Finance assignment Example | Topics and Well Written Essays - 2500 words

Finance - Assignment Example The expected return figures obtained for these four companies are justified as they reflect in part the general trend observed in the various sectors. Watson and Head (2007) suggests that Biotech companies are expected to incur high cost of initial investment in research but with time they record high returns owing to the sale of their innovative products. The findings concur with those of Brown et al, (2012) who further proposes that the high returns for pharmaceutical companies increase exponentially as the new product’s market reach increases. On the other hand, Construction companies can be termed as safe investments as they have less risk, since most of the capital for such companies is held up in assets (Boritz, 2006) and (Megginson, 1996). This sector has high returns on investment owing to the booming real estate industry in Australia. The banking sector is dependent on the country’s economy and income levels of the people as discussed by Mishkin and Eakins (200 6). They state that since Australia is a developed country, over 90% of the people above 18 years of age operate bank accounts. With more people saving money with the banks, there is enough money to offer loans to businesses and individual thus making it a profitable sector. In contrast to this, the travel and leisure industry is highly affected with seasonal tourism experienced in Australia as reported in â€Å"An Introduction to Technical Analysis† (1999). Although most people may have disposable income to use in leisure, they prefer international destinations during seasons such as winter when the temperatures are very low. In addition, the competition in the sector, makes it a less profitable sector especially for small and medium companies. There are three major methodological setbacks associated with the Gordon’s growth model. Firstly, it is assumed that the growth rate is constant which might not necessarily be the case. Secondly, for stocks of growing

Kmart and Sears Merger Essay Example for Free

Kmart and Sears Merger Essay Kmart had been established in 1962 by its parent company S. S. Kresge as a discount department store offering the most variety of goods at the lowest prices. Un- like Sears, the company chose not to locate in large shopping malls but to establish its discount stores in highly visible corner locations. During the 1960s, ’70s, and ’80s, Kmart prospered. Retail formats in operation Kmart – is a chain of discount stores that are usually free standing or located in a strip malls. Big Kmart – signals a different kind of Kmart. These stores are bigger, brighter and offer big savings, big value, big selection and big convenience. Big Kmart stores are designed to increase store sales by increasing the frequency of customer visits. The format focuses on three distinct businesses – home fashions, children’s apparel and consumables – and features an expanded food area known as the â€Å"Pantry†. Kmart Super Center is a chain of hypermarkets that carry everything a regular Kmart carries, but also have a full grocery section with meat and poultry, baked goods, a delicatessen, garden produce, and fresh seafood. Most Kmart Super Centers operate 24-hours a day and offer special services. In 1999 Kmart began offering a dial-up internet service called BlueLight, which was eventually spun off as an independent company. BlueLight was initially free and supported by banner ads. BlueLight dropped the free service in February 2001 and was reacquired by Kmart in July 2001. In 2002 United Online, which also owns NetZero and Juno, bought the BlueLight service after Kmart filed for bankruptcy. In August 2006, Bluelight dropped the banners. As of August 2006, the service costs $14. 95 a month and has around 165,000 subscribers. Promotional Pricing model Promotional pricing had always been the forte at Kmart. Offering a lower price temporarily in order to enhance the effectiveness of product sales efforts to cost sensitive consumer. In 1990, Wal-Mart overtook Kmart in sales, they tried to wean the company away from this strategy. Kmart cut process on 38,000 items and promoted the with expensive television commercials, which failed to lure younger shoppers. Then Wal-Mart countered by using its greater efficiency and economies of scale to fight back on pricing. The outcome was 1% drop in Kmart’s sales in December and 8% increase in those of Wal-Mart. Financial Analysis Prior to 2001, company was making continues losses, in order to understand scenario; we first analyze the period from 1995 to 1998. Here, Kmart started making some profit. And the second part from the year 1998 to 2002, where they actually went bankrupts. In 1995, the firm suffered a huge loss of $571 million. This was because of the non-performance of 127 international stores. It was in the same year that COGS as a percentage of sales were too high as 78%. Operating expenses as a percentage was in proportion to that of the industry. However due to the low performance of the international stores, stores outside t United States, Kmart had a bad financial year in 1995. It was the same year that the management decided to do away with the non preforming stores and thereby closed all its international stores and started four new stores in the home market. The list of stores by Kmart during the period can be seen as under: In 1999, COGS was 78% of sales as compared to 72 % of sales in the year 1998. Also, COGS increased drastically compared to increase in sales. Sales in 1999 increased by 6. 26%, however COGS increased by 12. 23%. Thus, there was a major decrease in the grow profit from 27% of sales to 21% of sales. This was the beginning of the downfall of Kmart. From here on, COGS kept on increasing. In 2002 COG reached 85%, thus gross margin reduced from 21% in 1999 to 14% in 2002. During the same time, Kmart’s operational efficiency too decreased and it increased from 18% in the year 1999 to 21% in 2002. Thus, increase in the COGS, lowering of the gross margin and increase in the operational costs, all contributes to the fall of Kmart. Competitors within the industry Its primary competitors were Wal-Mart, Sears, Target, Kohl’s, and J.  C. Penney, with secondary competitors in certain categories. Wal-Mart Wal-Mart followed the lower cost competitive strategy of cost leadership. According to our textbook cost leadership aims at the broad mass market and requires efficient scale facilities, cost reductions, cost and overhead control; avoids marginal customers, cost minimization in RD, service, sales force and advertising. Therefore Wal-Mart could get following benefits: this strategy provided defense against competitors, provides a barrier to entry for new competitors and generate increased market share. Wal-Mart managed to maintain â€Å"everyday low prices† and achieve highest sales in the industry. It should be noted that Wal-Mart’s 2005 revenues exceeded that of the next ? ve U. S. retailers combined: these are Home Depot, Kroger, Sears Holding Company (which includes Sears and Kmart), Costco, and Target. Wal-Mart’s technological edge is in its logistics, distribution, and inventory control helped it reduce cost and offer customers product cheaper than its competitors. Moreover it could benefit from economies of scale. Wal-Mart also used differentiation focus strategy by creating a product and service unique to customers, according to ReferenceForBusiness. com. It could be argued that this feature is not real and just in the mind of the customer; customers believed they were being offered something special. Wal-Mart achieved this strategy by offering unique warranties and brand images. Wal-Mart customers believed they were being provided with something that they cannot find at any of the stores competitors. Wall-mart’s value chain worked in following way: Vendors, Wal-Marts suppliers delivered products to Wal-Marts distribution center or directly to one of the stores. Wal-Mart was able to bargain for the lowest possible price because of the high volume of sales. Therefore, Wal-Mart could pass this savings to its customers. After that once the products were delivered to the distribution center, they were sorted and placed on trucks to be delivered to stores. This allows for less than 48 hour deliveries to stores and increased efficiency on trucks with backhauls. After products were delivered to the stores, they were placed on the appropriate shelf location for customers to view. Store locations were located throughout the U. S. in rural and urban towns. Moreover customers could purchase products at very low prices and have the ability to return any item. These were the key elements of Wal-Mart value chain. Overall Wal-Mart’s competitive advantage over its competitors was efficient supply chain management and lower prices achieved through maintaining low costs. Sears Sears, with the second-highest annual sales, had a strong position in hard goods, such as home appliances and tools. Around 40% of all major home appliance sales continued to be controlled by Sears. Nevertheless, Sears was struggling with slumping sales as customers turned from Sears mall stores to stand-alone, big-box retailers, such as Lowe’s and Home Depot, to buy their hard goods. Sears main competitive disadvantage was its store locations. Sears has been too slow to expand away from mall locations, industry analysts said. As Sears Chairman Alan Lacy said: â€Å"Our service and products are as good as our competitors but theyre not where our customers are. † Target Target was third in sales but second in profits, behind Wal-Mart. It used differentiation strategy and tried to offer customers quality products and had distinguished itself as a merchandiser of stylish upscale products. Targets mission statement focused on great guest service, clean stores and speedy checkouts. Along with Wal-Mart, Target had flourished to such an extent that Dayton-Hudson, its parent company, had changed its corporate name to Target. Its main focus was statically higher income consumers and early internet adopters. Target’s main competitive advantage was good customer service and quality product. This is where it creates value for its customers. Kohl’s, and J. C. Penney Both Kohl’s and J. C. Penney emphasized on soft goods, such as clothing and related items. They both chose differentiation strategy. Kohl’s concentrated on selling both private and exclusive brands which were â€Å"only at Kohl’s† as well as national brands like Nike, Adidas, Lee, Levi’s, Jockey, Van Heusen. Private and exclusive brands contributed a lot more to the gross margin as Kohl’s has significant control over the production, manufacturing and marketing expense of these brands. Keeping this in mind, Kohl’s has shifted its merchandise gradually towards this section of merchandise. In 2004, Kohl’s carried 25% in Private and Exclusive Brands, and this figure rose to 50% in 2011. Moreover it tried to provide â€Å"convenience† promise to customers an easy and satisfying shopping experience. Kohl’s organized departments by lifestyle, added signage and graphics depicting key trends, and presented merchandise to suggest how customers can create new looks. They also continued to improve inventory management to deliver more new product more often, to differentiate line mixes according to geographic preferences, and to assure a â€Å"shelf never empty† of products the consumer desires. J. C Penney targeted moderate income customs, mainly women who as company executive said that were with, â€Å"too little time, too little money, and two little kids. † Kmart versus Competitors Kmart’s main problem was that it did not have clearly defined competitive strategy. In 2001, Kmart proclaimed a new retailing strategy that included less advertising, fewer advertised specials, and lower daily prices on many items. In short, Kmart tried to challenge Wal-Mart as the everyday low-price leader. Wal-Mart responded to the Kmart challenge with still lower prices. These new initiatives further weakened the ? nancial position of Kmart Corporation. The Kmart assault on the Wal-Mart image as the low-price leader failed, and Kmart was left with huge volumes of unsold merchandise (Turner 2003, 71–72). Kmart forgot to take into consideration that its capacity to lower prices was limited because of its poor supply chain management, often popular products would be out of stock, in some cases stored in trailors outside of the stores. Kmart was not successful in using differentiation competitive strategy either. While Wal-Mart reigned supreme as the low cost leader, Target was perceived as being a â€Å"higher quality† retailer. There was basically nothing left for Kmart. In attempt to pursue differentiation strategy Kmart updated and enlarged the stores, added name brands, however this was not successful either, acquisitions all performed poorly posting minimal net income or losses and distracted management from core business. Kmart’s main competitive disadvantages were problems in value proposition, poor supply chain/inventory management and poor customer service. It needed to choose competitive strategy suitable for it and concentrate on it.

Timeline of Wars and Reasons for Wars :: History Essays

Timeline of wars/Reasons for Wars Trojan War c. 1200 BC lasted for approx. 9 years Greeks vs. people of Troy Trojan prince Paris abducted Helen, wife of Menelaus of Sparta. The Spartans refused to return Helen to Sparta so Menelaus persuaded his brother Agamemnon to lead an army against Troy. They fought for nine years but never were able to defeat he main city. The Greeks then built a large wooden horse in which warriors were hidden inside. The Greeks appeared to leave and the horse was left at the front gates of the city. The Trojans brought the horse inside the gates and the other Greeks returned at night. The people hidden inside the horse opened the gates for these Greeks and they destroyed Troy. This war could also have another motive as to who controlled trade through the Dardanelles. Punic Wars 264-146 BC Carthaginians vs. Romans The Carthaginians and Romans fought in three different wars over the course of 118 years. Romans fought the Carthaginians to ruin their hold on a chain of islands that would let them control the Western Mediterranean. The Romans wanted to have control. They then fought over land in Italy, particularly Sicily. In the third conflict, Carthaginians tried to save their city and land from being taken over completely by Romans. In these wars, they mainly fought over trade routes in the Mediterranean. Each wanted power and more territorial possession. Crusades (11th Century-13th Century) in the Holy Land The emperor of the Byzantine Emperor was upset with Turks encroaching on his empire. He went to the Pope Urban II and complained. He made up atrocities about the Turks. In 1096, The Pope Urban II promoted the Crusade to reclaim the Holy Land from the barbaric Turks. These crusades lasted till the 13th century. In the process, Jews were persecuted and lots of looting took place. Many countries took interest in the Crusades because they were ready for travel and adventure. They wanted to expand trade with the Middle and Far East and so the Crusades gave them a chance to open up trade routes with those countries. They used Christianity to justify the Crusades. In reality, they wanted to expand trade and gain more territorial land. Chinese History Often countries or leaders try to put too many restrictions on their subjects or territories and then the people rebel.

Attitude :: essays papers

Attitude 20th century writers dealt with many issues and themes throughout their writing. The authors that I have chosen to look at are Updike, Beatti, Rothke and Plath. These authors and their works will each be evaluated by how they deal with the subjects love, death, loss and passing of time. The short story â€Å" Separating â€Å" by John Updike deals with the subject of love and I also believe it deals with the themes â€Å" quest for identity† and â€Å" alienation and nausea â€Å". The story talks about how two parents are going through the process of telling their children that they are going to separate. This is important to them because they do love their children very much; they want to make the timing perfect so it is easier on the children. The father and mother seemed as though they needed to find out who they really were without their children. They did all things for the kids. They said that they loved one another but yet they didn’t make each other happy. I think that they just weren’t sure what made them â€Å"happy†. â€Å"Weekend â€Å" a short story by Ann Beattie deals with the subject of â€Å" loss of time â€Å" and the same theme that Updikes story dealt with â€Å" quest for identity â€Å" .I chose the subject of time because at first they loved one another and had a good relationship and then time passed and they ended up in such a weird place in their relationship. George had control over Lenore in the way that she never knows that she can leave him and be okay. She stays with him because she does care for him but also because she has a place to put her children and herself to sleep. â€Å"Wish for a Young Wife â€Å" a poem by Theodore Rothke is one that goes into the subject of loss or the idea of loss. This is a man who is telling his wife that he hopes that even while he grows old he wishes that she were beautiful and young for eternity. H e wishes her to never endure grief or hate; these are the very things that make one old. He could be very much in love with his wife and by wishing this for her, so she never looses her beauty.

Ethical and Psychological Egoism Essay

At first glance the theories of ethical egoism and psychological egoism may seem to be very similar, but in fact they differ greatly with respect to their status as making prescriptive or descriptive claims. Ethical egoism is a consequentialist ethical theory that argues each individual should seek to do what is solely in his or her self-interest, and in this fashion it makes a prescriptive claim. Moseley (2006) describes it in this way: â€Å"it is always moral to promote one’s own good, and it is never moral not to promote it. † Similarly, Rand (1964) defines it with respect to selfishness: â€Å"The attack on ‘selfishness’ is an attack on man’s self-esteem; to surrender one is to surrender the other† (p. 7). Therefore, for example, when facing the moral question of whether or not to buy Fairtrade coffee, ethical egoism dictates that the individual should not necessarily think about the employees who pick the beans in Columbia, but should instead consider whether or not buying Fairtrade will give that individual a good image, improve his or her own context, etc. In its strong version, ethical egoism asserts that it is always morally correct to seek one’s own good and never moral to not seek the same, whereas the weak version argues for the former, but not the latter. In this respect, according to strong ethical egoism, I should buy Fairtrade coffee only because of how it benefits me and the thought of benefit for any other person should not even be a consideration. The weak theory, however, still insists I buy the coffee because it benefits me, but it will not necessary condemn me if I also consider the benefit my purchase may bring to Columbian workers for their own sakes. Psychological egoism, in contrast to ethical egoism, is a purely descriptive theory in that it attempts to describe the way in which humans function: it claims the â€Å"fact† that every individual’s actions are driven solely by self-interested ends. However, in this descriptive theory there lies a problematic fallacy. Once one accepts the premise of psychological egoism, namely that everything an individual does is out of concern for self-interest, it is impossible to offer any counter-examples to the theory. For example, if I am a captain of a ship and have decided my crew is planning a mutiny against me, every action that the crew does, whether hostile or simply unimportant, will be interpreted by me as supporting my mutiny hypothesis. In other words, the theory of psychological egoism is simply non-falsifiable. A further difference between ethical egoism and psychological egoism is the doctrine of motivation that undergirds each. Because psychological egoism is merely a descriptive theory, it draws its motivation from nature, or simply â€Å"the way things are†. In this respect, a philosopher like Hobbes (1651) can argue for his contract theory of the state in order to thwart the natural inclinations of humanity to kill one another. His starting assumption is that the state of nature serves as the foundation or motivation for psychological egoism. On the other hand, ethical egoism as a prescriptive theory derives its motivation from the desires of the individual to maximize his or her own self-interests. Self-interest does not mean selfishness, per se, insofar as selfishness pushes for the maximization of individual gains without consideration of others. Rather self-interest may have a communal aspect which allows for achievement of personal goods that, though directed toward the benefit of the individual, may in fact correspond with achievement of goods for others (see footnote 1). Hobbes, T. (1651) Leviathan. Forgotten Books ebook. Retrieved from http://www. forgottenbooks. org Moseley, A/ (2006) Egoism. The Internet Encyclopedia of Philosophy. Retrieved from http://www. cep. utm. edu/e/egoism. htm Rand, A. (1964) The Virtue of Selfishness. New York: Signet, 1970

Free Essays on What Caused Wilson Change In Opinion To Enter WW1

There were many reasons for the United States involvement in the War, but Germany’s great desire for more power and global influence is the most evident. â€Å"Militarism was another cause of the war, it was similar to the arms race of today, because Britain had a great navy, Germany wanted a great navy too. Germany and France competed for larger armies. The more one nation built up its army and navy, the more other nations felt they had to do the same.† At the start of the war, President Wilson declared neutrality of the United States and most Americans opposed US involvement in the European war. Not only was the US culturally similar to Great Britain and France, but these two countries where our major trade partners. The US understood that if the Allies lost the war, it would have a tremendous effect on our economy. This is why America began to see Germany as the â€Å"enemy†. A declaration of war was partially brought about by the sinking of the Lusitania in May 1915 and later merchant ships such as the City of Memphis, Illinois and Vigilancia. In 1916 a passenger ship named the Sussex was sunk and a so called â€Å"Sussex Pledge†.On these ships were Americans, this unexpected sneak attack is known as unrestricted submarine warfare. Wilsons first attempts to mitigate the situation was through the â€Å"Lusitania notes†. These notes basically said, end the submarine warfare or else. One note that went to Berlin stated â€Å"The Imperial Government will not expect the United States to omit any word or any act necessary to the performance of its sacred duty of maintaining the rights of the United States and its citizens and of safeguarding their free exercise and enjoyment†. After a second â€Å"Lusitania note† was sent Germany came to a compromise, expressed regret and offered to pay for their attack. Wilson’s mediatio n was still not favored by the Germans (or Britain) they wanted a solid victory, especially since they felt they ha... Free Essays on What Caused Wilson Change In Opinion To Enter WW1 Free Essays on What Caused Wilson Change In Opinion To Enter WW1 There were many reasons for the United States involvement in the War, but Germany’s great desire for more power and global influence is the most evident. â€Å"Militarism was another cause of the war, it was similar to the arms race of today, because Britain had a great navy, Germany wanted a great navy too. Germany and France competed for larger armies. The more one nation built up its army and navy, the more other nations felt they had to do the same.† At the start of the war, President Wilson declared neutrality of the United States and most Americans opposed US involvement in the European war. Not only was the US culturally similar to Great Britain and France, but these two countries where our major trade partners. The US understood that if the Allies lost the war, it would have a tremendous effect on our economy. This is why America began to see Germany as the â€Å"enemy†. A declaration of war was partially brought about by the sinking of the Lusitania in May 1915 and later merchant ships such as the City of Memphis, Illinois and Vigilancia. In 1916 a passenger ship named the Sussex was sunk and a so called â€Å"Sussex Pledge†.On these ships were Americans, this unexpected sneak attack is known as unrestricted submarine warfare. Wilsons first attempts to mitigate the situation was through the â€Å"Lusitania notes†. These notes basically said, end the submarine warfare or else. One note that went to Berlin stated â€Å"The Imperial Government will not expect the United States to omit any word or any act necessary to the performance of its sacred duty of maintaining the rights of the United States and its citizens and of safeguarding their free exercise and enjoyment†. After a second â€Å"Lusitania note† was sent Germany came to a compromise, expressed regret and offered to pay for their attack. Wilson’s mediatio n was still not favored by the Germans (or Britain) they wanted a solid victory, especially since they felt they ha...

Assassination Attempt on Franklin D. Roosevelt

Assassination Attempt on Franklin D. Roosevelt Statistically, being the president of the United States is one of the most dangerous jobs in the world, since four have been assassinated (Abraham Lincoln, James Garfield, William McKinley, and John F. Kennedy). In addition to the presidents that have actually been killed while in office, there have been a myriad of unsuccessful attempts to kill U.S. presidents. One of these happened on February 15, 1933, when  Giuseppe Zangara tried to kill President-elect Franklin D. Roosevelt in Miami, Florida. The Assassination Attempt On February 15, 1933, just over two  weeks before Franklin D. Roosevelt was inaugurated as President of the United States, FDR arrived at the Bayfront Park in Miami, Florida around 9 p.m. to give a speech from the back seat of his light-blue Buick. Around 9:35 p.m., FDR finished his speech and had begun talking to some supporters who had gathered around his car when when five shots rang out. Giuseppe Joe Zangara, an Italian immigrant and unemployed bricklayer, had emptied his .32 caliber pistol at FDR. Shooting from about 25 feet away, Zangara was close enough kill FDR. However, since Zangara was only 51, he couldnt see FDR without climbing up on a wobbly chair in order to see over the crowd. Also, a woman named Lillian Cross, who stood near Zangara in the crowd, claimed to have hit Zangaras hand during the shooting. Whether it was because of bad aim, the wobbly chair, or Mrs. Crosss intervention, all five bullets missed FDR. The bullets, however, did hit bystanders. Four received minor injuries, while Chicagos Mayor Anton Cermak was mortally hit in the stomach. FDR Appears Brave During the whole ordeal, FDR appeared calm, brave, and decisive. While FDRs driver wanted to immediately rush the president-elect to safety, FDR ordered the car to stop and pick up the wounded. On their way to the hospital, FDR cradled Cermaks head on his shoulder, offering calming and comforting words which doctors later reported kept Cermak from going into shock. FDR spent several hours at the hospital, visiting each of the wounded. He came back the following day to check on the patients again. At a time when the United States desperately needed a strong leader, the untested president-elect proved himself strong and reliable in the face of crisis. Newspapers reported on both FDRs actions and demeanor, putting faith in FDR before he even stepped into the presidential office. Why Did Zangara Do It? Joe Zangara was caught immediately and taken into custody. In an interview with officials after the shooting, Zangara stated that he wanted to kill FDR because he blamed FDR and all rich people and capitalists for his chronic stomach pain. At first, a judge sentenced Zangara to 80 years in prison after Zangara pleaded guilty, saying, I kill capitalists because they kill me, stomach like drunk man. No point living. Give me electric chair.* However,  when Cermak died of his wounds on March 6, 1933 (19 days after the shooting and two days after FDRs inauguration), Zangara was charged with first-degree murder and sentenced to death. On March 20, 1933, Zangara strode to  the electric chair  unaided and then plunked himself down. His last words were Pusha da button! *Joe Zangara as quoted in Florence King, A Date Which Should Live in Irony,  The American Spectator  February 1999: 71-72.