Industry Analysis and Financial services of Pan America Research Paper

Industry Analysis and Financial services of Pan America - Research Paper Example According to 2006 statistics in the industry, more than 133 billion litres are sold per year which raised the global revenue to 294.5 billion. Analysis of the industry In analysing the industry, it is critical to understand Panama, what opportunity it offers and the products that are produced in the country. Panama is a country that shows a great diversity in terms of people who live there. Most of the residents come from different countries. A lot of people in Panama prefer beer compared to other beverages. In the year 2011, its production was reported to have grown by 5.1%. The market in panama is worth more than $390 in a year. Another brand that seems to grow and is on the list is wine (Holmes 45). The prices of beer and wine in Panama which are the popular drinks are $35 for each beer and $40 for each wine. When you compare these prices with Gasolina, they prove to be high because Gasolina normally ranges from $7-10. The high prices in panama come due to high costs of living due to its diversity and that it attracts a lot of people. This means that the company will have to increase its selling price in panama in order for it to beat the competition. Gasoline has an opportunity to grow in Panama because it is a new product that is unique in its own way. It is unique in that it has six flavours. It is made with unique spirits which include Caribbean white rum, filtered and distilled vodka, 100% tequila and 100% natural fruit juices. It is easier for outdoor consumption due to its portability. This is because it is packed in 20ml aluminium pouches that even have a straw inside. Its growth is possible due to the diverse cultures in Panama and the uniqueness of the product. With such a product the people of Panama will not find it difficult to pay for the drink at whichever cost. Looking at the industry in general, the market is dominated by few key players which lead to intense competition (Giesbrecht 55). There exists operating uncertainty due to changing con sumer tastes. Margins and pricing are often under pressure. It has three leading industries that account for almost 40% of the overall market share. The leading company is Anheuser-Busch. It holds over 20% of the total volume of the market. This company has 14 brands and each generates over 1 billion USD in a year. The company produces global and regional brands, one of them being Corona. It employs about 11,600 people in 30 countries. The company sales majorly come from North America. Another key competitor in the market is SABMiller. In the market ranking, it is among the top five companies in the industry. Its portfolio contains more than 150 brands. Among its brands are international beers such as Pilsner, Urquell and also local brands like Castle Milk Stout. It operates in 75 countries in Asia, Africa, Europe, North America and also South America. Its sales are around 21 billion litres of lager in a year. Coors is another competitor in the industry which is ranked in the sevent h position globally. It operates Colorado brewery that that is the largest brewing facility that operates singly. It was the first company to use the aluminium can and it operates the largest plant that produces aluminium cans. Among its products is Coors Light. The industry is a global business that contains several businesses that are multinationals and thousands of small producers. The

Foreign language learners and spatial preposition Essay

Foreign language learners and spatial preposition - Essay Example They can also involve possession, like the word 'of' in this phrase 'The books of the school.' When prepositions take on a relational meaning it is common to encounter errors of omission, and errors of commission Errors of omission occur when foreign language learners, or growing children, "fail to use a preposition where one is called for (for example: 'Open keys!' 'Open it with keys!'). Errors like this are due to a lack between the ability to conceive of a certain relation (location, instrument, or direction), and the ability to express it." People learning English as a foreign language often have big problems finding the right English prepositions. These problems can be attributed to the fact that "there are different uses of prepositions in various languages around the world. For example: 'I talked to him.' vs 'Ich redete mit ihm.'// 'He believes in love.' vs 'Er glaubt an die Liebe." (Brala, M.) Most times, lexical items, which fall within prepositional categories are referred to as 'locatives'. This comes from a reflecting on the study of prepositions from two different perspectives: a) the grammatical, and b) the 'local' (semantically driven). "From the grammatical perspective, prepositions have, for a long time, been treated as merely 'an annoying little surface peculiarity' (Jackendoff, 1973 p. 345). This can be attributed to poor interest for the quality of the lexicographic portrayals of prepositional semantics, "which has been dangerously under-examined." (Lindstromberg, 2001) Also, in many languages, the information provided by a preposition is often coded in a noun inflection (an example of this is the ablative in Latin). It is a well known fact that "when it comes to mastering a foreign language one of the most troublesome areas to learn is the (idiomatic) usage of prepositions. Learning how to use prepositions correctly in a foreign language is a colossal task, one that is usually not accomplished way into the learning process, and one that many learners never manage to master thoroughly." (Brala, M. p.1) Examining language differences The Mother language of a foreign learner of English is called first language (L1), while the language to be learnt is called the target language or second language (L2). A shallow learning means relationship between letters and sounds. An English language learner will first be able to generate orthographic parts of more then one letter and then and face the problems in more complex words, because knowledge of just simple words is not sufficient for usage of the English language. In English the learner usually faces the problem with some irregular word that escapes phonemic assembly. In some readings a word might more then one spelling. In a comparative study that was carried out in 2003, to ascertain word differences in different languages, students from different countries were brought together in one class, and analysis showed that the English students exhibited a low lower grade of correct words as compared to

Organisational Audit And Environmental Audit Marketing Essay

Organisational Audit And Environmental Audit Marketing Essay Basically, organizational and environmental auditing techniques are divided into two parts, which are the internal factor evaluation and external factor evaluation. Organisational audit is commonly referred to as internal factors evaluation while environmental audit is referred to as the external factor evaluation. Referring to the case study, Toyota USA can enhance the financial performance and effectiveness of the company through the implementation of organisational audit and environmental audit. Besides that, organisational audit and environmental audit is an important element in the strategic planning process in order for Toyota USA to react better to the changes in the external environment and apply changes to response to the changes. 3.1 ORGANISATIONAL AUDIT According to audit.gov.my, organisational audit is defined as an independent, objective assurance and consulting activity designed to add value and improve an organizations operations. It helps an organization accomplish its objectives by bringing a systematic, disciplined approached to evaluate and improve the effectiveness of risk management, control, and governance processes. In other words, organisational audit is referred to as an activity which is created to assist an organisation in improving its operations by identifying the strengths and weaknesses of the organisation to achieve its objectives. 3.1.1 CUSTOMERS In another term, customers of Toyota can be described as the buyers or consumers who purchased nearly all of the organisations output. Toyota seeks to create loyal customers relationship through understanding who are their buyers and also the buyers needs and demand. They listen to their customers and their product development is driven by customers feedback. Toyota stresses on improving quality, enhancing its efficiency, minimising cost, and increasing its productivity in order to fulfill their customers requirements and be the market leader in the automobile industry as they are today. In addition to that, Toyota implemented quality control in its manufacturing process to produce quality cars. Toyota also produces different lines of cars for the different customers. For example, cars, truck, SUVs, and sports cars. The bargaining power of buyers nowadays is moderately high. This is because the buyers nowadays are more educated and they have access to informations. Toyota USA depends on its customers to survive in the business as these customers represent a large portion of the organisations revenue. Toyota will face the risk of losing its customers to competitors if they are unable to satisfy the customers demands. If the customers are unhappy, they can easily purchase a new car by selling the car that they own. Therefore, the customers have low switching cost. This is due to the reason that the number of buyers is few and not large. Besides that, Toyota also has no complete control over external factors like the prices of oil, steel, rubber, plastic and glass production, etc in which the company is highly dependent on in its manufacturing process. 3.1.2 COMPETITORS Toyota is in a strong position compared to other car manufacturers. It has one of the largest market share in the automobile industry in the US market. Toyotas close competitors include General Motors and Ford. Toyotas strongest competitor, General Motors has a high percentage of sales growth. According to media.gm.com, the General Motors February 2010 reported sales are 32% sales growth if compared to February 2009. Toyotas sales dropped 9% in February 2010 as it was forced to recall its cars from the US market due to faulty brakes. In the automotive industry, the rivalry among competitors is very strong. The rivalry increases as the competitors are very closely balanced. Toyota has to gain market share in the industry by taking it from its competitors. The high rivalry exists between these companies as these companies produce cars, trucks or SUVs. Therefore, the differentiation opportunities are low. Most often, these competitors are compared with one another. The price and quality are among the aspects which are taken into account by buyers when they are making decision in what type of car thay want to purchase. The manufacturers even compare their products with their competitors when they advertise their products. Therefore, to be more advanced, Toyota has to come out with new technologies and differentiation such as an environmentally cars which is the Hybrid cars in order to compete with its competitors. 3.2 ENVIRONMENTAL AUDIT According to David, 2007, environmental audit is to develop a finite list of opportunities that could benefit a firm and threats that should be avoided. The environmental audit is not aimed at developing an exhaustive list of every possible factor that could influence a business; rather, it is aimed at identifying key variables that offer actionable responses. In other words, it means that environmental audit is the process of identifying the key opportunities and threats faced by an organisation to develop strategies which could benefit from the opportunities and avoid the impact of threats. 3.2.1 ECONOMICS FORCES In developing countries, the automotive industry is one of the main industry that contributes to the economic progress. Automotive industry helps to develop an efficient steel business, plastic industry, rubber industry, glass sector, and many more which is a vital base of economic progress. The automotive industry used to be an important industry in the twentieth century, however it has deteriorated due to the economic downturn that results in decline in sales and profits. Yet, there is a future for the automobile industry as it provides job opportunities to the residents in US. This is due to the fact that automotive industry is the main user computer chips, aluminium, steel, plastics, rubber, glass, etc. Therefore, there is a need for workers in these industries. This situation creates job opportunities for the US citizens in the various industries mentioned above which would then lead to the growth in US economic. 3.2.2 TECHNOLOGICAL FORCES Nowadays, information technology has a huge impact on businesses all around the world. Many major industries have been affected by the usage of internet, including the automobile industry. Most of the buyers will refer or browse through the internet first before making a purchase. Similarly, before purchasing a car, the buyers will go to the auto websites before going for a test drive. Therefore, the use of internet is efficient and lower in cost that offer more market opportunities to Toyota. Besides that, due to the concern for environmental and global warming issues, Toyota has conducted research to invent alternate fuel vehicles. The company decided to come up with the technology to produce electric cars to fulfil the legislation demand from the government. The production of electric car is becoming more practical these days. To compete in the market, Toyota has invented the Toyota Prius, a hybrid car that functions with an internal combustion engine. 3.3 INDUSTRY ANALYSIS 3.3.1 IFE MATRIX ANALYSIS FOR TOYOTA TOYOTA-KEY INTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE STRENGTHS Financial stability 0.25 4 1.00 Strong brand name 0.25 4 1.00 Environmental friendly cars 0.20 4 0.80 WEAKNESSES Economic downturns 0.15 2 0.30 Seen as foreign importers 0.15 3 0.45 TOTAL 1.00 3.55 According to the IFE matrix analysis which I have constructed above, the strengths for Toyota which I have identified are financial stability, strong brand name, and also environmental friendly cars. Toyota has a high financial advantage, where in the year 1997, the sales turnover was  £131,511 million whereas the sales growth recorded was 29.3%. Therefore, I have given financial stability a weight of 0.25, a rating of 4, which result in the weighted score of 1.00 as financial stability is one of the important component for the success of a business organisation and Toyota has managed to maintain its financial stability. Next, I have given strong brand name a weight of 0.25, a rating of 4, that lead to a weighted score of 1.00. This is because a strong brand name will be able to gain customers trust of a product thus creating loyal customers relationship. Toyota is well known for producing cars that are of high quality as the company implemented total quality management (TQM) and j ust in time (JIT) quality measurements in the its production process. The organisation stresses on delivering quality products and value to its customers. Besides that, Toyota also manufactures environmentally friendly cars to meet the current legislation demand. Due to the concern for environmental issues such as the green house effect and global warming, Toyota has produced hybrid gas electric vehicles as an alternate fuel vehicle. For instance, the Prius model. The hybrid cars are more practical and fuel efficient. Therefore, I have given environmental friendly cars a weight of 0.20, a rating of 4, and a weighted score of 0.80 as the company responds well to the demand for more environmental friendly cars. Meanwhile, the weaknesses which I have identified for Toyota include economic downturn and where Toyota is seen as foreign importers. I have given economic downturn a weight of 0.15, a rating of 2, and a weighted score of 0.30. Toyota is a large organisation. Sometimes, being big has its own problems. The world market for cars is in a condition of oversupply. As most of Toyotas products are marketed in US, it is exposed to the fluctuating economic condition in the market. As the exchange rate for US is high, there are chances and risks for the company to experience losses during the economic recession. Next, I have given Toyota a weight of 0.15, a rating of 3, and a weighted score of 0.45 where it is seen as foreign importers. As Toyota is a Japanese car manufacturer, it is seen as foreign importers when it operates in the US market. More benefits will be given to a US car manufacturers, for instance in the aspect of incentives and benefits of tax. The US government will also priorit ise its local car manufacturers first compared to foreign companies. Besides that, the consumers in the US market will prefer to purchase cars from a US based manufacturer, for instance General Motor. Toyota would be the alternative choice for buyers in this market. 3.3.2 EFE MATRIX ANALYSIS FOR TOYOTA TOYOTA-KEY EXTERNAL FACTORS WEIGHT RATING WEIGHTED SCORE OPPORTUNITIES Global market untapped 0.25 4 1.00 Increased demand in Hybrid cars 0.25 4 1.00 THREATS Product recalls 0.25 4 1.00 Increased price of raw materials 0.25 2 0.50 TOTAL 1.00 3.50 Based on the EFE matrix analysis which I have constructed above, the opportunities for Toyota include global market untapped and increased demand in hybrid cars. I have given Toyota a weight of 0.25, a rating of 4, and a weighted score of 1.00 for the opportunity on global market untapped. Toyota has explored and expand more aggressively into new segments of the market. For example, The launch of Aygo model by Toyota is aimed to gain a market share in the youth market. Next, I have given Toyota a weight of 0.25, a rating of 4, and a weighted score of 1.00 for the increased of demand in hybrid cars. Toyota is innovative as it has conducted research and development activity, and with the assistance of advancement in technology, it is the first company that invented the commercial mass-produced hybrid gas-electric vehicles that uses gas and electric, for instance the Prius model. With the hike in oil price, the production of hybrid cars by Toyota fits the needs of consumers who are look ing for fuel saving vehicles. On the other hand, the threats which I have identified for Toyota are product recalls and increase price of raw materials. I have given Toyota a weight of 0.25, a rating of 4, and a weighted score of 1.00 for product recalls. In year 2010, Toyota was forced to recall its cars from the US market due to faulty brakes. The recall of cars has affected Toyotas image in the consumers minds where its brand name has dropped. This would then result in the decline in Toyotas sales which will lead to the companys loss. Besides that, I have also given Toyota a weight of 0.25, a rating of 2, and a weighted score of 0.50 for the increase price of raw materials. The price of raw materials cannot be controlled by Toyota and it fluctuates from time to time. During economic downturn or recession, the price of raw materials usually increase tremendously. The hike in price would then increase the cost of production for Toyota. However, Toyota has no choice but to contemplate with the price as it need th e raw materials to manufacture its cars. Toyota would have to save on its manufacturing and production costs while maintaining the quality of its products. This may result in the loss of profits for Toyota. 3.4 WHY TOYOTA NEED TO AUDIT ORGANISATIONAL FACTORS AND ENVIRONMENTAL FACTORS Toyota need to audit its organisational and environmental factors as it gives various benefits to the organisation. The communication between the line and staff personnel of the organisation can be increased. There is also greater employee involvement in the decision making process which would improve organisational synergy. In addition to that, Toyota will be able to come up with a few strategic options that is useful to cope and react to changes in the external environment. New opportunities and the forecast of demand can be detected through the audit of organisational and environmental factors. Through the audit of organisational and environmental factors, the information obtained will assist Toyota in the strategic planning process of the organisation. Environmental scanning has a positive impact on Toyota in terms of communication, shared vision, strategic planning and management, and future direction. It improves communication on future plans by key people in the organisation. Environmental scanning is also used to monitor the market trends and fashions. The success of an organisation depends on its ability to react to the market trends. Environmental scanning assist Toyota in detecting the changing needs to its customers so that the company can be practical in monitoring, predicting, and responding to market trends. This helps Toyota in planning ahead of its competitors by building competitive strategies. 3.5 CONCLUSION As conclusion, the organizational and environmental auditing techniques serve as tools to review and evaluate the major strengths and weaknesses in the functional areas of a business, and it also provides a basis for identifying and evaluating relationships among those areas and provides an understanding of the environment affecting the business operations. In order to understand and manage business risk well, business organisations have to monitor its business environment from time to time to track for changes and adapt to the changes in the environment. Therefore, Toyota USA should conduct the organizational and environmental auditing techniques to develop strategic formula in order to improve its business performance and also react to the changes in its business environment.

Reforma Tributaria y Modernización de la Administración Tributaria :: Politicas Fiscales

Reforma Tributaria y Modernizacià ³n de la Administracià ³n Tributaria En mayo de 1992 se promulgà ³ un nuevo cà ³digo tributario que modificà ³ sustancialmente el sistema tributario anterior. Entre los objetivos que se trazà ³ esa reforma tributaria estuvieron: 1) reducir distorsiones que generaban las elevadas tasas de impuestos sobre los ingresos; 2) disminuir el sesgo que generaba el anterior sistema contra el ahorro; 3) elevar el grado de elasticidad del sistema impositivo a los cambios en los precios; 4) aumentar el peso especà ­fico de impuestos de amplia base y baja tasa, a fin de reducir la distorsià ³n que generaban los impuestos en el sistema de asignacià ³n de recursos; 5) reducir la evasià ³n fiscal; y 6) aumentar las recaudaciones y la presià ³n tributaria. La reforma tributaria redujo las tasas marginales mà ¡ximas de impuesto sobre los ingresos de las personas de 70% a 30% inicialmente, para llegar en tres aà ±os a 25%. La tasa de impuesto sobre las utilidades de las empresas se redujo de 49% a 30% inicialmente, para llegar en tres aà ±os a 25%. Se elevà ³ el deducible a RD$60,000.00 anuales. Esto implicaba que mà ¡s del 90% de los asalariados quedarà ­a prà ¡cticamente exento del pago del impuesto sobre la renta. Esta exencià ³n elevà ³ el grado de progresividad del sistema impositivo. A nivel del impuesto selectivo al consumo, especà ­ficamente el que grava el consumo de cigarrillos y bebidas alcohà ³licas, se sustituyeron las tasas especà ­ficas por tasas ad-valorem. Las tasas establecidas, sin embargo, quedaron muy por debajo de las inicialmente propuestas. En 1995 estas tasas fueron elevadas a 20% y 25% , lo que todavà ­a las dejaba por debajo de la propuesta inicial de 30%. Finalmente, la base imponible del ITBIS f ue aumentada y la base elevada de 6% a 8%, por debajo del 10% que se habà ­a propuesto inicialmente. Los ingresos fiscales y la presià ³n tributaria aumentaron de manera apreciable, alcanzando esta à ºltima 14.4% en 1995. Sin embargo, el aumento de las recaudaciones no se ha debido a la puesta en marcha de un nuevo Cà ³digo Tributario, sino a las mayores recaudaciones de las aduanas, producto en gran parte, de la adopcià ³n de la tasa de cambio del mercado libre para liquidar los impuestos sobre las importaciones, y al establecimiento ad-hoc de un apreciable diferencial en el precio aplicado al consumo de los combustibles. El 42% de los ingresos tributarios en 1996 se debià ³ a los impuestos sobre las importaciones y al diferencial del petrà ³leo.

Counterfeits

With globalization, while population to trade with our products increase and the possibility to have an extra-demand also generates a public-demand, that is not able to pay the price of your product or think that the relation price-quality Is not enough. So, with this unsatisfied demand, by logic, appear producers of counterfeits producing goods with less quality but a lower price that can satisfy the needs of the big population worldwide. Example: Firm A = 1 product Before globalization = 10 buyers for 100 target market=> Difference: 90 After globalization- 100 buyers for 100. 0 target market ->,; Difference: 999. 900 So the increase of buyers is multiplied by 10 but the possible buyers (target of product) Is multiplied by 1000†¦ Producing a huge increment in people that wants the product but doesn't want to pay the price. As an ethical Issue, counterfeit is viewed differently depending on we are, West world or in developing world. A) On West side, the developed world, I thin k it's viewed as a bad thing that makes an unfair competence creating a devaluation of the Job done by national companies.Also, Is a neural known that the counterfeits are produced by exploited children In very poor conditions (to have the possibility to reduce the price). Even so, there are so many people buying counterfeits of all products but in majority clothes and technology Items (in developed world we have â€Å"fear† to buy things as foot or cosmetics due their direct Influence on our health. I think that Is viewed as unethical but as always we will continue buying? Why buy one thing far more expensive when I could buy it at the next street cheapest and without notice the different of quality? In developing countries, where purchasing power Is fewer, I think that fake products are more accepted and viewed as normal thing. Furthermore is where are produced so the selling is normal. As a ethical think, I think that is viewed ethically because they know that all the â₠¬Å"famous-big† companies are using children labor too and doing continuously Illegal things. But otherwise, the possibility to have a cheapest product and can sell It In a big number to developed countries and help to growth I thought that it's see as a opportunity.To avoid counterfeiting there Is already a lot of laws prohibiting the selling and the producing of fake products but still happening. In the article said that companies are trying to send a message to consumer to convince them that buying fake products is almost impossible to stop. Other way to try, is following the product to seller to distributor. I mean, if the police look a person selling counterfeited products on street (for example) not hold him if not following and try to know where he goes to take the products that he will sells and try to catch the root.

Human resource management Essay

People believe that technology enhancement can play a vital role in replacing people with machines, but these people are the one, to invade those machines. Human resource is an important area in an organization as it deals with different departments of the organization such as finance department etc. Without hr management none of the organization can achieve a repetitive position. In today’s world, changes are taking place in hr management due to trends in globalization. Invention of new technologies, diversity, e-business that is e-commerce and ethics (Haslinda, 2009). Globalization is a process in which regional economies, societies and culture become integrated. In the second half of the 20th century globalization takes a great part in enhancing the economic expansion of the global economy. Globalization has completely changed the environment of the business. With globalization, barriers to entry will not be able to restrict new entrants in the market. Due to this fact, companies will not have to restrict themselves with a single prediction plant, in spite of it, they can move from a single market to another market with lower transportation and communication cost. Due to this multinational corporations are taking advantages to set monopolies in the market. Competing in the global market is very difficult, so to face such kind of competitions hr should be properly centralized and should be in practice. Efficiency of the employees plays a great role in managing and controlling the hr department. In human resource management the staff which is requi red should be talented, creative, innovative, understandable, trained properly etc to meet the requirements of the globalization (Rajar and Shah, 2010). In early century, when there was no HR department, people use to make the best use of the technology, which was available at that time like telephone, typewriter, time clock etc for managing all departments properly. But with the advancement in technologies and with the inventions of other computerized base technologies, the hr started to take benefits from it. They started to manage and use the database. They use different technologies to deal in different areas of work like interactive voice response, local area networks, optical character recognition etc. (Frantzreb, 2010). Diversity is the policy of encouraging people coming from different backgrounds. Diversity management is adapted by different workplaces in order to make changes in different work styles. Companies use diverse work force because different people are specialized in different fields (Mortan, 2009). If some one is specialized in a particular work and continues it for a longer time periods then he will definitely get bored with his work one day and he will also not enjoy in doing his work which will result in the downfall of the company. Therefore, people will work inefficiently and will not enjoy their work. So, diversity should be adapted because it will motivate people towards hard work. Companies uses diverse work force for increasing efficiency and to achieve companies goals and a higher position in the market. It has many advantages; one of the main advantage of diversity management is that it enhances the skills and talent among employees and staff having different ages, countries, race, gender etc. Every one is treated equally. And employees feel more secure and began to work more effectively (Taton, 2010). E-Business is the application of communication technologies, which manages different departments of business and manages all the activities of business. Changes in e-business obviously effect human resource management, which includes compressed technology cycle, higher demand, more dependence on higher speed and always demand for higher service etc. To maximize the benefits of e-commerce some different methods of e-business should be adopted by different organizations. Company should create a strong team for decision-making. And the team must include employees from different departments (Nelson, 2001). There are different departments in every organization and different people in hr department manage each department efficiently. Human resource department manages the organization by first finding the place where they want a new employee, then they find what kind of workers they will need, then they will take interviews and select. Hr manages all the employees by giving them motivation by compensation and by increasing their salaries. Every organization must have a hr department. The role of human resource management is changing day by day in different trends like globalisation, diversity, technology, ethics and e-commerce.

Conrail Case Study Essays

Conrail Case Study Essays Conrail Case Study Essay Conrail Case Study Essay The Railroad revolution in the united States began in the early 1 sass. The developed infrastructure was used for freight transportation business. In the mid-sass the industry experienced explosive growth, followed by significant consolidation in 1870. The rail road companies initiated expansion through acquisitions in attempt to reduce marginal costs and increase their market share. As a result of this competition, a number of cartels were formed; therefore the federal government intervened and established regulation on railroad mergers, infrastructure construction and divestment. On the other hand, the government initiated enormous investments in highway infrastructure, which resulted in the emerging of the trucking industry. Together with innovations in motor and tire technologies, the trucking industry began gaining significant market share of the freight transportation business from the rail road companies. As a result, the six largest railroads in the Northeast filed for bankruptcy. In response to the failures, the Congress passed the Staggers Rail Act of 1980 in order to deregulate the railroad industry, which resumed the mergers and acquisitions activity. The following analysis will investigate the economics of the offer for Consolidated Rail Corporation (Conrail) by CSS Corporation (CSS) and Norfolk Southern Corporation (Norfolk). The stand-alone bidders, CSS and Norfolk would value the target, Conrail, based on its fundamentals, however if both bidders are present they would enter price wars and legal battles, therefore this would inflate the offered price for the target. In particular the acquirers have to take into account of the opportunity cost of losing the bidding war (I. E. Going significant proportion of their revenue going forward) as calculated in Question 3. According to our analysis, the value of opportunity cost of losing the bid war can be as high as 13% of total offer price (calculated in SQ). In this case, although the synergy impact between Norfolk and Conrail is lower compared to that with CSS, the value of opportunity cost of Norfolk losing the bid is significantly higher, which brings Norfolk potential offer pric e higher than that of CSS (1 16. 84 vs.. 114. 36) -? calculated in SQ. If they were stand- alone bidders, Coxs potential offer price is significantly lower (105. 44), and Norfolk offer price is c. 102. However, since CSS, Conrail and Norfolk are in tauter market with high concentration of market power, believe the bidding war is naturally the product of this market structure. The following analysis would provide further details of the synergies of the potential deals. In 1 973, following the Regional Reorganization Act, the government established Conrail (the target), out of the remains of the six bankrupt, Northeastern railroads. The company became the 2nd largest in the region and it was privatized in 1987, via PIP (the largest in LOS history at the time). On 15 October, 1996 the CEO of CSS announced $8. Ban merger with Conrail. Due to he friendly nature of the offer, both management boards claimed significant synergies, including operations improvement, cost efficiencies and compatible cultures. This horizontal merger would create value by consolidating overlapping operations. CSS, the largest company in the East (freight transportation market share 38. %) operated 1 8,645 track miles and 29,537 employees. Conrail possessed 29. 4% of the Eastern freight transportation market with 1 0, 701 track miles and 23,51 0 employees. The network expansion would link Midwestern, Northeastern CSS cities with Canadian cities; therefore the CSS-Conrail company would also capitalize on North American Free Trade Agreement NONFAT(1 994). The merger CSS-Conrail would result in significant operating synergies, in particular in completeness of the distribution network. Although Coxs had important presence in the railroad business, the company also provided diversified transportation services, including ocean container shipping, barging and contract logistics services. The combination of intermediate services (transportation of truck trailers and container by rail-car) and network expansion would result in higher operation efficiency to compete with the trucking industry. In addition, he maritime and the railroad presence of the merged company would result in economies of scope. The universal container would promote better branding and it would open the business to international trade. The industry consolidation and the merger of CSS and Conrail would create the 2nd largest company in US and the largest in the Eastern region; therefore the company would increase its market power in the freight transportation business, gaining revenues from its competitors Norfolk and the trucking industry companies. The financial synergies of the deal would lead to improved economies of scale in financing. The size of the merged firm would increase the debt capacity and tax debt shield, therefore dilute financing costs. Although the management of both CSS and Conrail were convinced in the success Of this merger, individually the companies were the least efficient (higher operating ratio) among the three leading railroad companies in the East. This potential weakness could result in a concern about the management synergies of the deal. Following the merger announcement of $8. Ban of CSS-Conrail in 1996, the third largest railroad company in the Eastern region, Norfolk proposed a hostile offer of $9. Bin for Conrail. The concerns of a potential merger between CSS and Conrail would have significant implications for the transportation system and for the shipping public, which would pose a serious threat to Norfolk market share. Although the operating synergies for Norfolk-Conrail would be of a similar nature, I. E. Horizontal merger resulting in higher market share, expanded rail network, increased revenues and cost reduction, the bidder could offer stronger management synergies. Norfolk was recognized by the industry specialist as the most efficient (lowest operating ratio) and best managed railroad in the united States. In addition, Norfolk would have used cash as a payment method, which suggests that the company would borrow money, therefore benefit from higher Tax Shield. The case states that the bidder was backed by a consortium of banks, ready to fund the acquisition. This suggests that Norfolk has good access to the capital markets. Given the presence of the two competitors, CSS and Norfolk, the merger with Conrail resulted in bidding wars and legal battles. To close a good deal, the created value from the merger should exceed the costs, premium paid and transfer to other parties (source Lecture Notes FEMME): AAA + AP + C The bidding war would inflate the share price of the target, therefore would increase significantly the premium paid AP. From 14 October 1996 to 16 January 1997, the blended value of the CSS offer per share increased by 15% from $89. 07 to SSL 02. 16. On the other hand, Norfolk bid also increased by to $115. 00 per share in cash. In addition, the legal battles against the CSS-Conrail mergers increased the cost associated with organizing the deal C. The length of the price wars also resulted in decreased stock prices of the bidders and an increase of the targets stock price. Question 2 Deals Not Chosen: Santa Fee pacific (Jinn pacific) and Kansas City Southern are not taken because these offers did not go through. Therefore, the accepted value of the target companies was not determined, hence very biased: Potential synergies were probably rather biased since these bids were not accepted by the target Fundamental value of the target was probably undervalued since these bids were rejected Control premium was probably not correctly captured in the bid price Deals Chosen: Santa Fee Pacific (Burlington Northern), Chicago and North Westerner, Southern Pacific are chosen because: They are completed deals Both the targets and acquirers are from same industry of Conrail, and I would assume that they have the same risk exposure to the economy and industry The deal dates are within recent past Company sizes are closer to the target company in term of total asset value However, please note that the % operating synergy of chosen deals are significantly higher than that of either CSS or Norfolk Southern s deals, the derived equity price for Contrails deal is likely to be significantly lower due to lower synergy effects. Since we do not have any deals with similar synergy effects as Conrail, would chose these three deals to value Conrail. Multiples Not Chosen: Offer price per PEPS and Book Value as a Multiple of offer price are not used because of the following reasons: Both PEPS and book value are highly affected by accounting decision and standards (GAPS vs.. FIRS) adopted by companies, which make the multiples on these very hard to be compared across companies Both PEPS and book value can sometimes be negative if negative earnings are sustained over long period of time PEPS is affected by capital structure, which IS vastly different across firms. This characteristic makes the offer price multiple on this item not very useful to identify value of there firms Both PEPS and book value can be manipulated by the company management Book Value does not reflect the intangible side of the business such as employee skills, brand name etc. Book Value reflects the assets on historical basis, making it very hard to compare across companies with different asset ages due to high inflation and many major technological advances over time PEPS is not stable since it is affected by the business cycle, and/or one-off events (asset sale, debt write-offs etc.. The offer price and book value are not consistent with each other since the price is net cost of bet, however, book value includes debt Enterprise value/Sale multiple is not used because of the following reasons: Sale is quite distant from the bottom line of the business since it does not capture cost structure of the business, compared to EBITDA or Free Cash How Sale does follow business cy cle, which make it hard to compare across business Multiples Chosen: Enterprise Value/Belted multiple is chosen because: Consistent between numerator and denominator since both of them are pre- debt measures. EBITDA is earnings before interest, tax, depreciation and amortization, whereas Enterprise value includes both debt and equity This ultimate is not affected by differences in capital structure across firms EBITDA is the least affected items in the financial statement by the accounting standards EBITDA is closest item to Free Cash Flow, which can be used to indicate quality of earnings EBITDA is usually positive as well, especially in the railway case where depreciation tends to be high due to asset intensive Since the question does not state the timing of the takeover, I would assume that the takeover time is SQ 1996 As offs 1996, the long term debt is $2094 million (Exhibit 6), and the cash amount is $33 million. Therefore net debt mount as of SQ 1996 32061 million The EBITDA (last SQ) is 1017 (Exhibit 6) The number of fully diluted shares outstanding is 90,500,000 at acquisition Below is the summary of the valuation by multiples: The multiple valuation method gives a range of Contrails value between $73 and S 124, with the average value of $104 per share Question 3 Part a) Valuation of Conrail Growth Rate: In response to the failures, Congress passed the Staffers Rail Act of 1 980, a deregulatory act that gave railroads the ability to set prices in competitive markets, abandon profitable lines and pursue merger and acquisition. This has had major impacts on the market between 1980 and 1995, where companies significantly restructured their businesses with better dispatching system, cutting cost program, and abandoning unprofitable lines. Since the Act came into force in 1980, I would assume that the impact Of the program was not as extensive in 1 sass, and the Contrails growth was a sustainable one rather than event-driven growth post 1995. In addition, since the market is already rather mature, I would assume that inflation is to be used for projecting future sustainable growth of Conrail, which is 3% Appendix 6) Risk Free Rate: since the cash flow of Conrail is ongoing concern with indefinite cash flow horizon, hence the duration of cash flow will be rather high. Using Asset Liability duration matching, I would assume that 30 year bond is the one that have the most similar duration profile as Contrails cash flow. Therefore the risk free rate I would use to value Conrail in this case is 6. 3% Timing: since the timing is not indicated in question I would assume that the timing of the valuation exercise as of SQ 1 996 and no takeover activities or announcements have happened Marginal Tax Rate: 35% is assumed (Exhibit b) Market Return: 14. 1 % is the average annual return for S index (Source: Bloomberg) Cost of equity: I would assume that the current leverage ratio will remain the same going forward The current Conrail beta will remain the same as 1. 30. Assuming the market is the efficient and satisfying all the CAMP assumptions, I use CAMP to derive the cost of equity. Re=6. 83% + 1. 30 (14. 1% 6. 83%) = 16. 28% Equity Market Capitalization: is the price pre-bid (as Of 14/10/1996) (assuming the remaining the same due to no activity) multiplied by the number of shares in the market (77,628,000) (Exhibit 2). Equity market capitalization is $5,51 1 Leverage Ratio as of SQ 201 6: assuming the leverage ratio is constant going forward and the leverage ratio is net debt / (Equity market capitalization) = 206115511. 588 = 37. 3% Debt beta: since the debt leverage ratio is rather low, I would assume that debt beta equals O UN- levering Contrails Beta: Unlearned beta levered beta / (1+ ratio) 1. 3 / (1 + 0. 65 * 0. 373) = 1. 046 Identifying interest rate of the debt: assume that the debt rating can be identified using the interest coverage ratio. Below is the table from ONLY Stern (http://pages. Stern. You. Due/-?dammar/New_Home_page/ dateable/ratings. HTML) Assuming that rating of the debt is determined using the last year (1996) for rating going forward. The credit rating of Conrail Bond is A, hence its interest rate is 7. 71 % Assumption about the credit rating of Contrails Debt: the future merger between Conrail and either of CSS and Norfolk Southern likely to improve the Coverage Ratio, hence likely to improve the credit rating of the debt. However, since the success of the merger really depends on Surface Transportation Board decision of competitive access to certain key markets. Hence, from the perspective of the bank, it is highly risky and the bank is not likely to upgrade the debt rating. Also, since after the merger, both acquirer and acquirer become one company, the bank is likely to kick at both to decide the debt rating. Since this involves lots of assumptions, would assume that no financial synergy is achieved by the merger with either acquirer. Standalone Equity Value of Conrail: assuming that the market is efficient, and the market price of Conrail fully reflects the fundamental of business. Equity Value of Conrail in this case is then $71 , which is on 14th October 1 996 the day prior to CSS-Conrail announcement. A CSS Merger Growth Rate: assuming the synergy cash flow grows at the inflation rate of 3% beyond year 2000 (as explained above) Discount Rate for the merger CSS: I would assume that there is no debt attached to the synergy. Also, since I do not have the information CSS share volume, the unlearned beta of CSS cannot be calculated. Therefore, I would assume the unlearned beta is the same for both CSS and Conrail. Hence, I would use the Contrails cost of unlearned equity to value the merger as below: = 6. 83% + 1. 046 * (14. 10% 6. 83%) = 14. 43% Valuation Without opportunity cost of losing the bid Terminal Value as of 1 996 = [488. 80 * 1. 03 / (0. 1443 factor of year 5 = $2,245 million Opportunity cost of losing the bid Terminal value as of 1 996 [127. 4 * 1. 03 / (0. 1458 factor of year 5 = -585. 14 million Value of equity value/share of Conrail from the point of view of CSS: Pre-merger: $71 synergy: (871. 02 + 2245) / 90. 5 = $34. 4 Opportunity Cost: (222. 7 + 585. 14)/90. 5 = $8. 92 Total Offer Price: SSL 14. 6 B Norfolk Southern Merger not have the information Norfolk Southern share volume, the unlearned beta of Norfolk Southern cannot be calculated. Therefore, I would assume the unlearned beta is the same for both Norfolk Southern and Conrail. Hence, would use the Contrails cost of unlearned equity to value the merger as below: = 6. 83% 1. 046 * (14. 10% 6. 83%) = 14. 43% Terminal Value as of 1 996 = [442 * 1. 03 / (0. 1443 0. 03)]*Discount factor of year 5 52030 Opportunity cost Of losing the bid Terminal Value as of 1 996 = [-208 * 1. 03 / (0. 1443 0. 03)]*Discount factor of year 5 = -$955. 33 Value of equity value/share of Conrail from the point of view of CSS: Pre-merger: $71 Synergy: (776. 6+2030) / 90. 5 $31 opportunity cost: (387. 95 + 955. 33)/90. = $14. 84 Total Offer Price: SSL 16. 84 Please note: the equity values of Conrail calculated above are absolute maximum value that both CSS and Norfolk Southern will pay for Conrail since the gain in revenue from competitor is highly risky, subject to the decision of SST B. Technically, the discount rate should be higher and probability should be applied on this portion of incremental synergy. Part b) Contrails Market Capitalization as a standalone value Pros Since Conrail is rather large company, I would assume that it is w ell covered by analysts and practitioners in the financial market. Hence, it can be safely assumed the market is efficient and the price of Conrail is fundamentally reflected in its price Easy and quick way to determine the value of Conrail Cons The market is highly fluctuated dependent on Stage Of the market Ignore the control premium since the stock price does not assume the control power of the stock owner There might be information available to the acquirers but the market is not aware of. Therefore the market price does not reflect the information Question 4 The stand-alone bidders, CSS and Norfolk would value the target, Conrail, based on its fundamentals, however if both bidders are present they would enter price wars and legal battles, therefore this would inflate the offered price for the target. In particular the acquirers have to take into account of the opportunity cost of losing the bidding war (I. E. Losing significant proportion of their revenue going forward). According to our analysis, the value Of opportunity cost of losing the bid war can be as high as 13% of total offer price (calculated in SQ). In this case, although the synergy impact between Norfolk and Conrail is lower compared to that with CSS, the value of opportunity cost of Norfolk losing the bid is significantly higher, which brings Norfolk potential offer price higher than that of CSS (116. 84 vs.. 114. 36) calculated in SQ. If they were stand-alone bidders, Coxs potential offer price is significantly lower (105. 44), and Norfolk offer price is c. 02. However, since CSS, Conrail and Norfolk are in mature market with high concentration of market power, I believe the bidding war is naturally the product of this market structure. Question 5 CSS Friendly Offer: Two-tiered transaction of the purchase 90. 5 Mil lion Conrail Shares (acquisition shares) Inc. Apron. 1. 3 million common shares owned by management and directors. 1 CSS to pay USED 92. 5 per share on cash for 0% of Contrails acquisition shares (Front-end offer) to be completed in 2 stages (regulatory reasons) a Stage 1: CSS to acquire 19. 7% of the shares (17. 86 million shares at USED 92. 5 per share) b stage 2: CSS to acquire 20. % of the shares (after shareholders approved the deal) The reason why the front-end offer was split as such is given Pennsylvania Business Corporation Law in which Conrail Shareholders would be required to opt-out of the Pennsylvania Statue before CSS could purchase more than 19. 9% of the shares. For the opt-out vote, CSS had 17. 86 million shares from the first-stage tender offer, management had 1. Million shares and employees trust had 13 million shares. Since management was in favor of the merger, parties in support had 35. 5% of the acquisitions shares and would require another 14. 6% to vote in f avor of theopt-out for it to pass. Following shareholders approval it would be possible to complete the second cash tender offer. 2 Following cash tender offers, CSS would exchange shares in ratio of 1. 8561 9:1. (CSS:Conrail) for the remaining 60% of Contrails Shares (back-end- offer). The back end offer is calculated by multiplying the ratio with the Coxs closing price on the bid announcement day. A Based on closing price on the id announcement day, blended value of CSS was USED 86. 77 per share (23. 5% premium over Contrails pre-announcement stock price of USED 71. 00) b 06/11/1996 CSS increased front-end offer. In 19/1 2/1996 CSS increased back- end offer. 16/01/1 997 was the eve of shareholder vote The blended value in Exhibit 8 is calculated by weighted average affront-end and back-end offers: The blended value was adjusted in 19/12/1 996 and 16/01/1 997 to reflect the completion of Coxs first stage tender offer. Blended value idea is to have a single value of the combination of both the front-end and back-end offers given they were done with different set of eights (40% and 60% respectively). Its major limitation is that it calculates both Front-end and Back-end offers on the same day ignoring the time element. The time element is essential for a correct valuation given there are a set of events that need to happen in between the first cash tender offer from the front-end offer until the back-end offer and hence both would happen on a different set of dates. The back-end offer is sensitivity to the time because it is reliant on prices given its proposition to exchange of shares based on a ratio. Question 6 CSS intended to take control of Conrail through a combination of financial orientations, deals with management and limiting Contrails susceptibility to other acquisitions. By definition, the most important aspect of the aqua session was through the ownership of Conrail stock. However, in order to make the acquisition easier for CSS, CSS wanted to control access to Conrail. CSS tried to do this by placing barriers to prevent Conrail from back-tracking from the deal, such as: A breakup fee of $mm in the event Conrail chose not to proceed with the takeover. The breakup fee is a crude and obvious deterrent for Conrail, as well as for any new potential bidder. It would no longer make sense for Conrail to pull out of the agreement unless it discovered it would be more than $mm worse off if the deal went ahead -? which was highly unlikely. The deterrent for any new bidder is that they would now have to beat Coxs offer by $mm in order to become more attractive for Contrails management to choose their new bid. Offer of 15. Mm newly issued lock-up shares to CSS at the same price as the initial Front-End tender. This reduces many of the fees and complications associated with purchases on the stock exchange. It also means that this 20% of stock would not be subject to shareholder whims and s a certainty to CSS regarding how it will obtain 20% of the required shares. It made sense to exercise the option only if shareholders voted to opt-out of the fair value statute (described below), because if shareholders did not opt out of the fair value statute, common stock to the value of 20% of Conrail would have been needlessly created. If CSS purchased shares that were already outstanding, they could simply resell them on the open market, and Conrail would not have created these additional shares. Conrail suspends Poison Pill option to offer new shares at 50% discount in order to protect itself against an unsolicited takeover. This mitigates one of Contrails biggest threats against Coxs ownership. Should there be a change in management that is no longer willing to proceed with the takeover, the poison pill option will no longer be available to deploy. A no-talk clause, which prevents Conrail from entertaining other bids. This clause is valid unless it interferes with the boards fiduciary duty to shareholders (and if it seems unlikely that CSS would be able to complete the deal). Conrail board members, to an extent, had license to define Fiduciary Duty as they pleased, and since the board had already agreed to the CSS bid, Norfolk would have to replace board members in favor of the deal. This would be difficult, since Conrail had a classified board, which meant only a third were up for election each year so it could take years before the decision to go with CSS was overturned by which time the CSS deal would have been consummated. Further complications to the deal were Pennsylvania Business Laws. Coxs bid to take control of Conrail included a Front End offer to purchase at $11 0 per share with cash, 40% of the shares it needed to take control. The Back End offer was to exchange the remaining 60% of the shares it needed, or shares in the new company at the rate of 1. 85619:1. 0 plus a further $16 of new convertible preferred stock. This created a blended value to the Back End of $105. 07 per share. The difference in prices (SSL 10 vs. $105. 07) meant that the bid was subject to a Pennsylvania fair value statute, which stated that an acquirer must tender all shares at the same price. An acquirer cannot tender at different prices, unless shareholders explicitly vote to opt out of the fair value statute. CSS now had to persuade Conrail customers to vote to opt out of this statute. It attempted to do this by running adverts in financial newspapers hampering its proposed takeover.

Book festival Essays

Book festival Essays Book festival Essay Book festival Essay Book festival grant seeking is tricky, but it can be done. What is important is that those who seek grants follow the established protocol for applying for funding. It is first necessary to do an analysis of all the areas of the festival in order to find out precisely what will be needed. This includes personnel, advertising, venue, and the books themselves. After this, it is necessary to determine the costs of these components. For example, will you need to hire people to run the different stalls of the festival, or will you have volunteers? Will you have to buy the books, or will they be donated? These things will give an idea of precisely how much money will be necessary to make the festival a success. The results of this research and planning will give an idea of which organizations to solicit for grants. For example, if the books at the festival are academic, then perhaps academic institutions might be interested in offering funding. If the books are technological, then it would be of benefit to technology firms to have people become literate in those areas, so they might be interested. A good idea is to have a wide variety of books so that the festival might appeal to a wider range of granting bodies. Once these areas have been researched, the findings must then be compiled into a detailed and professional grant proposal. Be sure to include detailed financial information concerning how the funds will be used to run the festival and how the proceeds will be shared among beneficiaries. It is also important to note that these funding bodies usually have detailed timelines concerning precisely when proposals must be submitted. A part of professionalism is punctuality and accuracy. Respecting the rules provided by these granting institutions will make it easier for you to acquire the funds necessary for the success of the festival.

Academic Fraud : Student Athletes

about the students and their academics. Students put time and effort while they continue to stay on the right path. Our professors are important too. They are the reason that students have the opportunity to move up to the next level. They teach students what they need to know such as skills and character. The main thing we forget to recognize is the administration of higher education. Our administrations make good leaders. They work with our students as a team to help our students become responsible†¦ The NJCAA has had a huge impact on the leadership of collegiate athletics through academic and athletic opportunities for the student-athletes. The National Junior Collegiate Athletic Association (NJCAA) has done a remarkable job in providing eligibility criteria that demand institutional and student accountability. The eligibility criteria is highlighted with the exclusive right for the student-athletes to be part of a unique demographic of 525 schools, separated into 24 regions, and three divisions†¦ this topic is to recognize what I believe to be a problem, so that it can be mended in order to improve the perception of sport. I believe there is an issue with universities and the athletic department’s mindset towards the academic success and livelihood of their student athletes. Higher education programs and governing bodies don’t provide have enough concern of the athlete’s education and livelihood when concerning: encouraging the enrollment of ‘easy’ or ‘fake’ classes, purposely changing grades†¦ taught to embers my title as a student scholar athlete. Being a student-athlete is one of the most rewarding and stressful things ever. You need to keep up various exercises at one time, including the way that you need to keep up a specific GPA to be qualified as a competitor on any group. Being part of a basketball, football or volleyball team requires practice every day, weight training, or fundraising, meeting with coaches, conditioning and more. Student’s athletes have much more to prioritize†¦ Brent Perry Mr. Hale Engl. 1301 24 October 2014 College Academics and the Student Athlete Historically, sporting events have played a huge role in the American culture. Most kids grow up aspiring to be just like their heroes on the field; however, the harsh reality is that roughly only 6.5% of high school athletes will go on to play their sport at the collegiate level and even fewer will play at the professional level. Over the past few years, the qualities that collegiate coaches look for has†¦ Are colleges doing enough to prepare student-athletes to be successful in life? Are students benefitting or are universities exploiting? Colleges are monetarily thriving from the talents of athletes. A numerous amount of these athletes are only recruited for their physical talents and many of them are not academically up to par. Although academic institutions claim to procure means to aid athletes in the classroom, there are still vast conundrums plaguing society concerning the miseducation of these†¦ Vishal Patel English 104 April 26, 2012 Pay Student Athletes The word student-athlete refers to a student who is playing a sport in college and receiving scholarships in return. On the surface, most people sees great athletes getting a free education, but they deserve more than just free education such as extra rewards and benefits since the college, the conferences and the NCAA are making billions of dollars off of them. To be in a nationally televised game or making deep runs in tournaments†¦ In the article â€Å"Examining Academic and Athletic Motivation among Student Athletes† I found some very interesting details about student athletes, that I had never known about before. Being a student athlete myself I know how difficult it is being in season and trying to get all the work done you need for my classes. It is very difficult to show up and get my work done on time during season because of the constant traveling my team does during the week. I find myself missing classes every other day†¦ The Student as an Athlete The student athlete is a term often used to describe a member of the student body at an institution as well as a member of one of the schools athletic teams. This is not a label that includes students who play recreational sports during their leisure time; this term is used for those students who split their time between athletics and academics. In the beginning of inter-collegiate competition and even now the governing body the NCAA (National Collegiate Athletic†¦ Case Analysis 9.15: Academic Fraud The following is a case study analysis of Case 9:15 Academic Fraud. This particular case involves, three individuals, one of which is a graduate student by the name of Sam. Sam is currently in his second year of his master’s program. The second individual mentioned in this case is, Dr. Milton. Dr. Milton is a very thorough and caring mentor at the same university that Sam is attending. The third individual mentioned in this case, serves a pivotal role to†¦

Chronic Obstructive Pulmonary Disease Essay Example | Topics and Well Written Essays - 5000 words

Chronic Obstructive Pulmonary Disease - Essay Example Generally, the ultimate goal is to present a case study on a chosen patient which is diagnosed to have COPD. The case is then presented and analyzed on the basis of the physiological functions, the effects on the systemic balance of the patient, the probable care required while taking into consideration of the history and past ailments of the patient. The prevalence of lung diseases is considered as one of the concerns of the present generation of medical care. One of the respiratory diseases that cover a variety of ailments and symptomatic indications is the Chronic Obstructive Pulmonary Disease (COPD). The disease commonly includes lung deficiencies such as chronic bronchitis, emphysema or overlapping cases of such diseases. This disease mainly involves the increasing malfunction of the lungs mainly due to building up impediment in the respiratory passages (National Heart, Lung, and Blood Institute or NHLBI, 2003). One of the leading causes of Chronic Obstructive Pulmonary Disease is the increasing amount of pollutants in the atmosphere and high percentage of smokers. The data gathered from study of cases related to COPD is limited but it can be surmised that due to the fact that the exposure to agents causing this ailment is relatively high, the cases of recorded COPD is only a small portion of the actual number of those affected. Based on general studies on the exposure to smoking in particular that reaches to 1.2 billion of the world population, the susceptibility of the population is related to this total number (Davis and Novotny, 1989; Sharma, 2006). Causes of Chronic Obstructive Pulmonary Disease To specifically present the possible causes of Chronic Obstructive Pulmonary Disease factors such as causative agents and susceptibility to the disease are presented. Causative agents are cigarette smoking and air pollution. On the other hand the contributing factor such as airway hyper responsiveness and Alpha1-antitrypsin deficiency are also important. These two factors determine the risk that a patient faces in relation to COPD (Sharma, 2006). One of the main reasons for the incidence of COPD is smoking. Of the recorded cases of COPD gathered from hospital records, 15% are caused by cigarette smoking. The severity of the condition and in relation to the mortality can be attributed to factors such as the age that a patient started smoking, the rate of smoking and even the exposure to other smokers. The factor such as continued smoking even in the incidence of observance of the possible indications of COPD is also considered. The highest proportion which is 90% risk of rate can be attributed to tobacco consumption. The non-smokers that are in close association to the smokers are also in great risk of acquiring lung diseases which includes asthma and deterioration of the lung processes. The pollution in the air is another causative agent in the onset and progressive development of COPD. Although this is the case, there is less effect when compared to smoking. Smoke and other particulates in the atmosphere along with the house hold consumption of fuel also contribute to the increasing incidence of lung ailments (Sharma, 2006). The susceptibility of the patients to respiratory ailments can also contribute to acquisition of the disease. The "hyper responsivene

Labeling Research Paper Example | Topics and Well Written Essays - 1500 words

Labeling - Research Paper Example While labeling theory is not as popular as it once was, it has not been completely discredited as a way to understand how social processes lead to deviant behavior. Labeling Theory & Who Labels Whom? Labeling theory argues that just observing the delinquent, or its characteristics, will not provide a whole image of deviance or crime. A complete picture has to include community/society responses to such incidents (Traub and Little 291). Labeling theory is used as a way to understand deviant behavior, including crime, as a consequence of social differentiation processes in which some of society's members are singled out, identified, and defined as deviant, while others are not (Traub and Little 289-295). The causal proposition of labeling theory is that the act of treating a person as a deviant, in itself, can lead to deviant behavior on the part of that person. The punishment of deviant behavior often has an ironic effect: efforts at social control lead to decreased control (Schur 10) . Social definitions of deviance and their accompanying social sanctions somehow pressure labeled individuals into further deviant behaviors. Loosely speaking, a "label," or, a definition of a person as deviant, may be thought of as an independent variable, or, a cause of deviant behavior (Akers 121). The process by which a person is labeled as deviant may be summarized as follows. First, an act is deemed as deviant. Second, the person committing the act is deemed as deviant. And third, a moral condemnation is placed upon this person (Traub and Little 289). According to labeling theory, then, reactions to criminal behavior should be considered at least as important as the behavior itself, if not more. Labeling theory took a lesson from Kai Erikson (p. 11), who argued that the "social audience," not the individual, is the critical variable in studying deviance because it is the audience who decides which acts, or types of acts, deserve the deviant label. In their coverage of labeling theory, Traub and Little (p. 290) wrote "it is the definition of an individual's behavior as deviant, rather than the behavior itself, that can cause a marked change in status which transforms a person's conception of self and initiates the process of locking that person into a 'deviant career'." Thus, it is the community and authority figures such as the police, judges, teachers, parents, and psychiatrists, who label persons as "criminal," "delinquent," "bad kid," "mentally ill," "poor student," and so on. Consequences of Labeling Labeling theory argues that public deviant labeling can have a profound impact on the ability of the labeled person to participate in mainstream society. In one sense, this is an all-too-obvious observation. Societal sanctions have obnoxious effects for the offender of social norms. This assumption is central to the classic school in criminology, namely the deterrence approach to crime and punishment (Gennaro 196). This perspective argues that being caug ht and punished for a crime should decrease one's future rate of offending. Punished individuals should tend to desist from crime to avoid the pain of punishment in the future. However, in direct contrast to this traditional view, labeling theory points out that the ability of the individual to engage in rational decision-making is not the only relevant factor in determining the consequences of punishment. Labeling theory looks beyond individual-level processes and

Declaration of Independence day Term Paper Example | Topics and Well Written Essays - 500 words

Declaration of Independence day - Term Paper Example The independence day of the United States is celebrated on July, 4 as approved by the congress. The interpretation as well as sources of the declaration has been subject of scholarly evaluation and request even as the original version is displayed at the national archives in Washington, D.C. (Bond, September, 1). The most important and dominant theme of the document is, perhaps, the founding fathers’ vision and dream for the country as a democratic powerhouse in the global scene. True to their vision, the country has worked on many fronts to make a nation based on outlined democratic principles such as equality, right to life, liberty and a chance to exercise the pursuit of happiness (Armitage 22). The declaration highlights the American orientation to democratic foundations. It is clear that Jefferson represented the will of the American leadership. The retention of the resolve to protect â€Å"self-evident† principles of human life and social health, democracy was cultivated in the country’s long journey to success. The right to life is a fundamental truth in the American dream and as demonstrated in various national policies that ensure the protection of life, the country has made tremendous steps in establishing institutions to protect life. Provision of important li fe protection services offered by the federal government in relation to such subjects as food, shelter, income and healthcare are illustrations of how the culture of life is protected to date (Armitage 22). In view of how liberty was envisioned and implemented to date, America has a long journey. Political liberty is perhaps one of the most celebrated principles in America and as envisioned in the Declaration of Independence, the country rose to set an enormous standard for others to emulate (Bond 3). Through model governance structures and an impressive track record for accommodation of divergent views, America borrows a lot from the

Managerial Decision in Economics Research Paper

Managerial Decision in Economics - Research Paper Example The study tries to unearth some of the aspects of managerial economics towards the decision of hiring by evaluating the various micro economic factors relevant to the case so as to formulate a set of plausible recommendation on this crucial aspect of managerial decision making. Definition Hiring of workers largely depends on the dynamics of the demand and supply aspects of the economy and the market. In a perfectly competitive market the hiring of labor is largely determined by the intersection point of the demand and supply curve of labor. The wages of these employees are also determined by the intersection of demand and supply for labor in a market. The demand for labor is numerically equal to the marginal revenue labor product. The marginal revenue product refers to the total increase in the firm’s revenues that occurs due to the aspects of hiring a new labor or other resource that is largely variable in nature. The demand for labor is largely determined by the consumer dem and for gods and services for a firm. This constitutes the derived aspects of determinant of the demand for labor. The labor supply curve shows the number of laborers that are willing towards working at specified rates. A firm operating in perfect market conditions hires workers until a point when the wage rate of laborers becomes equal to the marginal revenue product (Tucker, 2008, p.191). In order to tide over situations of increase in demand in the market firms normally resort to hiring of temporary workers to tide over the need for increased supply of workers to meet the equilibrium. However this does not appear be a formidable solution as the demand of products is likely to stabilize and that the company would need extra laborers to satisfy the customers. Hence it would be better to hire new permanent workers that would be beneficial in the long run. Factors or Costs Costs form the most important aspect for companies while undertaking a hiring decision. Most often business orga nizations take up a cost benefit analysis of the marginal cost of hiring a labor with the marginal benefits being offered by the hiring of a new additional worker. The main aim of a business organization is to make profits to satisfy its shareholders. Hence analyzing cost becomes important while undertaking a decision to hire a new worker. Firms undertake a hiring decision when the marginal benefit becomes greater than the marginal cost. Employing an additional resource in the organization would lead to the generation of an additional unit of output. However firms must realize that profit comes from marginal revenue and not marginal output. This calls for a delicate balance between marginal benefit and marginal cost. Only under conditions of the marginal revenue increasing a firm takes a decision to hire a new worker. In other words the marginal revenue product must be equal to the value marginal product (Gwartney, Sobel & Macpherson, 2006, p.537-539). Figure 1: Demand Curve for New Resource (Source: Gwartney, Sobel & Macpherson, 2006, p.539) The figure above shows the labor demand curve as a function of the cost of hiring a resource. The curve provides an idea about the marginal revenue product of a particular resource employed by an organization. The graph takes a downward movement as the marginal product would fall as the resource is used

Emerging Business Themes Essay Example | Topics and Well Written Essays - 2750 words

Emerging Business Themes - Essay Example However, the brand has taken on some decay with evidence of human rights violations being committed in the factories that are supplying the product There is some evidence that these violations have occurred without Nike having created any attempts towards improvements on their own in order to increase their profits. While Nike promotes its goods under the brand mythology of good health, environmental awareness, and a sense of a social conscious, there has been a significant number of reports of human rights violations that violate these representations. The Nike corporate website has a great amount of detailed information regarding codes of operation and codes of ethics that create an image of corporate and social responsibility. The following code of ethics is on the website, creating a specific structure in which social responsibility is promoted. Our code of ethics for employees is called Inside the Lines; it defines the standards of conduct we expect of all our employees. Every y ear, employees are required to verify that they have read and understand Inside the Lines. We operate a global toll-free Alertline for employees to report in confidence any suspected violations of the law or our code of ethics. Any reported concerns around accounting, auditing or internal control are communicated to the Audit Committee of the Board. We expect our suppliers to share our standards and to operate in a legal and ethical manner. While Inside the Lines covers the behavior of Nike employees, our Nike Code of Conduct covers contractors who manufacture Nike-branded products. It directs them to respect the rights of their employees, and to provide them with a safe and healthy work environment.2 The framework that is provided by this code allows for a revelation about the intentions of the company to emerge, which is then countered by the actions that the company has made. As the company has taken advantage of the global marketing opportunities, it has also taken advantage of the lesser regulatory practices in labour, thus putting the company into a paradox against its own branding. While there have been a great many advances in Nike towards behaviours that are more socially responsible, the company still has the shadow of irresponsibility on a global level, thus creating a taint on the brand. Sustainability There are a great many ways in which the word sustainability can be used towards creating socially responsible organizations. Environmental sustainability is one of the most ways in which sustainability can be defined. As well, social responsibility in the way in which employees are treated, the issues of human rights made a priority within an organization, is another way in which sustainability is achieved. According to Bitsch, â€Å"Social sustainability is typically broadly defined to include human rights and social injustice, corporate governance, and labour rights and treatment†.3 Furthermore, a business is responsible to keep up on the l atest interpretations of human rights and to adhere to keeping safe and secure those workers who are under their management.4 Nike has had serious issues regarding violations of human rights issues and more so concerning violating the spirit of correcting those issues. In Bulgarian factories, when serious human rights

Non-transportation Uses of Oil Research Paper Example | Topics and Well Written Essays - 3750 words

Non-transportation Uses of Oil - Research Paper Example though oil presents with various dangers, when used appropriately it can bring about benefits which cannot be gained through other products and non-transportation activities. Oil is defined as â€Å"any of a large class of substances typically unctuous, viscous, combustible, liquid at ordinary temperatures, and soluble in ether or alcohol but not in water: used for anointing, perfuming, lubricating, illuminating, heating, etc.†1. This definition is very broad and encompassing, therefore it does not only include oil used for fuel and for transport, but it also includes other kinds of oil of varying viscosity, utilization, and application. There are two main types of oil, namely, organic and mineral oils. Organic oils are produced by plants and animals through their natural metabolism. Lipid is the term used to define the fatty acids and other substances from oils produced by living things with oil being the general mixture of the various chemicals2. These oils have chemicals, as well as other lipids, proteins, and alkaloids3. These lipids can be identified based on how they are made, as well as their chemical make-up and their water solubility in r elation to oils. These lipids may be high in carbon and hydrogen and may be lacking in oxygen as compared to other compounds and substances4. They may also be nonpolar molecules, and may also include polar and nonpolar qualities, especially in the case of phospholipids and steroids5. Mineral oils on the other hand, include crude oil or petroleum oil, including its more refined elements known as petrochemicals6. Crude oil comes from fossilized organisms including algae and zooplankton which, after undergoing geochemical processes, turn into oil. They are mineral oils because they generally do not have organic beginnings and are instead derived from rocks, sands, and underground traps7. Some distillates of crude oil are also classified as mineral oils. Organic oils have many uses. Most of these oils are not

Emerging Business Themes Essay Example | Topics and Well Written Essays - 2750 words

Emerging Business Themes - Essay Example However, the brand has taken on some decay with evidence of human rights violations being committed in the factories that are supplying the product There is some evidence that these violations have occurred without Nike having created any attempts towards improvements on their own in order to increase their profits. While Nike promotes its goods under the brand mythology of good health, environmental awareness, and a sense of a social conscious, there has been a significant number of reports of human rights violations that violate these representations. The Nike corporate website has a great amount of detailed information regarding codes of operation and codes of ethics that create an image of corporate and social responsibility. The following code of ethics is on the website, creating a specific structure in which social responsibility is promoted. Our code of ethics for employees is called Inside the Lines; it defines the standards of conduct we expect of all our employees. Every y ear, employees are required to verify that they have read and understand Inside the Lines. We operate a global toll-free Alertline for employees to report in confidence any suspected violations of the law or our code of ethics. Any reported concerns around accounting, auditing or internal control are communicated to the Audit Committee of the Board. We expect our suppliers to share our standards and to operate in a legal and ethical manner. While Inside the Lines covers the behavior of Nike employees, our Nike Code of Conduct covers contractors who manufacture Nike-branded products. It directs them to respect the rights of their employees, and to provide them with a safe and healthy work environment.2 The framework that is provided by this code allows for a revelation about the intentions of the company to emerge, which is then countered by the actions that the company has made. As the company has taken advantage of the global marketing opportunities, it has also taken advantage of the lesser regulatory practices in labour, thus putting the company into a paradox against its own branding. While there have been a great many advances in Nike towards behaviours that are more socially responsible, the company still has the shadow of irresponsibility on a global level, thus creating a taint on the brand. Sustainability There are a great many ways in which the word sustainability can be used towards creating socially responsible organizations. Environmental sustainability is one of the most ways in which sustainability can be defined. As well, social responsibility in the way in which employees are treated, the issues of human rights made a priority within an organization, is another way in which sustainability is achieved. According to Bitsch, â€Å"Social sustainability is typically broadly defined to include human rights and social injustice, corporate governance, and labour rights and treatment†.3 Furthermore, a business is responsible to keep up on the l atest interpretations of human rights and to adhere to keeping safe and secure those workers who are under their management.4 Nike has had serious issues regarding violations of human rights issues and more so concerning violating the spirit of correcting those issues. In Bulgarian factories, when serious human rights

Drug Testing Welfare Recipients Essay Example for Free

Drug Testing Welfare Recipients Essay Welfare is the provision of a minimal level of well-being and social support for all citizens, sometimes referred to as public aid. In most developed countries, welfare is largely provided by the government and to a lesser extent charities, informal social groups, religious groups, and inter-governmental organizations. There are 12,800,000 people on welfare in the United States. 46,700,000 are on food stamps, 5,600,000 are on unemployment insurance. The total government spending on welfare is $131. 9 billion, not including food stamps or unemployment (Welfare Statistics). As of April 17, 2013 29 states have proposed legislation requiring some form of drug testing or screening for public assistance recipients in 2013. Eight states, Arizona, Florida, Georgia, Kansas, Missouri, Oklahoma, Tennessee and Utah, have already passed legislation regarding drug testing or screening for public assistance applicants or recipients. States have proposed drug testing of applicants and recipients of public welfare benefits since federal welfare reform in 1996. In 2009, over 20 states proposed legislation that would require drug testing as a condition of eligibility for public assistance programs, and in 2010 at least 12 states had similar proposals(Drug Testing and Public Assistance). Data from Utah has shown Utah spent more than $30,000 dollars from August 2012 to July 2014 to screen welfare recipients, but only twelve people tested positive. 250 people failed to meet drug screening requirements and were banned from receiving or applying for benefits for three months. Those people would have received more than $350,000 in benefits. Utah’s law does not disqualify people who test positive from benefits, but instead requires them to enter substance abuse treatment. (Utah’s Welfare Drug Testing Saved More than $350,000 in First Year, Officials Say). Robert Rector, senior research fellow in domestic policy at Heritage foundation and leading authority on the welfare system, also believes people receiving welfare should be drug tested. He says, â€Å"Taxpayers should provide support to those in need; recipients, in return, should engage in responsible and constructive behavior as a condition of receiving aid. †. Almost 20% of welfare recipients report recent use of some illicit drug. (Key Research Findings). Robert also says, â€Å"Scientific evaluation of Florida’s drug-testing requirement showed that welfare recipients who used illegal drugs had earning that were 30% lower than those who did not. Quite simply, drug use was linked to lower levels of work. † Peter Cappelli, who is the George W. Taylor Professor of Management at the Wharton School and director of Wharton’s Center for Human Resources, says that police already have the right to require drug test when there is probable cause. Peter states that people do not choose to be on welfare, unlike kids who play football at a local high school. Peter also goes on to say that the children are potentially affected by the drug testing. Kansas’s SB 149 bill says, â€Å"If an applicant for a recipient of cash assistance is ineligible for or terminated from cash assistance as a result of a positive test result for unlawful use of a controlled substance or controlled substance analog, and such applicant for or recipient of cash assistance is the parent or legal guardian of a minor child, an appropriate protective payee shall be designated to receive cash assistance on behalf of such child. †(United States Cong. ). Many who have proposed drug testing those on welfare proposed to require drug testing when reasonable suspicion exist(Drug Testing Public Assistance). The United States should test those on welfare and other benefit programs. The amount it would cost and amount of money that could be saved could help lower the nations national debt. If Utah can save $350,000, the United States as a whole could save even more.

Russian Standard Vodka Strategies For Global Markets

Russian Standard Vodka Strategies For Global Markets Introduction Roustam Tariko, founder of the Roust Holdings planned to establish a brand that will set up new standards of world class quality for new breed of global Russian brands. Tariko focused on setting up the standards by a product which is distinctive because of its Russian Heritage so that Russians can take pride in it, and to fulfill this requirement vodka was the obvious option as it is developed in Russia and strongly associated with the country. Tariko launched the vodka and by 2002, Russian Standard was outselling all other brands achieving the top position in the vodka market. This success of the Russian brand was attributed because of its consistent product quality, packaging, and merchandising and of course because of its strong depiction of Russian heritage. Encouraged by its success, Tarikos management launched the Russian Standard in the European countries aiming to make it the best vodka globally. Russian Standard vodka was making business in around 10 European countries, the company wishes to enlarge the business by further crossing the boundaries by entering into the US Market. Vodka is very famous in the US; it has a huge market, largest around the globe and there are many best selling companies which offer premium quality vodka. Launching Russian Standard vodka in US would mean high competition with the already existing brands that are quite popular among customers. The Russian Standards also expanded the list as Tariko decided to launch a new type of bank which will serve foreign trade companies, small business and individual customers. The challenge faced by the Russian Brands team was to make the two diverse businesses compatible with each other while maintaining the standards of the Russian Brand. The report presents a brief overview of the brand equity concept of the Russian Standards and the reasons behind its success story, discusses the horizontal brand diffusion in terms, and also debates over the possibility of launching Russian Standard in US and whether it needs to change its strategies to attract the customers. Brand equity is considered to be a crucial source for profitability. A firm with strong brand equity can have a significant edge in the market as compared to its competitor. It can be able to charge higher prices with its brand image backing it up. The firm can also enjoy a larger market share, a possibility of further product extensions and even draw more investment into the existing business. This is the reason why in the present world, branding or brand image has become a very important strategic issue for businesses. Businesses such as Pepsi, Coca Cola, Ralph Lauren, Nestle etc have very strong brand equities, because of which they are able to enjoy huge market shares as well as the ability to price their products higher than what they would have if they did not have their respective brand names. Brand equity is the value of a company which is only because of its name. As observed by Dr. Ramachandran (2010) brand equity is the outcome which is attributed to the products brand name as compared to the same product without a brand name. Due to the benefits strong brand equity can provide, every corporate entity works their utmost to excel others in the retail sector. However the question arises that what makes a brands equity stronger than it is? According to Kellers (2003) brand equity pyramid, there are mainly four steps and six building blocks which establish a consumer based brand equity for a firm, namely; Salience (identity), Performance and Imagery (meaning), Judgments and Feelings (Response) and finally Resonance (relationship) (Appendix 1). These are the steps at which the consumer asks respective questions related to the firm, and each step leads onto the next until the consumer places complete confidence in the firm, and thus the firm is able to acquire strong brand equity. This model by Keller (2003) can be used to explain how the Russian Standard brand was able to establish strong brand equity and how this brand equity helped the company to gain commendable success in Russia. Brand Salience The very first step in the pyramid is that of Salience, or identity. This is the step where the consumers ask the firm or product, who are you. This means that when a firm is introduced in the market, the firm establishes distinct identity. It establishes its association to a particular product class, i.e. consumers consider the firm/product according to this distinct identity. Brand salience can be defined as to how often and easily the brand is evoked under various situations and circumstances? (Keller, 2001) The beginning of the Russian Standard brand was with a mindset that its products were to be established in such a way which would be able to gain long lasting consumer association. The objective was to establish an exclusive product, which focused on Russian traditions. The brand identity established by Tariko was such that the Russian Standard brand was identified as the standard for Russians. The aim was to reach for the emotional aspect of consumers while they can relate themselves to the brand and claim pride in owning it. As the case study points out that the Russian Standard Vodka is identified as a traditional Russian souvenir, like matryoshka wooden dolls, Red Army captain watches, and lacquer boxes from Palekh (Grigorian, 2000). The intricate details taken into account in establishing the brand salience for the Russian Standard Vodka can be largely attributed to the brand equity that it enjoys today. Keeping the brand equity in order to build and protect the equity a brand positioned as a premium brand has to keep up with the expectancy by the consumers. For a premium brand the customer expectancy is not only from the quality of the product but it starts from the manufacturing to the pricing to packaging to delivering as well as to promotion (NetMBA). In all these levels a premium level of quality is expected. Russian standard has been careful in keeping quality at the utmost level while carrying out the four Ps. The product was produced with quality ingredients. The packaging was outlining quality in every aspect including meticulous details like design, labels, bottle caps and cases. The pricing was done to put the product in the premium to super premium category and the distribution was carefully laid out to acquire shelf spaces in fancy restaurants and night clubs and even in the highly perceived supermarkets. Brand Meaning Moving onto the next step of the Kellers pyramid, Performance and Imagery are what gives a brand its meaning in the minds of the consumers. The performance block includes all the principal characteristics of the brand, i.e. how well is the brand able to conform to the consumers psychological and functional requirements. This portion of the pyramid basically includes the basic features of the product, pricing, design, durability etc. Whereas, the brand imagery portion of the pyramid includes all the characteristics that are connected to the product, i.e. the products user profile, the values and history that the product reflect along with the distributional structure of the product(Keller, 2003). The Russian Standard brand was known for its quality, packaging and strong distribution channels. It was designed to be the first domestic brand to create a rich mosaic of imagery. It focused not only on quality but also on the price, packaging, merchandizing and communication. The Russian brand emphasized on depicting the Russian heritage to connect to the Russian customer and also achieve and ensure product quality that will attract the customers and make them loyal to the brand. The Russian major scientific institute which specialized on food research, in 1990s, along with Mendleev formulated a formula for vodka, this was patented to be exclusively Russian, it was considered a symbol of quality. The quality based on Mendeleevs recommendations of the vodka was of utmost importance to Tariko, which was then communicated to the people through extensive advertisement promotion, the designed bottle of vodka showed Mendeleves signature so that the customer will felt secure about the qua lity of the product. By establishing this strong connection of vodka with the Russian heritage, Traiko developed a certain sense of meaning and understanding among his customers that they were attracted emotionally and physiologically towards the Russian Brand vodka, and this sense of owning and connecting to the product not only attracted as many locals but also ensured their loyalty towards the product. Other than this, the Russian Brand also priced the product in a very appropriate way; the price was in support of its image as an exclusive brand. The vodka was priced more than other local brands, while still it was less expensive than the imported brands. This helped the Russian Standard Vodka to be recognized as an elite brand, in league with the imported brands; whilst at the same time it helped in gaining profits for the firm as well (Appendix 3) (Anselmsson, 2007). It mainly targeted the connoisseurs and strivers who preferred high quality products and prestigious brands. Moreover, the packaging of the Russian Standard Vodka was unique and fashionable. The exclusivity of the product and its other brand values was reflected by its packing. Attention was paid to every little detail of packaging of the vodka bottle; from bottle case to its cap and more importantly the shape of the bottle all were designed to emphasize on Tarikos objective of depiction of the Russian heritage and also ensure class and quality to the customers requirement and satisfaction. The packaging was designed by one of the top most design house, so that it would reflect the brands quality. The act of focusing on the packaging of a product was in itself something new for a business in Russia. Quality used to be the sole source of focus for a product, leaving the focus from pricing, packaging or the distribution channel, whereas, in modern marketing techniques, product, price, place, packaging and promotion make up the marketing mix for any product. Therefore, packaging was another on e of the major reasons for the Russian Standard vodka to acquire its brand meaning in the eyes of the consumers. Furthermore, the nostalgic touch to the packaging which reflected the value of the brand increased the brand meaning. The shape of the bottle resembled that of the traditional Russian orthodox churches, and there was a historical signature on the packaging as well.. This helped the consumers in establishing distinct brand imagery for the Russian Standard brand and relate to it. On the other hand, the strong distribution channel of the Russian Standard Brand also helped to setup its brand imagery. The Tarikos import business before the Russian Standard brand helped the new vodka to acquire advantaged shelf space as opposed to what it would have had in case Tariko had no prior reputation. Therefore, the beginning for the Russian Standard Vodkas placement in the market was privileged with supermarket promotions, access to prominent restaurants, clubs and bars. Brand Response The judgment and feelings of the consumers are the next building block. . This is basically the feelings and perceptions of the consumers about the brand (Keller, 2008). The brand judgment includes the brand quality, credibility, and differentiation. The quality includes the value or satisfaction the brand provides the consumers. The Russian Standard Vodka was trusted by the consumers for its quality. The advertised quality was supported by the actual quality of the product. The appropriate marketing mix helped the consumers to relate to the product. The idea of the campaign was to show a transformation from the previous Russian standards and the new ones. It was meant to create a modernized image in the minds of the consumers. However, this was not perceived as desired by many consumers. Most of the people thought of it as disrespectful to degrade Russian traditions no matter which era they belonged to and the message could not transfer to most people as well. So the campaign failed to communicate the intended premium image. It was designed for the international market but the response from the Russian market stopped it from being used abroad. It was not portraying the embracing the past and inspiring progress mantra the company was following. The feeling that was called upon by the advertisement within the consumers was such that they preferred using the Russian Standard Vodka as opposed to the imported brands. The brand acquired more appeal through its unique packaging and quality. The on-premise promotion on the other hand worked better for the company. It was promoted as a prestigious brand in restaurants and night clubs. The off-premise promotion was also carefully planned to portray its elegance by acquiring quality displays and shelves in the supermarkets. Brand Resonance The consumers in the modern times demand much more than just the functional benefits from a product. They demand intangible benefits such as image, status, personality, lifestyle, success and other factors that they can strongly relate to (Aziz and Yasin, 2010). The Russian Standard brand was one of the very first brands in Russia which used all these aspects into account when introducing its products in the market. Prior to this, quality and the product was the only consideration for the businesses. They believed in the supply making its own demand style of selling as opposed to the making a product in accordance to the demand of the people. However, the Russian Standard brand changed the traditional style of marketing and therefore was able to hugely benefit from rapid success in Russia. The Russian Standard brand used all the five Ps of the marketing mix to powerfully introduce itself in the market. From there onwards, it maintained its quality and built a solid name for itself by being consistent and innovative in promotion. The Russian Standard brand was able to establish a reputation which appealed to the consumers nationalistic sense. The idea was to create a strong consumer-brand relationship. Brand resonance can only be healthy if the consumers feel that they are in synchronization with the brands identity and values. Because of its patriotic look the brand was able to delve into the Russian market well. It was in complete harmony with the traditions of the Russian people. Therefore, from the analysis above, it can be said that the rapid success of the Russian Standard brand was not only because of the strong product quality they offered but also due to its right choice of marketing mix and most importantly its uphold with the Russian Identity. As the Roust Organization has already developed strong merchandizing and communication skills and relationships with the both kind of trades that is on-trade and off-trade, it was easy for the Russian Standards to be introduced to the consumers, but it was the Russian Standards strong conviction towards the brand equity that they become increasingly popular with the people and establish a certain kind of bond with them. It can be rightfully said that the success story of Russian Brand vodka emphasizes on all the aspects of the brand equity i.e. to establish brand salience and keep themselves intact with brand meaning to strengthen the bond with the customers keep counter check on the brand response and improve i ncase of any negativity and maintain the high standards, and last but not the least to provide brand resonance to the customers so they can feel pride in using the Russian Brand vodka. Thus it enjoyed rapid success and managed to maintain its position at the top, with these brand equity concepts followed it is today thought as to be one of the traditional Russian Souvenirs. Diversification Horizontal brand extension is one of the diversification strategies for the businesses. As can be seen in the Ansoffs matrix in appendix 2, when a firm increases its business into new products and markets, it is said to be diversifying its business. The benefits from diversification include, profitability, growth, reaping economies of scale if the diversification is within the same product range, avoiding dependence on a single product etc. Capitalizing on the equity of existing brands can produce many benefits for the company (Strach and Everret, 2006) even enhance the perception for the core brand (Aaker, 1991). There are two types of diversification strategies; concentric diversification or conglomerate diversification. Concentric diversification is the one where the product class remains the same. This strategy is to add related products or markets from that of the current line of business. On the other hand, conglomerate diversification is where the firm diversifies into areas that are unrelated to the current product range. Synergy Synergy is the ability of two or more instruments to work together to create something more than what they would have created separately. In a firms case, a synergy would be the extra benefit acquired by two different organizations working together, as opposed to what they would have acquired if they worked separately (Ellwood, 2002). In the Russian Standard brands case, the banking industry and the vodka industry are two unrelated industries. However, the Russian Standard brands aim to establish both these businesses under a single brand name could have been to benefit from synergies. This is possible if the bank and the vodka business together can give a stronger brand equity or profitability as opposed to their working as separate businesses under two different brand names (Aaker, 1991). Conglomerate Diversification: Benefits and Problems The possible motivations for conglomerate diversification include profitability, reducing firm specific risk, and limited growth in the current business along with other benefits of diversification in general. As observed by Martin and Sayrak (2001), the diversified organization may benefit from a larger tax liability than the initial business. Moreover, there may be other benefits from diversification such as risk from suppliers can be reduced, overhead costs can be distributed amongst a larger business (economies of scales), and the debt capacity may increase as well (Lewellen, 1971 as cited in Martin and Sayrak, 2001). Furthermore, the additional business can become a source of internal financing for the combined brand, which can considerably reduce the firms financing costs. This can be done by the management of the combined organization, by redistributing resources within the organization, where a larger amount of funds can be placed in the areas where there is potential of a hi gher gain than some other department (Stein, 1997 as cited in Martin and Sayrak, 2001). On the other hand, conglomerate diversification may create a number of problems for the existing firm. There are chances of administrative problems arising with an increase in the scale of operations (VanAuken, 2011). There can be managerial issues, i.e. an intensification of the principle-agent problem in an organization. Along with this, there can be an inadequate level of experience for the existing firm in the new industry. There may be requirements of the new industry that the current management is completely unaware of. New marketing mix, technical equipment, personnel and a lot more will be required for the new business which the current management may not be able to obtain. Support for and against Conglomerate Diversification In conglomerate diversification there are cases where the diversification has been extremely successful as well as cases where diversification was a source of loss in shareholders value in the initial business (Martin and Sayrak, 2001). Maksimovic and Philips (2002) in their research found out that conglomerate diversification reduces shareholder value, whereas in Martin and Sayraks (2001) work they have given a wide range of supporting as well as opposing arguments, without a significant conclusion as to whether conglomerate diversification is beneficial for the initial firm or it actually dilutes its initial shareholder value. However, it has to be noted that most of this literature is on merging or acquiring conglomerate businesses and not establishing a new business like the Russian Standard brand did. In case of the Russian Standard brand, (Grigorian, 2000) the bank was met with immediate success. Therefore, the success of the bank could be attributed to the existing brand name of the Russian Standard Vodka, but even if it was not because of that then there was definitely no dilution of the brand because of the conglomerate diversification. However, it may be difficult to measure in the Russian Standard brands case whether the success of the bank was because of the credibility of the brand or the right marketing mix for the bank itself. It can be the case that the bank may still have had the same success without the Russian Standard brands name associated to it, because the strategies to establish the bank were appropriate and the marketing mix was correct for the respective environment. This may be very much possible considering the fact that most of the people did not associate the Vodka and the Bank even with the same brand name; few customers made a clear link between the two businesses (Grigorian, 2000). Another aspect in this situation could also be the fact that the owner of the company, Roustam Tariko, had established much credibility for himself as well by being successful very early. His sense of strategic business thinking made him successful in creating a brand image of Russian Standard. The aim to meet international quality standards and improve the image of his country reflected well in his branding strategies. The Russian standard vodka and bank, though both were quite different in terms of relativity but as both were being run by Roust their relativity was somehow subsided by the credibility of the parent company (Ellwood, 2002). Both the brands were leveraging on the Russian Standards image. So the brand could very well diversify instead of considering to be diluted. Therefore, it can be said that even when the banking and vodka businesses are not compatible and few modern businesses actually go for conglomerate diversification, the Russian Standard brand was able to handle the two businesses well. As reputation (Ali, 2008) is one of the main factors that can affect the results of brand extension, the Russian Standard brand had a strong brand equity because of its vodka business which could very well afford to withstand any brand extension. Market Extension Another diversification strategy is to extend ones existing business into new markets. As can be seen in the Ansoff matrix (appendix 2), the market extension (Jewell, 2000) is when the existing product is introduced in some new market. This is another extension strategy that the Russian Standard brand was taking into consideration, i.e. extending its vodka into the US market. The benefits of market extension include profitability, an opportunity to reap economies of scale as the basic product will remain the same and growth of business and operations (VanAuken, 2011). Whereas, the market extension process may cause difficulties for the existing firm, because the new market may be completely different from what the firm has been working in initially. An in depth analysis of the potential market, information of the competitors and consumers, legal regulations, economic and social environment, all are required before the extension may be made. An entirely new marketing mix is required f or the same product for it to be introduced in a new market. If the product is launched in the new market with the same marketing mix, then the probability of its success may be reduced considerably. This is because, consumers in each market have distinct requirements and the social, economic and legal situation is also different from the existing market. Moreover, the potential market may already be saturated with competition, as is the case with the US market for Vodka (Sahani, 2008). The US market already has a number of well positioned, distinct local and foreign brands. Each of the brands available in the market is distinct in its own way, i.e. each has a specific segment of the market that it is very well catering to. Therefore, it can be said that introducing the Russian Standard Vodka in the US market is a difficult task, however with the quality product that it has, it may as well be successful to grasp a section of the market. In order to do this, a new marketing mix will be required for the Russian Standard Vodka to be successful in the US. The Russian Standard Vodka in the US market The Russian Standard Vodka was hugely successful in Russia not just because of its quality, but also its appeal to the nationalist sense in Russia along with its privileged distributional channels. These are the attributes of the Russian Standard Vodka that may not be present when the vodka is introduced in the US market. The US market which is todays largest consumer of vodka, is already very saturated in terms of premium vodka brands. The consumers will not be attracted to the brand merely because of its Russian origin, nor will the brand be able to acquire advantaged distribution channels (Sahani, 2008). Also considering the fact that the relationship between the two countries have always been on a verge of disagreements (Graham, 2008), this can act as creating a certain biasness for the origin of the brand. Based on the market analysis the super premium to premium segment already includes a lot of imported brands. For Russian Standard to create its space the super premium segment will have a benefit in terms of no competition from local brands, since the super premium segment only includes the imported variety. So if Russian Standard vodka changes its market strategy they can be noticeable in the US market. Change in the strategy will have to be emphasized in new and creative ideas of marketing and advertising, for this purpose it is very essential for the Russian Standard management to carefully study the US market, understand what the customers need and want, and what does the other vodka brands offer them, whether is there any loopholes or any gap between the customer requirement and brands offers and if Russian Standard vodka can overcome that gap. The American market is completely different from the Russian market, therefore Russian standard faces a great challenge in first capturing the attention of the American and consumers and then providing them with a better vodka than its competitors. The Russian Standard vodka can be launched in US market, but for a successful launching a lot of literature review and planning is required. From the discussion above it can be said easily that the Russian Standard will have to adapt to the US market to make their space. Many aspects of the Russian Standard vodka advertising and management campaign will plays vital role, among which pricing is the most crucial of all. The price should be appropriate enough to capture the attention of the Americans and maintain class as well. The quality of the Russian Brand vodka will ensure brand loyalty from the customers, but the real challenge is faced in actually making space in already so brand crowded market of the vodka in the US. The Russian Standard Vodka marketing mix for the US market will have to have a significant media campaign as well. This is because, all other competing brands in US have noteworthy amounts of money spent on advertisement, and are using user profiling (associating celebrities to add value to the brand) to their advantage. This is one place, where the Russian Standard Vodka will have to focus to establish a brand image that will appeal to the respective consumers. With the current scenario going pretty well for Russian Standard at home a global impact will add to the equity of the brand. As far as the image and global inconsistency is concerned in order to venture into a foreign market the characteristics must be understood. Since the US is a big market and the people are very accustomed to freedom and rationality Russian Standard will have to adapt to the culture in order to create the brand image (Deresky, 2006). This might impact global consistency of the brand but in order for it t o be associated exclusively to Russia the Russian Standard brand has to be put up as a brand for the elite. One the brand recognition will be spontaneous and second it will enjoy cost effective global positioning (Sahani, 2008). As the current situation of the brand is leading in the Russian Market the intervention in the US market will not be a wrong decision. Another aspect in consideration with the adaptation to the US market involves the brand name Russian standard itself (Deresky, 2006). This can have a positive as well as a negative impact while branding in US. The word Russian associates the Russian traditions with the brand. This can impact in the unique positioning in imported vodkas market. The name will give the product a Russian trait and the market does consist of people inspired more by brands with foreign attribute associated to them. However, the market also consists of people who can be biased in terms of foreign associations. Since Russia has been on major disagreement terms with US in history, some sort of biasness or stereotyping might result in the undermining of the brand (Graham, 2008). Launching Russian Standard Brand vodka in the United State would be challenging but not entirely an impossible job. With change in strategies and with new concepts of brand equity that will be according to the US markets, the Russian Standard Brand may be able to make their space in the strong world of vodka in the United States. Conclusion Therefore keeping these aspects in mind the venture into the US market can be risky at some points since it is the largest vodka market in the world. On the other hand it can also provide Russian Standard the global position it is looking for. It will add to the equity at home and in other markets it plans to venture into. The loyalty will increase and so will the company reap economies of scale by pricing it in the super premium market. References Aaker, A., David 1991, Managing brand equity: capitalizing on the value of brand name, New York, Maxwell Macmillan International. 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