The Death of Nelson Mandela and the Asian Tsunami Essay

Table of contents Introduction........................................................................................................1 Local media spectacle........................................................................................2 Global Media spectacle......................................................................................5 List of illustrations.............................................................................................7 Bibliography......................................................................................................8 Plagiarism Report..............................................................................................9 Introduction My†¦show more content†¦The day he died brought the whole world to a stand still which signifies the power and the effect that this man had on the world. I will be discussing a few media institutes reflecting their findings and presenting it to the public. The first media source I researched was CNN World, the headline reads â€Å" Nelson Mandela, anti-apartheid icon and father of South Africa, dies.† This headline has summed him up reflecting the person he was and the power he held in the worlds eyes. CNN highlight the facts that he was a freedom fighter, prisoner and a moral compass to his own people and the world. After spending 27 years in prison he forgave the white government that imprisoned him and negotiated peace, leaving behind his bitterness and hatred, this approach inspired the world that apartheid was a thing of the past. CNN analyses Mandelas life to be positive in all areas beneficial to the country and the world. It touched on Nelson being considered as a hero to all races, a father figure and a global ambassador. His influence stopped a civil war in 1994 which could have been the bloodiest war on racial grounds. CNN highlighted that the nation was on edge as his last appearance in public was at the 2010 World Cup in SA and from then became frequently hospitalised, presenting Zuma to step in each time he felt sick. CNN captured Mandelas full life in stages of significance, reflecting a positive outlook in the hero that he was and a down to earth normal person with imperfectionsShow MoreRelatedInternational Management67196 Words   |  269 Pagesfall of communism in Eastern Europe, he has been actively involved in management education programs sponsored by the U.S. Agency for International Development in Albania and Macedonia, and in U.S. Information Agency programs involving the Central Asian countries of Kazakhstan, Kyrgyzstan, and Tajikistan. For example, Professor Luthans’ recent international research involves his c onstruct of positive psychological capital (PsyCap). He and colleagues have published their research demonstrating theRead MoreStephen P. Robbins Timothy A. Judge (2011) Organizational Behaviour 15th Edition New Jersey: Prentice Hall393164 Words   |  1573 Pagesfor Managers 296 S A L Self-Assessment Library Do I Have a Negative Attitude Toward Working in Groups? 272 Self-Assessment Library Do I Trust Others? 280 glOBalization! Forming International Teams in a Virtual World 291 Myth or Science? â€Å"Asians Have Less Ingroup Bias Than Americans† 292 An Ethical Choice Should You Use Group Peer Pressure? 294 Point/Counterpoint Affinity Groups Fuel Business Success 298 Questions for Review 297 Experiential Exercise Wilderness Survival 299 Ethical Dilemma

Mariono Blanch Autobiography Free Essays

Hi, I’m Mariono im 15 years old and during my 15 years of existence I’ve learned many things I’ve also experienced many things, but I also have surrounded my beliefs around things I was taught. The one major thing that I go by which I call a belief is expressing your feelings and not holding them in ask for help if you need it. I say this because I had to learn the hard way and hurting others while learning. We will write a custom essay sample on Mariono Blanch Autobiography or any similar topic only for you Order Now My mom is a single parent she is also flight attendant so she travels a lot and I didn’t really have a male figure in my life because my father left when I was younger so I had a lot of anger in me and I never really said anything. I wouldn’t say that I had an attitude but it was like I was mad at the world I felt like I was being punished for nothing so as I got older people would bring up my situation more and more. They would ask me questions like are you okay? Are you happy? Should we talk about it? Then I would be dishonest because I was so determined that I was going to keep a motto me, myself and I. I also would get jealous sometimes when I saw happy families together because that feeling turned me kind of bitter. As my teen years started to come the more accomplishments I achieved the more angry I got because I wanted that father and son bond time. It started to affect me a lot I started to think different in school, lashing out at people for nothing so of course people started to notice the difference in me. Then people started offering me help and some I didn’t even know so then I stopped talking a lot and one day me and my mom had a disagreement about a box of cereal and then my body just let go and I snapped. It was like I couldn’t control myself I was letting so much out over something so small and once I cooled down I sat down and thought about it and I thought to myself I can’t live like this. So I ask my mom for some changes so now I live with a full figure family a little bother a little sister and I have a dad to talk to and now I can release myself. Sometimes I will think about my past and the choices I made and how I grew up and when I do I just simply talk to someone without being afraid of being judged. I try to spread and help people with my belief as much as I can and I just want to close out by saying your body is like a temple it’s a certain amount of everything it can take before a reaction come out so you should try to take care of it as much as possible don’t leave stress in anger and you ask for help then release it. How to cite Mariono Blanch Autobiography, Papers

Business Case Analysis Memo Samples †MyAssignmenthelp.com

Question: Discuss about the Business Case Analysis Memo. Answer: The following memo is an analysis of social media strategy a case study of First National Bank (FNB) of South Africa. FNB is the oldest bank in South Africa and has it origin in Eastern Province Bank that was started in Grahamstown in 1838. The bank is amongst the top four banks in South Africa in terms of customers and assets. The bank is Michael Jordaan as the CEO and Lana Strydon as head of digital marketing and media. The memo will analyze social media strategy benefits and what should be considered when formulating and implementing social media strategy. This will involve discussing how FNB use digital and social media, benefits realized from investing in social media strategy, and lessons learnt from the bank experience in developing and implementing social media strategy. The memo will also identify important factors to be considered by organizations using social media to communicate to customers. First National Bank has used digital and social media in several ways to engage with its customers. First, FNB enabled its customers to make some transactions using Facebook. The bank enabled customers to link their Cellphone banking account with their social media profiles. Customers are then able to access their bank accounts from the FNB banking application on Facebook. This digital development enabled customers to check their account balances, and purchase prepaid products such as SMS bundles, airtime, and view Powerball and Lotto results. Second, the bank launched educational series on YouTube. The FNB created YouTube videos to educate people about fundamental principles in finance. The videos focused on teaching people the importance of saving, how to save, and creating a budget to minimize spending. This social media interaction and information sharing enlightened people to became banks customers. Third, the bank uses a banking app to engage with customers. FNB was the first S outh African Bank to create a banking app. The banking app enable customers to make transactions such as account transfers, updates, check balances, apply for loans, create saving plan, and enable customer care support. FNB also uses dotFNB stores. The dotFNB stores provide customers with self service banking digital platform. Customers are provided with virtual environment that enable video conferencing with experts from the banks. Therefore, FNB has widely used digital and social media to engage with it customers by launching unique products setting trends in digital marketing. FNB has benefited from social media strategy in several ways. First, the social media strategy enabled FNB to do low cost marketing. Social media marketing enabled FNB to create brand awareness to people on social media. Social media marketing also enabled the bank to inform customers and potential customers about their products. The bank was able to reach up to 1.4 million people on Facebook on a single post approximately 700000 people on Twitter per month. Secondly, the social media strategy enabled the bank to increase its sales. Potential customers were reached and there was increase in number of account opening and product buying. There were more than 10999 accounts that were opened from adverting on social media. Thirdly, the FNB was able to support customers. The social media strategy enabled the bank to increase customer loyalty and trust through customer support. This has been done through use of social media to educate, receive feedback, advice, and address complaints. The bank was able to present itself as trustworthy, approachable, and likeable to the society. The FNB social media strategy also enabled the bank to develop sustainable relationships with customers (Tuten, and Solomon, 2014). The bank was easily reachable by customers. The relationship enabled deep understanding between the bank and the customers. Therefore, FNB social media strategy has benefited FNB bank in creating a higher level engagement that has increase customer base, loyalty and returns to the organization. From FNB development and implementation of social media strategy, several lessons are evident to increase the success of a social media strategy. First, an organization has to set a clear goal when investing in social media. Setting of a social media goal before investing in a social media strategy enables to determine what resources and social media to invest in (Rootman, and Cupp, 2016). Secondly, organizations should focus on creating value to people rather than just advertising and promoting products on social media. Organization should focus in providing content that is beneficial to social media people instead of posting promotional messages (Lewis, Tigist, and van Vuuren, 2013). This attracts people creating a relationship that are then turned to customers. Thirdly, the organization should build relationships by understanding customers needs. Building a relationship with customers enabled the organization develop and implement social media strategy that aligned content to supp ort customers needs. It is also important to assess the social media that the organization is about to invest in. This ensures that an organization invests in social media where its potential customers are (Trainor et al., 2014). Organizations should consider several factors when using social media to communicate with customers. First, an organization should consider its goals to investing in social media marketing. The goal determines the social media that the organization will invest in and the content to post. Secondly, organization should consider the number of people in a certain social media before using it to communicate with customers. Considering the number of people enables an organization predetermine resources needed and returns expected. Organizations should also consider the content that they post on a social media. The content posted is important in attracting, informing, or persuading people to buy from an organization (Ashley, and Tuten, 2015). An organization should carefully consider content in order to create a high level engaging content with customers. In summary, FNB was able to successfully formulate and implement an effective social medial strategy. FNB investment to digital and social media marketing has enabled strengthening of FNB brand and building ongoing relationship with customers. The lessons from FNB social media strategy is that the focus should be on the goal to invest, building relationships and deepening customer needs understanding to enhance engagement. Therefore, organizations should consider the social media goal of investing, number of people in a social media and content to be shared in a specific social media when using social media to communicate with customers. References Ashley, C. and Tuten, T., 2015. Creative strategies in social media marketing: An exploratory study of branded social content and consumer engagement. Psychology Marketing, 32(1), pp.15-27. Lewis, D., Tigist, S.H. and van Vuuren, M., 2013. Exploring new media technologies among young South African Women. Rootman, C. and Cupp, M.N., 2016. The impact of social media on customer satisfaction and retention in the banking industry: views of clients and managers. Trainor, K.J., Andzulis, J.M., Rapp, A. and Agnihotri, R., 2014. Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM. Journal of Business Research, 67(6), pp.1201-1208. Tuten, T.L. and Solomon, M.R., 2014. Social media marketing. Sage.

Job Hopping free essay sample

While job hopping has a negative connotation; this is more about a resource providing value to a company, and then realizing there is nothing more to learn in that environment. Until recently, job hopping was considered career suicide. The experts weighed in on the pros and cons of job hopping. Job hopping is more common with employees that are less tenured, and feel confident in their skills to be able to move on without burning a bridge and can add value immediately in a new opportunity. As job longevity becomes a thing of the past, employers and recruiters are beginning to have a different outlook on job hopping. In order to keep their skills fresh, it is necessary for technologists to remain current in a highly competitive market. The Guide for the Recent Grad, agrees. This can be more common for those specializing in development, mobile and Project Management. aâ‚ ¬? It is usually considered job hopping when you move from one company to the next every one to two years, have done it multiple times, and the reason for each move is due to something other than a layoff or company closing. We will write a custom essay sample on Job Hopping or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page aâ‚ ¬? Frank Dadah, a principal account manager and general manager at WinterWyman,A  a recruitment firm thatA  specializes in search and contract staffing in the Technology, Accounting and Finance, Human Resources, and Investments and Financial Services industries, says job hopping is moving from one company to the next for either a lateral move or promotion. Exposure to different jobs. A  Job hopping gives an employee the opportunity to see what other job are out there, Kahn says. An opportunity to show off some of your best attributes. A  Job hopping allows you to show employers that you are flexible, adaptable and a quick learner,aâ‚ ¬? s well as someone who is not afraid of change or taking risks,aâ‚ ¬? Cashman says. Diverse background. A  aâ‚ ¬? [Job hoppers] probably can point to experience in a number of different industries and different size companies, and exposure to a variety of challenges,aâ‚ ¬? saysA  Tracy Cashman, a partner and general manager in the IT Search division at WinterWyman. You may damage relationships. A  More and more, employers are turning to professional reference checkers to verify information and otherwise double-check their potential investment in a new employee, Parnell says. Youaâ‚ ¬Ã¢â€ž ¢re job may be less secure. A  If your employer is forced to lay off employees, you might be the first to go (given your track record of leaving companies quickly), Cashman says. Different employers provide access to different networks in which to plant roots and farm relationships; one day these may prove helpful or even career-saving. aâ‚ ¬? aâ‚ ¬? Where most products and services have a relatively long life-cycle, a job hopper will never experience such a satisfaction. aâ‚ ¬? More money. A  aâ‚ ¬? More often than not, an employer and their employee have a conflict of interests: the employer wants a lot of work for little pay, and the employee wants little work for a lot of pay,aâ‚ ¬? Parnell explains. aâ‚ ¬? In an environment where relationships are more important than ever, gaining experience by job hopping seriously compromises oneaâ‚ ¬Ã¢â€ž ¢s potential for developing deeper, more reliable contacts that can act as guarantors. aâ‚ ¬? Employers will be hesitant to invest in you. aâ‚ ¬? When jumping from job to job you are showing future employers that there is a high likelihood that you will do the same to them,aâ‚ ¬? Kahn says. Exposure to different businesses and people. aâ‚ ¬? Job hopping gives employees the opportunity to expand their experiences and shop around their talents,aâ‚ ¬? adds Kahn. aâ‚ ¬? It is usually quite expensive to recruit, court, hire and ramp up a new employee,aâ‚ ¬? he says. With employers being more open to hiring job hoppers, we expect the trend to continue. aâ‚ ¬? A chance to find the right fit. A  Job hopping gives you more opportunities to figure out what you like and donaâ‚ ¬Ã¢â€ž ¢t, and what is important to you in a position and company, Cashman says. â‚ ¬? One or two short stints might be acceptable if you went to a company that went bankrupt or were caught up in a layoff or just plain chose the wrong fitaâ‚ ¬but many of these might indicate you are someone who doesnaâ‚ ¬Ã¢â€ž ¢t have good judgment,aâ‚ ¬? Cashman says. Tenure of young employees (ages 20 to 34) is only half that (2. 3 years). aâ‚ ¬? By working at multiple companies you will get to see ways that others are conducting business, while expanding your network to a whole new pool of professionals. Where a single move within a five year span may have labeled someone as a pariah, in some industries nowadays, a move per year isnaâ‚ ¬Ã¢â€ž ¢t unheard of. aâ‚ ¬? Lesson learned: There are many benefits and drawbacks to job hoppingaâ‚ ¬but if you do it for the right reasons and maintain healthy relationships with past employers, the pros should outweigh the cons and youaâ‚ ¬Ã¢â€ž ¢ll be seen as a flexible, resourceful candidate. Theyaâ‚ ¬Ã¢â€ž ¢ll fear youaâ‚ ¬Ã¢â€ž ¢ll leave at the first sign of trouble. A  aâ‚ ¬? The employer will wonder if you jump ship at the first sign of trouble, or if you always think the grass is greener someplace else,aâ‚ ¬? Cashman says. The environment necessary to foster this growth canaâ‚ ¬Ã¢â€ž ¢t be found under a single roof. aâ‚ ¬? Also at most companies, putting in the years of work with them proves your loyalty helping to strengthen your job security. A  Loyalty goes a long way and from the employers perspective gives them dependability that they can count on. aâ‚ ¬? aâ‚ ¬? While they often meet in the middle when initially negotiating salaryaâ‚ ¬because the future employee has some leverage prior to an acceptanceaâ‚ ¬the subsequent raises are usually lackluster. l have a large, resourceful network. â‚ ¬? Social and professional networks are more active and influential than ever before,aâ‚ ¬? Parnell says. aâ‚ ¬? That way, when you are finally ready to settle down for several years, you know what you are looking for. aâ‚ ¬? aâ‚ ¬? For those in technology, for example, it allows them the opportunity to gain valuable technical knowledge in different environments and cultures. Access to more information and resources. A  aâ‚ ¬? With the entrance of the Internet came a previously nonexistent pipeline of information that functioned as a massive catalyst for change in the employment market,aâ‚ ¬? Parnell says. Hiring managers were wary of resumes loaded with several short job stints; theyaâ‚ ¬Ã¢â€ž ¢d think you were an unstable or disloyal employee. Job hopping can be extremely advantageous for certain types of peopleaâ‚ ¬if they do it for the right reasons, saysA  Laurie Lopez, a partner andA  senior general manager in the IT Contracts division at WinterWyman. aâ‚ ¬? Someone who has a diverse background is often more attractive to a potential employer because they potentially bring new ideas and ways of doing things.

Trifecta Not Always Appropriate

Trifecta Not Always Appropriate Trifecta Not Always Appropriate Trifecta Not Always Appropriate By Maeve Maddox Libby Lewis wonders about the different meanings of trifecta.: I had a student use it in a paper addressing racial discrimination: the United States ever growing trifecta of white, black, and brown. another student cited an article from MuscleMag magazine entitled Your Tri-Fecta for success.Can this word be used as a general reference to any trio? First lets look at the term perfecta. The OED identifies the gambling term as chiefly U.S. and defines it as a bet that requires the bettor to predict, in the correct order, the first and second finishers in a race. In New York state, this kind of bet is called an exacta. The OED entry for trifecta identifies it as a betting term used principally in North America, Australia, and New Zealand. Its a recent (1971) addition to English and derives from American Spanish perfecta which is a shortening of quiniela perfecta, perfect quiniela. Quiniela, game of chance. Entertainment writers were probably the first to use the word trifecta to mean any three awards won by an artist: Joe Lovano hit the trifecta at the Jazz Awards, with wins for tenor saxophonist, small ensemble and record of the year, but pianist-composer Vijay Iyer walked off with musician of the year honors They may also have been instrumental in turning trifecta into a mere synonym for three or trio. How’s this for a musical trifecta: the intriguing guitarist Charlie Hunter, the swinging Vanguard Jazz Orchestra and the imposing saxophone/drums/bass trio known as Fly. Some writers use trifecta in any context in which three of anything figure: Marchesa actually had a trifecta of successes. Marchesa is a fashion house and three women wore its designs to the Emmy awards. Jerrod Niemann Completes a Country Music Trifecta Niemann is going to play at the Grand Old Opry. Hes already played at two other venues on his wish list. Blue Spur eatery up for awards trifecta The restaurant has won the award twice before. MGM Recipients Achieve MacArthur Trifecta Andrea Ghez won the Maria Goeppert Mayer Award in 1999. She was the third woman to win this award, hence the trifecta in the headline. Its probably a reasonable extension of the word trifecta to use it to refer to the winning of a trio of awards as here: McMurray gave Ganassi his first Daytona 500 win in February. In May, Dario Franchitti won the Indianapolis 500 in one of Ganassi’s cars. On Sunday, Ganassi hit the unprecedented trifecta. No other car owner has won all three major races, much less in the same year. Used willy-nilly to mean three of anything, however, it smacks of lazy writing. Its use is especially inappropriate in this New Republic piece about the automotive industry: GM, Ford, and Chrysler are taking precisely the sorts of steps everybody says are necessaryor, at least, they were taking those steps until an unexpected trifecta of high gas prices, vanishing credit, and a deep recession hit. The word trifecta implies winning. High gas prices, vanishing credit, and a deep recession hardly fit the connotation. Here are some other three words to consider, depending upon the context: trio triple triad trilogy tripartite triplet troika Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Misused Words category, check our popular posts, or choose a related post below:Compared "to" or Compared "with"?What is Dative Case?Drama vs. Melodrama

Characters in Hamlet Essay Example for Free (#2)

Characters in Hamlet Essay Character (1309) , Hamlet (634) , Claudius (325) , Ophelia (231) , Polonius (224) , Gertrude (208) , Laertes (186) , Reynaldo (14) In Hamlet, Polonius interacts in very different ways with the various characters. While talking with Reynaldo, he speaks in a sneaky, sly and clever manner. When talking with his daughter Ophelia, he seems very concerned. When talking with Hamlet, he seems confused, not knowing what Hamlet is talking about. When talking with the Players, however, he acts imperiously, exerting his authority over them. When talking with Reynaldo, Polonius speaks in a clever and sneaky manner. He tells Reynaldo exactly how to speak to people while trying to find Laertes. He tells him exactly what to say so that the other person will be forced to tell him of the whereabouts of Laertes. He told him that he should say â€Å"you may say, not well. But, if ‘t be he I mean, he’s very wild.† Polonius’s sneakiness is seen through his clever tactic in sending Reynaldo to Paris for the purpose of discovering Laerte’s habits. When talking with his daughter Ophelia, however, he seems genuinely concerned. This is true because in regard to Laertes, Polonius was looking for an excuse to punish or disown him for leaving the country. However, by Ophelia, Polonius is really concerned. While speaking with Gertrude and Claudius, Polonius is very honest. He comes before the king and queen bringing good news. The good news is that he knows why Hamlet is so upset. The reason is because of Ophelia. After discovering Hamlet’s lust for his daughter, he told Ophelia to stop meeting Hamlet and to send back Hamlet’s love letters. Then, he asks the king and queen if there has ever been a time where he had not told the truth. Claudius responds â€Å"not that I know.† To prove his fidelity, he is prepared to have his head chopped off if he is wrong. When talking with Hamlet, Polonius is confused. Polonius does not understand what Hamlet is talking about. When confronting Hamlet, Hamlet is reading a book. When asked what kind of book he is reading, Hamlet responds â€Å"Slanders sir.† While speaking with the Players, Polonius is arrogantly domineering. The Players come to perform a play for hamlet in order to cheer him up. While  doing their play, Polonius rudely interrupts them. He makes comments such as â€Å"This is too long.† In addition, after the play, when Hamlet instructs Polonius to treat the Players well, Polonius responds arrogantly, â€Å"My lord, I will use them according to their desert.† In response to Polonius’s disrespectful statement, Hamlet says â€Å"God’s bodykin’s man, much better. Use every man after his desert, and who should ‘scape whipping? Use them after you honor and dignity.† In conclusion, Polonius’s character varies with every individual he interacts with. It varies to the extent that his character can change from extremely honest to sly and sneaky. Also, it can change from confused to arrogantly domineering. His unique character traits differ greatly to the extent that by the end of Act II, Polonius is viewed as a necessary and crucial character in the play. Characters in Hamlet. (2016, Jul 20). We have essays on the following topics that may be of interest to you

Public relations Dissertation Example | Topics and Well Written Essays - 7250 words

Public relations - Dissertation Example The field of Public Relations has been rapidly growing of late mostly because of the non-commercial and commercial organizations have started realizing the need for introducing various public relations activities. The means through which the public relations message need to be conveyed has increased considerably in the recent years for instance the cables, internet and satellite are the mass Medias which are unevenly distributed and globalized at the same time. A simple definition of Public Relations can be â€Å"Public Relations is the positive communication of a company or brand's message to all its target audiences is they staff, customers, the general public, the trade or government bodies†. However a more significant distinction by Destiny could be- PR as tactical communication, at a superior stage within the firm, and; PR as largely applied: intended at attaining column inches in the technical journals or favorable remark in the financial press. Public relations have bee n accompanying us for over thousands of years. â€Å"Sematikos† is the Greek term for Public Relations which mean Semantics. During 50 B.C. Julius Caesar created the first campaign memoirs named, â€Å"Caesar’s Gallic Wars†. There he revealed his military utilization strategies to persuade the Roman citizens that he was the best Monarch of the state. St. Augustine, who was a professor of public speaking in Milan during the 394 A.D., used to deliver the usual acclamation to the ruler and was the closest person to a minister for the imperial court. Thus, it can be said that St. Augustine was the first to be charged with public relations function. Thomas Paine wrote a pamphlet named â€Å"The Crisis† In 1776 that convinced the Washington Army to settle and start fighting at a time when there will be a number of people prepared to move towards arid region so that they could flee from the cold and the adversity of a winter operation. He was known as a master o f political communication whose works could easily influence the actions and thoughts of the mass. Lincoln's secretary of state, William Seward, gained a large number of audiences of America, during the year 1861, through his considerate way of speaking by the efficient usage of the press. He stated, "I speak to the newspapers – they have a large audience and can repeat a thousand times what I want to impress on the public.† In the year 1963, John Marston held a perception of PR which is still considered as true in today’s context, which says, â€Å"a brotherhood of some 100,000 whose common bond is its profession and whose common woe is that no two of them can ever quite agree on what that profession is â€Å"Public Relations has been defined in different ways by a variety of scholars and practitioners in which the term â€Å"management† has been used largely. The definition of Public Relations as stated by Grunig and Hunt says â€Å"management of comm unication between an organization and its publics†; Ledingham and Bruning described PR specifically as â€Å"relationship management† while the argument by Cutlip states that PR is â€Å"the management function that establishes and maintains mutually beneficial relationships between an organization and the public on whom its success and failure depends† According to Kitchen and Papasolomou, several scholar states that PR

Stragetic Management Case Study Example | Topics and Well Written Essays - 3000 words

Stragetic Management - Case Study Example In the long run, they have to convert the brand switchers into their own brand loyal. To meet this objective and to retain the loyal customers, relationship marketing is believed to be of immense help to firms. The effective use of CRM will ensure customer loyalty and convert them into lifelong consumers of the product. CRM is one among the many steps of customerization. The focus of CRM is to establish relationship with customers on an individual and personalized basis and then to treat different customers differently based on their expectations. CRM is the key to success in the present era and it has become the order of the day that customers are given personalized attention and only those organizations can succeed who have been able to build a base of their loyal customers. As per estimate, the cost of affecting a new customer is five times more in comparison to making an existing customer happy. In the present report, an attempt is made to prepare a CRM plan and discuss how effec tively it can be used to attain more customer base and support. Parcel Force Industry, a U K based parcel company is the firm discussed in the report. Parcelforce Worldwide is a leading provider of guaranteed express deliveries. The company has been serving it loyal customers for over 14 years, which provides a vital link for British businesses needing to send express shipments internationally and in the UK. Parcelforce Worldwide is the trade name of the Royal Mail Group. The company is being driven by its commitment and dedication to serve the customers by delivering the high quality services for over 30,000 customers across the country. Over the years there have been many changes in the company's environment- internally, externally and internationally. Many competitors have come up by posing threats and thereby prompting the company to deliver high quality services to the customers. Over the last few years parcel industry in the U K has been transformed into a stage where the customers have many choices to get their goods/ materials reached the desired points. This competitive situation made the company to rethink about its appr oach of marketing and attitude towards consumers. Now the company is striving to attain more loyal customers by delivering high quality services at fair and reasonable price.Executive Summary Because of the development in the parcel industry in the UK and mushrooming of many new players, the business of existing players including Parcelforce worldwide has been affected drastically. Moreover, the switch over of firms from conventional product oriented approach of marketing to customer oriented approach has compounded the situation worse than ever before. Companies have realized that those with less attention to customers are likely to lose customers and eventually lose business. This tendency among the major players tempted them to adopt a new approach of marketing. They have been, rightly mentioned, forced to change over to more customer-centric marketing strategies. In this context, the present report examines how Parcelforce Worldwide can introduce Customer Relationship Management as its new marketing strategy. The report further addresses various key issues that the firm should take care of in the implementation of CRM as a

Police Officer Job Description Essay Example for Free

Police Officer Job Description Essay All police officers take on a basic range of tasks that are either preventive or proactive. Preventive tasks include the provision of protection to the person and property of individuals, preservation of peace and order through their presence and accessibility, and prevention of crime by patrolling the streets. Proactive tasks are searching and arresting criminal offenders and enforcing laws such as traffic and road safety regulations. (Criminal Justice USA, 2008; Los Angeles Police Department, 2008) These tasks require a number of qualifying criteria for police officers. One is physical fitness since the completion of police work becomes more efficient with physically fit police officers. This is the reason why police officers undergo physical training such as the physical agility test and medical examination before qualifying to work the job. Another is psychological fitness since police officers need to develop the values and attitude needed for them to use their authority within the bounds of the law as law enforcers such as social skills. Last is mental and other skills and experience, including driving skills for street patrol, keen eyesight and observation skills, and basic knowledge of the law and legal processes. (Police Oracle, 2008) At a minimum, a high school diploma or equivalent qualification is required for police officers (Criminal Justice USA, 2008). In addition, continued academic and field learning improves the ability of police officers to meet their job. As such, police officers need to develop commitment and dedication to their job since this not only enables them to perform their work effectively but also enhances continued efficiency. In the performance of this range of tasks, police officers take on line and staff jobs. Line jobs pertain to the direct accomplishment of the tasks of police officers especially field work while staff jobs pertain to support for line work such as administrative and other support tasks (Police Oracle, 2008). Police officers need to master not only line jobs but also staff jobs to support and maintain the sound organizational or functional structure of the law enforcement agency inn providing public service.

The Great Gatsby by F. Scott Fitzgerald :: Great Gatsby Fitzgerald

F. Scott Fitzgerald was born in St. Paul Minnesota on September 24th 1896. His father was from Maryland and his mother was the daughter of an Irish immigrant. Fitzgerald, unlikely to graduate from Princeton, joined the army in 1917. Stationed near Montgomery, Alabama, he met and later married Zelda Sayre, a high-strung woman from a family more prominent than his own. His first novel, This Side of Paradise, published in 1920, was a tremendous critical and commercial success. Fitzgerald followed with The Beautiful and the Damned in 1922, The Great Gatsby in 1925, and Tender is the Night in 1934. He died on December 21st, 1940 of a heart attack and Zelda died in a hospital fire eight years later. The Great Gatsby, by F. Scott Fitzgerald, is a brilliant illustration of life among the new rich during the 1920s, people who had recently amassed a great deal of wealth but had no corresponding social connections. The novel is an intriguing account about love, money and life during the 1920s in New York. It illustrates the society and the associated beliefs, values and dreams of the American population at that time. These beliefs, values and dreams can be summed up to what is termed the "American Dream"; a dream of money, wealth, prosperity, and the happiness that supposedly came with the booming economy and the get-rich-quick schemes that formed the essential underworld of the American upper-class society. This withering theme presents itself in the novel through many of its characters. The writing style throughout The Great Gatsby is terse and though the book is depressing at times, its overall message of hope and the American dream is inspiring. The story begins when Nick Carraway, a young man, moves to New York from the Midwest to join the bond business. There, he soon becomes acquainted with his wealthy neighbor Jay Gatsby, and they become good friends. Gatsby confides in Nick and tells him that he is in love with Nick's cousin, the beautiful Daisy Buchanan. However, she is already married to the young and successful Tom Buchanan, who is unfaithful and has an affair with poor George Wilson's wife. "Daisy and Tom were sitting opposite each other at the kitchen tableÂ… They weren't happyÂ… yet they weren't unhappy either" (Chapter 7, pg.148). Later, Nick arranges a meeting between Gatsby and Daisy but soon after, they became involved in a love affair. It is revealed that many years ago, Gatsby and Daisy were in love, but Daisy would not marry him because he was rather poor. The Great Gatsby by F. Scott Fitzgerald :: Great Gatsby Fitzgerald F. Scott Fitzgerald was born in St. Paul Minnesota on September 24th 1896. His father was from Maryland and his mother was the daughter of an Irish immigrant. Fitzgerald, unlikely to graduate from Princeton, joined the army in 1917. Stationed near Montgomery, Alabama, he met and later married Zelda Sayre, a high-strung woman from a family more prominent than his own. His first novel, This Side of Paradise, published in 1920, was a tremendous critical and commercial success. Fitzgerald followed with The Beautiful and the Damned in 1922, The Great Gatsby in 1925, and Tender is the Night in 1934. He died on December 21st, 1940 of a heart attack and Zelda died in a hospital fire eight years later. The Great Gatsby, by F. Scott Fitzgerald, is a brilliant illustration of life among the new rich during the 1920s, people who had recently amassed a great deal of wealth but had no corresponding social connections. The novel is an intriguing account about love, money and life during the 1920s in New York. It illustrates the society and the associated beliefs, values and dreams of the American population at that time. These beliefs, values and dreams can be summed up to what is termed the "American Dream"; a dream of money, wealth, prosperity, and the happiness that supposedly came with the booming economy and the get-rich-quick schemes that formed the essential underworld of the American upper-class society. This withering theme presents itself in the novel through many of its characters. The writing style throughout The Great Gatsby is terse and though the book is depressing at times, its overall message of hope and the American dream is inspiring. The story begins when Nick Carraway, a young man, moves to New York from the Midwest to join the bond business. There, he soon becomes acquainted with his wealthy neighbor Jay Gatsby, and they become good friends. Gatsby confides in Nick and tells him that he is in love with Nick's cousin, the beautiful Daisy Buchanan. However, she is already married to the young and successful Tom Buchanan, who is unfaithful and has an affair with poor George Wilson's wife. "Daisy and Tom were sitting opposite each other at the kitchen tableÂ… They weren't happyÂ… yet they weren't unhappy either" (Chapter 7, pg.148). Later, Nick arranges a meeting between Gatsby and Daisy but soon after, they became involved in a love affair. It is revealed that many years ago, Gatsby and Daisy were in love, but Daisy would not marry him because he was rather poor.

Blah Jogging Around

According to C. Wright Mills, what occurs in any one individual's life is interrelated with society as a whole. To possess sociological imagination as defined by Mills â€Å"To be aware of social stucture and to use it with sensibility IS to be capable of tracing such LINKAGES among great variety of milieux. † The sociological imagination helps give us the ability to understand the correlation of one's own biography, history, and traditions along with the knowledge of the social and historical influence society may have on that person or groups of people.Mills notion makes us want to investigate into an individual's biography and lifestyles, and place their findings within the surrounding circumstances in which events occur in order to see the whole picture of the society in which the individual lives. In Lisa J. McIntyre’s case study titled â€Å"Hernando Washington† we read about a young man named Hernando Washington who kidnaps, rapes, and murders a 29 year ol d woman named Sarah Gould.When using the sociological imagination to look into this we ask questions such as, â€Å"What was the social milieu in which the event takes place? † and â€Å"what effects did the social system have on the individual? †. Asking these questions, we see that Hernando lived in an area where police activity was almost non existent. Hernando’s brother had been shot and sister had been raped with absolutely no police action ever taking place. This explains why Hernando thought he could get away with his actions.If all this could happen before then what would be wrong if he was the one who did it. We also see that Hernando viewed the rape he committed as sex. He thought that since Sarah was alone and with no male acomplise, it was ok for him to in his perspective have sex with (rape) her. The sociologists way of looking at what Hernando did doesn’t make did ok, but it does explain why he did it. He in his right mind with the situation s he had been placed in during his life thought that this was ok with just as much belief as what you and me think about it being wrong.

Financial Analysis on Aftab Auto Essay

Chapter 1 Introduction & Methodology 1: Introduction Aftab Automobiles Limited has been our selected company, which is one of the largest automobile assembling plants in the private sector in Bangladesh. Aftab Automobiles Ltd. is in this business since 1967. In 1981 the Company registered itself as a Public Limited Company. The Company was listed with Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited in the year 1987 and 1996 respectively. The principal activities of the Company throughout the period were assembling of Toyota Land Cruiser soft top/ Pick-up, Land Cruiser Prado, Hino Bus, Hino Mini Bus / Truck Chassis with a production Capacity of 2400 units of vehicles in 3 shifts in Assembling Unit. But since inception, the Plant is running single shift considering the market demand. The Company has added four units namely Body Building Unit, Paint Unit, Battery Unit & Furniture Unit and the commercial production of which started in May 5, 1997, November 01, 1999, January 03, 2002 and May 01, 2002 respectively. Overall, it is a company with vision of maximizing shareholders’ wealth and its investors have already shown their confidence in the company. Its share price has increased over the years compared to its book value. Furthermore, it enjoys a positive signaling effect from the market and there is good news for Aftab Auto. In this report, we will try to find out few reasons behind the good news and the positive signaling effect. The main company that we are performing financial analysis is on Aftab Motors LTD. Since our major focus is to compare two companies’ financial performances over time, so we have selected Atlas Bangladesh LTD as the rival company of Aftab Motors LTD. According to the project instruction, we aimed towards rationalizing stock price through financial statement analysis, and in doing so we have seriously dealt with the book value and market value of shares. By comparing the book value and the market value of Aftab Motors LTD from the year 2005-2009, we found out following information: 2: Objectives †¢ Making a thorough analysis of the company’s financial statements over the last 5 years through ratio analysis, cash flow analysis and analysis of major components of the balance sheet and trying to identify the actual state of the company since its enlistment in Dhaka Stock Exchange (DSE). †¢ Find out the difference between book value and market value of the share price and to identify the possible reasons behind this difference, and find if there is any specific hidden discrepancy in the existing financial statements of the company. †¢ Find out the growth to make the Pro Forma Statements (The Income Statement and the Balance Sheet) and thus forecast the growth potentials of Aftab Automobiles Ltd along with the stated out the results yielding out after the 5 year long term projection (long term cumulative process)., as well as projection of stock price through financial analysis. †¢ To compare the firm’s financial status with one of its rival firm (Atlas Auto) through ratio analysis with the justification of balancing between the market price and book value of the shares. 3: Methodology: Information Source This study is based on the secondary financial data which is published in annual reports and monthly reviews of Dhaka Stock Exchange Ltd. by the respective companies. We have obtained the necessary information from the DSE (Dhaka Stock Exchange LTD), Motijjhil, Dhaka, and from the annual report of the company. Data Processing and Analysis We have calculated different ratio using sourced data from DSE, and showed the comparison between the two companies’ performances over the last five years. Here the positions of companies were compared to their previous year’s performance and then the analysis has been done between those companies current year’s situations. Period of Data We have used data of five consecutive years from 2005, 2006, 2007, 2008, 2009. Statistical Techniques We basically used two different statistical techniques. First we used the Time Series method for ratio analysis and then Cross-Sectional method for showing the comparison between Aftab Motor’s LTD and Atlas Bangladesh LTD. There is also couple of tables and charts to specifically present the data with comments. We also did the regression analysis using the Microsoft Excel. Standard of Comparison As we know that there are few competitors for Aftab Motors LTD in Bangladesh. Among them, we figured that Atlas Bangladesh LTD is one of the most challenging one for Aftab Motors in terms of market share and fiscal performance over time. 4: Limitations of the Study †¢ Due to different month of year closing date comparison may not be accurate. †¢ We faced problem while breaking down the actual balance sheet and sorting out the adjustments. †¢ Due to time constraints we could not visit the premise of Aftab Auto to  incorporate more recent information and views of the â€Å"Top Management† about the performance & position of the company. †¢ Another limitation was collecting the industry averages for the ratio analysis. No such data are readily available in context of Bangladesh. So, instead of the industry average data we have to take the best available rival data. †¢ Also we had some problem regarding what will be the future investment of the company. We had to depend on the secondary source for that. †¢ We did not find exact unit price of company’s products as it was not clearly mentioned in their annual report. †¢ Also the company’s official website is not very informative and organized through which we could collect the information about the company. †¢ Lack of technical knowledge-how in higher-level statistical techniques. †¢ Moreover, time constrains and other factors deterred us to anticipate highest concentration that we could have given to prepare this report. Chapter 2 Analysis & Interpretation 2.1: Revised Balance Sheet based on Market Value of Share Market Value & Book Value of Aftab Auto Ltd: From the Annual Report of the Aftab Automobiles ltd we calculated the Book Vale of their share from 2005 to 2009. Besides that we also collected the Market Value of the share from the library of the DSE (Dhaka Stock Exchange). The following Graph shows the Market Value and the Book Value per share of our proposed company. Figure-1: Market & Book Value of Aftab Ltd. From 2005 to 2009 From the above graph we see that in year 2005, 2008 and 2009 the market price is higher then the book value, which is really good news for us. But in 2006 and 2007 the market price is below then the market price, which indicates that the investors underestimated the company’s wealth. But as our last year in 2009, so our analysis will be based on year 2009. In year 2009, we found that the Market Value is far more then the Book value which is Taka 1,530 and taka 390.38248 respectably. This figure indicates that the investors are willing to pay more for per share for the company then the book value shows because the investors may think that the company may underestimated the company’s wealth. So we constructed a new Balance Sheet compared with the current year (2009) Balance Sheet based on the Market Value of the corporation. Revised Balance Sheet Based on the Market Value in 2009: |Aftab Automobiles Ltd | |Balance Sheet | |2009 | | |Based on Book Value | Based on Market | Increase / Decrease | | | |Value | | |Assets | |Current Assets | | |Stock And Stores (Inventory) | | | | | | | | | | | |Total Stock & Stores | 737,517,274 | 1,281,969,612 | 544,452,338 | | |Total Accounts Receivable | 993,547,199 | 993,547,199 | – | | |Income Tax Deducted at Source | 93,002,081 | 93,002,081 | – | | | | | | | | |Advance, Deposits & Prepayments | 149,320,158 | 149,320,158 | – | | |Cash & Bank Balances | 27,881,100 | 27,881,100 | – | |Total Current Assets | 2,001,267,812 | 2,545,720,150 | 544,452,338 | |Non-Current Assets | | |Property, Plant & Equipment | | | | | | |Land | 58,959,642.00 | 58,959,642 | 648,556,062 | 589,596,420 | | |Building | 169,846,130.00 | 142,270,645 | 213,405,968 | 71,135,323 | | |Shades | 2,682,800.00 | | | | | |Less: |Accumulated | 1,529,591.00 | | | | | |Depreciation till 2008 | | | | | |Tools & Equipment | 45,965,960.00 | | | | | |Less: |Accumulated | 17,743,259.00 | | | | |Depreciation till | | | | | |2008 | | | | |Office Equipment | 31,021,242.00 | | | | | |Less: |Accumulated | 7,323,987.00 | | | | |Depreciation till | | | | | |2008 | | | | |Furniture & Fixture | 16,953,271.00 | | | | | |Less: |Accumulated | 2,973,873.00 | | | | | |Depreciation till 2008 | | | | | |Less: |Accumulated | 26,595,111.00 | | | | |Depreciation till | | | | | |2008 | | | | |Investment (4109300 Share Of Navana CNG) | 33,961,309 | 796,793,270 | 762,831,961 | | |Intangible Assets | – | 1,263,853,978 | 1,263,853,978 | |Total Assets | 2,438,883,896 | 5,744,380,219 | 3,305,496,323 | |Liabilities & Owners Equity | – | – | |Current Liabilities | | | – | – | | |Short Term Loan | | 229,914,219 | 229,914,219 | – | | |Total Accrued & Other Current Liabilities | | 1,275,342,755 | 1,263,853,978 | (11,488,777) | | |Dividend Payable for Preference Share | | 1,179,500 | 1,179,500 | – | |Total Current Liabilities | 1,506,436,474 | 1,494,947,697 | (11,488,777) | |Non-Current Liabilities | | | | – | | |Loan & Deferred Liabilities | | 17,100,000 | 17,100,000 | – | | |Preference Share Capital including Premium | | 9,827,929 | 9,827,929 | – | |Total Liabilities | 1,533,364,403 | 1,521,875,626 | (11,488,777) | |Equity Attributable to Equity Holders | | |Paid up Share Capital (Ordinary Shares – 2319570 Shares) | | 231,957,000 | 3,548,942,100 | 3,316,985,100 | | |Share Premium | | 250,191,730 | 250,191,730 | – | | |Reserve | | 107,100,735 | 107,100,735 | – | | |Retained Earnings | | 316,270,028 | 316,270,028 | – | |Total Assets & Liabilities | 2,438,883,896 | 5,744,380,219 | 3,305,496,323 | Justifications: 1. Stock & Stores: The investors may think that the company underestimates the price of the finished goods. As the company use to measure the finished goods based on the Cost of Production basis. But the original market price is higher then the value written in the Annual Report. Also the market price of the Raw Materials, Store & Spares, Goods in Transit, L/C Margin, Work-In-Process is underestimated. So in Revised Balance Sheet we increase the value of the Stock & Stores. 2. Land: The Land value is underestimated as we know that the land value is calculated as per the purchase price, not as per the market value. We know that the value of the land always increases. So we increase the value of the land. 3. Buildings: The value of the Building is calculated as per the establishment cost and the current value is calculated by deducting depreciation. So in this case the investors may find the Market value of the Building is more then the value used in the annual report. The investors may find the Building in better condition and able to offer the higher price than the value calculated in the balance sheet. So we also increase the value. 4. Plant & Machinery, Tools & Equipment, and Transport Vehicle: As all of these items value is written on the basis of the purchase price and also by deducting the accumulated depreciation. So the investors may find these items in better condition and also think that the market price is higher than the written in Balance sheet. 5. Investment: This Company purchased 4,109,300 pcs of share from Navana CNG Ltd. The value written on the Balance Sheet is from the purchased price. But the Current market price of this share is taka 193.90. So we also increased the value of the investment by using the market value of the stock. 6. Intangible Assets: The market price of the share is increased. This value increased may be the reason is the value increasing of the company’s intangible assets like Patent, Trademark etc. 7. Goods Supplied Account: We are decreasing this account on the basis is that, the company may get some purchase discount from the vendors. So the value of the accounts receivable is decreasing. Overall Comments: In year 2009, we see that the Market price is much higher then the Book Value of each share. Investors are willing to pay more than the book value of each share. The major reasons of the higher market value are the underestimation of the assets, as the assets are calculated based on the purchase price; not on the basis of the market price. Besides that investment to the other shares are also calculated on the purchase price. But the market price is also higher. Moreover, Aftab Automobiles ltd enjoys a better reputation on the market. So the Intangible assets like, Patent, Trade mark should be considered. So we can say that the company’s financial position is good. 2.1: Cash Flow Analysis: Cash flows are the cash receipts and the cash disbursement of the company. Since money does not flow in and out at an equal rate, so in most of the businesses, an analysis of cash flow is important. In our case we are working with the Cash Flow Statement of Aftab Automobiles Ltd from the year 2005 to 2009. After analyzing the statements we can have an idea of the cash dealing of the company of the years under our study. |Sources |2005 |2006 |2007 |2008 |2009 | | | | | | | | |EBIT |55,369,060 |61,681,543 |43,530,063 |79,204,842 |125,312,761 | | | | | | | | |Depreciation | 26,964,852 | 26,964,852|26,964,852 |26,964,852 |26,964,852 | |Tax |-7,179,527 |-14,602,650 |-13,059,019 |-21,781,331 |-51,261,009 | |Operating cash Flow |75,154,385 |74,043,745 |57,435,896 |84,388,363 |101,016,604 | | | | | | | | |Capital Spending: | | | | | | |Ending Net Fixed Investment |30,149,974 |26,582,937 |23,015,900 | |Less Beginning Fixed Investment | |-30,531,889 |-30,531,889 |-23,666,305 |-23,666,305 | |Deprecation | |26,964,852 |26,964,852 |26,964,852 |26,964,852 | |Net Fixed Investment | |26,582,937 |23,015,900 |26,314,447 |29,612,994 | | | | | | | | |Changes In Net Working Capital: | | | | | | |Ending Net Working Capital | |425,800,770 |260,925,322 |298,947,675 |905,519,493 | |Less: Beginning Net Working Capital | |171,666,619 |425,800,770 |260,925,322 |620,450,571 | |Changes In Net Working Capital: | |254,134,151 |-164,875,448 |38,022,353 |285,068,922 | | | | | | | | |Free Cash Flow from Assets | | | | | | |Operating Cash Flow |75,154,385 |74,043,745 |57,435,896 |84,388,363 |101,016,604 | |Net Fixed Investment | |-26,582,937 |-23,015 ,900 |-26,314,447 |-29,612,994 | |Changes In Net Working Capital | |-54,134,151 |-164,875,448 |-38,022,353 |-285,068,922 | |Free Cash Flow | |-6,673,343 |-130,455,452 |20,051,563 |-213,665,312 | |Cash Flow from/to Creditors | | | | | | |Interest Paid |34,992,217 |44,619,538 |48,012,628 |54,362,263 |90,846,346 | |Less New Long Term Borrowing |17,100,000 |17,100,000 |17,100,000 |117,100,000 |26,927,929 | |Cash Flow From Creditors |17,892,217 |27,519,538 |30,912,628 |-62,737,737 |63,918,417 | | | | | | | | |Cash Flow From Investors | | | | | | |Dividend Paid |24,000,000 |12,000,000 |12,000,000 |12,000,000 |1,179,500 | |New Equity |439,792,483 |701,016,976 |685,748,820 |621,050,571 |905,519,493 | |Cash Flow To Investors |463,792,483 |713,016,976 |697,748,820 |633,050,571 |906,698,993 | †¢ As we can see from the cash flow statement that, in 2006, 2007 & 2009 the free cash flow figures are negative. This might happen because of high investment in inventory and R&D departments, means the company used more cash than they had sourced of. †¢ Also the cash flows to Investors were sufficient for the company over the years. The company had sufficient fund to pay out dividends and that would eventually maximize the value of the firm. †¢ Fixed investments were consistent and consumed huge cash over the years. Overall we see that the Sales of the company are increasing which is a good sign. Besides that the company is investing heavily on the fixed assets, which may used to generate more revenue for the company. They are also offering cash dividend each year and also the company paid its short term load and also taking short term loans, which indicates that the company is enjoying a favorable environment in terms of the short term credit situation. So, we can conclude that the Aftab Automobiles Ltd is financially sound based on the Cash Flow analysis. Ratio Analysis and Interpretations To evaluate a firm’s financial condition and performance, the financial analyst usually performs analyses on various aspects to find out the financial health of the firm; among which ratio analysis is one of the most important and commonly used methods. Ratio analysis is a tool frequently used during the analysis to relate two pieces of financial data by dividing one quality by the other. In this study various ratio analyses will be done to understand the financial condition of the company and to compare this condition with its rival firm to get a clear picture. The analysis of financial ratios involves two types of comparison: ↠ Time–Series Analysis: First, the analyst compares a present ratio with past and expected future ratios for the same company. The current ratio (the ratio of current assets to current liabilities) for the present year could be compared with the current ratio for the previous year-end. When financial ratios are arranged over a period of years, the analyst can study the composition of change and determine whether there has been an improvement or deterioration in the firm’s financial condition and performance over time. Here we will conduct time series only on the Aftab Auto Ltd. ↠ Cross-Section Analysis: The second method of comparison involves comparing the ratios of one with those of similar firms or with industry averages at the same point in time. Such a comparison gives insight into the relative financial condition and performance of the firm. It also helps us identify any significant deviation from any applicable industry average (or standard). Here we will discuss and calculate different types of ratios. Then we will  compare the ratios between Aftab Auto Ltd. and Atlas Auto Ltd. The reason for doing this is that the industry average is not available in perspective of Bangladesh. ââ€" ª Liquidity Condition Analysis: Ratios that show the relationship of a firm’s cash and other current assets to its current liabilities are known as liquidity ratios. Different types of liquidity ratios are discussed below. Current Ratio: The ratio that relates current assets to current liabilities is the current ratio. The current ratio indicates the ability of a company to pay its current liabilities from current assets and shows the strength of the company’s working capital position. [pic]s Figure-1: The Current Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Current ratio for Aftab is higher than 1 and it is consistent for all five years. In 2006 it has increased a lot from the previous year but in 2007 it dropped for two consecutive years but again in 2009 it has increased again and is in a good satisfactory condition. Cross-Section Analysis: However, comparing to the ratios of Atlas, we see significant difference the two companies’ ratios. Aftab’s ratios seem to be much weaker than Atlas’s. None of the years it has made the benchmark of 2. However, the last 3 years results are not satisfactory at all because none of them is showing benchmark of 2 or the increasing manner. So, we can conclude that Aftab is showing poor trend in its quick ratio. Quick Ratio: Inventories typically are the least liquid of a firm’s current assets – they are the assets on which losses are most likely to occur in the event of liquidation. Therefore, it is important to measure the firm’s ability to pay off short term obligations without having to rely on the sale of inventories. This is why quick ratio is used. [pic] Figure-2: The Quick Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Quick ratio of Aftab is less than 1 which means it has piled up inventories as its current assets. The trend of quick ratio of Aftab shows that the ratio had been increasing from 2005 to 2006 but then suddenly fell significantly in year 2007 and 2008. Then it has increased in 2009. So, we can conclude that Aftab is showing low quick ration but increasing trend in its quick ratio. Cross-Section Analysis: Comparing with Atlas, Aftab has a very poor quick ratio even though it has increased but its running with risky conditions in terms its quick ratio. Cash Ratio: It is another measure of liquidity of the firm. It shows cash solvency of the firm. Figur-3: The Cash Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Aftab’s cash ratio has seen a fluctuating matter. The ratio is very low. Even though the ratio improved in 2008 than previous year, the ratio is significantly lower. Too much inventory pile up and poor credit collection policy may led to such deteriorating trend in cash ratios. Cross-Section Analysis: Comparing with Aftab, Atlas has a very high cash ratio which indicates Atals has a better credit collection policy and lower piled up inventories. Asset-Management Efficiency Analysis: A set of ratios that measure how effectively a firm manages its assets compared to its sales. These ratios are designed to find out whether the total amount of each type of asset as reported on the balance sheet appear reasonable, too high, or too low considering current and projected sales levels. Asset Management Ratio is done based on inventory turnover ratio, day’s sales outstanding and fixed asset and total asset turnover ratio Total Asset Turnover: The total asset turnover ratio is calculated by dividing sale by total assets. The total assets turnover ratio measures the turnover of all the firm’s assets. [pic] Figure-4: The Total Asset Turnover Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Total turnover of Aftab is not very satisfactory which means its not generating enough revenue by using its total assets which indicates it may some inefficient assets in its stock which deteriorating the total revenue. It’s in decreasing trend till 2007 but after that it as an increasing trend which is a very good sign in fact. Cross-Section Analysis: Atlas has a very high asset turnover ratios which indicates its assets efficient enough to generate more revenues and its in increasing trend for both the firm. Fixed Asset Turnover: The fixed asset turnover ratio is calculated by dividing sale by total fixed assets. The total fixed assets turnover ratio measures the turnover of all the firm’s fixed assets. [pic] Figure-5: Fixed Asset Turnover Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Fixed Asset Turnover of Aftab is very low and it’s in decreasing trend which indicates that it has very inefficient fixed assets in its stock to generate enough sales. . It means it is becoming more efficient to utilize its short term assets to generate sales and even though it’s fixed asset is generating more sales than does the short term assets Cross-Section Analysis: in terms of Fixed Assets Turnover Atlas has a very high fixed asset turnover ratio compare to Aftab which indicates Atlas is doing well in terms of using its fixed assets and generating revenue. Inventory Turnover: This ratio indicates how active the company has been. It talks about the efficiency as well as the management of the company. This ratio indicates the number of times in a trading year a firm sells the value of its stocks. [pic] Figure-6: Inventory Turnover Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Inventory Turnover of Aftab is very low but it’s in increasing trend till 2006 then there was a drop in 2007 after that it increased in 20008 then again it increased in 2009. So tells us that its inventory turnover is fluctuating and it doesn’t have efficient inventory to generate sales properly. This means Aftab was suffering from poor inventory management which is also evident from the balance sheet. But, recently it improving and overcoming the situation which is a good indication. Cross-Section Analysis: comparing with Atlas Aftab has a very low inventory turnover ratio whereas Atlas’s inventory turnover is very high which indicates that Atlas is efficient in managing its inventory. But Atlas’s inventory turnover has a decreasing trend whereas as Aftab’s is in increasing trend Days Sales Outstanding (DSO): DSO indicates the average length of time it takes the firm to collect its credit sales. It is also called the average collection period, is used to evaluate the firm’s ability to collect its credit sales in a timely manner. [pic] Figure-7: DSO of Aftab and Atlas for the years 2005-2009 Time Series Analysis: From the graph it’s been seen that initially low but then there were increasing trend in DSO but after 2007 it’s again starts to decrease which us a good sign that indicates that’s they are being more efficient in collecting its receivables. Cross-Section Analysis: Comparing with Aftab, Atlas has a very low collection period which means Atlas take less time to collect its receivable. ââ€" ª Debt-Management Efficiency Analysis: This ratio measures how effectively a firm is managing its debts. Debt Management ratios include analysis of two types of ratio: debt ratio and times interest earned ratio. Debt to Asset Ratio: It measures the percentage of the firm’s assets financed by creditors. [pic] Figure-8: Debt Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Debt ratio of Aftab is fluctuating trend. It has high debt ratios which indicate that they a high leveraged firm and since interest on debt enjoy tax advantage, this is evident in the gradual increment in EPS figures. This is good news for the investors. Cross-Section Analysis: Comparing with Aftab, Atlas has a very low debt ratio which indicates they have a long-term solvency and low risk but at the same time they don’t have much leverage power to generate more profit and enjoy the tax benefits. Times Interest Earned (TIE) Ratio: The TIE ratio measures the extent to which earnings before interest and taxes (EBIT), also called operating income, can decline before the firm is unable to meet its annual interest cost. Failure to meet this obligation can bring legal action by the firm’s creditor, possibly resulting in bankruptcy. It measures the ability of the firm to meet its annual interest payments [pic] Figure-09: TIE Ratios of Aftab and Atlas for the years 2005-2009 Time Series Analysis: TIE ratio of Aftab is very low which means it has low ability to meet its annual interest payments. Aftab is covering its interest charges by a low margin of safety. This affects the potentiality of raising further debt in future. Cross-Section Analysis: Compare to Atlas, Aftab has a very low TIE ratio which means Atlas has very high safety of margin to cover its interest payment. ââ€" ª Profitability Condition Analysis: A group of ratios showing the effect of liquidity, asset management, and debt management on operating results. Profitability is the net result of a number of policies and decisions. Profitability ration are of three types- Net profit margin on sales, Return on Asset (ROA) and Return on Equity (ROE). Net Profit Margin: This ratio measures how much the sales is contributing to the net profit of the company, which belongs to the shareholders. [pic] Figure-10: Net Profit Margin of Aftab and Atlas for the years 2005-2009 Time Series Analysis: Net Profit Margin of Aftab gradually decreased in the first three year then it started rising and continue to rise. This is a very good indication for the company and as well as the investors. This increasing trend in Aftab’s profit margin ratio will help to attract the investors. Cross-Section Analysis: from the figure we can see that initially Atlas net profit was higher than the Aftab but later on Aftab’s net profit gradually increased and Atlas’s started to decrease. This indicates that Aftab earning more than Atlas does. The decreasing trend in Atlas’s profit margin ratio will not help to attract the investors. Operating Profit Margin: [pic] Figure-11: Operating Profit Margin of Aftab and Atlas for the years 2005-2009 Time Series Analysis: From the graph we can see that Aftab’s operating profit is in increasing trend which is a good indication of the fact that Aftab is becoming more efficient is its operation thus it has been able to reduce the operating cost which enable for higher and increasing operating profits. Cross-Section Analysis: Comparing with Atlas, Aftab is doing well in terms of making operating profit and Afatb has an increasing trend in its operating profit margin whereas Atlas has a decreasing operating profit margin. Earnings Per Share (EPS): [pic] Figure-12: EPS of Aftab and Atlas for the years 2005-2009 Time Series Analysis: EPS of Aftab has a decreasing trend for the first three years and then it followed and increasing trend and a big jump in EPS in 2009. So Aftab is earning more per share of its then it was previously earned. Cross-Section Analysis: From the graph we can see that Aftab has higher EPS then Atlas. Thus Aftab will be able to attract more investors then Atlas as its earning more than Atlas for its per share. Return On Asset: [pic] Figure-13: ROA of Aftab and Atlas for the years 2005-2009 Time Series Analysis: From the table we can see that return on total asset of Aftab is decreasing from the very start period. But from 2007 it starts increasing and it’s a positive factor for the company and the investors’ as well Cross-Section Analysis: ROA ratio of Aftab is lower than Atlas all through the five years. Aftab has faced a severe downfall at 2007 which may be triggered by the high interest charges on its huge amount of debt. So, it is very poor compare to Atlas but its improving for the last three years. Return on Equity: ROE measures the rate of return on stockholder’s investment. [pic] Figure-14: ROE of Aftab and Atlas for the years 2005-2009 Time Series Analysis: From the table we can see that return on total equity of Aftab is decreasing from the very start period. But from 2007 it starts increasing and it’s a positive factor for the company and the investors’ as well. This improvement indicates firm’s improving liquidity position, efficient asset management and efficient use of high debt amount. Cross-Section Analysis: ROE ratio of Aftab is lower than Atlas all through the five years. Aftab has faced a severe downfall at 2007 which may be triggered by the high interest charges on its huge amount of debt. So, it is very poor compare to Atlas but its improving for the last three years. ââ€" ª Market Condition Analysis: The market value ratios represent a group of ratios that relates the firm’s stock price to its earnings and book value per share. These ratios give management an indication of what investors think of the company’s past performance and future prospect. If the firm’s liquidity, asset management, debt management, and profitability ratios are all good then market value ratios will be high which will lead to an increase in the stock price of the company. Market value ratio is of two types- Price/Earnings Ratio and Market/Book value Ratio. Market to Book Ratio: The ratio of a stock’s market price to its book value gives another suggestion of how investors regard the company. Companies with relatively high rates of return on equity generally sell at higher multiples of book value than those with low returns. [pic]Figure-15: M-B Ratio of Aftab and Atlas for the years 2005-2009 Time Series Analysis: It is noticeable that Aftab has an increasing trend in its M/B ratio after 2005 which is good indicator. This indicates investors are gaining confidence on Aftab’s share and are now ready to pay more for Aftab’s book value of its share. Cross-Section Analysis: Even though there are increasing trend in the M/B ratio of Aftab it is much lower than the Atlas’s. It indicates that Atlas is gaining more investor’s trust over the years then Aftab. This justifies the high riskiness of Aftab’s securities due to its huge debts. But its M/B is increasing which means investors are gaining the confidence which is a good indicator to compete with Atlas Price-Earnings Ratio: This is the ratio of the price per share to earnings per share. It shows the dollar amount investors will pay for $1 of current earnings. It is computed by market price per share and earnings per share (EPS). [pic] Figure-16: P/E Ratio of Aftab and Atlas for the years 2005-2009 Time Series Analysis: P/E ratio of Aftab was decreasing trend for the first two years then it experienced a rise in 2007 which indicates the firm’s high growth potential. After that it starts to decrease. This shows firm’s huge riskiness which we have already seen by its increasing debt financing and overall poor management and other ratios. This indicates that investors are now willing to pay less for 1taka of current earnings. Cross-Section Analysis: Aftab has a lower P/E ratio then Atlas but both the company has the same decreasing trend in its P/E ratio. So both the company is losing investors’ confidence and investors are now willing to pay less for 1taka of current earnings. Summary of all the Ratio Calculation: The calculation of the following ratios has been done following the particular formulas. In the Appendix section we have attached the calculation procedures in details. Aftab Automobiles Limited |Type of Ratios |2005 |2006 |2007 |2008 |2009 | |Liquidity Ratio | |Current Ratio |1.19 |1.39 |1.20 |1.20 |1.33 | |Quick Ratio |0.39 |0.83 |0.79 |0.78 |0.84 | |Cash Ratio |0.027 |0.014 |0.019 |0.020 |0.019 | |Asset-Management Efficiency Ratio | |Total Asset Turnover |1.03 |0.86 |0.65 |0.83 |0.87 | |Fixed Asset Turnover |5.00 |5.31 |2.95 |4.22 |4.86 | |Inventory Turnover |1.7 |2.0 |1.9 |2.7 |2.5 | |DSO |38.3 |135 |210 |178.2 |128 | |Debt Management Ratio | |Debt-Asset Ratio |68.13 |61.22 |66.09 |72.23 |62.87 | |Time Interest Earned |2.5 |2.7 |2.0 |2.6 |2.4 | |Profitability Ratio | |Net Profit Margin |3.38 |3.03 |2.33 |3.10 |14.90 | |Operating Profit |6.19 |6.17 |6.37 |6.95 |10.30 | |Earnings per Share |28.58 |27.91 |18.06 |24.76 |136.50 | |Return on Assets |3.5 |2.6 |1.5 |2.6 |13.0 | |Return on Equity |11.0 |6.7 |4.4 |9.2 |35.0 | |Market Ratio | |Price Earning Ratio |14.8 |10.9 |20.3 |15.8 |11.6 | |Market/Book Ratio |1.62 |0.73 |0.90 |1.46 |4.07 | Atlas Bangladesh Limited |Type of Ratios |2005 |2006 |2007 |2008 |2009 | |Liquidity Ratio | |Current Ratio |2.46 |2.45 |2.55 |2.12 |1.86 | |Quick Ratio |2.07 |1.82 |1.86 |1.33 |1.11 | |Cash Ratio |1.08 |0.77 |0.94 |0.55 |0.40 | |Asset-Management Efficiency Ratio | |Total Asset Turnover |2.22 |2.53 |2.73 |3.34 |3.31 | |Fixed Asset Turnover |114.72 |121.53 |111.04 |170.57 |237.08 | |Inventory Turnover |11.0 |12.1 |10.0 |10.6 |9.4 | |DSO |4.08 |6.20 |2.87 |2.16 |3.32 | |Debt Management Ratio | |Debt-Asset Ratio |46.50 |46.59 |44.46 |51.69 |56.85 | |Time Interest Earned |1510.2 |539.6 |3477.4 |363.4 |827.3 | |Profitability Ratio | |Net Profit Margin |4.60 |3.84 |4.69 |3.21 |5.22 | |Operating Profit |4.73 |5.93 |3.95 |6.94 |4.73 | |Earnings per Share |17.33 |11.97 |12.63 |9.69 |22.39 | |Return on Assets |10.2 |9.7 |12.8 |10.7 |17.3 | |Return on Equity |19.1 |18.2 |23.0 |22.2 |40.0 | |Market Ratio | |Price Earning Ratio |19.5 |16.8 |24.4 |37.7 |21.3 | |Market/Book Ratio |3.72 |3.06 |5.62 |8.37 |8.54 | Chapter 3 Enquiry into Stock Price Movement In this chapter we will consider only the stock price movement of the year 2005-2009. Daily stock price is affected due to various factors that can be a macroeconomic variable as well as company specific variable. But in this section we will consider only the corporate decision factors. Variables can be some the following ones: 1. Dividend declaration 2. AGM Share Price Movement for the year of 2009: Figure-17: Stock Price fluctuation of Aftab for the year 2009 Comment: We can see that the price of Aftab Auto rose continuously throughout the year till the middle of May. DSE inquiry tells us that there was no sensitive price information that was undisclosed for the price hike that we see. Then there were drop in the stock price but after that we can see a significant rise from around beginning of the September. We can only conclude that dividend declaration on 31st August may contribute to this price hike. Again after the AGM took place in 6th December, the stock price started to fall. But at the end of the year, the company experienced a slight increase in the share price. Calculation of Beta: Average Market return (RM) = 1.884658331 Covariance (Ri,RM) = 0.00543901 Variance = 0.01175511849 ÃŽ ²i = 0.462692922 Comment: Beta measures the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. As beta of Aftab Auto is less than 1 that is 0.463 which means that the security will be less volatile than the market. Dividend declaration & Stock Price Movement: We will now take a functional approach to the matter of dividend declaration for the year. We have taken the dividend declaration on 31/08/2009 an important factor which affected the stock price during that period. A regression analysis is done using dummy variable. The regression output summary follows: SUMMARY OUTPUT OF REGRESSION |R Square |0.549260989 | | | |Cost of Capital |15% | | | |Year |10 | | | |Investment | |1,500,000,000.00 | | |Quantity |200 | |200.00 | |Price |10,000,000.00 | |10,000,000.00 | |Revenue | | |2,000,000,000.00 | |VC |70% | |1,400,000,000.00 | |FC |3.50% | |70,000,000.00 | |Depreciation | | |150,000,000.00 | |EBIT | | |380,000,000.00 | |Tax |27.50% | |104,500,000.00 | |Net Income | | |275,500,000.00 | |Cash flow | | |425,500,000.00 | So, project NPV at 2010 is, NPV2010 = -1,500,000,000 + (425,500,000.00 X PVIFAn=10, i=15%) NPV2010 = -1,500,000,000 + 425,500,000.00 * 5.018768626 = 635,486,050.36 Taka So the NPV of the Project is 635,486,050.36 Taka which is positive. So the company may go for this project based on the assumptions we took to calculate the NPV. Sensitivity Analysis: Now we would like to test the sensitivity of NPV to various inputs of the project. Because we need to know what happens to NPV if some inputs change. This helps give us better understanding of the projects situation to sustain the NPV. |Particulars |Amount in Taka |Amount in Taka |Change | |Revenue |2,000,000,000.00 |1,600,000,000.00 |(0.20) | |VC |1,400,000,000.00 |1,120,000,000.00 |(0.20) | |FC |70,000,000.00 |70,000,000.00 |- | |Depreciation |150,000,000.00 |150,000,000.00 |- | |EBIT |380,000,000.00 |260,000,000.00 |(0.32) | |Tax |104,500,000.00 |71,500,000.00 |(0.32) | |Net Income |275,500,000.00 |188,500,000.00 |(0.32) | |Cash flow |425,500,000.00 |338,500,000.00 |(0.20) | |NPV |635,486,050.36 |198,853,179.90 |(0.69) | |Relative Change | | |3.44 | Here we see that, %∆in Revenue= -20% %∆in NPV = -69% And Relative Change = 3.44 So from the above analysis we can see that NPV is very sensitive to change in revenue. For 20% decrease of Revenue, NPV is decreased by 69%. Besides that, 1% change of revenue; NPV is changed for 3.44%. New Share Price with the project: New share price= (current capitalization + NPV of the project) / shares outstanding = (market price per share on the last day of 2009 * shares outstanding +NPV) / shares outstanding = (2,048.75 * 2,319,570+ 635,486,050.36) / 2,319,570 = 2,322.72 Taka/ share Scenario Analysis For scenario analysis we took three cases 1. Pessimistic 2. Expected 3. Optimistic situation We will assume that only sales are taken for the scenario analysis. The whole income statement is vertical size statement. Then after calculating the NPV for three scenarios of sales we will find the share price. We took that in pessimistic scenario sales will drop by 20% and in optimistic scenario sales will increase by 20%. |Particulars |Pessimistic |Normal |Optimistic | |Quantity |160.00 |200.00 |240.00 | |Price |10,000,000.00 |10,000,000.00 |10,000,000.00 | |Revenue |1,600,000,000.00 |2,000,000,000.00 |2,400,000,000.00 | |VC |1,120,000,000.00 |1,400,000,000.00 |1,680,000,000.00 | |FC |70,000,000.00 |70,000,000.00 |70,000,000.00 | |Depreciation |150,000,000.00 |150,000,000.00 |150,000,000.00 | |EBIT |260,000,000.00 |380,000,000.00 |500,000,000.00 | |Tax |71,500,000.00 |104,500,000.00 |137,500,000.00 | |Net Income |188,500,000.00 |275,500,000.00 |362,500,000.00 | |Cash flow |338,500,000.00 |425,500,000.00 |512,500,000.00 | |NPV |198,853,179.90 |635,486,050.36 |1,072,118,920.83 | Now we can calculate the future stock price for these three scenarios using the new share price finding process shown earlier in this chapter. |Description |Pessimistic |Normal |Optimistic | |MKT Price |2,048.75 |2,048.75 |2,048.75 | |No. Of Share Outstanding |2,319,570.00 |2,319,570.00 |2,319,570.00 | |Current Capitalization (A) |4,752,219,037.50 |4,752,219,037.50 |4,752,219,037.50 | |NPV (B) |198,853,179.90 |635,486,050.36 |1,072,118,920.83 | |(A + B) |4,951,072,217.40 |5,387,705,087.86 |5,824,337,958.33 | |New Share Price With Project |2,134.48 |2,322.72 |2,510.96 | We can see that according to NPV the future market price of the company changes. Breakeven Quantity Based on NPV: |PVIFAn=10, i=15% |5.019 | |Initial Investment |1,500,000,000.000 | |EAC |298,878,093.768 | |Fixed Cost |70,000,000.000 | |VC |7,000,000.000 | |Price |10,000,000.000 | |Tax |0.275 | |1-Tc |0.725 | |Depreciation |150,000,000.000 | |After Tax Fixed Charge |308,378,093.768 | |After Tax Contribution |2,175,000.000 | |BEP Quantity |141.783 | |Particulars |Year (2011-2021) | |Investment |1,500,000,000.000 | |Quantity |141.78 | |Price |10,000,000.00 | |Revenue |1,417,830,316.17 | |VC |992,481,221.32 | |FC |70,000,000.00 | |Depreciation |150,000,000.00 | |EBIT |205,349,094.85 | |Tax |56,471,001.08 | |Net Income |148,878,093.77 | |Cash flow |298,878,093.77 | So, project NPV at 2010 is, NPV2010 = -1,500,000,000 +(298,878,093.77 X PVIFAn=10, i=15%) NPV = -1,500,000,000 + 298,878,093.77 * 5.018768626 = 0.00 Taka. Breakeven Price Based on NPV: |Particulars |Amount in Taka | |Revenue | 1,825,349,094.85 | | VC | 1,400,000,000.00 | | FC | 70,000,000.00 | | Depreciation | 150,000,000.00 | | EBIT | 205,349,094.85 | | Tax | 56,471,001.08 | | Net Income | 148,878,093.77 | | Cash flow | 298,878,093.77 | We know, Revenue = Price X Quantity Price = Revenue / Quantity Price = 1,825,349,094.85 / 200 Break-Even Price = 9,126,745.47 Chapter 5 Prospective Analysis With the different factors positively contribute to the growth of the stock price of Aftab Automobiles, we have analyzed the trend of different variables from the five year financial statement and detected the growth or reduction of every item. After that we have selected few components which show a growing trend and positively contribute to the growth of Stock Price. As we found that for Aftab Automobiles ltd, Market price movement is mostly similar with company’s financial performance as like sales growth & profit growth. |Growth Rates (%) |2009-2008 |2008-2007 |2007-2006 |2006-2005 |GEOMEAN | |Sales |14.74% |41.81% |-15.92% |8.95% |17.67% | |Net Profit/Loss |28.96% |88.45% |-35.28% |-2.36% |50.61% | |Operating Profit/Loss |69.27% |26.14% |47.34% |7.64% |28.45% | |EBIT |58.21% |81.95% |-29.43% |11.35% |37.83% | From the income statement we can concentrate on growth rates of sales revenue, operating profit, EBT and Net income. We are concentrating on average of last 4 years growth performance. From here we will use average sales growth of 17.67% for forecasting future market price. As growth rate of operating profit, EBT and Net income is close in figure, we are going to use average net income growth of 50.61% for forecast the market price trend. As the world economy is experiencing the recession and the impact of recession is also started affecting our economy, so it will be a highly optimistic choice if we expect that the company will grow at the rate of 17.67% or 50.61%. On the other hand, the other growth rates that have been calculated also give us the indication that we cannot consider them as company growth rate given GDP growth of Bangladesh is 5.5% and world economy is in recession. We can assume that average growth rate for forecasting the share price & value of the company. Growth Rate: Scenario -1 Assuming growth rate of 17.67% as average of last 4 years growth of Sales | |Current |5 Year Projection | |Year |2009 |2010 |2011 |2012 |2013 |2014 | |Growth Rate | |17.67% |17.67% |17.67% |17.67% |17.67% | |Sales |2,124,637,706 |2,500,061,189 |2,941,822,001 |3,461,641,948 |4,073,314,080 |4,793,068,678 | |Net Income |316,616,692 |372,562,861 |438,394,719 |515,859,066 |607,011,363 |714,270,271 | |Dividend |47,570,900 |55,976,678 |65,867,757 |77,506,590 |91,202,004 |107,317,398 | |Addition to Retain Earnings|269,045,792 |316,586,183 |372,526,962 |438,352,476 |515,809,359 |606,952,873 | |Total Asset |2,438,883,896 |2,869,834,680 |3,376,934,468 |3,973,638,789 |4,675,780,763 |5,501,991,224 | |Total Debt |1,533,364,403 |1,804,309,893 |2,123,131,451 |2,498,288,779 |2,939,736,406 |3,459,187,829 | |Common Stock |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 | |Retained Earnings |316,270,028 |632,856,211 |1,005,383,174 |1,443,735,650 |1,959,545,009 |2,566,497,881 | |Total Financing |2,438,883,896 |3,026,415,569 |3,717,764,090 |4,531,27 3,893 |5,488,530,879 |6,614,935,175 | |Funds Needed |- |(156,580,889) |(340,829,621) |(557,635,104) |(812,750,116) |(1,112,943,951) | |Debt: Equity Ratio |1.69 |1.48 |1.33 |1.23 |1.15 |1.10 | |Sustainable Growth Rate |42.27% |34.96% |30.48% |27.49% |25.37% |23.81% | |EPS |136.50 |160.62 |189.00 |222.39 |261.69 |307.93 | |Price |2,048.75 |2,410.76 |2,836.75 |3,338.00 |3,927.82 |4,621.87 | Assuming 17.67% growth rate, it has been found that the company has excess fund, which can be financed distributed to payoff long term debt and reduce the obligations of interest expenses. The projection says that assuming 17.67% growth rate, after 5 years in 2014 EPS of the company would be 307.93 as well as considering current P/E ratio as constant factor, in year 2014 share price would be Taka 4,621.87. Growth Rate: Scenario -2 Assuming growth rate of 50.61% as average of last 4 years growth of Net income | |Current |5 Year Projection | |Year |2009 |2010 |2011 |2012 |2013 |2014 | |Growth Rate | |50.61% |50.61% |50.61% |50.61% |50.61% | |Sales |2,124,637,706 |3,199,916,849 |4,819,394,766 |7,258,490,458 |10,932,012,478 |16,464,703,993 | |Net Income |316,616,692 |476,856,400 |718,193,424 |1,081,671,116 |1,629,104,867 |2,453,594,840 | |Dividend |47,570,900 |71,646,532 |107,906,843 |162,518,496 |244,769,106 |368,646,751 | |Addition to Retain Earnings |269,045,792 |405,209,867 |610,286,581 |919,152,620 |1,384,335,761 |2,084,948,089 | |Total Asset |2,438,883,896 |3,673,203,036 |5,532,211,092 |8,332,063,126 |12,548,920,274 |18,899,928,825 | |Total Debt |1,533,364,403 |2,309,400,127 |3,478,187,532 |5,238,498,242 |7,889,702,202 |11,882,680,486 | |Common Stock |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 | |Retained Earnings |316,270,028 |721,479,895 |1,331,766,477 |2,250,919,096 |3,635,254,857 |5,720,202,947 | |Total Financing |2,438,883,896 |3,620,129,488 |5,399,203,473 |8,078,666,803 |12,114,206,524 |18,192,132,898 | |Funds Needed |- |53,073,548 |133,007,619 |253,396,323 |434,713,750 |707,795,927 | |Debt: Equity Ratio |1.69 |1.76 |1.81 |1.84 |1.87 |1.88 | |Sustainable Growth Rate |42.27% |44.75% |46.56% |47.85% |48.74% |49.35% | |Price |2,048.75 |3,085.62 |4,647.26 |6,999.23 |10,541.54 |15,876.62 | Assuming 50.61% growth rate, it has been found that the company required additional fund to run to sustain the business in this growth rate. The projection says that assuming 50.61% growth rate, after 5 years in 2014 EPS of the company would be 1057.78 as well as considering current P/E ratio as constant factor, in year 2014 share price would be Taka 15,876.62. Growth Rate: Scenario -3 Assuming growth rate of 42.27% as sustainable growth rate Sustainable Growth Rate = [pic] = [pic] = 42.27% | |Current |5 Year Projection | |Year |2009 |2010 |2011 |2012 |2013 |2014 | |Growth Rate | |42.27% |42.27% |42.27% |42.27% |42.27% | |Sales |2,124,637,706 |3,022,749,966 |4,300,506,074 |6,118,386,469 |8,704,708,779 |12,384,303,496 | |Net Income |316,616,692 |450,454,726 |640,867,854 |911,771,112 |1,297,188,735 |1,845,527,449 | |Dividend |47,570,900 |67,679,744 |96,288,861 |136,991,427 |194,899,502 |277,286,081 | |Addition to Retain Earnings |269,045,792 |382,774,982 |544,578,993 |774,779,685 |1,102,289,233 |1,568,241,368 | |Total Asset |2,438,883,896 |3,469,832,148 |4,936,575,765 |7,023,331,171 |9,992,185,492 |14,216,013,523 | |Total Debt |1,533,364,403 |2,181,537,673 |3,103,702,297 |4,415,678,018 |6,282,243,106 |8,937,829,769 | |Common Stock |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 | |Retained Earnings |316,270,028 |699,045,010 |1,243,624,003 |2,018,403,688 |3,120,692,921 |4,688,934,289 | |Total Financing |2,438,883,896 |3,469,832,148 |4,936,575, 765 |7,023,331,171 |9,992,185,492 |14,216,013,523 | |Funds Needed |- |- |- |- |- |- | |Debt: Equity Ratio |1.69 |1.69 |1.69 |1.69 |1.69 |1.69 | |Sustainable Growth Rate |42.27% |42.27% |42.27% |42.27% |42.27% |42.27% | |EPS |136.50 |194.20 |276.29 |393.08 |559.24 |795.63 | |Price |2,048.75 |2,914.78 |4,146.90 |5,899.85 |8,393.79 |11,941.96 | Assuming 42.27% growth rate, it has been found that the company has no excess fund or no deficit. The projection says that assuming 42.27% growth rate, after 5 years in 2014 EPS of the company would be 795.63 as well as considering current P/E ratio as constant factor, in year 2013 share price would be Taka 11,941.96. Growth Rate: Scenario -4 Assuming growth rate of 5.5% as GDP growth rate | |Current |5 Year Projection | |Year |2009 |2010 |2011 |2012 |2013 |2014 | |Growth Rate | |5.50% |5.50% |5.50% |5.50% |5.50% | |Sales |2,124,637,706 |2,241,492,780 |2,364,774,883 |2,494,837,501 |2,632,053,564 |2,776,816,510 | |Net Income |316,616,692 |334,030,610 |352,402,294 |371,784,420 |392,232,563 |413,805,354 | |Dividend |47,570,900 |50,187,300 |52,947,601 |55,859,719 |58,932,004 |62,173,264 | |Addition to Retain |269,045,792 |283,843,311 |299,454,693 |315,924,701 |333,300,559 |351,632,090 | |Earnings | | | | | | | |Total Asset |2,438,883,896 |2,573,022,510 |2,714,538,748 |2,863,838,380 |3,021,349,490 |3,187,523,712 | |Total Debt |1,533,364,403 |1,617,699,445 |1,706,672,915 |1,800,539,925 |1,899,569,621 |2,004,045,950 | |Common Stock |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 |589,249,465 | |Retained Earnings |316,270,028 |600,113,339 |899,568,031 |1,215,492,732 |1,548,793,291 |1,900,425,381 | |Total Financing |2,438,883,896 |2,807,062,249 |3,195,490,411 |3,605,282,122 |4,037,612,377 |4,493,720,796 | |Funds Needed |- |(234,039,738) |(480,951,663) |(741,443,742) |(1,016,262,887) |(1,306,197,084) | |Debt: Equity Ratio |1.69 |1.36 |1.15 |1.00 |0.89 |0.80 | |Sustainable Growth Rate |42% |31% |25% |21% |18% |16% | |EPS |136.50 |144.01 |151.93 |160.28 |169.10 |178.40 | |Price |2,048.75 |2,161.43 |2,280.31 |2,405.73 |2,538.04 |2,677.63 | Assuming realistic one 5.5% growth rate, it has been found that the company has excess fund, which can be financed distributed to payoff long term debt and reduce the obligations of interest expenses. The projection says that assuming 5.5% growth rate, after 5 years in 2014 EPS of the company would be 178.40 as well as considering current P/E ratio as constant factor, in year 2014 share price would be taka 2,677.63. Calculating Expected Return of Aftab Auto using CAPM: The general idea behind CAPM is that investors need to be compensated in two ways: time value of money and risk. The time value of money is represented by the risk-free (Rf) rate in the formula and compensates the investors for placing money in any investment over a period of time. The other half of the formula represents risk and calculates the amount of compensation the investor needs for taking on additional risk or risk premium. This is calculated by taking a risk measure (beta) that compares the returns of the asset to the market over a period of time and to the market premium (Rm-Rf). [pic] [pic] = 7.25% + 0.463 (1.88% – 7.25%) [pic] = 4.915% We have determined market return Rm for year 2009 taking the monthly change in DSE Index. The average market return in 2009 has been found to be 1.88% and beta for the company is 0.46. If we post all the values in the above equation (considering Rf=7.5) we get the expected return [pic] to be 4.915%. This is lower than the risk free rate. This is the outcome of low market return. As such the expected return derived from CAPM can not be used for stock valuation. Future Stock Price Valuation under Gordon Model : In this section we shall make a projection of market stock price of Aftab Auto. It has a security specific beta risk of 0.46 and the expected return for the company is 4.915%. But the expected return 4.915% is based on market return 1.88%. This phenomenon may be due to the fact that in 2009 due to the political situation & anti corruption activity of the government, a lot of money has been invested in DSE. As a result the price of stocks increased. It is vivid from the below graph. [pic]Figure-20: DSE General Index for the 2009 As the Expected Return derived from CAPM is too low (4.915%), we shall use another formula for expected rate of return. ks=(D1/P0)+g Growth rate, g=Retention Rate*ROE Retention Rate = 0.85g= (0.85*0.35) =29.71% ROE = 35% D1= D0 (1+g) =20.51*1.2975=26.50 ks = (26.61/ 2048.75)+0.2975 = 31.01% From this formula we get the Expected Return (ks) 31.01%. Using the above information we can forecast expected stock value for Aftab Auto using the Gordon Model (Dividend Valuation Model). We assume that dividends will grow at a constant rate, g, forever. Since future cash flows grow at a constant rate forever, the value of a constant growth stock is the present value of a growing perpetuity: [pic]Where, [pic] We assume g=29.71% & k=37.12%. From all the above information we can forecast the future stock price for 2009. So the stock price for 1st January, 2010 would be BDT 459.64 But the real average stock price for first three months in 2010 was BDT 298.43. The average stock price is 54% lower than our forecasted price. This indicates the price of Aftab share is undervalued in the market. The explanation for lower market price may be due to decreasing trend in the General Index in 2010. Fig-21: DSE General Index in 2010 |Year |Dividend |Projected Price of Stock(using Gordon Model) | |2009 (Actual) |Do |20.51 |2,048.75 | |2010 (projected) |D1 |26.60388 |2048.75 | |2011 (projected) |D2 |34.50836 |2657.469714 | |2012 (projected) |D3 |44.76141 |3447.050776 | |2013 (projected) |D4 |58.06081 |4471.230282 | |2014 (projected) |D5 |75.3117 |5799.711558 | |2015 (Projected) |D6 |97.68813 | | Future Market Price projection in different growth Rate: [pic] |Growth Rate |2006 |2007 | |Sales |2,124,637,706 |2,500,061,189 | |Cost |1,808,021,014 |2,127,498,327 | |Net Income |316,616,692 |372,562,861.48 | |Asset |2,438,883,896 |2,869,834,680.42 | |Debt |1,533,364,403 |1,804,309,893.01 | |Equity |905,519,493.00 |1,065,524,787.41 | |Total |2,438,883,896.00 |2,869,834,680.42 | |Debt : Equity Ratio |1.69 |1.69 | Here the plug variable is Dividend distribution of taka 212,557,567 and thus the Debt : Equity ratio becomes unchanged. Scenario 2: |Particulars |2,009.00 |17.67% Growth Rate | |Sales |2,124,637,706 |2,500,061,189 | |Cost |1,808,021,014 |2,127,498,327 | |Net Income |316,616,692 |372,562,861.48 | |Asset |2,438,883,896 |2,869,834,680.42 | |Debt |1,533,364,403 |1,591,752,325.95 | |Equity |905,519,493.00 |1,278,082,354.48 | |Total |2,438,883,896.00 |2,869,834,680.42 | |Debt:Equity Ratio |1.69 |1.25 | In this case, no Dividend is paid. So Equity increases for the Net income and thus Debt goes down. So in this case, plug variable is the Debt: Equity ratio. Scenario Analysis: In this case study, the growth rate of 5.5% has been selected as the constant growth rate and the pro forma statement has been generated based on this growth rate. For scenario analysis, both optimistic and pessimistic scenarios are being considered. | |Current |Scenario Analysis of 2009 Pro-forma | |Year |2009 |Pessimistic |Normal |Optimistic | |Growth Rate | |2.50% |5.50% |8.50% | |Sales |2,124,637,706 |2,177,753,649 |2,241,492,780 |2,305,231,911 | |Net Income |316,616,692 |324,532,109 |334,030,610 |343,529,111 | |Dividend |47,570,900 |48,760,173 |50,187,300 |51,614,427 | |Addition to Retain Earnings |269,045,792 |275,771,937 |283,843,311 |291,914,684 | |Total Asset |2,438,883,896 |2,499,855,993 |2,573,022,510 |2,646,189,027 | |Total Debt |1,533,364,403 |1,571,698,513 |1,617,699,445 |1,663,700,377 | |Common Stock |589,249,465 |589,249,465 |589,249,465 |589,249,465 | |Retained Earnings |316,270,028 |592,041,965 |600,113,339 |608,184,712 | |Total Financing |2,438,883,896 |2,752,989,943 |2,807,062,249 |2,861,134,555 | |Funds Needed |- |(253,133,949) |(234,039,738) |(214,945,527) | |Debt: Equity Ratio |1.69 |1.33 |1.36 |1.39 | |Sustainable Growth Rate |42.27% |30.45% |31.35% |32.24% | |EPS |136.50 |139.91 |144.01 |148.10 | |Price |2,048.75 |2,099.97 |2,161.43 |2,222.89 | In the above scenario analysis, we have taken the 5.5% growth rate in normal situation. If we want to be optimistic enough to predict that the economy will have a high growth and the company will also able to grow at 8.50%. On the other hand, the situation can also be worse enough to have a growth lower than the normal and the company may face a growth of 2.50%. After analyzing the scenario of different situation we can say that the projected growth rate is appropriate for the company which will help the company to operate in the market even if the situation is worse. It gives a positive indication towards the company and increases the shareholders confidence to invest in the company’s share. Chapter 6 Findings & Conclusion: At the end we can say that, in year 2009, we see that the Market price is much higher then the Book Value of each share. Investors are willing to pay more than the book value of each share. The major reasons of the higher market value are the underestimation of the assets, as the assets are calculated based on the purchase price; not on the basis of the market price. Besides that investment to the other shares are also calculated on the purchase price. But the market price is also higher. Moreover, Aftab Automobiles ltd enjoys a better reputation on the market. So the Intangible assets like, Patent, Trade mark should be considered. So we can say that the company’s financial position is good. Based on market price if we re-construct the balance sheet, we have to introduce ‘Goodwill’ as intangible asset for Aftab Auto. This goodwill basically shows the confidence of the shareholders & investors on Aftab Auto backed by some positive news. Overall we see that the Sales of the company are increasing which is a good sign. Besides that the company is investing heavily on the fixed assets,  which may used to generate more revenue for the company. They are also offering cash dividend each year and also the company paid its short term load and also taking short term loans, which indicates that the company is enjoying a favorable environment in terms of the short term credit situation. So, we can conclude that the Aftab Automobiles Ltd is financially sound based on the Cash Flow analysis. Profit margin, operating profit, EPS, market-book value of the Aftab is increasing which indicates that the company is becoming more efficient in terms of its operations and also gaining investors confidence. So we can say that after experiencing some downfall Aftab Auto is now experiencing efficiency in its performance and also investors’ confidence. From the cash flow statement we can see that, in 2006, 2007 & 2009 the free cash flow figures are negative. This might happen because of high investment in inventory and R&D departments, means the company used more cash than they had sourced of. . Also the cash flows to Investors were sufficient for the company over the years. The company had sufficient fund to pay out dividends and that would eventually maximize the value of the firm. Fixed investments were consistent and consumed huge cash over the years. Using dummy variable to find effects of Dividend declaration was a success in 2009. We have seen that dividend declaration had a significant effect on the share price of Aftab Auto in the year 2009. Price fluctuated after the dividend was declared. Price increased significantly after the dividend was declared. Using dummy variable to find effects of AGM on Stock Price was a success in 2009. We have seen that AGM declaration also had a significant effect on the share price of Aftab Auto in the year 2009. Price fluctuated after the AGM took place. Price fell enormously after the AGM. We assumed a hypothetical situation of capital investment for Aftab Auto. The project turned out to have a positive NPV of 635,486,050.36 Taka. So it’s a project that adds value to the company. Incorporating the value of the project in the share price result is a share price of 2322.72 taka. This is higher than the market price of 2048.75 taka in the last trading day of 2009. This shows that the project adds value to the wealth of the shareholders. From the sensitivity analysis, we can see that NPV is very sensitive to change in revenue. For 20% decrease of Revenue, NPV is decreased by 69%. Besides that, 1% change of revenue; NPV is changed for 3.44%. The scenario analysis shows that under pessimistic scenario of sales variable NPV becomes 198,853,179.90 taka and the future share price becomes 2134.48 taka. And optimistic scenario of sales variable results in a NPV of 1,072,118,920.83 taka and future price of share becomes 2510.96 taka. This shows how changes in sales in different situation can affect the project, its NPV and the future market price per share. But in this case it is satisfactory that sales change doesn’t affect the share price of the company to a great extent. This can mean that the company has a diversified way to do their business that a single project is not that much strong to affect the company’s price per share. Break-Even Quantity for the new investment is 142 units if the selling price is 10,000,000 per unit. On the other hand, Break-Even Price is 9,126,745.47 if the selling quantity is 200 units. In projecting future market price, assuming realistic one 5.5% growth rate, it has been found that the company has excess fund, which can be financed distributed to payoff long term debt and reduce the obligations of interest expenses. The projection says that assuming 5.5% growth rate, after 5 years in 2014 EPS of the company would be 144.01 as well as considering current P/E ratio as constant factor, in year 2013 share price would be 2,677.63 Initially we assumed many growth variables, but considering current world wide economic condition, Bangladesh GDP growth rate of 5.5% as an assumption would be most appropriate, as due to recession period it would be very optimistic to assume higher growth rate