General Motors

Is primarily engaged In the production of vehicles. It designs, manufactures and markets car, trucks, and other automobile parts all over the world. GM has a strong brand portfolio gives It significant competitive advantage. However, sustained decline in light vehicle sales as a result of increasing durability of vehicles and weak economic conditional pressure on the overall performance of the company. strengths Global presence New vision and strategy Strong brand portfolio Strong presence in China weaknessHigh cost structure Brand dilution Bureaucratic culture Car recall Knowledge of home market 4 well performing brands Threats Opportunities Positive attitude toward â€Å"green† vehicles Fluctuating fuel prices Increasing fuel New emission standards prices Changing customer needs Growth through acquisition Rising raw material prices Intense competition Exchange rates Strengths: Global presence, GM was the leading auto manufacturer in terms of sales for 77 years until 2007. Th e business has grown its presence In the world and is now operating in 157 countries, while its Chevrolet brand reached world record sales (4. million units). New vision and strategy. after 2008 bailout. GM has experienced major changes and reorganized the way it does business. New members were appointed to the firm's management team with Daniel Akerson as the CEO. He shook GM†s bureaucratic organizational culture and introduced new strategy and visions to the business, GM became smaller but leaner and is becoming more. Strong brand portfolio, GM currently sells 18 automobile brand to satisfy as many customer needs as possible. The most popular brand are Cadillac, Buick GMC, and Chevrolet that sells very well In USA and china.Chevrolet reached global sales record and sold 4. 95 million units in 2012. Strong presence in China, China is the largest automotive market and Is an emerging economy that grows steadily. It is also the second largest market for GM in terms of vehicle un its sold. An early entrance into China, well performing partnerships and local Buick brand are the main reasons why GM has a strong position in China's automotive market. Knowledge of home market, GM is the largest car manufacturer In US and currently holds more than 18% market share. 1 OF3 I nls Is malnly Oue to extensive Knowledge 0T market ana Its consumer. well performing brands, GM's has one of the highest cost structures compared to all automobiles manufacturers. GM's Cadillac, GMC, Chevrolet, and Buick are among the best-selling brands in US and China and brings in more than 80% of all General Motors sales. Weakness: High cost structures, GM has one of the highest cost structures compared to all automobiles manufacturers. GM costs are driven by its generous employee compensation and pension plans. Although GM has reduced its cost after 2008 it still has a lot to do to become cost competitive.Brand dilution, GM controls 18 automobile brands that vary in quality and are sold in separate markets. With so many brands in sales, customers find it hard to identify which brand belongs to GM family, as only one of 18 brands carry GM letters. The result is lower GM brand awareness. Bureaucratic culture, before reorganization in 2008, GM was infamous for its rigid culture and structure. Since them, the company has made some cultural and structural changes but should continue improving as it isn't as quick as it competitors in reaching to constantly changing environment.Car recall, last year, General Motors ecalled 119,000 pickups due to missing hood latch. The same year it had to recall it Chevrolet volt and fix battery problems. Recalls are expensive and damages brand reputation, especially when the company announces them so often. Opportunities: Positive attitude toward â€Å"green† vehicle, today consumers are more aware of the negative effects (air pollution) caused by cars fueled by petrol and diesel. Large quantities of C02 emission intensity greenhou se effect, and negatively impact the life on earth, and thus, consumers are more likely to buy new hybrid and electrical cars hat emit less c02.Increasing fuel price, increasing fuel prices open up large markets for GM's hybrid and electric cars as consumers shift toward cheaper fuel types. Changing customer needs, by introducing new cars models, General Motors would be able to meet changing customer needs for smaller and more fuel-efficient cars. Growth through acquisitions, GM has successfully acquired many car companies in the past and should continue doing so to gain new skills assets and access to new market. Threats: Fluctuating fuel prices, due to increasing extraction of shale gas, future fuel prices hould drop and make electric and hybrid cars less attractive.GM would treat the project of hybrid and electric cars as losses, rather than perspective future cars. On the other hand, steeping fuel prices would make current GM models less attractive to cost conscious consumer low er amounts of fuel. New emission standards, a new wave for stricter regulation on vehicle emission standards may negatively affect GM's finances. The corporate would have to invest large amount of money to comply with these new standards. Rising raw material prices, rising prices for raw metals will lift he cost for auto manufactures and result in squeezed profits for the companies.Intense competition, for 77 years from 1931 to 2007, GM led global sales of vehicles, but lost its position in 2008 due to increased competition of cheaper and better quality cars, especially from Japan and South Korea. Exchange rates, China are GM's second largest market and the business earns huge profits there. Exchange rate fluctuations threaten GM's profits if the dollar would appreciate against Chinese renminbi.

Use Word’s Replace to Transpose a Column of Names

Use Word's Replace to transpose a column of names Available from:http://blogs. techrepublic. com. com/msoffice/? p=4156 Date: November 22nd, 2010 Author: Susan Harkins Category: Microsoft Word You’ll often see a column of names entered in a Word document either as a list or part of a table. Listing the names is no problem, but changing their order after they’re entered could be. For instance, let’s say your document contains a list of names entered in firstname lastname format, but you want them in lastname, firstname format. Do you have to re-enter them?No, there’s a simple wildcard trick you can use with Word’s Replace feature that will take care of the transposing for you. To get Word to transform a list or column of names, do the following: Select the list of names you want to transpose. From the Edit menu, choose Replace. In Word 2010, click Replace in the Editing group on the Home tab. Click the More button and check the Use Wildcards option. This is an important step—if you miss it, this technique won’t work. In the Find What control, enter () (), with a space character between the two sets.In the Replace With control, enter the following characters 2, 1, with a space character before the second slash character. Click Replace All. Word will transpose the first and last names and separate them with a comma character. When Word asks you to expand the search, click No, and then Close to return to the document. Wildcard explanation Once you understand the wildcards, the whole trick is easily exposed: (): The parentheses aren’t true wildcards, not in a matching sense. They allow you to divide a pattern into logical sequences. :The brackets mark the beginning and ending of a word or phrase. : The slash character replaces characters, and is used with a number that specifies a bracketed component (above). In this case, the Find What code splits the two names into two separate sequences. The 2 component in t he Replace What code replaces the contents of the first sequence with the contents of the second sequence. The 1 component replaces the contents of the second sequence with the contents of the first. As you can see, you’re not limited to just transposing first and last names. With these wildcard tools, you can rearrange quite a bit of content!

Essential of investments Assignment Example | Topics and Well Written Essays - 500 words

Essential of investments - Assignment Example The accrued interest on the bond turned out to be $2.42. The YTMs were calculated using the YIELD function on excel, with settlement date and maturity date taken at a difference of 10 years, coupon rate being 14% and then reduced to half at 7%, the bond price being $900, redemption value being $1000, and 1 coupon annually. The YTM based on what the firm promised is 2.55%. However, based on what the investors expect after the lenders and the firm agreed to lower the payments the YTM became 1.80%. The expected YTM is lower than the YTM investors were actually promised. a. The initial price is calculated as P=$705.46, with [n=20, I/Y=8, PMT=50, FV=1000]. The price in the next period would be P=$793.29, with [n=19, I/Y=7, PMT=50, FV=1000]. Therefore the HPR is 19.53% calculated as, [{50+(793.29-705.46)}/705.46] c. The 6% coupon bond performed better than the zero coupon bond in either case, when the interest rose or when they fell. This is probably due to the fact that the 6% coupon bond has a higher convexity. This shows that whenever we compare the change in yields of bonds by equal amounts as is in this question, the bond with higher convexity will always outperform the one with lower convexity. The duration was approximately equal but the convexity of both the bonds were different in this example which is always positive implies that the convexity effect always favors the higher convexity bond. d. Such a scenario where the bonds would be priced at the same yield to maturity if the rates changed in equal amounts cannot exist. No investor would buy a bond with a lower convexity as it always underperform the higher convexity bond. The price of the lower convexity bond will be low with a high YTM, which means that the higher yield is to compensate the investor for investing in a lower convextiy bond. The top-down method of security valuation is approach used

Should the United States open its doors to more (or fewer) immigrants Essay

Should the United States open its doors to more (or fewer) immigrants - Essay Example This is where all people aspire to live in and make a living. It is through such thoughts of making it big in the United States that lead to many people trying to relocate there. However, their means of getting into the country might not be through the right or legal channels. They, thus, end up being caught by immigration officials because of trying to sneak into the country. Deportation is followed immediately they are found out with nothing and sometimes, they might serve a jail sentence. The United States should not open its doors to immigrants and the reasons for this are clearly discussed by reviewing the effects of allowing a lot of immigrants into the country. The flooding of immigrants into American soil has had very many effects. There are positive, but there are also negative effects. Those in favour of America closing down its borders to immigrants argue that the negative things outweigh the positive. This school of thought could be true. The attitude that has brought this on cannot be blamed entirely on stereotyping among those against it. It is a known fact that the different cultures that cross the border into American soil bring a difference into the land (Bromwell, p. 32). This difference most of the times is not always positive. An example is the Muslim religion. This religion does not go down well with some of the American people. The religion is usually affiliated with violence. Protests and demonstrations have been carried out to ensure the religion does not spread more than it already has. Over the past decade, Americans have allowed immigrants to be citizens of their country. This means that more and more of the original inhabitants of the land are growing extinct with each passing year. This should not be the case. Native Americans, the original inhabitants of America, are being considered immigrants (Bromwell, p. 45). This is due to their small number and dying culture. Once again, the factor

Reflective Portfolio Coursework Essay Example | Topics and Well Written Essays - 2000 words

Reflective Portfolio Coursework - Essay Example At the initial stage, my general idea regarded ageing population as a highly detrimental scenario. However, with progressive studies and analysis, I developed greater understanding and my perception changed significantly. Ageing population is a by-product of development and luxurious lifestyle and hence, cannot be eliminated. The primary objective for society should be to increase birth rates so that proportion of youngsters remains compatible with ageing population. Upon the subject matter of ageing population, as a student, my general perception is that this is an unavoidable factor in rising economies across the globe. I feel that many countries in the world are likely to face the problem of ageing population in the near future. Countries of Europe and Asia are increasingly showing signs of ageing population. The world has never recorded such high growth in ageing population as has been observed since past few decades; this trend is expected to stay on in the future. An aging population is characterized by decline in the population of children and rise in that of the elderly. An ageing population scenario arises when life expectancy levels are seen to rise and birth rates appear to fall. Population ageing is generally associated with two main demographic factors: As per my initial analysis, ageing population can lead to multiple problems in the future. Elderly people who have enough savings, but cannot work, do not contribute sufficiently towards social development. Due to scarcity of young population, labour will not be cheaply available; as a result, there will be a huge scarcity of fresh skills. This reflective report incorporates my significant analysis upon the subject of ageing population and its effects; its current standing globally; and ways in which ageing population is likely to impact the future. This reflective report has been prepared on basis of the strategic foresight technique. Strategic foresight is a method by which possible

Long term effects of bariartic surgery(bypass) Research Proposal

Long term effects of bariartic surgery(bypass) - Research Proposal Example As noted by Walsh (2013) bariatric surgery results in significant weight loss than nonsurgical treatment among patients with diabetes and who are mildly obese. However, evidence for long-term efficacy and safety still remains limited. Although patients with obesity problems loose more weight with bariatric surgery as compared to medical weight-loss treatment, the study is going to examine the long term effects of bariatric surgery since there are many risks and benefits associated with the surgery. There are different types of weight loss surgeries each with its characteristic risks and benefits. Some of the factors that impact on the bariatric surgery in the long term include: eating habits, the body mass index of the patients, previous stomach surgeries, and health conditions linked to obesity. With regard to the effect of bariatric surgery to diabetes, Rao and Subhash (2012) argued that weight loss surgery is currently the most effective diabetes treatment with regard to morbid obesity and want to obtain amelioration of the medical co-morbidities of obesity and sustaining significant weight loss. Severe obesity is chronic condition which is difficult treat with exercise and diet alone. This is where bariatric surgery comes in handy. It involves an operation on the stomach or the intestines that assists patients who extreme obesity for them to loose weight. There are risks and rewards associated with bariatric surgery (Pories, 2008). The surgery works in manner that restricts the intake of food (Jaunoo and Southall, 2010), thus promoting weight loss and reducing the risk of disease such type 2 diabetes and cardiovascular ailments. Other surgeries have been performed in order to interrupt how food is digested, thus preventing some nutrients and calories, such as vitamins from being absorbed. Obesity is a source of distress, which is linked to a negative body image, more intimate and interpersonal problems, and more

The Tesco Company Way of Development Essay Example | Topics and Well Written Essays - 1750 words

The Tesco Company Way of Development - Essay Example Sustained competitive advantage can be gained by offering what creates value for the customers. Porter defines value as ‘what buyers are willing to pay’. Bevan and Murphy (2001) contend that firms can do this by either lowering the costs or doing something different from competitors. Tesco had initially launched their online channel Tesco Direct but today they have moved beyond online grocery retailing and offer a wide range of products. Their website www.tesco.com enables the customers to buy online from their familiar local store. The pricing and inventory system is linked directly to Tesco.com so that the customers can select the good at the prices they are used to (MÃ ¼ller-Lankenau, Klein & Wehmeyer, 2004). They charge a nominal fee as delivery charges for their online customers. Besides, Tesco had the first-mover advantages in introducing online grocery shopping but in addition, it gained its market leading position by educating and empowering its customers to take up the online channel (Tse, 2005). This created the point of differentiation which added value to its service offering, thereby giving it the competitive advantage. Another point of differentiation in its services that Tesco has created is that it is the only retailer whose site is accessible by the disabled or the impaired people. The government of UK is attempting to make improve the quality of their life so that they live as normal a life as others. Tesco has taken the step and integrated accessibility into the main stream grocery site (Mairs, 2006).

5 Conceptual Pillars Essay Example | Topics and Well Written Essays - 750 words

5 Conceptual Pillars - Essay Example Communication refers to a two way sharing of information during the course of profession. Critical thinking is the capacity for evaluating the professional issues and adhering to an objective analysis of the issues faced during one’s professional life. Holism is about considering a patient to be one integral whole, taking the varied personality aspects of a patient to be a unified entity. It is only when one exhibits allegiance to the five conceptual pillars during the nursing profession that one is deemed to possess the important competencies and skills that constitute a thorough professional. Nursing being a profession pertaining to service and care, every nurse is to bear with an immense responsibility for upholding the conceptual entities that constitute one’s professional life. The core nursing conceptual pillars tend to define the eventual driving force that constitutes and shapes the overall professional life of a nurse. When it comes to professionalism in nursing, the attitude a nurse exhibits towards one’s profession does matter a lot (Mason & Whitehead, 2003). The way a nurse perceives one’s profession and practically conveys that view towards others, including patients and colleagues does stand to be of immense importance and relevance in the professional domain (Mason & Whitehead, 2003). The relevance that the nursing profession extends to the core competencies does play a major role with regards to the safety and quality inherent in the overall professional care of any patient. Thereby it is extremely important for any nurse to acquire the relevant competencies in terms of the required skills, attitudes and knowledge, recognized by the credible bodies of opinion and the professional accreditation institutions and organizations. The competency acquisition in the line of professional skill enhancement includes the attributes like patient centered care, informatics, capacity for collaboration and teamwork, safety, evidence based

The Calabasas Smoking Ban Essay Example | Topics and Well Written Essays - 500 words

The Calabasas Smoking Ban - Essay Example their residence) and therefore would greatly reduce their smoking habit. It is such a good move by the city making the ordinance as the reason for smokers to eventually quit smoking. As a result of this, it would no doubt lessen their risks from diseases brought about by smoking. Moreover, I believe that the ordinance has been thoroughly justified through statistics and findings on the effects of the secondhand exposure to smoke. The numbers of death outcome due to the effect of secondhand (or side stream) smoke greatly supports the ordinance which also, I suppose, provides a solid foundation. The figures give explanation for it all and have constructed reasonable argument in defending the ordinance. In my own point of view, this is one of the good reasons that the City Council does not have any opposition to the ordinance. The City of Calabasas is in one way preserving the community. Through the no-smoking ordinance, residents and the public will greatly benefit from it thus making the city a healthy place to live in. The city may be just a small place to be the starting point and the example of a smoke-free place but what the city council has come up with is just and reasonable although to some people think it sounds ridiculous. Well for me, it is not ridiculous.

Culture Essay Example | Topics and Well Written Essays - 250 words - 6

Culture - Essay Example The pregnant women are also prohibited from touching anything with glue to avoid the child being born with birthmarks (Community College, 2005). About foods, the Chinese also believe that if the expectant woman eats too much the baby will be too large making the labor harder. The mothers are advised to take coconut milk, so that the baby will have a good quality skin. On sex determination, the Chinese believe that if the belly is pointed the baby will be a boy and if rounded, it will be a girl. When the baby is finally born, it is the role of the father to give it the first bath. The placenta must be kept near the birth place so that in death, it is used as a sign of atonement and humility of the life on earth. The placenta can as well be used to make medicines cure various diseases (Simpson et al., 2008). Post-partum care involves taking of hot foods, including ginger, pig’s feet, and high protein meats, to rebuild the lost blood supply. Cold foods are believed to cause headache or arthritis in old age. To prevent complications, the mothers should avoid showering, washing hair, or exposing themselves to cold conditions. Before handling the baby, they are required to purify their hands using ginger. To increase milk production, the mothers are required to take papaya soup and fish. The first milk, colostrum, is considered dirty and should be discarded (Community College, 2005). In conclusion, Chinese people have a strong belief in their culture as long as the pregnancy is concerned. They observe the practices right from the pre-natal stage to post-partum care and the way the child is raised. Women are more inclined to the

Young Goodman Brown Analysis Essay Example for Free

Young Goodman Brown Analysis Essay Plot: â€Å"Young Goodman Brown† tells a tale of a man named Goodman Brown and his journey into a forest one night. That night, he said goodbye to his wife Faith, who begged him not to go and stay with her. He went anyway and met with a man on the road. Goodman Brown and the man conversed on the way, while Brown was trying to convince the man that he is a good Christian and does not want a part in evil, saying that his family and the ones before him were Christians and good people; Brown did not want to be different. The man replied him saying that he knew Brown’s father and grandfather, as well as members of his church and the governor of the state. Brown was surprised by all what the man was saying, but soon found out when he finally reached the destination of his journey, the ceremony where he and a young woman are to be new converts. There, he saw faces of many respected members of the community, the minister, deacon, good Christian men and women and Indian priests. However, Brown does not see Faith and is hopeful that she might not be there. To his disappointment, Brown sees that his wife Faith is the other convert. He then tells Faith to look up to heaven and resist the devil, at this moment, Brown found himself alone in the forest. When Brown returned home to Salem Village in the morning, everyone seemed evil to him, including the minister, the deacon praying and even his wife. Brown was not sure if his forest encounter was a dream or reality and he lived the rest of his life in despair. Structure: The incidents in the story were arranged chronologically. There was a beginning and an end, with events happening in between. There were no flashbacks, but there might have been some foreshadowing, to hint that maybe Brown’s wife Faith will be at the ceremony. Type of Story: â€Å"Young Goodman Brown† is a short story, as defined by Robert DiYanni (2008), it revealed the characters â€Å"in dramatic scenes, in moments of action and in exchanges of dialogue† (p. 47). The story also include several characteristics of short story, such as a realistic time and place setting; recognizable human characters motivated by identifiable social and psychological forces; and a plot which illustrates a sequence of related events (DiYanni, 2008, p. 7). It told a complete story with set-up, conflict and resolution. Characters: The main characters of the story are Goodman Brown: a young, curious, good Christian and a newlywed husband of Faith; Faith: a young, beautiful wife of Goodman Brown; and the Old Man: a cunning, evil man that tempts Goodman Brown into attending the ceremony. Other characters of the story are Goody Cloyse, the Minister and Deacon Gookin. All three are Christians and respectable members of the community, but in secret, as reveled at the ceremony, they all appeared to be followers of the devil. Setting: The story takes place in Salem Village. The majority of the story happened in a gloomy forest and at night. The setting could be symbolic of the events that happened in the forest. Sorcery, witch craft, the devil and evil are often associated with darkness and nighttime. â€Å"Young Goodman Brown† was no different, the ceremony took place at night and Goodman Brown had to travel through a dark, gloomy forest to get there. Symbolism: There were objects and events that served as symbols in the story. These symbols and events represent the devil, witchcraft and sorcery. The snakelike staff the old man had with him, several mentions of fire, the dark gloomy forest and the actual ceremony all represents evil. The author made this clear to the readers by having Goodman Brown point out what seemed evil throughout the story. Language and Style: The language and informal style of the story is similar to the time period in which the story was written. At that time, people spoke the way the author wrote and actual attacks took place on accused witches of the time. This can be seen with the famous Salem Witch trials in history. Theme: A theme that can be identified in the story is that of the unclear distinction between dreams and reality. The readers were presented with a blurred line between reality and dream or the supernatural. For example, it is hard to discern if the witch gathering Brown experienced in the forest actually took place or if it was a dream. Even though Brown’s life changed dramatically as a result of the forest incident, as readers, we are not clear as to if it really happened or he dreamt it. Historical Context: The author references events that took place in the Puritans’ history. The story demonstrated awareness of the social, economic and political happenings of the era it was written. For example, there are accounts of the Salem Witch trials actually taking place, and various fights between the Indians and Colonists, which the author made mention of Indians in the story.

Human Resource Management Essay Example for Free

Human Resource Management Essay The key to transform a great business idea into reality. Every business concept has a hand in hand relation with the manpower who will drive various aspect of the business. Unless the human resource and various aspect of it is not understood and utilized appropriately the success of business Competency and Its Mapping Competence (or competency) is the ability of an individual to perform a job or any given assignment properly. A competency is a set of defined behaviors that provide a structured guide enabling the identification, evaluation and development of the behaviors in individual or group of employees. Various kind of competency was understood and based on this an individual or group of individual may be assigned a job. At the same time I got an opportunity to assess my personal competency and how it may be shifted to expert level i.e. I was not very comfortable with sudden changes in the course action suggested by my senior – dealing with non clear instruction use to disturb me. But now I have understood that this is a part of job as one grows up in the corporate structure. And will have to manage such situation with better competency. Recruitment The process of recruiting an individual for some known set of job is also one of the important take away from this course. This refers to the process of attracting, screening, and selecting a qualified person for a job. The process to achieve competency in all the above mentioned skills was discussed in the course and it gave a fairly good idea on how to manage. Training and Development Training and development is the field which is concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. A well trained employee is the most valuable asset to the organization – as he is capable of executing most of the process desired by the respective individual. Important Legal Aspect In Reference to Indian Labor law. The legal aspect in the context of Indian labor law – we got acquainted to some of the important laws which we must know as managers. This is for our benefit, the benefit of the group, company, society and the nation at large. The bellow mentioned acts were very informative. ââ€" ª Industrial Disputes Act 1947 ââ€" ª Trade Union Act 1926 ââ€" ª Factories Act 1948 ââ€" ª Employee’s Provident Funds Misc. Provisions Act 1952 ââ€" ª Employees’ State Insurance Act 1948 ââ€" ª Maternity Benefit Act, 1961 ââ€" ª Payment of Gratuity Act 1972 ââ€" ª Employees’ Compensation Act 1923 Although the take away in this course cannot be documented fully but I have pointed out few of them which was important to me. The take away will be demonstrated in the time to come by the way it is implemented in the real and practical situations. HR audit on Appraisal System HR audit is the systematic verification of various aspect of human interaction with the concerned job. This encompasses job analysis and design, recruitment and selection, orientation and placement, training and development, performance appraisal and job evaluation, employee and executive remuneration, motivation and morale, participative management, communication, welfare and social security, safety and health, industrial relations, trade unionism, and disputes and their resolution. HR audit is very much useful to achieve the organizational goal and also is a vital tool which helps to assess the effectiveness of HR functions of an organization. It gives an idea that the organization is aligned to the organizational vision, mission and goal or not. In reference to this assignment I have done audit of â€Å"appraisal system and its linkage to pay for performance† Appraisal System and Pay for Performance The purpose to do this audit is to examine and pinpoint strength and weaknesses related to HR areas – like appraisal system and Pay for performance system to enable an organization to achieve its long-term and short-term goals. This audit is done for my own organization. Few suggestions for improvement are also added. The present Appraisal system The job role is clearly explained and is quantified. The performance is rated as A+ , A, B+ , B and C. The one who exceed in achieving the goal this will get A+ and so on. The one who gets A+ will be rewarded monetarily for display of great performance which exceeded the given target. Rest all will not be financially rewarded. This happens every quarter and finally at the end of financial year. Management felt it needed to use pay-for performance as an additional inducement either to achieve particular goals, to reinforce learning and/or team behavior in semiautonomous teams, and or to compensate for an increase in span of control due to de-layering. In this assignment I will try to point out the negatives of this kind of appraisal system Negative points Everyone is concerned for their target and tend to ignore the following. Specifically, they motivate employees to focus excessively on doing what they need to do to gain rewards, sometimes at the expense of doing other things that would help the organization. 1. The senior many time fails to inculcate employee motivation towards their individual achievement goal – which in turn is a component of immediate senior goal. i. Hence fails to inculcate the charm of achieving challenging but doable goal. 2. There is a quota of number of person who will get recognized for excellent performance. Corporate budgets for bonuses often limit payout. i. That in other terms means the achievement of goal is not the only measuring parameter. There are several more differentiating factors which decide that the individual will get recognized or not. ii. This sometime becomes non motivating factor in the mid of the evaluation course when an individual realizes that the recognition is based on the ability beyond the achievement of target. iii. Managers can lose commitment to the pay system if it pays out more than anticipated due to problems in payout standards and if there are changes in performance standards due to changes in technology and organizational arrangements and unanticipated learning curves. iv. It is changing circumstances that make it difficult for managers to sustain links between pay and performance in a way that will avoid perceptions of unfairness and inequity. Such perceptions can undermine the perceived link between pay and performance so important to sustain its motivational power. 3. There is no formal discussion with the HR representative during the appraisal. i. Which leads to inappropriate focus of personal development from HR point of view. In other words, rather than assuming that there are universal best practices for pay-for-performance, it may be that what is effective for a particular organization depends on some unique aspects of its culture, and one must, therefore, be cautious in generalizing from one organization to another, even within the same industry. To ignore employee discontent with the pay system would mean undercutting the high-commitment culture. Suggestion for changes 1. Discussion on the goal with the individual – monthly, quarterly as well as half yearly and finally annual. 2. The recognition of performance should be based on the attitude and genuine motivation towards achievement of goals set during the above discussion. 3. Appraisal should be done in presence of HR representative and immediate supervisor. 4. Many times the individual does not know why he is being asked to do any specific job and is unable to see the bigger picture i.e corporate strategy, competitive strategy and functional strategy. And hence the individual does not feel himself inclusive in the overall process. 5. Apart from the specific goals of the company – there must be a focus on the personal skill, knowledge and attitude of the employee. There must be a discussion on the training need and requirement. This will strengthen the most valuable asset of any organization. 6. The pay for performance should not be limited to little number of persons. It should be distributed in form of slabs to all. 7. High commitment can only be created if employees develop an emotional attachment to the task, management, and the company. This in turn can only be developed if they feel fairly treated. And, this in turn is a function of how much voice they have in issues that affect task performance and their well-being. 8. The recognition of performance should not be based on the skills other than the professional need.

Health Disparities in New Zealand: A Literature Review

Health Disparities in New Zealand: A Literature Review Nateeh R. Cueva   Introduction Health is an integral part in the context of human existence. Each individual’s views regarding health and practices concerning healthcare vary depending on one’s historical, political and economic status, including the level of education, gender and personal experiences.[1] Hence, it is imperative to consider these aforementioned factors affecting health in the healthcare system. The principal objective of this paper is to review the specific historical, cultural, social, educational and economic backgrounds of the Maori people and each corresponding effects to healthcare approach. This paper also aims to investigate the imparity of the Maori and non-Maori health status. As several studies prove health disparities, this paper examines the actions taken to achieve equilibrium in healthcare service delivery among Maori and non-Maori people. Maori History and the Treaty of Waitangi New Zealand’s first east Polynesian settlers discovered the country during the 13th century, approximately 500 years before Europeans became aware of its existence.[2] The tribe is now known as Maori, meaning ‘original’, to characterize their distinction after the Europeans’ arrival. Due to lawlessness and the British government’s goal to protect trading interests, the Treaty of Waitangi was created and signed by several Maori chiefs and British Crown representatives. [3] The Treaty was translated into English and Maori versions containing three articles with substantial interpretation differences.[4] As explained by St. George (2013), the first article in the English version refers to sovereignty. It indicates transfer of power to the British Crown. However, Maori version conveys share of power. Maori used the term â€Å"kawanatanga†, which means setting up of British government without implicating transfer of authority. The second article chiefly safeguards property of rights, concerning â€Å"tino rangatiratanga† or chieftainship. Maori people are granted control and rights over their lands, woodlands, waters, fisheries and other properties in the English version. In contrast, Maori version denotes more extensive rights for Maori, including proprietary and reassurance of cultural and social items like language and villages. The third article warrants the Maori people equal rights as the British subjects. Regardless of the differences, the two versions of the Treaty are legitimate as they were both signed (St. George, 2013). Although protecting Maori health is part of the objectives of the Treaty, the population decline in the 1800’s proved past neglect on its principles. Basing on the data presented by Wishart (2012), Maori population went as low as 43,927 in 1886 while non-Maori migration constantly increased. The land wars between Maori and Pakeha (non-Maori) as well as the diseases introduced by the increasing migration had also caused devastating effects to Maori population (Durie, as cited in Kingi, 2007). After a major Maori protest, the Waitangi Tribunal was established in 1975 to investigate Crown breaches to the Treaty of Waitangi.[5] Its goal is to consider the principles of the Treaty upon making decisions rather than the mere conflicting interpretations of both English and Maori versions. This had led to compensation grants, return of lands and financial recompense to tribal authorities for economic development. Subsequently, the Maori population dramatically recovered to over half a million during the 20th century (St. George, 2013). St. George further elaborated that the Treaty has three key principles relating to Maori health: partnership, participation and protection. Partnership basically means working with Maori communities in developing strategic health care practices for the community. Participation is the act of involving the Maori people upon planning and during healthcare services delivery. Protection is ensuring equality on Maori and non-Maori health status while considering Maori cultural concepts, values, and practices. Culture and Impact on Health Culturally-based beliefs, values and attitude relating to health influence engagement to health-promoting activities and access to health services. As non-Maori population continuously surged, healthcare services became highly Pakeha-dominated.[6] This led Maori on becoming suspicious about health services rendered by hospitals because of cultural reasons. The Maori cultural health perspective is holistic. It comprises four cornerstones of health: wairua (spiritual), hinengaro (psychological), tinana (physical) and whà ¤nau (extended family).[7] Maori’s concepts of tapu (sacred, restricted) and noa (free from tapu or unrestricted), the basis of law and order during pre-European time, interrelate with today’s Maori health environment. In terms of daily activities, this entails that food (noa) should be placed separately from bodily functions like faeces (tapu). Practices and healthcare services that do not mirror these cultural concepts receive lesser support and often distress the Maori community. As Maori slowly embrace Pakeha-predominated health services, traditional Maori health practices largely remained (Lange, 2012). These health practices, though helpful in some cases, oftentimes risk patient safety and jeopardize medical treatment when opposed or delayed in consideration to cultural beliefs. Maori Socioeconomic Status and Health Socioeconomic status, basing on aspects such as income, education and occupation, is a fundamental element of health. Studies prove that favourable living condition is closely relevant to better health quality.[8] Health disparity can be brought about by material poverty, poor nutrition, mediocre housing standards and stress resulting from low social and economic status. Health services fees further hinder medical treatment access. Statistics New Zealand (as cited in Marie, Fergusson Boden, 2010) supports well documented studies proving that Maori are at greater socioeconomic disadvantage than any New Zealanders by ethnicity. This socioeconomic deprivation likely predisposes Maori to poor health conditions and limit healthcare access. Health Disparity and Inequality Regardless of the efforts to apply the Principles of the Treaty to health development, health inequality and disproportion among Maori and non-Maori is still evident. Studies prove that Maori are underprivileged in terms of health among any New Zealand ethnic groups, showing higher morbidity and mortality rates.[9] Blakely, Fawcett, Atkinson, Tobias and Cheung (as cited in St. George, 2013) stated that Maori infants have lower birth weight and die more frequently from sudden infant death syndrome (SIDS) than non-Maori. Brown (as cited in St. George, 2013) also added that Maori die eight to ten years earlier, on average, with avoidable death rates twice as much compared to non-Maori. New Zealand’s cancer death rate is greater than Australia, consisting of two thirds male Maori and one quarter Maori female deaths (Skegg and McCredie, as cited in St. George, 2013). Obesity in Maori community is also of greater proportion, contributing to higher rates of diabetes (Ministry of Heal th, as cited in St. George, 2013). These data show that Maori are more susceptible to illnesses and their lesser access to health services is detrimental. According to Durie (as cited in St. George, 2013), the suboptimal Maori health status pose negative effects on the community’s outlook of the healthcare system as a whole. This may lead to stereotyping healthcare system basing on their less suitable health situations and experiences. Studies further claimed Maori being treated differently in the healthcare setting. As per findings of the 2001—02 National Primary Medical Care Survey (as cited in St. George, 2013), doctors spent only 2 minutes out of 12 minute consultation time or 17% less time on caring for Maori than non-Maori patients. Racism also affects Maori health status (Harris, as cited in St. George, 2013), suggesting that the greater the number of racial discrimination experiences, Maori self perceived health status becomes lesser. Maori Health Development and Addressing Inequalities During the 20th century, eliminating inequalities became a considerable section of government health policy and statutory obligation of district health boards (Pollock, 2012). Social welfare policies and intersectoral activities promoting health equality such as retrofitting and housing insulation were implemented. The New Zealand Public Health and Disability Act 2000 absolves the Treaty of Waitangi and Maori health (Blakely Simmers, 2011). Health programmes and healthcare service delivery focus on Maori and low socioeconomic people. Constant monitoring on health inequalities and research conduction allowed better understanding of health disparities and progress tracking. The increasing awareness on health inequalities concerning Maori people paved way to more improved funding on health services addressing deprivation and ethnicity. As a result, immunization rates soared, smoking cessation rates increased and improved Type 2 diabetes and cardiovascular risk management.[10] The policies relevant to health equity strongly develop Maori health status and healthcare service access. Conclusion Health is indeed affected by several determining factors that can enhance or diminish quality of life. Historical, political, cultural, educational and socioeconomic backgrounds are crucial aspects to consider in delivering effective health services that support health equality. Looking into the health disparities affecting Maori people, it is unacceptable in the context of medical practice to provide partial health services basing on individual’s ethnicity, cultural beliefs, values and economic status. While it is a fact that traditional practices can hinder medical treatment and healthcare goal achievement, better ways and policies should be implemented to meet the greater Maori health needs. The Maori culture, being the first settlers in New Zealand, has become an indispensable component of the country’s society. For Maori to live longer, achieve healthier lives and contribute to the society at their utmost potential, the root causes of inequalities ought to be rightfully addressed. In the same manner, may the past mistakes and neglect be a grounding lesson to further strengthen the efforts to eliminate health disparities. May impartial health services prevail and be maintained for Maori, non-Maori and other ethnicity of different backgrounds alike. References Blakely, T., Simmers, D. (2011). Fact and action sheets on health inequalities. New Zealand Medical Association. Retrieved from http://www.nzma.org.nz/sites/all/files/Marmot_factsheets.pdf Capital and Coast District Health Board. (2009). Tikanga Mà ¤ori: A guide for healthcare workers. Retrieved from http://www.ccdhb.org.nz/news/Tikanga Maori.pdf Derby, M. (2012). Waitangi tribunal – te rÃ…Â pÃ…Â « whakamana. Te, Ara the Encyclopedia of New Zealand, 1-6. Retrieved from http://www.TeAra.govt.nz/en/waitangi-tribunal-te-ropu- whakamana/page-1 Kingi, T. R. (2007). The treaty of Waitangi: A framework for MÄ ori health development. New Zealand Journal of Occupational Therapy, 54(1), 4-10. Retrieved from http://www.nzaot.com/downloads/contribute/TheTreatyofWaitangiAFrameworkforMaoriHealth.pdf Lange, R. (2014). Te hauora MÄ ori i mua – history of MÄ ori health Pre-European health. Te, Ara the Encyclopedia of New Zealand, 1-6. Retrieved from http://www.TeAra.govt.nz/en/te-hauora-maori-i-mua-history-of-maori-health/page-1 Marie D., Fergusson, D.M., Boden, J.M. (2010). Does socio-economic inequality explain ethnic differences in nicotine dependence? Evidence from a New Zealand birth cohort. Australian New Zealand Journal of Psychiatry, (44), 378-383. Retrieved from http://www.otago.ac.nz/christchurch/otago014477.pdf Meredith, P., Higgins, R. (2012). KÄ wanatanga – MÄ ori engagement with the state: Defining kÄ wanatanga. Te Ara the Encyclopedia of New Zealand, 1-5. Retrieved from http://www.TeAra.govt.nz/en/kawanatanga-maori-engagement-with-the-state Health Promotion Forum of New Zealand. (2002). TUHA–NZ: A treaty understanding of Hauora in Aotearoa-New Zealand. Retrieved from http://www.hauora.co.nz/assets/files/Maori/Tuhanzpdf.pdf New Zealand History. (2012). Differences between the texts: Read the treaty. Retrieved from http://www.nzhistory.net.nz/politics/treaty/read-the-Treaty/differences-between-the-texts New Zealand History. (2012). Signing the treaty. Retrieved from http://www.nzhistory.net.nz/politics/treaty/making-the-treaty/signing-the-treaty Pollock, K. (2012). Health and society: Socio-economic status, ethnicity and health inequality. Te Ara the Encyclopedia of New Zealand, 1-5. Retrieved from http://www.TeAra.govt.nz/en/health-and-society St. George, I. (Ed.). (2013). Cole’s medical practice in New Zealand. New Zealand: Medical Council of New Zealand. Wilson, J. (2013). MÄ ori arrival and settlement. Te Ara the Encyclopedia of New Zealand, 1-7. Retrieved from http://www.teara.govt.nz/en/history/ Wishart, I. (2012). Waitangi researcher asked to lie by government agency. Investigate Daily. Retrieved from http://www.investigatemagazine.co.nz/Investigate/2717/waitangi- researcher-asked-to-lie-by-govt-agency/?doing_wp_cron=1401700328.4694170951843261718750 Glossary Hinengaro the mental health Kawanatanga governorship PÄ kehÄ  – non-Moari, usually of British ethnic origin Tinana the physical health Tino rangatiratanga absolute sovereignty Wairua the spiritual health Whà ¤nau extended family [1] Health Promotion Forum of New Zealand. (2002). TUHA–NZ: A treaty understanding of Hauora in Aotearoa-New Zealand. Retrieved from http://www.hauora.co.nz/assets/files/Maori/Tuhanzpdf.pdf [2] Wilson, J. (2013). MÄ ori arrival and settlement. Te Ara the Encyclopedia of New Zealand, 1-7. Retrieved from http://www.teara.govt.nz/en/history/ [3] New Zealand History. (2012). Signing the treaty. Retrieved from http://www.nzhistory.net.nz/politics/treaty/making-the-treaty/signing-the-treaty [4] New Zealand History. (2012). Differences between the texts: Read the treaty. Retrieved from http://www.nzhistory.net.nz/politics/treaty/read-the-Treaty/differences-between-the-texts [5] Derby, M. (2012). Waitangi tribunal – te rÃ…Â pÃ…Â « whakamana. Te, Ara the Encyclopedia of New Zealand, 1-6. Retrieved from http://www.TeAra.govt.nz/en/waitangi-tribunal-te-ropu-whakamana/page-1 [6] Lange, R. (2014). Te hauora MÄ ori i mua – history of MÄ ori health Pre-European health. Te, Ara the Encyclopedia of New Zealand, 1-6. Retrieved from http://www.TeAra.govt.nz/en/te-hauora-maori-i-mua-history-of-maori-health/page-1 [7] Capital and Coast District Health Board. (2009). Tikanga Mà ¤ori: A guide for healthcare workers. Retrieved from http://www.ccdhb.org.nz/news/Tikanga Maori.pdf [8] Pollock, K. (2012). Health and society: Socio-economic status, ethnicity and health inequality. Te Ara the Encyclopedia of New Zealand, 1-5. Retrieved from http://www.TeAra.govt.nz/en/health-and-society/page-2 [9] St. George, I. (Ed.). (2013). Cole’s medical practice in New Zealand. New Zealand: Medical Council of New Zealand. [10] Blakely, T., Simmers, D. (2011). Fact and action sheets on health inequalities. New Zealand Medical Association. Retrieved from http://www.nzma.org.nz/sites/all/files/Marmot_factsheets.pdf

Canadian Press Coverage in the Middle East :: Canada Media Middle East News Essays

Canadian Press Coverage in the Middle East In December 1985, the Canadian press reported the death by suicide of hundreds of field mice in the Middle East. In an apparently instinctive reaction to a problem of over-population, the mice willfully plunged to their doom off the cliffs of the Golan Heights. This bizarre story was the subject not only of straight news coverage in the Canadian press, but also of an editorial in the Globe and Mail on December 20. On November 1, 1985, the Globe and Mail also ran a photograph of a visiting Roman Catholic priest from Brazil, saying prayers on the banks of the Jordan River at the site where Christ is said to have been baptized. Standing alertly near the priest was an Israeli soldier with a rifle slung over his shoulder, his eyes carefully scanning Jordanian territory across the river. For the analyst of the media and media image-making, these rather unusual press items raise an interesting question about news selection and presentation by the editorial departments of the daily press. Had the mice toppled off Mount Kilimanjaro would this essentially scientific story about animal behavior have found its way so prominently into the Canadian press? Had the priest been peacefully saying mass on the Mountain would this religious item have been deemed worthy of coverage? Or was it the newspapers' sense of the irony of these events, of their news value as symbols depicting the pervasive conflict and violence we have come to associate with the Middle East that led to their selection for publication from the reams of teletype endlessly flowing into the editorial departments of the Canadian press? It would seem that even when the subject matter is scientific or religious--about mice or monsignors--the press is inclined to remind its readers of the inherently violent nature o f the Middle East, and a fundamentally negative image is developed or reinforced. It is, Canadians are told in effect, a region so bleak and hopeless that even its despairing mice are driven to take their lives. The purpose of this study is to examine in an empirical fashion Canadian daily press coverage of the Middle East to establish, inter alias, what type of image of the region and of its principal actors (Israel, the Palestinians and the Arab states) is, in fact, resented to the Canadian reader and what impact, if any, the character of that coverage has had on the shaping of Canadian foreign policy.

Only Parents Can Stop the Violence Essay -- Media Television TV Essays

Only Parents Can Stop the Violence In today’s society there is a debate going on about whether or not violence has an effect on young children and teenagers. On one hand there are people saying that violence on television has no effect on children. On the other hand it is very easy to prove that television violence has a direct effect on children. There are many studies that show how obvious the impact of television is on the way children act. Children and teens watch a lot of television from their young years until they graduate high school. One study shows that kids will watch 18,000 hours of television by the time they graduate high school(Kalin). This is 5,000 more hours than they spend at school. So the impact that television has is very great, considering how much time kids spend watching it. It is easy to see how kids are influenced by violent television shows because even at an early age they are mimicking violence. Carla Kalin observed her kindergartners acting out violence on each other in her first year of teaching. One kid from another class shot his younger brother in the stomach three times. The next year a first grader was suspended for bringing a knife to school and using it to threaten children on the playground(Kalin). After researching what was causing these youngsters to act so violently, Ms. Kalin came to the conclusion that television programs served as a springboard for violent and aggres sive behavior(Kalin). This is very understandable considering how many violent television shows are airing during the times that children watch TV. â€Å"Approximately ninety percent of the time, children watch programs which are not specifically designed for them at all†(Kalin). Ms. Kalin decided... ... and more intense, but it is up to the parent to monitor what their child is watching. I do agree that violent television shows promote violence in kids, but I also think that parents are responsible for their children’s actions. Parents can take advantage of things like the V-chip to control what their kids are watching. If parents would step up and simply take responsibility for their kids, then I believe that the violence that is happening today would decrease dramatically. Works Cited Children and TV Violence. 23, February 2000. Kalin, Carla. Television, Violence, and Children. 15, February 2000. Banta, Mary Ann. The V-Chip Story. 17, February 2000.

Marital Discord in ‘Madame Bovary’ by Gustave Flaubert and ‘Like Water

In Literature and Life, Love is a powerful force. Sans love; feelings, desires and relationships may seem empty. This force however, can also be destructive, even may end a marriage. Marital discord, arising in general, due to infatuation, lust or affection for a third person, may crop up primarily facilitated by adverse familial, economic or societal conditions that do frequently find their mention in the written word. Some of these concerns like family, marriage, sexuality, society and death, are notably illustrated by the authors, Gustave Flaubert in Madame Bovary and Laura Esquivel in Like Water for Chocolate. Bring Rosaura in. These works under study present the marriages of Emma-Charles Bovary in Madame Bovary and Rosaura-Pedro in Like Water for Chocolate that are shaken at the end of each plot. It seems that marital discord is an indirect corollary of the roughness that was forced upon both the female protagonists, Emma and Tita. The cruelty imposed on Tita, as quite evident, was by virtue of her relationship with Mama Elena; her being the youngest daughter who was thus traditionally disallowed marriage and obligated to serve her mother for as long as she (mother) lived. On the other hand, on Emma’s rough times were much subtle and, to an extent, self-carved. Ms. Roualt lived with her father and while in a convent school, she was initially devoted to â€Å"learning her catechism well†. However, as romantic novels came along with an old spinster working there, Emma began to fancy the â€Å"love affairs†¦tears and kisses, skiffs in the moonlight†¦Ã¢â‚¬ 1 With these books, Emma would occasionally drift into the â€Å"alluring phantasmagoria of genuine emotion†1. Then, as the readers may understand, Emma started fantasizing and drawing a veil of... ...laws of Emma ( perennial dissatisfaction, adultery, extravagance) and Rosaura (jealousy) that end up in their tragedy. Works Cited 1 Page 36, chapter 6, part I, Madame Bovary, written by Gustave Flaubert and translated into English by Lowell Bair, Bantam Classics 2 Chapter 6, Volume 1, Pride and Prejudice written by Jane Austen 3 Page 60, Chapter 9, Part I, Madame Bovary, written by Gustave Flaubert and translated into English by Lowell Bair, Bantam Classics 4 Page 33, chapter 5, part I, Madame Bovary, written by Gustave Flaubert and translated into English by Lowell Bair, Bantam Classics 5 Page 32, chapter 5, part I, Madame Bovary, written by Gustave Flaubert, translated into English by Lowell Bair, Bantam Classics 6 Page 86, Chapter 3, part II, Madame Bovary, written by Gustave Flaubert, translated into English by Lowell Bair, Bantam Classics

Night World : Spellbinder Chapter 3

one for, lost, a goner. Blaise had chosen him, and it was only a matter of how she was going to play him. A parade of names marched through Thea's mind. Randy Marik. Jake Batista. Kristoffer Milton. Troy Sullivan. Daniel Xiong. And now: Brie Ross. But Eric was talking, sounding animated. â€Å"Your cousin? Is she that other new girl? Thea?† â€Å"Yes. Now-â€Å" â€Å"Look, do you know where she is? I really want to talk to her.† The hazy look descended again, and Eric stared into the distance. â€Å"She's just†¦ I've never met anybody like her†¦.† Blaise let go of the notebook and stared. From her hiding place, Thea stared, too. It had never happened before. This guy didn't even seem to see Blaise. That was strange enough. But by the Blue Monkey-headed Goddess of Inquisitiveness, what Thea really wanted to know was why she herself felt so relieved by it. A bell rang. Blaise was still standing there flabbergasted. Eric stuffed the notebook in his backpack. â€Å"Could you just let her know I asked about her?† â€Å"She doesn't care if you asked about her!† Blaise snapped, voice no longer honeyed. â€Å"She said very explicitly that she never wanted to see you again. And I'd watch out if I were you. Because she has a temper.† The last word was uttered in rising tones. Eric looked slightly alarmed-and crestfallen. Thea saw his throat move as he swallowed. Then, without saying good-bye to Blaise, he turned and walked out the far side of the corridor. Well by the Red Crow-headed Thunderbolt Goddess. Blaise turned around and stalked up the corridor in Thea's direction. Thea didn't even try to hide. â€Å"So you saw all that. Well I hope you're happy,† Blaise said waspishly. Thea wasn't. She was confused. Strangely agitated-and scared, because the Cup of Death was still floating before her eyes. â€Å"I guess we should both just leave him alone/' she said. â€Å"Are you kidding? I'm going to have him,† Blaise said. â€Å"He's mine. Unless,† she added, eyes glittering, â€Å"you've already staked a claim.† Thea floundered, shocked. â€Å"I†¦ well no†¦Ã¢â‚¬  â€Å"Then he's mine. I like a challenge.† Blaise ran a hand through her hair, disordering the black waves. â€Å"Isn't it nice that Gran has so many love charms in the shop,† she mused. â€Å"Blaise†¦Ã¢â‚¬  Thea had a hard time collecting her thoughts. â€Å"Don't you remember what Gran said? If there's any more trouble†¦Ã¢â‚¬  â€Å"There isn't going to be any trouble for us,† Blaise said, her voice flat and positive. â€Å"Only for him.† Thea walked to her next class feeling oddly empty. Ignore it, she thought. There's nothing you can do. She didn't see many Night People along the way to class. A young kid, probably a freshman, who looked like a shapeshifter; a teacher who had the hunting light of the lamia-the born vampires-in his eyes. No made vampires, no werewolves. No other witches. Of course, she couldn't be certain. All the people of the Night World were masters of secrecy, of blending in, of passing unseen. They had to be. It was what allowed them to survive in a world where there were so many more humans†¦ and where humans loved to kill anything different. But when she was sitting in the world literature classroom, Thea noticed a girl in the next row. The girl was small-boned and pretty, with thick eyelashes and hair as black and soft as soot. She had a heart-shaped face-and dimples. But what caught Thea's eye was the girl's hand, which was playing with a pin on the girl's blue-and-white-striped vest. A pin in the shape of a black flower. A dahlia. Thea immediately turned to a blank page in her notebook. While the teacher read a passage from the story Rashomon, Thea began drawing a black dahlia, tracing it over and over until it was large enough for the girl to see distinctly. When she raised her head, she saw the girl was looking at her. The girl's lashes swept down as she looked at the drawing, then up again. She smiled at Thea and nodded slightly. Thea smiled and nodded back. After class, without any need to discuss it, Thea followed the girl to the front of the school. The girl looked around to make sure no one was in earshot, then turned to Thea with something like resigned wistfulness. â€Å"Circle Midnight?† she said. Thea shook her head. â€Å"Circle Twilight. Aren't you?† The girl's face lit up with shy delight. Her eyes were dark and velvety. â€Å"Yes!† she said and rushed on, â€Å"But there are only two more of us-two seniors, I mean-and they're both Circle Midnight, and I was afraid to hope!† She thrust out her hand, dimpling. â€Å"I'm Dani Abforth.† Thea felt her heart lighten. The girl's laughter was infectious. â€Å"Thea Harman. Unity.† It was the age-old greeting of the witches, the symbol of their harmony, their oneness. â€Å"Unity,† Dani murmured. Then her eyes widened. â€Å"Harman? You're a Hearth-Woman? A daughter of Hellewise? Really?† Thea laughed. â€Å"We're all daughters of Hellewise.† â€Å"Yes, but-you know what I mean. You're a direct descendent. I'm honored.† â€Å"Well, I'm honored, too. Abforth is ‘All-bringing-forth,' isn't it? That's a pretty impressive line itself.† Dani was still looking awed, so Thea said quickly, â€Å"My cousin's here, too-Blaise Harman. We're both new-but you must be, too. I've never seen you around Vegas before.† â€Å"We moved in last month, just in time to start school,† Dani said. Her brow puckered. â€Å"But it you're new, what do you mean you haven't seen me around?† Thea sighed. â€Å"Well, it's kind of complicated†¦.† A bell rang. Both she and Dani looked at the school building in frustration, then at each other. â€Å"Meet me here at lunch?† Dani asked. Thea nodded, asked which way her French class was, and then flew off toward the other side of the building. She sat through her next two classes trying to actually listen to the teachers. She didn't know what else to do. She had to concentrate to keep the image of gray-flecked green eyes out of her mind. At lunch, she found Dani sitting on the steps out front. Thea settled beside her and opened a bottle of Evian water and a chocolate yogurt she'd bought at the snack bar. â€Å"You were going to explain how you know Vegas,† Dani said. She spoke softly because there were kids everywhere in the front courtyard, sprawled in the sun with paper bags. Thea eyed a row of sago palms and felt herself sighing again. â€Å"Blaise and I-our mothers died when we were born. They were twin sisters. And then both our dads died. So we grew up sort of moving around from relative to relative. We usually spend the summers with Grandma Harman, and we live with somebody else during the school year. But these last couple of years†¦ well, we've been in five high schools since we were sophomores.† â€Å"Five?† â€Å"Five. I think five. Isis knows, it could be six.† â€Å"But why?† â€Å"We keep getting expelled,† Thea said succinctly. â€Å"But-â€Å" â€Å"It's Blaise's fault,† Thea said. She was mad at Blaise. â€Å"She does-things-to boys. Human boys. And somehow it always ends up getting us kicked out of school. Both of us, because I'm always too stupid to tell them she's the one responsible.† â€Å"Not stupid, I bet. Loyal,† Dani said warmly, and put her hand on Thea's. Thea squeezed it, taking some comfort in the sympathy. â€Å"Anyway, this year we were in New Hampshire living with our Uncle Galen-and Blaise did it again. To the captain of the football team. His name was Randy Marik†¦.† When Thea stopped, Dani said, â€Å"What happened to him?† â€Å"He burned the school down for her.† Dani made a sound halfway between a snort and a giggle. Then she straightened out her face quickly. â€Å"Sorry, not funny. For her?† Thea leaned against the wrought-iron stair railing. â€Å"That's what Blaise likes,† she said bleakly. â€Å"Having power over guys, messing with their minds. Getting them to do things they would never ordinarily do. To prove their love, you know. But the thing is, she's never satisfied until they're completely destroyed†¦.† She shook her head. â€Å"You should have seen Randy at the end. He'd lost his mind. I don't think he'll ever get it back.† Dani wasn't smiling anymore. â€Å"Power like that†¦ she sounds like Aphrodite,† she said softly. And that's right, Thea thought. Aphrodite, the Greek goddess of love who could turn passion into a weapon that brought the whole world to its knees. â€Å"Remind me sometime to tell you what she's done to the other guys she's played. In a way. Randy was lucky†¦.† Thea took a breath. â€Å"So, anyway, we got shipped back here to Grandma Harman because there weren't any other relatives willing to take us. They figured if Gran couldn't straighten us up, nobody could.† â€Å"But that must be wonderful,† Dani said. â€Å"I mean, living with the Crone. Part of the reason my mom moved us here was that she wanted to study with your grandmother.† Thea nodded. â€Å"Yeah, people come from all over to take her classes, or to buy her amulets and things. She's not always easy to live with, though,† Thea added wryly. â€Å"She goes through a couple of apprentices a year.† â€Å"So is she going to straighten Blaise up?† â€Å"I don't think anybody can. What Blaise does-it's just her nature, the way it's a cat's nature to play with mice. And if we get in trouble again, Gran says she's going to send us to our aunt Ursula at the Connecticut enclave.† â€Å"The Convent?† â€Å"Yeah.† â€Å"Then you'd better stay out of trouble.† â€Å"I know. Dani, what's this school like? I mean, is it the kind of place where Blaise can keep out of trouble?† â€Å"Well†¦Ã¢â‚¬  Dani looked dismayed. â€Å"Well-I told you before, there's only two other witches in our class, and they're both Circle Midnight. Maybe you know them†¦ Vivienne Morrigan and Selene Lucna?† Thea's heart sank. Vivienne and Selene-she'd seen them going to summer Circles, wearing the darkest robes of any of the Circle Midnight girls. The two of them plus Blaise would make†¦ well, a lethal combination. â€Å"Maybe if you explain to them how important it is, they might help you keep Blaise under control,† Dani said. â€Å"You want to go talk to them now? They'll be on the patio by the cafeteria-I usually eat with them there.† â€Å"Um†¦Ã¢â‚¬  Thea hesitated. Talking to those two- well, she doubted it would help. But on the other hand, she didn't have a better idea. â€Å"Why not?† On the way to the cafeteria, she saw something that made her stop dead. Taped to the stucco wall was a giant piece of butcher paper, painted orange and black at the margins. In the center was a grotesque figure: an old woman with a black dress, disheveled white hair, and a wart-covered, haglike face. She was straddling a broom and wearing a pointy hat. Lettering under the picture said coming OCTOBER 31 †¦ THE ULTIMATE HALLOWEEN PARTY. Hands on hips, Thea said, â€Å"When will they learn that witches never wore pointy hats?† Dani snorted, her heart-shaped face surprisingly dangerous. â€Å"You know, maybe your cousin has the right idea after all.† Thea looked at her, startled. â€Å"Well, they are an inferior species. You have to admit that. And maybe it sounds prejudiced, but then they're so prejudiced themselves.† She leaned closer to Thea. â€Å"You know, they even have prejudices against skin.† She held out her arm. Thea looked at the flawless skin, which was a deep, clear brown. â€Å"They'd think we were two different races,† Dani said, pressing her arm against Thea's tan one. â€Å"And that maybe one was better than the other one.† Thea couldn't deny it. All she could say, feebly, was, â€Å"Well, two wrongs don't make a right†¦.† â€Å"But three lefts do!† Dani burst out, finishing the old witch carol. Then she dissolved into laughter and led Thea to the patio. â€Å"Let's see, they should be over there†¦. Oh. Oops.† Oops, Thea thought. Vivienne and Selene were at a secluded table on the far side. Blaise was with them. â€Å"I should have known she'd find them first thing,† Thea muttered. From the way the three girls had their heads together, it looked as if trouble were brewing already. As Thea and Dani approached the table, Blaise looked up. â€Å"Where've you been?† she said, waving a finger reproachfully. â€Å"I've been waiting to introduce you.† Everybody said hello. Then Thea sat down and studied the other two girls. Vivienne had fox-red hair and looked tall even sitting down. Her face was animated; she seemed sparkling with energy. Selene was a platinum blond with sleepy blue eyes. She was smaller, and moved with languid grace. Now, how do I politely say, â€Å"Please help me suppress my cousin?† Thea wondered. She could already tell it wouldn't be much use. Viv and Selene seemed to be under Blaise's spell already-they turned to her every other second as if checking for approval. Even Dani was watching Blaise with something like fascinated awe. Blaise had that effect on people. â€Å"So we were just talking about guys,† Selene said, twirling a straw languorously in her bottle of Snapple iced tea. Thea's heart plummeted. â€Å"Toyboys,† Vivienne clarified in a lovely melodious voice. Thea felt the beginnings of a bad headache. No wonder Blaise is smirking, she thought. These girls are just like her. She'd seen it at other schools: young witches who seemed to flirt with breaking Night World law by flaunting inhuman power over boys. â€Å"Aren't there any of our kind of guys here?† Thea asked, as a last hope. Vivienne rolled her eyes. â€Å"One sophomore. Alaric Breedlove, Circle Twilight. That's it. This place is a desert-no pun intended.† Thea wasn't really surprised. There were always more witch girls than guys-and nobody seemed to know why. More girls got born, more survived to grow up. And in some places the ratio was particularly unbalanced. â€Å"So we just have to make do,† Selene drawled. â€Å"But that can be fun sometimes. Homecoming dance is this Saturday, and I've got my boy all picked out.† â€Å"So,† Blaise said, â€Å"have I.† She glanced at Thea significantly. And there it was. Thea felt her throat close. â€Å"Eric Ross,† Blaise said, savoring the words. â€Å"And Viv and Sel have told me allll about him.† â€Å"Eric?† Dani said. â€Å"He's the basketball star, isn't he?† â€Å"And the baseball star,† Vivienne said in her beautiful voice. â€Å"And the tennis star. And he's smart-he takes honors courses and works at the animal hospital, too. He's studying to get into U.C. Davis. To be a vet, you know.† So that's why he cared about the snake, Thea thought. And why he's got flatworms in his notebook. â€Å"And he's so cute,† Selene murmured. â€Å"He's so shy with girls-he can hardly talk around them. None of us have gotten anywhere with him.† â€Å"That's because you used the wrong methods,† Blaise said, and her eyes were very smoky. Thea's insides seemed hollow and there was a circlet of pain around her head. She did the only thing she could think of. â€Å"Blaise,† she said. She looked her cousin directly in the face, making an open appeal. â€Å"Blaise, listen. I hardly ever ask anything of you, right? But now I'm asking something. I want you to leave Eric alone. Can you do that-for me? For the sake of Unity?† Blaise blinked slowly. She took a long drink of iced tea. â€Å"Why, Thea, you're getting all worked up.† â€Å"Ism not.† â€Å"I didn't know you cared.† â€Å"I don't. I mean-of course I don't care about him. But I'm worried about you, about all of us. I think†¦Ã¢â‚¬  Thea hadn't meant to say this, but she found the words spilling out anyway. â€Å"I think he might have some suspicions about us. This morning he told me that I seemed so different from other girls†¦.† She managed to stop herself before she mentioned that he'd guessed she had healed him. That would be incredibly dangerous, especially since she didn't know who Vivienne or Selene might blab to. Blaise's pupils were large. â€Å"You mean-you think he's a psychic?† â€Å"No, no.† She knew he wasn't a psychic. She'd been inside his mind, and he wasn't from any lost witch family. He didn't have any powers. He was as much a human as that snake had been a snake. â€Å"Well, then,† Blaise said. She chuckled, a rich, rippling sound. â€Å"He just thinks you're different-and that's hardly something to worry about. We want them to think we're different.† She didn't understand. And Thea couldn't explain. Not without getting herself into very hot water. â€Å"So, if you don't mind, we'll just consider my claim staked,† Blaise said courteously. â€Å"Now, let's see, what to do with the boys at the dance. First, I think we need to spill their blood.† â€Å"Spill what?† Dani said, sitting up. â€Å"Just a little blood,† Blaise told her absently. â€Å"It's going to be absolutely vital for some of the spells we'll want to do later.† â€Å"Well, good luck,† Dani said. â€Å"Humans don't like blood-they're going to run like bunnies from you after that.† Blaise regarded her with a half-smile. â€Å"I don't think so,† she said. â€Å"You don't understand this business yet. If it's done right, they don't run. They're scared; they're shocked; and they just keep coming back for more.† Dani looked shocked herself-and still fascinated. â€Å"But why do you want to hurt them?† â€Å"We're just doing what comes naturally,† Blaise purred. I don't care Thea thought, it's none of my business. She heard herself say, â€Å"No.† She was staring at a pile of squashed napkins in her hand. Out of the corner of her eye she could see Blaise's exasperated expression. The others might not know what Thea was saying no to, but Blaise always understood her cousin. â€Å"I asked you before if you wanted him,† Blaise said. â€Å"And you said you didn't. So now you're changing your mind? You're going to play him?† Thea stared at her wad of napkins. What could she say? I can't because I'm scared? I can't because something happened between him and me this morning and I don't know what it was? I can't because if I keep seeing him I have this feeling I might break the law, and I don't mean the one about never telling humans that we exist; I mean the other one, the one about never falling in love†¦. Don't be ridiculous. That sort of thing is out of the question, she told herself. All you want is to keep him from ending up like Randy Marik. And you can do that without getting involved. â€Å"I'm saying I want him,† she said out loud. â€Å"You're going to play him?† â€Å"I'm going to play him.† â€Å"Well.† Instead of snarling, Blaise laughed. â€Å"Well, congratulations. My little cousin is growing up at last.† â€Å"Oh, please.† Thea gave her a look. She and Blaise had been born on two different days-just barely. Blaise had been born one minute before midnight, and Thea one minute after. It was another reason they were so connected-but Thea hated it when Blaise acted older. Blaise just smiled, her gray eyes glinting. â€Å"And, look-there's lover boy right now,† she said, feigning elaborate surprise. Thea followed her nod and saw a figure with sandy hair and long legs at the other side of the patio. â€Å"What luck,† Blaise said. â€Å"Why don't you just walk over and ask him to the dance?†

David Berman Essay

David Berman reviewed the macroeconomic military issues on caudex turns as he on the watch for his repaproportionn appearance on CNBCs shout out Box as a cockcrow co- emcee. A leading expert on consumer related stresss, Berman and his colleagues including portfolio manager Steve Kernkraut, a flavor sell executive and psychoanalyst, were frequent contri scarceors to different TV shows. On April 4th 2005, episode magazine ran a layer on Berman c wholly in alled King of the Retail Jungle, and on December 13th, 2004, Barrons ran a story called Smart Shopper where Bermans quaternity line of work picks as identified, appreciated 30% on reasonable over the following quarter. collide with air he was a mo canary memoryho social occasion manager as swell up as founder and pre lieunt of Berman cracking (which managed copyrighted majuscule) and founder of and general partner in New York- ground Durban expectant, L.P. (which managed outside and proprietary seat of gove rn custodyt). Glancing at his n atomic number 53s on macro tr halts in retail stocktaking turns, Berman wondered if he should talk intimately his impressions on the show.Berman held a bachelors degree in finance and masters equivalency in method of ac calculateing from the University of Cape Town in payable south Africa. He had also passed the South Afri depose chartered accountant and the United States certified public accountant examinations. Berman obtained his CPA qualification in calcium go an auditor for Arthur Andersen and Comp either where he examined the financial statements and ope rations of a occur of retail clients. He had been the auditor of Bijan, the remarkable mens upscale fit out last on Rodeo Drive and fifth Avenue. Prior to starting his own funds Berman worked as a portfolio manager and analyst earlier at two argue Street steadfastlys. He evolved his investing flair under the tutelage of Michael Steinhardt of Steinhardt Partners, which he joi n piddlingly by and byward graduating with distinction from Harvard work initiate in 1991. From 1994 to 1997 Berman worked in consumer-related stocks at an otherwise(prenominal)(prenominal) man- surfaced hedge fund. He subsequently launched Berman Capital in 1997 and Durban Capital in 2001. professor Ananth Raman of Harvard occupation School, Professor Vishal Gaur of the Stern School of blood line at New York University, and Harvard caper School Doctoral Candidate Saravanan Kesavan ready this case. real details have been disguised. HBS cases are true solely as the basis for line discussion. Cases are non int ex margeinate to behave as endorsements, rootages of chief(a) coil data, or illustrations of in force(p) or ineffective oversight.Copyright 2005 president and Fellows of Harvard College. To order copies or request liberty to reproduce hooeys, call 1-800-545-7685, write Harvard personal credit line School Publishing, Boston, MA 02163, or go to http//www.hbs p.harvard.edu. No part of this publication may be reproduced, stored in a recovery system, utilise in a spreadsheet, or transmitted in any variety or by any wayelectronic, mechanical, photocopying, recording, or otherwisewithout the permission of Harvard Business School.Copying or posting is an misdemeanour of copyright. Permissionshbsp.harvard.edu or 617-783-7860. 605-081David BermanBerman believed that his training as an accountant together with his MBA and practices he create over the categorys to refine accounting estimates enabled him to ceremonial occasion aspects of retail accounts that would be missed by most investors. The alliance in the midst of instrument and winnings and therefore share toll, for pattern, while translucent to a retail merchant, was seldom accepted by analysts or investors. This race, Berman observed, is ASTOUNDINGLY powerful, save(prenominal) if amazingly few understand why. Most destine its just a escape of armoury gamble. Its not. Its primarily a proceed of how the operating bounds can be manipulated by anxiety in the short stipulation by performing around with inventories. For example, said Berman, if a retailers inventories are growing a good deal bustling than rough-cut r no shed light onhe slightue, then pure(a) circumferences would be racyer than they ordinarily should be, as the retailer has not interpreted the mark-downs that a consecutive disciplined retailer should take.Interestingly, Berman beamed, there is no law in GAAP that limits the number of sidereal days enrolment to any norm, and as such(prenominal)(prenominal)(prenominal), the practice of change magnitude inventories beyond any norm goes unfettered. Berman continued managements sign-off on the inventories as macrocosm somewhat valued, and the auditors pretty very n proterozoic(prenominal) rely on their word. Berman believed that from an investors perspective, its a game of musical chairs you presumet want to be t he dying person standing. In other words, you mountt want to be an investor when swinish stark(a) revenue slow and when mark-downs of the bloated scrutinize finally pick up to be taken to move the goods.The affinity of inventories to gross revenue was also an important i that Berman foc employ on. In a distributor point of rising inventories on a lusty foot basis, Berman says it is quite obvious that aforementioned(prenominal) store gross sales should exclude as the offering to the customer is that much great. Simply put, the to a greater extent offerings you put in a store, ceteris paribus, the larger sales should be. It is at this time, Berman argued, that the stock determine rises, as investors lieu absorber ratings on retailers with toweringer sales, disdain that this blueer valuation is achieved primarily due to the high inventories.An excellent example of the scroll to sales relationship was Home memory boardIn 2001 and 2002 Home funds bare-assed CEO, Bob Nardelli1, catchmed to struggle in managing the transition from a cash- mix GE-type philosophy to a retailer Home Depot-type philosophy. In his DeeBee Report2 date June 10th 2003, Berman stated Bob Nardelli in condition(p) the power of history the hard way. In focusing on cash flow improvement, he dramatically swallowed inventories and yes, change magnitude cash proportionalitys lonesome(prenominal) to see a huge decline in uniform store sales, and in its stock impairment the stock went from around $40 to $22. And so, under immense pres certain, Nardelli reversed pass and focused intensely on change magnitude inventories. Since Q2 of last social tell, inventories had been building until they were up 25% social class over year. And yes, analogous store sales did improve, as did the stock price.Recognizing this as potentially a short-fix, Berman continued instanter the cynical would view this profit in sales with skepticism, noting that it wasnt of high w hole tone as it was due, in part, to the massive account build. It is, however, pleasing to note that Home Depot simply got inventories back to normal, in that it right off has turns similar to its competitors. The stock, following the akin store sales and sugar amplifys, which in essence followed the inventories addition, rose from $22 at the start of 2003 to $36 by the end of 2003. When asked about this fix, Berman responded it will be to a greater extent challenging for Nardelli to increase corresponding store sales and security deposits going away because his increasing inventories and therefore kindred store sales is arguably a one-time hit and is essentially what caused the fix. Berman concluded by1 Nardelli had worked at General voltaic (GE) out front taking over as CEO of the Home Depot.2 A peakic report where Berman discusses his thoughts on retail, focusing on inventories.Given his insights as articulated, Berman believed his fund could value firms more accur ately by fall apart valuation of origin. This was pivotal to his investing strategy. You see, Berman elaborated, Wall Street basically ignores blood line. Its actually quite amazing to me This gives us one of our edges. Comparing recently collect retailer numbers pool that examined total sales in the U.S. economy to total history, for nigh 300 retailers, Berman remarked The total sales to total livestock numbers is also a crucial relationship over time, and it gives us a macro edge, if thats potential to believe. Indeed, at the end of Q2, 2003 I k crude there would be serious parentage build in the economy going forward, as overall sales had grown at a faster rate than inventories. Indeed, in Q3, 2003 we saw a rapid and upset(prenominal) increase in GDP from 2.3% to 3.5% contain in part to size up rebuilding. This increase continued through Q1, 2004 when GDP offshoot reached 5%.Berman loved to discuss investment opportunities he had spotted by looking carefully at firm inscriptionOne of the assailableest examples was Saucony (Nasdaq SCNYA), a shoe caller-out base practiced Boston, MA. Berman identified this participation as a strong misdirect when he noticed in 2003 that even though sales were flattish, inventories had declined about 20% year over year. To Berman, this bode well for future everlasting(a) circumferences. He started purchasing the stock at $14 in late 2003 due primarily to these disposition inventories, despite that the stock was illiquid thus presenting greater risk, and despite that management was remarkably overmodest about sharing training. A year by and by, the stock had doubled. During this time period, sales rose, as did inventories, and of course, the rank margin expanded significantly, as evaluate.Earnings per share rose from $0.85 in 2002 to $1.29 in 2004. Bermans trade, which came shortly after management asked him to ring the Nasdaq bell with them, was once more based on a functionof his strain a nalysis. This time it was the opposite scenario inventories were now growing at the equivalent maltreat as sales, so the rationalise of sales to inventories had deteriorated and Berman was worried. To make matters worse, calls to management were not being cave ined. Sure enough, in March 2005, forrader Berman had gotten out of this illiquid position, Saucony announced it would miss earnings estimates and the stock cratered 20%.Yet another clear example was Bombay (NYSE BBA). In November 2003, Bombay Company, a fashionable home accessories, wall dcor, and furniture retailer, announced that sales were up 19% with inventories up 50% year over year. While the retailer spank earnings estimates, the order spoke of archaean November sales weakness, and the stock declined 20% that day to $10. Despite the decline, and noticing that inventories were up way withal much, Berman felt the music had stopped. Going into Q4 it was clear they would have to miss numbers over again unless t he consumer saved them, which would be a shocker, he said. Just over two weeks later they lowered earnings again and the stock crated another 20% to $8. Remarkably, just four weeks later, after Christmas, management lowered earnings yet again, and the stock declined yet another 20%. It was so sweet exclaimed Berman, to see the unpolluted schedule / earnings relationship at work so quickly. In just one and a fractional months, the stock declined 50% primarily because of stock-take mismanagement along with weaker sales.As Berman prepared to leave for the studio, Christina Zinn, a young prentice he had just hired from Harvard Business School, walked in and presented him with a stack of papers containing the valuation of fast one B. River ( conjuring trick B. River Clothiers, Inc. NASDAQ JONR). JONR is undervalued, Zinn remarked, and I cerebrate we should invest in this stock. Sales were up 24% in 2004 over the introductory year, and gross margins, having risen for four straight years, seem to have peaked at 60% (one of the highest gross margins in all of US retail).2005, the caller-outs price/earnings ratio is less than that of its primary competitor, handss Wearhouse, which is at 17.5 clock estimated earnings. This is particularly strange given that nates B. River has been growing faster than manpowers Wearhouse during the last few years. document merchandiseivity in the Retail SectorInventory swage, the ratio of woo of goods sold to average inventory level, was commonly used to whole step the slaying of inventory managers, compare inventory productivity across retailers, and valuate work improvements over time.3 But wide variations in the one-year inventory turnover of U.S. retailers year to year not only across, but also at heart, firms made it difficult to assess inventory productivity in practice, as evidenced by the following example and questions.Between 1987 and 2000 annual inventory turnover at Best procure bloodlines, Inc. (Be st Buy), a consumer electronics retailer, ranged from 2.85 to 8.53. Annual inventory turnover at three peer retailers during the same period exhibited similar variation at set City Stores, Inc. from 3.97 to 5.60 at Radio populate Corporation from 1.45 to 3.05 and at CompUSA, Inc. from 6.20 to 8.65. Given such variation how could inventory turnover be used to assess these retailers inventory productivity? Could these variations be agree with better or worse movement? Could it be fair concluded from this example that Best Buy managed its inventory better than Radio populate?Inventory turnover could be correlated with other performance billhooks. Strong correlations, as between inventory turnover and gross margin, might have implications for the assessment of retailers inventory turnover performance. (Figure 1 plots the four consumer electronics retailers annual inventory turnover against their gross margins (the ratio of gross profit net of markdowns to net sales) for the perio d 1987-2000.)Relationships among Management MeasuresRelationships among inventory turns, gross margins, and bully vehemence were central to filiation suitable benchmarks for assessing corporate performance. (Figure 2 presents a simplified view of an income statement and balance sheet. Table 1 presents mathematical definitions for inventory turnover, gross margin, capital enthusiasm, return on assets, sales festering, and other management measures based on Figure 2 .)Whereas return on assets, sales produce, return on equity, and financial leverage tended not to diversify systematically from one retail fraction to another, variation in the fixingss of return on assets was observed between and within assiduity segments. (Table 2 lists retail segments4 and examples of firms.) Table 3 presents gross margins, inventory turns, GMROI5, and asset turns for supermarkets, drugstores, thingamabob stores, apparel retailers, jewelry retailers, and toy stores.) Retailers with stable, pr edictable demand and long product lifecycles such as grocery, drug, and convenience stores tended to have better efficiency ratios (asset turns and inventory turns) than other retailers, retailers of short lifecycle products such as apparel, shoes, electronics, jewelry, andAn alternative measure of inventory productivity, days of inventory, could be substituted for inventory turnover for the present analysis.Classification of segments is based on S&Ps Compustat database.GMROI is be as gross margin return on inventory investment. variety in gross margins, inventory turns, and SG&A expenses within and between segments roe could be decomposed into gross margin and inventory turns, and save into the relationship between capital intensity and inventory turns (see below).Anticipating just about similar roe measures for different retailers, all else remaining equal, a change in any of the component metrics on the right side of the equation would be expected to settlement in a compensa ting change in some other component metric. For example, for ROE among retailers to be homogeneous a retailer with higher gross margins would need to find out a compensating change in some other component, such as inventory turns. crying(a) margin and inventory turns primitive margin and inventory turns were expected to be negatively correlated, that is, an increase in gross margin was expected to be attended by a decrease in inventory turnover. A retailer that carried a unit of product longer before selling it (i.e., a retailer with drawn-out inventory turns) would expect to earn easily more on its inventory investment than a retailer that carried the inventory period for a shorter period. For example, Radio Shack, which turned its inventory less frequently than twice a year,was expected to realize higher gross margins on each sale than retailers such as CompUSA, which turned its inventory more than eight times per year. Retailers such as Radio Shack were said to be following t he profit path (i.e., earning high profit with each sale), retailers such as CompUSA the turnover path (i.e., earning quickly after making an inventory investment shrimpy profits with each sale).Retailers within the same segment were expected to achieve equivalent inventory productivity. Inventory productivity could be estimated as the product of a firms gross margins and inventory turns, termed gross margin return on inventory investment or GMROI (pronounced JIMROY). If GMROI remained stable within a segment an inverse relationship between gross margin and inventory turns would be observed. (Figure 3 depicts the expected relationship.)A correlation between gross margin and inventory turns, although expected, did not, however, imply a causative relationship between the two variables. That is, a firm that increase its gross margin by better managing its inventory turns would not necessarily decline commensurately. The correlation between gross margin and inventory turns could inst ead reflect mutual dependence on the characteristics of a retailers business.Capital intensity and inventory turnsInvestments in warehouses, information technology, and inventory andlogistics management systems involved capital investment, which, being accounted for as fixed assets, was metrical by an increase in capital intensity. Firms that made such capital investments ofttimes enjoyed higher inventory turns. Hence, inventory turns could be positively correlated with capital intensity.That an increase in inventory turnover and simultaneous decrease in gross margin was not necessarily indicatory of change inventory management capability suggested limits to the use of inventory turnover in performance analysis. If, however, two firms had similar inventory turnover and gross margin values but different capital intensities the firm with the lower capital intensity might perchance have better inventory management capability. It was thus desirable to incorporate changes in gross m argin and capital intensity into evaluations of inventory productivity.Zinns Analysis of conjuring trick B. RiverBerman fidgeted in his chair. He enjoyed opportunities to evangelize to and initiate television audiences, but found the cargo area in the studio tedious. Until called to hold aside on various aspects of managerial performance and investment strategy he would, he decided, wade through the report Zinn had prepared for him.Company BackgroundOn November 8, 2004 tail B. River Clothiers, Inc., a leading U.S. retailer of mens tailored and casual habiliment and accessories, opened its 250th store. The retailer employed, in entree to the physical store format, two other bloodlines compiles, and the Internet. Production of hind end B. Rivers designs according to its specifications was takeed to third caller vendors and suppliers. keister B. Rivers product suite, intended to dress a male line of achievement professional from head to toe, was identified with high qualit y and value. Its upscale, classic product offerings include tuxedos, blazers, shirts, ties, vests,pants, and sports wear. Excepting branded shoes from other vendors, all products were marketed under the tail end B. River brand.Trends in body of work clothing were an important determinant of magic B. River sales growth. Thus, the early 1990s trend towards acceptability of informal clothing in the workplace was cause for concern to a retailer that emphasized mens formal suits. But in the early 2000s the pendulum seemed to swing back, with increasing numbers of employees preferring to dress more formally for the workplace.The material in this section is from John B. River Clothiers, Incs 2004 10-K StatementRetail stores were John B. Rivers primary sales channel. Eighty portion of store space was dedicated to selling activities, the remaining 20% allocated to stockroom and accommodate and other support activities. Tailoring was a differentiating service highly valued by the retaile rs clientele. John B. River catered to high-end customers and so located its retail stores in areas with appropriate demographics. Its seven outlet stores provided a channel for liquidating excess merchandise.John B. Rivers catalogue and Internet channels accounted for rough 11% of net sales in monetary 2003 and 12% of net sales in pecuniary 2002. around eight meg catalogs were distributed over these two years. Catalog sales were supported by a toll-free number that provided access to sales associates.The primary competitors of John B. River were Mens Wearhouse Inc. (Ticker MW) and abide Brothers (privately held). Apart from competing with thesespecialty retailers, John B. River competed with too large department stores such as Macys and Filenes, which enjoyed substantially greater financial and marketing resources.Supply ChainJohn B. Rivers merchandise buying and planning provide used sophisticated information systems to convey product designs and specifications to suppli ers and third party contract manu concomitanturers and manage the production process worldwide. Approximately 24% of product purchases in financial 2003 were sourced from U.S. suppliers. Mexico accounted for 15% and none of the other countries from which products were sourced accounted for more than 10% of purchases. An agent was employed to source products from countries located in or near Asia.All inventory was received at a centralized distribution affection (CDC), from which it was redistributed to warehouses or directly to stores. Store inventory was tracked using point-of-sale information and stock was replenished as necessary. John B. River expected to spend between $3 and $4 million in fiscal 2004 to increase the capacity of its CDC to accommodate calciferol stores nationwide.Growth Strategy and RisksJohn B. River had create a five-pronged strategy for achieving growth. First, it plotted to only enhance product quality by elevating standards for design and manufacture. S econd, it planned to expand catalog and internet operations. Third, it intended to introduce overbold products. Fourth, it was moving towards eliminating middlemen from the sourcing of products Fifth, it was committed to providing consistently high service levels by maintaining high inventory levels.Anticipating that growth relied on opening juvenile stores, John B. River planned to expand to viosterol stores. Approximately 60 stores were opened in fiscal 2004, increasing store count to 273, and about 75 to 100 stores were planned from2005-08. Upfront costs associated with opening a new store included approximately $225,000 for leasehold improvements, fixtures, point-of-sale equipment, and so forth and an inventory investment of approximately $350,000, with higher inventory levels during peak periods.John B. Rivers growth strategy was sensitive to consumer spending. John B. River relied on its emphasis on classic styles to withstand a niche in mens suits, a strategy that rendere d it less vulnerable to changes in fashions but dependant on continued demand for classic styles.Zinns Analysis of John B. Rivers Financial StatementsInventoryJohn B. River used the first-in-first out method to value inventory. During price increases FIFO valuation generated higher net income than LIFO valuation. John B. Rivers inventory had been growing rapidly over the non new four years. Zinn was surprised by the inventory growth, especially that inventory had grown faster than sales. Although inventory grew by 54% in 2003, corresponding sales growth was only 23%. In 2004 however, sales grew 24% while inventory grew by only 4%. Inventory at the end of 2004 however continued to be high at 303 days. Further the days payables change magnitude from 54 days in 1998 to 82 days in 2004. Payables as a percentage of inventory however had declined from roughly 33% in 1998 to roughly 27% in 2004. But Zinn was not sure these concerns had much impact on her valuation of the company.Financi al ratiosCurrent ratio and quick ratio had been hovering around 2 and 0.2, respectively.10,11 The large difference between these two ratios reflected the fact that most of John B. Rivers latest assets were inventory. Obsolescence costs would consequently be fairly high and could place the retailer in financial distress.The other financial ratios were indicative of a healthy company. ROE had increase from 15% to 27% since fiscal 2000. This increase had been largely fueled by an increasing profit margin (0.7% to 5.5% over the same period).John B. River had enjoyed rapid growth in sales over the last few years. Annual Sales growth had increase from 9% in 1998 to 24% in 2004, fueled by sales growth in exist stores (approximately 8% per year) as well as the opening of new stores and increase sales from the retailers catalog and internet channels. John B. River enjoyed a healthy increase in gross margins from 51% to 60% over the same period. Tables 4 and 5 provide reveal operational me trics for John B. River and Mens Wearhouse.Prospective AnalysisZinn had taken the Business Analysis and Valuation (BAV) class at HBS and discovered the BAV tool.12 She had used this tool to create a simpler cast (used in the present analysis) to capture break aspects of valuation. Table 6 provides some chance upon historical operational metrics for John B. River that Zinn used for her prospective analysis.Current ratio, defined as the ratio of accredited assets to current liabilities, was an indicator of a companys ability to meet short-term debt obligations the higher the ratio the more liquid the company. dissipated ratio (or acid-test ratio), defined as the ratio of (cash + accounts receivable) to current liabilities, measured a companys liquidity.The BAV tool was an Excel-based model developed by Harvard Business School power for valuing companies.Key assumptions made by Zinn in performing the prospective analysis of John B. River included the following.1) Time sentiment Z inn chose a five year time horizon from 2005 to 2009 based on expected sales growth (derived from management projections). Beyond 2009 Zinn put on the company to have reached a soaked state defined by entrepot values.2) Sales growth Zinn imitation that managements projections for new stores were reasonable and that the new stores would be equivalent in size and productivity with the retailers existing stores. Using growth assumptions about stores and same store sales, Zinn computed sales growth for fiscal years 2005-2008 to be 18% (based on 15% square footage growth and 3% same store sale growth), and 10% for 2009. Sales after 2010 in Zinns analysis were expected to grow at the 4% industry standard for retail apparel stores13.3) Gross margin Gross margin had been steadily increasing Zinn expected it to hover around 60% for the next five years and then anticipate gross margin to reach its terminal value to reflect increased competition.4) separate assumptions about the income s tatement Zinn assumed that SG&A to sales and other operating expenses to sales would continue at the 2004 levels for the near term (till 2008).5) Assumptions about the balance sheet Zinn assumed that current assets to sales, current liabilities to sales, and long term assets to sales would continue at their 2004 levels, that is, the company would maintain a similar capital structure and remain as fat with its long term assets as in 2003. Zinn obtained terminal values from industry norms for Mens and boys clothing stores14. The market risk premium was assumed to be 5%, risk free rate 4.3%, fringy tax rate 42%, and cost of debt 4.5%. Based on these assumptions, the value of a JONR share was estimated to be $43.58. Given the current (April 11th, 2005) closing price of $34.37 (see Figure 4 for historical stock prices of JONR), Zinn rated the stock a strong buy.Youre On the channel in Five MinutesBerman knew he had to return to thinking about the bigger questions that would be posed b y the host of the TV show. Yet he could not take his mind off of Zinns analysis. Berman smiled, knowing that his apprentices results were diametrically opposed to his own intuition. He recollected his conversation with the CEO and CFO of John B. River during one of the quarterly earnings calls when he was laborious to learn about the retailer. When questioned about the steep increase in inventory, the CEO had mentioned that John B. River was planning to grow inventory in certain basic items like uninfected shirts, khaki pants etc. as well as increase product variety to enhance service levels to its customers. Berman was not sure about this strategy of John B. River and wondered if the companys gross margins were temporarily inflated based on increased inventories over the years. On the other hand, inventory management had improved of late. As describe on the 4th April 2005, Q4, 2004 sales had increased 24% while inventories were up only 4% year over year.