Barbie, If Looks Could Kill

Hannah Mekeel Pg1 Barbie: If Looks Could Kill Almost every American girl desires a Barbie at some point, for the chance to vicariously live her fabulous life. The average girl from ages 3-11 owns upwards of 10 Barbie dolls throughout her childhood, with hours on end spent exploring a Pepto-Bismol colored world, where Barbie has any dream job. For 53 years, Barbie has been an American standard of beautiful. With her leggy, busty figure and unattainable body measurements, neatly wrapped in pink packaging and a sunny disposition, Barbie has had over 80 careers, ranging from the President to a McDonalds’ cashier.When she’s not teaching or fighting fires, she still manages to maintain her Barbie dreamhouse, her body, and her dreamboat of a boyfriend, Ken. In the world of Barbie, a girl can have it all! But not all is sunny in paradise since the emergence of a Barbie backlash, as parents and child development experts begin to see the possible connections between young girls w ho play with Barbie’s and adult woman with body issues or eating disorders. The question becomes; What are these toys teaching young girls about their bodies, their gender, and their role in society? Is the character that has become Barbie a role model for all women can achieve?Or, have Barbie been teaching young girls that the perfect, attractive, and socially valuable woman is thin, always glamorous, always happy, and always silent? Since Barbie was first debut in 1959, she seemed to be a picture perfect role model for middle class, American girls. She was perfectly thin, had a perfect family, perfect hair, perfect car and house. Yet how was this image of a perfect woman affecting the millions of young girls who were playing with her? Some would argue that Barbie’s thin, but busty and hippy figure, instill in young woman an idea of the perfect body, desired by men and envied by other women, Mekeel Pg 2 ll the while, completely unattainable. â€Å"If Barbie were an a ctual woman, she would be 5'9†³ tall, have a 39†³ bust, an 18†³ waist, 33†³ hips and a size 3 shoe,† Slayen wrote in the Huffington . â€Å"She likely would not menstruate†¦ she'd have to walk on all fours due to her proportions. † (Katz). Many women admit they started worrying about their weight when they were between the age of 4 and six years old, and many of the girls who have or had an eating disorder admitted that Barbie played a huge role in influencing their attitudes toward their bodies.Barbie led young girls to believe, if you want Barbie’s fabulous life, you have to also look â€Å"fabulous†. During the formative ages of 4-6, right about the time young girls receive their first Barbie, they really begin to absorb the social standards around them, and the 1961 gem, â€Å"Slumber Party Barbie†, could not have been a positive influence on young girls. â€Å"Slumber Party Barbie† came equipped with a book title d How to Lose Weight , which offered advice like â€Å"don’t eat,† and a bathroom scale permanently set at 110 lbs. Slumber Party Barbie† is something no good parent would expose their young, impressionable daughter to, and something Mattel wouldn’t even attempt 40 years later. Mattel has had its missteps in the last 20 years, putting feminist across the country up in arms with the 1992 flop â€Å"Teen Talk Barbie†, who famously proclaims that â€Å"math class is tough†. Sure, math class is tough, but shouldn’t Barbie be reiterating to girls that math is essential, especially if you want to be just like Barbie and grow up to be a doctor, scientist, astronaut, or whatever you want. Mattel wasted no time silencing their quintessential bimbo following the backlash. Borger). Another major flaw in Barbie portrayed values is her desire for material wealth. Barbie has everything, but it wasn’t always that way. Barbie came from humble b eginnings, dressed like Mekeel Pg 3 a typical white, middle-class female of the 1960’s. She continued to evolve into mod Barbie, disco Barbie, and by the 1980s â€Å"she had the taste of a lottery winner,† says M. G. Lord, author of Forever Barbie. â€Å"At the core of this change is class. † (Borger). Barbie suddenly had a dreamhouse mansion, a convertible sports car, and in more recent years, began wearing designer duds from the likes of Ralph Lauren, Christian Dior, and Bob Mackie.Barbie advocates stress that the problem doesn’t lay in Barbie’s appearance, or even her values, but with our perceptions of a doll. After all, Barbie is an inanimate object, something that living women shouldn’t compare themselves to. If Barbie were real she would likely be divorced from Ken and in debt up to her eyes after remortgaging her dreamhouse, but she’s not real. She is a fantasy, which little boys and girls can use when flexing their imaginatio ns to develop a whole world and life for Barbie, as they would see it. It’s the ability to make Barbie into anything they want that makes her so appealing to children. We are in danger of looking at a child's toy through an adult's microscope and, of course, seeing all the wrong things. To a child she.. never says she can't play with you, always smiles, will accompany her owner everywhere, and never shouts. Onto her can be projected wishes and dreams. †(Russel) Barbie has also taken the form of many positively influential female role models like Jackie Onassis Kennedy or Olympic athletes. Having experienced first-hand, amongst girls my age, the damages of low self-esteem and a poor body image, I find it hard to believe that Barbie has played no role in damaging females.Though a six year old might not process the impact at the time, subconsciously she carries the effects of Barbie’s image with her for the rest of her life, affecting the way she sees Mekeel Pg 4 he rself and women around her. Sure, Barbie encourages young girl to be whatever they want to be, but only if you’re beautiful. With doll collecting being the second most popular hobby, to stamp collecting, and Barbie being a $1. 5 billion dollar industry, she’s not going anywhere soon. It is a parent’s responsibility to choose their children’s toys wisely, considering how it might impact them.If nothing else, parents should be present in their daughters’ lives contextualizing all these images they encounter in the public and in pop culture, and reinforcing a positive body imagine and self-esteem. Mattel continues to make efforts to bring Barbie to a place of more positive realism, but until woman are accurately represented and positive portrayed by gender specific toys, Barbie could be a serious danger to a young girls psyche, giving a new meaning to the phrase â€Å"if looks could kill. †

Emily Dickinson’s poem #371 Essay

Analyzing the poem by discovering how the author used literary elements usually is very essential to understanding the poem’s theme. As one of the significant elements, extended metaphor may convey one of key ideas in poetry. Depending on the poem, extended metaphor may provide the opportunity to reflect on even more deep and hidden, but just as important concepts the author chooses to convey. Similarly, in the poem # 371, Emily Dickinson uses extended metaphor as practically the most essential element to convey her feelings in regard to The Antique Book held as fascinating and exciting volume. Emily Dickinson compares real historical characters to the Antique Book, giving it the qualities of a fine gentleman. It is a â€Å"precious pleasure† to meet such a gentleman who will entice with and tell of his radical but thrilling notions. What must mesmerize Emily in the â€Å"Antique Book† are realistic images of â€Å"the Dress his Century wore,† along with the opportunity of learning about compositions by Shakespeare, Sappho, Sophocles, Plato, to inspect their thoughts in detail, and to understand their contradicted ideas- dreams of the future. Such account of acquaintance, enhanced with the facts of history, is an â€Å"Enchantment.† This sophisticated â€Å"figure† may be dear to the narrator in the same way Beatrice may be to Dante. It is only one of the many reasons why Emily Dickinson would call â€Å"Antique Book† a gentleman-like, where the contents of a volume either entice, reflect, intrigue, puzzle, or fascinate the narrator . The development of this metaphor may be compared with the process of reading and enjoying a book. It can also be seen as an acquaintance with a particular person. As when meeting the â€Å"gentlemen,† the narrator may acquire strong fascination for this â€Å"person.† Fascination of Emily Dickinson may be seen through diction, since it is evidently â€Å"a†¦pleasure†¦to meet and Antique Book.† Further on, it is a â€Å"venerable Hand to take† and later it is â€Å"His quaint opinions- to inspect.† It seems as if the subject begins to fascinate the narrator and thus the conversation begins to be more intriguing. Here, then, â€Å"Old Volume shake their Vellum Heads,† thus tantalizing â€Å"-just so-† The encounter leaves the narrator with only the wish and that is to hear more. Undoubtedly, the same concept can be addressed to  an act of reading a book. The â€Å"acquaintance† is then with an interesting book which on e reads on to inspect its contents over and over, filled with radical but inspiring ideas. It can be said in overall that the point of interest in this poem arises from the first stanza to the last. Such usage of an extended metaphor and also other literary elements is meant to reveal the theme. What especially underlines the extended metaphor and thus helps to reflect narrator’s fascinating and exciting account is the use of allusion, diction, iambic pentameter in the poem, and also such elements as assonance and consonance. Basically, a reference to some of the great people in history is intended to be an aspect of the extended metaphor, which personifies The Antique Book, and is an allusion to the great philosophers, poets, and playwrights. Iambic pentameter is a significant tool because it, though seemingly plain and simple as an element, may convey numerous things, ideas that prosperous elegance is admired. Emily Dickinson also uses â€Å"slant rhyme† that might add to the effect of the poem, created as a bit formal but still a bit irregular. It can produce the same effect a book must produce on the narrator in this poem. In turn, assonance and consonance help to distinguish the key ideas in the poem. Though not many, Emily Dickinson uses consonance to connect the words such as â€Å"theme,† â€Å"mutual† and â€Å"mind.† Also assonance is used in words â€Å"venerable Hand to take,† repeating the vowel sound to emphasize, especially, the privilege behind this act. Referring to all the literary elements Emily Dickinson uses, it must be that otherwise understanding of the poem may have become convoluted. Consequently the poem thoroughly can be analyzed to trace the elements essential to the theme. It is very important to use such elements where poem may otherwise be seen pointless. In the poem #371, Emily Dickinson effectively reflects on her feelings thus enabling the poem to be intriguing, as the book is to the narrator. It may be true that Emily, as an author, gets her ideas, such a strange at the time and a curious at others embodied in a poetic form, from the sort of â€Å"Old Volume† as the one described in the poem. If so, this correlation may help suggest a message of a broader issue reflected in this poem.

Auditing for Good Analytical Research

The accounting methodology is as old as most of our basic mathematics that we practice in our daily life. Its importance has played a key role in the financial industry ever since the era of banking industry had commenced. From the past till today accounting is often reflected as auditing for a huge amount of ransom, assets and any other entity which add value to an individual or organization.   With the heavy involvement of the financial industry, thus, it is essential for accounting to integrated policies, standards, protocols and other ethics to have better control of practices with high integrity which classifies into a single term, internal control. Referring to the above quote, the author`s view of internal accounting control may seem to provide more favourable arguments rather than against. But no ideology can be perfect. Firstly, this essay will contribute a fair illustration of the relationship between strong accounting system and legal practices. Then, the importance of t he existence of internal controls. Lastly, it will instigate the beneficial and loosing arguments of internal accounting controls referring to the best practice preferred by the organization. Internal control can be described as a process through which the organizations are able to coordinate the activities and put a bar on the fraudulent activities by the management, as well as the employees (KSU, 2016). For an effective planning, as well as control it is essential to have a well-defined internal control mechanism that will trace the deficiencies and bring transparency in the working. The element of internal control is assessed during the planning stage of the audit of a financial statement (Gilbert et. al, 2005). The outcome of the impact is directly in tune to the auditor’s stage of testing in detail.   To lessen detailed testing, the organization needs to have a strong system of an internal control. Internal controls are part and parcel of organization policies that pertains to finance and business. It comprises of all the actions undertaken by the management for the safeguard of the resources in terms of waste, fraud, and efficiency (KSU, 2016). Secondly, it helps in bringing accuracy, as well as reliability in accounting and operation of data. Thirdly, it enables a strong compliance with the regulations set by the organization (Hoffelder, 2012). Lastly, it helps in assessment of the performance of all the units of the organization. Internal control is simply a good practice that steers the business in an ethical manner. The internal control system is put into practice by the management or the ones who are entrusted with the duty of ensuring strong governance. It ensures that the compliance is done in terms of rules and regulations (Schaeffer, 2006). Moreover, it leads to efficiency in terms of operational efficiency. This can be possible when the internal control system is put into implementation through elements or subsystems and are termed as the components of an internal control system. It has five major components: This simply means a well-equipped environment of the entity where the operations of the business happen. A controlled environment enables strong control and keeps the wrong practices at bay. For example, if the organization is authentic and strict towards the false practices then the employees will fear in any kind of falsehood. This will ensure commitment and keep the fraud away (Manoharan, 2011).   Moreover, an auditor needs to have a proper understanding of the environment and determine whether it is implemented by the management and the behavior. One of the major roles of internal control is to trace and rectify the misstatements. Further, it needs to be noted that management will not wait for the happening of the misstatement rather it will find a measure to detect and correct it (Ingram, 2016). The entity develops the process of risk assessment that helps in identification of the material misstatement (ACCA, 2016). The auditor obtains a clear notion of how the process of risk evaluation process is working and whether it is shedding light on the risks that are expected, the influence of such a risk, an event of happening of such a risk and decision that pertains to such a risk (Harrington, 2003). Information has assumed a vital place in the space of business environment. When an audit engagement happens, an auditor adds to his understanding of the information, as well as a system of communication that is one of the elements of the accounting system (Ingram, 2016).   But, it is not always alike as the accounting system. It I described as the system through which the management develops a link with the internal and external environment. Controls are mechanisms that are implemented by the management to ensure that the financial information is reliable. An apt example is that of the debtors that cannot be written off without the consent of the finance director or any other relevant person. In a similar scenario, credit sales cannot be done until a recommendation is taken from the credit control department (Schaeffer, 2006). Such activities do not constitute authorization.   A need to enter the password in certain modules of an information system is a classic example of the information system. The last element of an internal control system is the process of monitoring. It can be treated as a service that is inbuilt to the system of internal control and evaluates the skills of an internal control system. The process of monitoring is done by evaluating the internal control operation that pertains to the current period and assessments that are separate in nature that includes routine and non-routine checks (Christensen, 2011). Such an evaluation requires external information like the feedback of the customer. Hence, the ones who are entrusted with the responsibility of governance take an appropriate step so that any risk or material misstatement is warded off with ease and flexibility. Internal control system will lessen the amount of audit work and this will have a positive impact because the auditors will be able to use system based audit that will enhance the level of audit work. Moreover, the presence of a strong internal control mechanism reduces the chances of frauds, as well as errors and will bring new supervision (ACCA, 2016). This will accelerate custody and the third party liability will be minimized bringing a great deal of speed and accuracy. Secondly, internal control lessens the audit evidence that needs to be produced as it enhances the audit evidence to be present within the business. This helps to frame a view that leads to speed and evidence (ACCA, 2016). Moreover, the presence of this control system solidifies the audit evidence that needs to be gathered. It reduces the work overload and reduces the time that is needed to prepare a report (Kruger, 2015). Last but not the least it provides a strong internal function that enables the auditor to focus more on the problem and facilitate the work. Further, it facilitates the company’s assets. The presence of internal control might lead to error and fraud because at times the major reliance is on the strength of internal control and this exposes the auditor to the liabilities that is civil in nature. Secondly, the presence of internal control lessens the volume of scrutiny that needs to be done by the auditor leading to smaller samples hence, leaving another area prone to fraud and problems.   Collusion, as well as manipulation might lead to mismanagement and hence, a biased report might occur. Further, the vigilance of an auditor is reduced owing to the internal control and hence, impacts the audit quality. It has the chances of being abused by the internal auditor through collision with the management. Gamers Den is situated in Cambridge (United States) and has a huge selection of games. It is strongly involved in providing an environment that is safe and friendly for the community at large. People can come and play their favourite games. The availability of a dedicated area makes it one of the best places to be in. Many events are even conducted that that attracts and accommodates various players. This keeps the store busy. Further, the presence of less number of employees makes it less complicated. The current internal control mechanism of the gamer den is straightforward. Two game designers are involved in the process that is designed, as well as promotion. On the other hand, two main assistants are present that is Phil and Amy and another employee is ELLA. The policies that the company follows are weak in terms of an internal control. During the hours of business, an amount of less than 50$ can be withdrawn from the cash register. Credit sales are available with a defined time period and according to the customer comfort that is weak in nature. Further, a single cash register is present that lacks all the entries and physical stock counting I unavailable. Moreover, a problem with the physical counting of the stock has appeared. Therefore, cash is collected and remains in the office till a person deposits it to a bank. Further staffs have an access to borrow iPad, laptops, etc. and there is no trace of the current items. A strong system that needs to be developed for Gamers Den will require a proper number of stuff. When the number of employees will be more, the work responsibility will be divided that will lessen the pressure (Lapsley, 2012). Further, the internal control must be structured in a manner that will lead to proper allocation of person who can shoulder the responsibility. In the present system, there is no availability of financial records and information lacks reliability. The accounting control will be a boon to the business. The system of accounting control will help the organization in many ways (Kaplan, 2011). The system of inventory will be maintained in a proper manner, before the issue of stock the authorization and approval will be needed. Further, budgetary control will aid the organization that will enhance the profit with the sales volume. The review of assets will be easier and hence, variances can be traced. The above report provides a clear cut indication that internal control is vital in the smooth running of the organization. It leads to a strong control over the activities that is not witnessed in an organization that lacks internal control. Therefore, internal control brings a wide variety of advantages that helps in steering the business. This leads to a strong momentum and helps the organization as a whole. When internal control is into practice it leads to an enhanced level of accountability and responsibility. ACCA 2016, Audit working papers, viewed 15 October 2016 https://www.accaglobal.com/in/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/effective-audit-service.html ACCA 2016, The new Auditor report, viewed 15 October 2016 https://www.accaglobal.com/in/en/student/exam-support-resources/fundamentals-exams-study-resources/f8/technical-articles/auditor-report.html ACCA 2016, F8 Audit and Assurance aims and update, viewed 15 October 2016   https://www.accaglobal.com/ie/en/student/exam-support-resources/fundamentals-exams-study-resources/f8.html Christensen, J. 2011, ‘Good analytical research,’ European Accounting Review, vol. 20, no. 1, pp. 41-51 Gilbert, W. Joseph J and Terry J. E 2005, The Use of Control Self-Assessment by Independent Auditors, The CPA Journal, vol.3, pp. 66-92 Harrington N 2003,   Risk Management & Insurance, McGraw- Hill Education (I) Ltd. Hoffelder, K 2012, New Audit Standard Encourages More Talking, Harvard Press. Ingram, D 2016, What Are the Seven Internal Control Procedures in Accounting?, viewed 15 October, 2016, https://smallbusiness.chron.com/seven-internal-control-procedures-accounting-76070.html Kaplan, R.S. 2011, Accounting scholarship that advances professional knowledge and practice, The Accounting Review, vol. 86, no. 2, pp.   367–383. Kruger, P 2015, Corporate goodness and shareholder wealth, Journal of Financial economics, pp. 304-329 KSU 2016, Internal Audit, viewed 15 October 2016 https://www.k-state.edu/internalaudit/internal-controls/ Lapsley, I. 2012, Commentary: Financial Accountability & Management, Qualitative Research in Accounting & Management, vol. 9, no. 3, pp. 291-292. Manoharan, T.N. 2011, Financial Statement Fraud and Corporate Governance,   The George Washington University. Schaeffer,M 2006, Internal control breakdown study, viewed 15 October 2016 https://www.aicpastore.com/Content/media/PRODUCER_CONTENT/Newsletters/Articles_2009/CorpFin/IntControls_Breakdown.jsp Getting academic assistance from

Scholarship essay Example | Topics and Well Written Essays - 250 words - 4

Scholarship Essay Example ld involve taking up courses in specialized areas as in Economics, Finance, and Business Administration, I could project how dear costs may get in meeting the essential requirements of the chosen business program. Still, I would like to express fervent inclination and desire to be facilitated with adequate scholastic resources and flexible support of all forms once entitled by the scholarship privilege through the University of Texas at Dallas. With a GPA of 3.96, I am quite capable of applying mathematical and analytical comprehension having been engaged in tutoring Math on several fields of discipline involving business and science to fellow college students. There was even a period when the versatility of my knowledge was put to test when I handled tutorials in Chemistry, Physics, and Statistics besides the pre-Calculus requisites. This bundle of experiences as a well-rounded tutor and student majoring in business course at the same time has all the more taught me the essence of education, the impact of the quality of teaching, and the profound value in human relations. In the process, I learned about the significance of investment as viewed from a non-monetary context. To this extent, thus, I can gradually ascertain which subject matters are amply worthwhile to keep and which ones to leave behind as I seek pertinent directions toward academic ends. For this ground, I pledge to make the most of scholarship acquisition w hich I am looking forward to be granted during the Spring of 2012 at the University of Texas at

Accounting Evaluation And Forecast Essay Example | Topics and Well Written Essays - 2250 words

Accounting Evaluation And Forecast - Essay Example Carter and Usry mentioned that â€Å"In Reality, planning and controlling are simultaneous, cannot be separated, and an interconnected process†. Within this elaboration we will evaluate performance of the â€Å"Aberdare - Super Service Mini Market† and furthermore describe Income Statement and Balance sheet forecast for planning purposes. According to the financial ratios, Aberdare posses an overall weaker performance, compare to the Pernarth mini market. The only ratios that exceed Pernart mini market are sales/operating assets ratio and the interest cover ratio. The sales/operating assets ratios present a slight lead on Aberdare’s effectiveness on using its operating assets to produce sale, while the interest cover ratio display Aberdare’s better performance on taking advantage of debts to finance operations. However, financial ratios should not be used as a sole instrument of measuring performance. According to available data, Aberdare’s sales in 2004 are amounted to $ 1,250,000 and the operating profit is $ 217,000. This has a relatively significant difference compare to Pernarth mini market, which produce a sales number of only $ 1,000,000 and operating profit of $ 190,000. Thus, in actual numbers, Aberdare mini market contributes more income to the business. Pernarth According to the financial ratio, Pernarth is overall better than Aberdare mini market. The ratios indicated that pernarth has a better performance in terms of: 1. Effectiveness of operation, displayed by the Operating Profit/Operating Assets ratio, Sales/Fixed Assets ratio, and Sales/Current Assets ratio. These ratios describe that Pernarth uses its assets more effectively to produce sales and profit. 2. Efficiency of operation, displayed by the Operating Profit/Sales ratio, Cost of Sales/Sales ratio, Sales/Stock ratio, Expenses/Sales ratio, and Sales/Stock ratio. These ratios describe that Pernarth's require less cost and expenses to produce equal sales number and profits compare to Aberdare's. 3. Liquidity of the mini market, displayed by the Interest Cover ratio, Gearing ratio, Current ratio, and Quick ratio. There ratios describe that Pernarth mini market require less debts compare to Aberdare mini market to run the business. II.2. Weaknesses Aberdare As stated before, compare to Pernarth, Aberdare mini market display a slightly poorer performance. Most of the ratios display only small difference between the two store, however, significant different appears on Sales/Current Asset ratio, Sales/Stock ratio, Interest cover, Gearing and Quick ratio. The Interest Cover and Gearing ratio indicate that Aberdare has too much debt within its financial structure. The Sales/Current Assets ratio, Sales/Stock ratio and Quick ratio on the other hand, describe that the mini market employ too much current asset on the current year, especially too much stock. Pernarth The mini market is superior according to any measurement of the financial ratios, however, in real numbers, the mini market does not seem to generate as much sales and profit as Aberdare. Thus, relating to the fact that Pernarth is the most profitable

Experience of Illness and Disability Essay Example | Topics and Well Written Essays - 3750 words

Experience of Illness and Disability - Essay Example It also includes the behavioral responses, health care seeking, and receptivity to and adherence to the treatment of pain. Current research indicates that rheumatoid arthritis is a highly complex problem and involves sociological, economic and psychological variables, in addition to the traditional medical components. Pat, aged 46, attends a private clinic for pain relief. Pat comes from a simple family background. When he became a teen-ager, he left for the City of London to seek work in order to send money home. In London, he married Kate, who is also of Irish descent. He worked as a postman in London for twenty years. He raised his family in rented rooms with their two children. He had to work hard and he mostly did over-time work in order to support his family. Finally, the couple built their own home with the help of Kate's dad. He had felt the first sensations of pain during that time which persisted up to the present. He had chronic back pain. So he began taking ibuprofen and he carried on with this work. Then when the Mail Department was reorganized, he moved to a desk job. That was when the bouts got more frequent and painful. His doctor, a general practitioner told him that he had been carrying his post-bag wrong all those years. His doctor kept giving him repeat prescriptions for paink illers and he kept complaining they didn't work. He started taking ibuprofen, a painkiller drug. Then he started having days off at a stretch, so he could undergo some tests. Since all the tests of the doctor were inconclusive, he sought the help of an osteopath. The osteopath was professional and put him through a lot of painful manipulations but he seemed to lose interest after a while. His officemates complained about his time off from work. Kate and his kids were very sympathetic. He goes to see a psychologist who believes that his pain is real. He is comforted when the psychologist affirmed his pain.Pat's narrative is important to his recovery. By uncovering a means of interpreting the illness, he can re-establish the relationship between himself, the world and his body. (Williams, 1984). The narrative reconstruction is focused on gaining meaning and import to the illness by placing it within the context of one's own life and to reconstruct the narrative of the self (Frank, 199 5). Drawing up a narrative of one's chronic illness within the framework of one's own life history makes it possible to give meaning to events that have disrupted and changed the course of one's life (Williams, 1984). When individuals are unable to achieve this, identity issues remain unresolved. The ways in which illness effects self-change has been explored through narratives (Frank, 1995). There are three types of illness narratives: restitution, chaos and quest. Restitution involves seeking to return to the former self, chaos depicts an inability to interpret and make sense of the illness and quest, seeking to achieve a new self that draws on the experience of having suffered. In this case study, Pat's narrative reflects the restitution type where he seeks to return to his former self. Identity reconstruction takes the premise that loss of self is a fundamental consequence of chronic illness. Pat aspires to see the end of his pain. In the last few paragraphs of his narrative, he states that after the acupuncture, daily massage from Kate and a dram of whiskey, he is able to sleep well and face a

Managing People For A Competitive Advantage Essay - 1

Managing People For A Competitive Advantage - Essay Example Every company aims at getting more than their implementation cost and diversity is a very powerful tool which ensures the same when implemented by an organization, this is the only reason why more and more organizations are implementing workforce diversity in their organization. More and more organizations are investing huge amounts of money in workforce diversity in order to keep pace with the customer requirements and customer satisfaction. Workforce diversity often plays an instrumental role in satisfying the needs of a customer. Diversity also provides good social value to an organization and this is another reason why it is implemented. Diversity workforce is pivotal in the success of a company when considered from a perspective of long run; it generates constant cash flow which in turn satisfies the shareholders of a company. This whole process is extremely important for any organization looking to expand or for that matter looking to sustain its growth. Workforce diversity has also become a legal requirement these days, companies have to stick to a policy of non discrimination and recruiting people from diverse backgrounds also satisfies the legal requirements of an organization. Diversity focuses upon the maximum utilization of the resources, the labor market has changed completely these days, it is no longer dominated by the whites, the talent available is huge and if discrimination takes place in an organization it would lead to devastation so implementation of diversity also satisfies a company’s resource requirements. By recruiting people from diverse backgrounds an organization makes sure that no discrimination takes place and the organization utilizes the resources at hand to the maximum extent possible. It is extremely important as a... This essay sheds light upon recruitment and how recruit affects workforce directly, several real life examples are also used in this essay to prove certain very important points. The essay also discusses several important concepts like recruitment, managing workforce effectively, managing a diverse workforce and its several advantages. Recruitment and workforce are very closely connected, workforce diversity is one very good thing, when employees who come from different backgrounds are selected, the organization prospers and this is how they become diverse but when there is no diversity, the organization has little or no options whatsoever. Everything starts from recruitment; this important point has been highlighted throughout the paper, organizations these days are keen on cutting the dead wood out but all those organizations hardly realize that keeping those employees for all these years has hardly done any good to them, the profits automatically come down. The researcher of the e ssay also shed light upon the importance of a diverse workforce, employees who are recruited should be recruited by managers who themselves are from diverse backgrounds and this should go on for several years until the organization reaps healthy rewards generated by this healthy practice. To conclude it is very fair to say that recruitment is arguably the most important step, the next important step is to manage a diverse workforce and to optimize the workforce to ensure that the organization attains all its set targets.

The fourth amendment and NYPD Surveillance Essay

The fourth amendment and NYPD Surveillance - Essay Example Surveillance has also included such activities as monitoring websites frequented by Muslim students. A reason used by the NYPD has included permeation of Muslim communities in New York by extremist Muslims. The premise of this paper is to study the various facets of this surveillance, its benefits, and its criticisms and counter criticisms. In addition, this paper also discusses whether NYPD Surveillance has failed to uphold the U.S. constitution, particularly the fourth amendment. Since terrorists attacked New York on September 11th of 2001, the most aggressive intelligence agency, at least domestically, has been the NYPD (Tutt, 2012). The Demographics unit, a secret unit formed by the NYPD, has sent officers in ordinary clothes, mostly of Arab descent, into Muslim populated neighbourhoods to catalogue Muslim congregations in grocery stores, restaurants, travel agencies & also to photograph their places of worship. These officers acted via spying on businesses, eavesdropping on conv ersations, all the while filing reports daily on the various ethnic backgrounds of clientele, owners, and whatever they happened to overhear (Tutt, 2012). This program was based on no criminal activity neither did it stop at the boundaries of New York City. The goal revolved around the complete comprehension of communities professing Islam in New York, as well as around it. Their aim was to identify problematic areas explicitly, while working to prevent any further attacks. Student organizations formed by Muslims were not spared either, including their prayer groups. Names of professors and students were included by the officers in their files, even where no criminal allegations could be defined. Those allies of Islam who had supported mayor Bloomberg in denouncing of terrorism were themselves also victims of this NYPD monitoring (Tutt, 2012). Muslims who changed names to sound more American, or took on names that sounded more Arabic, were catalogued in the secret police files. Lice nse plate numbers at mosques were photographed and recorded, with their occupants pictured and filmed as they arrived for worship. Inside the mosques, undercover officials and informants aided the police in building files on sermons, even those that were irrelevant and innocuous (Tutt, 2012). The surveillance was kept under wraps for a long while, aided in no small part by the secrecy surrounding the unit. This secrecy was crucial for the uninterrupted work carried out by the NYPD. The â€Å"scandal† only came to light through the exposes printed by the associated press, which shocked the Muslim community, not only in New York, but also around the country & the world. There was an outpouring of anger, with hundreds of protesters gathering outside Fordham Law School to protest a speech by the commissioner of police, Raymond Kelly, where he was defending the controversial operation (Press, A, 2012). Numerous articles in various news papers also criticized the NYPD for what they called new age racism. Criticism of the NYPD surveillance has been savage and unrelenting. The white paper, authored by the NYPD, titled Radicalization in the West: the Home Grown Threat, was recently exposed and has been especially ravaged by columnists (Tutt, 2012). Some of its criticism has to do with perceived myths that are believed to have constituted the basis for the entire counter-terrorism philosophy, which

Personal Finance Essay Example | Topics and Well Written Essays - 750 words - 1

Personal Finance - Essay Example The raising of the state pension age to 68 by 2048 will generally make individuals look for other income and pension alternatives which will sustain them since the current retirement age is 65. Thus, for the three years after the retirement, they will need to find a way in order to finance the lifestyle that they choose. In this case, it is expected that individuals will be opting to compensate their state pension by occupational and personal pension in order to bridge the gap. Personal pensions are more likely noting the fact that the package of benefits under this scheme is based on the discretion of individuals. Other people can also opt to find employment even after the retirement age. This is especially true noting the fact that there are some individuals who augment their pensions by retaining their jobs. Having an employment before the retirement is the most probable action that individuals will take especially those who cannot afford to purchase additional pension scheme. Inc reasing the age at which the pension plan will be received also means that the state will be paying pensioners three years less than what is previously practiced. For pensioners this can mean that lower priced packages will be made available since the expected payment time is now shorter. The establishment of a low-cost pension scheme which is coupled with automatic enrolment will allow more individuals to avail of these packages.

Epidemly and biostat Assignment Example | Topics and Well Written Essays - 750 words

Epidemly and biostat - Assignment Example Calculate: Q6. What is the annual incidence rate (per 1,000 persons) of lung cancer, if it is diagnosed in 70 patients per year within a community of 30,000 unaffected individuals? (Please show your calculations) [ONE POINT] Q7. Colon cancer is diagnosed in 20 patients per year within a community of 10,000 unaffected individuals. Half of the affected individuals die from colon cancer. What is the case fatality of colon cancer in this community? (Please show your calculations) [ONE POINT] Q8. Breast cancer is diagnosed in 20 patients per year within a community of 10,000 unaffected individuals. A screening test is applied to all residents of this community. What is the sensitivity (in %) of the screening test, if it detects 9 of the breast cancers. What is the specificity if the test correctly determines that 9,900 of the unaffected persons do not have breast cancer? (Please show your calculations) Q9. A physical examination and an audiometric test were given to 500 persons with suspected hearing problems, of whom 400 were actually found to have them. The results of the examinations were as follows: C. The occurrence of illnesses of similar nature clearly in excess of the normal expectation for that population at that time (this helps in vigorous management of the disease at that time to prevent its spread) Sensitivity is the ability of the test to correctly identify those individuals who have the disease. False negative is when testing equipment provides a negative result in a patient who has the disease (Gordis, 2009). Example: a glucometer may show high level of glucose in a newly diagnosed Diabetic patient this is called sensitivity, while in the glucometer can show low blood glucose in a patient with high blood sugars. Specificity is the ability of a test to correctly identify those individuals who have no disease, while false positive is when

Tourism Essay Example for Free

Tourism Essay An ‘issue’ is a topic for discussion and debate – something which is viewed differently by different people. Its effects spread far and wide and, although many people have their viewpoints, there seem to be no simple solutions or remedies. Many issues come to prominence through speciï ¬ c events. The 9/11 al-Qaeda attack in 2001, for example, was one such event,  or the London bombings of July 2005. It is important that you distinguish between such events and the underlying issue – terrorism. The factors affecting the travel and tourism industry may be political or they may be inï ¬â€šuenced by worldwide economic developments, or they may be climatic, or even tectonic, such as witnessed by the tsunami disaster in 2004, which claimed the lives of around 300,000 people. This disaster, along with climatic phenomena such as hurricanes will be discussed, together with the broader issue of global warming and how this will affect the industry now and in the future. Advances in the ICT industry are having a profound effect on all our lives and some of these issues will be investigated, particularly the emergence of e-tourism which is leading to changes in the structure of the travel and tourism industry. For some organisations in the industry, globalisation appears to be the most proï ¬ table solution, and we study the growth of the global conglomerates which are starting to appear, from hotel chains to tour operators. The increasing number of acts of terrorism, such and those in New York, Bali, Madrid, Egypt and London – and the constant fear in many other areas – are investigated. But it is not just what humanity will do to itself that is a threat to travel and tourism – it is also the spread of diseases, such as SARS and avian ï ¬â€šu, and how this threat affects people’s attitudes to travel that we will cover in this unit. It is clear that international relations can have a positive or negative effect on travel and tourism. Wars have an immediate adverse effect, and may limit tourism in an area for decades – as has happened in the Middle East. Political stability can only help the ï ¬â€šow of tourists – as shown by the growing numbers of travellers who have chosen to holiday in America or Australia over the last few decades. Many people in the world’s less developed countries (LDCs) are often dependent on tourism for their livelihoods, so anyth ing that affects the industry can have dramatic effect on them. Areas of Africa and South America, as well the Far East will be examined in this unit. The Industry Focus is an interview with David Harris – a typical world traveller – who shares his opinions on many  of the current issues in travel and tourism.

Factors That Affecting Elasticity Of Supply Economics Essay

Factors That Affecting Elasticity Of Supply Economics Essay According to (HASHIM ALI,1999, page 40),price elasticity of supply is basically means the responsiveness of the quantity supplied due to a change in price. The factors that affecting elasticity of supply are whether the product is perishable or not. In other words, if the product is perishable, therefore when there is change in price, it wont affect the quantity supplied. Hence, the supply is inelastic For example: fruits, it is because fruits are perishable. The second determinant is the time. There are two time of time which are the short run and the long run. In the short run, the supply will be inelastic. Its because, the supplier cant increase the supply of a product immediately due to a change in price. Where by in the long run, suppliers are able to increase their product, because they have more time to produce more. And therefore the supply is elastic. For example: in the short run, the price of the laptop increase in the market price. However, the supplier of laptop cant increase their supply immediately due to a short run. In the long run, the supplier have more time to produce more laptop due to more time to produce laptop. PART B Businesses can use price elasticity to decide on their pricing strategy. By using the price elasticity, they can know whether the goods that they are selling is elastic or inelastic. If the good that they are selling is inelastic, for example: necessities, therefore they can set a higher price. It is because if the good is inelastic, the change in price wont effect the change in demand. In other words, consumers are not that responsive due to a change in price. And if the good is elastic, such as luxuries goods or goods that have several substitutes, therefore the supplier cant set a high price. It is because the price is elastic, in other words the consumers are responsive due to a change in price of the good. Thats how the business use the elasticity concept to decide the pricing strategy. Question 3 PART A Supply of a product will increases caused by the technology are getting more advance. As technology has increases, therefore to produce a good will be easier and faster, hence to higher supply of that particular product. For example: a textile company used to produce their goods by manually (by human or workers) and they manage to produce 100pcs of the good per month. In the future, as the technology increases, the quantity of the good produced increases to 300pcs each month.. hence the supply of the good increases. Second reason that might affect the supply of a good will increase is the intervention from the government by giving subsidies to the suppliers. By giving subsidies to the suppliers, it tends to reduce their cost of production. Therefore, higher profit will earned and motivate the suppliers to supply more of the good. For example: a cost of production to produce a good is RM500, the company manage to sell at RM550 each good and earned RM50 for profit this is before any subsidies from government. After a while, the government decided to give subsidies to the business. Hence, the cost of production of the good decreases to RM450. the business still sell the product for RM550 but now, RM100 is earned for the profit. Therefore, the higher the profit, will motivate the supplier to supply more. Third reason that will increase a supply of a product is the price of the good it self. When the price of the good increases in the market, therefore the supplier motivated because no they can earn more revenues and get higher profit compared to before the price increased. For example: the price of a chair was RM100 in 2009 and the supplier of the chair supply at 100 quantities and earn RM10,000 revenues. In 2010, the price if the chair has increases to RM120. now while the price increased, the supplier will definitely increase their quantity supplied of chair maybe to 130(or more) and they can get RM15,600 revenues which is much more compared to the previous quantity.(HASHIM ALI,1999,PAGE 37) PART B Price floor is a price that set by the government above the equilibrium price and the price set b the suppliers are not legal if they set lower than the price the set by the government.. its actually to help those suppliers to get higher income. Because of the price of the good is higher now, and therefore the supplier will produce more. However, at the end, the demand for the good will decrease and therefore, surplus occur. This is how its effect the rationing function of prices and distort resource allocation. The graph below will shows the surplus caused by the price floor. Quantity Price D S Equilibrium price P0 Q0 Qd Pf surplus Qs 0 The graph above shows that when there is price floor set by the government, the demand will stop until Qd and there fore surplus occur. Hence this occur, supplier cant manage to sell all their product, and therefore, black market will occur(sell lower price illegally). Whereby price ceilings is also price that set by the government. Its the maximum price that seller can charge to consumers. Lower than the price ceiling is legal and otherwise is not. The objectives of government by doing this is to help those consumers that cant afford to buy their essential good. The graph below will shows the price ceiling. S D Equilibrium price Q0 P0 Quantity Price Qs Qd Pc shortage 0 The graph above shows that when there is a price ceiling(Pc) set by the government, the price is under the equilibrium price. in other words, the price is cheap at the moment. however, because of the price has reduced, the suppliers will feel that its not profitable and therefore they are not motivated to produce more. Therefore the quantity supply stops at Qs. Hence, lack of supply and high demand due to a shortage.(McConnell,2009,page 59-62) Question 6 PART A Consumer surplus is basically means its benefit for the consumers, as they are able to pay higher price for a particular good, but in fact the actual price is lower than what they willing to pay. In other words, the consumers are able to pay above the equilibrium price. For example: john willing to buy a sport shoes at RM200, whereby the actual price of the sport shoes is RM150, and there fore RM200-RM150= RM50 is johns surplus as consumer. The graph below will show where is the consumer surplus: D Equilibrium point Q0 P0 Consumers surplus Quantity demanded For good Z Price for good Z The graph above shows the consumer surplus at the triangle shape where The actual price is at P0, and even though the price is suppose to be at P0,the consumers are willing to pay above the P0 which is higher and therefore, consumers surplus occur. Producer surplus is actually a benefit to the producer of a particular good to earn more than what they plan to earn. For example: suppose to be good A is at RM5 in market price, but john only plan to sell good A for only RM3(has cover the cost of production). therefore RM5-RM3=RM2 is johns producer surplus as an producer. S Price for good Z Quantity supply for good Z Producer surplus Equilibrium price = P0 Q0 P0 The graph above shows that the producer surplus is actually under the equilibrium price which means the producers are willing to sell at lower price but in fact, the equilibrium price for good Z is at P0, and therefore, the producers surplus occur.(McConnell,2009,page 126-127). PART B According to(HASHIM ALI,1999, page 2-3) basically there are three economic concepts. Which are scarcity, choice and opportunity cost. Where as the PPF or production possibilities frontier is to shows a possible combination with in two goods. The PPF graph below will explain the 3 economic concepts. Laptop Sugar 0 10 7 5 3 2 1 1 2 3 5 6 7 A B C D E FBasically, scarcity means there are unlimited wants and limited resources. And to explain this concept by using this Production Possibilities Frontier(PPF), the graph shows that it is impossible to actually produce 7 sugar and 10 laptop. because when 7 sugar is produced there is only 1 laptop can be produced and its caused by the limited resources. Which at the end will bring to a choice. Choice means, the consumer will to chose to have more on sugar or laptop. if they want more sugar, lesser laptop they will get and otherwise. Due to this the third concept will occur where by opportunity cost means something has to be forgone in order to get the best alternative. For example, in this graph, if the consumers want to get 6 of sugar not 5, there fore he/she has to forgone 1 laptop in order to get 6 sugar. The forgone 1 laptop is the opportunity cost. Question 5 PART A A decrease in demand will SHIFT the demand curve to the left, there are several factors that will decrease the demand. Taste and fashion, a change in income, changes in population, changes in price of related goods(either complementary goods or substitutes goods), increase of advertisements, introduction of new product, social and economic conditions, festive seasons, speculation. Price of good A D0 D1Quantity demanded for good A The graph above shows the decrease in demand. The demand curve SHIFTED to the left from D0 to D1 and it is caused by the factors that mentioned earlier. Where as the decrease in quantity demanded will caused the MOVEMENT along the demand curve to move upward which means not a shift. The ONLY factor that will move the demand curve upward is the price of the good it self. Quantity demanded for good A Price for good A D0 B A Q0 Q1 0 P0 P1 The graph above shows that when there is a decrease in quantity demanded, this is ONLY caused by the PRICE of good A has increased from P0 to P1 therefore caused the quantity demanded to decreased from Q0 to Q1 as well as the movement upward from point A to point B. The ONLY factor that due to this movement along the demand curve is the PRICE of the good it self. (HASHIM ALI,1999, page 22-25) PART B According to (HASLIM ALI, 1999, page 32) Income elasticity of demand basically means the measure of the responsiveness of demand in a particular good due to a change in income of the consumers. the income elasticity of demand is measured by percentage. Here is the formula to calculate income elasticity of demand: income elasticity of demand: the change in quantity demanded over the change in income of the consumers. = Q1-Q0 x 100( change in quantity demanded) Q0 ______(over) Y1-Y0 - x 100(change in income of the consumers) Y0 Keys: Q1( new quantity demanded) Q2(original quantity demanded) Y1(new income of consumers) Y0(original income of consumers) There are 3 degrees or responses of income elasticity: 1.positive 2.negative 3.zero The positive degree of income elasticity of demand can be describe more or classified into 3 more parts: elastic (YED or income elastic of demand is > 1), unit(YED=1), and inelastic(YED

Hyundai Motor Company | Marketing Essay

Hyundai Motor Company | Marketing Essay Established in 1967, Hyundai Motor Company has sustained, grown and become the worlds fourth largest automaker in terms of units sold. Automobile manufacturing industry is in the maturity stage and exposed to a lot of difficulties. To survive and develop, the company needs to identify and develop key factors of success such as innovation, technology development, quality improvement, and customer service; associated with cutting costs and diversify products. Moreover, the company needs to take into account the characteristic of forces driving industry competition on the way to success. To sustain competitive, Hyundai needs to maximize its strengths that include advanced technology, valuable branding experience, qualified labor force, cost efficiency, marketing flexibility and experiences. On the other hand, Hyundai also has to minimize weaknesses that are cultural differences, commodity price risk, late entrant, diversity and currency fluctuation. In addition, there are some opportunities for Hyundai to take advantages consist of new segment of hybrid car, governmental support, buyers emphasis on low cost design, competitors weakness and potential market. While avoid threats that comprise global economic crisis, new entrants, low market growth, environmental requirement and political instability. Hyundai must consider strategy for short, intermediate and long term. Firstly, to minimize adverse impact of global economic crisis, company should reduce costs expenses. Secondly, Hyundai should take advantage of core strengths as advanced technology such as eco-friendly energy to comply with environmental issues. Lastly, the company should target into potential markets from developing countries. In addition, it is important to improve the structure, system and policy. Continuous decentralization of management structures and the strategy of diversification should be applied associated with new system to enhance the availability of back-end data, improving customer service and lowered system management costs. Finally, hiring policy and global environmental management policy should be applied to bring Hyundai to success. (309 words) Brief of company: Since its establishment in 1967, Hyundai Motor Company has grown into one of Koreas most recognizable and trusted firms. Today, Hyundai stand the worlds fourth largest automaker in terms of units sold and one of the Big Asian. Hyundai Motor is operating globally and provides diverse product portfolio supported by its 6,000 sales points and 23 overseas manufacturing plants and distributors in 180 countries worldwide. The total revenue of company has recorded as 31 December 2008 is US$35,053,637 thousand and return on investment is 3.38%. Reason for selecting: From the beginning to recent time, Hyundai has made significant inroads in building its brand from the Worst Car Ever Made to a 72nd ranking in the 2007 Best Global Brand survey. Public perception of the Hyundai brand has been transformed as a result of dramatic improvements in the quality of Hyundai vehicles which are sold with reasonable price. While others competitors are facing with losses and struggling with economic downturn, Hyundai still make profit and has come up impressively as a phenomenon in automobile industry. Main strategic issues facing the company: Coping with climate change and complying with regulations on CO2 emissions. Decreasing environmental impact and promoting recycling. Difficult economic environment that restricts number of car consumers and high oil prices. Companys contribution to the National Economy: As of December 2008, automobile industry which is vital to Korean manufacturing industry, accounted for 14.4% in production, 13.4% in export, and 14.3% in employment. Hyundai has created 56,204 employees in South Korea and contribute about 70% to Korean automobile industry and 5.4 % to Koreas GDP. Companys contribution to the regional economy: There are 22,066 overseas employees under Hyundai Motor Company, comprise of 6,956 employees in North America, 5,101 employees in China, 5,457 employees in India, 4,694 employees in Europe and 218 in other countries. Recent strategic dilemma: In applying of Blue Strategy, some of its eco-friendly cars were developed to meet environmental regulations set by European Union, the performance of vehicle is meant to deteriorate when he carbon dioxide emission is reduced, it lessen Hyundais products competitiveness as compared to its rivals. Recent strategic choice: Hyundai is taking approach toward increasing quantitative growth through global in combination with quality and brand management to enhance global competitiveness and further raising sales results. Hyundai applies strategy of Green Management by plan of Blue Drive as the key toward sustainability approach and to comply with regulation on emission issue. Source of Information on Company Hyundai Motor Annual Report http://worldwide.hyundai.com/ (375 Words) Industry life cycle Time Automobile manufacturing industry Industry output Introduction Growth Maturity Decline Automobile manufacturing industry is in the maturity stage of the industry life cycle. In this period, the industry does not grow as much as last 5 or 6 years. The market is very competitive, many manufacturer offering their products, the producers continue with the product differentiation in many segments and hence, the market result in saturation with many manufacturers offering many models of the product. In this stage, only the best efficient and effective company survives. There are about 806 million cars and light truck on the road in 2007, the number is increasing rapidly especially in China and India. The biggest market currently is in North America which is about 250 million vehicles, following are Asia and Europe market. In 2009, with stable economic growth, China is going to become the largest automobile producer and market in the world. The automobile industry crisis and oil shock in 2008 is a part of global financial recession. It affected Asian and Europe automobile manufacturers but it is primarily felt in American automobile manufacturing industry. With rapidly rising oil price, automobile industry is experiencing high pricing pressure from raw material costs and changes in consumer buying habits. Also, there is an increase in external competition from public transport sectors and consumers are re-evaluating their private vehicle usage. Moreover, the social expectation and related concerns regarding carbon emissions had lead to the restricted standard setting that automakers have to be fulfil in order to penetrate into these high requirement markets. In addition, customers now are seeking a car with higher quality demand, more functional and price is crucial factor. In combination with the challenging economic environment, the companies strategy has to be more effective, innovative, cost reduction as well as making product differentiation and improve customer services. Also, automobile companies have to implement more creative marketing strategies to lure consumers as most of them are experienced decline in sales.The response to climate change may have a greater impact on the automobile manufacturing industry than all the other factors. It leads automaker to develop toward green technology and alternative fuel and material to lessen impact of automobile industry to environment. Key factors of success (KFS) The factors listed above are some of the most important factors that company needs to achieve in order to be successful in the industry. Nowadays, Toyota is the most successful company in automobile industry because they achieve key factors successfully. Among all factors, innovation is the most important factor contributes to the success of company. In contrast, Nissan had average performance. Hyundai is in the middle, growing stably and strikingly. As we see from above, the total weighted score of Toyota is highest, following is Hyundai then Nissan. Among all of the factors, technology is the most important as automobile industry is under pressure of high competition and the issue of climate change. Technology is not simply satisfying customers with a simple car, it need to bring a car with more functions, more model and technological. Also, technology needs to enable the company to develop car in combination with new material and fuel. Leading technology with above average rating of 4.5 enables Toyota to be more successful than Hyundai and Nissan. Innovation is second important factor that lead to the success of company. As customers concern more about the appearance of the car, more innovative is needed. New models are required to have more impressive design and that will help company to gain market share and increasing sales value. In term of innovation, Hyundai has launch new models with remarkable improvement of design that is more attractive to the customers over the past few years. It helps Hyundai gaining more market share in compare with less innovative Toyota and Nissan. So the company need to keep up this advantage, more skilled workers are needed and necessitate of a breakthrough idea. In addition, Quality and safety is one of important factor that customers always bear in mind when making buying decision. Hyundai has done it well since the past few years. They receive good signs from customers perception of companys brand that is improvement of quality safety. Price is crucial factor; an impressive design only attracts customers if it comes with reasonable price. Thereby, company always need to develop strategy toward cost reduction. Company should have diversity of product to compete with others and to enjoy economy of scale and scope. To be more successful in improving brand of company, not only design, quality and price but also customer service needs to get betters. Customers want a good after-sale service that they can rely on. Company has to take these factors as a basis in combination with economic situation to develop suitable strategy in order to grow successfully and stably. Threat of new entrants: Sluggish state of economy Requirement of high RD and fixed cost Difficulty in accessing to distribution channels Few newer with low competition Relative power of other stakeholder Internal stakeholders: shareholders, management, employees and creditors External stakeholders: government, partner firms, clients and potential investor Provide feedbacks opinion Force Driving Industry Competition Suppliers Other stakeholders Buyers Substitutes Industry competitors Rivalry among existing firm Rivalry among existing firm Rivalry among existing firm: Highly competitive of technologies, costs and services High number of competitors Diversity of products Slow growth, high fixed cost Threat of substitute: The cost of automobiles and environmental issues lead to many transportation options Bargaining power of buyers: Price sensitive Require improvement of quality. Nice design better service requirement Impact of cars to health and environment Need for alternative fuel Potential Entrants Bargaining power of suppliers: The automobile supply business is quite fragmented Suppliers have little responsibility Rivalry among existing firms (High) Hyundai dominates the Korean automobile market and has low domestic rivalry. However, in global competition, rivalry among existing firms is high. Rival companies compete on prices, quality and customer service; a company watches very carefully every movement of rivals in order to adapt appropriately. There are high numbers of competitors and they diversify into many market segments. Company earns lower profit when cost of competition is high. To be more successful, Hyundai has to keep working their competitive advantages, launching strategy to reduce cost, better service to suit with this sluggish economic condition, keeping up with developing of new design, quality and especially looking answer for technology toward Green Environment that I predict it will be a crucial factor in near future. Threat of new entrants (Low) Automobile industry is highly capital and labour intensive, it require very high fixed cost as well as RD, so threat of new entrants is low. It is not easy to enter automobile industry and it is harder since the economy downturn is happened that decrease the demand of customer. Brand loyalty of customer is also an obstacle; there are wide choices for customer. Moreover, the requirement of innovation, technology and product diversification makes it more difficult to enter the market. Established in 1967, Hyundai has a long time experience and enjoying benefit of economies of scale through operation all over the world so new entrants are not a pressure for a company. Bargaining power of buyers (High) The bargaining power of buyers is high. The manufacturers depend on them to stay in business. Buyers purchase a significant proportion of output. If manufacturers cannot keep their buyers satisfied then they will lose their buyers to competitors. Nowadays, there are various brand and models that buyers can choose, buyers have many choices so that their requirements are high. The factors that affect buyers to make buying decision are: the design, quality, price and environmental effect. Especially, current time is under economic recession and climate change issues, decrease in buyers demand and their consideration of impact on environment creates more pressure on company. Threat of substitute products or services (Low) It is true that there are many of transportation that can be a substitution of an automobile such as bus, train, bicycle, motorbike, etc. Substitute products depend on geographical location. In some cities such as Singapore, New York, having a car is not necessary because those cities has good infrastructure of public transportation and there are policy to reduce number of car in order to reduce heavy traffic, avoid traffic jam and protect environment. However, the need of automobile is always great. Developing countries are potential market and the need in those countries is getting greater. Bargaining power of suppliers (Low) Hyundai had a good supply chain management system and had long relationship with suppliers. Suppliers have little power in automobile industry because there are numerous component suppliers that help company to avoid shortage of material and selecting suppliers with lower cost. Automobile companies work to maintain cost strategies so that suppliers must compete on price with one another to acquire contracts with them. Since it is very competitive among number of suppliers, an automobile company could easily switch to other supplier along with high requirement of price and quality. Relative power of other stakeholders (Medium) The internal stakeholders of Hyundai include the shareholders, management, employees and creditors. The external stakeholder of the company is the government, partner firms, clients and potential investors. Internal stakeholders help company to apply strategy in proper way while external stakeholders helping with feedbacks, opinions and require responsibility of company. As the company is very large, it has great effects to stakeholders. In response to them, company develops strategy of Blue Drive that represents commitment to develop environmental-friendly vehicle along with enhancing basic features of products. Internal Factor Analysis Summary (IFAS Table) Strengths Hyundai has core strength of innovative technology and becomes a leader in developing environment friendly technology to compete in the recent time when the impact of cars to environment are highly concerned and high requirement of buyers on innovation, quality and design. Along with innovative technology, Hyundai is well managed on costs and expenses that enable company to compete on price with its rivals; it is such a significant advantage especially in this economic downturn condition. Qualified labour force helps Hyundai to gain competitive advantage, manage and operate company effectively. Hyundai has strong corporate philosophy that focus on customer first, flexible marketing strategy and rich experience of producing car for export market. Finally, its value of global branding experience is raising that enable Hyundai gaining more market shares. Weaknesses On the other hand, there are some weaknesses that need to be taken into consideration. Drawbacks occur due to differences between national and business cultures. For example, the national culture of Korea is collective while it is highly individualist in America. Hyundai commodity price risks arise from changing price effect of inputs such as steel, glass, plastics and rubber. As a global company, Hyundai is also exposed to the risks related to fluctuations of currencies in countries where company doing manufacture. When making buying decision, customers seek information and feedbacks from previous buyers; late enter into market means lesser information and feedback, hence provide drawback. Finally, Hyundai has limited ability in adding new models in order to diversify products and compete in many automobile segments, especially in luxury automobile segment. External Factor Analysis Summary (EFAS Table): Opportunities Strong research development and advanced technology leading in producing car in hybrid segment enable Hyundai to take advantage to expand market share and gain more profits. As high tax contributor, Hyundai enjoy governmental supported policy in domestic market, thus enjoy less competitiveness from competitors and spreads its wings to enfold domestic market. Sluggish economic condition makes buyers focus more on low cost design in which Hyundai has reputation of improvement of quality design associated with lower cost of products as compare to other competitors. Moreover, crisis of key rival Toyota on quality create big opportunity to Hyundai focusing on quality improvement and reputation. The company should put more emphasis on potential markets from developing countries provide promising opportunity for the company to expand and gaining profit in the future. Threats On the other hand, the company is facing with some threats indicated above. Global economic crisis and oil price shock have adverse impact to automobile manufacturing industry as well as the Hyundai, reducing investment and raising cost of fuel and raw materials. Also, the brake on worldwide auto demand has created low growth market, decrease sales and profits. More pressure of competition when there are some new entrants enter into market, targeting into some specific segments and acquire market share portion. Additionally, environmental requirement puts more pressure to the company to technological change toward eco-friendly energy. Finally, economic implication of political instability increases transaction costs and insurance cost associated with security and flow of capital, goods between many countries. Strategic Factor Analysis Summary (SFAS) Matrix: Short term The global economic crisis and oil shock affect the company in short term. It put brakes on automobile demand, increasing cost of fuel and raw materials, reducing investment and RD cost while putting pressure on cutting price of products hence require strategy of the company toward reducing operating expenses and workforce. In this situation, well manage costs and expenses become the core strength of Hyundai in competing with other competitors and attracting more customers. In addition, the crisis of key competitor as broken top-quality image creates opportunity to Hyundai by launching campaign focusing more on quality improvement, gaining reputation and boost sales value. Intermediate term Hyundai can take advantage of advanced technology in intermediate term as well as in the long term. Advanced technology is core competency of company to compete on quality and functions of products that are more interested from customers nowadays. Late enter into automobile manufacturing industry making less information and feedbacks of Hyundai products so that the company need to launch strategy of marketing brand value, raising level of perception of customers. Furthermore, potential markets from developing countries should be considered and prepared in intermediate term in order to expand business and gain market share. Long term Environmental effect is the most concern of all people and society and it affects all industry, not just automobile manufacturing industry. Therefore, advanced technology toward eco-friendly energy is the most concern of the company in long term as well. Not only improving quality, design and function of products but also company needs to put more emphasis on reducing impact of car to environment as a means of sharpening its competitive advantage. Moreover, the company should be able to create more new models to compete with competitors especially in luxury and hybrid car segments which are less competitive areas but very profitable areas. Similarly, targeting into potential market from developing countries should be considered for long term strategies as they have such a lot of potential demands and providing valuable source of profitability. TOWS Matrix Internal Factors External (IFAS) Factors (EFAS) Strengths (S) S1 Advanced technology S2 Branding experience S3 Qualified labour force S4 Cost efficiency S5 Flexibility marketing experiences Weaknesses (W) W1 Cultural difference W2 Commodity price risk W3 Late entrant W4 Diversity W5 Currency fluctuation Opportunities (O) O1 Hybrid car segment O2 Governmental support O3 High emphasis of buyers on low cost design O4 Competitors weakness O5 Potential market from developing countries SO strategies Focus on research and development Build up strong brand image. Expand business to potential market WO strategies Set up more distribution channels plants Globalization Innovative products Threats (T) T1 Global economic crisis T2 New entrants T3 Low market growth T4 Environmental requirement T5 Political instability ST strategies Use eco-friendly fuel Cutting costs expenses Focus on marketing and public relation WT strategies Increase advertisement Reduce ineffective distributor to minimize costs Improve market research SO strategies To strengthen companys survival ability, company need to use its own strengths to take advantages of opportunities. Firstly, Hyundai should focus on research and development to reach out the potential hybrid car segment trend by taking advantages of its own advanced technology. Furthermore, Hyundai needs to know the competitors and how they operate, as well as exploit their weakness. For example, exploit weakness of Toyota that has been facing a crisis of quality. With flexibility marketing and organisational experience, Hyundai may identify the problems and avoid same mistakes that can be made; hence building up new and strong brand images associated with lower price. With a branding experience and qualified labour force, Hyundai may gain a large market share from these potential markets. WO strategies To take advantages of opportunities to overcome weaknesses, Hyundai can set up more distribution channels and plants in new markets and segments. One of Hyundais weaknesses is the lacking competitiveness in luxury car segment. Thereby, strategy which should be applied here is globalization; they may aim to export their products to developing countries, where customers mostly have an average income that put high emphasis on low price design and willing to purchase an affordable car instead of a luxury car. Moreover, late entrance to the market can be covered by the appearance of innovative products, which are hybrid car segment which Hyundai has focused and developed. ST strategies Company always faces various threats from both internal and external factors. There is a need to cover the threats using companys own strength. Nowadays, environmental requirements from customers are getting higher since they are starting to concern about health care and impact of cars to environment. By using their advanced technology, Hyundai should develop technology toward eco-friendly energy such as bio-diesel, liquefied petroleum gas and electric energy to combine their engines and social expectation. By making advantages of cost efficiency, Hyundai may cover their low market growth; however they have to manage their capital and expenses wisely and effectively. New entrant is always a big threat facing a company. However, by having a good brand experience and flexible marketing, Hyundai can surpass their competitors by focusing on marketing and public relations to gain more market share. WT strategies There are some strategies Hyundai may use to minimize weaknesses and avoid threats. Firstly, global economic crisis has affected many industries and companies, Hyundai is not the exception. Under economic crisis, minimize unnecessary and ineffectively costs plays an important role to maintain company business. At the same time, company should increase advertisements to gain more reputation and build up their brand images. Last but not least, Hyundai should do more market research if they are planning to expand their business to other countries, in order to avoid unwanted political instability and cultural differences. Review of strategic options available to company: There are several strategic options which are currently available for the success of Hyundai. Firstly, Hyundai should focus on short term strategies, such as operational efficiency program and globalization. The company is facing a low market growth compared with their competitors due to late entrant to the market. Hence they need to manage their capital and expenses effectively by cutting all unnecessary costs, operating expenses and other utilities costs. Moreover, globalization strategy should be concerned to gain more market share from potential market in developing countries. However, they need to be aware of the cultural differences and political instabilities which may occur during the plan. On the other hand, Hyundai must concentrate on long term strategies. Nowadays, the hybrid car segment has become the new trend in automobile market. Thus research and development department should be improved to reach the potential market trend, based on its existing advanced technology. From the improvement of RD department, a new innovative product may appear to distinguish Hyundai from other companies. Furthermore, health care and impact of cars to environment are being concerned by customers. Hyundai need to come up with new green and eco-friendly fuel such as bio-diesel, liquefied petroleum gas and electric energy to follow the trend. Recommend for future direction: For future direction, Hyundai should pay attention to improve their brand images, by running more marketing programs such as offering loyal customers reward system and new advertisement campaign. These advertisements should be located at all available media which are being concerned by public, like newspaper, television, radio and over the internet. They need to learn useful strategies from their competitors as well. One way to the success is to increasing more options of products along with improving online ordering services. Hyundai may also offer more options available to customers through online service to maximize their customers satisfaction. Assessment of companys performance: Efficiency Despite sluggish domestic sales amid the global economic downturn, Hyundai Motor expanded its global market share last year and the 2009 net profit was an all-time annual high. Hyundai had achieved 2.96 trillion won ($2.57 billion) in 2009, compared with a net profit of 1.44 trillion won in 2008. In 2009, Hyundai sold a record 3.1 million vehicles, up 11.7 percent from 2008. In 2008, Hyundai has jumped up to fifth in the global standing of the worlds largest automobile manufacturers. However, latest sales figures in 2009 that place Hyundai to the worlds fourth largest automaker in terms of units sold. Effectiveness: Hyundai has implemented many strategies to increase companys effectiveness. Hyundai is seeking reductions of as much as 20% in consideration of supplier, volume and parts involved. The company is cutting costs not only by rationalizing its domestic plants, but also more and more by manufacturing in areas with lower production costs in oversea countries. As a result, company completed a 3 trillion won ($2.2 billion) cost-reduction program in 2008. Possessing about $7.1 billion in assets including Hyundai Motor share, Hyundai is very aggressive in spending as RD and marketing. In general, Hyundai is implementing its strategies effectively. Return on investment: Hyundai has raised its global share in recent years, even as it has maintained a stable position in Korea and well balanced market portfolio and currency settlement. However, in 2009, there are some decreases in term of return on investment due to the negative impacts of sluggish economic condition. Total dividend payout was KRW235.7 billion, down 14.6% from the previous year. However dividend payout level was maintained at the 16%. Hyundai enjoyed a rise in market share as the result of innovative marketing and successful launch of new models. In the first three months, the companys global market share rose to 4.7%, compared to 4% a year earlier. The company is expected to continue its success along with improved performance in key markets. Recommendations for Implementation of Strategies Structure The current economy is under sluggish condition that requires the company to make judgements and a need of improving organizational structure. Companys structure needs to work toward operational efficiency in association with quality and technological improvement. Continuous decentralization of management structures and the strategy of diversification of output helped the company in coping with economic crisis. Hyundai needs to establish RD centres to take advantage of research infrastructure, so that the company can develop its products to satisfy the requirements of the environmental and safety regulations effectively. System Hyundai is multinational automobile manufacturing company; customers demand high-quality, customized services and they also look for different types of information when mak

Relationship Issues Essay -- International Relations, Japan, South Kor

Different arguments and disagreements between countries can be found throughout our history on this Earth. A relationship that is lesser known is the relationship between Japan and South Korea. Japan and South Korea are two countries that are trapped by their past. Although the two countries are slightly similar when it comes to manners,but they are also very different in cultures and beliefs. Different cultures and beliefs are not the only reason that is keeping them apart though. Japan and South Korea have a long history. A history of colonial rule and lack of trust in Japan, South Korea chooses not to ally itself with Japan. Although the two countries have been working on stabilizing their relationship, they still need to overcome some issues. Japan and South Korea's unstable relationship could be improved by sharing their cultures more or through a military alliance. Japan and South Korea's relationship is known as a "quasialliance" (Cooney 9). The two countries are both allies with the United States, but Japan and South Korea still remain unallied to each other. Japan and South Korea still maintain in an unstable relationship. Although the two countries do not physically fight, they do not associate with each other much. South Korea holds little trust in Japan and its people because of their past relationship. The relationship between the two countries started with Japan's colonial rule over South Korea that lasted for thirty-five years and ended in the year 1945. Korean citizens protest and claim that Japan and its citizens do not acknowledge how cruel the colonial rule was . Even Japanese school books do not go into detail about the colonial rule. South Korea and its citizens claim that the text does not justify ... ...a could become a threat to Japan's East Asia leadership (Cooney 7). Japan leads East Asia in business. South Korea has great potential, in Asia, to become a leading role. The idea of South Korea becoming the leading role frightens Japan. Japan and South Korea have also had disputes over ownership. Disputes could carry on even if the two become allies. Japan and South Korea can become allies. The process may take some time but eventually the two countries will be able to see eye to eye. They may become allies through the culture the two already share with one another, or maybe they could become allies economically through the business relationship they have. North Korea and the United States might even play a role in the two countries becoming allies. Whatever the reason, Japan and South Korea can become allies. The possibilities for both countries are amazing.

The Enlightenment :: European Europe History

The Enlightenment The Enlightenment is a name given by historians to an intellectual movement that was predominant in the Western world during the 18th century. Strongly influenced by the rise of modern science and by the aftermath of the long religious conflict that followed the Reformation, the thinkers of the Enlightenment (called philosophes in France) were committed to secular views based on reason or human understanding only, which they hoped would provide a basis for beneficial changes affecting every area of life and thought. The more extreme and radical philosophes-Denis Diderot, Claude Adrien Helvetius, Baron d'Holbach, the Marquis de Condorcet, and Julien Offroy de La Mettrie (1709-51)--advocated a philosophical rationalism deriving its methods from science and natural philosophy that would replace religion as the means of knowing nature and destiny of humanity; these men were materialists, pantheists, or atheists. Other enlightened thinkers, such as Pierre Bayle, Voltaire, David Hume, Jean Le Rond D'alembert, and Immanuel Kant, opposed fanaticism, but were either agnostic or left room for some kind of religious faith. All of the philosophes saw themselves as continuing the work of the great 17th century pioneers-Francis Bacon, Galileo, Descartes, Leibnitz, Isaac Newton, and John Locke-who had developed fruitful methods of rational and empirical inquiry and had demonstrated the possibility of a world remade by the application of knowledge for human benefit. The philosophes believed that science could reveal nature as it truly is and show how it could be controlled and manipulated. This belief provided an incentive to extend scientific methods into every field of inquiry, thus laying the groundwork for the development of the modern social sciences. The enlightened understanding of human nature was one that emphasized the right to self-expression and human fulfillment, the right to think freely and express one's views publicly without censorship or fear of repression. Voltaire admired the freedom he found in England and fostered the spread of English ideas on the Continent. He and his followers opposed the intolerance of the established Christian churches of their day, as well as the European governments that controlled and suppressed dissenting opinions. For example, the social disease which Pangloss caught from Paquette was traced to a "very learned Franciscan" and later to a Jesuit. Also, Candide reminisces that his passion for Cunegonde first developed at a Mass. More conservative enlightened thinkers, concerned primarily with efficiency and administrative order, favored the "enlightened despotism" of such monarchs as Emperor Joseph II, Frederick II of Prussia, and Catherine II of Russia.

The Controversy Surrounding Multiple Personality Disorder Essay

The Controversy Surrounding Multiple Personality Disorder Multiple Personality Disorder is a condition that many people probably have not heard of. Among those who have heard of it, there are even less who actually know what it is. However, according to Piper (1997) there were about 6,000 cases diagnosed in North America alone in 1986. Some experts estimate that multiple personality disorder, or MPD, affects 5 to 10 percent of the population, or about 100 million people worldwide. For such a widespread disorder, the public's lack of knowledge about it is pretty shocking. One explanation for this lack of knowledge could be the fact that many people, fueled by the beliefs of many noted psychologists, do not believe the disorder even exists. Why do they believe this? To answer this question, one must first understand a little more about MPD itself. Although there is no clear, universally accepted definition of multiple personality disorder, one interpretation that most seem to agree on was stated by Piper: "Multiple personality disorder (MPD) is characterized by the presence of 'alter personalities' that periodically and unpredictably take control of the patient's body" (pg. xii). All who have been diagnosed with MPD have shown evidence of one or more alter personalities aside from the host personality. The 'host' is usually described as the personality that is in control the largest amount of time, or the personality that presents itself for treatment. This may sound confusing, but it is nothing compared to the many other aspects of MPD, such as what a personality is, what causes the onset of MPD, whether or not someone really has MPD, and what treatment methods are effective-all of which will be discussed. In ... ...tml False Memory Syndrome Foundation Compilation: Dr. Bennett Braun. (1995, September 1). Retrieved March 11, 2004 from http://www.fmsfonline.org/braun.html Hendrickson, G (2001, July 3). psychotherapy. Retrieved March 26, 2004 from http://health.discovery.com/diseasesandcond/encyclopedia/3092.html McHugh, P. Multiple Personality Disorder (Dissociative Identity Disorder). Retrieved March 11, 2004 from http://www.psycom.net/mchugh.html Piper, A. (1997). Hoax and Reality: The Bizarre World of Multiple Personality Disorder. Northvale, NJ: J. Aronson Reyes, A. (2001, July 2). multiple personality disorder. Retrieved March 10, 2004 from http://health.discovery.com/diseasesandcond/encyclopedia/2909.html Richmond, R. Multiple Personality Disorder/Dissociative Identity Disorder. (2003). Retrieved March 12, 2004 from http://www.guidetopsychology.com/mpd.htm

Generation Gap Essay

Generation gap can be defined as an opposed division between younger people and older ones. It can be perceived in cultural as well as political fields of society nowadays. Nevertheless, the differences may begin to be bridged in diverse ways within those main fields. On one hand, the existence of clear contrasts between generations as language, fashion and art values may be easily appreciated in the Media, even the streets with graffiti and all kind of artistic works. What are well known among youngsters are the wide variety of codes they are able to create and manage, like the linguistic codes; the clothes they choose to design and wear and even the music they play and listen to, which are changing constantly in order to make adult people feel away from their own matters. In addition, it seems that revolution is an irreplaceable subject kept alive by young people exclusively. What they think is that their ideas are the best ones for he World’s welfare, especially in the political and social fields. On the other hand, this distance between generations has existed since Ancient times when the elder people ruled all the societies and they were respected and even worshipped in several cases like the Greek and Romans civilizations. It seems that at present times, old people are sent to places of retirement and it may difficult and in the worst situation, impossible to participate in society decisions at all. Nevertheless, what Globalization cannot change nowadays are values. They have never been altered like love, solidarity, wisdom and common sense and they would be thought as bridges between distant generations. In conclusion, the generation gap may produce some misunderstandings in numerous senses whereas it will exist as part of evolution of human beings. However, it would seem to be a challenge to create new bridges to connect both sides through common cultural and political devices.

Marketing Metrics Answers

Metrics Mastery Worksheets are designed to be in class exercises that your students can work on in class. This is a master document that provides all worksheets questions and answers. You can modify or change it as needed in order to prepare one page two sided exercises for your students to hand out in class. You can also easily turn the answers into powerpoint slides to review the answers in class. Table of Contents Worksheet: Metric 1 Expense Types2 Worksheet: Metric 2 Percentage Change5 Worksheet: Metric 3 Market Share & Market Analytics8 Worksheet: Metric 4 Contribution Margin11Worksheet: Metric 5 Mark-up & Margin14 Worksheet: Metric 6 Pricing Wholesale to Retail17 Worksheet: Metric 7 Break-Even20 Worksheet: Metric 8 Return on Marketing Investment (ROMI)23 Worksheet: Metric 1 Expense Types 1) The Comfy Chair Company makes reclining chairs at its plant and sells them exclusively through its own retail store. It has the following expenses: Plant rent and taxes = $12,000. 00 Office and management expenses = $220,000. 00 Machinery and equipment purchased = $100,000. 00 Direct materials = $27. 00/chair Direct labour = 4 hours/chair @ $14. 00/hour Transportation = $5. 0/chair Commercial store front unit purchase = $500,000. 00 Advertising costs = $100,000. 00 Sales staff wages before commissions = $250,000. 00 Commission = $12. 00/chair a) Identify the Comfy Chair Company’s variable costs. b) What is the total cost to produce and sell each reclining chair? c) Identify the Comfy Chair Company’s fixed costs. d) What are the total fixed costs? e) Identify the one-time fixed costs incurred by the Comfy Chair Company. f) What are the total one-time fixed costs? Answer: (a)Direct materials = $27. 00/chair Direct labour = 4 hours/chair @ $14. 0/hour Transportation = $5. 00/chair Commission = $12. 00/chair (b)$100. 00/chair (c)Plant rent and taxes = $12,000. 00 Office and management expenses = $220,000. 00 Advertising costs = $100,000. 00 Sales staff wages = $250,000. 00 (d)$582,000. 00 (e)Machinery and equipment purchased = $100,000. 00 Commercial store front unit = $500,000. 00 (f)$600,000. 00 2) Thompson Toiletries, Inc. has developed an addition to its mens’ cologne line tentatively branded Ode d’Toad Cologne. It costs 45 cents to produce each 60mL bottle, and heavy advertising expenditures in the first year would cost $900,000.Ode d’Toad Cologne is priced at $7. 50 for a 60mL bottle. a) What is the variable cost per unit to produce a bottle of Ode d’Toad? b) What are the total fixed costs to produce and sell Ode d’Toad? Answer: (a)Variable cost per unit = $0. 45 (b)Total fixed costs = $900,000 3) Executives of Radical Recordings Ltd. produced an album entitled Sunshine/Moonshine by the Starshine Sisters Band. The cost and price information was as follows: |Album cover |$1. 00 | |Songwriter’s royalties |$0. 0 | |Recording artist’s royalties |$0. 70 | |Direct material and labour cost s to produce each album |$1. 00 | |Cost of producing the album (studio fee, advertising, promotional|$100,000. 00 | |expenses, etc) | | |Selling price |$7. 00 | ) Identify the variable costs, and amounts, that go into producing each album b) Identify the fixed costs, and amount, for producing the album Answer: a) Variable costs: Album cover$1. 00 Songwriter’s royalties$0. 30 Recording artist’s royalties$0. 70 Direct material and labout$1. 00 Total Variable Cost per Unit$3. 00 b) Fixed costs: Cost of producing the album = Total Fixed Costs = $100,000. 00 4) You are the owner of a travel agency that sells trips to university students. You are creating a package to sell an overnight trip to Blue Mountain. Identify the fixed and variable costs associated with the package ased on the information below. After identifying the costs, calculate the total cost based on 3 full busses of students. The package will include ski lift tickets, access to a VIP party and one night†™s hotel accommodation. It will cost you $300 to print 1,000 full colour posters and another $400 to purchase party supplies for the VIP Party. Each room costs $80 per night, with four people per room. A bus holds 40 people and the bus company will charge you $500 per bus. The ski hill is offering you a rate of $20 per ski lift pass. You also know that you need to purchase a ? page ad in the campus paper at a cost of $100 per week for 6 weeks. Variable Costs |Total |Fixed Costs |Total | |(description & Unit Cost) | |(Description) | | |Busses ($500/bus) |$1500 |Posters |$300 | |Hotel Rooms ($80/room) |$2400 |Party Supplies |$400 | |Ski lift passes ($20/pass) |$2400 |Newspaper ad ($100/wk) |$600 | | | | | | | | | | | | | | | | |Total Variable Costs |$6300 |Total Fixed Costs |$1300 | Worksheet: Metric 2 Percentage Change 1) Ed’s is a small deli, which has had great success in its second year of operation. Revenues in Year 2 are $570,000, compared with $380,000 in Year 1. What is Ed’s year-over-year sales growth rate? Answer: Year-over-Year Sales Growth = (Year 2 – Year 1) / Year 1 * 100% = ($570,000 – $380,000) / $380,000 * 100% = 50% 2) A pair of jeans that normally sells for $75 is marked down 30% and then reduced at the cash register another 10%?Is this a total reduction of 40%? If not, what is the percent reduction? Answer: Let Price 1 be the initial price of $75, let Price 2 be the price after the 30% mark down, and Price 3 be the price after additional 10% reduction at the cash register. Initial Reduction = -30% = (Price 2 – Price 1) / Price 1 -0. 3 = (Price 2 – $75) / $75 -0. 3 * $75 = Price 2 – $75 Price 2 = -0. 3 * $75 + $75 = $52. 50 Second Reduction = -10% = (Price 3 – Price 2) / Price 2 -0. 1 = (Price 3 – $52. 50) / $52. 50 -0. 1 * $52. 50 = Price 3 – $52. 50 Price 3 = -0. 1 * $52. 50 + $52. 50 = $47. 25 Total Percent Reduction = (Price 3 – Price 1) / Price 1 * 100% = ($47. 5 – $75) / $75 * 100% = 37% 3) A small retain chain posts impressive percentage growth figures, moving from $58 million to $107 million in sales from one year to the next. Despite this dynamic growth, however, analysts cast doubt on the firm’s business model, warning that its existing stores’ growth measure suggests that its concept is failing. Based on the chart below, and assuming that stores were opened on the first day of Years 1 and 2: What is the retail chain’s year-over-year sales growth rate? What is the year-over-year sales growth or decrease for each store, as appropriate? What is the same store (existing and not expansion) year-over-year growth? Store |Opened |Revenue Year 1 (millions) |Revenue Year 2 (millions) | |A |Year 1 |$10 |$9 | |B |Year 1 |$19 |$20 | |C |Year 1 |$20 |$15 | |D |Year 1 |$9 |$11 | |E |Year 2 |n/a |$15 | |F |Year 2 |n/a |$12 | |G |Year 2 |n/a |$7 | |H |Year 2 |n/a |$18 | | | |$58 |$107 | Answer:Chain-wide Year-over-Year Sales Growth = (Year 2 – Year 1) / Year 1 * 100% = ($107 – $58) / $58 = 84. 5% Store A Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($9 – $10) / $10 = -10% Store B Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($20 – $19) / $19 = 5. 26% Store C Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($15 – $20) / $20 = -25% Store D Year-over-Year Sales = (Year 2 – Year 1) / Year 1 * 100% = ($11 – $9) / $9 = 22. 22% Same Store Sales Year 1 = $10 + $19 + $20 + $9 = $58 million Same Store Sales Year 2 = $9 + $20 + $15 + $11 = $55 million Same Store Year-over-Year Growth = (Year 2 – Year 1) / Year 1 * 100% = ($55 – $58) / $58 = – 5. 17% ) Do you agree with the analysts’ position regarding the retail chain in question 3, why or why not? If you were the owner of the retail chain would you continue to open stores? If not what would you do? Answer: – Agree with the analysts. Existing stores sales decreased from Year 1 to Year 2; growth declined 5. 17%. – I would not continue to open stores. I would address the decline in revenue / find out why the stores have negative growth in year 2. Worksheet: Metric 3 Market Share & Market Analytics Use the industry overview below to answer the questions that follow: Mobile Phones in the United States The mobile phone market in the United States covers the sales of mobile phone devices, smart phones, and PDAs (personal digital assistants).Table X below provides the annual sales volume of mobile phones from 2004 to 2009. Table XX details the market share of the top handset manufacturers. Table 1: US Mobile Phones: Sales Volume & Value 2004-2009 | |2004 |2005 |2006 |2007 |2008 |2009 | |‘000 units |66,556. 1 |87,543. 1 |110,228. 1 |120,629. 4 |130,309. 9 |134,673. 5 | |US$ bn |4. 1 |5. 4 |6. 9 |8. 3 |10. 1 |10. 6 | Table 2: Mobile Phones Company Shares 2005-2009 % retail revenue share |2 005 |2006 |2007 |2008 |2009 | |Samsung America Inc |15. 7 |15. 1 |17. 3 |22. 1 |25. 4 | |L. G. Electronics USA |15. 9 |16. 5 |15. 2 |20. 6 |21. 5 | |Motorola Inc |30. 4 |34. 8 |33. 5 |22. 8 |16. 4 | |Kyocera International Inc |5. 4 |4. 9 |4. 0 |9. 2 |9. 9 | |Research in Motion Ltd |0. 7 |1. 1 |2. |6. 0 |9. 0 | |Apple Inc |- |- |- |4. 9 |7. 4 | |Nokia United States |15. 4 |18. 1 |12. 5 |7. 5 |6. 5 | |Sanyo North America Corp |4. 3 |4. 2 |4. 5 |- |- | |Apple Computer Inc |- |- |1. 4 |- |- | |Others |12. 1 |5. |9. 0 |6. 9 |3. 8 | |Total |100. 0 |100. 0 |100. 0 |100. 0 |100. 0 | 1) What is the annual 2009 revenue in dollars of the top 4 mobile phone companies? Answer: Revenue Market Share (%) = Revenue ($) / Total Market Sales Revenue ($) Revenue ($) = Revenue Market Share (%) * Total Market Sales Revenue ($) Samsung America Inc: Revenue = 25. 4% * $10. 6 billion = 0. 254 * $10. 6 billion = $2. 6924 billion L. G. Electronics USA: Revenue = 21. 5% * $10. 6 billion = 0. 215 * $10. 6 bill ion = $2. 279 billionMotorola Inc: Revenue = 16. 4% * $10. 6 billion = 0. 164 * $10. 6 billion = $1. 7384 billion Kyocera International Inc: Revenue = 9. 9% * $10. 6 billion = 0. 099 * $10. 6 billion = $1. 0494 billion 2) If the performance of the US mobile phone market is expected to continue to grow from 2009 to 2012 at a rate of 5% per year, what will the size of the market be by the end of 2012? Answer: Revenue 2009 = $10. 6 billion Revenue 2010 = Revenue 2009 + 5% * Revenue 2009 = $10. 6 billion + 0. 05 * $10. 6 billion = $10. 6 billion + $0. 53 billion = $ 11. 13 billion Revenue 2011 = Revenue 2010 + 5% * Revenue 2010 = $11. 13 billion + 0. 05 * $11. 13 billion = $11. 3 billion + $0. 5565 billion = $11. 6865 billion Revenue 2012 = Revenue 2011 + 5% * Revenue 2011 = $11. 6865 billion + 0. 05 * $11. 6865 billion = $11. 6865 billion + $0. 584325 billion = $12. 270825 billion = $12. 271 billion 3) Large retail chains form a leading distribution channel in the US mobile phone marke t, accounting for 28% of the total value in 2009. In comparison, wireless service providers account for 23%, independent retailers 15%, and other sources account for 32%. Based on the 2009 revenues for the mobile phone market in the US, what is the share of revenue in dollars for each of the different distribution channels? Answer:Revenue Market Share (%) = Revenue ($) / Total Market Sales Revenue ($) Revenue ($) = Revenue Market Share (%) * Total Market Sales Revenue ($) Large Retail Chains: Revenue = 28% * $10. 6 billion = 0. 28 * $10. 6 billion = $2. 968 billion Wireless Service Providers: Revenue = 23% * $10. 6 billion = 0. 23 * $10. 6 billion = $2. 438 billion Independent Retailers: Revenue = 15% * $10. 6 billion = 0. 15 * $10. 6 billion = $1. 590 billion Other: Revenue = 32% * $10. 6 billion = 0. 32 * $10. 6 billion = $3. 392 billion 4) Calculate the Three Firm Concentration Ratio and the Herfindahl Index for the US Mobile Phone market (using 2009 market share values).What can you infer about the market concentration from these two metrics? Answer: Three Firm Concentration Ratio = 25. 4% + 21. 5% + 16. 4% = 63. 3% Herfindahl Index = Sum ([market share)(2] = Sum (. 254(2 + . 215(2 + . 164(2 + . 099(2 + . 090(2 + .074(2 + . 065(2 + . 038(2) = 0. 167 With the top 3 companies accounting for 63. 3% of the market and a Herfindahl Index of 0. 167 the market is not highly concentrated. 5) You have just become the Director of Retail Sales for a large US retail chain. What impact will the growing sales of mobile phones have on your business? Answer: – With a 5% increase per year, impact will be minor. Large retail chains sell thousands of products. There will likely be a similar increase in related products, such as chargers, skins, cases, travel chargers, prepaid phone cards, etc. – There may be a need to increase inventory levels and shelf space devoted to mobile phones and related products – There may be a slight increase in consumer flow i nto stores, which would affect cross and upselling other products to consumers walking in for mobile phones. Worksheet: Metric 4 Contribution Margin 1) Mohan, an artist, draws caricatures on the waterfront pier. It costs him approximately $5 in materials (paper and markers) for each caricature he makes. He sells each caricature for $20. Calculate the contribution margin in terms of dollars and percent. Answer: Contribution Margin ($) = Revenue – COGS = $20 – $5 = $15Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] *100% = [($20 – $5) / $20] * 100% = [$15 / $20] * 100% = 0. 75 * 100% = 75% 2) The Hotel Grill Bar sells a set lunch for $12. The food cost of sales used in producing each set lunch is $5. Additional variable costs are $3 per lunch. The fixed costs of the restaurant are $3 per meal. What is the contribution margin expressed in dollars a nd percent? Variable Expenses = $5 + $3 = $8 Contribution Margin ($) = Revenue – Variable Expense = $12 – $8 = $4Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] * 100% = [($12 – $8) / $12] * 100% = $4 / $12 * 100% = 0. 33 * 100% = 33. 3% 3) You are an online retailer of CDs, promoting sales via a ‘no postage and packaging’ offer. You purchase your CDs from record companies for $18. 75. Packaging and a padded envelope cost $1. 00 per CD; and postage is $2. 00. If you sell the CDs for $25 what is your contribution margin in dollars and percent? Variable Expenses = $18. 75 + $1. 00 + $2. 00 = $21. 75Contribution Margin ($) = Revenue – Variable Expense = $25 – $21. 75 = $3. 25 Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)] * 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sa le Price per Unit] * 100% = [($25 – $21. 75) / $25] * 100% = [$3. 25 / $25] * 100% = 0. 13 * 100% = 13% 4) You are the owner of an exclusive nightclub that is considering holding a New Year’s Eve party. You have determined that you need a minimum contribution margin of 40% in order to turn a profit for a single night event at your club.Additionally, in hosting all-you-can-eat and all-you-can-drink events in the past, you know that the food cost is $20 per person and the beverage cost is $17 per person. Finally, the house band charges a fee of $5 per person in attendance. What should you charge for a ticket? Answer: Variable Expenses = Food + Beverage + Band = $20 + $17 + $5 = $42 Contribution Margin (%) = [Contribution per Unit ($) / Sale Price per Unit ($)]* 100% = [(Sale Price per Unit – Variable Cost per Unit) / Sale Price per Unit] * 100% 40% = [(Sale Price per Unit – $42) / Sale Price per Unit] * 100% 0. 0 * Sale Price per Unit = Sale Price per Unit – $42 $42 = Sale Price per Unit – 0. 4 * Sale Price per Unit $42 = (1 – 0. 4) * Sale Price Per Unit Sale Price per Unit = $42 / 0. 6 Sale Price per Unit = $70 5) As the owner of the nightclub in question 4, you learn that a neighbouring nightclub is selling tickets for their New Year’s Eve party at $60/ticket, which is making your event less attractive. Should you lower your ticket price to match theirs given the variable costs in question 4 and knowing that your fixed costs will be $20/person? If not, why not and what might you do to increase tickets sales? Answer: No. The nightclub would lose $2 per ticket sold if they matched the neighbouring club’s price.To increase sales: – Reduce ticket price and reduce variable costs (lower priced food, drink, band) – Ensure that event is differentiated in a way that justifies the premium ticket price – Perhaps the other club is not offering all-you-can-eat or all-you-can-drink, or the b and is not as well-known, if that’s the case, ensure that your potential customers are aware of the differences Worksheet: Metric 5 Mark-up & Margin 1) A computer software retailer uses a markup rate of 40%. If the retailer pays $25 each for computer games sold in its stores, how much do the games sell for? Answer: The markup is 40% of the $25 cost, so the markup is: (0. 0) * ($25) = $10 Then the selling price, being the cost plus markup, is: $25 + $10 = $35 Therefore the games sell for $35. 2) A golf pro shop pays its wholesaler $40 for a certain club, and then sells that club to golfers for $75. What is the retail markup rate? Answer: The gross profit in dollars is calculated as sales price less cost: $75 – $40 = $35 The markup rate is then calculated: Markup (%) = Gross Profit / Cost *100 = $35 / $40 *100 = 87. 5% 3) A shoe store uses a 40% markup on cost. Find the cost of a pair of shoes that sells for $63. Answer: The cost of the shoes is calculated as follows: Se lling Price = Cost + Markup ($) Cost + (Markup (%) * Cost) $63 = Cost + (40% * Cost) $63 = Cost + (0. 4 * Cost) $63 = (1 + 0. 4) * Cost $63 = 1. 4 * Cost Cost = $63 / 1. 4 = $45 4) In 2009, Donna Manufacturing sold 100,000 widgets for $5 each, with a cost of goods sold of $2. What is the company’s margin? Identify a way that Donna Manufacturing can increase its profit margin? Answer: First we have to calculate the gross profit: Gross Profit = Selling Price – Cost of Goods Sold = $5 – $2 = $3 Now we can calculate the margin: Margin (%) = Gross Profit / Sales * 100 = $3 / $5 * 100 = 60% Ways to increase the profit margin: – Decrease cost of material – Decrease cost of manufacturing Increase sales price per unit – Decrease COGS 5) If a product costs $100 and is sold with a 25% markup at a retail store, what would be the retailer’s margin on the product? What should be the markup and selling price if the retailer desires a 25% margin? Why might the retailer be seeking to increase their margin? Answer: a) To calculate the margin, we first have to determine the sales price: Markup ($) = Markup (%) * Cost = 25% * $100 = $25 Selling Price = Cost + Markup ($) = $100 + $25 = $125 Margin (%) = Markup / Price * 100 = $25 / $125 * 100 = 20% Therefore the retailer’s margin would be 20% when the product is sold at a 25% markup. ) To calculate the markup and selling price at a 25% margin: Selling Price = Cost / (1 – Margin (%)) = $100 / (1 – 25%) = $100 / (1 – 0. 25) = $133. 33 Markup ($) = Selling Price – Cost = $133. 33 – $100 = $33. 33 Markup (%) = Markup ($) / Cost * 100 = $33. 33 / $100 * 100 = 33. 33% Therefore to obtain 25% margins, the product would have to be sold at $133. 33 with a markup of 33. 33%. c) Reasons for increase include: – Increase in fixed costs (rent, tax, commission, wages, etc. ) – Increase in demand and/or decrease in supply – Other compet itors/retailers charge more for the product and the higher margin is a result of increasing sales price to match Worksheet: Metric 6 Pricing Wholesale to Retail ) You are a manufacturer of widgets that sells your products to a wholesaler who in turn sells directly to retailers. You have developed a new widget and you know that your competition’s product retails for $23 in hardware stores. You know yours is slightly better, and are pretty sure your product could sell for $27. Assuming a retail margin of 33. 3% and a wholesale margin of 25%, what is the wholesaler’s selling price, and how much can you sell the widgets to the wholesaler for? Answer: If the suggested retail price of the widget is $27, then: Wholesaler Selling Price ($) = Retail Selling Price * [1 – Retail Margin (%)] = $27 * (1 – 33. 3%) $27 * (1 – 0. 333) = $18. 00 Manufacturer Selling Price = Wholesale Selling Price * [1 – Wholesale Margin] = $18. 00 * (1 – 25%) = $18. 00 * (1 – 0. 25) = $13. 50 2) As a small appliance manufacturer, your cost to manufacture and package your coffee maker is $10/unit. You want this to be a cash cow, so you decide to sell the coffee maker to your wholesaler for $19/unit. You know that the wholesaler’s margin is 25%, and that retailers typically take 33. 3% margins on small appliances. What will your coffee maker retail for rounded to the nearest whole number? Answer: Manufacturer Selling Price = Wholesale Selling Price * [1 – Wholesale Margin]Wholesale Selling Price = Manufacturer Selling Price / [1 – Wholesale Margin] = $19 / (1 – 25%) = $19 / (1 – 0. 25) = $25. 33 Wholesale Selling Price = Retail Selling Price * [1 – Retail Margin] Retail Selling Price = Wholesale Selling Price / [1 – Retail Margin] = $$25. 33 / (1 – 33. 3%) = $25. 33 / (1 – 0. 333) = $37. 98 Therefore the coffee maker will retail for $38. 00 3) A bearing manufacturer buys raw ma terials for $0. 50 per unit, turns the raw materials into a roller bearing, and then sells the bearings to a wholesaler for $1. 00 per unit. The wholesaler then sells the bearings to retailers for $2. 00 per unit, and finally consumers buy the bearings for $3. 00 per unit.What is the per unit margin in dollars for the manufacturer, wholesaler and retailer? What is the percentage margin for the manufacturer, wholesaler and retailer? What is the per unit margin in dollars and percentage margin for the entire chain? Answer: (a) Manufacturer margin ($) = $1. 00 – $0. 50 = $0. 50 Wholesaler margin ($) = $2. 00 – $1. 00 = $1. 00 Retailer margin ($) = $3. 00 – $2. 00 = $1. 00 (b)Manufacturer margin (%) = $0. 50 / $1. 00 * 100 = 50% Wholesaler margin (%) = $1. 00 / $2. 00 * 100 = 50% Retailer margin (%) = $1. 00 / $3. 00 * 100 = 33. 3% (c)Chain margin ($) = $3. 00 – $0. 50 = $2. 50 Chain margin (%) = $2. 50 / $3. 00 * 100 = 83. 3% 4) If the raw material cost goes up by $0. 5 per unit for the bearing manufacturer in question 3, what will be the retail price charged to consumers if all members in the chain maintain the same percent margin? What is the effect of the raw material increase to the consumer? Why is it important to understand channel margins and pricing practices? Answer: (a) Manufacturer margin = 50% Wholesaler margin = 50% Retailer margin = 33. 3% Raw material cost = $0. 50 + $0. 25 = $0. 75 Manufacturer margin = (Price – Cost) / Price * 100 50 = (Price – $0. 75) / Price *100 0. 5 * Price = Price – $0. 75 $0. 75 = Price – 0. 5 * Price $0. 75 = Price (1 – 0. 5) Price = $0. 75 / 0. 5 = $1. 50 Therefore the manufacturer sells the bearings for $1. 50 Wholesaler margin = (Price – Cost) / Price * 100 50 = (Price – $1. 0) / Price *100 0. 5 * Price = Price – $1. 50 $1. 50 = Price – 0. 5 * Price $1. 50 = Price (1 – 0. 5) Price = $1. 50 / 0. 5 = $3. 00 Therefore the whol esaler sells the bearings for $3. 00 Retailer margin = (Price – Cost) / Price * 100 33. 3 = (Price – $3. 00) / Price *100 0. 333 * Price = Price – $3. 00 $3. 00 = Price – 0. 333 * Price $3. 00 = Price (1 – 0. 333) Price = $3. 00 / 0. 667 = $4. 50 Therefore the retailer sells the bearings for $4. 50 (b) The price has increased by $1. 50 to the consumer (or 50% increase). (c) To evaluate the effects of price changes within the channel to the end consumer. Worksheet: Metric 7 Break-Even ) Apprentice Mousetraps wants to know how many units of its â€Å"Magic Mouse Trapper† it must sell to break even. The product sells for $20. It costs $5 per unit to make. The company’s fixed costs are $30,000. Answer: Break-Even Volume (#) = Fixed Costs ($) / Contribution per Unit ($) Contribution per Unit = Sales Price per Unit – Variable Cost per Unit = $20 – $5 = $15 Break-Even Volume (#) = $30,000 / $15 = 2,000 mousetraps 2) Apprentice Mousetraps wants to know how many dollars’ worth of its â€Å"Deluxe Mighty Mouse Trapper† it must sell to break even. The product sells for $40 per unit. It costs $10 per unit to make. The company’s fixed costs are $30,000. Answer:Break-Even Revenue ($) = Fixed Costs ($) / Contribution Margin (%) Contribution Margin (%) = Contribution per Unit / Selling Price per Unit Contribution per Unit ($) = Price per Unit – Variable Cost per Unit = $40 – $10 = $30 Contribution Margin (%) = $30 / $40 * 100 = 75% Break-Even Revenue ($) = $30,000 / 75% = $40,000 -OR- Break-Even Revenue ($) = Break-Even Volume (#) * Price per Unit ($) Break-Even Volume (#) = Fixed Costs ($) / Contribution per Unit ($) Contribution per Unit = Sales Price per Unit – Variable Cost per Unit = $40 – $10 = $30 Break-Even Volume (#) = $30,000 / $30 = 1,000 units Break-Even Revenue ($) = 1,000 * $40 = $40,000 3) John’s Clothing Store employs three salespeople.It gene rates annual sales of $1 million and an average contribution margin of 30%. Rent is $50,000. Each sales person costs $50,000 per year in salary and benefits. How much would sales have to increase for John to break even on hiring an additional salesperson? Answer: If the additional fixed cost of a salesperson is $50,000 and with an average contribution margin of 30%, then: Break-Even Revenue ($) = Fixed Costs ($) / Contribution Margin (%) = $50,000 / 30% = $166,666. 67 Therefore sales would have to increase by $166,666. 67 for John to break even on hiring an additional salesperson. 4) A corn farmer wishes to identify how many bushels of corn he must sell to cover his fixed cost at a given price.The farmer has costs consisting of $500 in real estate taxes, $700 interest on a bank loan, and $800 in other fixed expenses. The variable cost per bushel is $1, and covers labour, corn seed, herbicides and pesticides. If the price per bushel is $2, how many bushels must he sell to break even? Answer: Break-Even Volume (#) = Fixed Costs / Contribution per Unit Fixed Costs = $500 + $700 + $800 = $2000 Contribution per Unit ($) = Price – Variable Cost per Unit = $2 – $1 = $1 Break-Even Volume (#) = $2000 / $1 = 2000 bushels 5) If the farmer in question 4 sells only enough bushels to break even, what is his annual profit? Identify two ways the farmer could increase his annual profit.Answer: Farmer’s annual profit = $0. The farmer could increase his profit by: – Growing more corn – Increasing the price he charges per bushel – Reducing his costs: – Pay off loan or find lower interest rate – Reduce labour costs – Find lower seed costs – Find lower herbicide and pesticide costs – Changing to a more lucrative crop – Find alternative use for the land that offers a better return Worksheet: Metric 8 Return on Marketing Investment (ROMI) 1) A marketer is evaluating two marketing campaigns. It is esti mated that Campaign 1 would generate incremental revenues of $250,000, at an incremental cost of $50,000 and a contribution margin of 30%.Campaign 2 would generate incremental revenues of $50,000, at an incremental cost of $20,000 and a contribution margin of 50%. If the marketer is basing their decision solely on ROMI, which campaign should they go ahead with? Answer: ROMI for Campaign 1 is found by: ROMICampaign1 = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($250,000 * 30% – $50,000) / $50,000 = 50% ROMICampaign2 = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($50,000 * 50% – $20,000) / $20,000 = 25% Therefore the marketer should select Campaign 1. 2) A clothing retailer is considering investing in a newspaper advertising campaign to generate more sales.The campaign is expected to cost $3,000 in creative agency fees and $9,000 in circulation costs, while increasing revenues from $110,000 to $170,000. The retailer’s contribution margin averages 25%. What would be the return on the marketing investment of the newspaper campaign? Answer: Incremental Revenue = $170,000 – $110,000 = $60,000 Marketing Costs = $3,000 + $9,000 = $12,000 ROMI = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($60,000 * 25% – $12,000) / $12,000 = 25% 3) An alternative option for the clothing retailer (in the previous question) is to invest in a direct mail campaign targeting previous customers – only a fraction of the reach of the newspaper campaign .The cost of the direct mail campaign would be $1,000, but would only result in increasing revenues to $150,000. What is the return on marketing investment in this case? Answer: Incremental Revenue = $150,000 – $110,000 = $40,000 ROMI = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($40,000 * 25% – $1,000) / $1,000 = 900% 4) If the clothing retailer (in the previous questions) decides to execute both the newspaper and direct mail campaign what would be the combined return on marketing investment. Answer: Newspaper Incremental Revenue = $60,000 Direct Mail Incremental Revenue = $40,000 Total Incremental Revenue = $60,000 + $40,000 = $100,000 Total Cost = $12,000 + $1,000 = $13,000ROMI = (Incremental Revenue * Contribution Margin – Cost) / Cost = ($100,000 * 25% – $13,000) / $13,000 = 92. 31% 5) Which campaign should the clothing retailer in the previous questions execute for maximum return on marketing investment? If the retailer is more concerned with maximizing revenue growth, should they execute the newspaper campaign, direct mail campaign or both? Why? Answer: a) Direct mail campaign (900% ROMI) as it is significantly greater than the newspaper campaign (25%) and combined execution (92. 31%). b) Execute both as the revenue increase is $100,000; greater than the $60,000 as a result of the newspaper campaign and the $40,000 as a result of the direct mail campaign .