Density Dependence And Its Effects In Ecosystems Environmental Sciences Essay

Describe the difference between the footings critical figure and transporting capacity for an ecosystem. Elaborate on the construct of denseness dependance. How does the denseness dependance affect the critical figure and carry capacity in an ecosystem? Critical figure refers to the smallest possible figure of beings required in a given species that is indispensable to prolong the population in a executable province so that it can stay in being. A lessening in this minimal population base will hold negative impacts on the staying lasting members which may take to their eventual extinction.Transporting capacity refers to the largest possible figure of persons of a species that an environment can prolong for an indefinite period of clip, without considerable negative effects on the given being and its environment. In other words, it is the sum of resources that is available in the environment that can be maximally exploited by the organisms nowadays at that place, that will lend to the beings ‘ well-being, without inauspicious effects on the ecosystem. An addition in the carrying capacity will usually take to a lessening in the ecosystem ‘s ability to back up life in the long tally, which will take to population lessening, and frailty versa.Population denseness is the figure of persons per unit country in an environment ; the population denseness determines the possible effects of certain environmental factors on continued population growing. These factors are separated into two types, viz. : Density dependent – literally means dependent on denseness, this phrase refers to the addition or lessening in the strength of the effects of environmental factors on a population in proportion to the denseness of the population. ( more beings means more competition and less nutrient available for the remainder and frailty versa ) Density independent – literally means independent of denseness ; this phrase means that the effects of some environmental factors do non depend on the denseness of the population. ( sudden unbearable environment alteration, all organisms dies irrespective of population size ) Population normally remains within a certain scope when environmental factors are density dependant. As population denseness additions, environmental opposition intensifies, and finally causes an addition in mortality that leads to a lessening in population. As population denseness decreases, environmental opposition diminishes, leting the population to retrieve. In the terminal, it is alterations in the environmental opposition ( Carrying capacity ) that allow populations to increase or diminish, and this can change annually due to environmental conditions. If population exceeds the transporting capacity, so the population experiences a J-curve clang. If the population is depleted below the critical figure, the lasting members become more vulnerable and extinction may be ineluctable. However, in density-independent instances where a peculiar modification factor moves outside an being ‘s scope of tolerance ( such as a fire or deep freezing ) , the being dies irrespective of population size, critical figure or the transporting capacity of the ecosystem. Q2. Define Biological Wealth we ‘ve discussed in category. How do the two sorts of value affect the biological wealth? Please supply some illustrations of our day-to-day life for each sort of the value and explicate how we evaluate those values Biological wealth is represented by the biodiversity ( described by life scientist as â€Å" entirety of cistrons, species, and ecosystems of a part † ) found on Earth. It is by and large used to mention to the natural biological wealth that supports human life and wellbeing. Biological wealth is viewed based on 2 sorts of value: 1. Instrumental Value – defined as the value something has because it may turn out utile in obtaining other things of value Biological wealth has instrumental value because it can be used to profit human existences. Many of these items-food, shelter, medical specialty, transit, and clothing-are themselves extremely prized for their part to human wellness and wellbeing. Examples of Instrumental values include:I. Beginning of nutrient, stuffs, agribusiness and developmentMany people around the universe depend on these biological beginnings for their nutrient, shelter, and vesture. Materials such as wood, gum elastic, fibres and oil can be obtained straight form biological beginnings. To feed and house a turning human population, more land is being transformed from wilderness into agricultural, excavation, lumbering, and urban countries for worlds. two. Beginning of Medicine A important sum of modern and traditional medicative merchandises are derived, straight or indirectly, from biological resources. three. Global Health Benefits Natural ecosystem services that reduces pollution, purifies H2O, prevents eroding, regulates clime and C sinks.four. BusinessBusiness Development – the foundation of some concerns are based on providing goods and services ( lumber, paper, nutrient and medical specialty ) obtained from the environment.v. LeisureLeisure – include activities like boosting, bird-watching and picture taking in biologically rich topographic points. 2. Intrinsic Value – value for its ain interest Non-material benefits that can be attained from the environment include aesthetic, cultural, spiritual and religious values, cognition and instruction. Philosophically, it could be said that biological wealth has built-in values for human existences. However, intrinsic value can be subjective and it is hard to delegate basic value to such state of affairss. The thought is that our judgements of intrinsic value are tied to existent state of affairss. The hedonic definition seems to be appropriate in this respect, for illustration, hedonism provinces that pleasance is the lone thing with positive intrinsic value and trouble the lone thing with negative intrinsic value. So working from here, pleasance is derived by the people when sing the aesthetically-pleasing signifiers present in a natural environment, religious values such as peace and enlightenment can be achieved through religious connexion on sacred sites, some faiths give Godhead acknowledgment to selected species ( cattles are considered holy in India ) , culturally, certain animate beings are revered as spirit ushers by the Native Americans and knowledge can be gained through observation and survey of the interactions within the system. Effectss However, irrespective of the abovementioned values assigned to biological wealth, the available biological resources are still being progressively exploited with small respect of their impact on the environment ( ensuing in degraded ecosystems and increased biodiversity loss, species loss being accelerated by human activity ) , the focal point being on short-run additions and non the long-run effects, therefore ensuing in a go oning loss of biological wealth. This tendency can non go on as the well-being of future coevalss depends on the preservation and careful direction of our biological wealth so as to protect and heighten their biodiversity.Sungei Buloh Wetland Reserve, SingaporeThe Wetlands Waltz I want to waltz in the wetlands, The swamps, the fens and the bogs, ( oh, the bogs ) . Yes, I want to waltz in the wetlands, With the birds, and the fish and the toads. I want to waltz in the wetlands, a topographic point where nature gets by, And IaˆÂ ¦ will cryaˆÂ ¦ will shout when the wetlands are dry. Yes IaˆÂ ¦ will cryaˆÂ ¦ will shout when the wetlands are dry. by The Ecotones Songs from the Water World Introduction Sungei Buloh Wetland Reserve is located in the Northwest of the chief island of Singapore. The name is of Malay beginning, with Sungei intending â€Å" River † and Buloh intending â€Å" Bamboo † . Sungei Buloh Wetland Reserve is a Rhizophora mangle swamp. The distinguishing characteristic of a Rhizophora mangle swamp is that it is dominated by low trees or tall bushs, normally over 30 % screen, turning on clay flats in tropical coastal countries where the tidal scope is little. The roots of the Rhizophora mangle workss extend out into the clay flats, and trap silt which accumulates to organize the swamp. These swamps support a broad assortment of works species and offer protection for several animate beings.A wetland is defined as a land where the H2O tabular array is at, near or above the surface or which is saturated for a long adequate period to advance such characteristics as wet-altered dirts and H2O tolerant flora. ( Federal Policy on Wetland Conservation, 1996 ) . â€Å" The H2O may be fresh or saline, acidic or basic, depending on the beginning † ( Carter, 1997 )Wetlands play an indispensable ecological function and have resources of economic, cultural and scien tific value, but they are normally drained to make room for agricultural nutrient production or alternate land usage. Wetlands carry out a scope of ecosystem maps ; they include flood control, stabilisation of dirt and storage of C. Wetlands besides produces nutrient, fuel, wood, medical specialty and edifice stuff.Wetlands are one of the most biodiverse of all the ecosystems. Their biodiversity includes different species of works life, fish, reptilians, amphibious vehicles, mammals and avifauna of occupant and migratory birds. Wetlands are beautiful ; excessively small of this sort of natural Eden exist and they can be a tourer attractive force and recreational sites for bird-watching and picture taking. Wetlands are a recharge part for H2O ; Wetlands shop extra H2O or rainfall for release through recharge of rivers and groundwater aquifers at times when there is a drouth. â€Å" The recharging of aquifers, raises the H2O tabular array doing groundwater easy accessible † ( Kenya state paper, 1998 ) . Without the wetlands, the country would lose some of its finest trees, and non merely those that grow within it. The H2O table extends everyplace, and the roots of the workss grow towards it – but the wetlands keep the degree accessible. Wetlands besides act as a H2O purification system, filtrating out the surface run-off deposits, organic affair and foods.Components of WetlandsA wetland possess three types of status, the country should hold a typical wetland hydrology, flora, and dirts. Hydrology An equal and uninterrupted supply of H2O is indispensable for wetlands to be. The H2O beginnings for wetlands include atmospheric H2O, precipitation, ground-water flow and surface-water flow. The land is characterized with wetland hydrology if the country is either for good or sporadically inundated, or there is a recurrent, sustained impregnation of the upper portion of the substrate to make an anaerobiotic environment. This continuance and frequence of impregnation must at lower limit, be able to keep the flora or other beings of wetlands, such as characteristic physical and chemical characteristics of wetland substrate. â€Å" Field indexs of wetland hydrology include: ocular observation of flood, H2O borne debris deposition peculiarly in above land flora, H2O borne sediment sedimentation on workss and other perpendicular objects, drainage forms within wetlands including scouring, and H2O stained ( blackened or grey ) † ( ITRC, 2005 ) . Hydric Soils Hydric dirts are dirts that are sporadically or for good saturated with H2O. The boggy dirt is normally lacking in O. These dirts are wet, dark-coloured, is high in alimentary content and in organic stuff. Field indexs of hydric dirts include histosols, which are organic dirts or any deepness of organic stuff on bedrock ; sulfidic stuff ( H2S ) in mineral dirts breathing the odor of the icky egg ; and cut downing dirt conditions as indicated by gleyed dirt. ( ITRC, 2005 ) . Geomorphology Most wetlands originate in topographic depressions, lands with a lower lift than the environing countries, these include wetland basins, lakes, pools and river vales. These depressions may be created by a series of natural happenings such as glacier motion, air current, H2O moving ridges, or tidal action ; or by procedures linked to tectonics, remission, or prostration. Sometimes wetlands can organize on a incline, this occurs in topographic points where the H2O tabular array intersects the land surface in countries where the land is inclining. â€Å" Standing H2O in wetlands is either the consequence of surface implosion therapy or rock outcrop of the H2O tabular array, which is the top of the saturated zone where pore force per unit area peers atmospheric force per unit area † ( Freeze and Cherry, 1979 ) . Hydrophytic Vegetation The prevailing flora consists of aquatic plants or H2O adapted works species and is classified into â€Å" obligate † or â€Å" facultative † groups. These works species are specifically adapted to turn in moisture, anaerobiotic dirt conditions. Obligate wetland workss ( OBL ) have roots that are good adapted to H2O and saturated dirts, they are found merely in wetlands ( more than 99 % of the clip ) . Facultative wetland workss can digest standing H2O or saturated dirts and occur in wetlands 67-99 % of the clip. The recognized criterion for judging an country to be a wetland requires that the prevailing flora are made up of more than 50 % of Obligate Wetland Plants ( OBL ) , Facultative Wetland Plants ( FACW ) , Facultative Plants ( FAC ) , and Facultative Upland Species ( FACU ) .Supply your observation/guess on how this ecosystem evolves to its current position.Since Sungei Buloh Wetland is by definition a coastal, seawater, mangrove swamp located in Asia. It is poss ible to presume that in the yesteryear, it was likely to be a au naturel country where salt H2O meets land, and are flooded by day-to-day tides. The H2O in the country is likely slow-moving and slightly sheltered, which allows deposition of deposit and organic stuff to take topographic point, every bit good as workss to take root.Sungei Buloh Wetland Reserve is to day of the month bordered by Rhizophora mangle woods. Mangroves are normally the first species to turn on tropical shores as they can propagate successfully in a marine environment because of particular versions. This mangrove species may hold originated in the Indo-Malayan Region, sing the fact that there are more mangrove species present in this part than anyplace else in the universe. It was found that mangroves colonized this country around 6820 BP, as sea degree rose following the last glacial upper limit and a variable thickness of Holocene littorals, claies and peats were deposited over the land surface ( Bird et al , 2004 ) . A bare coastline is an inhospitable environment ; mangrove workss are the primary replacements in this instance because of their ability to last in seawater enables them to colonise coastal countries where no other assortments of tree can last. Mangrove workss bit by bit restore the dirt by perforating and air outing it. They start with seting down shoots into the substrate, which trap and clasp deposits in topographic point which prevents clouding and silting of Waterss every bit good as accumulate a bed of dirt. Their roots map as an ground tackle, and since they grow in dirt with low O, are adapted with aerial roots, which allow them to absorb atmospheric O. As they grow, they produce new rootlets at in turn higher degrees above the high tide degree ( Collins 1990 ) . As dirt quality improves, a gradual consecutive community of workss that were ab initio less tolerant of the original environment will get down turning in the country, finally making a flood tide wetland forest ecosy stem. Ocean tides, freshwater overflow and inland rivers provide foods such as nitrates, nitrites and minerals to nurture the flora of this wetland. In add-on, the Rhizophora mangle wood acts as a vegetive buffer zone against eroding along coastline and promotes deposition of deposit and alluvial stuffs. Coastal wetland swamps are extremely productive and supports a big figure of beings. Mangrove leaves serve as the foundation of the nutrient web and provides nutrient for direct feeders such as pediculosis pubiss and fish. Their decaying leaves initiate the debris nutrient web. The interweaving roots of Rhizophora mangle workss act as aquatic baby's rooms for the immature of fish and shellfish every bit good as nutrient and protection against larger marauders. A figure of animate beings besides use this ecosystem as a home ground, shacking in the canopy, roots, clay or H2O. A big assortment of bird species, which includes migratory birds besides feed on the rich zoology of pelecypods, pedi culosis pubiss, worms and mollusk. Sing that abovementioned province is still observed in Sungei Buloh Wetland Reserve, it is extremely likely that a flood tide ecosystem has been reached and there is a dynamic balance between all of the species and the physical environment.What is human ‘s function in the ecosystem succession/evolution procedure and what are the responses from the ecosystem to the perturbation?Back in 1820, mangrove forest originally covered an estimated 13 % ( 7,800 hour angle ) of Singapore ( Corlett, 1987a & A ; 1987b ) . Today, less than 5 % remains. Bird et Al. ( 2004 ) found that the Rhizophora mangle from Sungei Buluh wetland modesty to Kranji Dam, a mere 87 hour angle, represented the largest integral Rhizophora mangle forest left on mainland Singapore. Harmonizing to the Straits Settlement Government Gazette Reports of the Botanic Gardens, 1890, the Sungei Buloh country was a forest modesty from 17th April, 1890, but ceased to be a forest modesty on 4th April, 1938, ( Straits Settlement Government Gazette, 1938 ) . During this clip period, due to a lifting rural population, shrimp agriculture became the pillar of those settling the seashore, and development of nutrient, fuel, poles and wood were allowed in the modesty. From 1946 to 2001, aerial exposure used to analyse Rhizophora mangle alterations brought about the decision that development generated important alterations in the distribution of Rhizophora mangles. In 1946, the Sungei Buloh mangrove forest was reduced to 117.3 hour angle. However, following this period of clip, the Rhizophora mangle was able to actively colonise the coastal mudflats, adding 6.24 hour angle of Rhizophora mangle screen until 1980. Unfortunately in 1980, 50 % of the entire country covered by Rhizophora mangles was cleared for aquaculture. The resulting building of Kranji Dam in 1980 brought about a subsequent lessening in sediment supply, which initiated eroding along the shoreline. Consequently, the vegetive boundary has receded by up to 50 metres in 2001. In 1986, a group of devouring birdwatchers from the Singapore Branch of the Malayan Nature Society noted the surprisingly big assortment of bird species including migratory birds in the wetlands. Acknowledging the ecological value of this country, they wrote a proposal to the authorities inquiring for its saving. This suggestion was taken up by the authorities and finally, 87 hour angle of wetlands was given the position of nature park in 1989. Subsequently, the country was carefully developed to let visitant handiness and was officially opened on 6 Dec 1993 by so Prime Minister Goh Chok Tong. The Rhizophora mangle wood is now renewing under the protection provided by the Nature Reserve.How/what can we make to do this ecosystem sustainable?In order to keep the wetland ‘s biological diverseness and productiveness and to let wise usage of their resources by human existences, preservation and sustainable usage of this wetland and its resources is of import. Sustainable usage is ba sed on cognition of environmental, socio-economic and policy factors. From this, some guidelines can be developed for sustainable wetland direction.Sustainable Wetland Management – some factors to seeFrom hypertext transfer protocol: //wetlands.hud.ac.uk/sustainability.htmThey include: 1. Creation of public consciousness on the importance of wetlands for the environment. Educate the populace on the function of wetlands in deposit and eroding control ; saving of H2O quality, cut downing pollution ; care of surface and land H2O supply and part to climatic stableness. 2. Promote understanding and acknowledgment of the maps and values of wetland home grounds. This includes their esthetic, cultural, spiritual, societal, economic, educational and recreational value. 3. Conservation of bing wetlands and their biodiversity This includes Restoration and recovery of altered wetlands and alternate wetland direction determinations that includes: non-intervention ( but includes monitoring ) ; limited intercession ; active direction. 4. Research on wetland Proper surveies should be carried out on the values, maps and use of each type of wetland, every bit good as its ecological position and agricultural potency that can be exploited without impairing its maps and transporting capacity. 5. Survey of developments that are likely to hold an impact on wetlands. This is to forestall the continued debasement, transition and disregard of wetlands. 6. Sustainable direction of wetlands Through the development and exchange of cognition about sustainable utilizations. 7. Formulation of policy on wetlands Consultations can be carried out among authorities, academic establishment, and community-based organisations to make policies and statute law, which includes impact appraisal and rating to modulate wetland usage. 8. Factors impacting the achievement of long-run direction aims With the designation of the long term intent, all important factors which may impact or impede their accomplishment should be identified. This include natural factors such as natural sequence in flora, precipitation induced fluctuation in H2O degree and clime alteration ; and human-induced factors such as perturbation, pollution and development.

Case Analysis: Job Dissatisfaction and High Turnover

Case Analysis: The Treadway Tire Company: Job Dissatisfaction And High Turnover at The Lima Tire Plant Case Analysis Questions: 1. Briefly describe the situation today at the Lima Tire plant. 2. What is the relationship between line foremen at Treadway’s Lima Plant and other groups within the plant: general supervisors and area managers, top management, the union, hourly workers, each other? Why do you believe the relationships are as they are? 3. How do you feel line foreman feel about their jobs and why? Be specific about their sources of dissatisfaction.How engaged are the line foreman? How would they respond to Gallup’s 12 Questions of a Strong Workplace? Expand on your position. 4. What are the costs of turnover within the Lima plant? Direct? Indirect? How would you calculate the cost of turnover if you were Ashley Wall making a presentation to top management? (Hint: Look at number of hours worked per month, salary plus benefits, and how long it takes to come up to speed in the role) What is the magnitude of the turnover problem? formula for calculating the direct cost of turnover:Average Hours Worked/Month x Wage/Hour (including benefits) x Number of Months for Learning Curve x Productivity during Learning Curve x Number of Positions Turned Over = Direct Cost of Turnover 5. Discuss the elements of the current work system that are contributing to the problem. How does each negatively impact engagement and job satisfaction? 6. What action plan should Ashley Wall recommend? Be specific in describing your recommended actions. 7. What key lessons will you take away from this case relative to building an engaged work culture and being an effective manager?Analysis Q. 1]Treadway Tire’s Lima Plant is faced with a critical problem of employee dissatisfaction and high turnover among its line foremen. The turnover rate ran 46% in 2007. Additionally, the plant was facing skyrocketing raw materials costs and intense global competition. The plant, at Lima, Ohio, had 970 unionized hourly employees and 150 salaried employees. 50 Line foremen were floor level managers who supervised hourly employees. The plant operates 24Ãâ€"7, with four rotating shifts.Problems associated with the foremen are part of deeper concerns with workforce management and the role that these people play in the production process. The foremen are caught in the middle of an adversarial relationship between the union and management. Ashley Wall, Director of Human Resources at Lima plant, identified the cause of turnover as serious morale issues with line-foreman segment, and their job dissatisfaction. Turnover is one obvious area where plant could focus to reduce costs & increase productivity. Analysis Q. ]An employee satisfaction survey and exit interviews of departing foremen revealed significant discontent in the plant and highlighted concerns about the line-foreman position. Several other incidents highlighted tension between hourly workers and foremen . Foremen expressed concerns about their lack of authority and adversarial relations with the hourly workers. General supervisors, the next management level after line foremen, judge foremen by their ability to meet or exceed forecasts. Foremen express that a lot of expectations, are beyond their control and management does not understand that.Serious morale issues in the line foremen segment also lead to imperiled relations between management and the union. Serious morale issues in these relationships are apparent as every group feels isolated. Foremen were only expected to achieve production forecast. They were not communicated about long run goal or strategy. Be it foremen, hourly workers or upper management, they had not shared a common value-based work environment. Foremen often pulled in different, conflicting directions by management, workers and the union. They had no clear understanding of upper management expectations.They were not involved in the grievance committeeâ€⠄¢s ruling and disciplinary decisions. Hourly workers had trust issues with foremen. They did not understand what kind of authority and tools a foreman would require in meeting the objectives. Analysis Q. 3]Unequipped: Line foremen complained that they were placed on the job without any training and given no coaching once they got there. They felt disengaged on the job without the required skills and competencies. In a Lima Employee Survey, 96% foremen do not feel prepared to accomplish duties of their job.Little discretion dealing with employees: Union contracts dictated annual pay raises, & grievance procedures had not involved foremen. General supervisors appear to look favorably upon traditional management methods which tended to be adversarial. Career frustration: Few foremen, those were external hire, must have felt frustrated by their low potential for advancement as almost all of promoted positions at Lima were filled from within the plant. Isolated / not involved: Foremen h ad not felt recognized or connected. Foreman lack required authorities to perform assigned duties. 6% foremen felt the management is not sensitive to their problem. Although foremen’s job involved different duties, they do not feel engaged due to lack of communication with hourly employees as well as with upper management, conflicting situations and morale issues. Gallup’s 12 questions: Based on the current scenario, foremen’s responses would reflect their dissatisfaction and disengagement at work: Foremen would not agree to the Base Level questions. Due to conflicting management direction, they were not sure what is expected from them.Foremen would not agree they had required development tools, training and authorities to drive their work duties. They would not agree to Level 1 questions. They are expected to meet or exceed forecasts in their 12-shift but they also had to perform other administrative duties that had little to do with their daily deliverables. T hey expressed insensitivity of upper management in the survey where only 3% foremen see their supervisor is a positive role model. Their responses to Level 2 questions would also be alarming.Upper management had lack of communication with them and operated according to their own priorities and had unresponsive and unsupportive to the foremen. They were not involved in union grievance process and had lack of control over various tasks measured as their duties. Their responses to Level 3 questions would be concerning too, as illustrated in the employee survey where 68% foremen thought they had no opportunity for career progress. Due to lack of trainings, foremen felt their learning and development curve is not much forwarding. Analysis Q. ]Turnover costs are categorized as direct costs and indirect costs. Based on the research, referenced in the attachment, we considered employee benefit as 40% of the base remuneration; 4 months for new hires to become 100% productive and 50% producti vity during the period of learning curve for new hires. Based on the case study, average days worked in a month for line foremen was about 15 days, with 12-hour shift or workday, giving us 180 work hours; foremen’s hourly rate as $42 (including 40% benefits with current base rate of $30); Positions turned over in the current year is 23.Based on the cost model, provided in the questionnaire, direct turnover cost will be: 180 x $42 x 4 x 0. 50 x 23 = $347,760. Indirect turnover cost may include loss of productivity from other employees filling in for vacant position; hiring costs; administrative costs; training/induction costs etc. These costs are more difficult to quantify and assign a dollar figure to, but they are very real. Based on the references, provided in attachment, the indirect costs of turnover can be 2 to 5 times higher than direct costs.Taking an estimated figure of 2 times direct turnover cost, the indirect cost can be calculated as: $347,760 x 2 = $695,520 This will give us total turnover cost in Lima plant as: Direct Cost $347,760 + Indirect Cost $695,520 = $1,043,280. This calculation although not a comprehensive assessment of the cost of turnover, but it is a quick way to illustrate the fact that turnover is indeed expensive, even when looking at the most basic costs. We see that Lima plant could save $589,680 as annual turnover cost even if the turnover rate could be reduced to even 20%; that is twice the average turnover rate in manufacturing industry.Attachment provides a more detailed analysis of this saving*. Analysis Q. 5]Following key elements contributed negatively towards building a strong work force at Lima plant. These elements had resulted in unprepared, isolated and despair foremen that kept them from putting their best at work and provided dissatisfaction. 1. Lack of training: Many of the foremen are placed on the line after only a few hours’ training: â€Å"The general supervisors expect them to just sink or swim. † Foremen felt unmotivated by their lack of preparedness.Such lack of knowledge made commitment to the total organization difficult and enhanced feelings of dissatisfaction and disengagement towards the job. Ashley Wall initiated training program, was not considered a priority and removed from the budget. 2. Lack of communication: Much of the alienation felt by line foremen was due to the almost total lack of communications from other groups within Lima plant. Other departments operated separately, according to their own priorities and seemed unresponsive and unsupportive to the foremen. . Motivation and Development: General supervisors were not connected to their team. They had no understanding of where an individual will fit right or what area he is stronger in. Supervisors’ expectations from foremen had no intention of personal advancement of every foreman. 4. Support and Recognition: 94% foremen did not think their immediate supervisor is a role model. With this en vironment, foremen would not consider themselves as part of the company nor would they see any opportunity to advance themselves further. 5.Recruitment process: There was little evidence that interpersonal skills such as the ability to communicate, ability to delegate, ability to work well with others, etc. , were given much weight at all in the recruitment and screening process, the emphasis seemed to be on the task and short-term results rather than selecting best talent for the job. Analysis Q. 6]Action Plan 1. The training programs need to be a top priority and should provide new foremen with extensive, formal, and on-the-job training that can make them feel stronger while performing job duties.The benefits of the training program will outweigh the costs in reducing time for a foreman to work at 100% productivity and providing tools necessary to be successful on the job. Wall must provide Bellingham* with a cost-benefit analysis. 2. Instead of expecting lower level managers to m eet forecasts and control hourly employees, immediate supervisors should be more involved with the team and leadership should connect and communicate long term vision to help make their lower management feel involved. 3. Technological innovations should be introduced to reduce foremen’s efforts and operating costs.Pay for performance and other psychological rewards should be made available to help increase both productivity and employee engagement at work. 4. Human Resources should institute regular meetings with salaried work force & bring in representatives from every department to help make flexible organization structure and to discuss common issues, problems, and concerns. Lower management should also be given opportunity to express their opinions and proposed changes that may prove cost effective and high productive. . Balanced hiring policies should be adopted like the one proposed by Ashley Wall i. e. ; 60% internal hires, 30% college graduates, and 10% company transf ers. Then foster formal & informal interaction among foremen, by promoting the exchange of individual skills and competencies. Analysis Q. 7] Lessons Learned 1. Although high expectation from employees is an important key yet they should also be provided with required tools and trainings necessary to make them feel strong for the job.Based on individual employees’ talent at job, they should be provided with advance learning and development opportunities to advance their career and personal progress. 2. Employees should feel connected to the organization. This can be achieved by recognizing their work, rewarding their performance, develop them regularly, and continuously communicating with them to listen their concerns, appreciating their achievements and providing necessary help to increase their job satisfaction. 3.Management could incorrectly think about saving time and reducing cost by ignoring employees’ concerns and job related learning & development. On the contr ary, organization could save more by having satisfied employees that helps in reduced turnover cost and increased productivity. 4. Long organization hierarchy only creates isolated groups and lack of clear communication. Flat structure is necessary to improve communication and make strong connections. Attachment *Turnover cost saving by reducing turnover rate to 20%: Current turnover rate is 46% that resulted from 23 foremen turned over from total 50 hence 23/50 = 46%.As part of the 2007 edition of its Compensation Data Survey, CompData Surveys publishes 10. 2% as average turnover rate in the manufacturing industry. By the turnover cost presented above, it can be illustrated that if Treadway Lima plan could reduce turnover rate to a conservative 20% then cost savings will be $884,484 (Turnover reduced to 20%; 50 x 0. 20 = 10. 23 – 10 = 13 fewer foremen turning over. Using above mentioned costing model, and considering 13 positions turned over, Lima plant could save Direct Cos t $196,560 + Indirect Cost $393,120 = $589,680). Brandon Bellingham is the plant manager at Treadway’s Lima, Ohio Tire Plant. References: http://www. workforce. com/article/20000126/DEAR_WORKFORCE/301269997/idear-workforce-i-indirect-cost-of-turnover http://www. workplaceinfo. com. au/human-resources-management/hr-strategy/costs-of-employee-turnover http://www. jemperformance. com/Articles/highcostofturnover. htm http://www. beta. mmb. state. mn. us/doc/wfp/turnover. pdf http://www. compensationforce. com/2008/02/2007-turnover-r. html

A Brief Background Of Tyco International Essay -- Dennis Kozlowski, Tyco

Tyco International was founded in 1960 and was regarded as an important electrical and electronic components provider, fire protection system maker and electronic security service provider. It is a diverse producing and serving corporation. Tyco has done business in over 1000 locations in 50 countries and hires 69,000 employees around the world (TYCO, 2012). Tyco International has expanded rapidly and broadly since its IPO in 1973 and has numerous companies among the Fortune 500. The firm’s revenue increased from $3.1 billion in 1992 to over $40 billion in 2004, with the firm’s market value estimated at over $100 billion (TYCO, 2012). Tyco has made numerous acquisitions, including 40 acquisitions since the 1980s. 1.1. A Diversified Company Fire and Security Services: This division is made up of two sub-divisions: electronic security services and fire protection contracting and services. The security services industry is highly competitive in North America. In the fire protection industry, Tyco competes with hundreds of local or regional business for contracts in North America. Electronics: This division is made up of two sub-divisions: electronics and telecommunications. The electronics industry is highly competitive; Tyco competes with both smaller and larger companies. In the competitive telecommunications sector, Tyco focuses on maintenance services on existing systems and selling bandwidth capacity. Health Care: Tyco Healthcare Group consists of seven primary business units: medical, surgical, respiratory, imaging, pharmaceutical, retail and international. This industry is less competitive on a local scale. Primary competitors include Johnson Johnson, Becton Dickinson and C.R Bar any today. In the years leading up to 2002, Tyco took full advantage of the subjectivity of the accounting in practice. Through various creative accounting practices, such as spring-loading, illegal sale of company shares for personal use, and a low-to-no interest employee loan incentive program, authoritative corporate figureheads misrepresented the firm to investors. The lessons that can be extracted from the proceedings of this scandal are the following: the intentions of a firm’s figurehead can have an effect on the firm’s financial statements; and corporate governance and a healthy corporate culture are paramount to best business and accounting practices. The Tyco accounting s candal very closely preceded the introduction of the Sarbanes-Oxley Act of 2002 that effectively aimed to protect investors in increasing firms’ and financial preparers’ accountability.

English Essay Example | Topics and Well Written Essays - 750 words - 4

English - Essay Example Holding graduations has entailed invitation of influential and successful speakers to the University. The graduating class of 2013 also requires a successful and influential speaker for the event. Scrutiny of diverse speakers leads to preference of Michael Hayman. This was the founder of Seven Hills, a major communications and campaigns organization (Nicolao, 2012). Therefore, this is an eminent and influential icon across the British society. Hayman has attended diverse graduation events in Colleges and Universities. He has also hosted interviews for diverse speakers and public figures in diverse graduations. Hayman would definitely formulate the most appropriate speaker for 2013 graduation ceremony in Oakland University. Public speaking requires a set of characteristics from the speaker (Marathe, 2007). There are a set of ideal characteristics that Hayman possesses that qualify him the invitation to Oakland’s graduation ceremony in 2013. All these characteristics in Hayman r emain extremely relevant for this very season in Oakland University’s graduation. Ethos is a major speaking attribute that Hayman possesses. Students in the Oakland University have attained a sense of maturity with time. With the time of schooling and research, students in Oakland University have attained psychological he maturity. ... In this case, public figures and icons have a positive effect towards an audience (Sprague, 2013). Definitely, Hayman is a profound icon with immense ideological influence towards the Oakland audience. Human nature stipulates that we believe in individuals whom we respect. Oakland University graduates would look up to an accomplished individual in society. Hayman has established his professional path, and is a major icon in his field. He pursued higher education to doctorate level. He also founded an eminent organization in Britain (Nicolao, 2012). These achievements and level of success would definitely inculcate immense credibility amongst the Oakland University graduates. Hayman’s expertise and professional success would definitely contribute significantly to the ethos domain of his speech. Michael Hayman is therefore a suitable speaker for the 2013 graduation ceremony in Oakland University. Time management is a paramount virtue in public speaking (Sprague, 2013). Outstandi ng speakers know the exact time to conclude their session. An ideal speech inculcates yearn into the audience. It does not exceed time limits to the extent of boredom (Kumar, 2011). Graduates of the year 2013 in Oakland University possess complex and youthful minds. Their cognitions are characterized with high analytic capability and comprehension. In this case, they require a speaker who is sensitive with the time factor. Oakland University holds its graduation ceremonies in open venues occupied by immense numbers. Therefore, speakers ought to have impeccable time management skills during the ceremony. Graduates in Oakland University would definitely attain maximum benefit from the speech, if the speaker observes time. Hayman has a record of outstanding time management capabilities

Business Ethics Case Study Example | Topics and Well Written Essays - 750 words

Business Ethics - Case Study Example s ethical dilemma has to do with meeting the needs of its affected customers as well as the public at large while also maintaining or preserving its good name. This is almost impossible to accomplish because informing the public about the risk of consuming its products would naturally negatively affect the organization’s reputation. However, informing the public about the danger of consuming other foods until they are further tested would be the ethical or moral thing for the company to do even if it would result in the damage of the company’s organizations. Naturally, the Nutrition Foods Inc. has to come up with ways of dealing with this ethical problem before it degenerates any further. In the first place, the organization’s executives have to conduct assessments into determining how its products are being handled (Willenken, 2012). In such organizations, the process of product distribution is where employees are most likely to infect the produce unintentionally. The organization also has to make immediate moves that show customers that they remain the main and first concern of the organization (Vickers, James, Smallbone and Baldock, 2005). To implement these principles, the Nutrition Foods Inc. has to come up with contingency plans that will address this issue while also preventing the possibility of such an ethical dilemma arising again. There are different theories that can be used in determining the steps to be taken in order to deal with this problem. Ethical theories of teleological nature are usually consequentialist (Ridge, 2009). This means that they tend to emphasize the importance of taking ethically correct actions which will create a balance that will re-instate good actions over the bad (Worsfold, 2005). To use this theory in making decision, the Nutrition Foods Inc. will have to consider different possibilities in dealing with the ethical problem if faces. For example, when considering whether to clean up the scandal internally without

First Degree Murder Defenses Assignment Example | Topics and Well Written Essays - 750 words - 1

First Degree Murder Defenses - Assignment Example As per the US state law, murders are claimed to be 1st degree, if the following criteria are fulfilled. The basic elements of this form of murder are â€Å"willfulness, deliberation, and premeditation†. The â€Å"1st-degree murder† in some states of the US is considered as applicable for ‘felony murder rule’. This implies that if any accidental death occurs due to the reason of some violent felonies, such as burglary, abuse, kidnapping,  and robbery, it is also regarded as 1st-degree murder. With reference to the provided case, Kim is convicted of the murder, which was accidental in nature. However, the alleged surrendered herself to the police after she identified and realized the death of Michael Thomas (Thomson Routers, 2014). Contextually, defenses are sub-categorized into two forms ― first, the defendant should have submitted justification that he/she had not committed the crime of murder intentionally and second, is he/she should have condemned the crime. To justify their actions regarding the suspect of murder, victims usually use the subsection laws of self-defense and defense to other individuals (Thomson Routers, 2014). As per the US state of law, ‘1st-degree murder’ is a severe offense, which can result in unforgiving punishment. The degree of punishment may, however, vary in different states due to rudiments of crime and ways of defense. The degree of sentences to condemned murderer also depends upon the state law, decision of the court and strict legal rules who determines the concerned facts about the case. Again, the punishment of the victims of the 1st-degree murder may also vary as per the evidence and justification provided on the basis of sub law of self-defense and defense to others (2Thomson Routers, 2014). As per the case statement, Kim Johnson was charged with ‘1st degree murder’ for the killing of Michael Thomas. She claimed for self-defense and defense to others as well. She argued with justification that as per the law of self-defense, Michael Thomas would have entered the premises by seeking her permission.

Communication Theories Essay Example | Topics and Well Written Essays - 250 words

Communication Theories - Essay Example â€Å"Our approach focuses on differences of the perception of science by journalism, which affects organizational matters, that means that we distinguish programmes with regard to their relatedness to science and their up-to-dateness.† (Institute for Media and Communication Studies) The other approach is also important to consider, other approach is the science centered approach. The process of communication is not as easy as it seems to be, it is an intricate process. It is important to understand the structures of different media systems, these systems also help in understanding the process of communication. To conclude it is fair to say that the approach which best suits the students should be chosen, there is hardly any point choosing an approach which would not be liked by the students, it will fail to facilitate the process of learning. It will also affect the morale of the students which will be anything but

Crime Seriousness Survey Essay Example | Topics and Well Written Essays - 1000 words

Crime Seriousness Survey - Essay Example People from different fields, whether it is field of education, politics or some other field, have taken keen interest in determining the seriousness of crimes. These surveys have focused on determining the awareness of crime in general public. In this way they have been able to understand the psychology of different people in society about crime. Some of these surveys are based on asking views about criminal activities from local people and some are based on views from different countries. The different questions that may be asked from people could be about what they think of different crimes and what punishments would they have given if they had the authority to do so. From the answers obtained the surveyors determine seriousness of crime. However there is another issue that must be addressed to determine the seriousness of crime. This issue is of "the circumstances under which the crime took place". There is a big difference between "a crime for pleasure" and "a crime because of extremely harsh conditions". Many people would think that those who perform offensive activities for pleasure should be given greater punishment as compared to those who have done it because of some helpless conditions. The purpose of the surveys is usually to get the viewpoint of individuals as well as of whole society. The perception about seriousness of a crime varies from place to place. Each culture has its own rules and regulations and hence the punishment given against an offensive action may also vary from place to place. The research about determining the seriousness of crime is taking place for many years. ... Every society has its own moral values and religious beliefs, therefore it is a possibility that they may differ in view about which crime is a serious one and which is not. Among different kind of crimes, violent offences are considered to be the most dangerous and harmful. Many people argue that the general view of a society about seriousness of a crime is directly affected by the kind of a crime and by the frequency with which that crime has occurred. It is clear from different studies that the number and type of criminal activities taking place in a specified time period is consistent which means that these activities are undoubtedly occurring frequently. Usually to determine the danger of a crime, surveys are conducted among people living in same society but with different social status. These surveys may be between two altogether different societies. It may also be the cases that, survey of those people is conducted who have emigrated from one place to another. Thus they might be asked about how they feel about change in cultural values of two different countries. As laws and authorities differ from one place to another, immigrants might face problems as their acts might be right according to their own country but they might not be right according to laws and rules of the new country. Culture is something which describes the beliefs of people, their moral values,, their rules, laws and regulations and other practices that are developed by people to adjust in a society. Thus cultural values and society define the way in which people act and react to different situations. The way, the people react to a situation is dependent on what

Environmental regulation Essay Example | Topics and Well Written Essays - 500 words

Environmental regulation - Essay Example 1). In step 1 EPA proposes a Regulation, which is also called the Notice of Proposed Rulemaking (NPRM). The proposal is presented for mass consideration through the Federal Register (FR). The official website of EPA, Regulations.gov, also can be visited to know and consider the proposed rule and related papers. In step 2 EPA analyses the public remarks and after revising the draft publishes a final rule in the FR and the official website. In step 3, the regulation is codified in the Code of Federal Regulations (CFR), the government record keeper of 50 volumes, named titles. All environment regulations are listed in Title 40, which is updated every year on July 1 (EPA, â€Å"Laws and Regulations,† par. 2-4). Enforcement of EPA regulations against people and companies comes under civil or criminal violations of the country’s environmental laws and regulations. Different EPA head-offices, regional and state agencies carry out the enforcement program under Civil Administrat ive Actions, Civil Judicial Actions, and Criminal Actions as per the nature and seriousness of the violation (EPA, â€Å"Enforcement,† par. 1-4).

Recreation and Sports Essay Example for Free

Recreation and Sports Essay Everyone has a favorite kind of leisure, whether it is reading a book, taking a walk, or just watching T. V. , leisure is something that everyone has experienced. For me, my favorite kind of leisure is deer hunting. It is not only something I have done my whole life, but it is also something that has been a bonding experience in my family, and that has grown into a passion over time. Growing up in the Piney Woods of East Texas finding a place to hunt was never a problem. I remember getting up on cold fall mornings with my grandpa going out to the woods, and just sitting, listening, and waiting for the forest to come to life. My dad and grandpa first started taking me hunting when I was around 5 years old, so you could say that I was exposed to hunting at a young age. Hunting has always been a way that the men in my family have bonded, although all of the women in my family love the outdoors none of them were ever very eager to hunt. Another thing about living in the Piney Woods, as hunting may be seen as an expensive sport in other parts of the world and the country, as long as you had a gun and a hunting license, it was not hard to find a place to hunt. As a child hunting with my relatives, I never was really involved in preparing for hunting season. As I grew older I began to become more and more involved in the work it took to get ready for the season, such as planting oat patches, and setting up corn feeders. This helped me to grow in y leisure, because it helped me to feel more relaxed because I was using something that I had worked hard to fix up for my recreation. When I turned 13 years old I started to hunt by myself, this helped me to develop more respect for hunting because I had more responsibility hunting by myself, because I was making decisions on my own. Being able to hunt by myself also increased the time that I could hunt, because being younger than my dad and grandpa, I could go hunting after school and on weekends when they had to work. This increased the amount of leisure time I had. When I was still in high school I structured a lot of my time around hunting. If I didn’t have any kind of practices or any work to do at the school, I would usually plan to go hunting. Football and FFA took up a lot of my time but I molded hunting around the free time I had. If I had homework I would usually do it in the deer stand just to be in the quiet and have an opportunity to get my work done without distractions. When I got into college it became and has been harder for me to go hunting as much as I would like to. I have learned to mold when I go home by when I can hunt, so AM away football games are usually when I go home to see my family but also to hunt. Deer hunting has also helped me to build relationships with other adamant deer hunters like myself, while I have been in school, and helped me to gain some new friendships. Hunting has been a big leisure since I was a young age, and has been a leisure that my family could enjoy together since I was young. It is leisure that has grown over time and has turned into not just leisure, but a passion. The famous actor Jack Nicholson once said, â€Å"I don’t think many people have a very good understanding of leisure and the importance it plays in our lives. † For the most part I think we take leisure for granted, we don’t think about all the good things leisure can do for you. For example, leisure of hunting has given me a close relationship with my family, as well as something to pass on to my kids when I have them, and it is something that I will be passionate about for the rest of my life.

Swot Analysis On Foreign Direct Investments

Swot Analysis On Foreign Direct Investments The retail industry in India is predicted to increase at a phase of 14 by 2013. The initiative for allowing FDI was first taken in 2006. Since 2006 54 FDI permissions have been received by the government of India and a cash inflow of Rs 901.64 crore in the form of investments into the nation. Retailing includes all forms of business involving sale of products and services to the end users. Retailing includes a retailers commonly a store or a service establishment, dealing with consumers who are purchasing goods and services for their own use rather than for resale. Wal-Mart, Best Buy and other familiar organizations are retailers. Retailing is dependent more on how the trade deals straight with consumers. Retail banking, service based shops; coffee shops are also retailers. With the commencement of online retailing, retailers are no more worried about place of stores. E-retailing has emerged. Consumers are always hungry for modern ways of shopping. Indian retail sector is increasing fast and its employment potential is growing faster. The retail scene is changing really fast. Retailers are rethinking about the best prices they can get goods with. Retail sector in India is also catalyst for the pickup of stalling tactics of below the line marketing used by major retail players such as Spencer, big bazaar, reliance fresh etc. For increasing customers by creating point values of sales displays. So we can say that India is an emerging land of FDI and going to be one of the quickest growing regions of the future. Key terms: FDI, Retail markets, Gross Domestic Product, International, Policies, and infrastructure development. Introduction: As per the current regulatory policies, retail trading (except under single-brand product retailing, FDI up to 100 per cent, under the Government route) is allowed in India. To say it short, for a company to be able to get foreign investments, goods sold by it to the general public should only be of a unique-brand; this condition being in addition to a few other conditions to be stick to. That explains why we do not have a Harrods in Delhi. India being a trademark to World Trade Organizations General Agreement on Trade in Services, which include wholesale and retailing services, had to open up the retail trade sector to foreign funds. There were initial priorities towards opening up of retail sector arising from fear of job losses, procurement from international market, competition and loss of entrepreneurial opportunities. In the series of action, the government in a sequence of moves has opened up the retail sector slowly to Foreign Direct Investment (FDI). In 1997, F DI including in cash and carry (wholesale) with 100 percent ownership was permitted under the Government approval route. It was given a green signal in an automatic route in 2006. 100 percent investment in unique brand retail marketing was also allowed in 2006. FDI in Multi-Brand retailing is prohibited in India. Allowing FDI in multi brand retail can bring about Supply Chain Improvement, Investment in Technology, Manpower and Skill development, Tourism Development, Greater Sourcing from India, up gradation in Agriculture, Efficient Small and Medium Scale Industries, With around 13% contribution to GDP and 7% employment of the national workforce, retailing no doubt is a strong pillar of the Indian economy. What it requires is more corporate backed retail operations that have started to emerge over the past couple of years.(Arvind Singhal, chief executive, KSA Technopak) Determinants of FDI Policies In India Looking up into the literature survey the major requirements of the foreign investment are technologies, infrastructure and labor skills, If in the case these requirements are not identified it becomes difficult to elaborate different patterns in the geographical pattern of FDI at the world capita income, relative to outbound and inbound FDI (Hummels and Stern, 1994). There are large numbers of government incentives that can be taken into consideration as key factors, besides that there are other factors that determine the corporate plans of international market place. There are factors that influence major part of the investors; factors may be institutional, historical and cultural factors (Martin and Velazquez, 1997). Examiners examined that there are wide varieties of determinants of FDI in the past. There were several studies conducted on determinants of FDI towards the choosing of a group of descriptive attributes that are more useful and most important factors affecting FDI. Study by researchers elucidate that there are differences in factor costs and market size to the FDI spot (Markusen and Maskus, 1999). This shows us the prominence of market size and its wide spread for foreign organizations which are functioning as big industries. Companies score cannot be judged by the beforehand without achievements in the market. They are measured in terms of GDP, GDP per capita and growth of GDP. To put this in simple English the FDI of a company is defined by the investments made by the company in other country than that in a company is based in. Government of India (GOI) has announced the policy of FDI that governs the foreign investment in India as the provision of Foreign Exchange Management Act (FEMA) 1999. Policies of FDI related to Retail market: It is advisable to check the Press Note 4 of 2006 issued by DIPP and compound FDI Policy issued in October 2010 (DIPP, 2010) which include the sector specific guidelines for FDI in relation to the conduct of trading activities. FDI allows export trading and wholesale marketing with 100% cash and carry. Subject to Press Note 3 (2006 Series) FDI can stretch up to 51% of the total with a single brand sales and marketing. The policies dont allow FDI to promote Multi Brand Marketing. According to `Wheel of Retailing theory, medians in one retail market give rise to a new one. But in India we find that several markets go in hand and hand. The following are some of the formats adopted by various players: Table 2. Retail formats Adapted from: Indian Retail: On the Fast Track, KPMG and FICCI, 2005 Entry Options for Foreign Players prior to FDI Policy Before Jan 24, 2006, FDI was not allowed by the government of India, but the investors had been operation in the country in other forms. Some of the opening steps used by the Foreign Investors are discussed below:- 1. Franchise Agreements: This is an easiest path to enter in to the Indian market. In franchising and commission agents services, FDI Foreign investors can invest in the product based companies with the approval from the Reserve Bank of India, until and unless prohibited by the FDI act. This is a most general mode for entrance of quick food bondage opposite a world. Apart from quick food bondage identical to Pizza Hut, players such as Lacoste, Mango, Nike as good as Marks as good as Spencer, have entered Indian marketplace by this route. 2. Cash And Carry Wholesale Trading: FDI was allowed at a full stretch in the wholesale trading which concentrates on a large scale distribution to the wholesale market to help the local manufactures. The wholesaler deals with the small retail businesses but not with the direct consumers. Metro AG of Germany was the first to enter India using this process. 3. Strategic Licensing Agreements: Some foreign companies give exclusive licenses and distribution rights to local companies. Using these rights, Indian companies can either sell it through their own stores, or enter into shop-in-shop arrangements or distribute the brands to franchisees. Mango, the Spanish apparel brand has entered India through this route with an agreement with Piramyd, Mumbai, SPAR entered into a similar agreement with Radhakrishna Foodlands Pvt. Ltd 4. Manufacturing and Wholly Owned Subsidiaries: The international brands such as Nike, Reebok, Adidas etc., have whole manufacturing unit using the subsidiaries and are treated as Indian companies and are allowed to retail. These manufacturers are authorized to sell products to Indian consumers by franchising, distributing to the existing retailers, self-outlets etc. For example Nike has entered into India in agreement with Sierra Enterprises but now Nike is wholly owned subsidized, Nike India Private Limited. FDI in Single Brand Retail The Government has not categorically defined the meaning of Single Brand anywhere neither in any of its circulars or any notifications. In single-brand retail, FDI up to 51 per cent is allowed, subject to Foreign Investment Promotion Board (FIPB) approval and subject to the conditions mentioned in Press Note 3 that (1) Multi brand products would be sold (i.e., retail of goods of multi-brand even if produced by the same manufacturer would be allowed). (2) Products should be sold under the same brand internationally. (3) Single-brand product retail would only cover products which are branded during manufacturing. (4) Any addition to product categories to be sold under single-brand would require fresh approval from the government. While the phrase single brand has not been defined, it implies that foreign companies would be allowed to sell products sold internationally under a single brand, viz., Reebok, Nokia, and Adidas. Retailing of goods of multiple brands, even if such products were produced by the same manufacturer, would be allowed. Going a step further, we determine the concept of single brand and the associated conditions: FDI in Single brand retail implies that a retail store with foreign investment can only sell one brand. For example, if Adidas were to obtain permission to retail its flagship brand in India, those retail outlets could only sell products under the Adidas brand and not the Reebok brand, for which separate permission is required. If granted permission, Adidas could sell products under the Reebok brand in separate outlets. Concerns for the Government for only Partially Allowing FDI in Retail Sector A number of concerns were expressed with regard to partial opening of the retail sector for FDI. The Honble Department Related Parliamentary Standing Committee on Commerce, in its 90th Report, on Foreign and Domestic Investment in Retail Sector, laid in the Lok Sabha and the Rajya Sabha on 8 June, 2009, had made an in-depth study on the subject and identified a number of issues related to FDI in the retail sector. These included: It would lead to unfair competition and ultimately result in large-scale exit of domestic retailers, especially the small family managed outlets, leading to large scale displacement of persons employed in the retail sector. Further, as the manufacturing sector has not been growing fast enough, the persons displaced from the retail sector would not be absorbed there. Another concern is that the Indian retail sector, particularly organized retail, is still under-developed and in a nascent stage and that, therefore, it is important that the domestic retail sector is allowed to grow and consolidate first, before opening this sector to foreign investors. Antagonists of FDI in retail sector oppose the same on various grounds, like, that the entry of large global retailers such as Wal-Mart would kill local shops and millions of jobs, since the unorganized retail sector employs an enormous percentage of Indian population after the agriculture sector; secondly that the global retailers would conspire and exercise monopolistic power to raise prices and monopolistic (big buying) power to reduce the prices received by the suppliers; thirdly, it would lead to asymmetrical growth in cities, causing discontent and social tension elsewhere. Hence, both the consumers and the suppliers would lose, while the profit margins of such retail chains would go up. Rationale behind Allowing FDI in Retail Sector FDI can be a powerful catalyst to spur competition in the retail industry, due to the current scenario of low competition and poor productivity. The policy of single-brand retail was adopted to allow Indian consumers access to foreign brands. Since Indians spend a lot of money shopping abroad, this policy enables them to spend the same money on the same goods in India. FDI in single-brand retailing was permitted in 2006, up to 51 per cent of ownership. Between then and May 2010, a total of 94 proposals have been received. Of these, 57 proposals have been approved. An FDI inflow of US$196.46 million under the category of single brand retailing was received between April 2006 and September 2010, comprising 0.16 per cent of the total FDI inflows during the period. Retail stocks rose by as much as 5%. Shares of Pantaloons Retail (India) Ltd ended 4.84% up at Rs 441 on the Bombay Stock Exchange. Shares of Shoppers Stop Ltd rose 2.02% and Trent Ltd, 3.19%. The exchanges key index rose 173. 04 points, or 0.99%, to 17,614.48. But this is very less as compared to what it would have been had FDI up to 100% been allowed in India for single brand. (Nabael Mancheri, 2010) The policy of allowing 100% FDI in single brand retail can benefit both the foreign retailer and the Indian partner foreign players get local market knowledge, while Indian companies can access global best management practices, designs and technological knowhow. By partially opening this sector, the government was able to reduce the pressure from its trading partners in bilateral/ multilateral negotiations and could demonstrate Indias intentions in liberalising this sector in a phased manner. Permitting foreign investment in food-based retailing is likely to ensure adequate flow of capital into the country its productive use, in a manner likely to promote the welfare of all sections of society, particularly farmers and consumers. It would also help bring about improvements in farmer income agricultural g rowth and assist in lowering consumer prices inflation. (Discussion Paper on FDI, 2010) Apart from this, by allowing FDI in retail trade, India will significantly flourish in terms of quality standards and consumer expectations, since the inflow of FDI in retail sector is bound to pull up the quality standards and cost-competitiveness of Indian producers in all the segments. It is therefore obvious that we should not only permit but encourage FDI in retail trade. Industrial organizations such as CII, FICCI, US-India Business Council (USIBC), the American Chamber of Commerce in India, The Retail Association of India (RAI) and Shopping Centers Association of India (a 44 member association of Indian multi-brand retailers and shopping malls) favor a phased approach toward liberalizing FDI in multi-brand retailing, and most of them agree with considering a cap of 49-51 per cent to start with. The international retail players such as Wal-Mart, Carrefour, Metro, IKEA, and TESCO share the same view and insist on a clear path towards 100 per cent opening up in near future. Large multinational retailers such as US-based Wal-Mart, Germanys Metro AG and Woolworths Ltd, the largest Australian retailer that operates in wholesale cash-and-carry ventures in India, have been demanding liberalization of FDI rules on multi-brand retail for some time. (Nabael Mancheri,2010) the Indian Council of Research in International Economic Relations (ICRIER), a premier ec onomic think tank of the country, which was appointed to look into the impact of BIG capital in the retail sector, has projected the worth of Indian retail sector to reach $496 billion by 2011-12 and ICRIER has also come to conclusion that investment of big money (large corporates and FDI) in the retail sector would in the long run not harm interests of small, traditional, retailers.(Sarthak Sarin,2010) SWOT Analysis SWOT analysis is instrumental for evaluating present day retail industry in India. SWOT analysis is a study prepared discussing about the strengths, weaknesses, opportunities and threats of retail industry. Strengths An enormous young employed people with average age of 24 years, nuclear families in urban areas, regarded as a basic social unit, with laterally growing working woman population and evolving as prospects in the service sector would be the vital progression carters of the structured retail sector in India. It has also funded to fat size reserves in the real estate sector with main national and worldwide players financing in federalizing the structure and construction of the retailing business. Customers will have right to use to superior range of transnational quality goods. Employment openings directly and indirectly have been improved. Farmers get enhanced rates for their goods though enrichment of price added food chain. Growth in price and consumer desires is vital aspects. Growth in spending for extravagant items is also vital. Huge domestic market with a growing middle class and customers with purchasing power. The governments of states like Delhi and National Capital Region (NCR) are very positive about allowing the use of land for commercial development thus escalate the accessibility of land for retail space. The progression of sachet revolution develops for getting to the foot of the pyramid. The magnitude of Indian organized retail industry touched Rs.1,30,000 crore in 2006. The styles that are motivating the development of the retail sector in India are small share of organized retailing and dropping real estate rates. Ranked second in Global Retail Development Index of 30 developing nations drawn up by AT Kearney. The annual progress of departmental stores is estimated at 24%. The profits of bigger organized retail segments are numerous. The customers get a superior product at discounted price. So customers get worth for their cash. Typicality of consumers in terms of diverse tastes and demand for extensive collection of goods. Opportunities When the model picks up, due to demonstration effect, there will be a complete renovation of domestic retail trade. International retail titans take India as crucial market. It is ranked fifth most appealing retail market. The organized retail sector is estimated to raise stronger than GDP growth in the next five years catalyzed by shifting ways of life, proliferation in income and advantageous demographic shape. Food and clothing retailing are crucial factors of growth. Indian retail industry has been regarded as of the most dynamic and fast advancing business with several companies arriving in the market. Indian retail industry can be one of the biggest industries in terms of quantities of workforces and institutions. Countryside retailing is still untouched in Indian market. Threats One of the chief obstacles to the evolution of modern retail formats are the supply chain management concerns. No key modifications are required in the supply chain for FMCG goods; these are well established and effective. For perishables, the structure is too difficult. Government guidelines, absence of ample groundwork and insufficient venture are the potential blockages for retail corporations. The supply chain for agro goods is less complex than the net foodstuffs. But agro goods have an exclusive problem of non-standardization. Its challenging to focus on all segments of society. Hyper and super markets trying to offer purchaser with -worth, diversity and quantity. Large primary investment is essential to manage with other establishments and contest with them. Labor guidelines are also neglected in the organized retails. The absence of even tax system for organized retailing is also one of the hurdles. Poor infrastructure is prospective to be a hurdle in the evolution of organized retails. Concern of vehicle parking in urban regions is grave worry. Segment is unable to engage retail workforce on contract basis. The unorganized sector has supremacy above the organized sector in India due to low investment requirements. Retail nowadays has transformed from marketing a good or a service to marketing a hope, an aspiration and especially an practice that a consumer would like to repeat. Weakness Will primarily satisfy rich and middle class consumers located in metros and will not cater bulk consumption merchandises for consumers in rural regions and insignificant towns. Retail chains are so far, to be established with appropriate range of products mix for the mall outlets. Present day retailing is about investigating and graphing the marketplace, keeping options open, reasonable costs and retaining buyers too. Insignificant outlets are also one of the flaws in the Indian retailing. 96% of the outlets are smaller than 500 sq.ft. The retail chains are also minor than those in the developed nations. The quick expansion of retail sector is the severe upgrading in the accessibility of retail space. But the present scenario in prices, retail real estate hires have amplified extraordinarily, which may cause few retailing business houses to be unavailable. Retail corporations have to spend great rents which are obstacles in the chance of profits. The capacity of sales in Indian retailing is also very little. India has huge population in the globe and an expeditious growing economy. The impact of retail on Indian economy is: Employment Generation Retailing offers occupation to 8% labor in India, because it is highly effort demanding. It has also capable to create eight million more jobs, directly and indirectly. Development of small scale units Retailing also aids small scale units to freely access of the market. They provide a stage for small scale units goods. Retailing in India funds 4 lakh moderate handicraft industries. Growth of real estate The necessity of space is one of the main burdens, so the real estate has also risen over the previous years. In coming days the Indian economy and real estate sector would be shaping into organized retail estate sector. Conclusion Contemporary ways of shopping have been all the time attracting Indians. The retail sector in India is rapidly progressing and the employment potential is mounting day by day. The attitudes of the retailers towards suppliers have been changing so as to extract the best pricing from the suppliers. This secret for all the titans of retail market are planning to invest into the Indian retail sector. India is one the fastest growing economies of the world, by agreeing to FDI in the retail sector there would be a considerable pouring into Indias GDP and economic development. This would also aid the integrating of the Indian retail market with the global retail market. FDI would not only give Indians employment but help Indians to get better wages, incentives and lifestyle, which the present retail market has been unsuccessful in providing. Entry of FDI into Indian market would enhance Indian scenario for supply chain, technology, manpower and skill development. FDI would also catalyze the growth of small and medium scale industries.

The Human Genome Project Essay -- Science Genetics DNA Papers

The Human Genome Project The Human Genome Project (HGP) is a project coordinated by the U.S. Department of Energy (DOE) and the National Institute of Health (NIH). The HGP began in 1990 and was scheduled to be completed in 2005. The goals of the project are to identify all the genes in the human genome (estimated to be 80,000 - 100,000 total) and develop the complete human DNA sequence. After the sequencing is done, a database with all the sequence information can be made and data analysis tools can be developed to use the information. The HGP will then have to consider ethical, legal, and social issues. A new 5-year goal was approved in 1998 in which the HGP could be finished two years earlier than first planned in 1990. The new goal would provide a working draft of the human genome by 2001 and the complete human sequence by the year 2003. NIH and DOE are expecting to sequence 60-70% of the human genome. The other 30-40% will be sequenced by the Sanger Center, a project funded by the Wellcome Trust, and other international partners' (1). The task of sequencing the human genome is time consuming and very tedious. Since the start of the HGP, there has been a very large emphasis on developing new technology to speed progress and cut costs. The DOE has played a large part in the advancement of this new technology. Much of the community at first was curious as to why the DOE would be involved in such a project as the HGP. The DOE is interested in a better understanding how energy and energy-production technologies affect the health risk of people, with the most interest in the effects of radiation (2). The DOE and other private sectors have helped in the advancement of technology very rapidly; the result is lower cost and f... ...Genome Project: 1998-2003. Science 282, 682-689 (1998). 2. The Genome Project-Why the DOE?, http://www.ornl.gov/hgmis/publicat/tko/02_why.html, accessed 10/07/99. 3. Marshall, E. A High-Stakes Gamble on Genome Sequencing. Science 284, 1906-1909 (1999). 4. Potential Benefits of Human Genome Project Research, http://www.ornl.gov/hgmis/project/benefits.html , accessed 10/07/99. 5. Davis, S. The Human Genome Project: Examining The Arc's Concerns Regarding the Project's Ethical, Legal, and Social Implications, http://www.ornl.gov/hgmis/resource/arc.html, accessed 10/13/99. 6. Rothstein, M. A. Human Genome news "Protecting Genetic Privacy: Why It Is So Hard To Do", http://www.ornl.gov/hgmis/publicat/hgn/v10n1/14roth.html, accessed 10/07/99. 7. Gene Therapy - An Overview, http://www.accessexcellence.org/AB/BA/Gene_Therapy_Overview.html, accessed 10/07/99.

Mbo In Russia :: essays research papers fc

Introduction  «The emphasis (of MBO) is on trying to predict and influence the future rather than on responding and reacting by the seat of the pants. It is also a ‘results-oriented’ philosophy of management, one of which emphasizes accomplishments and results. The focus is generally on change and on improving both individual and organizational effectiveness. » A successful implementation of MBO in any country requires a narrow examination of such elements as customs and traditions of that country, which give support to the application of MBO. History These elemets are higly influenced by the history.   Ã‚  Ã‚  Ã‚  Ã‚  Starting from the early centuries, Russian people got accustomed to live under the central rule when the tsar was the only decision-making body in the country. The communication between the rulers and ruled was flowing only one-way. The landlords, owning the farmers, set quotes to farmers without thinking whether they would be able to achieve them.   Ã‚  Ã‚  Ã‚  Ã‚  Afterwards, when the bolshewiks came to rule instead of the monarchy, the same thing happened. Working for a state enterprise, the employees didn’t have a chance to set objectives for their work they performed. The central planning department set quotes, by which all the organizations had to obey even if those planks were set too high to reach. Workers were responsible for reaching organizational goals no matter for at what costs, but on the other side the means by which they had to reach the organizational goals were predetermined by the central planning department. So, we can see that the word  «central », which  «disables » MBO, was quite common and used heavily thrughout the whole history of Russia. Nevertheless, I would say, there were some elements of MBO such as rewarding the employees when they exceeded the quotes set by the central department. Reward was very seldom material. Usually, you would have received a red flag for an excellent work, and your photo would have been printed in the organization’s newspaper. In addition to the rewards, people were working for a common purpose: to reach the communism. And each piece they had produced contributed to this goal. Anyway, this system of rewards worked; it was a good source of motivation although it was resting solely in the willigness of the employees to contribute to the process. Factors that influence management in Russia After we had examined the historical factors that influence the application of MBO, let’s come down to determine factors that influence overall management in Russia now.

Tess of the D´Urbervilles :: Essays Papers

Tess of the D ´Urbervilles Tess of the d ´Urbervilles written by Thomas Hardy is a novel about a young girl of a poor family whose life changes because someone tells her family that they belong to a noble family. But is it a bad change or a good one? This story is written in third person point of view. John Durbeyfield is walking through the street at night and suddenly a historian visiting the town, stops and tells him that his last name is really d ´Urberville and it belongs to a noble family. Sir John hurries and tells the news to his family. He is a very poor man. So he tells his young daughter, Tess, to go find job at their â€Å"family’s† town, but Tess’s mother never warned her about how mean man can be. There, Tess meets a man, Alec d ´Urberville, and in a short time he manages to seduce her and he forces her to do something she didn’t want to. She leaves immediately that town and shortly after finds out that she is pregnant but her baby, soon after being born, dies. This makes her have a lot of anger towards men. When she goes to find a job at another town she meets a very charming man, Angel Clare, and very soon they fall in love and get married, but when Tess tells him her dark secret he is not able to forgive her after he has done wrong too by having relations with a woman he did not love, and knowing it was not Tess’s fault. He then leaves her. While Angel is gone Alec starts to seduce Tess again and she falls for him again. When Angel realizes he was wrong it was too late. Tess then realizes she really loves Angel. Alec was still that mean man she had met and was forced to kill him. Angel and Tess are finally very happy, but just for two days because Tess is put in jail and killed. Alec ends up marrying Tess’s sister Liza-Lu like Tess wanted when she knew she was going to be killed. This story takes place in the countryside of England at first in a little village called Marlott, a poor place in a little cottage where she and her family live, and then in several other towns a bit more sophisticated.

Tennyson Speech

Alfred Lord Tennyson was the poet laureate of the United Kingdom from 1850-1892. His duty as poet laureate was to reach out to the common folk of the time by raising issues/concerns with society and life through his poems meanings that they could relate to. His ability to use the context of his poems to provide a greater meaning to the reader is what made him valued as a great poet. Although the way he manages to transcend the themes of his poems such as unrequited love, passing of youth and patriotism to suit and relate to a modern day society is why he continues to be valued as one. These themes are present through Tennyson’s poetic masterpieces such as ‘The Lady of Shalott’, ‘The Eagle’ and ‘The Charge of the Light Brigade’ in which he uses poetic devices and techniques to compare and contrast the deeper meaning of the poem to real life concerns and issues. Unrequited love is love that is not returned or is unnoticed. This theme is prominent throughout Tennyson’s poem ‘The Lady of Shalott’, as in the poem the Lady of Shalott dies from a curse which is triggered when she leaves her tower because of her love for Lancelot. The Lady of Shalott’ was first published in 1833, when the romantic movement was at its peak, so Tennyson writing about the journey of a women in love makes ‘The Lady of Shalott’ a prime example of Tennyson’s romantic poetry. The poems plot metaphorically represents the pain of unrequited love and the risks involved in sharing your feelings. An example o f unrequited love within the ‘Lady of Shalott’ is when the lady’s dead body floats in the boat to Camelot and Lancelot says â€Å"She has a lovely face†. This shows how oblivious Lancelot is in regards to the lady’s feelings for him and that the love she gives is not returned. Passing of youth is a theme that associates with Tennyson’s poem ‘The Eagle’. The first line of the poem; ‘He clasps the crag with crooked hands’, illustrates to the reader that the creature is holding on to life, and inevitably in the last line ‘And like a thunderbolt he falls’, it has died. In contrast with real life Tennyson uses personification like ‘crooked hands’ and context throughout the poem, to compare an Eagles daily doings to the mortal life of a human being. The last line in particularly implies how quick and sudden death is, with the comparison of an Eagle catching its prey. Also structurally the poem is only six lines long; Tennyson uses this shortness to reinforce (like an Eagle catching its prey) how quickly life goes by. ‘The Charge of the Light Brigade’, is another one of Tennyson’s masterpieces in which contains the theme ‘patriotism’. This theme is exploited throughout the poem as the poem is a tribute to all of the lives lost at the Battle of Balaclava during the Crimean War. To reinforce the patriotism of the soldiers in the poem, Tennyson uses the repetition of the phrase ‘valley of death’ which implies that the death of the soldiers is inevitable but yet they still approach it patriotically. In the poem where it says ‘Cannons to the left of them, Cannons to the right of them, Cannons in front of them’ is an example of imagery which also illustrates to the reader that the death of the light brigade is inevitable and that they are walking straight into it. The final line of the poem ‘Noble six hundred’ is used to portray the soldiers as highly respected because of the deeds that they have committed to on behalf of their country. In conclusion Tennyson’s poetic works are highly valued among society for Tennyson’s ability to pinpoint a specific audience for each of his poems by using the themes like unrequited love, passing of youth and patriotism as found within the ‘The Lady of Shalott’, ‘The Eagle’ and ‘The Charge of the Light Brigade’. Although these themes intertwine to make a greater theme in which a majority of Tennyson’s poems relate to, and this is the preciousness of life. This is the sort of ideology of romanticism where Tennyson critiques society’s traditional values and expectations of living and fulfilling traditional gender roles, and promotes the idea of following your heart and make the most out of life. Tennyson’s ability to transcend these themes from suiting the people of the Victorian era to suit and relate to a modern day society is what continues to make Tennyson be valued as a ‘great poet’.

Finance Case Study

INSTRUCTOR: Mr. Konstantinos Kanellopoulos, MSc (L. S. E. ), M. B. A. COURSE: MBA-680-50-SUIII12 Corporate Financial Theory SEMESTER: Summer Session III Case Study The Many Different Kinds of Debt (solutions) Konstantinos Kanellopoulos 22nd August 2012 CASE STUDY ON The many different kinds of debt It was one of Morse’s most puzzling cases. That morning Rupert Thorndike, the autocratic CEO of Thorndike Oil, was found dead in a pool of blood on his bedroom floor. He had been shot through the head, but the door and windows were bolted on the inside and there was no sign of the murder weapon. Morse looked in vain for clues in Thorndike’s office.He had to take another tack. He decided to investigate the financial circumstances surrounding Thorndike’s demise. The company’s capital structure was as follows: †¢ 5% debentures: $250 million face value. The bonds matured in 10 years and offered a yield of 12%. †¢ Stock: 30 million shares, which closed at $ 9 a share the day before the murder. Yesterday Thorndike had flatly rejected an offer by T. Spoone Dickens to buy all of the common stock for $10 a share. With Thorndike out of the way, it appeared that Dickens’s offer would be accepted, mush to the profit of Thorndike Oil’s other shareholders[1].Thorndike’s two nieces, Doris and Patsy, and his nephew John all had substantial investments in Thorndike Oil and had bitterly disagreed with Thorndike’s dismissal of Dickens’s offer. Their stakes are shown in the following table: | |5% Debentures (Face Value) |Shares of Stock | |Doris |$4 million |1. 2 million | |John |0 |0. | |Patsy |0 |1. 5 | All debt issued by Thorndike Oil would be paid off at face value if Dickens’s offer went through. Morse kept coming back to the problem of motive. Which niece or nephew, he wondered stood to gain most by eliminating Thorndike and allowing Dickens’s offer to succeed? Help Morse solve the case. Which of Thorndike’s relatives stood to gain most from his death? Solutions THE SHOCKING DEMISE OF MR. THORNDIKEMinicase solution, Chapter 25 Principles of Corporate Finance, 9th Edition R. A. Brealey, S. C. Myers and F. Allen After the corpse was removed, police inspectors came to dust the bedroom for fingerprints. Morse knew they would find nothing. He walked down the marble staircase of Rupert Thorndike’s mansion and into the paneled library. He sat at a table in front of the fireplace, scarcely noticing the painting over it, Monet’s portrait of the legendary John D. Thorndike at Giverny. He turned on his laptop computer. Thorndike Oil had three classes of securities outstanding: $250 million of ebentures (face value), 30 million shares, and an issue of subordinated convertible notes. Morse had to calculate the change in the value of each security now that Thorndike was gone, and given the now near-certain acquisition of Thorndike Oil by T. Spoone Dickens. Table 1 reports Morse’s results. The notes summarize his reasoning. With Table 1 in hand, it was easy to calculate the increases in value due to the murder and resulting acquisition. Debt increased by 39. 5% of face value. Common stock increased by $1. 00 per share, and each convertible note increased from 103. 5% to 110% of face value (from $1039. 50 to $1100 per bond). Morse summed the gains to Doris, John and Patsy (see Table 2). Then he reached for his cell phone and dialed Chief Inspector Spillane. Thorndike Oil Table 1 Values of Thorndike Oil Securities Before and After the Murder | |Before |After | |Debt |$151. 25 million, |$250 million | | |60. % of face value |100% of face value | |Equity |$270 million, |$300 million, | | |$9 per share |$10 per share | |Convertible notes |103. 95% of |110% of | | |face value |face value |Notes 1. Debt, before: PV at 12% of the 5% coupon for 10 years, plus repayment of face value (100%) at year 10, is 60. 5% of the $250 million face value, or $151. 25 million. Debt, after: essentially risk-free. The debt will be repaid in short order and should trade very close to face value. The gain in market value is 1 – . 605 = . 395, or 39. 5% of face value. 2. Shares: Share price increases from $9. 00 to $10. 00. 3. Convertible notes: Conversion value before is 110 shares at $9 per share = $990 per $1,000 note. The bonds were trading at 5% over conversion value, or 1. 05? 90 = $1,039. 50. Note holders will convert prior to the takeover, receiving 110? 10 = $1,100. (If they don’t convert, they get only $1,000. ) In other words, the notes increase by 110 – 103. 95 = 6. 05% of face value. Thorndike Oil Table 2 Who Gained Most? (Figures in millions) | |Doris |John |Patsy | | | | | | |Debt |$1. 8 |0 |0 | | |(. 395? 4) | | | | | | | | |Stock |$1. 2 |$0. 5 |$1. | | |(1. 00 ? 1. 2) |(1. 00 ? .5) |(1. 00 ? 1. 5) | | | | | | |Convertible notes |0 |$0. 3025 |$0. 1815 | | | |(. 0605 ? 5) |(. 0605 ? ) | | |___________ |___ ________ |_________ | |Total |$2. 78 |$0. 8025 |$1. 6815 | ———————– [1] Rupert Thorndike’s shares would go to a charitable foundation formed to advance the study of financial engineering and its crucial role in world peace and progress. The managers of the foundation’s endowment were not expected to oppose the takeover. Finance Case Study INSTRUCTOR: Mr. Konstantinos Kanellopoulos, MSc (L. S. E. ), M. B. A. COURSE: MBA-680-50-SUIII12 Corporate Financial Theory SEMESTER: Summer Session III Case Study The Many Different Kinds of Debt (solutions) Konstantinos Kanellopoulos 22nd August 2012 CASE STUDY ON The many different kinds of debt It was one of Morse’s most puzzling cases. That morning Rupert Thorndike, the autocratic CEO of Thorndike Oil, was found dead in a pool of blood on his bedroom floor. He had been shot through the head, but the door and windows were bolted on the inside and there was no sign of the murder weapon. Morse looked in vain for clues in Thorndike’s office.He had to take another tack. He decided to investigate the financial circumstances surrounding Thorndike’s demise. The company’s capital structure was as follows: †¢ 5% debentures: $250 million face value. The bonds matured in 10 years and offered a yield of 12%. †¢ Stock: 30 million shares, which closed at $ 9 a share the day before the murder. Yesterday Thorndike had flatly rejected an offer by T. Spoone Dickens to buy all of the common stock for $10 a share. With Thorndike out of the way, it appeared that Dickens’s offer would be accepted, mush to the profit of Thorndike Oil’s other shareholders[1].Thorndike’s two nieces, Doris and Patsy, and his nephew John all had substantial investments in Thorndike Oil and had bitterly disagreed with Thorndike’s dismissal of Dickens’s offer. Their stakes are shown in the following table: | |5% Debentures (Face Value) |Shares of Stock | |Doris |$4 million |1. 2 million | |John |0 |0. | |Patsy |0 |1. 5 | All debt issued by Thorndike Oil would be paid off at face value if Dickens’s offer went through. Morse kept coming back to the problem of motive. Which niece or nephew, he wondered stood to gain most by eliminating Thorndike and allowing Dickens’s offer to succeed? Help Morse solve the case. Which of Thorndike’s relatives stood to gain most from his death? Solutions THE SHOCKING DEMISE OF MR. THORNDIKEMinicase solution, Chapter 25 Principles of Corporate Finance, 9th Edition R. A. Brealey, S. C. Myers and F. Allen After the corpse was removed, police inspectors came to dust the bedroom for fingerprints. Morse knew they would find nothing. He walked down the marble staircase of Rupert Thorndike’s mansion and into the paneled library. He sat at a table in front of the fireplace, scarcely noticing the painting over it, Monet’s portrait of the legendary John D. Thorndike at Giverny. He turned on his laptop computer. Thorndike Oil had three classes of securities outstanding: $250 million of ebentures (face value), 30 million shares, and an issue of subordinated convertible notes. Morse had to calculate the change in the value of each security now that Thorndike was gone, and given the now near-certain acquisition of Thorndike Oil by T. Spoone Dickens. Table 1 reports Morse’s results. The notes summarize his reasoning. With Table 1 in hand, it was easy to calculate the increases in value due to the murder and resulting acquisition. Debt increased by 39. 5% of face value. Common stock increased by $1. 00 per share, and each convertible note increased from 103. 5% to 110% of face value (from $1039. 50 to $1100 per bond). Morse summed the gains to Doris, John and Patsy (see Table 2). Then he reached for his cell phone and dialed Chief Inspector Spillane. Thorndike Oil Table 1 Values of Thorndike Oil Securities Before and After the Murder | |Before |After | |Debt |$151. 25 million, |$250 million | | |60. % of face value |100% of face value | |Equity |$270 million, |$300 million, | | |$9 per share |$10 per share | |Convertible notes |103. 95% of |110% of | | |face value |face value |Notes 1. Debt, before: PV at 12% of the 5% coupon for 10 years, plus repayment of face value (100%) at year 10, is 60. 5% of the $250 million face value, or $151. 25 million. Debt, after: essentially risk-free. The debt will be repaid in short order and should trade very close to face value. The gain in market value is 1 – . 605 = . 395, or 39. 5% of face value. 2. Shares: Share price increases from $9. 00 to $10. 00. 3. Convertible notes: Conversion value before is 110 shares at $9 per share = $990 per $1,000 note. The bonds were trading at 5% over conversion value, or 1. 05? 90 = $1,039. 50. Note holders will convert prior to the takeover, receiving 110? 10 = $1,100. (If they don’t convert, they get only $1,000. ) In other words, the notes increase by 110 – 103. 95 = 6. 05% of face value. Thorndike Oil Table 2 Who Gained Most? (Figures in millions) | |Doris |John |Patsy | | | | | | |Debt |$1. 8 |0 |0 | | |(. 395? 4) | | | | | | | | |Stock |$1. 2 |$0. 5 |$1. | | |(1. 00 ? 1. 2) |(1. 00 ? .5) |(1. 00 ? 1. 5) | | | | | | |Convertible notes |0 |$0. 3025 |$0. 1815 | | | |(. 0605 ? 5) |(. 0605 ? ) | | |___________ |___ ________ |_________ | |Total |$2. 78 |$0. 8025 |$1. 6815 | ———————– [1] Rupert Thorndike’s shares would go to a charitable foundation formed to advance the study of financial engineering and its crucial role in world peace and progress. The managers of the foundation’s endowment were not expected to oppose the takeover.