Apartheid Impact on African Women Essay Example | Topics and Well Written Essays - 1000 words

Politically-sanctioned racial segregation Impact on African Women - Essay Example Life was so difficult however testing during those occasions that few narratives and compositions about the time have been made. Such would be the film South Africa Belongs to us which centers around the situation of five ladies for the most part on a spouse left in the countries, a medical attendant at a family arranging facility, an emergency clinic cleaner who lives in a solitary sex inn, a pioneer of a vagrant's camp and a local hireling. The dark hireling in a house possessed by whites can't invest quality energy with her youngsters. Therefore, division didn't simply occur among individuals with various skin hues yet among the individuals from their race, explicitly with their own bloodlines. The equivalent with other female transient specialists who were kind of detained in their working environment as they were not permitted to visit their families. Through politically-sanctioned racial segregation, ladies during that scene experienced hopelessness while they were away with their friends and family, while some remained as single parents due to the arrangement. One of the impacts of politically-sanctioned racial segregation at that point was the annihilation of the dark family and the presence of dislodged families. There is this one lady who lives in one of the useless countries with her in excess of twelve youngsters, since she was not permitted to be with her significant other who had to live in Johannesburg for a long time. In spite of all these, the film delineates of ladies' call to war to challenge prejudice. Winnie Mandela, the previous spouse of Nelson Mandela and one of the ladies heads who were met in the film, represents ladies power. Among the individuals who additionally courageously talked before the camera were Numisi Kjuzwayo, a youthful pioneer of the precluded Black Consciousness Movement which was against politically-sanctioned racial segregation and Fatimah Meer, a dissident. These ladies opposed constantly the politically-sanctioned racial segregation framework regardless of what took a chance with their life. A ton of what has done at that point adds to what South Africa is at present, that it truly has a place with its kin. Another film, Young ladies Apart done in the year 1987, shows a meeting with two multi year old young ladies, Sylvia who is from Soweto, a town of blackmen, the other is Siska, a rich white young lady Johannesburg. Each recounted to the tale of their lives in South 3 Africa during the politically-sanctioned racial segregation period, demonstrating how their universes were separated and that their lives were driven by their skin shading. In the film, an image of politically-sanctioned racial segregation was exhibited through the complexities in the lives of the young ladies. Another archived tale about the happenings in South Africa during the politically-sanctioned racial segregation period is shown in the book Not Either An Experimented Doll, The Separate Worlds of Three South African Women. The story is told through the trading of letters between an Englishwoman named Mabel Palmer and an upset adolescent young lady Lily Moya, who composed the book herself which was then altered by Shula Marks. Lily, a vagrant, looks to Mabel as a mother she never had, arguing to release her to class in her school. Mabel, then again, surrendered to her desire. Truth be told, she has contributed a ton to the training of South African ladies. There was this one time when she went out into the winter cold without a coat just to pay Lily's registration. Here in this book, it looks to show that during the politically-sanctioned racial segregation period, there were as yet white individuals who had great hearts to blacks, in spite of the fact that Mabel Palmer had a little impediment in her relationship with Lily inspired by a paranoid fear of the correspondences of racial separation rules. The third

Architecture of the Rich and Famous in Palm Springs

Design of the Rich and Famous in Palm Springs Mid-Century or Midcentury? Any way you spell it (and both are right), the advanced structures of world class draftsmen from the center piece of the twentieth century keep on characterizing Palm Springs, California. Settled in the Coachella Valley and encompassed by mountains and deserts, Palm Springs, California is just a couple of hours drive from the clamor and tinsel of Hollywood. As media outlets wrapped the Los Angeles region during the 1900s, Palm Springs turned into a most loved escape for the numerous divas and socialites who were bringing in cash quicker than they could spend it. Palm Springs, with its inexhaustible all year daylight, turned into a shelter for a round of golf pursued by mixed drinks around the pool - a fast track way of life of the rich and well known. The 1947 Sinatra House, with a pool formed like a fabulous piano, is nevertheless one case of the design from this period. Compositional Styles in Palm Springs The structure blast in the United States after World War II lured LA engineers to Palm Springs - draftsmen go where the cash is. Innovation had grabbed hold all through Europe and as of now moved to the US. Southern California modelers adjusted thoughts from the Bauhaus development and the International Style, making a rich yet casual style that is regularly called Desert Modernism. As you investigate Palm Springs, search for these significant styles: Desert ModernismArt ModerneSpanish EclecticGoogieTiki Quick Facts: Palm Springs Consistently Modernism Week praises the numerous mid-century current houses in Palm Springs, situated around 100 miles (2 hours) east of Los Angeles, California.Original pioneers were Cahuilla Native Americans, called Agua Caliente or high temp water by Spanish explorers.California turned into the 31st state in 1850. U.S. assessors previously portrayed the region of palm trees and mineral springs as Palm Springs in 1853. John Guthrie McCallum (1826-1897) and his family were the principal white pilgrims in 1884.The Southern Pacific Railroad finished an East/West line in 1877 - the railroad claimed each other square mile encompassing the tracks, making a checkerboard of property possession seen today.Palm Springs turned into a wellbeing resort, its mineral springs a sanitorium for the treatment of tuberculosis.Palm Springs was consolidated in 1938. Vocalist/VIP Sonny Bono was the sixteenth Mayor of Palm Springs from 1988 to 1992.As ahead of schedule as 1919, Palm Springs was utilized a s an instant set for some Hollywood quiet films. It immediately turned into a playland for individuals in the film business, due to its vicinity to LA. Indeed, even today Palm Springs is known as The Playground of the Stars. Designers of Palm Springs Modernism Palm Springs, California is a virtual exhibition hall of Mid-Century Modern design with conceivably the universes biggest and best-safeguarded instances of rich homes and milestone structures built during the 1940s, 1950s, and 1960s. Here is an examining of what youll find when visiting Palm Springs: Alexander Homes: Working with a few draftsmen, the George Alexander Construction Company assembled in excess of 2,500 homes in Palm Springs and set up a pioneer way to deal with lodging that was imitated all through the United States. Find out about Alexander Homes. William Cody (1916-1978): No, not Buffalo Bill Cody, yet the Ohio-conceived engineer William Francis Cody, FAIA, who structured numerous homes, lodgings, and business extends in Palm Springs, Phoenix, San Diego, Palo Alto, and Havana. Look at the 1947 Del Marcos Hotel, the 1952 Perlberg, and the 1968 St. Theresa Catholic Church. Albert Frey (1903-1998): Swiss planner Albert Frey worked for Le Corbusier before moving to the United States and turning into a Palm Springs occupant. The cutting edge structures he planned propelled the development that got known as Desert Modernism. A portion of his must-see structures incorporate these: 1949-1963 (with Robson Chambers): Tramway Valley Station1957 (with John Porter Clark, Robson Chambers, and E. Stewart Williams): Palm Springs City Hall1963: Frey House II1963-1965 (with Robson Chambers): Tramway Gas Station, presently the Palm Springs Visitors Center John Lautner (1911s of his work in Palm Springs include: 1968: The Arthur Elrod House1979: The Bob and Delores Hope House Richard Neutra (1892-1970): Born and instructed in Europe, Austrian Bauhaus modeler Richard Neutra set sensational glass and steel homes in rough California desert scenes. Neutras most well known home in Palm Springs are these: 1937: Grace Lewis Miller House, the winter home of the St. Louis socialite1946: Kaufmann House, the equivalent Kaufmanns who appointed Frank Lloyd Wright in 1935 to fabricate Fallingwater in Pennsylvania Donald Wexler (1926-2015): Architect Donald Wexler worked for Richard Neutra in Los Angeles, and afterward for William Cody in Palm Springs. He joined forces with Richard Harrison before setting up his own firm. Wexler structures incorporates: 1961-1962: Steel Development Houses built by the Alexander Construction Company1961-1962: The Royal Hawaiian Estates, tiki style apartment suite complex in Palm Springs1965: Palm Springs Airport Original Terminal Building Paul Williams (1894-1980): Los Angeles planner Paul Revere Williams structured in excess of 2000 homes in southern California. He likewise structured: 1937: International Style clubhouse for the Tennis Club on Baristo Road, Palm Springs1954: Lucille Ball and Desi Arnaz home E. Stewart Williams (1909-2005): The child of Ohio modeler Harry Williams, E. Stewart Williams constructed some of Palm Springs most critical structures during a long and productive profession. Must-see: 1947: House for Frank Sinatra1954: The Edris House1960: Coachella Valley Savings and Loan (presently Washington Mutual)1963: Tramway Upper Station1976: Palm Springs Desert Museum (presently the Palm Springs Art Museum) Lloyd Wright (1890-1978): Son of the celebrated American draftsman Frank Lloyd Wright, Lloyd Wright was prepared in scene plan by the Olmsted siblings and worked with his well known dad building up the solid material square structures in Los Angeles. Lloyd Wrights extends in and close to Palm Springs include: 1923: Oasis Hotel, a particular Art Deco working with a 40-foot tower. Desert Modernism Near Palm Springs: Sunnylands, 1966, in Rancho Mirage, by designer A. Quincy Jones (1913-1979) Travel to Palm Springs for the Architecture As the focal point of Mid-Century Modernism, Palm Springs, California has numerous design meetings, visits, and different occasions. Most renowned is Modernism Week held in February each year.â A few flawlessly reestablished lodgings in Palm Springs, California reproduce the experience of mid-twentieth century living, total with generation textures and goods by significant planners of the period. The Chase HotelStudio rooms that reproduce the 1950s.The Orbit InTwo sister motels, the Orbit In and the Hideaway, with a retro flair.RendezvousNostalgic 1950s topic rooms and gourmet morning meals. Inn History and DetailsLHorizon HotelDesigned by William Cody in 1952. Lodging History and DetailsThe Movie Colony HotelDesigned by Albert Frey in 1935. Inn History and DetailsThe Monkey Tree HotelA 16-room reestablished boutique lodging planned in 1960 by Albert Frey. Sources History, City of Palm Springs, CA

Disscuss the Contingency Approach to Management free essay sample

The possibility, or situational, way to deal with the executives hypothesis and practice developed in the mid 1960s from hierarchical research led in the United States and England. With the appearance of the sixties came the extension of business sectors put together not with respect to the presentation of new items yet rather on the separation of existing items. Shoppers were requesting more assortment in the items they bought. With purchaser request getting increasingly enhanced, so did the kinds of associations that were being established. Also, the work power was turning out to be less industrial and increasingly desk. A lot more laborers were being utilized in exercises that didn't straightforwardly include the creation of a decent, but instead the creation of a help. Possibility hypothesis endeavors to give a point of view on associations and the executives dependent on the joining of earlier speculations. Possibility hypothesis begins with its topic depends, contending that the answer for any one administrative issue is dependent upon the components that are impinging on the circumstance. For example, where little variety in materials exists in the creation procedure, it is suitable to separate the work into exceptionally routine undertakings. Be that as it may, where variety is high, requiring numerous decisions concerning which material is proper and which isn't, administrators will need to abstain from making assignments schedule. One of the main uses of possibility hypothesis originated from examine led by two British researchers, Thomas Burns and G.M. Stalker. Subsequent to contemplating a few mechanical firms in England, for example, material factories and gadgets producers, they reasoned that the fitting administrative methods were profoundly reliant on the sort of assignment the association was attempting to achieve. Consumes and Stalker distinguished two association types: unthinking, for an errand that is normal and perpetual, and natural, for an assignment that is nonroutine and evolving. They found that the best firms were those that pre-owned whichever type was proper for a given errand. At the point when the assignment was normal and constant (robotic), the suitable administrative methodology was to accentuate proficiency, a high level of specialization, and expound strategies for keeping up powers over conduct. Then again, when the assignment was nonroutine and evolving (natural), the suitable methodology was to accentuate low occupation specialization, inventiveness instead of effectiveness, and opportunity for laborers to control their own practices as opposed to depending on rules and strategies to keep them in line. Unmistakably this speaks to an incorporation of the traditional and conduct draws near. Different scholars, in particular Paul Lawrence and Jay Lorsch and John Child, have developed this point of view and distinguished possibilities, for example, natural conditions, possession examples, methodologies, and initiative, as significant in surveying the proper way to deal with use in a given circumstance. One fascination of the possibility approach among scholars and professionals the same is its situational viewpoint. Those intrigued by inquire about issues with respect to association and the board can utilize the possibility viewpoint to clarify why a few elements impact circumstances in a single setting however have for all intents and purposes no impact in some other setting. Without a doubt, one goal of research inside the possibility system is to determine those measurements and conditions that do influence a circumstance and those that don't. For the chief, the necessity from the possibility point of view is to distinguish which strategy will, in a specific circumstance, best add to the accomplishment of hierarchical objectives. For example, under certain conditions, a dictator initiative style might be more proper than an administration style that attempts to get laborers inside propelled. tuation. While the possibility approach is helpful in perceiving that the multifaceted nature associated with getting human and hierarchical frameworks makes it hard to create widespread standards of the executives, there have been a few reactions of the methodology. For one, it has been brought up that the legitimate augmentation of the possibility approach is that all circumstances are special. In the event that this is valid, at that point the board can be polished distinctly by instinct and judgment, in this manner nullifying the estimation of earlier information and shrewdness. On an examination level, possibility hypothesis has been condemned for being atheoretical. One necessity of hypothesis is the capacity to test the legitimacy of suspicions by indicating that opposing suppositions don't invalidate the hypothesis. In a possibility system, if opposing outcomes are acquired, the possibility reaction would be that the circumstance is exceptional or that significant measurements influencing the circumstance were not tried. Hence, demonstrating that conflicting presumptions negate the hypothesis would be troublesome, best case scenario. While these restrictions are remembered, we will move toward the investigation of the board using the presumptions of possibility hypothesis. We accept that administration is a profoundly intricate control in both research and practice. We assemble the methodology from past research and rehearse and stretch out the discoveries to build up a comprehension of how relevant, authoritative, and human measurements are coordinated. In particular, we draw thoughts from old style the executives hypothesis with respect to the organizing of associations to expand proficiency and efficiency. Social administration hypothesis gives information about human needs and inspirations that can lead not exclusively to expanded profitability yet in addition to upgrade of the workplace. Frameworks hypothesis serves to distinguish the setting in which associations work, in this way empowering directors to comprehend the earth and how the parts, or subsystems, of the association are interrelated. Moreover, we will draw from quantitative administration hypothesis for the utilization of explicit devices and strategies that are valuable for expanding administrative proficiency and adequacy. By applying possibility hypothesis to the investigation of the board, you will have the option to distinguish and to take care of issues under various circumstances. You will perceive that the effective use of a method in one circumstance doesn't ensure achievement in another. Or maybe, you will have the option to look at every circumstance as far as how it is influenced by the relevant, hierarchical, and human measurements. Thus, your general capacity to address issues and to turn out to be progressively powerful as an administrator will increment. Think about the accompanying circumstance. A shoe producer is confronted with diminishing benefits. As a chief, this individual may direct a period concentrate from the conviction that the decrease in benefits is because of lower efficiency with respect to the laborers (old style the board hypothesis Classical administration hypothesis (Fayol and Urwick) ). The chief may endeavor to include laborers all the more completely in choices concerning the techniques to use in creating the shoes dependent on the reason that this will propel laborers to deliver increasingly (conduct the executives hypothesis). Or on the other hand the director may set up a board of trustees of deals and creation work force to facilitate the creation and dispersion of merchandise under the presumption that huge inventories are answerable for the decrease in benefits (frameworks hypothesis). Use of a possibility point of view will empower the administrator to analyze the circumstance and to decide the reason for diminished benefits before another strategy or program is executed. Maybe just one program should be actualized, or maybe every one of the three. Be that as it may, just through a familiarity with every conceivable answer for the issue is the director ready to show up at a right arrangement. Possibility hypothesis is intended to furnish the supervisor with the capacities to analyze various potential answers for an issue.

The acquisition of ASDA by Wal-Mart - Free Essay Example

Sample details Pages: 20 Words: 6052 Downloads: 2 Date added: 2017/06/26 Category Business Essay Type Case study Did you like this example? WAL-MART ASDA Glossary Chapter 2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Change Overview à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 4 Chapter 4 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Financial Performance à ¢Ã¢â€š ¬Ã¢â‚¬Å" Company Liquidity à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 6 Chapter 5 Market Reaction to the Change à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.. 12 Chapter 6 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Investor Ratios à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ã ƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 14 Chapter 7 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Companies Dividend Policy à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦. 22 Chapter 8 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Companies Capital Structure à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 23 Chapter 9 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Companies Risk Assessment à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦..à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 24 Corporate 10 Strategy Evaluation à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 28 Chapter 11 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Conclusion à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 32 Don’t waste time! Our writers will create an original "The acquisition of ASDA by Wal-Mart" essay for you Create order Tables à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 34 Bibliography à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦.à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦ 35 The acquisition of ASDA by Wal-Mart on July 26, 1999 in reality began in 1991 when Archibald John Norman became the Chief Executive of ASDA (Wikipedia, 2005). The company, formed in 1965 by farmers from Yorkshire, fell upon difficult times in the late 1980à ¢Ã¢â€š ¬Ã¢â€ž ¢s and was transformed under the leadership of Mr. Norman as ASDA became the second largest supermarket chain in the United Kingdom. That transformation saw troubled ASDA develop into a savvy customer driven chain whose slogan was à ¢Ã¢â€š ¬Ã…“permanently low prices foreverà ¢Ã¢â€š ¬Ã‚  (Wal -Mart, 2000). This closeness to the Wal-Mart à ¢Ã¢â€š ¬Ã…“Smiley faces everyday low price campaignà ¢Ã¢â€š ¬Ã‚  is not by accident states Allan Leighton, Chief Executive Officer of ASDA (Wal-Mart, 2000). The company began à ¢Ã¢â€š ¬Ã‹Å"borrowingà ¢Ã¢â€š ¬Ã¢â€ž ¢ Wal-Mart marketing staples such as à ¢Ã¢â€š ¬Ã‹Å"rollbacksà ¢Ã¢â€š ¬Ã¢â€ž ¢ and à ¢Ã¢â€š ¬Ã‹Å"volume-producing itemà ¢Ã¢â€š ¬Ã¢â€ž ¢ (Wal-Mart, 2000). Thus, the acquisition of ASDA by Wal-Mart is one of almost identical corporate cultures and market image. Leighton said à ¢Ã¢â€š ¬Ã…“The businesses are so similarà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  they are à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦almost spookyà ¢Ã¢â€š ¬Ã‚  (Wal-Mart, 2000). This synergistic climate fostered the Wal-Mart acquisition of ASDA. Wal-Mart became the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s largest retailer by utilizing the time proven principles of economies of scale as well as detailed attention to employee retention, controlling costs and getting the most fr om every dollar spent, regardless of operating area. Contrary to some opinions Wal-Mart is not close to market saturation in the United States. It presently operates 1,353 discount stores, 1,713 super centers and 85 neighborhood markets generating $191.8 billion from these operations (Wal-Mart, 2005). The preceding does not take into account Samà ¢Ã¢â€š ¬Ã¢â€ž ¢s Clubs (551), and international outlets (1,587). Thus, Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s acquisition of ASDA represents a long term strategy the company has been engaged in since 1991 when it opened its first foreign outlet in Mexico (Rowell, 2003). And the growth provided from foreign expansion has increased the company size to the point where it is over 4 times the size of the second largest retailer, Carrefour, and tops the Fortune 500 List as the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s largest company (CNN Money. 2004). Within the midst of this global expansion the ASDA acquisition by Wal-Mart has been termed by many analysts à ¢Ã¢â€š ¬Ã…â €œÃƒ ¢Ã¢â€š ¬Ã‚ ¦as the template for future global expansionà ¢Ã¢â€š ¬Ã‚  (Wal-Mart, 2000). Such a landmark business event thus serves as the basis for this paper. The field of corporate finance is extensive in terms of the accounting and finance areas it covers, as well as its applications. Be it expansion, plant and equipment financing, or mergers and acquisitions, to name a few, the variables that must considered and examined are vast in order that the acquiring company understand the financial structure, fiscal health, market positioning, competitive practices and corporate culture of the subject company. Market share is the objective of every business and that means growth. A company achieves this end through the application of a number of techniques, preferably in combination: increased sales expanded product line product innovations new product introductions expansion into new markets via: company introduction joint ventures mergers and/or acquisition Todayà ¢Ã¢â€š ¬Ã¢â€ž ¢s business climate requires companies to produce sustained growth in order to satisfy shareholder expectations of value, and this means employing economies of scale in operations to achieve internal savings that maintain price competitiveness, specially in the food retailing sector. The waves of consolidation have pointed to the utilization of mergers and acquisitions as the quickest means to achieve these ends when the conditions favor such. This means a company instantly gains presence in a market with established operations in place. In addition, the acquiring company adds significant assets to its operations as well. Financing such acquisitions means that the acquiring entity have the internal as well as external fiscal resources in place. Financing such activity can take one or all of the following forms: internal cash on hand funds raised by shares and or additional offerings leveraging of assets borrowing issuance of corporate stock The selection of the one, part or all of the preceding, the percentage of each selected area that will be utilized to obtain the required figure and the resultant effects on the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial well being after the acquisition are equations that must be examined and worked through prior to entering into such activity. Such is the nature of corporate finance, the means by which a company utilizes its fiscal resources to obtain the net result of increase market share, economies of scale, stabile operations and profitability. Chapter 2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Change Overview In examining the conditions to acquire another company, the obvious aspect to be considered and equated is that of changeà ¢Ã¢â€š ¬Ã¢â€ž ¢. Change that will occur: Within the acquiring company as a result of expanded operations in administration, logistics, accounting, legal, regulations, cultural adjustments, marketing, packaging and personnel, In the acquired company in terms of acceptance of being a subsidiary and the resultant corporate culture adaptations, managing personnel, as well as uncertainty over the future and individual positions, Public and shareholder opinions concerning the proposed acquisition and how this will impact upon the corporate images of both companies, Competitive adjustments that will occur from this new threat. The preceding requires that both companies have a thorough understanding of the far reaching ramifications that will accompany such an action and what adjustments, preparations and other measures they will need to undertake both internally as well as in the press, with suppliers and other sources to minimize and any negative connotations. How adequately and thoroughly both companies prepare for and execute the necessary aspects of the preceding broad categories are as important to the actual financial ramifications of the acquisition as they help to set the climate in which these firms will operate in the near future. Areas overlooked can potentially surface to impact negatively and thus affect the projected success of the acquisition in terms of returns, public opinion and market reactions. Chapter 3 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Rational and Expectations In the case of Wal-Mart the rational behind the acquisition of ASDA Group PLC was entrance to a new market to fuel growth, market sh are, achieve economies of scale and drive bottom line results. Said practice had been implemented on the part of the company starting in 1991 when it entered Mexico in a joint venture that eventually became an acquisition. That first foray was a practical learning experience for the company conducted almost within its own back yard. The closeness of the deal enabled Wal-Mart to keep tabs on problems and thus have a logistical as well as managerial advantage in being able to react and respond to the multitude of new developments that would or could surface operating in a foreign environment. The practical foresight in conducting a close at hand foreign market entry minimized the potential for embarrassment resulting from errors, made even moreso by the relative unimportance of the country in and on the world stage. Subsequent entries into Puerto Rico, Canada, and other countries permitted Wal-Mart to gain valuable internal expertise to tackle increasingly competitive markets. The company rationale and expectations concerning this acquisition were stated by Wal-Mart International Division president John Menzer in indicating that Wal-Mart à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦ needsà ¢Ã¢â€š ¬Ã‚ ¦.the growth..à ¢Ã¢â€š ¬Ã‚  when in the future à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦ the United States (growth), slows downà ¢Ã¢â€š ¬Ã‚  (Rowell, 2003). He added that à ¢Ã¢â€š ¬Ã…“The United Statesà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  represents à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦37 percent of the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s economyà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  therefore leaving à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦63 percent of internationalà ¢Ã¢â€š ¬Ã‚  growth (Rowell, 2003). Clearly, Wal-Mart was and is seeking growth via consolidation. Chapter 4 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Financial Performance à ¢Ã¢â€š ¬Ã¢â‚¬Å" Company Liquidity 4.1 Disclosure Ethics The à ¢Ã¢â€š ¬Ã‹Å"disclosureà ¢Ã¢â€š ¬Ã¢â€ž ¢ policy of public companies must conform to the standards and regulations as set forth by the respective governing bodies overseeing the trading and regulations for the stock market. In the United States this body is the Securities and Exchange Commission that sets forth specific rules requiring public companies à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦ to provide complete and comprehensive disclosureà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  (Moulton and Rosen, 1999). In the United Kingdom the Financial Services Authority oversees the regulation of stocks listed on the London Stock Exchange. The disclosure rules are not as strict as those posed by the Securities and Exchange Commission in the United States and they set forth specifics concerning (Financial Services Authority, 2005): transferable securities, units in collective investment undertakings, money-market instruments, financial futures, forward interest-rate agreements, interest-rate, currency and equity swaps; options to acquire or dispose of any instrument falling into these categories, derivatives on commodities; and any other instrument admitted to trading on a regulated market in an EEA State or for which a request for admission to trading on such a market has been made. The way in which the disclosure rules are laid out requires investors to have a strong working knowledge of the intricacies of this area. This loose interpretation has been challenged by Callum McCarthy the chairman of the FSA in a speech delivered on November 5 2004 which called for increased disclosure rules (FSA, 2004). Thus the question of morality with regard to companies supplying investors with scant information is governed by the rules set forth and therefore companies seek to present themselves in the best possible light and reveal what is required. The question as to whether this policy is in the public interest is undergoing review by the European Union. The recent scandals in the United States with respect to the failures and bankruptcies of large U.S. firms has created a new climate on the part of governments to set forth stricter rules and policies to safeguard the public. Financial reports for large corporations take on the name of à ¢Ã¢â€š ¬Ã‹Å"consolidated fina ncialà ¢Ã¢â€š ¬Ã¢â€ž ¢ statements, which is the combination of all subsidiaries and operating companies within the corporation. The merging of this data shields details from any one company and thus protects weak performing units from all but the closest scrutiny. As the consolidated financial statements meet the rules of financial disclosure this practice is not illegal. However, in the case of large companies with multiple divisions and subsidiaries, important information can he lost in the maze of numbers and reporting techniques thus making the average investorà ¢Ã¢â€š ¬Ã¢â€ž ¢s task of understanding what profits and losses are attributable to which division as difficult if not nearly impossible. 4.2 Wal-Mart Post Merger Wal-Mart trades as WAL on the London Stock Exchange at 2,497 p as of 8 October 2005 which is down from its February 2002 high of 4,425 p. The stockà ¢Ã¢â€š ¬Ã¢â€ž ¢s downward spiral since that time has been consistent. As the second largest UK food reta iler it has been losing market share to rival Tesco whose market lead of 10% over ASDA points to their success. Worse still that gap between Wal-Mart / ASDA and Tesco is widening (Wikipedia, 2005). As Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s largest overseas holding, ASDA accounts for approximately half of its international sales which are reported to be over  £15 billion. Interestingly, a good part of the resurgance of J. Sainsbury has come at the expense of ASDA, thus the removal of Tony de Nuzio as the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s Chief Executive Officer by Andy Bond in the early 1990à ¢Ã¢â€š ¬Ã¢â€ž ¢s (Wikipdeia, 2005). The driving force behind ASDAà ¢Ã¢â€š ¬Ã¢â€ž ¢s marketing campaign and image to consumers is as à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦ Britainà ¢Ã¢â€š ¬Ã¢â€ž ¢s lowest priced supermarketà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  (Wikipedia, 2005), a claim that Tesco finally has managed to take away from ASDA / Wal-Mart for the first time in seven years (BBC News, 2005). ASDAà ¢Ã¢â€š ¬Ã¢â€ž ¢s marketing is not reaping the results the company is looking for and this has been reflected in the appointment of Sharon Osbourne to replace Julie Walters at the company. Based upon the in-depth information contained herein, as well as the relative positioning and successes of ASDAà ¢Ã¢â€š ¬Ã¢â€ž ¢s rivals, the stock is not recommended for acquisition unless one is seeking a speculative long term hold based on Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s marketing savvy being able to regain market share and make up ground on market leader Tesco over time. 4.3 Competitive Comparisons The competitive market that Wal-Mart entered in its acquisition of ASDA consists of only four major firms in the super center category with a number of smaller operators. In order to more completely understand the dynamics of the merger, an understanding of the food retailing market in the United Kingdom is in order. 4.3.1 Wm Morrison Supermarkets PLC Wm Morrison became a major competitor in the U K supermarket wars via its acquisition of larger rival Safeway PLC in March of 2004 (Hoovers, 2005). That acquisition required Wm Morrison to best Tesco and ASDA in a hotly contested battle and it increased its number of stores from 125 to 550 (Hoovers, 2005). Ranked 4th in terms of turnover size in the United Kingdom food retailing market, the company presently has 360 supermarkets. Its marketing strategy is based upon conducting the basics of the business efficiently utilizing a low price format from large stores. Interestingly, Morrison has sold off the 114 Safeway Compact convenience stores to Somerfield while both Tesco and ASDA are expanding their presence into this market. Morrisonà ¢Ã¢â€š ¬Ã¢â€ž ¢s stock performance over the past five years has fluctuated from 178 p to a high of 250 p and presently trades at 177.75 (Yahoo Finance. 2005). The company recently reported a 14% increase in sales at the converted Safeway stores and has shown steady sales increases since 2000: Table 1 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Wm Morrison Supermarket PLC (Wikipedia, 2005) Year Ended Turnover ( £ millions) Profit Before Tax ( £ millions) Profit After Tax ( £ millions) 30 January 2005 12,116 297.1 205.7 1 February 2004 4,944 319.9 197.6 2 February 2003 4,290 282.2 186.3 3 February 2002 3,915 243.0 143.7 4 February 2001 3,496 219.1 120.0 29 January 2000 2,969 189.2 103.1 The latest analyst recommendations for the company are as follows: Table 2 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Wm Morrison Supermarkets PLC Analyst Rating (Yahoo Finanzen, 2005) Rating Analyst Wm Morrison Supermarkets: Neutral JP Morgan Wm Morrison Supermarkets: Under perform Goldman Sachs Wm Morrison Supermarkets: Equal Weight Lehman Brothers Wm Morrison Supermarkets: Out perform Credit Suisse First Boston 4.3.2 J. Sainsbury Listed on the London Stock Exchange as SBRY, at one time this chain was the largest in the United Kingdom. Today J. Sainsbury is the third largest chain in the UK and it has recovered from losses in market share to stabilize its operations (Wikipedia, 2005). The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s new strategy was based upon overhauling its supply chain to solve the problems of stock availability, price competitiveness and improving customer service. The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance since 1998 is as follows: Table 3 à ¢Ã¢â€š ¬Ã¢â‚¬Å" J. Sainburys PLC (Wikipedia, 2005) Year Ended Turnover ( £ millions) Profit Before Tax ( £ millions) Net Profit ( £ millions) Basic Eps (p) 26 March 2005 15,409 15 61 3.5 27 March 2004 17,141 610 396 20.7 29 March 2003 17,079 667 454 23.7 30 March 2002 17,162 571 364 19.1 31 March 2001 17,244 437 276 14.5 1 April 2000 16,271 509 349 18.3 3 April 1999 16,433 888 598 31.4 7 March 1998 14,500 719 487 26.1 Analyst ratings for the company are: Table 4 à ¢Ã¢â€š ¬Ã¢â‚¬Å"J Sainsbury PLC Analyst Ratings (Yahoo Finanzen, 2005) Rating Analyst J. Sainsbury: Underweight Lehman Brothers J. Sainsbury: In-Line Goldman Sachs J. Sainsbury: Under Perform Credit Suisse First Boston J. Sainsbury: Underweight JP Morgan Clearly, analysts are not yet convinced of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s re-structuring efforts and the ratings reflect such. The company numbers 512 stores and has expanded into banking and financial services. It is this diversity that analyst feel caused the company to lose its focus on its core business, food retailing and the resultant crisis. The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s share price has dropped from a high of 450 p in mid 2001 to a low of 220 p on February of 2003 and now trades at 283.50 p. 4.3.3 Tesco Britainà ¢Ã¢â€š ¬Ã¢â€ž ¢s largest retailer in global as well as domestic sales has managed to wrest the title of lowest priced supermarket chain from rival ASDA / Wal-Mart to add to the other successes it has had in the market place. With a 29% share of the market it leads ASDA / Wal-Mart by a full 10%. A survey conducted by The Grocer stated that the average shopping at Tesco came in at  £167.84 which was 0.4% less than for the same items at ASDA / Wal-Mart (B BC News, 2005). Tescoà ¢Ã¢â€š ¬Ã¢â€ž ¢s financial performance since 1998 has been as follows: Table 5 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Tesco PLC (Wikipedia, 2005) Year Ended Turnover ( £ millions) Profit Before Tax ( £ millions) Net Profit ( £ millions) Basic Eps (p) 26 February 2005 33,974 1,962 1,366 17.72 28 February 2004 30,814 1,600 1,100 15.05 22 February 2003 26,337 1,361 946 13.54 23 February 2002 23,653 1,201 830 12.05 24 February 2001 20,988 1,054 767 11.29 26 February 2000 18,796 933 674 10.07 27 February 1999 17,158 842 606 9.14 28 February 1998 16,452 760 532 8.12 The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s loyalty programs, Internet shopping service and customer satisfaction have enabled it to maintain its leadership position. On a global scale, Tesco oversees Internet grocery retail operations for U.S. based Groceryworks in which it has a 35% stake (Wikipedia, 2005). The company also has expanded into mobile and landline telephone services as well as it being an ISP. Tesco is also pursuing expansion through the acquisition of other companies. The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s stock has risen after a drop in February 2002 to its current highs of (Yahoo Finance, 2005) and analystà ¢Ã¢â€š ¬Ã¢â€ž ¢s favor the stock. Table 6 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Tesco PLC Analyst Rating (Yahoo Finanzen, 2005) Rating Analyst Tesco: Reduce Jyske Bank Tesco: Reduce Jyske Bank Tesco: Out Perform Goldman Sachs Tesco: Overweight JP Morgan Tesco: Out Perform Hypo Vereinsbank Tesco: Overweight Morgan Stanley Tesco: Kaufen Helaba Trust Tesco: Overweight JP Morgan Tesco: Overweight JP Morgan Tesco: Upgrade Hypo Vereinsbank Tesco: Kaufen Helaba Trust Tesco: Overweight (Update) JP Morgan Tesco: Overweight JP Morgan Chapter 5 Market Reaction to the Change Wal-Mart has been surprising market analysts since its humble beginnings as a discount warehouse outlet that initially opened stores in rural areas. That foundation of providing its customers with low priced merchandise items across a broad spectrum of product types soon vaulted the company past then U.S. market leader K-Mart. John Menzer, the president of Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s international division states that the company à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦ needsà ¢Ã¢â€š ¬Ã‚ ¦.the growth..à ¢Ã¢â€š ¬Ã‚  when in the future à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦ the United States (growth), slows downà ¢Ã¢â€š ¬Ã‚  (Rowell, 2003). Menzer goes on to add that à ¢Ã¢â€š ¬Ã…“The United Statesà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  represents à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦37 percent of the worldà ¢Ã¢â€š ¬Ã¢â€ž ¢s economyà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  therefore leaving à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦63 percent of internationalà ¢Ã¢â€š ¬Ã‚  growth (Ro well, 2003). The double-digit gains the analysts have become used to from Wal-Mart have become increasing harder for the company to sustain in the U.S. market where it opens a new stores approximately once every 42 hours (Rowell, 2003). The companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s first move abroad in Mexico occurred in 1991, which was followed by Puerto Rico (1991), Canada (994), Argentina and Brazil (1995) continued with Jakarta (1996), China (1996), Germany (1998), South Korea (1998), the United Kingdom (1999), and then Japan (2002) (Rowell, 2003). The phenomenon of Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s foreign expansion has been commented upon by Al Norman on à ¢Ã¢â€š ¬Ã‹Å"CBS 60 Minutesà ¢Ã¢â€š ¬Ã¢â€ž ¢, who stated that the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s expansion into Mexico is a telling script on how it buys into existing operations rather than start from scratch (Rowell, 2003). The soundness of this strategy gives Wal-Mart a distinctive advantage in that by à ¢Ã¢â€š ¬Ã‹Å"buying intoà ¢Ã¢â€š ¬Ã¢â €ž ¢ a foreign market it eliminates a competitor as well as obtaining a functioning operation that is known to consumers, along with trained employees and established outlets. The Wal-Mart concept of large stores with massive inventories forces it to seek locations on the fringe areas of towns. The pull of a Wal-Mart causes people to drive thus taking them out of proximity with the in-town shops. This eventually creates a drawn on their business and to compete, in-town stores have to re-locate to approximate the Wal-Mart locations in order to maintain business. This cycle continues until the areas around super stores now support a variety of other business leaving the in-town shops suffering. Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s entry into the British arena has prompted a price war between it and larger British food retailing rival Tesco. Tescoà ¢Ã¢â€š ¬Ã¢â€ž ¢s real estate positioning in the market is superior to ASDA which Wal-Mart / ASDA is battling by discounting and expanding mercha ndise ranges as well as new store openings (Morning News, 2005). Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s stock price since the merger has dropped approximately 30% as the company pours more cash into market expansion, not just in Britain, but other markets it has entered as well. Chapter 6 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Investor Ratios Varied ratios permit investors, analysts and financial institutions to evaluate public companies against varied proven formulas. Taken as a whole, combinations of these ratios and formulas provide a look inside the maze of financial information by focusing on the key variables and their relationships to each other. 6.1 Ratio Analysis Liquidity ratios measure the financial liquidity position on a specific day, such as when the Balance Sheet is completed. The resulting ratios help to measure the capability of the company to handle its short as well as long term obligations (CreditGuru, 2005): First Liquidity Ratio, Is obtained by dividing à ¢Ã¢â€š ¬Ã‹Å"total current assetsà ¢Ã¢â€š ¬Ã¢â€ž ¢ by à ¢Ã¢â€š ¬Ã‹Å"total current liabilities. The resulting ratio represents the à ¢Ã¢â€š ¬Ã‹Å"working capitalà ¢Ã¢â€š ¬Ã¢â€ž ¢ of the current assets to meet current obligations (CreditGuru, 2005): ASDA 1998 (Compitition Committee, 2003) The ASDA ratio of 2.978 remains fairly constant through 1999, the year of the acquisition, as would be expected since the company was in a normal operations mode, and had not undertaken any unusual or costly expansion, renovation or merger activities during this period. In fact it could very well be said that since the company was aware of the pending acquisition through talks with Wal-Mart, it might have delayed any activity that would have reflected negatively on the sale price out of responsibility to the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s shareholders. ASDA 1999 (Compitition Committee, 2003) The ratio for this year compares favorably with the ratio for 1998 as would seemingly be the case for a company understanding that it is in the midst of a merger. (3.0266) Wal-Mart 1997 (Shibui Markets, 2005) The figures for the à ¢Ã¢â€š ¬Ã‹Å"First Liquidity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ remain fairly consistent for the years leading up to the acquisition. 1.642 represents the à ¢Ã¢â€š ¬Ã‹Å"First Liquidity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ for 1997. Wal-Mart 1998 (Shibui Markets, 2005) The à ¢Ã¢â€š ¬Ã‹Å"First Liquidity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ for 1998 is 1.33 Wal-Mart 1999 (Shibui Markets, 2005) The à ¢Ã¢â€š ¬Ã‹Å"First Liquidity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ for 1999 is 1.26 The ratio does not increase due to the acquisition as a result of adding assets and liabilities that were in proportion from ASDA. Wal-Mart 2000 (Shibui Markets, 2005) The ratio post merger figure shows a decline which indicates that the assets to liabilities benefits and obligations were in Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s favor as reflected by 0.99. Second Liquidity Ratio The à ¢Ã¢â€š ¬Ã…“Quick Ratioà ¢Ã¢â€š ¬Ã‚  is calculated by dividing à ¢Ã¢â€š ¬Ã‹Å"total quick assetsà ¢Ã¢â€š ¬Ã¢â€ž ¢ by à ¢Ã¢â€š ¬Ã‹Å"total current liabilities. Quick Assets are those that can be easily converted to cash if they are not already in that form. It is represented by current assets less inventories (Investopedia, 2005). ASDA 1998 Data not available ASDA 1999 Data not available Wal-Mart 1997 (Wal-Mart, 2000) The à ¢Ã¢â€š ¬Ã‹Å"Quick Assetà ¢Ã¢â€š ¬Ã¢â€ž ¢ figure for 1997 is 0.19. Wal-Mart 1998 (Wal-Mart, 2000) The à ¢Ã¢â€š ¬Ã‹Å"Quick Assetà ¢Ã¢â€š ¬Ã¢â€ž ¢ figure for 1998 is 0.19 Wal-Mart 1999 (Wal-Mart, 2000) The increase in this number is a result of the ASDA acquisition, 0.24. Wal-Mart 2000 (Wal-Mart, 2000) The ratio reduces slightly in conformity with a similar reduction shown by the First Liquidity Ratio for the same years (1999 and 2000), 0.17. Third Liquidity Ratio The Debt to Equity Ratio is calculated by dividing à ¢Ã¢â€š ¬Ã‹Å"Total Liability (Debt)à ¢Ã¢â€š ¬Ã¢â€ž ¢ of a firm by à ¢Ã¢â€š ¬Ã‹Å"Owners Equity (Net Worth)à ¢Ã¢â€š ¬Ã¢â€ž ¢. This ratio permits the measurement of how the firm is managing the leveraging of its debt with respect to the capital being utilized (Investipedia, 2005). The formula provides information to determine that if the liabilities exceed the net worth, which would mean that the creditors have a bigger stake in the enterprise than the shareholders. It is computed by taking the à ¢Ã¢â€š ¬Ã‹Å"Total Liabilitiesà ¢Ã¢â€š ¬Ã¢â€ž ¢ and dividing it by à ¢Ã¢â€š ¬Ã‹Å"Owners Equityà ¢Ã¢â€š ¬Ã¢â€ž ¢ ASDA 1998 Data not available ASDA 1999 Data not available Wal-Mart 1997 (Wal-Mart, 2000) Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s à ¢Ã¢â€š ¬Ã‹Å"Debt to Equity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ for 1998 is 0.639. Wal-Mart 1998 (Wal-Mart, 2000) The à ¢Ã¢â€š ¬Ã‹Å"Debt to Equity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ for 1998 is 0.782 Wal-Mart 1999 (Wal-Mart, 2000) The à ¢Ã¢â€š ¬Ã‹Å"Debt to Equity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ for the year of the merger remains constant, in conformity with the First Liquidity Ratio and à ¢Ã¢â€š ¬Ã‹Å"Quick Asset Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ for these years, 0.793. Wal-Mart 2000 (Wal-Mart, 2000) The à ¢Ã¢â€š ¬Ã‹Å"Debt to Equity Ratioà ¢Ã¢â€š ¬Ã¢â€ž ¢ increase slightly the following year to 0.998. 6.2 Net Income Comparisons to Industry Standards The data for ASDAà ¢Ã¢â€š ¬Ã¢â€ž ¢s net income comparatives could not be found as much of the data is either unavailable or not found in the consolidated financial statements of Wal-Mart. Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s numbers for the period 1997 through 2000 are as follows (Wal-Mart, 2000): 1997 21% 1998 21% 1999 22% 2000 21% The preceding numbers are close to the industry standard of 25.9% as determined by The Co-operative Group (Co-operative Group, 2005), an association of business individuals who formed this organization as a result of their common economic, cultural and social needs. Wal-Martà ¢Ã¢â€š ¬Ã¢â€ž ¢s positioning as a low price retailer puts additional pressure on profits as a result of pricing, thus the preceding figures do not seem out of line with their market positioning both before and after the acquisition of ASDA Group PLC. 6.3 Share Price Comparison with FTSE According to the September 2005 FTSE UK Markets Review (FTSE Research, 2005) Food and Drug Retailers posted a share price performance of à ¢Ã¢â€š ¬Ã¢â‚¬Å"3.9%. The industry grouping takes into account all publicly listed firms within the classification and as a group they represented one of the à ¢Ã¢â€š ¬Ã…“5 Worst Performing Industry Sectors on the FTSE (FTSE Research, 2005). 6.4 Systematic and Unsystematic Risk Analysis 6.4.1 Systematic Risk Analysis A à ¢Ã¢â€š ¬Ã‹Å"systematic riskà ¢Ã¢â€š ¬Ã¢â€ž ¢ influences a broad spectrum of assets and can include the entire market. The other name for this term is à ¢Ã¢â€š ¬Ã…“Market Riskà ¢Ã¢â€š ¬Ã‚  as a result of the aforementioned (Mississippi State University, 2003). Some examples of areas or aspects that can, and do affect the entire market are (Mississippi State University, 2003): Changes in the money supply, Inflation, GDP growth, Changes in tax rates, and War or regional conflicts The sweeping ramifications of the foregoing, as a few select examples, will either immediately or eventually effect almost all of the firms within the market. One important consideration to keep in mind is that these à ¢Ã¢â€š ¬Ã‹Å"systematic risksà ¢Ã¢â€š ¬Ã¢â€ž ¢ can not be eliminated in terms of management measures, portfolio changes or other techniques. One either rides them out, cost averages down or waits until it (the risk) has run its course. The Markowitz Model states that the à ¢Ã¢â€š ¬Ã‹Å"investorà ¢Ã¢â€š ¬Ã¢â€ž ¢s total utilityà ¢Ã¢â€š ¬Ã¢â€ž ¢ is based upon the assumption of an expectation of future wealth and the risk that is expected as a result of this. There are three fundamental results that typify optimum investment (Mississippi State University, 2003): Investors seek and prefer higher returns or lower returns, Investors want to avoid risk or minimize it wherever possible, and that there is a à ¢Ã¢â€š ¬Ã‹Å"diminishing marginal utilityà ¢Ã¢â€š ¬Ã¢â€ž ¢ connected to the attainment of wealth. 6.4.2 Unsystematic Risk Analysis This type of risk affects either an individual firm, or a small quotient of financial assets as well as firms. It is also known as a à ¢Ã¢â€š ¬Ã‹Å"Market Specific Riskà ¢Ã¢â€š ¬Ã¢â€ž ¢ since it affects a specific area or firm. Another aspect of this risk is that it is also termed a à ¢Ã¢â€š ¬Ã‹Å"Diversifiable Riskà ¢Ã¢â€š ¬Ã¢â€ž ¢ in that it can be removed from a portfolio since it is a singular type of occurrence. Since à ¢Ã¢â€š ¬Ã‹Å"unsystematic riskà ¢Ã¢â€š ¬Ã¢â€ž ¢ is random the effect can be eliminated from a portfolio through diversification as this type of risk is usually offset by good events occurring in another firm or firms (Mississippi State University, 2003). 6.5 CAPM (Capital Asset Pricing Model) The Capital Asset Pricing Model was developed by William F. Sharpe whose approach of a à ¢Ã¢â€š ¬Ã‹Å"heretical notionà ¢Ã¢â€š ¬Ã¢â€ž ¢ concerning investment risk as well as reward was the basis for it. Under this model there a re two specific risks (Burton, 1998): The risk of being in the market, which Sharpe titled a systematic risk. This was later called à ¢Ã¢â€š ¬Ã‹Å"betaà ¢Ã¢â€š ¬Ã¢â€ž ¢ and it can not be removed by diversification. The second aspect of risk is the unsystematic risk which can be mitigated through diversification measures. Sharpe calculated that the expected return of a portfolio is based on its à ¢Ã¢â€š ¬Ã‹Å"betaà ¢Ã¢â€š ¬Ã¢â€ž ¢, which is its relationship to the market overall. The Capital Asset Pricing Model aids in measuring portfolio risk and the return on said risk that can be expected for assuming it (Burton, 1998). 6.6 Beta Termed a statistical measurement of volatility regarding a stockà ¢Ã¢â€š ¬Ã¢â€ž ¢s trading price in relationship to the price movement of the market overall, it is a useful theory that the average investor can and does utilize (Carlson, 2003). The following is what beta reveals about a stock (Carlson, 2003): Beta of 1 This indicates that the stock is market neutral, meaning that is neither carries less or more risk than the market overall. The stock will tend to move as the market moves, up or down. Beta that is greater than 1 Stocks falling within this category will either rise or fall faster than the market does. As an example, a stock whose à ¢Ã¢â€š ¬Ã‹Å"betaà ¢Ã¢â€š ¬Ã¢â€ž ¢ is 1.25 is forecast to move 25% more than the market, thus if the market rises by 1%, then the stock is expected to rise by 1.25%. The same is true in a decline. Beta that is under 1 A stock with a à ¢Ã¢â€š ¬Ã‹Å"betaà ¢Ã¢â€š ¬Ã¢â€ž ¢ that is less than 1 is projected to move less than the market does. A à ¢Ã¢â€š ¬Ã‹Å"betaà ¢Ã¢â€š ¬Ã¢â€ž ¢ of 0.8% means the stock is expected to move 0.8 in price when the market moves by 1%. 6.7 WACC Known as the à ¢Ã¢â€š ¬Ã…“Weighted Average Cost of Capitalà ¢Ã¢â€š ¬Ã‚  this theory calculates the expected return to owners of equity and debt the cost of capital. WACC calculates the return that both the lenders and stakeholders can expect. In a discounted cash flow analysis the WACC is utilized as the discount rate that is applied to cash flows in the future to derive the net present value of the business. The WACC is also used as the hurdle rate via which to gauge ROIC performance (McClure, 2003). 6.8 Capital Gearing Ratios Also known as à ¢Ã¢â€š ¬Ã‹Å"leverageà ¢Ã¢â€š ¬Ã¢â€ž ¢, gearing describes the components of long-term corporate funding that is internally provided by shareholders and contributed to exter nally by lenders. Utilizing ratio analysis to interpret financial statements requires more that just calculating key gearing ratios. The ratios are tools that provide a deeper insight of the company to aid in planning and decision making along with control (Anderson, 2000). The higher the degree of leverage within a company the more risky that company is. As is the case with most ratios the average level of ratios within an industry is considered the acceptable norm. Some of the more widely understood examples of gearing ratios are (Anderson, 2000): Debt to Equity Ratio, Times interest earned, Equity Ratio, and Debt Ratio 6.9 Pecking Order Theory Under this theory, funds that are generated internally represent a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s first selection or choice, which is followed by debt and then equity as the third choice (Frank et al, 2000) 6.10 Static Trade Off Theory The à ¢Ã¢â€š ¬Ã‹Å"Static Trade Off Theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢ basically consists of two versions and they both predict that companies have a capital structure that is optimal: The traditional version postulates the capital structure of a firm and is determined as a result of the trade-off in the tax benefits of debt and the costs expected as a result of financial distress. An optimal mix of debt and equity is obtained when à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦the marginal present value of tax savings equals the marginal present value of financial distress costs.à ¢Ã¢â€š ¬Ã‚  (Irvine et al, 2000) The second version, which is termed à ¢Ã¢â€š ¬Ã‹Å"agency theoryà ¢Ã¢â€š ¬Ã¢â€ž ¢, is a trade-off regarding the agency costs associated with an equity and the agency debt costs. An optimal debt-to-equity ratio minimizes the total agency costs. Prior to the merger of ASDA Group PLC and Wal-Mart, ASDA paid out dividends when operational profits permitted. In addition, the employees participated in a share scheme whereby 7% of their paycheck go into the scheme and this is still active after the merger. The start of the fiscal year also marks the period when employees can elect to sell, buy as well as float their shares. The post merger climate has changed this to a small degree in that the ASDA employees are purchasing Wal-Mart shares (Coursework.info, 2005). By providing employees with a vested interest in the company they work for via share ownership, management receives a higher level of commitment and this has helped the company achieve its goals and objectives as set forth in customer service and quality as well as internal baking, sales and other aspects of business. 7.1 Dividend Policy Theory of Modigiliani and Miller In 1961 Modigiliani and Miller argued that the value of a company is independent of that compa nyà ¢Ã¢â€š ¬Ã¢â€ž ¢s dividend policy (Estrada, 1996). The amounts of money that are paid out in dividend policy are in reality quite extensive. Thus the payment of dividends does deplete companies of cash which might be put to better use elsewhere. In those types of situations many firms opt not to pay out dividends in order to keep cash on hand. Thus there does seem to be a correlation, at least in the instances of some firms, whereby dividend policy is either linked or thought of in consideration of the companyà ¢Ã¢â€š ¬Ã¢â€ž ¢s overall value 7.2 Dividend Policy Theory of Lintner John Lintner (1956) developed this theory by utilizing two observational facts of dividend policy as the basis for correlation: That companies usually set long-run ratios regarding dividends tied to earnings and the amount of NPV projects which are available. NPV is a tool that evaluates investment decisions. Its primary advantage is the time value of money, calculation of uncertainty as well as the risks of the project that are inherent in its implementation (Odellion Research. 2004). And that earnings increases are not always a given, thus the dividend policy is not changed until new earnings levels are achieved and sustained. Of these two differing views Lintnerà ¢Ã¢â€š ¬Ã¢â€ž ¢s model takes a more pragmatic stance in that dividend policy is tied to corporate performance and long term stability rather than the need to pay out dividends for the sake of dividends. 8.1 Modigiliani and Miller The à ¢Ã¢â€š ¬Ã‹Å"Capital Structure Irrelevance Theoremà ¢Ã¢â€š ¬Ã¢â€ž ¢ states that a firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦capital structure does not affect firm valueà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  (Hill, 1996). Simply stated, a company can not increase the capital value of the enterprise by utilizing one capital structure in place of another as it is a static item. The assumptions put forth by Modigiliani and Miller are as follows (Hill, 1996): Investment decisions are independent of financing decisions, Financial markets are perfect, Financial markets are complete, and Financial markets provide equal treatment for those seeking financing as well as those who are providing financing. It is the first assumption, combined with the à ¢Ã¢â€š ¬Ã…“à ¢Ã¢â€š ¬Ã‚ ¦ traditional finance principleà ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚  (Hill, 1996) that represents the value of a company is calculated by the net present value of its anticipated future cash flows. The preceding means that there is only one value that can be assigned to that company and that its capital structure does not represent a value added benefit. Thus, the capital structures of ASDA and Wal-Mart have no relationship or bearing on the terms or outcome of the merger. Chapter 9 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Companies Risk Assessment Edward Altman (1983) in the 1960à ¢Ã¢â€š ¬Ã¢â€ž ¢s used à ¢Ã¢â€š ¬Ã‹Å"Multiple Discriminant Analysis in combination with a set of five financial ratios to result in the à ¢Ã¢â€š ¬Ã‹Å"Altman Z-Scoreà ¢Ã¢â€š ¬Ã¢â€ž ¢. This formula utilizes statistical techniques to predict the probability of failure for a company by eight items from the balance sheet: Earnings Before Interest Taxes (EBIT), Total Assets, Net Sales, Market Value of Equity Total Liabilities Current Assets Current Liabilities Retained Earnings in combination with ratios and the resultant weight factor as shown in the following Table 7: Table 7 à ¢Ã¢â€š ¬Ã¢â‚¬Å" Altman Z-Score (Altman, 1983) Ratio Weightage A EBIT / Total Assets x.33 -4 to +8.0 B. Net Sales / Total Assets X 0.999 -4 to + 8.0 C Market Value of Equity / Total Liabilities X 0.6 -4 to +8.0 D Working Capital / Total Assets X 1.2 -4 to + 8.0 E Retained Earnings / Total Assets X 1.4 -4 to +8.0 The preceding ratios are then multiplied by the weightage factors indicated with the results added as follows (Altman, 1983): Z-Score = A x 3.3 +B x 0.99 + C x 0.6 + D x 1.2 + E x 1.4 The following are the interpretation of these figures (Z-Score) after the application of the preceding (Altman, 1983): Z-Score above 3.0 This indicates that the particular company is à ¢Ã¢â€š ¬Ã‹Å"safeà ¢Ã¢â€š ¬Ã¢â€ž ¢, keeping in mind the figures utilized to compile the result. Z-Score falling between 2.7 and 2.99 A company falling in this category should be noted as being à ¢Ã¢â€š ¬Ã‹Å"on Alertà ¢Ã¢â€š ¬Ã¢â€ž ¢ as this is an area where caution needs to be exercised. Z-Score falling between 1.8 and 2.7 This indicates that there is a high probability that the subject company should go bankrupt in a time frame of two years from the date of the financial figures. Z-Score that is below 1.8 A Z-Score in this range means that the probability is extremely high of the company going bankrupt. The Z-Score was applied to Wal-Mart for the years 1997 through 2000 with the following results. As the financial figures needed to perform this same correlation for ASDA were not available the Z-Score test was not utilized, however it can be safely stated that Wal-Mart analyzed ASDA for the Z-Score and other factors prior to acquisition and in all probability found nothing negative. A fact that is borne out by the successful post merger results: Wal-Mart Z-Score for 1997 The following figures were utilized to obtain the Altman Z-Score: Table 8 Wal-Mart Z-Score for 1997 (Wal-Mart, 2000) Category Financial Figure (In Millions) 1. Earnings Before Interest Taxes (EBIT) 5,695 2. Total Assets 39,604 3. Net Sales 3,056 4. Market Value of Equity 65,895 5. Total Liabilities 20,973 6. Current Assets 17,993 7. Current Liabilities 10,957 8. Retained Earnings 17,143 The resulting Altman Z-Score is 3.26 Wal-Mart Z-Score for 1998 The following figures were utilized to obtain the Altman Z-Score: Table 9 Wal-Mart Z-Score for 1998 (Wal-Mart, 2000) Category Financial Figure (In Millions) 1. Earnings Before Interest Taxes (EBIT) 6,503 2. Total Assets 45,384 3. Net Sales 3,526 4. Market Value of Equity 115,131 5. Total Liabilities 24,134 6. Current Assets 19,352 7. Current Liabilities 14,460 8. Retained Earnings 18,503 The resulting Altman Z-Score is 4.11 Wal-Mart Z-Score for 1999 The following figures were utilized to obtain the Altman Z-Score: Table 10 Wal-Mart Z-Score for 1999 (Wal-Mart, 2000) Category Financial Figure 21,132(In Millions) 1. Earnings Before Interest Taxes (EBIT) 8,120 2. Total Assets 49,996 3. Net Sales 4,430 4. Market Value of Equity 261,000 5. Total Liabilities 26,369 6. Current Assets 21,132 7. Current Liabilities 16,762 8. Retained Earnings 21,112 The resulting Altman Z-Score is 7.26 Wal-Mart Z-Score for 2000 The following figures were utilized to obtain the Altman Z-Score: Table 11 Wal-Mart Z-Score for 2000 (Wal-Mart, 2000) Category Financial Figure (In Millions)

Willy Loman, the Modern Hero in Arthur Millers Death of a...

In Arthur Miller’s essay â€Å"Tragedy and the Common Man†, a picture is painted of a â€Å"flaw-full† man, known as the modern hero of tragedies. Miller describes what characteristics the modern tragic hero possesses and how he differs from the heroes depicted by classic Greek playwrights such as Sophocles and Aristotle. In order to understand how drastically the modern hero has evolved, one must first understand the basic characteristics that the heroes created by Sophocles and Aristotle encompass. The Greek tragic heroes, otherwise known as the protagonists, illustrated by tragic Greek playwrights, were never normal people. All heroes were citizens of high class, such as princes. This was due in part because plays were seen as a luxury for†¦show more content†¦Willy is a man whose underlying fear of being displaced has created such a powerful unwillingness to be submissive to his perception of his loss of dignity, that he believes only death itself wi ll secure him everlasting admiration. In order to fully appreciate how Willy believes that death will bring him the dignity that he so desperately craves one must first look at the scene in â€Å"Death of a Salesman†, during which Willy visits his boss Howard. During his visit Willy tells Howard about an elderly salesman he met named Dave Singleman and how meeting Dave made Willy realize that â€Å"selling was the greatest career a man could want.† (Miller 1801) â€Å"When he died – and he died the death of a salesman†, Willy tells Howard, â€Å"hundreds of salesmen and buyers were at his funeral†¦In those days there was personality in it, Howard. There was respect, and comradeship, and gratitude in it† (Miller 1801). This quote demonstrates how Willy believed death would bring him the respect, comradeship, and gratitude that he never had in life. As stated in the essay, Arthur Miller describes the modern hero as someone who possesses an â€Å"unwillingness to remain passive in the face of what he conceives to be a challenge to his dignity, his image of his rightful.† Examples of this can be seen on pages 1809 through 1810 of the play. This is the scene where Willy goes to his friend Charley to ask for money in order toShow MoreRelated Willy Loman, Redefining the Tragic Hero in Arthur Millers Death of a Salesman1065 Words   |  5 PagesWilly Loman, Redefining the Tragic Hero in Arthur Millers Death of a Salesman      Ã‚  Ã‚   The events in the life of Willy Loman in Arthur Millers Death of a Salesman are no doubt tragic, yet whether or not he can be considered a tragic hero in a traditional sense is a topic requiring some discussion. Aristotle set the criteria for qualities a character must possess in order to be considered a tragic hero. In order to reach a conclusion on this matter, all six criteria must be examined to determineRead MoreArthur Miller s Death Of A Salesman Essay1567 Words   |  7 Pagesis predetermined by fate, while the audience experiences catharsis (Irving 247). Arthur Miller’s play Death of a Salesman is considered to be a tragedy because this literary work has some of the main characteristics of the tragedy genre. In this play, the main character Willy Loman possesses such traits and behaviors that lead to his downfall, and the audience experiences catharsis. Willy Loman as a real tragic hero comes to the decision to commit suicide because of serious fina ncial problems ofRead MoreDeath Of A Salesman By Arthur Miller1573 Words   |  7 Pagesit is predetermined by fate, while the audience experiences catharsis (Bloom 2). 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It was not until the modern age that playwrights began to deviate somewhat from the basic tenets of Aristotelian tragedy and, in doing so, began to create plays more recognizable to the common people and, thereby, less traditional. Even so, upon examinationRead More Willy Loman as Tragic Hero of Death of a Salesman Essay1519 Words   |  7 PagesWilly Loman as Tragic Hero of Death of a Salesman       Willy Loman, the title character of the play, Death of Salesman, exhibits all the characteristics of a modern tragic hero. This essay will support this thesis by drawing on examples from Medea by Euripedes, Poetics by Aristotle, Oedipus Rex by Sophocles, and Shakespeares Julius Caesar, while comments by Moss, Gordon, and Nourse reinforce the thesis.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Death of Salesman, by Arthur Miller, fits the characteristics of classicRead More Tragic Heroes in Arthur Millers Death of a Salesman and Henrik Ibsens A Dolls House1709 Words   |  7 PagesHeroes in Arthur Millers Death of a Salesman and Henrik Ibsens A Dolls House Dramatists such as Aristotle started to write a series of plays called tragedies. They were as follows: the play revolved around a great man such as a king or war hero, who possessed a tragic flaw. This flaw or discrepancy would eventually become his downfall. These types of plays are still written today, for example, Arthur Millers Death of Salesman and Henrik Ibsens A Dolls House. Death of Salesman shows theRead MoreEssay Death of a Salesman, Tragic Hero. Willy Loman.1503 Words   |  7 PagesTo what extent can Willy Loman be considered a tragic hero according to Aristotle’s rules? Arthur Miller presents his play ‘Death of a Salesman’ in the ancient form of a tragedy. Aristotle has defined his idea of the ‘perfect’ tragedy in his text, ‘Poetics’ (350 BC).Here he suggests that the protagonist must fall from an elevated social standing as a result of a â€Å"fatal flaw† within the character; the fall from the main character creates resolution to the play which is seen as just; finally, AristotleRead MoreExamples Of Everyday Tragedy732 Words   |  3 Pagesflows to mind is death and destruction. Even though this way of thinking is valid, there are several ways to analyze the concept of tragedy. Tragedy is when one suffers an unexpected punishment that has merged together through ones actions. Arthur Miller believes that tragedy can happen to any type of person if youre rich or if youre poor, no matter what, it can happen to all of us. Arthur shows this to us in the book Death of a Salesman where the common man meets t he fate of modern day tragedy.

Comparing London by William Blake and Westminster Bridge...

Comparing London by William Blake and Westminster Bridge by William Wordsworth William Blake was born in London in 1757. He was taught by his mother at home, and became an apprentice to an engraver at fourteen. In addition to poetry Blake spent much of his time painting. Blake lived on the edge of poverty and died in neglect. His poetry receiving little acclaim while he was alive. ‘London’ was written by Blake in 1789. Taken from Blake’s ‘Songs of Experience’, the style is darker and in a sense depressing. It describes the city after the Industrial Revolution. Blake takes a very negative and hopeless view of the city and the lives of those living within it. He hated the way London was becoming,†¦show more content†¦In the second stanza Blake describes the whole scale of humanity from infant to man to feel general disgruntlement with the life that London inflicts upon them. ‘Ban’ suggests restricted or prohibited. Blake however suggests that men have in a sense designed their own prison, implying this by use of ‘mind-forg’d manacle’. He describes infants who cannot speak but are nonetheless born under the chains, which Blake suggests society has needlessly inflicted upon itself. Again he creates effect by the repetition of ‘every’. Blake goes on in the third stanza to comment ok the use of child labour under appalling conditions, attacking the church as it ignores the cries of the chimney sweep. He is disgusted with this practice and appeals against it and effectively shows the church to be appalled by the cries of the complaining chimney sweeps. He describes the church as ‘blackening’, which illustrates the industrialisation of the church. Just as he contrasts the chimney sweeps with the indifferent church, he contrasts the soldiers sent out to die, while the palace pays no attention – ‘the hapless soldier’s sigh runs in blood down palace walls.’ This is a literal allegory for the French Revolution taking place at the time, where Blake suggests that if the ‘palace’ ignores the dries of the people a far greater threat, suchShow MoreRelated Comparing Composed Upon Westminster Bridge by William Wordsworth and London by William Blake1459 Words   |  6 Pag esComparison between William Blake and William Wordsworth’s Views of London William Blake grew up in the slums of London and this is shown in his poem, he wrote his poem in the slums and back alleys of London as he never had very much money. He describes London as being â€Å"charter’d†, this gives us the impression that everything has rules and boundaries in London, and that there is no mystery to be discovered. Also chartered means on a map, almost as if it is owned, by the king perhaps. The lineRead MoreComparing the Poets Use of Language To Present Their View of London in Composed Upon Westminster Bridge by Wordsworth and London by Blake1571 Words   |  7 PagesComparing the Poets Use of Language To Present Their View of London in Composed Upon Westminster Bridge by Wordsworth and London by Blake London was, is and undoubtedly always will be, a city of enormous interest and controversy, especially for those employed in the field of writing. The two poems, Composed Upon Westminster Bridge, 1802, by William Wordsworth and London, 1794, by William Blake, demonstrate this through their opposing views. The intention of both WilliamRead MoreWilliam Blake And William Wordsworth1099 Words   |  5 Pagesthose poets are William Blake and William Wordsworth. Although Blake was a contemporary of the era, he had a little in common with Wordsworth. Religion is the focus of Blake’s visionary works, which does not exist in any other Romantic poetry. William Blake uses satire in most of his work to criticize the corrupting influence of religion on imagination. For Wordsworth, nature was like a religion. He talks about his own spiritual life when he refers to nature. According to Wordsworth, being alive meantRead MoreEssay on Compare London and Composed upon Westminster Bridge2519 Words   |  11 PagesCompare London by William Blake and Composed upon Westminster Bridge, September 3rd 1802 by William Wordsworth. As a part of my coursework for GCSE English, I will be comparing two poems written about London in nineteenth century. The two poems I have chosen to write about are: London by William Blake and Composed upon Westminster Bridge, September 3rd 1802 by William Wordsworth. Both poems give their own, different accounts of London at around the same period. One is written with a

Definition of a Family free essay sample

Defining a family is difficult because many different people have many different ideas on what a family is and is not, there is no right or wrong answer, its all about others perspectives. Since many people have many views on what a family is, there is no set definition. Vainer institute claims that a family is 2 or more people bound together over time and mutual consent, while in 1949 Morocco defined a family as a couple that is sexually active and have one or more children.Later in 1971, Burgess et al defined a family as a group of persons united by the ties of marriage, blood or adoption and Social Science defined a family as a group of individuals who are related by affection, kinship, dependency or trust. All these different people have had a different idea on what families are, but are any of them wrong? When reading each definition, I only found one similarity, a family is at least two people who are together. We will write a custom essay sample on Definition of a Family or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page So is it possible that that has become what a family is? My definition of a family is similar to the definitions given by the Vainer Institute and the Social Science institute. I believe a family is a group of individuals who want o be together and who trust each other and love one another (either as a romance or as a friendship or kinship). I do not believe that one has to be married or has to have children to be considered a family. In todays times Burgess et al, as well as Murderous definition of a family would not match many of the families in our community. Our society is able to view different ways of living to still be called a family, for example today we would call a single mother with two children a family.This is because they care for each other unconditionally, and support each others deeds. Jane Howard once said, Call It a clan, call It a network, call It a tribe, call It a family: Whatever you call It, whoever you are, you need one. I believe this Is true, there is no set definition on a family because each family has flaws and differences that make them the family that they are. Therefore, Jane Is pointing out that no matter what your family looks like, or who they are, the most Important thing Is that you have people to love and care for you, and In the end that Is your true family.