Case 5 consumer trends

In today’s universe of quickly changing purchaser patterns, it is just shrewd that organizations attempt to stay aware of these progressions in order to stay in business. This is to a great extent on the grounds that the customer is getting increasingly worried about the items they expend e. g. impacts of high calories. The examination of the accompanying contextual investigation insists this adjustment in customer patterns. 1. Purchaser drifts The changing shopper tastes is one of the main thrusts behind item development. This is encapsulated by the ongoing shopper patterns like low ‘carb’ and going ‘green’.Trends like these have constrained organizations to think of items/forms that fulfill purchaser needs. Like the website furor generally 1990s, the low carb and condition mindfulness are to a great extent fuelled by client mindfulness. These patterns are normally power organizations to adjust their items to the evolving inclinations. Furthermore, i s properly so on the grounds that organizations that resist these patterns may endure drop in incomes. A model is the American carmakers that belatedly embraced cross breed innovation when their Japanese partners were profiting by the technology.Such patterns lead to the market flooding with comparative organizations has seen with the website bubble in spite of the fact that the low carb and natural protection patterns may persevere as a result of the familiarity with impacts of high sugars and ecological contamination. The majority of the web organizations crumbled (Cable World 2001). 2. Danger to business people The passage of industry goliaths like Dell and Gateway organizations into the PC reusing business with present issues to Stampp Corbin as in he may need utilized PCs to resale. Enactments may likewise be passed that doesn't permit the resale and removal of utilized computers.Such laws may necessitate that PCs of a specific age can't be exchanged. Laws administering electro nic waste from PCs can generously influence the business. The reusing of the PCs by makers can prompt less expensive creation of new PCs with the end goal that business people like Stampp Corbin may do not have the market for the pre-owned PCs. The delicate data in the pre-owned PCs may likewise represent a genuine danger of claims on the off chance that it incidentally falls in an inappropriate hands. The product used to erase this data may not be viable over the long haul with the advancement of new innovations that could hold information permanently.All the above variables can influence Corbin’s business harshly. 3. Upper hand Retro Box Company is one of the pioneers of the electronic reusing business and hence the presence in the market for quite a while prompts the organization growing great business relations with the providers and clients likewise in this way guaranteeing consistent flexibly and accessibility of the market. Another preferred position is simply the capa city of Retro Box to shield itself from claims that may result from spilled data. The organization has done this by creating customized programming that can eradicate such information completely.4. Assurance from changing shopper inclinations and laws One of the significant variables that organizations can do to maintain a strategic distance from loss of business because of changing customer inclination is through development and foreseeing future needs of buyers. Along these lines the new item improvement will be guided by future customer needs and desires (PRNewswire 2008). The organization additionally should know about the impacts that their items have on the earth and henceforth concoct imaginative methods of managing there impacts in this way staying away from the need of guidelines through laws which can be expensive in the long run.Conclusion It is along these lines vital that organizations grasp shopper inclines through envisioning their necessities and in this manner think ing of creative items that stay aware of evolving inclinations. References: Cable World (2001). MSO challenges website pattern Against the Grain. Recovered on 30/4/2008 from http://findarticles. com/p/articles/mi_m0DIZ/is_/ai_80191576 PRNewswire (2008). Food advertisers tested to meet customer tastes in 2008. Recovered on 30/4/2008 from http://www. reuters. com/article/pressRelease/idUS187846+29-Jan-2008+PRN20080129

Research Paper on Boutique Hotels - Managerial Economics Essay

Research Paper on Boutique Hotels - Managerial Economics - Essay Example The inn business has endure fluctuating fortunes in the most recent decade or thereabouts and has crossed into the 21st century a monstrous and essential industry, a long ways from its starting points as a trial social structure, into an industry that has changed the idea of movement into one that is agreeable, unsurprising, and to numerous voyagers pleasurable (Wikipedia). Inns are a significant of segment of the cordiality and housing industry. It very well may be portrayed as a foundation that gives paid housing, as a rule on a momentary premise. Lodgings regularly give some of extra visitor administrations, for example, a café, a pool or childcare. A few lodgings have gathering administrations and meeting rooms and urge gatherings to hold shows and gatherings at their location.[ibid] The first lodging proportionate called hotels have existed since antiquated occasions (e.g., along the Roman street framework during the Roman Empire) to serve vendors and different explorers. Medieval European religious communities worked hotels to ensure shelter for voyagers in hazardous districts. The spread of movement by stagecoach in the eighteenth century invigorated the improvement of hotels, as did the Industrial Revolution. The cutting edge inn was to a great extent the aftereffect of the railways; when going for delight turned out to be generally famous, enormous inns were regularly worked close to railroad stations. An enhancement of inn types described the early lodgings. The first lodgings were extravagance foundations in quite a while. Be that as it may, so as to suit changing conditions and needs, variations appeared: the railroad lodgings which were worked along railroad track lines to oblige train travelers and teams for spots to eat and rest before the development of dozing mentors; resort inns worked far away from swarmed urban regions for sightseers; business inns which were all the more just outfitted and more affordable, taking into account sales reps and business voyagers; private inns for families yet unfit to manage

Skidmore College Admission Advice TKG

Skidmore College Admission Advice We visited Skidmore recently and what we learned is so crazy that we need to pass it along to you.First off, some background information. Over the past four years, Skidmore’s acceptance rate has dropped from an estimated 36.5% to an estimated 27%. In this time, Skidmore has also gone test-optional, meaning that you don’t need to submit standardized test scores, and they’ve nixed their supplement, making applying as easy as possible. Ever since, the number of applications they receive has skyrocketed. This spring (2018), Skidmore announced that they had experienced a 7% jump in applications in just one year and a 30% jump over the past five years.That’s crazy.What’s even crazier is that nothing has changed about the school. The jump in applications isn’t because they overhauled their offerings, it’s all about numbers. When applying is easier and cheaper, more people will do it. More people applying drives down acceptance rates, and it becomes a feedback loop. More applic ations = lower acceptance rate. Lower acceptance rate = more applications.But that’s just the background. I recently visited Skidmore in-person and was able to speak with an admissions representative. While I asked about a number of things, my focus was the supplement. As college consultants, we believe that supplements are an important tool for students. They help a student show as many angles of themselves as possible, but they also help students narrow down their list.  No kid should be applying to 25 schools. Having to do a supplement is one way of weeding out the schools that you’re really just applying to because “why not?”When asked about the lack of supplement, he clarified that while there wasn’t a “technical” supplement, that didn’t mean that people don’t submit supplemental materials. To this, I said “Huh?” This was also paired with an exaggerated eyebrow raise. He clarified that while there is not a supplement, prospective students email the admissi ons office “all of the time” with unsolicited supplemental documents.Sending unsolicited documents isn’t unheard of, but, traditionally, it is the bane of many an admissions office, and they warn applicants that it’s an excellent way to end up on some sort of blacklist. It turns out that this allegedly is not the case at Skidmore.  Yes, you read that right. According to them, when Skidmore receives supplemental materials they add them into the applicant’s file and take them into account, even when they aren’t about urgent or sudden extenuating circumstances (the only two situations in which we generally advise such emails). The most common supplement that they receive, according to the admissions representative, answers the question “Why do you want to go to Skidmore?”This is mindblowing and, while we don’t condone spamming admissions officers, it does show that ‘best practice’ isn’t universal. You can email admissions officers,  but whatever you send must be high-quality, add something useful that was missing in your application, and be thoughtfully written and professionally presented. In short, don’t waste their time.As far as the test-optional factor, he didn’t have a satisfying answer for how they manage to ignore the lack of score. “We just do,” he said. The verdict is, if your scores don’t represent you, don’t send them.  If they do, please send them as it helps towards an easy yes.One more tidbit we gleaned from him was what he looks for in a college essay. Echoing our favorite word, he emphasized the importance of story. An essay, he said, needs to show depth, be enjoyable to read, and it needs to have a story arc. Avoid cheesy, grabby first sentences. Basically, do what we’ve been telling you this whole time.We are continually visiting colleges so that we can provide our clients (and you!) with the best information possible. Here’s our piece on how to get into Pomona, straight from an Admissions Officer’s mo uth!If you’re looking for deeper insights and a curated college process, we’d love to help you out.

Analysis Of Thomas Paines Common Sense - 909 Words

After reading section three of Thomas Paine’s Common Sense, there are some counterpoints that can be presented against the idea of declaring independence from Britain and revolution. Many of the colonists are unhappy with how the British government was treating them and they had valid reasons to be unhappy, but the declaring independence from Britain would not be beneficial to the colonies and its people. In section three of Common Sense, Paine says â€Å"I challenge the warmest of advocate for reconciliation to show a single advantage that this continent can reap by being connected with Great Britain.† And â€Å"not a single advantage is derived† (Paine644). His confident claims of no advantages being present is not only ignorant, but just wildly†¦show more content†¦Paine mentions in his writings that â€Å"any submission to, or dependence on Great-Britain, tends directly to involve this continent in European wars and quarrels.† Paine is overlooking the fact that without the protection of Great Britain, the American colonies would be more vulnerable to other European powers and attacks from local Indian tribes. This dependency on Great Britain that Paine goes on about is not a matter of choice, it is a matter for colonial survival. Without Great Britain the colonies would cease to exist for a variety of reasons. The trade that the colonies conduct under Great Britain, the same trade that Paine says â€Å"whenever a war breaks out between England and any foreign power, the trade of America goes to ruin,† is trade that is protected by British ships. Without those ships, the colonial ships would be vulnerable to foreign attacks. In Plain Truth, Chalmers states that â€Å"The protection of our trade, while connected with Britain, will not cost a fiftieth part of what it must cost were we ourselves to raise a naval force sufficient for the purpose† (Chalmers7). The loyalists know that if the colonies were to follow through with separation from Great Britain, that the colonies not only would not be protected from foreign powers, but they would not be able to handle the cost it would take to raise up a navy, let alone a military. Yet, Thomas Paine is calling for the people of the colonies to declare independence from GreatShow MoreRelatedAnalysis Of Thomas Paines Common Sense856 Words   |  4 PagesDuring the time period that Thomas Paine wrote â€Å"Common Sense†, the country was debating whether or n ot they should separate from their ruling country, Great Britain. Throughout this piece, Paine uses several persuasive strategies including metaphor and pathos, in order to prove to his audience that they should separate from Britain. Paine uses both of these literary elements to prove that the country will, in fact, be successful if they separate, making it a successful propaganda tool. In his writingRead MoreThe Rhetorical Analysis Of Thomas Paines Common Sense828 Words   |  4 Pagesactivist Thomas Paine during the beginnings of the American Revolution wrote a pamphlet , Common Sense , to convince the American people and the continental congress to completely break away from England and its monarchy. Paine writes in a passionate tone to explain the differences between society and government, how they both form, and why. Paine aims to convince his audience to cut ties with the motherland through his use of rhetorical appeals, figurative language, and schemes. Thomas Paines passionateRead MoreThomas Paine s Common Sense1512 Words   |  7 PagesUnequivocally one of the most historically and culturally-significant pieces of literature, Thomas Paine’s Common Sense has been meticulously analyzed for its effectiveness in eliciting the reaction that Paine himself intended in 1776. At the forefront of Paine’s pamphlet is â€Å"Thoughts on the Present State of American Affairs,† notable for its first sentence: â€Å"In the following pages I offer nothing more than simple, facts, plain arguments, and commonsense† (7). Within, Paine â€Å"elaborates† on threeRead MorePolitical Philosophy and Paine Essay example1568 Words   |  7 PagesJesus Chaveste HIST 1301 Dr. Olivares September 7, 2013 Thomas Paine Questions 1. Why do you think Thomas Paine writes Common Sense anonymously? How does he think his work will be remembered? Thomas Paine wrote Common Sense anonymously because the ideas he used in writing the book were contradicting the government at that time. If the government knew that he wrote it then they will take action against him to punish him. He probably thought that his work would remain as something memorableRead MoreAnalysis Of Common Sense By Thomas Paine826 Words   |  4 PagesCommon Sense by Thomas Paine Analysis Initial Reaction The first sentence of the introduction, â€Å"a long habit of not thinking a thing wrong, gives it a superficial appearance of being right,† (Paine, 1776) is instantly captivating to me by the Paine’s acknowledgement that by not standing up to wrong and injustices when you see or experience it is the same as giving the injustice your seal of approval for the wrongs being done. The very fact that Pain is admittingly not fan of government but goes onRead MoreThe 17th Century Puritan Influence on the Writings of Thomas Paine1578 Words   |  6 Pagesï » ¿Common Knowledge: 17th Century Puritan Influence in Common Sense There can be little doubt as to the fact that Thomas Paine was one of the most incisive minds of the Enlightenment, an intellectual movement that began in Europe and quickly spread to the surrounding continents including the United States of America, where Paine immigrated to. The embracing of concepts such as Deism and other ideas that favored mans prowess and knowledge over the traditional influence of a divine power during theRead MorePrimary Source Analysis Common Sense Essays796 Words   |  4 Pages Primary Source Analysis Thomas Paine Common Sense Context: In result of The Seven Years’ War Britain controlled American trade and territory. In order to pay for the expenses of the war several taxation acts and military presence were implemented such as the Sugar Act, Stamp Act, Currency Act, Quartering Act and the presence of British troops at the colonies. Consequently, Americans who thought these actions violated their political and constitutional liberties opposed these policies withRead MoreUse And Manipulation Of The English Language1394 Words   |  6 Pageson a lonely island of poverty in the midst of a vast ocean of material prosperity. One hundred years later, the Negro is still languishing in the corners of American society and finds himself an exile in his own land. (426-427) Through careful analysis of his work, he incorporates complex sentences and immense vocabulary, grabbing the attention of his audience. In addition to his use of proper English, Martin Luther King Jr. consolidates his stance towards specific issues with the use of figurativeRead MoreCritical Analysis Of John Winthrops Model Of Christian Charity1274 Words   |  6 Pagesboastfulness, the middle depicts Franklin applying humility to his conversations and discovering how it changed him, and the end described the payoff of being humble. COLLECTION 4: THOMAS PAINE’S â€Å"COMMON SENSE† â€Å"Common Sense† captures Thomas Paine’s analysis based off of â€Å"simple facts, plain arguments, and common sense† on America’s potential future under and out of British rule. Overall, Paine states that the disadvantages outweigh the advantages of reconciliation with Great Britain. He refutes anRead MoreRhetorical Analysis Of The Declaration Of Independence.1343 Words   |  6 PagesRhetorical Analysis of the Declaration of Independence The Declaration of Independence is arguably the most important historical work of the pre-modern era. Because of this document, America was recognized for its brash, albeit just demands for independence from Britain. Aside from the obvious historical significance and precedence of the document, its composition was constructed in such a way that conveyed the determination of a new nation to be one in its own. Historical context and rhetorical

Creative Writing A Short Story - 777 Words

Clemmie licked the spoon and her eyes lit up. Oh, yes, yummy! Its rice pudding. Who would like a cookie? They all nodded and when Clemmie took one from the tray, they were warm, soft, and had a gooey centre. ‘Thank you, Mrs Tiffin,’ Mosaic said as he walked out the door. He licked the last of the crumbs from his fingers. When they were out in the passage, Boffin whispered in Clemmie’s ear, ‘I’m sorry I was rude earlier. I wasn’t well but Doctor Pax made me better.’ ‘That’s okay. Doctor Pax sewed up my head.’ She pointed up and he stopped to admire her stitches. Boffin said in awe, ‘Cor! I bet that hurt.’ They caught up with Kipp just in time to hear him ask, What’s that door? It was a wooden door with a Private sign in brass. Kipp†¦show more content†¦Ahem! Doctor Pax laughed low in his throat. Can you pass me my coat?’ Harmonie ran out the back door and Mosaic followed at a slower pace. Clemmie looked at Doctor Pax. He bent down to do the buttons on her coat then stopped when she asked, ‘Do you think they will fall in love?’ He sighed, then said, ‘Yes, I very much think they will.’ I dont want to see you hurt. Doctor Pax blinked his eyes. Me, hurt? Look, dont you worry about me. Off you go now and find Harmonie. Clemmie did as she was told and went outside. Her nose tingled with cold so she snuggled into her thick wool coat. It felt toasty and warm. The first person she caught up with was Gilt. ‘Have you settled in yet’? ‘I’m not sure. You see, I don’t feel dead.’ Clemmie admitted. Then she asked a little nervously, ‘How did you†¦?’ ‘How did I die? It was twenty years ago. I returned home from college one night. A man attacked me and left me for dead. He stole money from my purse so he could buy drugs, but all I had on me were four shinies. The shock made my hair turn white. Oh, but it suits you. Clemmie stared at the short-haired, tawny-eyed teacher. You look like a pixie.’ They caught up with Harmonie and Gentine. ‘Did I hear you mention pixies?’ asked Gentine. The four of them huddled close as they turned into the chilly wind. ‘Gentine is good at stories,’ smiled Gilt. ‘Would you like to hear one?’ Clemmie was at a loss for words and she nodded her head. Her day was gettingShow MoreRelatedCreative Writing : A Short Story1020 Words   |  5 PagesThe girls sat seperated in two stark, cold rooms. Each of the girls was sat at a table with a clear plastic cup of water sitting at arm’s length from them, both cups untouched. How could they drink when their best friend was no where to be seen? They had been having an innocent night of fun at Mercedes’ house three weeks ago, the first of many planned for the spring break, watching movies on Netflix and eating a pizza they ordered. The night was full of rambling about how classes were, drama floatingRead MoreShort Story : Creative Writing1550 Words   |  7 PagesIn the woods when the sun was just starting to set, there was a van driving on a long-abandoned road, behind the wheel of said van was a tired looking girl who seemed to be about 19. She took a sip of the long cold coffee, and turned to the turquoise haired girl sitting next to her. Hey uhhhh Cas, Cassie? Where are we? Noting the headphones, she stopped the car and turned around to inquire of the two boys in the back, Kenny, Timmy, do either of you have an idea where we are? It seems like weveRead MoreCreative Writing : A Short Story1281 Words   |  6 PagesSMACK! I was on my back, peering up at Josh as he laid on top me. â€Å"Gotc....† He begins to say but stopped. The look of victory slowly vanished from his face at the realization of how little space was between us. I could feel his heart hammering in his chest or maybe it was mine. Because, Josh was now searching my eyes as if he was looking for an answer to a question. His lips were only inches from mine and I could feel the heat coming off of them. Everything inside of me screamed to move awayRead MoreShort Story : Creative Writing865 Words   |  4 Pages Brrring! Brrring! Brrring! Brrring! â€Å"What is someone doing calling at 2am† whispers Dave groggily as he wipes his eyes and p icks up the phone. Yawning, somehow he manages to make something comprehendible come out of his mouth, â€Å"Hello? This is Dave speaking.† â€Å"Dave! This is Joe†¦ your old roommate from college. How are you doing?† â€Å"I am doing fine.† says Dave thinking and thinking about who Joe is when suddenly he remembers. At that moment he groans but manages to put out a polite response,Read MoreCreative Writing : A Short Story1037 Words   |  5 PagesThere she goes again. Mother can’t ever mind her own business, Seriously will it kill her to just leave her thoughts to herself. Little Mike came up tugging at her sleeve, his soft little fingers grasping at the cloth, a pull then another. â€Å"Yes sweetheart.† Mike looked at her, his finger pointed forwards, just at the edge of my vision. â€Å"It’s our turn now mommy.† She looked up; Mike quickly ran forward. â€Å"Woah slow down buddy, you can’t walk away by yourself.† Mike came to a sudden stop;he turned toRead MoreCreative Writing : A Short Story1102 Words   |  5 PagesWhen their parents entered their room, Charlie watched as Maggie walked to the window and kept her back to them. They could al l tell she was upset about something. Looking at Elliot, she pushed herself up further in the bed, as Callum grabbed Ian and took a seat on the chair next to her. Ben clasped his hands in front of him as he took a deep breath. â€Å"Ive been asked to stay here in order to help Rachel on her work supplying the Republic with power. I plan on asking Miles to let all of you andRead MoreCreative Writing : A Short Story1148 Words   |  5 Pagesbench nearby. And that’s what she was doing now. She sighed and stood up to go home. The next day she went to school and her best friend Sarina asked, â€Å"What’s wrong?† She then told her the whole story as she didn’t know what happened yesterday because she was absent. Hearing the story she said, â€Å" It’s a good thing that I upgraded my remote few days ago. You should go to the remote shop today after school.† Then they both went to class. When Maya entered her first class she saw Tasha andRead MoreCreative Writing : A Short Story1583 Words   |  7 Pagesforbid, if you don’t find it within two seconds, then youre most definitely an incompetent driver. Almost needless to say, Jason didn’t follow in the outlier’s footsteps, and he aced the questionnaire. Though he did take note that his examiner was creative with her questions. She was probably was deeply saddened that there wasn’t a convoluted touch screen to inquire about, Jason thought to himself. Finally all the formalities were complete, consequently, he took a second to get himself mentally, andRead MoreCreative Writing : A Short Story1440 Words   |  6 PagesPayday arrived for both me and Patsy, giving us the opportunity to attend the luxurious cinema and a wider variety of movies. As we stand before the array of movie posters, deciding between an action or comedy, somehow, how conversation shifts over to John. â€Å"He was so excited about the other night,† says Patsy. I abandon the posters and give her a questioning look. â€Å"About what?† â€Å"Well, first of all spending the evening with you, and then because you hugged him the way you did.† She taps her fingerRead MoreCreative Writing : A Short Story1615 Words   |  7 Pagestown to barter, we’ll ask around.† Shocked that her husband knows about Miles tattoo on her arm, Rachel clings to him in the silence, her mind racing at the possible implications. XXX Rachel sits stunned at the table, listening to Ben relay the story that he’s heard over and over in the village nearest to the house they’ve decided to ride out the winter in. â€Å"Soul Marks? How is that possible? These are just replicas of tattoos,† she replies with a disbelieving shake of her head. Ben shrugged

Global Marketing - 2537 Words

Critically analyse and evaluate the global macro environmental variables that are likely to have the most significant impact on your company. Introduction Fairmont Hotels and Resorts (Fairmont) is operating and competing in the hospitality industry, which has been affected vastly by the impact of global financial crisis, terrorist attacks, globalisation of the hospitality and tourism industry, the uncertainty surrounding the sovereign dept of some countries in EU, development of emerging markets, the rapid dissemination of global lifestyles and other economic and political uncertainties in the past few years. Fairmont is also affected by technological innovation as well as other broad macro environmental trends. This essay will†¦show more content†¦Thus they face more complex and changing environments where they operate and compete than other industries. In order to survive and prosper, the essential is to take account of, and adapt to, fast changing environmental conditions. To see and take advantage of marketing opportunities while at the same time anticipating any threats to their business. By indentifying environmental trends soon enough, management should be able, at least in part, to anticipate where such trends are leading and what future conditions are likely to result from such changes. (Lancaster et al. 2002, Palmer 2008). Explain how changes in the socio-cultural environment affect marketing decisions The UK population will rebalance by 2015 – families will be the most prevalent group, and the retired will have increased in number fastest. One-person households are set to increase fastest into 2015, following the trend witnessed into 2010. Emerging markets where social exposure and status are important along with the rising income and relatively wealthy middle class. Mainly affect young people who have an above average need for social acceptance, and international travellers, who are exposed to multicultural values. Fairmont target market age group younger than used to be .... Embracing social media is a key wayShow MoreRelatedGlobal Marketing5709 Words   |  23 Pagesï » ¿ Global Marketing Plan Yve Franks MKT/562 Executive Summary Gambit Sports Outreach Program is designed to reach the children and the residents of Haiti. Gambits purpose is to develop a nonprofit sports soccer facility that focuses on educating the whole person through education, nutrition and sports. Children are in important part of our future and Gambit wants to be able to help Haiti andRead MoreGlobal Marketing4353 Words   |  18 PagesModule Handbook International Marketing Table of Contents 1. General 1 2. Overview of Module and Module Descriptor 1 3. Assessment Criteria and Marking Guidelines 3 3.1 Assessment Timetable 4 4. Schedule of Work / Topics 5 5. Communication 6 6. Support for Your Learning 7 6.1 Specific Support Materials for Module 8 7. Developing Good Academic Practice 10 8. Student Charter 12 9. Complaints and Appeals 12 10. Module Feedback from Previous Students 13 General General guidance andRead MoreGlobal Marketing Of Starbucks : Marketing1571 Words   |  7 PagesGlobal Marketing of Starbucks The Starbucks brand was founded in 1971 in Seattle, when an English teacher Jerry Baldwin, a History teacher Zev Siegl, and a writer Gordon Bowker decided to open their own coffee shop. Now, Starbucks is the most successful coffee company in the world that serves coffee in 65 countries in more than 23000 stores. Among professional young adults, Starbucks is the brand of coffee shop that makes coffee-drinking experience unique because of its high-quality service. In theRead MoreGlobal Marketing Management1172 Words   |  5 PagesGlobal marketing management first involves the same elements as any type of marketing management and then must take into account the different requirements of the global marketplace, the different opportunities, and the pitfalls that must be avoided in this developing arena. Deciding what works and what does not and seeing to it that the company follows what works is the job of the marketing manager. While the purpose of marketing is the same in the global marketplace as in the domestic marketRead MoreGlobal Strategy : Global Marketing927 Words   |  4 PagesGlobal strategy: Global strategy is considered as a detailed plan on how an organization or a firm can be successful marketing its products or services at global level to enhance business growth, and increase profit margin (Lynch, 2014). Organizations or firms will have many reasons why its imperial for the businesses to penetrate or enter global market, some of these reasons will include to increase profit margin, increase sales, expand the scope of the business at a global scale, and increase marketRead MoreThe Principles Of Global Marketing1632 Words   |  7 PagesThe principles of global marketing Introduction Global marketing, which is a theory about the worldwide merchandising strategy, establishes the basement of marketing. As globalization is combined with diverse cultures from the whole world, costumers have different demands which have to achieve by businesses. In addition, the strategy of global marketing is necessary for companies to develop new markets. This assignment will firstly explain what global marketing is. After that, it will confer strategyRead MoreGlobal Marketing Strategy2178 Words   |  9 Pagesthose which need to be customized. Japanese companies such as Sony and Matsushita have been quite successful in marketing standardized versions of their consumer electronics products. These companies had limited resources during their early days of globalization and identified features which were universally popular among customers across the world. Global economies of scale helped them to price their products competitively. At the same time, these companies laid great emphasis onRead MoreGlobal Marketing And For A Company Essay1999 Words   |  8 PagesAbstract To understand global marketing and for a company to be success on an international level it is important to look into various aspects of marketing. A company must do extensive research into the foreign country they are looking into entering to determine if their company and/or product(s) will be successful. A business must go through their current marketing mix and decide if it should make adjustments to their product, the price, the distribution method, and the promotional strategy toRead MoreMarketing in the Global Economy1844 Words   |  8 PagesMarketing in the Global Economy Marlene Garay AIU Online Abstract In today’s world of constant change and technological advancements, it is imperative that marketers stay up to date and ready to tackle and challenges. Companies are battling neck to neck in order to make sure the products they offer are available and in the consumers mind. Not only do they have to be concerned about the local target audience. Now the reach is worldwide and the target audience can be a eclectic mix of racesRead MoreGlobal Marketing Strategies1846 Words   |  8 PagesTwo opposite viewpoints for developing global marketing strategy are commonly expounded. According to one school of thought, marketing is an inherently local problem. Due to cultural and other differences among countries, marketing programs should be tailor-made for each country. The opposing view treats marketing as know-how that can be transferred from country to country. It has been argued that the worldwide marketplace has become so homogenized that multinational corporations can market st andardized

Balfour Beatty Case Study on Corporate Finance And Valuation

Questions: (a) As an investor, provide valuation and analysis of your assigned company using the shareholder value analysis (SVA) methodFirst of all, this part of the report requires you to critically evaluate the appropriateness of SVA model to value a company. Further, you need to perform the valuation of the company in numerical terms using SVA model and present the findings in a professional manner. As an investor, you are required to explain and justify the variables used in the valuation model. You also need to provide a sensitivity analysis to identify the critical variables influencing the valuation of the company. You should also compare the actual value of the company with the value estimated by SVA model and explain of any difference or similarity.(b) Identify and evaluate one issue that your company is facing with reference to the appropriate finance theories.This part of the report requires you to identify one specific issue that the company is currently facing or has faced in the last 5 years. For example, an issue in raising new finance may have implications to agency theory, the expected yield curve of interest rates, future projects pipeline, sources of finance, management influence and corporate reputation, risk and its management, etc. As an investor, you need to determine the context for your analysis. Another issue could be the impact of mergers and acquisitions on companys strategic position. This may be done by reading around the relevant theory and linking these to the issue concerned. An analysis which does not have appropriate in-depth theoretical input will not achieve high marks. Answers: Introduction Executive Summary This assignment is about the shareholder value analysis of Balfour Beatty, which is an infrastructure development company, which has its operations in UK, US, Middle East and South East Asia. The assignment is bifurcated in two parts. The first part is about the appropriateness of the shareholders value analysis method to value Balfour Beatty. Moreover, the first part requires the valuation of the company in numerical terms and explanation of the variables used in valuing the company. The sensitivity analysis is also to be conducted for the purpose of identifying the most critical variables of the company. Lastly, the comparison is to be made between the actual value of the company and the value derived from shareholders value analysis method. The second part of the assignment requires us to identify and evaluate any one critical issue that the company is facing now or any issue faced by the company in last five years about the appropriate finance theories. The issue could be any among the example given or any other new issue. Balfour Beatty is an infrastructure company that finances, builds, develops and maintains the infrastructure that is a basic need of the society. Its in operations with more than 100 years of experience. The key market sectors of the company are as follows. Commercial buildings Social Buildings Power, energy and water Transport facilities Infrastructure Above given is the basic information about Balfour Beatty. a. Shareholders value analysis method to value the business of the company. The valuation is made based on the returns the company gives to its shareholders. The SVA method like other theories also assumes that the aim of the management is to maximize the wealth of the shareholders of the company. The concept was developed by Alfred Rappaport in the year 1980. The analysis involves calculating the value of the business by discounting the free cash flows of the business at cost of capital of the company. Further, to find out shareholders value, marketable securities and other investments are required to be added, and the value of debt of the business is to be deducted. Free cash flows of the firm reflect the cash flow generated from the operations of the business without adjusting for the cash flows of the shares and debts like interest and dividend payments and other related cash flows. Free cash flows of the firm can be derived as follows. Operating Profits After Tax (OPAT)= Revenue-Operating Profit+ Depreciation-Tax on profit Free cash flows from the operations=OPAT-Investments in fixed capital-investment in working capital The above formula would provide us the free cash flows from the business. To derive the value of free cash flows of the firm accurately, the calculation of the free cash flows should be divided into two parts. One should be the free cash flows during the planning horizon and other is free cash flows after planning horizon, that is future years. Free cash flows can be derived as follows. Value of the firm=PV of free cash flows during planning horizon+ PV of free cash flows after planning the horizon The value of the free cash flow for each year during the planning horizon can be derived by using seven value drivers as follows. The value for each component should be calculated differently by using seven value drivers detailed below. The annual sales growth rate Operating profit margin rate Income tax rate Incremental capital investment rate Incremental working capital rate Planning horizon Cos of capital With the help of above information, we can achieve the value of free cash flow of the business during the planning horizon. The second part of the valuation is free cash flow of the operations after the planning horizon. The value of the infinite period after planning horizon is called terminal value. Most of the companies, do not earn much after the planning horizon who are working in the competitive environment. It is assumed therefore that the business will not earn anything more than capital invested in the business. Hence, the assumption would be that the free cash flow earned at the end of the planning horizon would continue to earn for rest of the years for an infinite period. This way, the shareholder value of the business is measured in numerical terms. One use of shareholder value analysis is to value the business of the company. Moreover, another effective use of shareholder value analysis is to analyse and evaluate the strategic decisions made by companies. The evaluation of strategic decisions by the SVA method is conducted by comparing the pre and post strategy value of the company. The sensitivity analysis can also be conducted with the seven key value drivers of the business. The only difficult part of the SVA method is to predict the variables used in the analysis. Justification of Variables used For the purpose of calculating shareholder value of Balfour Beatty, the first calculation made costs of capital of the company. WACC is calculated to use it as the cost of capital of the company. As the capital structure of the company consists of debt and equity, WACC is used as the cost of capital of the company. SVA first emphasize on calculating the value of the business by discounting the cash flows of the business during the planning horizon and then adding marketable securities into them and deducting the value of the debt. The basic concept of finance suggests that to calculate the value of equity for equity shareholders, the cost of equity only is taken as the cost of capital. However, the SVA method first calculates the value of the business by discounting the free cash flows of the firm during the planning horizon and then it makes other relevant adjustments to find out the shareholders value. For the purpose of calculating WACC, following are the factors considered. Tax rate, equity beta, risk-free rate, risk-free premium, cost of debt, market value of equity, market value of debt, total market value of equity and debt, the proportion of equity and debt and cost of equity as well as the cost of debt. VARIABLES Amount Tax Rate (T) 20% Equity Beta (Be) 0.481 Risk free rate (Rf) 2.10% Risk premium (Rm-Rf) 5.20% Cost of debt (Kd) 2.30% Market value of equity (MVe) 1,820.22 Market value of debt (MVd) 957.00 MV (MVe + MVd) 2,777.22 As percentages: Equity (E) 66% As percentages: Debt (D) 34% Cost of equity (Ke) 4.60% WACC (Ko) 3.65% The first factor considered here is the tax rate applicable to the company. The tax rate used to calculate WACC is 20%. The operations of the company are scattered across different countries like UK, US, Middle East and South East Asia. The operations carried out by the company are construction services, support services and infrastructure investments. Major activity carried on by the company is construction services, and it is located in UK, US, Middle East and South East Asia. Major revenue is earned from the construction activities. Major revenue is earned from the activities carried on in UK. (AR 2014, Page No. 106). The corporation tax rate in UK for the year ended 2014 was 21.5% and the tax rate for the year ended 2013 was 23.25%. Other countries tax rates were different. Hence, to coordinate with all the countries tax rates, the tax rate of 20% is assumed as the tax rate of UK is reduced to 20%. Beta is the value of the sensitivity or volatility of the portfolio. Here, beta is used to derive the value of the cost of equity. Equity beta is the riskiness attached to the ordinary shares of the company. There are different alternatives available to calculate the beta of the company. However, the beta of Balfour Beatty is taken 0.481 from The Financial Times. Risk-free rate of return for calculating WACC is taken as 2.10%. The risk-free rate of return is the minimum return that we receive from the government securities that are free from any kind of risks. The risk-free rate of return is always same for every company. The market return is the return that we earn from the securities we have invested in. It is a return that is earned from the market. It is based on the prices of the securities that are earned from market. The price of Securities keeps on changing, and the market rate also keeps on changing based on the reaction of the prices in the market. As the risk attached with the securities that are non-government is higher, the return earned on them is also higher compared to risk-free securities. The difference between the risk free rate of return and market return is called risk premium. It is a premium earned for higher risk and the risk attached with the securities invested in. The risk premium of the company is 5.20%. This risk premium is the premium earned on the securities the company has invested in. The cost of debt is the rate at which company is given debt by financial institutions. The cost of debt is the rate of interest charged by the financial institutions on the amount they have lent to the company. The cost of debt is taken in use after deducting the tax amount on it. The cost of date taken here is 2.30% after deducting the portion of a tax on the rate. (AR, Page No. 14) The market value of equity is 1820.22 million. The ordinary shares of the company are 690 million. The market value of shares on the last day of the financial year is used to calculate the market value of equity of the firm. The market value of a share is taken from The Financial Times. The market value of debt of the company is 957 million. (AR, Page NO. 92). The total value market value of the equity and debt is 2777.22 million. From the financial statements of the entity, we can derive the proportion of the debt and equity of the company that is 34% and 66%. The proportion of the debt and equity is used to calculate the WACC of the company. The method used to calculate the cost of equity is CAPM. The cost of equity of the firm is 4.6% by using the below-given model. Ke =Risk Free Rate+ Beta of equity*(Market Return-Risk Free Rate) WACC of the company is calculated by taking the weighted average of the cost of equity and cost of debt of the company in proportion to their weight in the capital structure of the company. WACC=Ke*(MVe/MVe+MVd)+Kd(MVd/MVe+MVd) The WACC of the capital of the company came to 3.65%. The WACC would be used as the cost of capital to discount the free cash flows of the company. The WACC rate would be used as the required rate of return of the company. The following data is used as a base to derive the free cash flows of the company during the planning horizon and for rest of the life of the company to find out the terminal value of the company. Particulars Amount Info. About variables Last sales 7,264 Million Sales growth 1.0% per year Op. Profit Margin 1.0% of sales Associate Cos profit 53 Tax rate 20% of op. Profit margin Inc. Cap. Inv. 50.0% of change in sales Inc. W. Cap. 50.0% of change in sales Planning Horizon 5 Years Required Rate of Return 3.65% Mkt Securities and cash 40 With the help of previous two years annual report of Balfour Beatty, the free cash flows of the company is calculated to find out shareholders value of the firm. Revenue for the year ended 2013 of the company was 7264 million. The value of revenue is taken from the annual report of the company for the year ended 2014. Sales growth of the company is estimated to be 1%. The growth rate of the company is derived from the following formula. Growth Rate= (Revenues2011-Revenues2010)/Revenues2013 Operating profit margin of the year is 1%. The profit margin % of the year is calculated using below-given formula. Operating profit margin= Operating profits2011/Revenues2011 Operating profit of the associate companies is 53 million. The value is derived from the annual report for the year ended 2014. Its the share of associates profit after tax in the profit of the whole group. The normal corporate tax rate of the company is assumed at 20% as explained above. The increase in the amount of capital investment is 50% of the change in sales. The % of the increase in capital investment of the company is calculated using below-given formula. The increase in capital investment= Change in FA/ change in revenue; FA = Intangible assets + property, plant and equipment The increase in working capital of the company is 50% of the change in sales. The increase in working capital is calculated using blow given formula. The increase in working capital= Change in WC/change in revenue; WC = Inventories + Trade and other receivables - Trade and other payables The planning horizon of the company is five years, and the required rate of return of the company is 3.65%. The marketable securities and cash of the company are 40 million. The marketable securities and cash of the company are calculated as below. = other fin assets(NCA)+other fin assets(CA)+cash and cash equivalent (CA) less other financial liabilities (CL) and (NCL) Employment of SVA model Year 1 2 3 4 5 6+ Actual Difference Sales 7,300 7,337 7,374 7,410 7,447 7,447 Profit 37 37 37 37 37 37 Associate profit 53 54 54 54 54 54 LessTax 7 7 7 7 7 7 Less ICI 18 18 18 18 19 0 Less IWC 18 18 18 18 19 0 Operating Cash Flow 46 46 47 47 47 84 117 32.65 PV of cash flows 45 43 42 41 39 1,927 2,675 747.91 NPV 2,136 2856.4 719.86 Add mkt secs 2,176 2896.4 719.86 Less debt 957 957 - Equity Value 1,219 1939.4 719.86 Actual Value 1,798 1798.4 - 68% 108% 40.00% In given example for year 1 operating profit is 40 which is calculated by deducting Tax @ 20% , Inc. in Capital Investments @ 50% of Sales, Inc. in working capital @ 50% of sales from profit so derived (i.e. sum of operating profit which is 0.5% of sales and Associate profit which is 0.5% of associate operating margin). Such an operating cash flow is then converted into present value by multiplying cash flow with required rate of return of 3.65% called as NPV i.e. Net Present Value. When debt id deducted from NPV Equity Portion is derived. Comparative Analysis The comparative study of the actual value and the value calculated as per SVA model shows that the actual shareholders value is 1798.4 million while as per SVA method the shareholders value is 1798.4 million. The value as per SVA model is 8% higher than the actual shareholders value. There could be many factors due to which there is a difference between the actual value and the value calculated as per SVA method. There could be the change in the beta value or the market rate of return of the company due to which there is a difference between the actual value and the value derived as per SVA. Moreover, there could be changes in the value of both the actual and the SVA value due to assumptions of the data used in the model. Sensitivity Analysis Sensitivity analysis is the technique to analyse the sensitivity of the project. It is also known as the what if analysis. In case, the revenue of the business decreases by some amount of %, what would happen to the shareholders value or in another way, if the required rate of return of the company rises by some amount of %, what would happen to the shareholders value. This way, the sensitivity analysis of the project of the company is conducted. Here when sales growth rate and operating profit margin are changed (i.e. in decreasing order) then operating cash flow reduces as compare to actual cash flow. And when operating cash flow changes comparatively NPV too reduces as compare to actual cash flow. When operating margin and Profit margin reduces by 0.5%, then actual value reduces by 40% b. The chief executive of the group gave a report about the financial performance of the company. The financial performance of the company is declining since the year 2010. Revenue of the company is declining, and the company is making losses since many years. The most obvious and noticeable decline in the performance of the company was over the past 12 months. Many issues have caused the decline in the performance of the company as there are many operational issues with the business in UK. Moreover, another reason behind the decline in the performance of the company is the cost base of the group s also too high. There is a constant outflow in the working capital of the company since the year 2009. The chairman of the group gave an overview about the understanding of the problems of the company. After the major downturn in the construction industry, the UK business of the group due to industry downturn and many other factors resulted in an operating loss for the whole group. The overhead of the company was 1% higher this year than the industry averages. The company is making losses since last many years due to which there can be many issues with the company like raising of capital for the purpose of running the business of the company. Moreover, according to the report of the group executive of the company, there is constant outflow in the working capital of the company. Moreover, the company sold off the rail business of the Austria and Germany. Apart from the above-listed issues, in between a year, Carillion Plc with whom company dealt for the sale of one of the segments of the group called PB, withdrew their support despite of the public announcement made by the company. The directors of the Carillion gave an explanation about withdrawing the consent that the sale deal was not in the interest of the shareholders of the company. Another major issue was fall in the profitability of the company. The profitability of the UK construction business was materially impacted due to the issues happened with the UK construction business and the major downturn caused in the construction industry. Although, the year ended with the lower profitability, the receipt from the sale of PB benefited the company. The losses from the continuing business were higher than the losses made last year. The company made loss of 281 million in the year 2014 while company made a loss of 33 million in the year 2013. The loss per share of the company was eight paise compared to the earning of 21.5 paise in the year 2013. Total loss per share of the company was 8.6 paise. Even though, there were many cash outflows in the construction business of the company, the total cash flow of the c ompany was 219 million. Construction business in UK and US was the major source of revenue of the group. The company made the highest revenue from the construction business but in spite of making highest revenue from the business, the company ended up with the loss. The company is facing the major problem of the downturn of the construction industry in UK. The issue the company is facing since last five years is the downturn of the construction industry which is the major source of revenue of the company. The underlying loss from the operations for construction services was 209 million. However, in the year 2013, there was a profit of 18 million. The underlying loss from the UK construction business was 229 million which is included in this and in the year 2013, it was 20 million. The underlying revenue from the operations that are continuing is 6579 million which was 6594 million in the year 2013. Above cited problems can cause major problems with the financial position of the company. The company could face a problem with raising finance for the operations of the company as well as the share prices of the business could fluctuate with the information of the company. This could impact the image of the company on the shareholders of the company. The financial position of the company is weak since last many years, and that could affect a lot while issuing share capital or raising finance using other sources for operating the business of the company. If we look at the financial position of the company from the year 2010 to 2014, we can observe following things in the companys financial position. In the year 2010, the market conditions to conduct the business were stringent and very competitive compared to previous years. In spite of the above competitive market, the company performed very well in the year 2010. The company performed stronger than in the year 2009. The company started with a record order book in the year 2011. The record order book is a model to focus on the cost of the operations and the operational delivery of the business. The company is facing the UK and US market crisis since last many years. The annual report of the group concluded in the performance of the company that they did not expect a short-term recovery in the infrastructure markets of UK and US, but they truly expected a growth and progress in the operations and profitability of the company. In the annual report of the year 2010, it is stated that the company expected global market to be the growth market of the company. The financial performance of the company was better in the year 2010 compa red to 2009. The record order book was up to 8% at 15.2 billion which was only 14.1 billion in the year 2009. The pre-tax profit of the company was higher up to 3.2% while it was only 2.7% in the year 2009. The annual report of the company for the year ended 2011 showed good performance of the company. The order book revenue of the company was 7% higher than previous years revenue from order book. The revenue including joint ventures and associates were higher by 2% compared to previous year. The profit of the company before non-underlying items were higher by 2% compared to previous year. The above discussed operating review was of professional services. The company started making a loss from the construction services due to the downturn of the construction market in UK where the company had highest operations. The companys revenues declined by 8% compared to last year in order book. The annual report showed an increase in the revenue including JVs and associates by 5%. The company started making losses from the year 2011 as the profits before non-underlying items decreased by 16% compared to the year 2009. The operational performance of support services showed positive data compared to previous year. Even the infrastructure investment segment of the company performed well compared to previous year. The year 2012 was not so productive compared to previous year. The pre-tax profit of the company fell by 7% compared to previous year. In spite of low productivity, the dividends paid by the company were higher than the previous year. The underlying earnings per share of the company were 1% lower than the previous year. The performance of the company declined tremendously in the year 2013. The pre-tax profit of the year was 32% lower compared to the pre-tax profit of the year 2012. Moreover, the revenue of the group was just 1% higher compared to previous year. The underlying earnings per share were 37% lower compared to the year 2012. The dividend paid per share was same as it was paid in the year 2012. The chairman of the company said that 2013 was a challenging year of the company with 37% decline in the earnings per share of the company. The main issue the company is facing since last many years is the operating issues with the construction industry of the company in UK. As UK been the major operating area of the company, the company is facing challenges operating the business in UK. 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