Affirmative Action and Higher Education Essays - Education

Affirmative Action and Higher Education Mary Tidwell Herzing University Our textbook defines critical thinking as "a collection of skills we use every day that are necessary for our full intellectual and personal development. Critical thinking requires learning how to think rather than simply what to think." (Boss, 2014, p. 5) I feel that the author, Nancy Cantor did use critical thinking that was described in this week's material. Critical thinking is not just about abstract thought. It is also about self-improvement and your whole development as a person. Working on yourself requires that you be honest with yourself and others about your biases, your expectations, your strengths, and your limitations.(Boss, 2014, p. 14) She has a strong anthropocentrism about students and their education. Anthropocentrism is a belief that humans are the central or most significant entities of the universe. (Boss, 2014, p. 27) I believe she has a good case to support her claims. Nancy made a good point when she said, "Race is used as a plus factor, along with other life experiences and talents." (Nancy Cantor) By her logic, "It is appropriate, and indeed critical, for the best institutions in the world to create the broadest possible mix of life experiences. Race is a fundamental feature of life in America, and has an enormous impact on what a person has to contribute on campus." (Nancy Cantor) which helps students in the real world after college, with possibility that race can play a constructive role in our nation's future. Today's society has so much talent in all cultures that it is unbelievable how this world has changed. Critical thinking involves the application of the rules of logic as well as gathering evidence, evaluating it, and coming up with a plan of action.(Boss, 2014, p. 6) By using a collaborative approach as described in our textbook, culture and historical experiences can help America move forward instead of staying where we are at this point in time. Imagine one day that race is no longer an issue, what do you think the world would be like? It could be a better place for our children and grandchildren to grow up in. Not having to worry about offending anyone, or worrying about who gets into college based on their race. It would be such a relief to know that you could better your education no matter what your race is. Nancy has engaged in confirmative bias throughout her article. Confirmation bias is the dualistic stage of research, seeking out evidence that supports your view and dismissing evidence that contradicts it. (Boss, 2014, p. 8) "It is time America sees affirmative action on college campuses for what it is: a way to enrich the educational and intellectual lives of white students as well as students of color. (Nancy Cantor) Affirmative action could be a good thing as Nancy Cantor states above. By bringing people from all walks of life together in one place, we can learn from each other's experiences and get out of our dualistic stage faster. Reference Boss, J. (2014), Think: Critical thinking and logic skills for everyday life (3rd ed.). New York: McGraw Hill. Nancy Cantor, (2003), Chicago Tribute.

The Effects of Drugs and Alcohol on the Body essays

The Effects of Drugs and Alcohol on the Body essays When we bring drugs and alcohol into our campus community, we are not only effecting ourselves, but we are also effecting all the other aspects that make up our community. The consequences undoubtedly outweigh the brief release that we receive from these unnecessary substances. When we bring these things into our community, we are not only breaking a strictly enforced rule, we are endangering the well being of ourselves and each other. There are several risks when it comes to bringing drugs or alcohol into our campus community. When under the influence of alcohol or drugs, we are at the risk of harming ourselves and others. If we decide we are sober enough to drive home we are not only putting ourselves at risk, we are putting everyone else on the road in danger also. If we do not drive, there are still risks. Consumption of alcohol or drugs can and will effect our ability to make correct and logical decisions which may lead to issues we are not yet ready to deal with. We do not, however, always consider the long term effects of drugs on our bodies. Alcohol and drugs have an immense impact on our body and the way it functions. If these substances are used on a regular basis, there is a significant likelihood for an addiction to be acquired. When we use drugs and alcohol we are damaging our brain and the way it functions and thus we are not able achieve our goals for our college experience. There are also people from our homes that care dearly about us. When we use drugs and alcohol, the consequences directly effect our families and loved ones as much as they effect ourselves. When we use these substances we are more than likely disappointing our loved ones and undoubtedly hurting their feelings. We are all young. If we use unhealthy substances now we are risking suffering for the rest of our lives. Liver disease, cancer, lung disease, brain deterioration, heart disease, stomach ...

Case Analysis of Denver International Airport Essay

Case Analysis of Denver International Airport - Essay Example When it finally opened to the public 16 months behind schedule it has 5 runways and 88 gates and in many ways represented a model airport for the future. According to the master plan the airlines tenants were expected to install their own baggage handling system, thus excluding the construction of a baggage handling system by the overall DIA project. Subsequently, United Airlines insisted on an automated high-speed baggage system. The Denver officials designed a large scale baggage handling system at a cost of $193 million that would require no manual labor (Ma ¨hring, Holmstro ¨m, Keil & Montealegre (2004). The design was intended to run faster and more reliable than traditional technology. The root cause of the problem is that the city failed to properly plan for the construction of the new DIA airport. They moved ahead with the designing and construction of the airport with out the input of the customers. The root cause of the problem was the faulty planning. The first and foremost reason was that the baggage handling system was not decided at the initial stage. It was a subsequent addition by which time the basic design had already been approved. In addition to the late decision of building the automated baggage handling system, during the development stage, the airlines kept changing their requirements. This led to frequent changes in the design and construction. The power systems for the revised design were not altered, which led to overloaded motors and finally mechanical failures in the system testing. The optical sensors also did not read the barcode properly which caused the system routing problem. BAE had been appointed to design and implement the automated baggage handling system. At the same time, BAE, United airlines and the City of Denver, all has their own consultants and project leaders. BAE enjoyed the reputation of being among the best and on the strength of its good

Parental involvement in 'homework' does it help children achieve their Essay

Parental involvement in 'homework' does it help children achieve their school based targets - Essay Example vidence shows that different elements of parents’ involvement provide a cognitively stimulating home environment which reinforces parental beliefs and aspirations (Feinstein et al. 2006: 301). The proposed project aims at producing a comprehensive and reliable research on the relationship between parental involvement in homework and its impact on pupil achievement. The investigation looks into the parent-child relationship in terms of parental support, family learning, parental involvement and parents’ level of education and pupil achievement. Parental involvement in early intervention programmes has been found to equate with better outcomes for the child. Most effective interventions involve parents in pre-school children’s cognitive development. Play and fun and scope for physical activity seem to produce most effective outcomes. Parents’ self esteem is very important in determining long term outcomes for both themselves and their children. The objective of this research project is to identify if parents that are involved in their children’s homework will promote the achievement of their school based targets. This will be accomplished by identifying the current guidelines on homework and why do parents get involved. A portion of this research will be my own analysis of my practice as a parent in the contribution of homework. A plan will be devised on how best to support a child with their homework by considering a number of strategies as suggested by Hoover-Dempsey et al (2004). To conclude the study there will be examination of literature with a personal opinion. Homework, especially for primary age pupils, has become the subject of an increasingly heated debate. There are opinions in favour as well against the practice of homework. Despite government guidelines that primary school pupils should do at least 30 minutes of homework a day, some unions and academics doubt its efficacy, and protest that the home lives of pupils are becoming increasingly

Colonial theory questions and joe turners come and gone Essay

Colonial theory questions and joe turners come and gone - Essay Example The play also chronicles the conflicts of slavery, identity, discrimination and racism and migration that the African-Americans had to deal with during the western colonization. Generally, the events in the play represent the kind of life that Africans were exposed to during the period of western colonization. The three main themes covered by the play are identity, migration and racial segregation. Racial Discrimination During the colonial period, western countries established colonies on other continents with the aim of making profit, expanding their territories and power, and for political and religious reasons. In Africa, the move of the western nations to colonize the continent exposed Africans to slavery, migration, discrimination and loss of African identity (Bloom, 135). Thus, in his play, August Wilson highlights the oppressions that the African people were exposed to during the colonial period. Similar to the period of western colonization, August Wilson, in his play present s African-Americans as being exploited and discriminated against by the whites. And, just as Africans were forced to migrate to other areas due to racial discrimination, August presents the life in the American South as marred with intense discrimination thus forcing some African-Americans such as Martha to migrate to Pennsylvania.

Company Analysis for Investment Opportunities

Company Analysis for Investment Opportunities 1 Introduction We have organised a shareholders club which we have called 6IM. There are six members within 6IM of which we all have  £1000 each to invest. As part of our Investment process we have decided to choose three companies in different sectors and conduct an in depth financial analysis. Due to the three companies working in different sectors we have also analysed key financial data of a major competitor to that particular company. We feel this will enable us to gain a greater understanding of the industry of which the three companies are working in and also a direct financial comparison with our chosen companies. Our report will begin with a brief profile of the three companies followed by a SWOT analysis to enable us to paint a picture of where the company currently sit and the potential investment opportunities and risks associated with that particular company. In addition to this we will conduct a five forces investigation to understand the industries competitiveness. In respect of financials we will gain an understanding of the numbers in the annual reports of both our targeted three companies and also our competitors. We will use a number of investment ratios to quantify the numbers which will help us review the performance of our chosen companies against our competitors and in addition devise a brief explanation as to what aspects of the business have made a positive or negative impact on the ratio in which we are assessing. The ratios that we will choose will be independent of each other due to the fact that some ratios are more relevant than others in certain industries. The ratios will be conducted for each of the last 3 financial years for both our targeted companies and competitors. The ratios will be split into four categories liquidity, profitability, financing and investment. Finally we will then standardise the ratios and compare our three chosen companies. We will use a marking system to identify which company we feel excel in each ratio to help us arrive at our chosen investment vehicle. The three companies in which we will be conducting the report on are: 1) MGM Grand Sector: Leisure Tourism Fiscal year: Jan 01st – Dec 31st 2) Rio Tinto Sector: Mining Fiscal year: Jan 01st – Dec 31st 3) Toyota Sector: Car manufacturing Fiscal year: April 01st – March 31st Investment Objective A medium term investment of 5 years Provide income through dividends Provide capital growth at the end of the term We would be looking at an annual expected return of between 8% and 10% Tax Implications 6IM discussed about the tax implications of our investment objectives. We felt that as we were all basic rate taxpayers receiving a dividend would be beneficial as we would not be impeded by the non reclaimable 10% tax credit or would we have a further liability of 22.5% due to the fact we were not higher rate tax payers. Regarding capital growth it was decided that if our money had grown substantially over the five years and the profit was above the capital gains tax annual exemption we would realise the gains over two tax years to ensure we would utilise as much of the gain tax free as possible. According to Tax Facts 2009-2010 (2009), Current Capital Gains Tax annual exemption is:  £ 10,100 (2009-10) Current Capital Gains Tax subject to being over the exemption is: 18% Attitude to Risk 6IM have agreed that we will adopt a moderately adventurous attitude to risk. As part of our risk assessment, collectively we decided to assess ourselves using a risk attitude profiling questionnaire as per Appendix II which was designed by Scottish Life a leading Life Pension investment provider. We discussed our views on ethical investments and we concluded that whilst our opinions were not strong enough to adopt negative screening criteria which would be to completely disregard any unethical company, we would look to see if the companies are trying to improve the way they work. In respect of the three companies chosen we also discussed that we would need to be aware of currency risk, political risk, market risk and inflation risk which would be in addition to the business risk and investment specific risk of the company. Finally our thoughts were if we felt that each of the companies were viable in respect of investment we would be happy to spilt our money and invest in all three which would gain potentially reduce our risk through diversification. 2 Marketing and industry data 2.1 MGM GRAND 2.1.1 Background and mission Background MGM operates in a very competitive entertainment and hospitality industry and is located on the New York Stock Exchange. The company owns, develops and operates casino and non casino resorts. The majority of MGMs hotels are located in Nevada where they own approximately 700 acres of land on the Las Vegas strip. Whilst MGM have a variety of hotels that occupies this land they also have a meaningful proportion that is considered undeveloped and could offer future investment opportunities. As well as resorts in Las Vegas, MGM also have operations in Michigan, Mississippi, Macau, Atlantic City and Illinois. One of their latest developments is the MGM Grand Ho Tram which will consist of a 4.2 billion multi property resort complex along the beaches of Southern China. In addition to this MGM will also open in December 2009 on the Las Vegas strip a project called City Centre which is a joint venture with Dubai World. MGM as at 31st December 2008 employ approximately 46,000 full time staff and 15,000 part time staff, they pride themselves on offering excellent customer service which has been demonstrated by many accolades, including AAA five diamond and 4 diamond awards at hotels and restaurants across their portfolio. There quality and reputation was enhanced further in October this year when 7 of MGMs restaurants were honoured with at least one Michelin star which demonstrates the quality they strive for. MGMs revenue in 2008 decreased by 6.27% which was largely down to the economic conditions and with MGM having the vast majority of its portfolio in Las Vegas this could be demonstrated by the reduction in visitor volumes during the time period (Appendix I). MGM feel whilst times are currently tough James J. Murren Chairman and CEO states â€Å"There company is well positioned to face the future thanks to our dedicated management team and work force, premier brands and best in class resorts. When the cycle changes, we will be stronger, with a foundation of experienced operators and an efficient operating profile that is not only business ready but has been battle tested.† (MGM Annual Report, 2008 p.8) Mission MGM Mirage Mission Statement, â€Å"Our mission is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every corner of the world in order to enhance a shareholder value and to sustain employee, customer and community relationships† (MGM Mirage, 2009). 2.1.2 SWOT analysis Strength Quality Employees: MGM have invested heavily in recruiting, training and maintaining employees. They run a variety of programs for example a diversity program which looks at unique strengths of individuals and being able to blend them to work together to achieve greater performance. In addition to training, to ensure they maintain their employees in August 2007 MGM entered into an agreement with 21,000 thousand of its Las Vegas employees to provide an increase in wages and benefits of approximately 4% annually. Diversified Offering: MGM would be expected to earn the majority of its revenues from gaming however this is not the case with over half of its net revenue derived from non gaming activities. MGM offer a complete resort experience for its guests, with their non-gaming activities being offered at a premium due to the quality of their offering. Brand Name Awareness: MGM is one of the leading hotel and leisure companies as at December 31st 2008 their operations consisted of 17 wholly owned casino resorts and a 50% investment in 4 other casino resorts. This high brand name awareness gives MGM a distinct advantage when competing against other casino brands and helps enable them to draw more customers. Weaknesses Financial Strength: In February 2009 all of the major credit rating agencies – Moodys, Standard Poors and Fitch downgraded MGMs rating on long term debt, there was a further downgrade by Moodys in March 2009. These downgrades will again potentially make it very difficult for MGM to obtain debt finance and may even increase the cost of any future debt financing. Amount of Indebtedness: As at the 31st December 2008, MGM had long term debt totalling approximately US$ 13.5 billion dollars. The amount of debt and the inability of MGM to take on further debt could have a catastrophic impact on its business. It is uncertain that the sources of credit they have available will be sufficient to fund current financial commitments, whilst MGM have received a waiver that they do not have to comply with certain financial covenants this has led to further restrictions and requirements for them to adhere to. Weak Returns: In 2008 MGM have seen a reduction in the majority of their financial ratios compared with its 2007 figures. The figures can be seen in our ratio analysis section of the report and whilst an explanation of the figures have been discussed, the reduced ratios can only cause investors concern and a reduction in confidence in placing investment into MGM. Opportunities Joint Ventures to co-develop resorts and Casinos. Expansion in developing countries. Threats Legal and Regulatory Threat: The gaming industry is highly regulated in which MGM must pay gaming taxes and maintain their licenses to continue their operations. A change in tax laws could adversely affect the profitability of their organization, in addition to tax changes if a regulation is violated in one jurisdiction this could result in disciplinary actions in other jurisdictions. Economic Market: Hotel revenue decreased by 10% in 2008 due to decreased occupancy and lower average room rates. The customers however that do make it to the resorts are spending less, which MGM believe is due to their inability to access near term credit which has led to a shift in spending from discretionary items to more fundamental costs (MGM Annual Report, 2008). A direct impact on MGM is the weak housing and real estate market both generally and in Nevada. 2.1.3 Leisure Tourism industry Five Forces analysis Threat of new entrant Due to the current economy recession, hotel industry suffered a setback in revenue. Hence, this industry is viewed as unattractive. Excessive initial setup investment. Extensive regulation generally concerns the firms responsibility, financial stability and character of the owners. Also, high license maintenance fee and gaming taxes discourages new entrants. New entrants to such markets must then spend heavily on advertising and promotion to gain levels of brand awareness of the existing players. Intensity of rivalry among competitors Hotel, resort and gaming business, especially in Las Vegas and Macau, had became increasingly intense where there is rivalry to build the â€Å"biggest and best† hotel/casino. Between 1996 and 2000, the number of hotel rooms at Las Vegas casinos doubled and due to the current economic conditions, the demand for rooms had dropped significantly and resulted in reductions to average room rates due to competitive pressures. Competition between casino companies involved ever more ambitious differentiation. The new casinos in Las Vegas broke fresh ground in innovative entertainment and design features. Threat of substitute products There had been a growing substitute competition for gaming which included an increasing number of state lotteries and offshore gambling on cruise ships. The installation of slot machines in unorthodox gambling area such as horse tracks. The growth of internet gambling. Bargaining power of buyers In the entertainment industry, buyers (consumer) usually have relatively high bargaining power as there is a practically negligible switching cost. The tendency of buyers to explore different hotel for a different experience. Accessibility of information via internet on hotel packages, consumers are now more informed and prepared for the wide range of available hotels specifically in Las Vegas and Macau. Bargaining power of supplier The main sources of supplier power in the service industry are labour unions. The unions cover approximately half of their total employees (30,000 of 61,000 employees) and had successfully negotiated for increases in wages and benefits of approximately 4% annually via the newly signed 5 year collective bargaining agreement in August 2007. The other supplies to hotel consist of food and beverage, retail merchandise and operating supplies. Due to economies of scale, big buyers like MGM would have an advantage over their suppliers as they can easily switch due to the wide availability of the supplies and its continuous stream of demand. 2.2 RIO TINTO 2.2.1 Background and mission Background Rio Tinto is a leading international mining business headquartered in London. Rio Tinto Group combines Rio Tinto Plc (listed on London Stock Exchange) and Rio Tinto Limited (listed on the Australian Securities Exchange) and operates as a single entity. The group is involved in mining and supply of minerals and metals including aluminium, coal, copper, diamonds, gold, iron ore, uranium and other industrial minerals. It operates in more than 50 countries and employs approximately 106,000 people (Rio Tinto, 2008). The companys main production areas are in Australia and North America however there are significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto concentrates on large scale mining operations that have a long life and are cost effective. The company recorded revenue of US$ 54,264 million in 2008, an increase of 83% over 2007. Annual production records set for iron ore, bauxite and alumina. The business had a record net capital expenditure of US$ 8.5 billion, a 71% rise over 2007 (Rio Tinto, 2008). Mission â€Å"Rio Tinto aimsto maximise the overall return to its shareholders by sustainably finding, mining and processing mineral resources areas of expertise in which we have a clear competitive advantage.A fundamental part ofthis is to deliver value while operating in an ethically and socially responsible manner, and remaining committed to long term sustainable development.† (Rio Tinto, 2009) 2.2.2 SWOT analysis Strength International mining group ranks amongst top five commodities producers. Rio Tinto has extensive line of business (Iron ore, Copper, Energy, Aluminium, Industrial Minerals and Diamond) and each division provides its services to different industries. Company is well diversified in terms of the products and the markets. Geographically companies operations are spread over six continents. Globally number one producer of Aluminium because of recent acquisition of Alcan in October 2007. Alcan was ranked globally among top three producers of Aluminium and Bauxite. Worlds largest Uranium supplier. Weaknesses Majority of Iron ore and coal contracts are sold at annual contract price rather than the spot market. There is a significant deterioration in the pricing environment of these commodities. Production of zinc and silver by the company has been decreasing in recent times. Opportunities BP and Rio Tinto entered into partnership for the formation of a new jointly owned company, Hydrogen Energy, which will develop decarbonised energy projects around the world and lead the path for sustainable future uses of coal. The growing importance of uranium as a resource for future energy needs. Threats In the recent time there is a significant reduction in the commodity prices and the demand of the market especially because of the global economic crisis. Rising concern for environmental issues, health and safety standards across the globe. Especially for the industry to meet standards and quotes agreed in the KYOTO Protocol. 2.2.3 Mining industry Five Forces analysis Threat of new entrant High demand of capital as entry cost makes it tough for new entrant to enter in this field. Very low availability of new mining areas (mines) and risk on capital involved in searching for new mining areas restricts new entry in this field. Requirement of high, sophisticated and costly technology is again an entry barrier for new entrant. High government and environmental regulations. Intensity of rivalry among competitors High demand and optimum supply leads to limited rivalry amongst competitors. Threat of substitute products Being a standardised product (commodities) and basic raw material to the industry or to the end customers, there is no availability of substitute. Prices are fixed at macro level generally by external authorities (government) so the variability in prices of different suppliers is absent. Bargaining power of buyers Strong control on Pricing by government leads to low bargaining power of customers. Unavailability of substitute products shifts the favour towards the supplier from the customers. Customers (Industries) dependency on existing channel of distribution and product is very high; therefore the customers power is again low. Bargaining power of supplier Bargaining power of suppliers supplying technology is high because of the sophisticated technology requirement and reduced availability of specialist suppliers. Skilled labour requirements are high and availability is lower because of less lucrative future prospects that shift the favour towards suppliers. 2.3 TOYOTA 2.3.1 Background and mission Background Toyota Motor, the worlds largest automotive manufacturer, has a powerful aspiration to become ‘Greener. The company makes a hybrid-powered (petrol and electric) sedan – the ‘Prius that is being snapped up in US and European markets. Its petrol-powered cars, pickups, minivans, and SUVs include such models as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the Scion brand, and a full-sized pickup truck, the V-8 Tundra. Toyota also makes forklifts, manufactured housing and offers financial services. Once a dark horse in the global automotive game, Toyota overtook Chrysler and Ford in worldwide sales and surpassed General Motors in 2008. The company gets nearly half of its sales from Asia (Just Auto, 2009). Mission Toyotas management value has developed from the companys origins and has been contemplated in the termsâ€Å"Just in Time Production† and Lean Manufacturing, which it was instrumental in developing (Strategonic, 2009). The Toyota Way has five mechanisms (Liker Jeffrey K., 2003): Perfecting business process. Eliminating wasted time and resources Building quality into workplace systems Building a learning culture for continuous improvement. Finding low-cost but reliable alternatives to expensive new technology 2.3.2 SWOT analysis Strength Toyota has become the lead name in the global market. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. The important edge over the companys competitors is the ample availability of the spare parts in the markets. Toyota is a financially strong company. This can be demonstrated by the analysis of the financial reports. Toyota vehicles have got a much stronger resale value than any other car in the global markets. This is why people prefer to buy a Toyota. Toyota is proud to have a successful team of competent managers and skilled workers. Extensive training has enabled the employees to perform outstandingly. Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers. Weaknesses Being big has its own problems. The World market for cars is in a condition of oversupply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan therefore it is exposed to fluctuating economic and political conditions in those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging India and Chinese markets. Movements in exchange rates could see the already narrow margins in the car market being reduced. There are some weaknesses in the dealership network. The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota. This can result in customer complaints. A lot of effort is put into the sales forecasting because of the changing political and economic scenarios. For these reasons inventory has to be kept low. Opportunities Export is a major opportunity for Toyota Motors. Toyota can do better by focusing on segments much more than what is presently being done. Toyota is to target the urban youth market. The company has launched its Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at the rear. The narrow segment is notorious for it narrows margins and difficulties for branding. Switching diesel market toward petrol and CNG market. Threats Even though Toyota enjoys the position of being the no.1 automobile company, still it faces some threat from competitors especially Honda. Honda has adopted aggressive strategies for capturing the market. In 2005 the recall of 80,000 SUVs negatively impacted on the brand of Toyota and posed a threat to its future reliability and sales. Even though Toyota keeps a careful eye on the changing trends, still the changing customer needs and trends can prove to be a threat. 2.3.3 Automobile industry Five Forces analysis Threat of new entrant Slow lethargic state of economy resulting in low per capita income leads to declined consumption. Hence, the productivity decreased at manufacturing level. Automobile sector is already over saturated market for the provided demand base. Initial cost of capital is very large. Industry requires highly specialised technology or plants and equipments. Constant RD: Patent and proprietary of auto designs restrict the entry into an industry. Intensity of rivalry among competitors Due to high cost of competition automobile industry earns low returns. Competition has intensified rivalry by offering rebates, long-term warranties and preferred financing to lure the customers which have put pressure on the profit margins. Foreign Trade increased the degree of rivalry. Export becomes essential for expansion and competition. High exit barrier: Entrants are reluctant to commit to acquiring specialised assets that cannot be sold or converted into other uses if the venture fails. Threat of substitute products Consumer seek substitute like bus, train or aeroplane to reach their destination. Peoples likeliness to seek alternative transportation depends upon the cost of operating a vehicle. Higher the operating cost less likely people will buy the automobile. Consumers decision to buy vehicles largely depends upon the price of petrol. Emergence of very small and economical car segment in automobile sector. Bargaining power of buyers Consumers are highly price sensitive and generally dont hold much buying power as they never do bulk purchase of cars. Wider range of product, negligible switching cost, readily available. More shrewd customers: Customers are very particular in terms of brand selection, technology and price of product. Dealers are cherishing the freedom of selling more than one brand at any time. Bargaining power of supplier Due to the fragmented automobile industry, most of the suppliers depend on just one or two automakers to buy majority of the products. Switching the supplier is devastating to the business of previous supplier. Long term supplier relationship in the automobile sector, which is considered to be an oligopoly, makes the relationship obligatory for suppliers and hence the supplier has lower grip on the prices Suppliers provide secondary material and have little responsibility over the design and assembly of automakers. Therefore, essentially little power is given to suppliers. 3 Financial Analysis The report describes a financial statement analysis between companies of our choice with their closest competitor which is followed by a 3 year trend analysis to provide an indication of the consistency of the companys performance. Assessment of performance will focus on 4 main areas namely profitability, liquidity, financing and investment. In order to provide comparability, relevant financial figures are converted to US dollar as per exchange rate stated in respective annual report. 3.1 MGM GRAND 3.1.1 Profitability Gross Operating Margin According to Walton and Aerts (2009) gross operating margin is the preferred ratio to measure operation efficiency. In the hotel industry, cost of sales revolve around payroll related expenses, gaming related taxes, room, convention, retails and other expenses. In year 2008, MGMs gross operating profit had dropped from 48% to 44%, due to drop in room occupancy by 10% affecting sales with no reduction in Cost of Sales in comparison to 2007. Stagnant Cost of Sales could be explained as there are several fixed expenses like payroll, electricity, food, etc would still be maintained regardless of room occupancy and further to that, in August 2007, there are total of 21,000 MGM employees entered into a 5 year agreement which provides approximately 4% annual increment in wages and benefits. This had contributed to the increase of the payroll expenses in 2008. As for Las Vegas Sands, through the opening of new hotels like Venetian Macao, The Palazzo and Four Seasons in 2008 it had increased its sales, however there were a substantial amount of additional payroll, advertising and promotion as part of opening activities related expenses and the launching of new passenger ferry service operations in Macao where it had an additional US$100 million in operating expenses. This had affected its gross operating profit margin to drop from 40% to 36% in 2008. In terms of gross operating profit margin, MGM had been observed as a better company in controlling cost as its margin had been higher than competitor Las Vegas Sands by 7% on annual basis. Net Profit Margin According to Walton and Aerts (2009), net profit margin explains that the ratio shows how successful the management is in creating profit from a given quantity of sales. MGM has steadily increased its net profit margin except in 2008, this compares favourably to its competitor Las Vegas Sands who has shown a trend of reducing profits since 2006. The size of the loss however in 2008 was far greater for MGM. Whilst the revenues for MGM have remained fairly constant, the reduction in profit was largely down to certain areas of its operating expenses in particular US$1.2 billion impairment charge related to goodwill and an indefinite lived intangible asset recognised in the Mandalay acquisition in 2005. Having reviewed the accounts, we would also address an area of caution in the MGM profit margin in 2007 as there was a one off recognition of a US$1.03 billion gain in relation to the City Centre Project. Due to the fluctuation in MGM net profit margin due to several onetime adjustments in the years 2007 and 2008 which makes it insufficient for comparison against Las Vegas Sands, hence only figures from 2006 would be taken for assessment where Las Vegas Sands net profit margin seems more favourable than MGM. Return on capital employed (ROCE) Return on capital employed (ROCE) is a performance ratio that demonstrates how much the company has earned on invested long-term funds (Walton and Aerts, 2009). In 2008, MGM board of directors had announced 20 million share repurchase which caused the total shareholder equity to drop by 34%. With this drop, we would be expecting an increase in ROCE ratio from 0.17 to 0.19 if income before tax and long debt remains the same in 2008. However due to the loss in 2008, the actual ROCE ratio indicates a negative return of 0.79% in relation to equity. On the other hand, Las Vegas Sands ROCE ratio in 2008 had dropped by 2% due to the increased of total asset by 33% due to the distribution of common share and preference stock amounting US$ 2.56 billion, which increased the stockholder equity by 50% and additional long term debts amounting US$ 2.84 billion. Despite the fact that Las Vegas Sands ROCE ratio had dropped in 2008, Las Vegas Sands still stand a better position than MGM as there are still positive returns. Return on shareholders equity (ROECE) MGM over the three years have had a very volatile ROECE which saw progression from 2006 to 2007 but in 2008 produced a negative 5.22% return in relation to Shareholder Equity. The components that make up the ROECE are very similar to the ROCE except that the ROECE is after interest and tax but before payments of dividends. In respect of MGM dividends are irrelevant as they have not paid a dividend in the last three years. The negative return in 2008 was solely down to their losses of US$670 million from their continuing operations before income tax. This loss was further inflated by US$186 million provision for income tax expense even though the company made a loss. The provision was for a non deductable good Company Analysis for Investment Opportunities Company Analysis for Investment Opportunities 1 Introduction We have organised a shareholders club which we have called 6IM. There are six members within 6IM of which we all have  £1000 each to invest. As part of our Investment process we have decided to choose three companies in different sectors and conduct an in depth financial analysis. Due to the three companies working in different sectors we have also analysed key financial data of a major competitor to that particular company. We feel this will enable us to gain a greater understanding of the industry of which the three companies are working in and also a direct financial comparison with our chosen companies. Our report will begin with a brief profile of the three companies followed by a SWOT analysis to enable us to paint a picture of where the company currently sit and the potential investment opportunities and risks associated with that particular company. In addition to this we will conduct a five forces investigation to understand the industries competitiveness. In respect of financials we will gain an understanding of the numbers in the annual reports of both our targeted three companies and also our competitors. We will use a number of investment ratios to quantify the numbers which will help us review the performance of our chosen companies against our competitors and in addition devise a brief explanation as to what aspects of the business have made a positive or negative impact on the ratio in which we are assessing. The ratios that we will choose will be independent of each other due to the fact that some ratios are more relevant than others in certain industries. The ratios will be conducted for each of the last 3 financial years for both our targeted companies and competitors. The ratios will be split into four categories liquidity, profitability, financing and investment. Finally we will then standardise the ratios and compare our three chosen companies. We will use a marking system to identify which company we feel excel in each ratio to help us arrive at our chosen investment vehicle. The three companies in which we will be conducting the report on are: 1) MGM Grand Sector: Leisure Tourism Fiscal year: Jan 01st – Dec 31st 2) Rio Tinto Sector: Mining Fiscal year: Jan 01st – Dec 31st 3) Toyota Sector: Car manufacturing Fiscal year: April 01st – March 31st Investment Objective A medium term investment of 5 years Provide income through dividends Provide capital growth at the end of the term We would be looking at an annual expected return of between 8% and 10% Tax Implications 6IM discussed about the tax implications of our investment objectives. We felt that as we were all basic rate taxpayers receiving a dividend would be beneficial as we would not be impeded by the non reclaimable 10% tax credit or would we have a further liability of 22.5% due to the fact we were not higher rate tax payers. Regarding capital growth it was decided that if our money had grown substantially over the five years and the profit was above the capital gains tax annual exemption we would realise the gains over two tax years to ensure we would utilise as much of the gain tax free as possible. According to Tax Facts 2009-2010 (2009), Current Capital Gains Tax annual exemption is:  £ 10,100 (2009-10) Current Capital Gains Tax subject to being over the exemption is: 18% Attitude to Risk 6IM have agreed that we will adopt a moderately adventurous attitude to risk. As part of our risk assessment, collectively we decided to assess ourselves using a risk attitude profiling questionnaire as per Appendix II which was designed by Scottish Life a leading Life Pension investment provider. We discussed our views on ethical investments and we concluded that whilst our opinions were not strong enough to adopt negative screening criteria which would be to completely disregard any unethical company, we would look to see if the companies are trying to improve the way they work. In respect of the three companies chosen we also discussed that we would need to be aware of currency risk, political risk, market risk and inflation risk which would be in addition to the business risk and investment specific risk of the company. Finally our thoughts were if we felt that each of the companies were viable in respect of investment we would be happy to spilt our money and invest in all three which would gain potentially reduce our risk through diversification. 2 Marketing and industry data 2.1 MGM GRAND 2.1.1 Background and mission Background MGM operates in a very competitive entertainment and hospitality industry and is located on the New York Stock Exchange. The company owns, develops and operates casino and non casino resorts. The majority of MGMs hotels are located in Nevada where they own approximately 700 acres of land on the Las Vegas strip. Whilst MGM have a variety of hotels that occupies this land they also have a meaningful proportion that is considered undeveloped and could offer future investment opportunities. As well as resorts in Las Vegas, MGM also have operations in Michigan, Mississippi, Macau, Atlantic City and Illinois. One of their latest developments is the MGM Grand Ho Tram which will consist of a 4.2 billion multi property resort complex along the beaches of Southern China. In addition to this MGM will also open in December 2009 on the Las Vegas strip a project called City Centre which is a joint venture with Dubai World. MGM as at 31st December 2008 employ approximately 46,000 full time staff and 15,000 part time staff, they pride themselves on offering excellent customer service which has been demonstrated by many accolades, including AAA five diamond and 4 diamond awards at hotels and restaurants across their portfolio. There quality and reputation was enhanced further in October this year when 7 of MGMs restaurants were honoured with at least one Michelin star which demonstrates the quality they strive for. MGMs revenue in 2008 decreased by 6.27% which was largely down to the economic conditions and with MGM having the vast majority of its portfolio in Las Vegas this could be demonstrated by the reduction in visitor volumes during the time period (Appendix I). MGM feel whilst times are currently tough James J. Murren Chairman and CEO states â€Å"There company is well positioned to face the future thanks to our dedicated management team and work force, premier brands and best in class resorts. When the cycle changes, we will be stronger, with a foundation of experienced operators and an efficient operating profile that is not only business ready but has been battle tested.† (MGM Annual Report, 2008 p.8) Mission MGM Mirage Mission Statement, â€Å"Our mission is to deliver our winning combination of quality entertainment, luxurious facilities and exceptional customer service to every corner of the world in order to enhance a shareholder value and to sustain employee, customer and community relationships† (MGM Mirage, 2009). 2.1.2 SWOT analysis Strength Quality Employees: MGM have invested heavily in recruiting, training and maintaining employees. They run a variety of programs for example a diversity program which looks at unique strengths of individuals and being able to blend them to work together to achieve greater performance. In addition to training, to ensure they maintain their employees in August 2007 MGM entered into an agreement with 21,000 thousand of its Las Vegas employees to provide an increase in wages and benefits of approximately 4% annually. Diversified Offering: MGM would be expected to earn the majority of its revenues from gaming however this is not the case with over half of its net revenue derived from non gaming activities. MGM offer a complete resort experience for its guests, with their non-gaming activities being offered at a premium due to the quality of their offering. Brand Name Awareness: MGM is one of the leading hotel and leisure companies as at December 31st 2008 their operations consisted of 17 wholly owned casino resorts and a 50% investment in 4 other casino resorts. This high brand name awareness gives MGM a distinct advantage when competing against other casino brands and helps enable them to draw more customers. Weaknesses Financial Strength: In February 2009 all of the major credit rating agencies – Moodys, Standard Poors and Fitch downgraded MGMs rating on long term debt, there was a further downgrade by Moodys in March 2009. These downgrades will again potentially make it very difficult for MGM to obtain debt finance and may even increase the cost of any future debt financing. Amount of Indebtedness: As at the 31st December 2008, MGM had long term debt totalling approximately US$ 13.5 billion dollars. The amount of debt and the inability of MGM to take on further debt could have a catastrophic impact on its business. It is uncertain that the sources of credit they have available will be sufficient to fund current financial commitments, whilst MGM have received a waiver that they do not have to comply with certain financial covenants this has led to further restrictions and requirements for them to adhere to. Weak Returns: In 2008 MGM have seen a reduction in the majority of their financial ratios compared with its 2007 figures. The figures can be seen in our ratio analysis section of the report and whilst an explanation of the figures have been discussed, the reduced ratios can only cause investors concern and a reduction in confidence in placing investment into MGM. Opportunities Joint Ventures to co-develop resorts and Casinos. Expansion in developing countries. Threats Legal and Regulatory Threat: The gaming industry is highly regulated in which MGM must pay gaming taxes and maintain their licenses to continue their operations. A change in tax laws could adversely affect the profitability of their organization, in addition to tax changes if a regulation is violated in one jurisdiction this could result in disciplinary actions in other jurisdictions. Economic Market: Hotel revenue decreased by 10% in 2008 due to decreased occupancy and lower average room rates. The customers however that do make it to the resorts are spending less, which MGM believe is due to their inability to access near term credit which has led to a shift in spending from discretionary items to more fundamental costs (MGM Annual Report, 2008). A direct impact on MGM is the weak housing and real estate market both generally and in Nevada. 2.1.3 Leisure Tourism industry Five Forces analysis Threat of new entrant Due to the current economy recession, hotel industry suffered a setback in revenue. Hence, this industry is viewed as unattractive. Excessive initial setup investment. Extensive regulation generally concerns the firms responsibility, financial stability and character of the owners. Also, high license maintenance fee and gaming taxes discourages new entrants. New entrants to such markets must then spend heavily on advertising and promotion to gain levels of brand awareness of the existing players. Intensity of rivalry among competitors Hotel, resort and gaming business, especially in Las Vegas and Macau, had became increasingly intense where there is rivalry to build the â€Å"biggest and best† hotel/casino. Between 1996 and 2000, the number of hotel rooms at Las Vegas casinos doubled and due to the current economic conditions, the demand for rooms had dropped significantly and resulted in reductions to average room rates due to competitive pressures. Competition between casino companies involved ever more ambitious differentiation. The new casinos in Las Vegas broke fresh ground in innovative entertainment and design features. Threat of substitute products There had been a growing substitute competition for gaming which included an increasing number of state lotteries and offshore gambling on cruise ships. The installation of slot machines in unorthodox gambling area such as horse tracks. The growth of internet gambling. Bargaining power of buyers In the entertainment industry, buyers (consumer) usually have relatively high bargaining power as there is a practically negligible switching cost. The tendency of buyers to explore different hotel for a different experience. Accessibility of information via internet on hotel packages, consumers are now more informed and prepared for the wide range of available hotels specifically in Las Vegas and Macau. Bargaining power of supplier The main sources of supplier power in the service industry are labour unions. The unions cover approximately half of their total employees (30,000 of 61,000 employees) and had successfully negotiated for increases in wages and benefits of approximately 4% annually via the newly signed 5 year collective bargaining agreement in August 2007. The other supplies to hotel consist of food and beverage, retail merchandise and operating supplies. Due to economies of scale, big buyers like MGM would have an advantage over their suppliers as they can easily switch due to the wide availability of the supplies and its continuous stream of demand. 2.2 RIO TINTO 2.2.1 Background and mission Background Rio Tinto is a leading international mining business headquartered in London. Rio Tinto Group combines Rio Tinto Plc (listed on London Stock Exchange) and Rio Tinto Limited (listed on the Australian Securities Exchange) and operates as a single entity. The group is involved in mining and supply of minerals and metals including aluminium, coal, copper, diamonds, gold, iron ore, uranium and other industrial minerals. It operates in more than 50 countries and employs approximately 106,000 people (Rio Tinto, 2008). The companys main production areas are in Australia and North America however there are significant businesses in South America, Asia, Europe and southern Africa. Rio Tinto concentrates on large scale mining operations that have a long life and are cost effective. The company recorded revenue of US$ 54,264 million in 2008, an increase of 83% over 2007. Annual production records set for iron ore, bauxite and alumina. The business had a record net capital expenditure of US$ 8.5 billion, a 71% rise over 2007 (Rio Tinto, 2008). Mission â€Å"Rio Tinto aimsto maximise the overall return to its shareholders by sustainably finding, mining and processing mineral resources areas of expertise in which we have a clear competitive advantage.A fundamental part ofthis is to deliver value while operating in an ethically and socially responsible manner, and remaining committed to long term sustainable development.† (Rio Tinto, 2009) 2.2.2 SWOT analysis Strength International mining group ranks amongst top five commodities producers. Rio Tinto has extensive line of business (Iron ore, Copper, Energy, Aluminium, Industrial Minerals and Diamond) and each division provides its services to different industries. Company is well diversified in terms of the products and the markets. Geographically companies operations are spread over six continents. Globally number one producer of Aluminium because of recent acquisition of Alcan in October 2007. Alcan was ranked globally among top three producers of Aluminium and Bauxite. Worlds largest Uranium supplier. Weaknesses Majority of Iron ore and coal contracts are sold at annual contract price rather than the spot market. There is a significant deterioration in the pricing environment of these commodities. Production of zinc and silver by the company has been decreasing in recent times. Opportunities BP and Rio Tinto entered into partnership for the formation of a new jointly owned company, Hydrogen Energy, which will develop decarbonised energy projects around the world and lead the path for sustainable future uses of coal. The growing importance of uranium as a resource for future energy needs. Threats In the recent time there is a significant reduction in the commodity prices and the demand of the market especially because of the global economic crisis. Rising concern for environmental issues, health and safety standards across the globe. Especially for the industry to meet standards and quotes agreed in the KYOTO Protocol. 2.2.3 Mining industry Five Forces analysis Threat of new entrant High demand of capital as entry cost makes it tough for new entrant to enter in this field. Very low availability of new mining areas (mines) and risk on capital involved in searching for new mining areas restricts new entry in this field. Requirement of high, sophisticated and costly technology is again an entry barrier for new entrant. High government and environmental regulations. Intensity of rivalry among competitors High demand and optimum supply leads to limited rivalry amongst competitors. Threat of substitute products Being a standardised product (commodities) and basic raw material to the industry or to the end customers, there is no availability of substitute. Prices are fixed at macro level generally by external authorities (government) so the variability in prices of different suppliers is absent. Bargaining power of buyers Strong control on Pricing by government leads to low bargaining power of customers. Unavailability of substitute products shifts the favour towards the supplier from the customers. Customers (Industries) dependency on existing channel of distribution and product is very high; therefore the customers power is again low. Bargaining power of supplier Bargaining power of suppliers supplying technology is high because of the sophisticated technology requirement and reduced availability of specialist suppliers. Skilled labour requirements are high and availability is lower because of less lucrative future prospects that shift the favour towards suppliers. 2.3 TOYOTA 2.3.1 Background and mission Background Toyota Motor, the worlds largest automotive manufacturer, has a powerful aspiration to become ‘Greener. The company makes a hybrid-powered (petrol and electric) sedan – the ‘Prius that is being snapped up in US and European markets. Its petrol-powered cars, pickups, minivans, and SUVs include such models as Camry, Corolla, 4Runner, Land Cruiser, Sienna, the Scion brand, and a full-sized pickup truck, the V-8 Tundra. Toyota also makes forklifts, manufactured housing and offers financial services. Once a dark horse in the global automotive game, Toyota overtook Chrysler and Ford in worldwide sales and surpassed General Motors in 2008. The company gets nearly half of its sales from Asia (Just Auto, 2009). Mission Toyotas management value has developed from the companys origins and has been contemplated in the termsâ€Å"Just in Time Production† and Lean Manufacturing, which it was instrumental in developing (Strategonic, 2009). The Toyota Way has five mechanisms (Liker Jeffrey K., 2003): Perfecting business process. Eliminating wasted time and resources Building quality into workplace systems Building a learning culture for continuous improvement. Finding low-cost but reliable alternatives to expensive new technology 2.3.2 SWOT analysis Strength Toyota has become the lead name in the global market. People have a lot of trust for their name and this is why Toyota is the leader in automobile industry. The important edge over the companys competitors is the ample availability of the spare parts in the markets. Toyota is a financially strong company. This can be demonstrated by the analysis of the financial reports. Toyota vehicles have got a much stronger resale value than any other car in the global markets. This is why people prefer to buy a Toyota. Toyota is proud to have a successful team of competent managers and skilled workers. Extensive training has enabled the employees to perform outstandingly. Toyota is the only company having the most sophisticated network of dealerships where customers are treated by professional dealers. Weaknesses Being big has its own problems. The World market for cars is in a condition of oversupply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan therefore it is exposed to fluctuating economic and political conditions in those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging India and Chinese markets. Movements in exchange rates could see the already narrow margins in the car market being reduced. There are some weaknesses in the dealership network. The dealers sometimes tend to deviate from the recommended course of action and principles of Toyota. This can result in customer complaints. A lot of effort is put into the sales forecasting because of the changing political and economic scenarios. For these reasons inventory has to be kept low. Opportunities Export is a major opportunity for Toyota Motors. Toyota can do better by focusing on segments much more than what is presently being done. Toyota is to target the urban youth market. The company has launched its Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at the rear. The narrow segment is notorious for it narrows margins and difficulties for branding. Switching diesel market toward petrol and CNG market. Threats Even though Toyota enjoys the position of being the no.1 automobile company, still it faces some threat from competitors especially Honda. Honda has adopted aggressive strategies for capturing the market. In 2005 the recall of 80,000 SUVs negatively impacted on the brand of Toyota and posed a threat to its future reliability and sales. Even though Toyota keeps a careful eye on the changing trends, still the changing customer needs and trends can prove to be a threat. 2.3.3 Automobile industry Five Forces analysis Threat of new entrant Slow lethargic state of economy resulting in low per capita income leads to declined consumption. Hence, the productivity decreased at manufacturing level. Automobile sector is already over saturated market for the provided demand base. Initial cost of capital is very large. Industry requires highly specialised technology or plants and equipments. Constant RD: Patent and proprietary of auto designs restrict the entry into an industry. Intensity of rivalry among competitors Due to high cost of competition automobile industry earns low returns. Competition has intensified rivalry by offering rebates, long-term warranties and preferred financing to lure the customers which have put pressure on the profit margins. Foreign Trade increased the degree of rivalry. Export becomes essential for expansion and competition. High exit barrier: Entrants are reluctant to commit to acquiring specialised assets that cannot be sold or converted into other uses if the venture fails. Threat of substitute products Consumer seek substitute like bus, train or aeroplane to reach their destination. Peoples likeliness to seek alternative transportation depends upon the cost of operating a vehicle. Higher the operating cost less likely people will buy the automobile. Consumers decision to buy vehicles largely depends upon the price of petrol. Emergence of very small and economical car segment in automobile sector. Bargaining power of buyers Consumers are highly price sensitive and generally dont hold much buying power as they never do bulk purchase of cars. Wider range of product, negligible switching cost, readily available. More shrewd customers: Customers are very particular in terms of brand selection, technology and price of product. Dealers are cherishing the freedom of selling more than one brand at any time. Bargaining power of supplier Due to the fragmented automobile industry, most of the suppliers depend on just one or two automakers to buy majority of the products. Switching the supplier is devastating to the business of previous supplier. Long term supplier relationship in the automobile sector, which is considered to be an oligopoly, makes the relationship obligatory for suppliers and hence the supplier has lower grip on the prices Suppliers provide secondary material and have little responsibility over the design and assembly of automakers. Therefore, essentially little power is given to suppliers. 3 Financial Analysis The report describes a financial statement analysis between companies of our choice with their closest competitor which is followed by a 3 year trend analysis to provide an indication of the consistency of the companys performance. Assessment of performance will focus on 4 main areas namely profitability, liquidity, financing and investment. In order to provide comparability, relevant financial figures are converted to US dollar as per exchange rate stated in respective annual report. 3.1 MGM GRAND 3.1.1 Profitability Gross Operating Margin According to Walton and Aerts (2009) gross operating margin is the preferred ratio to measure operation efficiency. In the hotel industry, cost of sales revolve around payroll related expenses, gaming related taxes, room, convention, retails and other expenses. In year 2008, MGMs gross operating profit had dropped from 48% to 44%, due to drop in room occupancy by 10% affecting sales with no reduction in Cost of Sales in comparison to 2007. Stagnant Cost of Sales could be explained as there are several fixed expenses like payroll, electricity, food, etc would still be maintained regardless of room occupancy and further to that, in August 2007, there are total of 21,000 MGM employees entered into a 5 year agreement which provides approximately 4% annual increment in wages and benefits. This had contributed to the increase of the payroll expenses in 2008. As for Las Vegas Sands, through the opening of new hotels like Venetian Macao, The Palazzo and Four Seasons in 2008 it had increased its sales, however there were a substantial amount of additional payroll, advertising and promotion as part of opening activities related expenses and the launching of new passenger ferry service operations in Macao where it had an additional US$100 million in operating expenses. This had affected its gross operating profit margin to drop from 40% to 36% in 2008. In terms of gross operating profit margin, MGM had been observed as a better company in controlling cost as its margin had been higher than competitor Las Vegas Sands by 7% on annual basis. Net Profit Margin According to Walton and Aerts (2009), net profit margin explains that the ratio shows how successful the management is in creating profit from a given quantity of sales. MGM has steadily increased its net profit margin except in 2008, this compares favourably to its competitor Las Vegas Sands who has shown a trend of reducing profits since 2006. The size of the loss however in 2008 was far greater for MGM. Whilst the revenues for MGM have remained fairly constant, the reduction in profit was largely down to certain areas of its operating expenses in particular US$1.2 billion impairment charge related to goodwill and an indefinite lived intangible asset recognised in the Mandalay acquisition in 2005. Having reviewed the accounts, we would also address an area of caution in the MGM profit margin in 2007 as there was a one off recognition of a US$1.03 billion gain in relation to the City Centre Project. Due to the fluctuation in MGM net profit margin due to several onetime adjustments in the years 2007 and 2008 which makes it insufficient for comparison against Las Vegas Sands, hence only figures from 2006 would be taken for assessment where Las Vegas Sands net profit margin seems more favourable than MGM. Return on capital employed (ROCE) Return on capital employed (ROCE) is a performance ratio that demonstrates how much the company has earned on invested long-term funds (Walton and Aerts, 2009). In 2008, MGM board of directors had announced 20 million share repurchase which caused the total shareholder equity to drop by 34%. With this drop, we would be expecting an increase in ROCE ratio from 0.17 to 0.19 if income before tax and long debt remains the same in 2008. However due to the loss in 2008, the actual ROCE ratio indicates a negative return of 0.79% in relation to equity. On the other hand, Las Vegas Sands ROCE ratio in 2008 had dropped by 2% due to the increased of total asset by 33% due to the distribution of common share and preference stock amounting US$ 2.56 billion, which increased the stockholder equity by 50% and additional long term debts amounting US$ 2.84 billion. Despite the fact that Las Vegas Sands ROCE ratio had dropped in 2008, Las Vegas Sands still stand a better position than MGM as there are still positive returns. Return on shareholders equity (ROECE) MGM over the three years have had a very volatile ROECE which saw progression from 2006 to 2007 but in 2008 produced a negative 5.22% return in relation to Shareholder Equity. The components that make up the ROECE are very similar to the ROCE except that the ROECE is after interest and tax but before payments of dividends. In respect of MGM dividends are irrelevant as they have not paid a dividend in the last three years. The negative return in 2008 was solely down to their losses of US$670 million from their continuing operations before income tax. This loss was further inflated by US$186 million provision for income tax expense even though the company made a loss. The provision was for a non deductable good

Music - Bonos Path Towards Spiritual Enlightenment Essay -- Explorato

Bono's Path Towards Spiritual Enlightenment While most celebrities keep their religious beliefs private, the music of the Irish rock group U2, with lyrics written by lead singer Bono, contains many religious references and ideas. A closer analysis of the song lyrics shows an evolution of the religious ideas contained within. The changing and development of these ideas corresponds to many psychological and sociological theories of faith evolution, including those of Alfred Adler and James Fowler. Adlerian theory posits that "Our ideas about God are important indicators of how we view the world. According to Adler these ideas have changed over time, as our vision of the world—and our place in it—has changed" (Nielson). There are two kinds of changes that may occur: those that advance the faith, and those that incite doubt or stagnation, as reported by Paul Fritz. Fritz, a minister, incorporated the ideas of sociologist Jean Merton into his theory of faith evolution. Fowler, in Stages of Faith: The Psychology of Hum an Development and the Quest for Meaning, states that faith evolves as individuals move through life, changing at each stage the way they make sense of existence. Commenting on Fowler's theory, John Testerman writes, "The stages of faith can be thought of as the different lenses through which we view the world as we journey through life." A careful study of Bono's lyrics can show what kind of "spiritual glasses" he wears at that stage of his life, and how his outlook on the world shapes the portrayal of his beliefs. While the evolution of faith and spiritual beliefs may be divided into stages, a person may be in between stages at any time, exhibiting the characteristics of more than one stage. In Fritz's model, a b... ... Cambridge Bible. Cambridge: Cambridge University Press, 1997. Fowler, James W. Stages of Faith: the Psychology of Human Development and the Quest for Meaning. Harper: San Francisco, 1995. Fritz, Paul. Home page. 10 Mar, 2002. "8 Stages of Faith." . Nielsen, Michael. Home page. 3 Nov. 2003. Psychology of Religion Pages. . "The Stages of Faith." The Journal of Religion and Society. Home page. 1 Nov. 2002. . 2 Nov. 2002. Testerman, John. Home page. Mar. 1995. The Stages of Faith. . U2. Achtung, Baby. Island, 1991. U2. All That You Can't Leave Behind. Island, 2000. U2. The Joshua Tree. Island, 1987. U2. October. Island, 1982. U2. POP. Island, 1997. U2. War. Island, 1980.

Homer †“The Odyssey Essay

It is surprising that Odysseus, ‘a master of stratagems,’ can also be reckless and impulsive? Throughout the Epic, The Odyssey, Odysseus is determined to be a survivor and return to Ithaca with a status appropriate to his own sense of excellence. Odysseus is not going to make any suicidal heroic stands on the battle field and refuses to compromise a very narrow sense of integrity. On the contrary, he is ready to use any stratagem to get home. Odysseus lies, accepts insults, disguises himself, represses his emotions and even conceals his true identity in order to get through his journey. Odysseus is impulsive and reckless. The Epic, is only the story it is due to Odysseus being a character of impulse and recklessness. He creates opportunities for events and challenges and also the opportunity to return home as a heroic icon. Odysseus was surely a ‘master of stratagems.’ Cunning, strong, skillful, courageous and patient. The King of Ithaca, leader of his people. He was both these things before he departed for Troy. Although he was a great king, admirable, and resourceful, at times Odysseus was also reckless and often acted impulsively. The roles of being a hero and a leader were always implied. In a search for glory and glamour Odysseus sought out danger, mocked death and ways prepared to accept an honorable death. He also risked the lives of his men. This was most evident in the Cyclopes saga, where Odysseus persisted in entering and remaining in the cave despite the pleas of his men to take what they could before the giant returned. He chose to be too greedy, because of his actions six of his men died. Odysseus could not resist the temptation of boasting to Polyohemus who had blinded the Cyclops, again despite the pleas of his men. Not knowing what he was playing around with, not just his life but the lives of his crew as any one of those boulders could have struck the vessels and destroyed the lot of them. Later, Eurylochus was to refer to this episode with the Cyclops when he virtually attempted suicide by resisting Odysseus plan to take the whole crew back to Circe’s palace. â€Å"Why are you looking for trouble – going to Circe’s palace, where she will turn you into pigs? We have had all this before, with the Cyclops, when our friends found their way into his fold with this foolhardy Odysseus. It was the man’s reckless folly that cost them their lives†(Homer 1991, book 10, line 430) There was a lack of trust between Odysseus and his crew at times. Odysseus’ lack of leadership and recklessness was clearly pointed out on the island of thrinacle. The crew broke their oath and disobeyed Odysseus’ commands about eating the cattle of Hyperion. This incident underlined their weaknesses and Odysseus’ iron will and self control-but also showed the limitations of his leadership. On the other hand, there is evidence of care and concern by Odysseus for his crew. He was a man of stratagems but at times acted purely on impulse which resulted in consequences that only made himself look reckless. A man who clearly had the ability to lead by example, as a king and military leader, he had the inspiration, confidence and loyalty. This is seen throughout the text many times. On his journey, though, circumstances were somewhat different, the individualism and egotism of the hero as well as his failure to communicate effectively on several occasions created distrust. A man of tremendous courage, although he made those impulsive decisions he did care for his crew. Without Odysseus being this character there would be no story, and The Epic probably would not exist today. This man was chosen to be a king and a leader of a crew for a reason. He may have gotten a little caught up in the glamour and glory at times, however he was appointed leader and king by the gods above. If the crew had been just as impulsive as their leader, and followed his commands then they to would have returned to Ithaca with their leader.

The military tactics used by both the USA and Vietcong forces in the 1960s.

The military tactics used by both the USA and Vietcong forces in the 1960s. The tactics used by the Vietcong and US military forces were very different and changed during the course of the war. At the beginning of the war the Vietcong (NLF) army was aggressive whilst the US army was defensive. The Gulf of Tonkin incident became America's excuse to become aggressive towards the Vietcong.In 1965 General W. Westmoreland developed the strategy of "search and destroy". Its objective was to find and kill any members of the NLF. US soldiers found this difficult however as the Vietcong always dressed in civilian clothing, and killing peasants by mistake was not uncommon; "if he's dead and Vietnamese, he's a V.C." was the view of the troops carrying out the search and destroy missions.It was clear from the outset of war that the US had far more technologically advanced weapons than the Vietcong, which they used throughout the conflict. B-52 bombers altogether dropped 8,000,000 tons of bombs between 1965 and 1973which equated to 300 tons of bombs per person living in Vietnam.The alleged 1966 martyrdom of Vietcong soldier Ngu...This was over three times the amount dropped during the whole of World War Two. Aside from bombs the US also dropped a considerable amount of napalm, a mixture of petrol, phosphorous and a chemical thickener which attaches itself to the skin causing horrific "fifth-degree" burns to the victim, which could quite often be an unlucky US soldier. Agent Orange, a complex biological weapon was dropped over a lot of the thick vegetation of Vietnam, causing all plant life to die, potentially to expose any hiding Vietcong.The US pioneered the development of anti-personnel bombs, smaller than those dropped from the B-52s, such as the "pineapple", which shot shards and needles of metal in all directions. With the many different developments of anti-personnel bombs it was the US's...

Ford Fiesta Essays

Ford Fiesta Essays Ford Fiesta Essay Ford Fiesta Essay The storyline for the Ford Fiesta is a woman who looks young, about twenty to twenty five year old and a around the same aged boyfriend, driving through a town. The couple look like they are on holiday because it is sunny and they are driving alongside a beach. They get stuck in traffic. The woman then quickly drives out of the traffic line and drives down through some narrow streets. At this point the camera gets good close ups of the car. During the time that she is narrating what seems to be a diary entry. The camera then shows the woman lying down on her bed writing in the diary. The last clip of the advert shows her boyfriend looking puffed out over the drive. During this hot of her boyfriend, she is says Oh yeah and Jack purposed, Jack who is her boyfriend. She says it in a tone which makes it seem not very important. She is only talking about the car. Jazzy music is being played in the background while the couple are driving to get the viewer in the holiday mood as well as making the car sound fun and cheerful. The main aspect of the car which is being focused on is that the car is small so it can go down narrowest of roads and can easily handle a busy city street.  The message about the car is that the car is more important then marriage which links in with the cars slogan which is It makes your day. I think this links in with this storyline because the car is small and versatile it got out of the traffic and made a few shortcuts through some narrow lanes. Therefore at the result of that they are engaged. : The type of people I feel will buy this car is someone who drives around the town a lot, such as a business man or someone in the delivery trade. I think single or married people who are between twenty and thirty years old and who earn average wage will buy this car.  I feel that all three adverts are all effective in there own way. The Ford Fusion is a good example of very effective photography and use of colour. The Ford Mondeo shows that the car is very safe and reliable. It also has a frightening theme to it. The Ford Fiesta is a good example of very effective music, comedy and narration. I find all three adverts very clever and original. The best method to sell a car I fell is by TV because you can use different mediums such as music, comedy, sound effects, and a disturbing atmosphere. That is why I feel the best advert is the Ford Fiesta because I like comedy in an advert. That is how I would remember it.  I think the Ford Fiesta did in a way persuade me to buy the car because how the way the advertisers have filmed the car. Advertising has an important effect on our lives. If we see something on TV, radio or the newspaper and we like either the person selling it or the way it is set up, we will probably that product.

Hyperinflation Research Paper Example | Topics and Well Written Essays - 750 words

Hyperinflation - Research Paper Example (Swanson, 2004) Examples of the Hyperinflation Phenomenon If this definition of hyperinflation by economists is anything to go by, then any commodity which has a price of USD1 at the starting of the year would cost USD130 at the setting in of the following year. It (hyperinflation) was to a big extent a common occurrence in the 20th Century. This was mostly after the Great War and the Second World War. The main hyperinflation that has drawn the attention of most scholars for the purposes of studying is that which occurred in Germany in years 1922-1923. In November year 1923, the price index, using August 1922 as the base period, was 1.02*1010. This translated would result to an average of 322% inflation per month. This hyperinflation persisted for about 16 months. Besides the case of Germany, there was an even more serious case of hyperinflation subsequent to the WWII. Precisely, it occurred from August year 1945 through July 1946 and the general price level escalated at an alarming rate of approximately 19,000% per month. Causes of Hyperinflation In spite the fact that hyperinflation can be blamed on the shocks that had just happened just before these two aforementioned countries, no single shock can explain it all in spite of how severe it is. One shock like that of WWII cannot grant a sustainable answer as to why hyperinflation would continuously grow rapidly for a while. In other words the hyperinflationary phenomena witnessed in Hungary and Germany could not have been caused by the world wars. Causes of hyperinflation are explained by one major factor, a rapid increase in the paper money supply. This is usually common after the fiscal and monetary policies’ implementing authorities of a country make regular issuance of huge quantities of money so as to pay a big spending that the government may have incurred. Due to the issuance of currencies by these authorities it leads to a kind of inflation of taxation where government makes gains at the expense of those people who hold money while the value of this money decreases. Therefore, hyperinflation signifies very big schemes of taxation. Explaining this phenomenon of the economy using the economies of Hungary and Germany the findings are as stated. When Hungary was facing hyperinflation, the money supply that was done made a money supply rise of 1.19*1025. On the other hand, in the German case the amount of money in circulation rose by 7.32*109. While compared with the price levels’ rise earlier, the figures of money growth supply were smaller. The difference in the money supply growth and price levels rise can be explained to be due to the concept known as real money quantity. This real money quantity concept seeks to explain what the situation where persons exhibit the behavior of holding money as prices rise in rapid manners shows inflation. The real money quantity, which is also known as the purchasing power of money is that ratio between the money held and the level o f prices. Making an assumption that a given family consumes a given bundle of commodities, the real money value is that bundle which the money that they hold can purchase. In the time periods when inflation is at low levels, then that family will have a retention of the real value of their money that they hold- which is very convenient. On the contrary, if there is a high inflation, a family will be maintaining a

Examine the main determinants of Foreign Direct Investment location Essay

Examine the main determinants of Foreign Direct Investment location and strategies employed by Transnational Corporations to maximise the net advantages of the - Essay Example Globalisation is also considered as a primary contributor to the methods used to develop foreign direct investments. In addition, the continuous change in technology also pushed for firms penetrating other markets. For most trans-national corporations (TNCs), the schemes associated with maximising foreign direct investment (FDI) are intricate. These processes are developed through time considering the environmental changes and other circumstantial elements. Logically, the methods in which FDI is maximised by TNCs can be attributed to their nature and existence. Holistically, focusing on TNCs in discussing FDI requires the profound understanding of the two concepts. It is imperative to establish relationships and determine useful trends regarding the subjects. In this process, the extraction of empirical evidence is a necessity and has to be manifested with high level of credibility. Moreover, in-depth analysis will be provided to ensure that the desired outcomes will be realised. The most qualifying description of a firm to consider as a trans-national is its operations. Accordingly, corporations that function in two or more countries are defined as TNCs. Moreover, the general view of TNC is divided into three subgroups. First, horizontally integrated TNCs administer production in different locations to manufacture similar products. Second, vertically integrated TNCs use other countries as inputs for their production. Finally, diversified TNCs operate in different firms that manage production in a manner neither explained by the previous two sub-groups. McLean and McMillan (2003) stated that TNCs became popular in the 1890s. Usually, TNCs are based in highly industrialised countries and expand in different economies. It is being contended that TNCs are influential in the policy making of host countries. This is because TNCs have the capacity to boost an economy and move capital from locations to the other. In addition, some firms control