Competitor Analysis Essay

Tata Nano’s competitors can be classified on three scales – Economy, Performance and Convenience. Based on Economy Though Tata Nano was launched as the 1 Lakh car, it’s exact price range varies between Rs.1.59 lakhs to Rs.2.23 lakhs in the market at present. With this price range, in the four wheelers category there is Maruti 800, Maruti Suzuki OMNI, Maruti Alto 800 and Hyundai Eon which has a price lesser than Rs. 3 Lakh. Being the cheapest car available in India, they also have competitors in the two and three wheeler segments. Tata Nano would be the next best option for this segment of customers if the budget limit is in this range. Tata Nano positions itself to be a family car available to those who can afford a bit more than they would spend for a two wheeler. Based on Performance Tata Nano has a 624 cc engine and has a maximum power of 37.4 bhp. Compared to its counterparts in the same price range, Tata Nano has a disadvantage on its engine capacity and maximum power. Mileage is also a crucial factor for consumers in India who look for â€Å"Value for Money† products. Tata Nano claims a mileage of 22.2 Kmpl for its base model and this compromises on its engine capacity and other performance characteristics. Most of the other features of the probable competitors of Tata Nano are almost at parity with it. Based on Convenience During the planning stages of Tata Nano, the team of engineers who designed the vehicle faced the toughest challenge of releasing a car that was both attractive as well as cheap. Tata Nano is 8% shorter and has 21% more interior space than Maruti 800. Tata Motors Limited have given due importance for the design of this low budget car to not lose out in the market just because of it being unattractive. It has the best in class maneuverability – lowest turning circle diameter. The weight of the vehicle is just 600 kg which is also comparatively lesser than Maruti and Hyundai Cars. This could be taken as both an advantage as well as a disadvantage. But in this case, the light weight of the vehicle contributes to some of the crucial distinguishing features of the car mentioned above. Some of the major launches by competitors that are specially focused to give competition to the Tata Nano are Bajaj’s RE60 and Renault has also announced that it would be releasing a new car in this category. None of the launches against Nano could disrupt Tata Nano’s market share significantly. Tata Nano is also planning to bring in variations to its initial model to get in line with its re-launching scheme of focusing on a the youth segment than the family segment. Comparison of Specifications of Tata Nano and it’s closest competitors Top 10 best-selling cars in India

Muet vs Ielts

MUET VERSUS IELTS. In today’s global world, the importance of English cannot be denied and ignored since English is the most common language spoken everywhere. Although Malay language is our mother tongue, we still have to conquer this language if we want to compete with other international countries. With the help of developing technology, English has been playing a major role in many sectors including medicine, engineering, and education is the most important arena where English is needed.Particularly, as a developing country, Malaysia needs to make use of this world-wide spoken language in order to prove its international power. Consequently, English should be the medium of instruction at universities in Malaysia. The reason for why English should be the medium of instruction at universities in Malaysia is that it helps students find a high quality jobs for students and the common language is obviously English. Next and the most important, it enables students to communicate with the international world and at once we can compete with other emerging international countries.So, to align with national development, Malaysia has established Malaysian University English Test (MUET) and International English Language Testing System (IELTS) to help students nowadays to improve a lot in English language. Firstly, the Malaysian University English Test (MUET) is an examination which measure the ability to use and understand English as it is spoken, written and heard in university campuses. This test is set and run by the Malaysian Examinations Council.MUET is created for Malaysia public universities enrolment needs and comprising 4 components that are listening, speaking, reading and writing. It is categorized into six bands or levels and only recognized in Malaysia and Singapore. Each components of this exam has its own scores. The maximum scores for each component is 45 for Listening and Speaking,120 for Reading and 90 for Writing, with the total score of 300. The scores are then graded in 6 bands, with Band 6 the highest and Band 1 the lowest.Firstly for listening test, candidates will be required to listen to recorded texts twice and answer questions consisting of information transfer, short-answer questions, and three option multiple choice questions and 4-option multiple choice questions. For speaking test, candidates will be required to perform the individual presentation and group discussion. For the individual presentation, candidates will be given 2 minutes to prepare for the given task and 2 minutes to present. Candidates will also listen to the other candidates while they are making their presentations and take down notes for the group discussion.For the group discussion that consists of 4 students, candidates will be given 2 minutes to prepare points to support or oppose the other candidates’ views. After listening to everyone in the group, candidates will make a conclusion based on their topic. The group will be given 10 minutes for the group discussion. For reading test, candidates will be required to answer the questions that comprises 45 multiple choice questions based on the texts which may be taken from journals, newspapers or magazines sources. Lastly for writing test, candidates will be required to write 2 essays.This paper comprises two writing tasks that are interpretation of information based on specific stimuli provided and extended writing based on a given topic. Secondly, the International English Language Testing System (IELTS) is an examination specially designed to assess a candidate’s competency in the English language for university studies. The IELTS examination is recognised by universities in the United Kingdom, Europe, Australia and New Zealand. IELTS also conforms to the highest to the highest international standards of language assessment.Its purpose is to find out what level band of English from 0-9. Usually people need to take the IELTS test if applying for a job or to study in a college or university in an English-speaking or the immigrants. There are two modules of the IELTS test which are academic and general. The academic module is for the future students and for the general module is or immigrants. Besides, the format for IELTS is same as MUET which include four tests which are reading, writing, speaking and listening. The listening test takes about 40 minutes.The 30 minutes early for listen to a tape and to answer questions on what you hear and then 10 minutes left to transfer answers to the answer sheet. Next, reading test takes one hour and the task is to read passages of text and answer questions according to what you have read. Then, the writing test that also takes one hour and divided into two sub part. The first 20 minutes for write a letter or report and other 40 minutes to write an essay. The last one is speaking test that takes up to 15 minutes and consists of three parts which are personal interview, cue card talk and discus sion.In additional, all the test is continue one after another but for the speaking test get a break or been held on a different day. In conclusion, IELTS is much better compare with MUET. This is because the benefits of taking IELTS are many. If we like to study in world class universities like The Oxford University, Cambridge University, University of Bridgeport, University of California Berkeley, San Francisco State University we must take IELTS. Once we are graduated from any of these universities, our career begins with a fantastic position heading toward a bright future.Moreover, we will get exposed to the best intellectual as well as socio-economic environment that would nurture outstanding personality in us. Thus, we can find a dramatic change in our intellectual, professional and financial spheres. Further, we can have access to employment abroad by writing the IELTS General Module. We can enjoy incredible lifestyle and financial security if we are employed in the United Ki ngdom, Australia or New Zealand and the most important we can gain access to on-going support from some of the world’s leading language assessment experts.Although IELTS is more tough compare to MUET but we still can work harder to success as English proverb says ‘it doesn’t kill you make you stronger’. For many years, English has been the common wold-wide language, and it will be in the future. For this reason, if you want to follow trends, new gadgets and technology, modernization of the developing world, you have to know English whatever age you are in. ?

Food Safety Act Essay

Food safety regulations places an obligation on food business operators to ensure that all their activities are carried out in a hygienic way and make it an offence to supply food which is unsafe or harmful to human health, this applies to all premises that provide food whether money is exchanged or not. The food safety team is responsible for ensuring that businesses comply with these requirement under the food safety act 1990 and food hygiene (England) regulations 2006 they deal with hygiene except at primary production (farms) where trading standards and other bodies have responsibility. Food safety The council sets the following standards for food. * Food businesses are registered. * Food is correctly labelled and described, and meets quality standards. *Manufactures and retailers of food are regularly inspected. * Restaurants and other food premises meet strict hygiene standards. * Food is safe to eat. The food safety team is responsible for the inspection of food retailers and providers in the borough; they ensure that the food hygiene and quality being made available in premises meets legal requirements. It is also responsible for ensuring food is correctly labelled and compositional standards are met. The cook in charge has to make sure all the fridges are set at the right temperature. All food that is cooked is set at the right temperature, is cooked to the right temperature before it is served. All dates are monitored regularly, only order what is needed. Documentation is filled in properly. The kitchen is kept clean. Gloves, hats and aprons are worn, hair tied back. Regular food and hygiene courses, all equipment is kept clean and stored in the correct place. Colour coded chopping boards are used. Inspectors can visit you at anytime to make sure you are doing your job to a high standard.

Life Coaching for Adolescents Essay Example | Topics and Well Written Essays - 750 words

Life Coaching for Adolescents - Essay Example On the other hand, life coaching empowers them to be strong enough to lay a solid foundation for their future races at this crucial period. Today's adolescents face a vast array of problems and difficulties in the areas of education, career, income, relationships, and personality etc. Teenagers tend to change the focus of their attention from education to many other temporal attractions and preoccupations for a number of reasons, which are complex and interrelated. A trained, professional practitioner of life coaching could help an adolescent to regain his/her focus on education through the guided coordination between educators, parents and other well-wishers. Once they become successful attaining good educational status, achieving a great career would not at all be an issue. Importantly, life coaching takes special care of adolescents' social relations for making him/her both a successful person and a good human being. Therefore, adolescents would be physically and mentally fit to avoid the temptations of substance use, gangster life and other related social evils. Even the adolescents with strong tendencies to deviate from the socially acceptable patterns of behavior could be directed to the right track through proper life coaching. To conclude, life coaching is not only individually empowering a person by identifying and developing his/her particular skills but also making him/her to become role model with fascinating social skills for the entire society. Life coaching is to enable an adolescent to synthesize between the virtues of both personal and social life. The one-sided, one-dimensional emphasis on either personal or social life would not help one to achieve his/her goals. In brief, one finds strength to go where s/he wants to be from where s/he is in as s/he undergoes life coaching from a trained professional. Life Coaching for Adolescents; Adolescents for Greater Success The statistics on teenagers tells that they face problems on problems in all the spheres of life. They are under pressure from around the corners. A good number of high school leaving children are unhappy or dissatisfied in their lives. Many a students have suicide tendencies or actual history of attempting suicide. Too many of them are not balanced in their attitudes and behaviors. Too many problems such as alcohol abuse, substance use, depression, bipolar disorder, stress, humiliation from social life, chaotic personal life, and lost dreams haunt the adolescents at their crucial but difficult stage of life. Many of them are in a dilemma; what is to be prioritized- personal life or social life. Certainly, adolescents need help and assistance that is professional and genuine from an authentic source. A professional life coaching trainer is one who could be relied to find a way out when no way out is apparent. Primarily, life coaching helps an adolescent with difficulties for self-exploration. Self-exploration enables one to bring out what is content in him/her. Based on this self-realization, one could pace for what s/he wants to attain in life and gain what deemed as unachievable in both personal and social life. The coach would support the youth to identify their strengths and weaknesses and help them to identify various opportunities while nullifying the possible threats. A life coach could work as a catalyst

Visual Literacy Essay Example | Topics and Well Written Essays - 250 words

Visual Literacy - Essay Example Taylor, by refusing to show any creations or structures of the indigenous people, represents them as a homeless, wandering band, whereas Howling Wolf portrays a thriving community. Question 2 John Taylor’s treaty signing portrays an entirely male cast, ignoring the many indigenous women present at the treaty signing. He probably did not make an active decision to exclude the women from this work, but instead made what he would have considered important artistic decisions. Taylor clearly believed that this treaty signing was an important event, as he chose to record it in such a detailed work. He probably also thought that, as an artist, his duty was to emphasize the important aspects of the event, while not portraying other things that would clutter his work. He, coming from a white patriarchal background probably believed on every level that indigenous women were of little worth, and thus the idea of recording them as part of an important event probably did not even cross his mind.

An Outstanding Multicultural Manager Assignment Example | Topics and Well Written Essays - 500 words - 6

An Outstanding Multicultural Manager - Assignment Example No one should be discriminated against in any way. Being committed to educational equity, I have to ensure that everyone has access to it. I will fight for all equities, be it racial, gender or sexual orientation. I will reevaluate value system or worldview to ensure that I don’t justify my inattention to any given group of underrepresented or disenfranchised students because of such worldview or value system (Ramsey, 16). Secondly, I can give lessons to my students regarding the critical multicultural issues like poverty, sexism, racism, and heterosexism. To ensure that cultural diversity is well addressed and practiced fully, I will start imparting knowledge on such issues to younger students because children from disenfranchised communities begin experiencing the problems at the youngest ages. Thirdly, I can provide an integrated multicultural curriculum all the year, every day and not just during special celebrations or months. This will ensure that the students are continuously learning how to deal with cultural diversity. Fourthly, I can practice correct pronunciation of each student’s full name so that every student can feel included. Students do not have to change or shorten their names to make it easy to be pronounced by anybody. This will contribute to making students feel cared for and not discriminated against. Fifthly, I can make sure that students that come from disenfranchised communities are fairly treated and not placed unjustly into lower academic tracks (Ramsey, 125). Moreover, I can tirelessly fight to get them into talented and gifted programs. In order to also benefit high achievers, I can fight tracking altogether. Sixthly, I can direct my effort towards building coalitions with other teachers who are from the different race, gender, sexual orientation, religion, class, home language, and so on.

Environmental Audit Term Paper Example | Topics and Well Written Essays - 2000 words

Environmental Audit - Term Paper Example Environmental auditing is systematic process conducted at regular interval by responsible authority in order to identify operations and practices related to meet environmental requirement. When conducting the environmental auditing, the firm should frame certain criteria for conducting the audit. Effective criteria would enable the firm to assess the performance of auditing entity. If these criteria are inappropriate it will bring certain problems in making the auditing. The framed criteria should be measurable, acceptable, and should be reliable. The organization should make good planning regarding the conduct of environmental audit. This planning would help the firm to know the required time to complete the auditing procedures and to identify potential problems in the audit etc. â€Å"For planning for successful audit assignments, the auditor needs to understand the auditees’ commitments in terms of financial norms, compliance requirements, and performance expectations. Thi s would determine what procedure is to be followed† (Guidance on Conducting Environmental Audit 9). If a firm proposed to conduct environmental audit, it should have clear objective about the auditing, and the firm should determine the steps to be undertaken by the firm to achieve the desired result. The firm should determine the audit scope, areas of auditing etc. The audit objectives includes the following†¢Ã‚  To recognize improvement opportunities.†¢Ã‚  To assess the internal policies for conducting environmental audit.... Environmental audit generally conduct in the following areas Material management and savings of material. Waste management and effective disposal of waste. Economy use of water resources. Effective utilization of energy resources. Performance pertaining with the environmental management system. Air pollution and preparedness to prevent air pollution. Noise pollutions control and preparedness. Conducting environmental auditing is the responsibility of companies, and it is their duty to keep environment free from the pollutions. The companies should evaluate their commitment toward society and they should not make any harm to the environment. Companies should utilize the natural resources in right manner and it should not exploit. Today government has imposed many regulations on the companies to protect the environment from the pollutions. â€Å"Through adoption of clean technologies and improvement in management practices for prevention and control of pollution is not only mandatory but also has got wide acceptance among the industrial community. Charter on corporate responsibility for environmental protection (CREP) also calls for commitment and voluntary initiatives of industry for responsible care of the environment† (Environmental Auditing 1). Environmental auditing reviews company’s operations and process in order to assess company’s compliance with environmental rules and regulations. Environmental auditing cover broad areas of business including building and building site. Many companies are using environmental auditing as a valuable tool of business resources. The auditing helps the company to bring many advantageous such as to know the problems relating to air, water, and land and to gain

Provide a report to describe how you would plan a survey for this Essay

Provide a report to describe how you would plan a survey for this purpose - Essay Example The first requirement is regarding sample population and the data collection procedure for obtaining required information (Rubin, 2008, p. 59). Access to the sample population of visitors can be in various tourist areas, shopping malls, and other visitor attractions. Therefore, one can conduct the survey at multiple locations where visitors are likely to be. Once researchers decide about sites of the survey, a sample population must be chosen and the number of visitors to be surveyed must be decided. For instance, approximately one hundred visitor opinions can be an adequate number of responses needed for the results of the survey for generalization. After this, surveyors can focus on parameters or controls for age, gender, marital status, number of children, and income. Hence, out of the 100 respondents surveyed, 50 can be female and 50 can be male. Then the research team should divide participants further into age brackets to ensure that results may indicate opinion of people belonging to different age brackets (Schaeffer et al, 2011, pp. 112-115). The data should be collected via a verbal survey in which visitors are stopped at the site of the survey and requested to answer a few quick questions. The interviewer should fill out the questionnaire him/herself and ask a limited number of questions, which should mostly be close-ended. It is important that the first few questions should relate to personal characteristics, such as age bracket, occupation, family size, and income. Subsequently, the questions should focus on the types of shops and the types of services people visit while staying in Canterbury City. It is important that the survey should ask information regarding spending of customers on different activities and products, and if possible, regarding total budget of the visit. An efficient way will be to include quick questions regarding personal interests along with types of

Elementary Classroom Special Needs Term Paper Example | Topics and Well Written Essays - 1750 words

Elementary Classroom Special Needs - Term Paper Example Body The classroom management plan outlines several physical arrangement plans for the classroom because of which students can learn in a different way. The desks are arranged in a manner that students can learn in a cooperative manner. The classroom environment through this type of arrangement is made collaborative which would help students to learn together by discussing things and clearing out things even more. During the course of different assignments the students would be asked to make groups and meet at specific points like the conference table and carpet area. It is in these areas that students would be able to interact and learn in an interactive manner. The desk of the teacher is arranged at the back of the classroom so that he can guide the students. Bookcases would be kept in an area which would have many books and would allow students to read and even borrow books. The centers would be composed of a cluster of desks on which the students would rotate so that the floor sp ace is not taken up. The arrangement of the room is done eloquently in such a manner that the students are able to access books and assignments altogether. The floor space is also conserved and the students are able to access different resources because of such a room arrangement. Handicapped Students should be provided with exceptional resources which would help them to learn in a comfortable manner. A specific space should be kept for them where they can sit in a comfortable manner. Students on wheel chairs should be allotted space in the classroom management plan where they can sit and study (Chopra 2009; Watts & McCord 2006). People use creative visualization in resolving most of their disputes and issues. However, the name given to this concept and the theory behind it is not known to them. Creative visualization lets the person visualize themselves or other objects in a way that facilitates their thoughts. The thoughts of children are vivid and creative visualization is quite natural for them. Their thoughts are more based on imaginations than on actuality of the issues. This pattern of visualization helps some children in developing rapidly while it disrupts the developing pace of the others. The reason is the use of visualization in an efficient or appropriate manner. Children who visualize their failure, fights, disorders in the society and negative elements are more likely to lose courage and self-esteem. This lowered self-esteem and confidence then blocks their ways to successes and achievements. Hence, creative visualization is used as a tool to improve the psychological disruptions of children. Moreover, this concept helps children in learning the positive use of their thoughts and visualization that helps them throughout their lives. Meditation and creative visualization helps children in getting rid of the stress and anxiousness with easy mind relaxing psychological exercises. Teel (2005) classified creative imagination in two boarder concepts. The first one explains the storytelling process or still scene imagination of children, whereas, the other one is related to children’s own thoughts and dream minds. In the first process the narrator or therapist tells children a story. He explains them the whole situation, structure and movements in the scene. The child acts as an artist who gives meaning to those scenes in his imagination. This way, the therapist moves the disrupting thoughts towards soothing and

Declaration of Independence and I Have a Dream Essay Example for Free

Declaration of Independence and I Have a Dream Essay Thomas Jefferson’s â€Å"Declaration of Independence† and Martin Luther King’s â€Å"I Have a Dream† are texts that have a common denominator: the pursuit of liberty. Although both documents do not focus their context in the same historical moment, both have greatly influenced the history of the United States. Specifically, Jefferson’s purpose with the â€Å"Declaration of Independence† was to denounce the offenses suffered at the hands of Great Britain and to finally declare their absolute independence, sovereignty and liberty. On the other hand, Martin Luther King’s speech, â€Å"I Have a Dream† exhorts people to end the discrimination towards Negroes and finally, their freedom. In the â€Å"Declaration of Independence†, Jefferson employs a very clear and concise language. He used this powerful language in order to use it as an instrument of social and political change. His wordplay is a very persuasive and strong one. The language of the â€Å"Declaration of Independence† is more complicated because it is a document written in 1776 and some of the words written in it are not used so often today. In the speech I Have a Dream, Martin Luther King also used words of strong connotation. It is a speech written mostly in the form of sermon, which is influenced by King, who served as a Baptist clergyman. Both texts employ a highly persuasive language that is mainly directed to their respective audiences. When we analyze the â€Å"Declaration of Independence†, we can realize that Jefferson makes a list of statements to prove the absolute Tyranny, which is present over the States. He uses these to persuade and convince the audience. Also, he repeats phrases such as â€Å"He has†¦Ã¢â‚¬  and â€Å"For†¦Ã¢â‚¬  to emphasize the facts he is presenting. Basically, the â€Å"Declaration of Independence† is a deductive argument, a form which begins with a principle and is followed by details, examples, and reasoning. Finally, â€Å"I Have a Dream† is the union of many literary techniques. King’s use of repetition in phrases like I have a dream and Let freedom ring emphasize the yearnings of Negroes and present what they mainly seek. It is a work which alludes to the â€Å"Declaration of Independence†. It also has lots of metaphors and analogies. The â€Å"Declaration of Independence† focuses its content first in its preamble, in which are written the most important and basic principles of the Declaration. Then, it is followed by a list of charges against the King of Great Britain, which are directed to demonstrate his tyranny among the States. The conclusion says that they must avoid such tyranny and declare that they have their sovereignty and therefore, their freedom. â€Å"I Have a Dream† mainly focuses on the complaint of the disenfranchisement of Negroes and the exhortation to change. Is a social proposal, a breathtaking and inspiring speech in its content. Finally, we conclude that there are more similarities between the Declaration of Independence and I Have a Dream than differences. They are texts that encourage the masses to enter and begin social movements in order to fight for their rights. These are inspiring and encouraging texts that reflect the feeling of the huge majorities in the United States. Synthesizing, the language is complex and compelling, both are full of literary techniques, and the content is social, and aimed at the masses in order to pursuit their liberty.

Impact of Population Dynamics in Canada

Impact of Population Dynamics in Canada The population of Canada is aging, and fronting population decay in spite of near record high migration levels. This demographic tendency has substantial consequences from a public policy perspective, in relations of economic evolution, public expenses and social organization. Canada, through a total fertility rate (TFR) of about 1.5, is not unaccompanied in facing this encounter; other developed nations are previously addressing the problems related by an age structure categorized by intensely growing numbers of elder people and dwindling numbers of kids and employed age citizens. Most developed nations identify this demographic encounter and numerous have applied a variety of policies to decrease its scope as well as alleviate its potential influences. Within North America the condition is slightly unique. The United States has a comparatively great fertility rate, soaring just below the replacement level of 2.1; frequently imitating a very great fertility rate aimed at Hispanic Am ericans, in addition stable settlement. Mexico’s fertility degree is well above replacement as well as has a newer population generally. Canada has had a fertility percentage beneath replacement level ever since 1972 however has an impartially high settlement rate. Maximum Canadians, if they are conscious of the matters at play, undertake immigration will take overhaul of the challenges related by an aging populace such as a lessening work force and rising dependence ratio. Rendering to Figures Canada, Canadas population is getting old rapidly and senior citizens will outstrip kids in about an era. Population forecasts for Canada’s main metropolitan areas moreover highlight how present fertility and immigration tendencies will mark cities very contrarily. It has been predictable that through 2051, 10 out of the 26 main cities in Canada will have increasing populations, whereas 12 will perceive population decay. Of the metropolises predicted to be minor, it could be as little as half their present size. And developing cities will be newer and more varied. Since in Canada labor represents nearly two-third of the revenue share, the anticipated slowing in labor force growth increases important labor market as well as economic growth challenges (Annabi, Nabil et. al. 2009). Demographics are accurately at this interval of individual as well as collective interests (Demeny. 1986). The sum of children to have, in addition where to exist, is enormously personal queries; however the society likewise has an interest as these behaviors impact collective happiness. The number as well as structure of its affiliation is of pure interest to the entire society, and there is a genuine source for inter-personal impacts in favor to the related behaviors which are far away from virtuously private. What might we propose as a populace policy for Canada, in the logic of an idea of the favored demographic future as well as a debate of the means to transfer in that direction. In my opinion, this might instigate by two elements: (1) the compensations of some population development or at least evading decline, as well as (2) sluggish rather than speedier aging. Considerable demographic development can be frugally useful, or at minimum it has been in the historical, but evadin g decline is perhaps more significant from a financial point of vision (United Nations. 2000). Decay would mean numerous extra investments and problematic adjustments of numerous kinds, and it would comprise mainly noteworthy aging. On the further hand, environmental influences point to the difficulties of high growth. Though population growth could inspire more ecologically friendly consumption as well as technology, there is no evading the straight multiplier of population extent on ecological impact, specified our principles of living based on great use of energy and additional forms of harmful consumption (Daly. 1999). In the background of doubts associated with ecological questions, the sensible course of act would be to pursue to diminish the impact (LeGrand. 1998). In relations of specific constituents, fertility is the vital for both growth as well as aging. There is evidently limited impending for influence in respect to fertility, certain would say there is nothing. Still, reflections on nations that have principally low fertility, for example in Southern as well as Eastern Europe, propose that these very little levels arise when women have prospects in education as well as the labor force, however the family remains customary. If women have to engross the family work, particularly once there are kids, they are mainly focused on to highlighting their parts in the paid work range, where prospects are more equivalent. Fertility in a contemporary society might be made constant by strategies that would support families, irrespective of family type, decrease gender dependences in families, and apt a better allocation of earning and caring actions among males and females (Beaujot. 2000). This would not probably bring fertility beyond replacement; however it may permit more individuals to have the children that they initially envisioned. That is, we should pursue to remove the obstacles to childbearing over better partaking in the costs of kids by fathers and the wider society. Mortality is informal since lengthier and restored lives are a extensively shared value. As designated earlier, in a period of deferred degenerative as well as hybristic mortality, main are the threat factors and management. It points to the significance of constant public education on risk factors, laterally with developments in treatment. It likewise points to the numerous other bases for drawback that discourage persons from enchanting control of their lives. Other threat factors are ecological, where more exploration is required, but there is substantial evidence on the influence of environmental excellence on population wellbeing. In effect, there is additional information on the effect of atmosphere on populace than the effect of populace on atmosphere. However here again, the more danger is the deficiency of political drive to accomplish from the exploration in a policy path. Whereas immigration objectives work quite well, there is requisite for more debate on the basis for fixing these objectives in terms of together number as well as composition. Yet the Immigration Legislative Review (1997) perceived that, for numerous, sums of immigration were not an â€Å"interesting topic† as well as that the significant problems were not just figures. The costs as well as remunerations of migration towards the receiving society requisite fuller exploration, particularly in terms of the discrepancy costs and profits to diverse interests and fragments of the society. For example, it is determined in Sweden that by evading the inexpensive solution of guest labors, the society was encouraged to mark more space for females in the labor force, counting policies that would permit labors to have children. Whereas immigration is esteemed in terms of getting diversity, abundance, pluralism as well as contact with a wider world, population regeneration that is markedly based on immigration rather than fertility resources much change as well as possibly less probable for socializing novel members into a shared society. If one contemplates immigration in relations of pressures from exterior of Canada, one mode to grip these pressures is over higher immigration, laterally with fair trade as well as international support. Evidently, higher immigration is of attention to persons who are pursuing to transfer to Canada, and it is frequently of attention to sending societies. I would approve by the Economic Council of Canada (1991) that the situation for migration should not be completed in demographic or else economic relations, however in socio-cultural relations. Whereas immigration somewhat decreases aging, it is an overstatement to say that migration will correct the age arrangement. Likewise, immigration perhaps conveys net macro-economic remunerations, counting a source of labor market regeneration, however internal contemplations are more signifi cant to macro-economic development. As an alternative, the case for migration requests to be made in relations of pluralism, ethnic dynamism, humanitarian apprehensions, and candidness to a wider world. Therefore the level as well as composition of migration essentials to be centered on a political judgment concerning the kind of society that we dearth to shape. We need to develop a civilization that will have virtuous adaptive capability, by being together diverse as well as cohesive. Hence the judgment is neither demographic nor financial, however in terms of the type of immigration that will exploit the occasionally contradictory components of diversity in addition to cohesiveness. That leaves worldwide migration, where the strategy basis is best recognized. Whereas the instant demographics of immigration are rationally well proven, the part that these should show in defining immigration levels is far fewer vibrant. There are the small term remunerations to the labor market, laterally with the short term expenses of incorporation, but the long term profits of a bigger population rests on the comparative weight given to financial and ecological considerations. In Europe, Asia as well as Australia the reactions to their condition have been diverse. Every nation has engrossed on specific policy responses to multifaceted issues. Most have selected to focus on increasing or upholding a fertility proportion adjacent replacement levels though also paying thoughtful attention to labor market problems such as growing the labor force addition of women as well as other under-represented assemblies, and later superannuation ages for workforces. Some, maximum notably Australia, have likewise looked towards immigration to decrease the probability of reductions in population extent or uncontrollable ageing tendencies. The lessons from additional industrialized states comprise the significance of having a mix of strategies in place to ensure a maintainable population base. Associated to these reactions in other nations, the Canadian approach is different. In Canada, comparatively little consideration has been paid to matters of sustainable population and nothing has been remunerated to problems of fertility rates exterior the region of Quà ©bec. The Canadian strategy response has been mainly engrossed on immigration as a basis of development for the labor market and as an extenuating feature for ageing inclinations (McDaniel, Susan, A., Julia Rozanova. 2011). More lately some consideration has been engrossed on other labor market strategies, mainly exploring ingenuities around later superannuation for Canadian workers. The region of Quà ©bec has applied more clearly pro-natalist strategies including cash incentives as well as, more lately, general childcare. We might agree or disagree on these particulars; however the broader difficulty is the absence of an established basis for strategy that would pursue to endogenize population. Observing at the Australian case, McNicoll (1995) discovers that there are numerous impairments to population strategy in liberal democracies. In addition to the absence of a political source for long-term forecasting, the stress on individual well-being, and the lack of consideration to scale, there is likewise a propensity for â€Å"government to perceive its electorate only in terms of systematized groups as well as its role that of judging competing statements† (p. 18). In the Canadian situation, Pal (1993) has analyzed in what way numerous â€Å"civil society† assemblies, frequently set up by the state, are likewise pursuing rents through the political structure and might control plans based on explicit interests. It would seem that these benefits narrate less to the population as an entire, than to precise apprehensions similar to those of family, feminism, atmosphere, wellbeing, multiculturalism or immigrants. That is, the possible components to discussion of population plan are engrossed in distinctive political dominions and they are accordingly reactive to separate relatively than common benefits. Some of the components would even be in contradiction of any discussion of population plan. There is abundant room for further investigation. We requisite to improve our considerate of the trends in the constituents of population change in directive to have additional secure bases for the forecasts assumptions. Canada essentials further analyses of the inferences of both the actual as well as the potential demographic modification. We likewise need further discerning on the policy side of the developing demographics. In heartening demographers to contemplate of policy, I am encouraged by Canadian basic democratic alignment to count everybody equally in the entire populati on. Whereas there is scope for those who think of the benefits of specific assemblies, like the elderly, kids, women, visible subgroups, families, or else immigrants, there are likewise compensations to looking at the entire population, and its well-being, counting everybody equally. Bibliography Annabi, Nabil, Maxime Fougà ¨re, and Simon Harvey. 2009. Inter-temporal and Inter-industry Effects of Population Ageing: A General Equilibrium Assessment for Canada.LABOUR: Review Of Labour Economics Industrial Relations23, no. 4: 609-651.Business Source Complete, EBSCOhost(accessed March 12, 2015). Beaujot, Roderic and Judy-Lynn Richards, 1996. â€Å"International Equity in Reforming the Canada Pension Plan,† Policy Options 17(9). Daly, Herman, 1999. â€Å"From empty world economics to full world economics,† in P. Demeny and G. McNicoll, The Earthscan Reader in Population and Development. London: Earthscan Publications, pp. 270-78. Demeny, Paul, 1986. â€Å"Population and the invisible hand,† Demography, 23 (4): 473-488. Economic Council of Canada, 1991. Economic and Social Impacts of Immigration. Ottawa: Economic Council of Canada. Immigration Legislative Review, 1997. Not Just Numbers: A Canadian Framework for Future Immigration. Ottawa: Minister of Public Works. LeGrand, Thomas, 1998. â€Å"Croissance de la population mondiale et environnement: les enjeux,† Cahiers Quà ©becois de Dà ©mographie 27 (2): 221-252. McNicoll, Geoffrey, 1995, â€Å"Institutional impediments to population policy in Australia.† Australian National University, Working Papers in Demography No. 53. Pal, Leslie, 1993. Interests of State: The Politics of Language, Multiculturalism, and Feminism in Canada. Montreal: McGill-Queen`s University Press. United Nations, 2000. Replacement Migration: Is it a Solution to Declining and Aging Populations? United Nations: Population Division. McDaniel, Susan, A., and Julia Rozanova. 2011. Canada’s Aging Population (1986) Redux.Canadian Journal On Aging30, no. 3: 511-521.CINAHL with Full Text, EBSCOhost(accessed March 12, 2015).

Major Sources of Finance and Funding for SMEs

Major Sources of Finance and Funding for SMEs Introduction Small and medium-sized enterprises (SMEs) are the backbone of all economies and are a key source of economic growth, dynamism and flexibility in advanced industrialised countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organisation, accounting for over 95% and up to 99% of enterprises depending on the country (OECD 2006). While not every small business turns into a multinational, they all face the same issue in their early days finding the funds to enable them to start and build up the business and test their product or service. This essay will be looking at the major sources of finance for SMEs and start ups, also will be looking at the advantages and disadvantages of this various sources. Furthermore I will be drawing from the lectures notes, seminars with different enterprise and other sources to identify these sources and their advantages and disadvantages. Funds are difficult to source for especially in this present period of recession. However, funds can be sources through various means each of which have it merit and demerits. The decision as to what source of finance will be the best will depend on, the cost of borrowing, the length of time the money will be need, what is the money for and ultimately whether the firm can payback. Burns (2007) The most important consideration in deciding the source of finance for SMEs is to strike a balance equity and debt and to make sure the source of finance suits the business. What differentiate (money borrowed) debt and equity are that financial institutions demand interest and capital repayments, but debts is usually held up against a business assets or personal properties of the owners. The sources of finance for start-ups and SMEs can be divided into two: internal which includes (personal savings, family and friends) and external includes (trade credit, venture capitals, business angle, hiring and leasing, bank loans, Factoring and invoice discounting, grant, bank overdraft). Internal sources: Personal savings, family and friends: this is often the starting point for most SMEs where the owner uses his/her savings to start up the business, may be later in the business others may be prepared help you out example the case of Amazon that was shown in class where his parents and friends helped at some point, also is the same for most of the entrepreneur brought on in the seminar. It should be noted that for family and friends the reason for funding should be known as some may give in turn to have share of the business which might not be explicit, in other to avoid these a written agreements would be a better option stating the basis of such funding. An advantage is that this shows that the owner has some level of confidence and commitment to the business enterprise and might make it easier to gain money from others. It costless form of finance, but there is higher risk of the money being lost since the entrepreneur idea might not be fully developed. External sources: Grants: Grants are often available from councils, local authorities, and other Government agencies for specific reasons. For example there may be plans by the government or council to revive or encourage the development of a sector or an area. Alternatively there are some institutions that helps entrepreneur to lunch new business. One disadvantage is that assess to grants can be competitive as some businesses are classified more important than others and it can be very difficult to locate an individual or organizations who will be willing to give funds for small business. An advantage is that most grants dont require payback and has no interest. Bank Overdraft: An overdraft is agreed sums which a customer can overdraw form his current account. Bank overdraft can be a good source of short-term finance to help a business with seasonal shortage of funds that does not require long-term solution. The charges varies and are linked to the bank rate. The advantage of overdraft is that it is always there when it is need and it is at no cost (however small fee are charged) it helps to maintain a good cash flow. Also it is quick to set-up when compared to a loan. Overdraft disadvantages. The interest rate on an overdraft can be quite high, especially for small firms where the risk to the bank that they might not get their money back is greater. In addition, the business is not allowed to exceed their overdraft limit. If they do, the bank might refuse to pay cheques to creditors and may hit the business with a hefty charge for exceeding the limit. Overdraft facilities can be re-negotiated but if this is tried too many times, it may be a signal to the bank that a business has not got control over its finances. Venture capitals (VCs): It is also known as private equity finance. This source is often most times used in the early stages (or a later stage depending on the type of VCs) of developing a new business, where the risk of failure is high but the possible earnings may well also be high. Venture capital dealings are, just about  £500,000 to  £10 million, or above. Venture capital most time provides second round financing after Business angels. Venture capitalists invest large sums of money in return for a share in the firms equity and also expect a good return on their investment. It should be noted that venture capitalists most times are firm or representative of a parent firm. One advantages of getting a VC are they provide large sum of finance and the significant expertise, contacts and experiences they have acquire while running other businesses. Furthermore successfully attracting a venture capital makes it sometimes easier to get others for further funding. Example of theses i s the Dragons Den. On the other hand disadvantage getting a deal with a venture capitalist may be a long and difficult process. As it will require drawing up a well detailed plan, financial projections which may require professional help or friends who have such knowledge, legal requirement may be needed on getting to the negotiation stage all of these services will have to be paid for whether or not the fund was secured. Also there is tendency for VCs to influence or take control of the business. Business Angels: Business angels (BAs) are also know as angle investors, they are rich individuals who invest in a potential high growth businesses in return for a share in the ownership of the business. They are typically involved at an early stage of the business. Some BAs invest as an individual, while others do as part of a group, or investment club. BAs often make their own skills, experience and contacts available to the company. BAs in general invest in businesses between  £10,000 and  £750,000 as individual and up to  £1,000,000 or more as a group. One advantage of BAs is that they often make an quick investment decisions, without complex assessments. (i.e. when it appeals to them or an area of interest) However, a professional and well prepared business plan will be needed to get their attention. Most BAs bring relevant experience, skill, time, and contacts they have built up overtime. Most BAs are committed and do everything within their power to make the business wor k. The disadvantage of BAs is that they are difficult to find and dont make investments very regularly, more time will be spent with the BAs rather with the business giving information, The entrepreneur may loss some level of control over the business, locating the right investors may be difficult, also there is tendencies for the BAs to want to stay in the business therefore becoming a â€Å"devil†. The British Business Angels Association (BBAA) is a good source of locating BA networks also they help in preparing and presentation of business proposals. Invoice Discounting and Invoice Factoring: This involves a company outsourcing its invoicing activities to an external organisation. It makes funds available in few days to the business base on the values of the outstanding invoices. Then process, It begins by the firm making sales, sending the invoice to the customer, sending a copy of the invoice to the factoring institution where necessary negotiations and investigations is carried out on the customer after which an agreed percentage of the invoice is paid by the factoring company, usually 70-80% within 24 hours. This service comes with a cost which include administration charges, interest, credit protection charges, etc. the major advantage of this source of finance is the quick availability of funds which can be channel into another aspect of the business, also with presence of many factoring companies, this makes prices competitive, further it makes preparation of financial planning and cash flow easier and smoother, it can be an efficient and cost effective was of sub contracting that area of the business which reduces the time spent chasing payment. It is also an opportunity to know the credit standing of your customers which can help in negotiating a better deal with your suppliers and customer. The down side is that the charges will imply a reduction in the profit margin, in addition it may limit the way business is done as the factoring company may want to vet your consumers. It may reduce the extent of borrowing as the invoice is not available as security, also some customer may prefer to deal directly with their suppliers. In the situation where the customer default the business has to pay also an additional fees may be charged. Trade credit: some businesses depend on the purchase of a product from other companies (suppliers) to run their enterprise. Trade credit is a case where a supplier gives out his product to a customer on credit expecting to pay at a later date. Most trade creditors allow for a period of 30 days or longer before payment are made, this can allow the business to use the funds in the short term to finance other things. This should be done with caution so as not to risk upsetting the supplier and put at risk the future working relationship of business. Advantages of Trade credit: By setting up trade credit it will require less money to start up a business, this can be really important to those who have little capital in starting up a business, also the ability to buy now and pay later, the business can purchase the item and sell them at a profit before payment are made. With this the business time to focus on other areas of the business like marketing etc rather than worry about paying the ir supplier. It also makes for improved cash flow and smooth operation for the business. Example of all these is the case of QPC as discussed in the seminar. The downside to trade credit is if the business fails to meet the deadline it may leads to poor credit history which might limit the business chances of securing funds elsewhere. Also it can be difficult to get trade credit as only firms with good credit history are given, however these can be difficult to build as a new business. Hire Purchase and Leasing: Hire purchase and leasing allows a business to acquire an asset without paying the full-price. The business will have the right to use the equipment for a period of time after which they can buy it at a reduced price or return it. These means is mostly used in the purchase of heavy equipment. Leasing an asset makes available some working capital that can be use in other areas of the business. In a lease, the business is paying for the use of an equipment or machinery but do not own it. A lease agreement on an equipment or machinery, for example, might mean that the firm pays out  £250 or more per month for a 3-4 year lease. At the end of the years, the equipment or machinery is returned to the owner. Some advantages of leasing equipment include, having and using an asset without having to pay the full cost up front, so cash can be diverted for other purpose. it gives the business access to a modern standard of equipment, which might be too costly to buy u pfront payments are spread over a long period of time., leases can be helpful to business which carries out short projects or needs equipment for short time as they dont have to buy such equipments out-rightly. With the payment based on the fixed period of time the equipment will be use and fixed monthly rental costs, this helps the business to budget for the future, forecast cash flow and plan effectively. It also reduces the cost of maintenance, as the leasing company will be responsible for that and carries the risk of the equipment if it breaks down. Capital allowance can be claim on the equipment. The asset can be purchased as a reduced price. Some disadvantages of leasing equipment: it can work out to be more expensive than if you buy the assets outright, Capital allowances may not be claimed on lease equipment less than five years in some cases seven years. Business can be stocked into inflexible medium or long-term agreements, which may be difficult to terminate. In the case of Adrian Lauchlan who got a big warehouse and later discovers it was too big but could not break the contract due to the length of time. Leasing contract can be complex to manage and can add to the management operation, businesses has to be VAT-registered to take out a leasing contract, the asset are not owned despite paying monthly for it. Bank Loans: Bank loans can be a couple of thousand to hundred thousands of pounds depending on the security and business prospects. A loan is an amount of money borrowed for a set period with aim of paying back at an agreed date. The repayment will depend on the size, length of the loan and the rate of interest. The terms and conditions of loan vary with providers and may be negotiable. Loan periods varies between 1 to 10 years, with some going up to 20 years, though each lender have a number of loan packages to suit various business needs. The riskier the business, the less likely to be able to borrow, and the higher the interest rate charged. This helps the bank to ensure that they are covered even if the risk does not pay off. Advantages of loans: Banks loan are reliable because the money is guaranteed throughout the agreed period generally three to ten years unless there is a breach of the loan conditions. If the loan will be use in the purchase of equipment it can be tied to th e lifetime of the equipment or other assets youre borrowing the money to pay for. Loans do not require giving up part of the business as of the case of an investor but the interest which serve as the cost must be paid. Some loans have fixed interest rates which are easy to calculate. Disadvantages of loans: Most loans are not flexible once the payment date are fixed also they have strict terms and conditions, there might be difficulty in making monthly repayment when customers done pay on time therefore causing cash flow problem. Most loans are secured against the business owners property or the asset of the business, but these properties will be at risk if the business defaults. Adrian Lauchlan almost lost his house due to low cash flow. Businesses are charged if the loans are paid before the end of the agreed period. In situation where more funds are borrowed than needed interest will be paid on fund not used. The bank will not be willing to increase the loan without an increase i n security. In conclusion, the essay has discussed some of the major sources of finance and also discusses their advantages and the disadvantages of this various sources, it should be noted that each firm or business should choose the most appropriate sources of finance that suits it mode of operation and kind of business. References http://www.entrepreneur.com/money/buyingandsellingabusinessmikehandelsman/article204238.html The OECD Policy briefing (2006); Financing SMEs and Entrepreneurs. Burns, P (2007), Entrepreneurship and small business 2nd edition, Palgrave, Basingstoke. http://ec.europa.eu/enterprise/newsroom/cf/newsbytheme.cfm?displayType=library=en http://www.lbangels.co.uk/downloads/Raising%20Business%20Angel%20Funding.pdf ACCA SME UNIT :Improving SME access to equity finance: http://www.accaglobal.com/pubs/general/activities/library/small_business/sme_policy/equity_investment.pdf Financing Innovations: InnoSupportTransfer Supporting Innovations in SME: http://www.innosupport.net/uploads/media/8_1_Sources_of_Finance_for_innovation.pdf Thorne.S (2007), sources of finance: http://www.eic-guide.co.uk/docs/src_finc.pdf Irwin.D Scott.J (2008) Barriers to raising bank finance faced by SMEs, Queens University Management School, Belfast. Fraser, S. (2005), Finance for Small and Medium Sized Enterprises: A Report on the 2004 UK Survey of SME Finances, Warwick Business School, Coventry.

Immigration Restriction Law of 1924 Essay -- essays research papers

The immigration act of 1924 was really the first permanent limitation on immigration. This limitation was like a quota system that only aloud two percent instead of the three percent of each foreign born group living in the United states in 1890. Like it say in Document A â€Å"Under the act of 1924 the number of each nationality who may be admitted annually is limited to two per cent of the population of such nationality resident in the United States according to the census of 1890.† Using the 1890 census instead of newer up-to-date ones they excluded a lot of new immigrants from Southern and Eastern Europe that came by in resent years (This is shown awfully well in Document B). This acts annual quota changed from 358,000 in 1921 to 164,000 in 1924 and finally changed to 154,000. Their was a couple of reasons that the United States made this an act; people were prejudice such as the KKK, and Americans lost jobs to new coming immigrants. People also felt that they had a suffi cient population and wanted to breed pure Americans.   Ã‚  Ã‚  Ã‚  Ã‚  What Senator Ellison D. Smith was talking about when he said â€Å"I think we now have sufficient population in out country for us to shut the door and to breed up a pure, unadulterated American citizenship.....thank God we have in America perhaps the largest percentage of any country in the world of pure unadulterated Anglo-Saxon stock†¦.greatest of any nation† (Document I). He was really talking about how he thinks that if so calle...

Essay --

Chris Layton 12 September 2013 Block 1 Rough Draft Drugs & Athletes During the advancement of technology, athletes have been able to get powerful drugs that help them during physical activity. These drugs are also banned by the World Anti-Doping Agency (WADA). They use these drugs to give them a competitive edge to keep up with the competition. Some athletes have distinctive trait that some do not like having a gene that helps them perform like the ACE gene helps perform in long distance events. Other athletes that compete have to use performance enhancing drugs (PEDs) to be able to keep up with them and have a chance to win. Performance enhancing drugs, including blood doping, stimulants, and human growth hormone, should be prohibited because of moral and ethical concerns and the personal consequences to athletes. Performance enhancing drugs have been used since ancient times. The use of enhancement substances for sporting events dates back to the ancient Greeks and ancient Maya. () Performance potions were utilized by the Greeks to increase their abilities and cocoa leaves were thought to be used by ancient Maya. () Today, athletes will go to many lengths to increase athletic ability, including: steroids, HGH, Amphetamines, and even animal or human organs just as the Greeks did in their time. () The most common performance enhancing drugs or treatment is blood doping, stimulants, human growth hormone (HGH), and anabolic steroids. Stimulants are a generic term to describe various substances that are ingested by athletes into the human body for the purpose of increasing alertness or general physical performance. Common stimulants that have been typically utilized by athletes in various disciplines are caffeine, amphetamines, a... ...drugs and go suspended for one and a half seasons. Performance enhancing drugs are not worth all the problems they can cause and definitely not worth your fans losing respect for you because they’re the ones who support you throughout your years. Overall, the negative effects of PED’s overweigh the positive effects of the use and abuse of them. The head of sports made the right move to ban, performance enhancing drugs, including blood doping, stimulants, and human growth hormone, should be prohibited because of moral and ethical concerns and the personal consequences to athletes. Performance enhancing drugs granted give you an edge over your competitor, but later in life you will regret using them because it’s effects will still be there rather you’re still on them or not. The World Anti-Doping Agency made the right move to ban all substances that harm yourself.

New England Soup Company: Business Overview Essay

On January 11, 1991, William Kolander, president of the New England Soup Company of Boston, Massachusetts, was reviewing a research report he had received from a Boston-based research house. The report presented the findings of a study on the firm’s new formulation of Kolander’s Chowder brand of canned soup. The study had also been sent to the firm’s sales manager, Kirk George, and the production manager, Edward Corey. A meeting was scheduled for January 12 with the research firm and the New England Soup Company management. The purpose of the meeting was to discuss the research findings and to make decisions concerning Kolander’s product offerings. The Company The New England Soup Company was a small firm that produced and distributed a line of specialty canned soup products to both the institutional and retail markets. Approximately 62 percent of their 1990 sales volume went to the institutional market ($68,526), and 38 percent went to the retail market ($42,102). The company was founded by William Kolander in 1957. Kolander’s father was a successful owner of several restaurants in the Boston area that were famous for their chowder. The young Kolander convinced his father in 1956 that there was a market to sell the chowder to local institutions (restaurants, hospitals, etc.) in the New England area, and he developed a canned chowder under his father’s supervision. Production facilities were acquired in the same year. After losses in the first few years, the business turned profitable in 1960. At this time, Kolander decided to enter the retail market with Kolander’s Chowder brand. Both the institutional and retail business grew rapidly during the 1960’s, as did the firm’s profitability. Expanded production facilities were built in 1968, and two additional specialty soup lines were introduced in 1970. These lines experienced limited success at retail but were reasonably profitable in the institutional market. Current Situation The last five years had been a period of level and then declining sales for Kolander’s Chowder (1987 -6943 cases, 1988 — 5676 cases, 1989 — 5101  cases, and 19901 — 4900 cases). Kolander attributed this decline in sales to the market entry of two new canned chowders in 1986 and 1987 (see Appendix A). The new competitors were Fisherman’s Delight Chowder and Cape Cod Chowder. Both brands were produced locally and appeared very similar in formulation to Kolander’s Chowder. Both of the new competitors had entered the market with a somewhat lower selling price than the Kolander’s brand. Distributors were also attracted by the slightly higher margins plus the desire to carry a competitive alternative to Kolander’s Chowder. Several large retailers had advertised the Fisherman’s Delight brand as a â€Å"weekly special† at 43 cents per can. Management Objective Kolander recognized that the firm faced a serious competitive threat from the two new brand entries. While there were several long-term issues he was considering, his immediate concern was one of developing a competitive strategy to counter the sales decline of Kolander’s Chowder. Specifically, he wanted to recover the lost distribution of the brand and switch customers from competitive brands back to the Kolander’s brand. This was to be accomplished within the next 12 months. While increased distribution outside the current market area was a possibility, Kolander’s immediate objective was to improve the market position of Kolander’s Chowder at retail within the New England are. Estimated from 1989 company records. The Research Project In October 1989, Kolander contacted a local research firm. After a number of meetings, the research firm recommended that a series of group interviews be conducted with current users of the two competitive chowder brands in order to explore reasons for the product usage, reactions to the brands, and perceived product differences. Through group sessions of this nature, the research firm believed that the cause of declining sales of Kolander’s Chowder could be established and potential solutions identified. The results  of the group sessions suggested that an important proportion of the competitive canned chowder users preferred a chowder that was thicker and creamier than the current Kolander’s Chowder brand formulation. Of the former Kowlander’s Chowder users, the desire for a creamier formulation was the predominant reason for switching. Many of these chowder users had switched to either Fisherman’s Delight or Cape Cod Chowder. Based on these findings, the research firm recommended that further research be conducted to evaluate changing Kolander’s Chowder to a creamier formulation. For purposes of the test, it was recommended that two creamier formulations be developed, a â€Å"creamy† version and an â€Å"extra creamy† version. These two new formulations would be evaluated in a taste test along with Kolander’s current chowder plus the two competitive brands. After several meetings on specific aspects of the proposed research design, Kolander decided to approve the project. Appendix B presents the results of this study. Case Question Focusing on the retail market, what product line does the research suggest Kolander should produce? Guidelines for 3-Slide Submission Slide 1: Analyze the data in Table 1 and make a product line recommendation Slide 2: Evaluate the focus group and the taste test and judge the quality of data from each Slide 3: What would you have done differently if you had guided the research process for this problem? APPENDIX A: New England Soup Company, Audit of Retail Food Outlets (Tables from the Report) Fifty retail food outlets in the New England market area have been audited annually since 1975. These are deemed representative of the potential distribution outlets of canned soups for the New England Soup Company. APPENDIX B: Evaluation of Two New Formulations of Kolander’s Canned Chowder Research Objectives To evaluate the preference for two new chowder formulations among users of Kolander’s Chowder, Cape Cod Chowder, and Fisherman’s Delight Chowder. Research Design and Procedure Two hundred male (n=100) and female (n=100) canned chowder users were selected from four geographic locations representative of the New England market area. The subjects were selected using a probability sampling procedure involving a telephone-administered qualifying questionnaire. Each  subject was paid $5 for participating in the test. The subjects came to one of four test locations (local churches). They were tested individually in 30-minute sessions. Subjects were brought into the testing room and seated at stalls. An instruction sheet explained that the subject was to evaluate several samples of chowder, that the test would consist of three parts, and that they would be required to taste a total of 15 cups of chowder. Normal taste-testing procedures were followed. The first part involved tasting five samples of chowder and ranking them from â€Å"most preferred† to â€Å"least preferred†. The five chowders were Kolander’s regular chowder, Fisherman’s Delight, Kolander’s creamy (version 1), Cape Cod, and Kolander’s extra creamy (version 2). The second and third parts of the test involved tasting five samples again. The samples had different code letters and the subjects were not told the samples were identical to the previous five. After tasting the five samples, the subjects were again asked to rank order the five samples. For each subject, the test procedure resulted in three preference orderings of the five chowder samples. The preference orderings were combined to form a composite ordering for each subject, a procedure that resulted in a more reliable measure of each subject’s true preference ordering. Results The data set consisted of 200 preference orderings of the five chowders. Table 1 presents 20 preference orderings which are representative of the entire data set. The difference between male and female preference orderings was not statistically significant. The data set was analyzed by calculating the average rank order of each chowder and scaling the chowders on a five-point scale ranging from most preferred (1) to least preferred (5). Table 2 presents the results of this analysis. Recommendation and Discussion Recommendation: Change the current Kolander’s Chowder formulation to the  version 1–â€Å"creamy† – formulation and develop a new label which makes this change conspicuous at point of purchase. The table 2 results clearly indicate that the current Kolander’s Chowder formulation and the â€Å"extra creamy† formulation ranked significantly (.05 level of significance) lower than the two competitors’ brands and the â€Å"creamy† formulation. These findings suggest that the market position of Kolander’s Chowder can be improved by a formulation change to the â€Å"creamy† version, which ranks higher than the two competitors and should recapture a significant share of sales lost to the Cape Cod and Fisherman’s Delight brands.

Fast Foods Essay

  Obesity among kids in the United States is on the rise. Many studies have shown the correlation between obesity and the fast food. The statistics show that in the United States almost six out of every ten people eat fast foods. The habit of eating fast foods is not a recent development. History has it that the practices could date as early as 512BC (think quest). During this period, some Egyptian restaurants offered a single dish of wild fowl, cereal, and onions. Ever since that, time restaurants have completely and progressively changed. Today there are thousands of restaurants all over the world. Most the fast foods sold always have some characteristics in common, in whichever part of the world the restaurant is located. It has been established that in most adults eat more fast foods because of the increasing working hours and not finding time for home cooked meal (Morgan, 2004). The other reason is that there are so many tasty choices for one to choose from. Furthermore, it does not take long to get the fast foods when one is in a hurry. Making it quite convenient for students and kids. Many American kids love fast foods like the specially created â€Å"combo† meals that are sold by the many restaurants specifically for them. The meals are always colorfully boxed and sometimes toys included for attracting the kids. Many kids seem to love the idea of going out with their friend and parents because they know that in process they get to buy the foods and snacks. Children would nag and insist on going out and have various kinds of of fast foods rather than having the homemade food. This is not surprising for they are easily lured by the attractive advertisement of fast foods oblivious of the dangers associated with them (Buzzle articles). The nutrition content of most fast foods is a worrying thing. Most of them have proven to be very unhealthy for kids and results in the increasing incidences of obesity among the them. These foods are sold cheaply something that consistently tempts the consumers to them.   It is a known fact that most of the fast foods are usually high in fat, cholesterol and sodium. Eating of these fast foods over along period of time lead to many health problems like the high blood pressure , heart diseases and obesity. Research data Various researches have been done to determine the extent to which fast foods are contributing to obesity not only in children but also in the entire human community. For example, a study by the USDA’s agricultural research service on some 90000US citizens established that over a quarter of adults in age group above 20 years eat fast foods daily. These foods are highly sugary; contain fats, carbohydrates and too many proteins (food navigator, 2004). Furthermore, research by a team lead by Mendoza aimed specifically at the content of the kid’s fast food. They targeted the meals served at some ten well-known regional restaurants situated in Houston. In their studies, the team found that only three percent of the food offered at these eating-places met the seven key standards set by the national school lunch program for meals intended for children in the kindergarten and through third grade. The meals which were referred to as the â€Å"best choice† were only made up of deli-style sandwich,-turkey, ham, roast beef or tuna-combined with a fruit, such as apple slices or raisins (ARS, 2009). Other meals include plain hamburger, fruit s, and low fat milk as well as a beverage. The meals that failed to meet the school lunch guidelines had more than 65 percent of fat. Furthermore, 75 per cent of the meals had too, little calcium, 82 percent had too little iron and 85 percent too little vitamin. Also according to Mendoza, the energy density of the fast foods not meeting the school lunch standards was 2.3 calories per gram compared to only 1.5 calories recommended by the standards. These findings though obtained from Houston alone qualify well to represent the reality nationally. According to the researchers, Houston is the fourth largest city in the United States. In addition, 10 of the restaurants there are among the 13 of the nation’s regional national fast food chains, which sell kid’s fast food (ARS, 2009). Most of these researches were spurred by the increasing levels in the number of obesity case among children. In fact, it has been established that more than 16 percent of children in the United States were overweight. In addition, there was a doubling in the estimated incidences of overweight among children and triple in the rate among adolescents. There was also the concern of by the pediatricians and other health care professionals that found the child obesity trend quite alarming and its potential death consequences. These findings related to the number of meals eaten away from homes. The rate of meals eaten away from home has grown from 20 percent in the   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   1970s to more than 30 percent presently. In a Further survey by the department of agriculture food surveys of Americans, 25 percent of us children aged between four and eight would on a typical day take fast food (ARS, 2009) The effects The main consequence of this fast food has been the increase in the number of overweight children. These yummy tasty and low costs happy foods are the attributes. One big challenge associated with this fast food is that it is becoming socially accepted (Milos, 2010). Many purple would decide to overcome guilt by giving themselves a treat by going to consume these food. There are commercials all over urging people to get latest desserts and other food. This has made it look superficially right but that is not the case.   The various ingredients of these foods have distinct health effects. Some people argue that we are in an era of junk food. The children have been driven away from the green leafy vegetable and only relish these fast foods. The effects that come out are irreversibly harmful. The excess sugar in these fast foods and the sodas laed to diabetes in the children’s body. They may develop the type 2 diabetes that is more prominent with the grand parents and parents (my child health   Ã‚  Ã‚  ). In this case, the body fails to produce adequate insulin that controls the sugar levels and the body metabolism. In addition, the fats and saturated fats lead to high levels of cholesterol in the blood. The cholesterol is associated with many heart complications. Such heart problems can lead to increase in major heart diseases. Furthermore, the fats can ale to a condition known as dyslipidemia, which occurs when the LDL levels and triglycerides are abnormally high (Buzzle). These can put the children in a very precarious situation of coronary heart diseases. Some of these fast foods contain excess sodium that is a big contributor of high blood pressure. Increase in the blood pressure can lead to rupture and cracks in the blood vessel walls. The human body uses lipoproteins in repair of these walls converting it into substance that contains cholesterols hence lead to increase in the cholesterol levels ( Eric, 2005). As children, indulge more and more in this fast food, their bodies become deficient of vitamins and iron. This is because most of these foods do not contain such nutrients. They therefore become anemic. This makes them lethargic and get tired so easily. This is because their diets always almost become completely deficient of green vegetables and fresh fruits causing great deficiency of both macro and micro nutrient supplements in their bodies (my child health). The result of this is reduced immunity making the children to become highly susceptible to various diseases and ailments. The body also becomes deficient of calcium that makes their teeth to be very weak, nails and bones brittle. The various preservatives used in these foods may also be carcinogenic. Remedy to fast foods problems It is important to note that there is no such a thing as bad food. Any food can fit into a healthy meal plan. The fast food chains should therefore revamp their menus to respond to the customer’s comments. These has been observed in some restaurants for   example there are those that do not serve food with trans fat, but instead have more fruits and vegetables . According to the CYWH Staff, the following tips can be helpful in setting up a healthy diet. It is advisable to choose boiled foods over fried ones likes the grilled chicken sandwich instead of fried chicken or chicken nuggets. Secondly, one should     choose soups hat are not cream based. This means that if the names of these soups include something like â€Å"creamy tomato soup† or any of that kind, then they should be avoided. The foods should have low –fat salad instead of full–fat salad kind. One should choose low fat milk, or diet sodas instead of regular sodas, fruits drinks, milkshakes, or whole milk.   If you can access fruits and vegetables, they should be added to the meal. For example, have lettuce and tomato on sandwiches or burgers. When one orders for foods like pizza its good to add veggies instead of meat , as well as getting thin crust instead of deep fish. Conclusion Since many researches have clearly established that restaurants selling fast foods have great contribution into the effects of these foods like the obesity, there should be a regulation into their activities. A study by the NBER established that the proximity of these restaurants s to work places and learning institutions have had a big impact into these. For example for pregnant women, having such a restaurant within 0.10 miles increases the probability of gaining 20 kilos during their pregnancy( NBER). As for children, having the restaurants within proximity of 0.25 to 0.50 miles had the same implications. It follows that such restaurants should be away from children. Policies should be laid in place to restrict the availability of fast food in residential areas and schools. References Eric S, Fast Food Nation, Harper Perennial, (2005). Morgan S, (2004), Super Size Me, Movie Reviews Agricultural research service, kid’s fat food and obesity. Accessed on August 2, 2010   Ã‚   from http://www.ars.usda.gov/is/AR/archive/oct09/kids1009.htm Buzzle, Fast Foods and the Child Obesity. Accessed on August 2, 2010 from   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.buzzle.com/articles/fast-food-and-child-obesity.html Milos P. (2010), Are fast food and obesity, accessed on august from  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://ezinearticles.com/?Are-Fast-Food-and-Obesity-Related?&id=357337 Think quest, Welcome to the Real Truth about Fast Foods and Nutrition, Accessed On  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   August 2, 2010 from http://library.thinkquest.org/4485/ My child health, Effects of Fast foods on children, Accessed on August 3, 2010 from  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.mychildhealth.net/effects-of-fast-food-on-children.html NBER, the national bureau of economic research, Accessed on August 3, 2010 from   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   http://www.nber.org/aginghealth/2009no1/w14721.html

Krispy Kreme

Krispy Kreme Doughnuts, Inc. FIN Professor XXX XXXX Month xx, xxxx History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe of yeast-raised doughnuts in 1937 from a French chef in New Orleans. Rudolph began to sell these doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores was born. The retail concept for Krispy Kreme doughnuts allowed Rudolph to grow his factory stores to 29 shops in 12 states by the late 1950’s.When Rudolph died in 973 Beatrice Foods bought his company and expanded it to more than 100 locations and expanded the menu to include soups and sandwiches. Beatrice tried to reduce costs by changing the appearance of the stores and using cheaper ingredients. This negatively affected the company and Beatrice sold the company to a group of franchise owners. This group of owners was led by Joseph McAleer, who was the first Krispy Kreme franchisee. The leveraged buyout was completed for $24 million in 1982. The new group brought back the original recipe and logo.By 1989 the group was almost debt free and they were beginning to expand. The company CEO, Scott Livengood, took the company public in April of 2000. The share price after the first day was $40. 63. Holes in Doughnut Accounting Practices In May of 2004 Krispy Kreme announced to its investors that they should expect earnings to be 10% lower than predicted. It was at this time that the low-carb diet had taken the U. S by storm, and Krispy Kreme blamed this low-carb diet for their low wholesale and retail sales.They also announced the sales of a the Montana Mills bakery chain of 28 bakery cafe’s that had been acquired in January of 2003 for $40 million in stock. Krispy Kreme also announced that the Hot Doughnut and Coffee Shops were falling short of expectations and three of them were closing at a cost o f $7 to $8 million. Krispy Kreme (KKD) stock price closed down 30% that day. Shortly after on May 25th, 2004 when the Wall Street Journal published a story about how Krispy Kreme handled is accounting for franchise acquisitions.According to the article Krispy Kreme recorded the interest paid by the franchisee as interest income for immediate profit, except that Krispy Kreme booked the purchase cost of the franchise as an intangible asset and did not amortize it. In the repurchase agreement of the 7 stores in Michigan, they allowed one of the franchises top executives to stay on with the company after the repurchase. This executive left the company shortly after closing the deal, and had to pay him $5 million in severance which Krispy Kreme also rolled into the unamortized-asset category. Krispy Kreme claimed it followed GAAP standards and had done nothing wrong.The final shoe to drop as on July 29th, 2004 when Krispy Kreme announced that the Securities and Exchange Commission (SEC) had launched an informal investigation related to â€Å"franchise reacquisitions and the company’s previously announced reduction in earning guidance†. Krispy Kreme (KK) shares fell another 15%. The revelations about the companies accounting practices and showing interest as immediate income and not amortizing the repurchased franchises but rather showing them as intangible assets alone could justify the devaluation of their stock price by approx. 45%.Couple their earnings decline and the announcement of store closings and it easily can be justified. Couple that with the fear of the unknown. If Krispy Kreme was treating their interest and reacquired franchises as they were which seems to be blatantly wrong, what else might the SEC find during their investigation? This fear would certainly drive investors away and their share price down. The facts along with its ratings being dropped by 50% of analysts to â€Å"Hold† from â€Å"buy† a few months earlier. K rispy Kreme Deep Fried and Possible Deeper Issues Krispy Kreme grew incredibly quickly in the years leading up to the nvestigation (as shown in the chart below) and then may have tried to meet Wall Street expectations through some questionable practices such as shipping more product or pulling ahead product orders, then allowing the orders to be returned shortly after for credit. â€Å"Testimony by a former sales manager at a Krispy Kreme outlet in Ohio, said a regional manager ordered that retail store customers be sent double orders on the last Friday and Saturday of the 2004 fiscal year, explaining â€Å"that Krispy Kreme wanted to boost the sales for the fiscal year in order to meet Wall Street projections. The witness said the manager explained that the doughnuts would be returned for credit the following week – once fiscal 2005 was under way† (Chin, 2005). It seems pretty clear that Krispy Kreme was using questionable methods to inflate profits. Investors also l ater found out that Scott Livengood (CEO), the former COO John W. Tate, and the former CFO Randy Casstevens, â€Å"unloaded more than 475,000 shares of Krispy Kreme stock for proceeds of $19. 8 Million†, (Chin, 2005) while they were fully aware sales were declining since January of 2003.During this investigation, Scott Livengood, Krispy Kreme’s CEO announced his retirement. It would seem to me that there may be some deeper issues with Krispy Kreme and if I were a shareholder I would want out, or to be certain that Krispy Kreme’s accounting mess was cleaned up. The chart below shows Krispy Kreme’s performance during the years leading up to the investigation. Krispy Kreme Re-made Fresh Today Krispy Kreme’s stock has not fully recovered, (see chart below), but as of the end of 2012 Krispy Kreme seems to have made a comeback. â€Å"Krispy Kreme Doughnuts, Inc. Krispy Kreme) is a retailer and wholesaler of doughnuts complementary beverages and treats a nd packaged sweets. The Company’s principal business is owning and franchising Krispy Kreme stores, at which a variety of doughnuts, including the Company’s Original Glazed doughnut, are sold and distributed together with complementary products, and where a broad array of coffees and other beverages are offered. As of January 29, 2012, there were 234 Krispy Kreme stores operated domestically in 38 states and in the District of Columbia, and there were 460 shops in 20 other countries around the world.Of the 694 total stores, 292 were factory stores and 402 were satellites. The Company operates in four segments: Company Stores, domestic franchise stores, international franchise stores, and the KK Supply Chain† (â€Å"Krispy Kreme Doughnuts†). As of close of business on Friday last week KKD traded at $14. 80, way below its heyday when the stock traded in the $40’s but it is double its all-time low. Krispy Kreme doughnuts (KKD as of March 22, 2013 When compared to its competitors Krispy Kreme’s P/E is 49. 33. This is much higher than the others but its P/S is in the middle.Krispy Kreme’s competitors are listed as Dunkin’ Brands Group, Einstein Noah restaurant Group, and Starbuck Corporation. Below is the direct competitor comparison. Direct Competitor Comparison| | | KKD| DNKN| BAGL| SBUX| Industry| Market Cap:| 989. 57M| 3. 94B| 253. 09M| 42. 99B| 384. 28M| Employees:| N/A| 1,104| 6,912| 160,000| 10. 87K| Qtrly Rev Growth (yoy):| 0. 16| -0. 04| -0. 04| 0. 11| 0. 30| Revenue (ttm): | 435. 84M| 658. 18M| 427. 01M| 13. 66B| 453. 84M| Gross Margin (ttm):| 0. 17| 0. 79| 0. 21| 0. 57| 0. 31| EBITDA (ttm):| 47. 93M| 304. 86M| 48. 46M| 2. 46B| 47. 5M| Operating Margin (ttm): | 0. 09| 0. 38| 0. 07| 0. 14| 0. 07| Net Income (ttm):| 20. 78M| 108. 18M| 12. 74M| 1. 43B| N/A| EPS (ttm):| 0. 30| 0. 93| 0. 74| 1. 86| 0. 78| P/E (ttm):| 49. 33| 39. 95| 20. 01| 30. 87| 29. 99| PEG (5 yr expected):| 1. 02| 1. 58| 0. 98| 1. 43| 1. 50| P/S (ttm):| 2. 24| 5. 96| 0. 59| 3. 13| 1. 04| | | | | Suggestions for a Krisp/Klean Future Making Doughnuts I three things I might suggest if I were the CFO for Krispy Kreme doughnuts would be to insure open communication with investors and insure them that internal auditing systems are in place.I’m sure that investors lost all trust in the previous management because of the questionable practices that were followed. Krispy Kreme needs to rebuild that trust by having open lines of communication with its investors. I would take a serious look at closing unprofitable stores, and research other markets to open more stores. Some areas may still be underperforming while others are booming. Concentrate on the areas that show better potential and take advantage of that market while it is supporting growth. Because their competitors seem to offer expanded menus I would concentrate on healthy choices for the lunchtime crowd.Everyone is aware of Krispy Kreme’s doughnuts, but I’m not so sure their other menu items are well known as an option for lunch/brunch. Other than the morning rush for doughnuts, they could make their stores more profitable with being the †go toâ€Å" spot for lunch also. References Chin, N. (2005). Krispy Kreme Dougnuts: Empty calories or empty profits? Retrieved from http://www. corporateconflicts. com/index-sb-cases-kk. html Krispy kreme doughnuts. (n. d. ). Retrieved from http://www. google. com/finance? client=ob&q=NYSE:KKD Krispy Kreme Krispy Kreme Doughnuts, Inc. FIN Professor XXX XXXX Month xx, xxxx History Krispy Kreme was founded by Vernon Rudolph after he purchased the famous secret recipe of yeast-raised doughnuts in 1937 from a French chef in New Orleans. Rudolph began to sell these doughnuts wholesale to supermarkets. The demand for his doughnuts grew quickly, and by cutting a hole in the wall of the factory to sell directly to customers the concept of Krispy Kreme retail stores was born. The retail concept for Krispy Kreme doughnuts allowed Rudolph to grow his factory stores to 29 shops in 12 states by the late 1950’s.When Rudolph died in 973 Beatrice Foods bought his company and expanded it to more than 100 locations and expanded the menu to include soups and sandwiches. Beatrice tried to reduce costs by changing the appearance of the stores and using cheaper ingredients. This negatively affected the company and Beatrice sold the company to a group of franchise owners. This group of owners was led by Joseph McAleer, who was the first Krispy Kreme franchisee. The leveraged buyout was completed for $24 million in 1982. The new group brought back the original recipe and logo.By 1989 the group was almost debt free and they were beginning to expand. The company CEO, Scott Livengood, took the company public in April of 2000. The share price after the first day was $40. 63. Holes in Doughnut Accounting Practices In May of 2004 Krispy Kreme announced to its investors that they should expect earnings to be 10% lower than predicted. It was at this time that the low-carb diet had taken the U. S by storm, and Krispy Kreme blamed this low-carb diet for their low wholesale and retail sales.They also announced the sales of a the Montana Mills bakery chain of 28 bakery cafe’s that had been acquired in January of 2003 for $40 million in stock. Krispy Kreme also announced that the Hot Doughnut and Coffee Shops were falling short of expectations and three of them were closing at a cost o f $7 to $8 million. Krispy Kreme (KKD) stock price closed down 30% that day. Shortly after on May 25th, 2004 when the Wall Street Journal published a story about how Krispy Kreme handled is accounting for franchise acquisitions.According to the article Krispy Kreme recorded the interest paid by the franchisee as interest income for immediate profit, except that Krispy Kreme booked the purchase cost of the franchise as an intangible asset and did not amortize it. In the repurchase agreement of the 7 stores in Michigan, they allowed one of the franchises top executives to stay on with the company after the repurchase. This executive left the company shortly after closing the deal, and had to pay him $5 million in severance which Krispy Kreme also rolled into the unamortized-asset category. Krispy Kreme claimed it followed GAAP standards and had done nothing wrong.The final shoe to drop as on July 29th, 2004 when Krispy Kreme announced that the Securities and Exchange Commission (SEC) had launched an informal investigation related to â€Å"franchise reacquisitions and the company’s previously announced reduction in earning guidance†. Krispy Kreme (KK) shares fell another 15%. The revelations about the companies accounting practices and showing interest as immediate income and not amortizing the repurchased franchises but rather showing them as intangible assets alone could justify the devaluation of their stock price by approx. 45%.Couple their earnings decline and the announcement of store closings and it easily can be justified. Couple that with the fear of the unknown. If Krispy Kreme was treating their interest and reacquired franchises as they were which seems to be blatantly wrong, what else might the SEC find during their investigation? This fear would certainly drive investors away and their share price down. The facts along with its ratings being dropped by 50% of analysts to â€Å"Hold† from â€Å"buy† a few months earlier. K rispy Kreme Deep Fried and Possible Deeper Issues Krispy Kreme grew incredibly quickly in the years leading up to the nvestigation (as shown in the chart below) and then may have tried to meet Wall Street expectations through some questionable practices such as shipping more product or pulling ahead product orders, then allowing the orders to be returned shortly after for credit. â€Å"Testimony by a former sales manager at a Krispy Kreme outlet in Ohio, said a regional manager ordered that retail store customers be sent double orders on the last Friday and Saturday of the 2004 fiscal year, explaining â€Å"that Krispy Kreme wanted to boost the sales for the fiscal year in order to meet Wall Street projections. The witness said the manager explained that the doughnuts would be returned for credit the following week – once fiscal 2005 was under way† (Chin, 2005). It seems pretty clear that Krispy Kreme was using questionable methods to inflate profits. Investors also l ater found out that Scott Livengood (CEO), the former COO John W. Tate, and the former CFO Randy Casstevens, â€Å"unloaded more than 475,000 shares of Krispy Kreme stock for proceeds of $19. 8 Million†, (Chin, 2005) while they were fully aware sales were declining since January of 2003.During this investigation, Scott Livengood, Krispy Kreme’s CEO announced his retirement. It would seem to me that there may be some deeper issues with Krispy Kreme and if I were a shareholder I would want out, or to be certain that Krispy Kreme’s accounting mess was cleaned up. The chart below shows Krispy Kreme’s performance during the years leading up to the investigation. Krispy Kreme Re-made Fresh Today Krispy Kreme’s stock has not fully recovered, (see chart below), but as of the end of 2012 Krispy Kreme seems to have made a comeback. â€Å"Krispy Kreme Doughnuts, Inc. Krispy Kreme) is a retailer and wholesaler of doughnuts complementary beverages and treats a nd packaged sweets. The Company’s principal business is owning and franchising Krispy Kreme stores, at which a variety of doughnuts, including the Company’s Original Glazed doughnut, are sold and distributed together with complementary products, and where a broad array of coffees and other beverages are offered. As of January 29, 2012, there were 234 Krispy Kreme stores operated domestically in 38 states and in the District of Columbia, and there were 460 shops in 20 other countries around the world.Of the 694 total stores, 292 were factory stores and 402 were satellites. The Company operates in four segments: Company Stores, domestic franchise stores, international franchise stores, and the KK Supply Chain† (â€Å"Krispy Kreme Doughnuts†). As of close of business on Friday last week KKD traded at $14. 80, way below its heyday when the stock traded in the $40’s but it is double its all-time low. Krispy Kreme doughnuts (KKD as of March 22, 2013 When compared to its competitors Krispy Kreme’s P/E is 49. 33. This is much higher than the others but its P/S is in the middle.Krispy Kreme’s competitors are listed as Dunkin’ Brands Group, Einstein Noah restaurant Group, and Starbuck Corporation. Below is the direct competitor comparison. Direct Competitor Comparison| | | KKD| DNKN| BAGL| SBUX| Industry| Market Cap:| 989. 57M| 3. 94B| 253. 09M| 42. 99B| 384. 28M| Employees:| N/A| 1,104| 6,912| 160,000| 10. 87K| Qtrly Rev Growth (yoy):| 0. 16| -0. 04| -0. 04| 0. 11| 0. 30| Revenue (ttm): | 435. 84M| 658. 18M| 427. 01M| 13. 66B| 453. 84M| Gross Margin (ttm):| 0. 17| 0. 79| 0. 21| 0. 57| 0. 31| EBITDA (ttm):| 47. 93M| 304. 86M| 48. 46M| 2. 46B| 47. 5M| Operating Margin (ttm): | 0. 09| 0. 38| 0. 07| 0. 14| 0. 07| Net Income (ttm):| 20. 78M| 108. 18M| 12. 74M| 1. 43B| N/A| EPS (ttm):| 0. 30| 0. 93| 0. 74| 1. 86| 0. 78| P/E (ttm):| 49. 33| 39. 95| 20. 01| 30. 87| 29. 99| PEG (5 yr expected):| 1. 02| 1. 58| 0. 98| 1. 43| 1. 50| P/S (ttm):| 2. 24| 5. 96| 0. 59| 3. 13| 1. 04| | | | | Suggestions for a Krisp/Klean Future Making Doughnuts I three things I might suggest if I were the CFO for Krispy Kreme doughnuts would be to insure open communication with investors and insure them that internal auditing systems are in place.I’m sure that investors lost all trust in the previous management because of the questionable practices that were followed. Krispy Kreme needs to rebuild that trust by having open lines of communication with its investors. I would take a serious look at closing unprofitable stores, and research other markets to open more stores. Some areas may still be underperforming while others are booming. Concentrate on the areas that show better potential and take advantage of that market while it is supporting growth. Because their competitors seem to offer expanded menus I would concentrate on healthy choices for the lunchtime crowd.Everyone is aware of Krispy Kreme’s doughnuts, but I’m not so sure their other menu items are well known as an option for lunch/brunch. Other than the morning rush for doughnuts, they could make their stores more profitable with being the †go toâ€Å" spot for lunch also. References Chin, N. (2005). Krispy Kreme Dougnuts: Empty calories or empty profits? Retrieved from http://www. corporateconflicts. com/index-sb-cases-kk. html Krispy kreme doughnuts. (n. d. ). Retrieved from http://www. google. com/finance? client=ob&q=NYSE:KKD Krispy Kreme INTRODUCTION First, I will discuss the environment of Krispy Kreme and my analysis as to what led to the company’s position in 2004. Second, I will discuss the financial health and current condition based upon the historical income statements and balance sheets. Third, I will discuss the financial ratios in relation to the financial statements. Fourth, I will discuss if Krispy Kreme was financially healthy at the end of 2004. Fifth, I will discuss my assessment of Krispy Kreme’s health and why I think the stock price dropped by 80% between 2003 and 2004.Sixth, I will discuss why I think the market reacted so negatively to the disclosures about adverse results and the revelations in the Wall Street Journal regarding the firm’s accounting methods for the franchise rights. Lastly, I will provide my recommendations for turning around Krispy Kreme Doughnuts’ business. COMPANY POSITION Krispy Kreme Doughnuts started small by selling directly to grocery stores. T heir doughnuts became so popular they began selling directly to customers. They sold a delicious doughnut and a viewing experience.When Beatrice Foods bought the company, her business model did not succeed because it expanded the product line in the opposite direction of what consumers wanted and she inputted cheap ingredients into a popular recipe which sacrificed taste. When she sold the company to the group of franchisees, it pushed the company back into a positive direction by bringing back the original recipe. Krispy Kreme was debt-free by 1989 and their IPO left them with a market capitalization of nearly $500 million in 2000.They appeared to be on the right track but, it seemed they were expanding too rapidly. They allowed franchisees to place their stores in locations that were not favorable, resulting in the franchises not doing well enough and owing Krispy Kreme Doughnuts millions. Krispy Kreme relied on the income from franchised stores purchases of equipment and mixes to o much. They also had their product in too many locations, creating an increase of supply and a decrease in demand. HISTORICAL FINANCIAL STATEMENT ANALYSISOn further analysis of the historical income statement, it seems that Krispy Kreme Doughnuts’ operating expenses are increasing gradually every year and are over 75% of total revenues for each year. The only income statement item that has decreased significantly was interest income from 2002 through 2004. Everything else seemed to point towards a profitably company because both gross profit and net income were increasing by at least 2% every year. On further analysis of the historical balance sheet there we some large red flag items.Property and equipment, net of depreciation was a significant portion of total assets each year. Most of the equipment they created was sold to franchisees and used in each company owned or franchisee owned factory stores. The significant amount on their balance sheet could have meant that they were manufacturing equipment faster than they were selling it to their franchises or due to the fact that they were expecting to expand, but were not able to expand to the extent they wanted to. As a percent of total assets, accounts receivable declined from 17% in 2000 to 7 % in 2004.Inventories were significantly increasing each year, but one would assume that some of their inventory would have to be written of due to the items expiration date (doughnuts can only last so long, so they appear to not be selling as much). Reacquired franchise rights, goodwill and other intangibles significantly increased starting in 2002, and every year after that. It rose in those years to be close to one third (30%) of total assets, which was the biggest item percentage wise other than property and equipment. The most significant item on the liabilities and shareholders’ equity section of the balance sheet is common stock.Every year common stock was close to 50% of total liabilities and shar eholders’ equity. In my opinion, Krispy Kreme Doughnuts, recognized they were in trouble with the increasing failures of franchises and kept issuing more stock in hopes to bail themselves out. FINANCIAL RATIO ANALYSIS In exhibit seven the time series of the ratios raise one specific question. The inventory turnover raises the question as to why it was taking longer for their inventory to sell. When converted to days, the ratio determined that their inventory took over twenty-three days to turnover in 2003.It seems that Krispy Kreme Doughnuts’ inventory was over saturated in the market. With an abundance in supply, it seems that their doughnuts were not as in demand. When comparing Krispy Kreme Doughnuts’ financial ratios to others in the industry, I determined that Krispy Kreme was doing better in some areas than those in the industry such as with their liquidity ratios. Krispy Kreme’s liquidity ratios were significantly higher than any company in its ind ustry. In other areas, such as profitability ratios, Krispy Kreme was about average compared to other companies.Krispy Kreme’s activity ratios were significantly lower than any other company in its industry, meaning their assets are not turning over as much as other companies. In such an industry, product seems to move fast, which further supports my notion that their product was becoming less popular due to the saturated market. It seems a lot more companies in this industry support operations with debt rather than capital, Krispy Kreme was doing the opposite. Exhibit nine supports this position because no other company had a significant amount of shareholders’ equity like Krispy Kreme.Other companies were better able to handle their operating expenses keeping them closer to 50% of net sales, unlike Krispy Kreme who kept theirs closer to 75%, but Krispy Kreme also had a higher percent of net sales in relation to operating profit and profit before taxes. FINANCIALLY HE ALTHY AT YEAR END 2004? In my opinion, Krispy Kreme Doughnuts is not completely healthy at the financial year end of 2004. Their income statement shows an increased net income from the year before, but I believe that increase can only last so long.With the inability to expand further, and current operations decreasing more than they are making, I do not expect their net income to increase by year end 2005. Everything on their balance sheet is increasing, including their inventory. They need to realize that they are simply not selling product. Although their debt is low, that is from the increasing stockholders’ equity in the form of stocks. With the outlook of the company not good, they cannot expect to support their operations with the issuance of new stock. They need to find a new way to finance their operations and ecrease their operating costs. STOCK PRICE DECREASE AND NEGATIVE MARKET REACTION In my opinion investors recognized the same warning signs that I did when analy zing Krispy Kreme Doughnuts’ financial statements and decided to drop their losses while they could still make some kind of profit selling off the stock. When Krispy Kreme announced to investors to expect earnings to be â€Å"10% lower than anticipated, claiming that the recent low-carbohydrate diet trend in the US had hurt wholesale and retail sales,† I think they further expected that something was not right with the picture they were portraying.The Wall Street Journal article, revealed an accounting practice that was not commonly followed by others in Krispy Kreme’s industry. When the SEC launched an informal investigation into the â€Å"franchise reacquisitions,† investors jumped ship as fast as they could. The significant decrease in stock from 2003 to 2004, was investors getting nervous and protecting themselves from their stock being worth near nothing. RECOMMENDATIONS In my opinion Krispy Kreme Doughnuts needs to make radical changes to the way it conducts business.I think they should completely stop off-premise sales, making their product only available in factory stores. This would hopefully decrease their inventory and decrease operating expenses related to the fleet of trucks that deliver product to grocery stores. Selling their product in factory stores only will hopefully recreate the demand for the doughnuts that there once was. I also believe that they should decrease the amount of franchises and refocus to company owned stores.Franchisees might not properly know how to pick a location or be properly trained, as seen with the increase of failing franchises. This would decrease the large amount on their balance sheet from reacquiring franchises. Focusing their business to one or two types of primary sources of income and reducing expenses would be a way to help lower market saturation of their product. Having more company owned factory stores, provides Krispy Kreme a chance to have more control over their operations a nd not depend on franchisees to make a profit for them.