that have been infested by super weed s have increased to around 12 million (Gillman and Eric 148). The crux of the matter is that no current technology seems to have a solution to this problem. Scientists have hinted that it might take as long as 20 years before they are able to come up with herbicides to deal with super weeds. That period spells doom to the entire human race. It is difficult to explain with certainty how the problem of super weeds begun. However, the era of roundup has been blamed for making people forget that weeds were also mutating. Genetically modified crops that were produced with the ability to withstand glyphosate that is the main ingredient in roundup made many people to use the herbicide. It is important to note that this worked wonders from the beginning. Weeds were destroyed and output increased (Zimdahl 381). As a result, people forgot about the traditional methods of weed control or even to use different herbicides.Advertising Looking for research paper on agriculture? Let's see if w e can help you! Get your first paper with 15% OFF Learn More However, while people were basking in their temporal success, strains of weed that are resistant to glyphosate developed. This has become a real problem in the agricultural sector given that more and more weeds are becoming resistant to herbicides. On the same note, advanced technologies in food production that were highly advocated for in the 1990’s encouraged the use of too much herbicide. This has also been linked with the emergence of super weeds which are resistant to these herbicides (Garthwaite par 6). Some people wonder why the issue of super weeds is a problem. We have had weeds from time immemorial so why should this one be special. Super weeds have been known to be very efficient in absorption of soil moisture leaving the ground dry for crop survival. It is important to note here that that super weeds take up water from the soil at a faster rate than crops do therefore giving crops unfavorable co mpetition. Unfortunately, super weeds do not only absorb water from the soil, they also take up nutrients leaving crops without the important means of survival. Moreover, the weeds multiply and grow at a very high rate compared to crops. As a result, super weeds interfere with the normal production of crops (Moss and Brown 143). This reduces the output that can be collected from one acre compared to a field without weeds. Reduced production of food directly leads to increase in the prices of food in the world. Given the current rate of population growth as well as worsening economic standards, we cannot afford either food reduction or increased food prices. Besides the reduction in the quantity of food in the country, reduction in production reduces income of farmers. On the same note, farmers usually try their best to find ways of eliminating the super weeds from their fields. This makes them to use different herbicides with the aim of finding the best one (Johanning, John and Brya n 403). These herbicides are not given freely to farmers. As a result, farmers end up using a lot of money on a problem that they cannot solve. Similarly, in their quest to do away with the super weeds, farmers go to the extent of assuming that they apply small quantities of herbicides. In this regard, farmers increase the quantities of herbicides they use. Unfortunately, these herbicides contain chemicals that are harmful to the environment in the long run. Subsequently, the problem of super weeds has indirectly led to increased chances of environmental pollution (Zimdahl 384). Additionally, some species of super weeds have been identified as being harmful to the health of livestock. Some weeds grow very tall to the extent that they are able to stop combines in their run ways.Advertising We will write a custom research paper sample on Super Weeds and Problems with Them specifically for you for only $16.05 $11/page Learn More Fortunately, there are alte rnative ways that can be used though they are not very effective in dealing with the problem of super weeds. Those fields or areas where super weeds have not taken root should take precautions to avoid getting into this predicament. Firstly, traditional means of weed control will have to be used in some instances (Rastogi par 7). Crop rotation is one way through which weeds have been controlled over the years. It is important to note that crop rotation is also environmentally friendly because it reduces the amount of herbicides that are used in a given field. Use of cover crops is also good because it helps to hinder growth of weeds. Moreover, there are other very effective biological weed control methods that can help in reducing development of resistant weeds. Additionally, good soil management can significantly reduce weeds as well as the use of herbicides. This will help in curbing the problem of resistant weeds given that people will not depend on herbicides which frustrate the m. On the same note, farmers should be educated on the importance of interchanging the type of herbicides they use so that weeds do not easily develop a resistant strain (Garthwaite par 8). There is a proposal that people should find ways of collecting seeds of weeds during harvest so that they can be destroyed. This is expected to highly reduce the rate at which weeds multiply though nobody has decisively explained how this will work. The future of the super weeds problem is vivid. The problem will get worse if people do not reduce their reliance on herbicides. Nature has once again manifested itself as being superior. Scientists are busy trying to come up with a chemical that can be effective in dealing with the super weed problem. However, this will not extricate farmers from the current scenario. Chemicals will just postpone the problem, but it will eventually come back and nobody knows how serious it will be. The main aim of technological advancement in agricultural production has been to reduce the quantity of chemicals used in farming. But with the current wave of things, farmers are being forced to use huge quantities of chemicals. Moreover, given the emergence of resistant weeds, the possibility of having resistant insects in future is high which poses another problem (Johanning, John and Bryan 405). Food production needs to be enhanced in order to feed the ever growing population of the world. Consequently, weeds should be eliminated to reduce competition they give to crops. However, weeds are continually mutating and will develop resistant strains.Advertising Looking for research paper on agriculture? Let's see if we can help you! Get your first paper with 15% OFF Learn More It is important to note that though scientists say that they are working round the clock to come up with a solution to super weeds, the truth is that these kinds of research take decades before they give results. Meanwhile, a way has to be found to contain the super weeds that are increasing daily. Otherwise, our country and the world at large should be ready to deal with the problem of food scarcity in the near future. Works Cited Acquaah, George. Principles of Plant Genetics and Breeding. Hoboken: John Wiley Sons, 2012. Print. Garthwaite, Josie. â€Å"Superweeds, Superpests: The Legacy of pesticides.† The New York Times 5 Oct. 2012. Web. Gillman, Jeff and Eric S. Heberlig. How the Government Got in Your Backyard: Superweeds, Franenfoods, Lawn wars and the (Nonpartisan) Truth about Environmental Policies. Portland: Timber Press, 2011. Print. Johanning, Nathan R., John E. Preece and Bryan G. Young. â€Å"The Influence of Chilling and Chipping of Star-of-bethlehem (ornithoga lu, Umbellatum) Bulbs on Plant Growth and Reproduction.† Invasive Plant Science Management 5.4 (2012): 402-407. Print. Moss, Stanley R. and Brown rubin. â€Å"Herbicide-resistant Weeds: a Worldwide Perspective.† The Journal of Agricultural Science 120.2 (1993): 141-148. Print. Rastogi, Nina S. â€Å"Genetically Modified Crops May not be Environmentally Harmful.† Washington Post 18 May 2012. Web. Zimdahl, Robert L. Fundamentals of Weed Science. Waltham: Academic Press, 2007. Print. This research paper on Super Weeds and Problems with Them was written and submitted by user Mary Q. to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Wednesday, November 27, 2019

World Trade Organization Essays - World Trade Organization

World Trade Organization The World Trade Organization (WTO) was formed on January 1, 1995, as successor to the General Agreement on Tariffs and Trade (GATT), which had regulated tariffs worldwide since 1947. The WTO regulates tariffs on services, intellectual property, food, and government purchasing. The Clinton administration has been working very hard to negotiate a deal with China, a nation we have given ?Most Favored Nation' status to, to enter into the World Trade Organization. After a long negotiation process, we have reached a deal with China. The conditions of the deal require China to open its markets to a wide range of US products and services and to permit increased investment in China by US firms. Of course the agreement has to be passed by Congress, which is bound to create a lively debate on the matter. US Commerce Secretary, William Daley, is trying to convince America that this deal with China is critical to their pocketbooks. He says, "If you enjoy this economic success we are participating in, this is an important piece of its future." I have a hard time seeing how things will change if China is admitted to the WTO. We already trade a great deal with China and have given them ?Most Favored Nation' status already. I think there are several reasons why we should not let China into the WTO. There are several political risks involved with this deal with China. Organized labor and environmental groups are using this deal to somehow introduce environmental conditions and labor rights into the WTO rules. Although they are in opposition to the deal right now, they will construct a bargain in which they will trade their support of Chinese membership for the rules to be added. Chinese membership is also a great risk for China. The increased imports from the United States and other countries and the production in China by foreign firms will provide strong competition to many of the state-owned industries. I think this will force many Chinese businesses to close down. The only other solution would be to cut back on workers at these companies, which would increase the unemployment rate in China. The resulting rise in unemployment can hurt their economy and cost them a lot of money. The last, and perhaps most important issue in this debate is over China's human rights and labor standards. China is a communist country, which is something Americans seem to completely disagree with. If I recall, Little Elian from Cuba (another Communist country) is stuck in the middle of a debate over whether we should send him back to his country because it is Communist and we are so against that form of government. If we are so appalled by Communism, why do we want to give ?Most favored nation' status to one of the few remaining Communist countries? That is why we have an embargo on Cuba. When China is ready to take steps forward in human rights and labor standards, then we can talk about trade agreements.