Monday, January 27, 2020

Profitability of going green

Profitability of going green Green Environment Analysis Financial planning and financial analysis are some of the major aspects on which the entire capability of an organization depends upon. When it comes to organizations, then the name of net productivity and efficacy are some of the major things that stride under its capability and effectiveness. Increasing the shareholder’s net with the help of effective and timely decisions is an important aspect from the viewpoint of an organization and organizations always required to have effective economic decision on the basis of different information. Finance is a broad field which has the tendency and capability to analyze the effectiveness of the financials of an organization and the tools which used to assess the same. Financial analysis is one of those tools which is used for the same purpose in a market. The main theme of this section is the continuation of the same project which is of Waste Management and Going Green. As the company is new one, hence most of the answers are on the assumption basis. We will analyze the firm from different angles, like, profitability, market share, asset management and liquidity and all of these sections are important to cover in this particular analysis. We have considered the company of Waste Management in which we are trying to save the earth by Going Green. The name of our company is Green Environment and it is a hypothetical company. The idea of the project is new as well as effective and there are certain aspects and risks which will affect the business from different viewpoints. There are two different types of risk which is associated with our project which are systematic risk and unsystematic risk. Systematic risk is the one that could not be diversified while unsystematic risk could be diversifying accordingly. The systematic risk which we will be facing in our project is the high regulations of the government and other international governmental organizations that will use different amount of regulations on our projects and we have to comply with them accordingly and effectively at the same time. There is a need to get sufficient support from the government and central bank related to this particular stance, like government initiation to increase the financial aspect of the company would be effective for the company in future. On the other hand, there are unsystematic risks as well that associated specifically with the company which are investment concerns and high competition. The company can diversify their portfolios of products as well as investment securities by diversifying their portfolio and investing in different securities to get the desired result, while competition could be resolved by decreasing the price recognition of the company accordingly and become economically active an d prosper. Part-2 Financial Ratio Analysis There are two different parts of this particular analysis which is required in this section of the report, which is economic analysis in which different risk factors both systematic and unsystematic would have been analyzed accordingly along with the analysis of the financial capability of the company. There are number of ratios which could be used for the same purpose. Financial forecast has been done on the basis of the years from 2014 to 2018 and all of the currencies are in Arab Emirati Dirham (AED). Profitability Analysis Every organization strives hard for profitability and maximizing the net worth of an organization. It is always required to have sufficient actions and activities from which the profitability of an organization could be enhanced accordingly and effectively at the same time. With the help of profitability analysis, organizations can get apprehension over their effectiveness in particular. There are two different ratios that used to come under the same ambit with the names of Net Profit Margin (NPM) and Gross Profit Margin (GPM) and both of these ratios are essential for the sake of an organization as far as increasing their financial capability is concerned from different slants. Net Profit Margin (NPM) Net profit margin is an important measurement of financials used by the analyst of an organization. It is one of the most important and widely used tools used by the organizations to analyze that how much net profit earned by a company on the basis of its net sales. Net worth and capability of an organization would have been analyzed considerably with the help of this particular ratio. The NPM of the selected company for five forecasted years is mentioned below From this above mentioned analysis, it is found that the NPM of the selected company will lie in a remarkable range which can be analyzed from the above mentioned table and graph. The NPM of the selected company was 62.5% in the financial year (FY) 2014 which increased and then decreased with similar percentages of 4.17 for years 2015 and 2016 respectively. The NPM of Green Environment will increased for two consecutive years by 4.17% and 8.33% in the years 2017 and 2018 respectively showing the capability of the company to increase its financial belongings. The average NPM of the selected company is 66.67%, showing that the company has the ability to generate AED 66.67 from the net sales of AED 100. Gross Profit Margin (GPM) Likewise NPM, Gross Profit Margin (GPM) is yet another important ratio that comes under the ambit of profitability analysis. This particular ratio diverse that how much gross profit earned by the company on the basis of its net sales. With the help of this particular ratio, an analyst can analyze the effectiveness of managing the cost of the company accordingly. The lower the cost, the higher will be the gross profit of the company. The GPM of the selected company for the next five years is mentioned below It is clear from the above mentioned table and chart that the GPM of the selected company is quite high and effective which is an evidence that the company has the capability to increase its financial belongings accordingly and effectively at the same time. The GPM of Green Environment will be 75% of its sales in the year 2014, which increased to a level of 83.3% in the year 2015, showing an increase of 8.33% as compared to the same period of last year. An increment of 4.17% and 2.08% has been envisaged in the financial years (FY) 2017 and 2018 respectively. The average GPM of the company is 80.25% for five forecasted years, which is quite high and effective as well for the company showing that the company has the power to mitigate its direct cost and increase its financial belongings accordingly. Asset Management of Efficiency Ratio Asset Management Ratios also known as Efficiency Ratios are some of the effective ratios that used to analyze the capability and ability of an organization as far as managing its operational assets accordingly. The higher the asset management ratio’s amount, the higher will be the chance for the company to have high inclination towards the analysis. There are two different ratios which could be used for the same purpose, with the name of Return on Assets (ROA) and Return on Equity (ROE). Return on Assets (ROA) Analysis Return on Assets (ROA) is a measurement or financial tool used to assess the capability of an organization as far as managing its operational assets are concerned. It is one of the most important ratios that used to assess the profitability of an organization in terms of utilizing its assets accordingly. The computed ROA of the company is mentioned below The above analysis is showing clearly that tendency and ability of the company as far as utilizing its operational assets effectively. From the analysis, it is clear that the ROA of the selected company in the year 2014 will be 31.25% and it increased by 16.37% in the year 2015. The ROA of the company has the capability to increase accordingly each year with regular and effective percentages, like it increased by 8.14% and 13.95% respectively for years (FYs) 2017 and 2018 respectively. The average ROA of the selected company is 44.21%, which is quite high and effective and the company should grow accordingly on the basis of these high amount of ROA in particular. Return on Equity Analysis An analytical tool which is used to analyze how much effective and organization in terms of utilizing its net equity is known as Return on Equity (ROE). It is one of the most important tools that come under the ambit of financial analysis used by the analyst to increase their investment return. The computed ROE of Green Environment is mentioned below Table and graph mentioned above is showing the tendency of the company in terms of utilizing its equity accordingly. The ROE of the selected company was 25% in the year 2014 which increased by 8.33% in the year 2015 and then decreased by 208 basis points in the year 2016. The ROE of Green Environment increased for two consecutive years by 7.97% and 3.64% for years (FYs) 2017 and 2018 respectively which is quite high. The average ROE of the company is 34.33%, showing that the company is able to generate 34.33 AED from its net Equity amounting to 100 AED. Liquidity Ratio Analysis Liquidity Ratio Analysis (LRA) is one of the most important ratios that come under the ambit of Liquidity Analysis and the ratio which is used for the same purpose is Current Ratio (CR). Current Ratio Analysis Current Ratio is an important ratio that comes under the ambit of Liquidity Analysis. It is a ratio that used to assess the capability of an organization as far as meeting with the financial obligation is concerned. A CR of higher than 1, is an indemnity that the company has enough capability to meet with its financial obligations and promises in particular. High amount of CR is always be effective from the viewpoint of an organization. The analysis is clearly showing that the Current Ratio (CR) of the selected organization lies in a good and sophisticated range which could be found from the above mentioned analysis. The CR of the company will be 1:33 in the year 2014 which decreased by 8, 5 and 12 basis points in the years 2015, 2016 and 2017 respectively, but still manages to keep it on the level of 1. The average CR of Green Environment is 1:20, showing that the company has the ability and stance to meet with its current financial obligations in particular and able to meet with its short term financial promises as well. It is an important ratio that used for different purposes in an organization and usually banks would used this particular ratio to analyze the paying back stance of a company. Solvency Ratio The ratio which used to analyze that how much active an organization as far as meeting with its long term financial obligations in particular. This particular aspect is known as Solvency Ratio. The ratio that comes under the ambit for the same analysis is Debt to Equity (D/E) ratio and it is an important ratio used for the purpose of analysis. Debt to Equity Ratio Analysis A ratio that is used to assess the proportion of debt in equity of a company is known as debt to equity ratio. It is one of the most important ratios used for the long term liability is concerned and it is particularly known as Solvency Ratio in particular. The provision of the same ratio is quite high and it is equally beneficial for Green Environment as well. From this particular analysis, it is found that the total debt to equity of the company is perfect that les in an effective environment. The debt to equity of the company lies in the range from 0.80 to 1.02, which is quite effective in particular. This particular aspect is effective from the viewpoint of the company. The proportion of debt in the equity of the company on average is quite low which 25% is only while rest of the equity has been financed with equity which is quite high and effective. This particular aspect is showing that the level of solvency of the selected company is quite high and effective and it is one of the most important sign for the company as far as their future economic consequences is concerned and Green Environment should prolong the same. Market Value Ratio Investment is an important aspect from the viewpoint of an organization and no organization could be in the sake of economic prosperity and expansion without having high amount of investment associated with it. There are number of ratios that could be used for the same analysis and among them, the name of Earnings per Share (EPS) is one of them which have its own importance and recognition lies in a broad nutshell. Earnings per Share (EPS) According to International Accounting Standards (IAS-13), every organization is required to show the share analysis on the basis of its income statement. High EPS is always be effective from the viewpoint of an organization. The earnings per share of the selected company are effective and high and it is showing that the company has the ability to increase their economic belongings with the help of effective and timely strategies in particular. The average EPS of Green Environment is 1.18 AED which is showing that the company is economically prosper and active and it would remain in the same jurisdiction for a long span of time. The market value and market tendency of the company is strong and high which leads to increase the financial and strategic prosperity of the company for a long span of time. Conclusion â€Å"Green Environment† is a non-profit organization which wants to improve the standards of waste management in Emirates. This is a newly born company and therefore it needs the support of government and other organizations. The company is a hypothetical one, which is trying to make such

Sunday, January 19, 2020

Riordan Manufacturing Company: Review and Analysis

Riordan Manufacturing Company: Review and Analysis Jennah Es-Sudan, Monica Malcom, Annie Willis and Yeong Yoo University Of Phoenix BUS/430 December 1, 2009 Riordan Manufacturing Company Review and Analysis The focus of this paper is to analysis the regulatory measures of Riordan Manufacturing. Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. With state-of-the art design capabilities, creating innovative plastic designs that have earned international acclaim. Attention to detail, extreme precision and enthusiastic quality control are the hallmarks of Riordan Manufacturing. With facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China, Riordan has the capacity to fulfill unique needs. Riordan Manufacturing is wholly owned by Riordan Industries, a Fortune 1000 enterprise. The company decided to closed their plant in Michigan and open it in China. Opening this business in another country has advantages. Our team will also discuss unfair import laws, Foreign Corrupt Practices Act of 1977, Patents, trademarks, and intellectual property, and environmental regulation and how they relate to doing business in China. Unfair Import Laws The government has assertively imposed our anti-dumping laws to fight unfair Chinese trade. † alleged Commerce Secretary Carlos M. Gutierrez. â€Å"China’s economy has developed to the point that we can add another trade remedy tool, such as the countervailing duty law. The China of today is not the China of years ago. Just as China has evolved, so has the range of our tools to make sure Americans are treated fairly. By acting on the petition filed last October, the United States today is signifying its continued pledge to leveling the playing field for American manufacturers, workers and farmers. Foreign Corrupt Practice Act (FCPA of 1977) Congress enacted the Foreign Corrupt Practices Act (â€Å"FCPA† or â€Å"the Act†) in 1977 in reaction to the Watergate scandal. Widespread media coverage of unreported crusade assistance and potentially unlawful payments to strange officials encouraged the Securities and Exchange Commission (â€Å"SEC†) to begin an investigation. The SEC's investigation eventually exposed that more than 400 U. S. companies had paid bribes to foreign governments and politicians, totaling more than $300 million. An FCPA violation requires that action be taken with a corrupt intent. Corrupt means an evil motive of purpose, and intent to wrongfully influence the recipient of the payment or offer to misuse his official position or to influence someone else to do so. The act does not require the corrupt act to be a success; it just means that an attempt was made to influence an alien bureaucrat. China has made great efforts to combat essentials of bribery—through endorsement and enforcement of strict anti-bribery laws and penalties—it still remains a cause of concern in the China business market. For example, in 2005, 11,071 members of the Communist Party of China (â€Å"CPC†) were disqualified from the party as reprimanded for dishonesty. In addition, Chinese magistrates dealt with 120,000 cases of misappropriation, corruption, and negligence of duty over the past five years. Given the size and magnitude of China's market, these issues also cause alarm for U. S. companies doing business in China. Chinese and other overseas companies may make unlawful expenses in China with restricted risks, U. S. ompanies doing business in China may feel marketable stress to disobey the Act to avoid finding themselves at a aggressive difficulty to companies that are not subject to the same laws or similar enforcement. For this reason, U. S. companies operating in China need a solid FCPA compliance program to avoid action for FCPA violations and to avoid becoming knotted in China's domestic corruption and bribery laws. Patents, Trademarks, and Intellectual Property Companies try to cap ture the markets by issuing licensing permits for intellectual properties to increase profits for their business. These intellectual properties included patents and trademarks. Unfortunately, nations are still struggling to adopt a consistent international legal system that governs the intellectual property. They often have restrictions which includes geographical/and field use limitations and customer restriction. The Paris Convention is a guarantee that in each signatory country, foreign trademark and patent application from other signatory countries will receive the same treatment. According to United States Patent and Trademark Offices (2009) a patent for an invention is the grant of a property right to the inventor. There were problems and drawbacks with this particular agreement so in 1970 the patent cooperation Treaty was adopted. This particular agreement addresses the centralized utility patent application process (Schaffer, Agusti, & Earle, 2009). A trademark is a word, phrase, symbol or design, or a combination of words, phrases, symbols or designs, that identifies and distinguishes the source of the goods of one party from those of others United States Patent and Trademark (2009). Riordan Manufacturing makes plastic products in the United States and decided to move the plant that makes Pontiac products to China. This was a way to produce goods cheaper than in the United States and enter the market international. When making this move into the international market Riordan Manufacturing has trademarks on their plastic bottles and other plastic products that the Paris Convention would cover. Environmental Regulations Environmental regulations are guidelines that are in place to govern how matters that effect human life and environment handle. WTO rules a nation can require foreign producers to comply with environmental standards that are required by domestic firms (Schaffer, Agusti, & Earle, 2009). Riordan Manufacturing had to make sure that when moving their company from Michigan to China that the environmental regulations are followed. China has been working with great determination in recent years to develop, implement, and enforce a solid environmental law framework. Chinese officials face critical challenges in effectively implementing the laws, clarifying the roles of their national and provincial governments, and strengthening the operation of their legal system EPA- China Environmental Initiative (2009). Having a manufacturing company Riordan had to make sure that the plant that was being built was welcome in China and it adhered to the regulation guidelines. Riordan also had to follow the pollution regulation and the energy regulation. Production of their products was welcome and they learned the environmental regulation to take their business to China. Political Risks of Operating a MFG Company in China China has been one of desirable areas that any international companies would want to expand their business to. Its evolving economy, huge manufacturing base, enormous supply of natural resources are dangerously attractive, yet the expansion to this developing country comes with risks. The political risks in China Riordan Company should consider is that China is increasingly pressuring foreign investors to transfer technology to local producers, which could erode the patent protections and competitiveness of investors. Next fact that Riordan should consider is that as they focus on shifting growth from exports to domestic consumption, China’s leaders may withdraw tax benefits for foreign investors. Infrastructure bottlenecks and strong upward pressures on government-controlled electricity and fuel prices also create considerable uncertainty around manufacturing efficiency and operating expenses. Our initial decision to locate our China operations in Hangzhou was driven largely by the fact that our Chinese partners already had facilities there that should be able to handle all regulations and political surroundings. As a join venture partner, Riordan Company should understand sporadic fuel shortages and worsening urban gridlock inject ambiguity into forecasts for domestic auto demand growth. In short, low-cost manufacturing and vast potential domestic demand is offset by uncertainty in regulatory and infrastructure capacity. This makes China a potentially higher-risk, higher-reward investment destination. Riordan Company executive management also should outline framework for understanding how local political and market dynamics affect foreign ventures. China holds tremendous promise as a manufacturing centre and market, but management should remember are social, regulatory and energy issues around the next curve in the road. Political-risk analysis should have been processed to contemplate not just broad, easily observable trends but also the nuances of society and the quirks of personality that can affect a venture’s success. For Riordan Company to be successful in join venture in Hangzhou China Riordan must obtain professionally prepared political risk analysis giving current assessments and forecasts of future stability. They can also seek consulting firms, insurance industry reports, reports of U. S. government agencies, and informal discussions with experienced international bankers nd shipping company representatives. Outline of the Possibilities for Foreign Investment and Securities A company that operates in a foreign country has to comply with the laws of that country. As a rule international business causes great pressures for U. S. business managers. A projected high profit margin weighs little if local law prevents repatriation of profits to the foreign investor’s home jurisdict ion. Riordan Manufacturing made the decision to expand internationally for the following reasons. China attempts to encourage investments from foreign residents. The following are among the reasons that foreign investors are attracted to China: †¢ Extremely low labor costs. †¢ A tremendous buyers' market in China itself with a population of 1. 3 billion. †¢ An expectation of a sharp increase in the buying power of Chinese residents, a fact that is influenced by the annual GDP of over 8% per annum and the low rates of inflation. †¢ In recent years, Chinese laws concerning foreign investments have been significantly eased. The total FDI in China for 2006 totaled 63 billion dollars. Conclusion From the beginning of the nineties and particularly from 2001, when China joined the WTO, until the present, the attitude to foreign investment in China has changed, among other matters, foreign investors are permitted to form companies that are 100% owned by foreign capital. Sales to the local market are permitted and foreign investment is also allowed in sectors other than industry and hi-tech, such as banking, insurance, financial services, etc. As a result of joining the WTO, China is expected to standardize specific benefits that were previously granted only to overseas investors or only to Chinese companies. As a general rule, industries in China that are open to foreign investments are divided into 3 categories, an encouraged investment, a restricted investment and a prohibited investment. Foreign investors cannot invest in projects that are connected with the military and defense industries in China. There are also restrictions on 100% control of foreign investors over transport, the automobile industry and power stations. Benefits that China grants to foreign investors are not given in the form of grants. Most benefits are in the form of a tax benefit, including value added tax, customs and income tax benefits in putting the mphasis on an investment in a Special Economic Zone (SEZ) or in special sectors and areas. The benefits granted are as previously approved according to the nature of the foreign investment. There are 5 SEZ's in China in the south of the country, the main tax benefits are: corporate tax of 15%. A benefit of â€Å"2 + 3 years â€Å"which means an exemption from ta x for the first two years and tax at the rate of 12. 5% for the next three years. Pudong Zone (Shanghai) In the Pudong zone there are 5 development zones specializing in hi-tech, financial services, agriculture and more. The benefits are similar to those granted to investors in an SEZ. References Schaffer, R. , Agusti, F. ,& Earle, B. (2009, 2005). International Business Law and Its Environment (7th Ed. ). Mason, Ohio: South-Western, Cengage Learning. World Wide- Tax& Finance (2009). China Foreign Investment Incentives. Retrieved December 1, 2009, from www. worlwide-tax. com/china/chi_invest. asp United States Patent and Trademark Office 2009. Definitions. Retrieved on November 30, 2009 from www. uspto. gov/ EPA- China Environment Law Initiative November 2009. Retrieved on November 30, 2009 from www. epa. gov/ogc/china/initiative_home. htm

Friday, January 10, 2020

Diary of Boo Radley Essay

Pretend you are Boo Radley (from To Kill a Mocking Bird). Write your secret diary entry about how you have been punished and kept in a virtual prison for fifteen years. It has been so very long since my father first locked me up in this house. I mean, I was only a teenager having fun, I did not do anything serious or anything. At first, after a couple of days punishment, it thought I would be finally set free by father. After a couple of weeks, I realised that it seemed I would never be let out. I was correct- as the weeks turned into months, I understood how cruel my father was and that my punishment would last forever. After a year or two, my father died. I was free to go outside into the world- well I could have escaped from imprisonment if I really wanted to, but I did not wish to. My father left me emotionally damaged and ashamed of myself, and I did not and I do not want to show myself in the real world after such a long period of time. Once Nathan arrived, things were just the same as how they used to be with my father. Being locked up in this stuffy house allows me a lot of time to myself. I get to read the local papers- one of the only ‘luxuries’ I am allowed to have and reflect on a lot of things and ponder over them all day long. I think about how people are getting along in Maycomb as I see them walk quite briskly in front of our house and I think about my father and what he did to me. I am usually in a fairly good mood all day long, but when my father comes to mind or Nathan walks past, anger and hatred swells up inside me. I also occupy my thoughts by reminiscing that good times I had when I was a teenager, but also look upon them with deep regret, but I mainly ponder about the two young Finches who live next door†¦ Everyday, I stare through the shutters down through the street main street of Maycomb. I see children playing and enjoy watching them having and joyful and gay time. I have constantly kept my eye on our two neighbours- Jem and his sister, Scout. They play in their yard and in the street, obviously having a great time, and like all other children their age, keep away from  our house. I think they believe it is haunted, by my ghost or some obscenity like that. It amuses me but also makes me sad that I could be so much of a threat to these lovely children, and I do wish my life could be as happy as theirs. Despite their fears of me, Jem and Scout even tried to have a look inside this house once to get a glimpse of me and also tried to communicate with me on several occasions. I have tried communicating with Jem and Scout, by leaving them a trinket or two in the knot-hole of one of the live oaks out the front of our house at night time. After some time, the children began to realise it was me leaving the surprises in the tree, and they decided to write me a little note. Nathan found the note, realised my only source of communication with the outside world and filled the knot-hole with cement. I am only allowed to go outside at night under Nathan’s supervision. Sometimes, Nathan does not even bother looking over me on my night-time strolls because he knows I will be back. I am too attached to this house and living indoors. I don’t want to be released into a world that is too good for me, as my father used to say.

Thursday, January 2, 2020

Media s Influence On Politics - 1742 Words

In the Public Eye: Politics and the Media Much of American life is guided by the influx of information received from the media. This results in the ability of the media to shape or mold the opinions of American society. Media is used in numerous areas concerning politics. â€Å"Without the media’s investigations, citizens would be forced to rely entirely on the information provided by politicians and the government, and would be deprived of an indispensable opportunity to evaluate issues carefully and form reasoned opinions† (Ginsberg 251). Through careful analysis of articles written on the media’s influence on politics in America, it became evident that the media greatly controls American political opinions. The power of the media is attributed to its ability to force Americans to think about a certain issue in a certain way. Agenda setting, selection bias, priming, and framing are all factors in the hold the media has over public opinion. â€Å"Today the medi a (new and old) play a central role in American politics, not only in setting the agenda of topics that Americans think about and discuss, but often in swaying opinions on political issues and candidates† (Ginsberg 251). The word media refers to any kind of news coverage, from newspapers and radio broadcasts to video streaming and social networking. Looking back twenty years, the majority of Americans got their political news from the daily newspaper, radio, and watching local and national evening news such as that seen onShow MoreRelatedThe Media s Influence On Politics1134 Words   |  5 PagesAmerican Government The media’s influence on politics I decided to do research on the impact that the media has politics due to the factors that can influence society, as well as the individuals. 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